Contact: TBI (U.S.), Inc., Larry Gouldthorpe 407-324-9681
or Sanford Airport Authority, Victor White 407-323-9253
TBI (U.S.), INC TO OPERATE ORLANDO
SANFORD AIRPORT'S DOMESTIC TERMINAL
Sanford, Fla., Monday, August 30, 1999 - The Sanford Airport Authority today approved a memorandum of understanding that outlines the terms for TBI (U.S.), Inc. to operate, manage and develop the soon-to-be-expanded domestic airline terminal facilities at the Orlando Sanford Airport.
TBI (U.S.), Inc. is the parent company of Orlando Sanford International, Inc., the company currently operating Orlando Sanford's international passenger and cargo terminal.
As part of the agreement, TBI (U.S.), Inc. will pay $10 million in consideration for the 30-year management contract, against the $25 million cost of the planned domestic terminal expansion project. $7.5 million will be paid up front and applied directly towards construction costs. The remaining $2.5 million will be spread evenly over the first five years of the agreement in the form of $500,000 annual payments. The $500,000 annual revenue stream could be used by the Airport Authority as local matching funds for airfield capital requirements which are eligible for FAA and FDOT grant funding. This arrangement will benefit all users of the airport.
Mayor Larry Dale, who has been a strong proponent of the Orlando Sanford Airport, welcomes the new arrangement. "This unique public/private partnership is going to serve as a model for the entire nation to follow. Our airport is one of the first in the country to have such an arrangement and I'm looking forward to building on the success we have realized from our partnership so far," Mayor Dale said.
According to TBI plc Chief Executive Officer, Keith Brooks, TBI has been interested in making this additional investment in Orlando Sanford Airport for quite some time. "We are investing int he facilities at Orlando Sanford Airport because we believe there is enormous potential for future development at the airport. This development will not only add to the value of the holdings at TBI, but it will also increase the overall value of the airport for the entire Sanford community," Brooks said.
"We are very excited about the approval of this deal," said Larry Gouldthorpe, on behalf of TBI (U.S.), Inc. "It brings us closer to making the expansion of the domestic terminal a reality, and it gives us the opportunity to provide this community with the airport facilities it needs to sufficiently accommodate its growth," Gouldthorpe added.
The expansion of Orlando Sanford Airport's domestic terminal is expected to boost domestic service, attract new aviation tenants, and allow Orlando Sanford Airport to handle over-flow traffic fromt he international terminal. The expanded terminal will feature second level boarding for up to seven flights at a time and handle up to 3 million passengers annually. Construction will begin around the first of January 2000 resulting in availability of the first wide body gate position by June 1, 2000 and total completion by December 2000.
Airport officials look forward to taking advantage of this new partnership. "This partnership provides excellent expansion opportunities," said Victor White, executive director of the Sanford Airport Authority. "TBI's investment will help us manage the incredible growth we have experienced in recent years and will bring our airport to a new level as a service provider. We think it will be a win-win situation for everyone involved," White added.
Airport Authority Board Chairman, Kenneth W. Wright said, "This unprecedented agreement ensures that Orlando Sanford Airport will be well positioned to maintain its forward momentum and to meet the air service challenges in the new millennium."
The agreement is subject to execution and approvals of a definitive management agreement, which the parties anticipate occurring in the next 90 days. TBI (U.S.), Inc. is an American subsidiary fo TBI plc, a United Kingdom based airport privatization company, which owns and operates airports in the UK and Sweden. TBI's involvement at Orlando Sanford Airport began in May, 1997, when Orlando Sanford International, Inc. was formed to manage, operate and develop the international passenger complex on behalf of Sanford Airport Authority.