The Toledo Express Airport New Service Incentive Program

1. The Toledo Express Airport New Service Incentive Program • The Airport offers Allegiant a minimum of $50,000 per year for two years in marketing funding per new route added. This funding can be higher depending on route frequency. • Toledo’s New Service Airport Cost Incentive Program: • From a baseline 12 month period if Allegiant increases boardings, either by new service or increased capacity on existing routes, in the following 12 months, then, for every increase in passengers, there will be no airport fee charge for the new passengers and a corresponding reduction of 60% for existing passengers above the baseline. • A Basic Example: • Baseline 12 months had 30,000 enplanements X $5 = $150,000 in airport costs. • Next 12 months enplanements are 35,000. • Cost would be 30,000 X $5 – (5,000 x $3) = $135,000 or $3.85 per passenger. • A Further Example: • Should current baseline enplanements double from 30,000 to 60,000 Allegiant would pay $1 per passenger in airport costs at Toledo Express Airport. • This new Airport Incentive Program is inspired by Allegiant’s business model. The Airport seeks to partner with Allegiant to bring passenger volume thru the airport and recover costs from airport related ancillary fees such as parking.