STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: June 22, 2022
COUNCIL DISTRICT(S): N/A
DEPARTMENT: City Attorney's Office
EXECUTIVE: Christopher J. Caso
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SUBJECT
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Authorize (1) settlement of the lawsuit styled City of Dallas v. Delta Air Lines, Inc., et al., Cause No. 3:15-CV-02069-K - Estimated Revenue Foregone: Aviation Fund $200,000.00 annually over a six-year period until the expiration of the current Use and Lease Agreements at Love Field; (2) a facilities lease agreement at Dallas Love Field with Delta Air Lines, Inc. for scheduled airline passenger service support space; and (3) a facilities use agreement at Dallas Love Field with Southwest Airlines for terminal storage and support space - Estimated Net Annual Revenue: $470,761.40
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BACKGROUND
The City filed the lawsuit in 2015 seeking a court ruling on whether Delta Air Lines had the right, under the relevant gate leases and regulatory requirements, to continued accommodation at Dallas Love Field airport. The court entered a preliminary injunction ordering Southwest Airlines to accommodate Delta flights during the litigation. The City and Delta Air Lines, Southwest Airlines, and Alaska Airlines have now reached a proposed settlement subject to City Council approval. The settlement includes a facilities lease agreement with Delta Air Lines for certain space in support of its scheduled airline passenger service and a use agreement with Southwest Airlines for terminal storage and support space. Delta Air Lines is represented by Gibson Dunn & Crutcher LLP. Southwest Airlines is represented by Lynn Pinker Hurst Schwegmann. Alaska Airlines is represented by Weil, Gotshal, & Manges LLP.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
A confidential memorandum regarding this matter will be provided to the City Council on June 17, 2022.
FISCAL INFORMATION
Estimated Revenue Foregone: Aviation Fund $200,0...
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