BOARD OF AIRPORT COMMISSIONERS APPROVES CONCESSION, LEASE AGREEMENTS WITH SEVEN COMPANIES TO LOCATE AT NEW CONSOLIDATED RENT-A-CAR FACILITY
08/16/2018 12:10 PM
Seven firms, representing 14 brands, agree to terms at new center.
For Immediate Release August 16, 2018
Contact: Charles Pannunzio
Board of Airport Commissioners Approves Concession, Lease Agreements with Seven Companies to Locate at New Consolidated Rent-A-Car Facility
(Los Angeles, CA) Today, the Los Angeles Board of Airport Commissioners (BOAC) approved concession and lease agreements with seven rental car companies representing 14 brands that will relocate to the new Los Angeles International Airport (LAX) Consolidated Rent-A-Car (ConRAC) facility when it opens in 2023.
"One of our goals at LAX is to provide a more convenient, efficient, and sustainable experience," said Sean Burton, President, BOAC. "Today's lease agreements ensure that our guests will have access to some of the most recognizable brands in the rental car industry in one easily accessible location."
“With our industry partnerships, the experience of accessing LAX will become more reliable, efficient, and modern – fulfilling the expectations for this world class city,” said Deborah Flint, Chief Executive Officer, Los Angeles World Airports (LAWA). "We are pleased that these companies have been engaged in our ConRAC planning process and are committed to being part of the future of mobility at LAX."
The companies included in the lease agreements approved by the BOAC today are:
Avis Budget Car Rental, LCC (Avis, Budget, Zip Car)
Enterprise Rent-A-Car Company of Los Angeles (Enterprise, Alamo, National)
The Hertz Corporation (Hertz, Thrifty, Dollar)
Fox Rent A Car, Inc. (Fox)
DR Car Rental, Inc. (Payless)
Sixt Rent a Car, LLC (Sixt)
Advantage Opco, LLC (Advantage, EZ)
LAX is the second-largest rental car market among airports in the U.S., with an average of 267,000 vehicles rented monthly. LAWA staff met with the LAX rental car industry starting in 2014 to discuss the preferred facility layout for a ConRAC facility.
Last year, a Memorandum of Understanding was executed between the companies and LAWA that outlined the framework for these agreements to locate in what will be the largest such facility in the U.S.
The ConRAC, which will be located in the area known as Manchester Square at the east end of a 2.25-mile Automated People Mover (APM) system, is expected to improve the guest experience, improve traffic flow and offer operational efficiencies.
Like the APM, the ConRAC is being built as a public-private partnership. The winning consortium among four proposers will design, build, finance, operate and maintain the facility under an agreement that continues for 25 years after it opens. The selection of the recommended developer is anticipated to go before BOAC in September.
About Los Angeles International Airport (LAX) LAX, the fifth busiest airport in the world and second in the United States, was named in Skytrax’ 2018 top 10 U.S. airports. LAX served more than 84.56 million passengers in 2017 and offers 737 daily nonstop flights to 100 cities in the U.S. and 1,386 weekly nonstop flights to 88 cities in 44 countries on 73 commercial air carriers. LAX ranks 14th in the world and fifth in the U.S. in air cargo tonnage processed, with more than 2.2 million tons of air cargo valued at over $101.4 billion. LAX handled 700,362 operations (landings and takeoffs) in 2017.
An economic study based on 2014 operations reported LAX generated 620,600 jobs in Southern California with labor income of $37.3 billion and economic output (business revenues) of more than $126.6 billion. This activity added $6.2 billion to local and state revenues and $8.7 billion in federal tax revenues. The study also reported that LAX’s ongoing capital-improvement program creates an additional 121,640 annual jobs with labor income of $7.6 billion and economic output of $20.3 billion, $966 million in state and local taxes, and $1.6 billion in federal tax revenues.
LAX is also the second most popular airport in the world to appear on Instagram according to wego.com. LAX is part of a system of two Southern California airports – along with Van Nuys general aviation – that are owned and operated by Los Angeles World Airports, a proprietary department of the City of Los Angeles that receives no funding from the City’s general fund.
As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services, and activities. Alternative formats in large print, braille, audio, and other forms (if possible) will be provided upon request.