Natalie Baker

The meeting focused on the Duluth International Airport's Air Service Update. Key discussion points included year-to-date (YTD) enplanement comparisons against 2019 figures, showing a decrease of 32%, and November enplanements down 29% compared to November 2019. Airline performance metrics for November were reviewed, noting Delta (DL) passengers were up 4% (vs. Nov 19) while United (UA) passengers were down 59% (vs. Nov 19). Load factor analysis was provided for specific routes (MSP, ORD, RSW, PHX). November seat capacity data indicated that MSP remains dominant (92% of seats). Local notes detailed upcoming frequency changes for United (starting Jan 3, 2022) and Delta (starting Jan 11, 2022), and plans to request a Sun Country Airlines (SY) extension from the U.S. DOT. Air cargo, fuel sales, rental car receipts, parking lot receipts, and restaurant receipts were also reviewed, generally showing year-over-year declines compared to 2019 figures.

The agenda for the Duluth Airport Authority meeting included an Executive Director's Review covering air service statistics, updates on the Air Traffic Control Tower (ATCT) replacement project, the LifeLink III Project, and the Development RFP. Financial items involved reviewing cash disbursements and monthly reports for December 2025 and January 2026. New Business featured several resolutions: approving an amendment to the Guaranteed Maximum Price for the ATCT construction with H+U Construction, awarding a utility relocation contract for the ATCT, approving a Construction Administration and Observation Agreement for the ATCT with EXP, authorizing a transfer of Sky Harbor Airport funding to Austin Municipal Airport, and approving Transportation Network Company Operating Agreements with both Lyft, Inc. and Rasier, LLC. The board also addressed the Commercial Vehicle Ordinance and Policy, including updated rates and charges to support the new policy.

The primary purpose of this special board meeting was to consider and approve a resolution concerning a capital improvement project. The resolution focused on approving the encumbrance of estimated airport operating funds, amounting to $595,770, to serve as the required local matching funds for a projected $2,383,078 grant from the U.S. Economic Development Administration (EDA). This grant funding is intended to support the construction of a new taxilane and the rehabilitation of Hangar 104 bays. The meeting agenda also noted correspondence, specifically a letter of support from Cirrus Aircraft regarding the DAA's commitment of matching funds.

Key discussions included an update on air service, noting year-to-date enplanements were up 8%, though November enplanements were down 11% compared to the previous year, influenced by weather and government shutdown events. United Airlines proposed a significant seat increase for Q1 2026. Operational updates covered the Air Traffic Control Tower (ATCT) project timeline, with an expected GMP review in February 2026. Business development focused on reviewing responses to an RFI for a new development, progress on the LifeLink III hangar construction, and finalizing an airline agreement by the first quarter. Financial matters included the approval of the 2026 Annual Budget by the city council, and plans to present a joint powers agreement regarding paid leave, as well as anticipated approval of the 2026-2028 Collective Bargaining Agreement in January. The Board approved the Duluth Airport Authority's Strategic Plan 2026-2030, renewed the Air Carrier Incentive Program for 2026-2027, approved a $10 million line of credit note agreement with the City of Duluth, and approved the 2026 Cost Allocation Fee payment. A contract was awarded for Hangar 103 Canopy construction to address snow and ice hazards. Finally, the Board evaluated the Executive Director's performance in a closed session, summarized the positive 2025 performance evaluation, and authorized the Executive Director's 2026 compensation package and 2026 Work Plan.

The meeting agenda included an Executive Director's Review covering air service statistics, operations updates like the Air Traffic Control Tower replacement progress, and business development updates including the LifeLink Hangar construction. Key new business involved resolutions to approve the 2026-2028 Collective Bargaining Agreement, the creation of a Development and Planning Task Force, the United States of America Joint Use Agreement with the Minnesota Air National Guard, amendments to advertising agreements, and the adoption of new Commercial Vehicle Ordinance and Policy, as well as updated 2026 Rates and Charges. The Board also finalized the 2026-2030 Strategic Plan, renewed the Air Carrier Incentive Program, approved a Line of Credit Note Agreement with the City of Duluth, authorized a payment for the 2026 Cost Allocation Fee, approved employee incentive awards, and awarded a contract for Hangar 103 Canopy repairs. Furthermore, the Board evaluated the Executive Director's performance, approved the summary of performance, authorized the Executive Director's annual salary compensation effective January 1, 2026, and approved the Executive Director's 2026 Work Plan.