COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Board of Supervisors

 

DATE:

January 17, 2007

BOARD MEETING DATE:

January 23, 2007

 

TO:

Honorable Board of Supervisors

FROM:

Supervisor Jerry Hill

Supervisor Richard S. Gordon

SUBJECT:

Resolution in support of Virgin America

 

Recommendation

Adopt a resolution to support Virgin America in its attempt to receive regulatory approval from the Federal Aviation Administration.

Vision Alignment

Commitment Seven: Create Opportunities for Every Household to Participate in the Growing Prosperity  

Commitment Eight: Sow the Seeds of Our Future Prosperity      

The addition of Virgin America to SFO’s lineup of airline carriers will create jobs and generate revenue for local businesses and the county.

Background

Virgin America seeks approval from the FAA to serve domestic airline passengers out of its base of operations at San Francisco International Airport. Virgin America’s initial application was rejected because of concerns that the company does not meet ownership requirements that stipulate airline carriers cannot be more than 25 percent owned by non-citizens. The company is appealing this decision.

 

Discussion

Virgin America is committed to serving domestic travelers out of San Francisco International Airport, but it needs the support of the County and other governmental bodies. This resolution, if adopted, will testify to the County’s support and lead other organizations to follow suit.

The resolution will also make known publicly the significant economic benefits an additional domestic airline carrier will bring not just to the county but to airline passengers throughout the country. These benefits include:

    1. 3,000 jobs, 1,600 of which will be located in the Bay Area

    2. More than $200 million in business revenue and more than $20 million in state and local taxes

    3. Additional competition to the domestic airline industry, lowering prices for all consumers

    4. An innovative approach to airline travel and to customer service, which will in turn benefit all consumers

Fiscal Impact

None.