US. The Mayor of Atlanta, Keisha Lance Bottoms, has announced the suspension of the Minimum Annual Guarantee (MAG) payment obligation for concessionaires at Hartsfield–Jackson Atlanta International Airport until 30 June.
The legislation is designed to allow the airport’s retail and food & beverage businesses to provide support for employees experiencing reduced hours due to reduced traffic from the COVID-19 outbreak, according to Mayor Bottoms.
“Atlanta families — many of whom are already living paycheque to paycheque — will be overburdened if we do not provide much-needed economic relief immediately,” she said. “We are asking our business partners to continue showing compassion toward their employees, and when possible, provide continuity of pay for their hourly associates.”
Hartsfield-Jackson International Airport General Manager John Selden added: “We are thankful that the Mayor and City Council were able to find a way to give our concessionaires some much-needed relief by reducing their rent during these uncertain times.
“Further, in an effort to mitigate the financial impact to our airline partners, the Department of Aviation is working closely with the Mayor on a plan to issue advanced credits that will give these partners immediate rent relief. The relief should help stabilise our airline partners as they deal with any financial hardships caused by the pandemic.”
The legislation, which was sponsored by Councilmembers Andre Dickens and Marci Collier Overstreet, can be extended for an additional 30-day period at the end of June if the pandemic is still impacting day-to-day life in Atlanta and an extension is judged to be in the best interests of the city.
Councilmember Dickens commented: “Mayor Bottoms and I acted quickly to draft legislation that passed unanimously so airport concessionaires and car rentals can stay open and pay employees while sales are low due to air travel being extremely reduced.”
Once the term expires, concessionaires will be required to make payments as outlined in the rental payment section of their agreement.
As reported, the International Association of Airport Duty Free Stores (IAADFS) has called on airports to support travel retailers by suspending minimum guarantee payments until the end of the COVID-19 crisis.
IAADFS President and CEO Michael Payne said: “Clearly these are historic and unprecedented times during which we need to come together as a global business community to address the decrease in passenger retail traffic that is the lifeblood of airports’ and duty free operators’ businesses.”
