The Los Angeles Board of Airport Commissioners (BOAC) has today approved the launch of a new Airline Service Incentive Programme for any airlines planning new services or to re-start their previous services from the Los Angeles International Airport (LAX), targeting international markets. 

What does the programme involve?

The programme shall provide financial and marketing assistance to the airlines that take part. It also emphasises the Los Angeles World Airports (LAWA) objective, to open services to new and underserved markets across the globe. 

LAWA is the airport authority that owns and operates LAX and Van Nuys Airport, a public airport that operates from the Van Nuys neighbourhood of the City of Los Angeles. 

The new incentive programme will begin on 1 May and will be in effect from 1 May 2024. Both existing and new airlines that operate from Los Angeles International Airport will benefit. 

Airlines can benefit from the programme by offering a new international commercial service for a destination that has not been served previously from LAX or that has not been used from LAX for at least two years. The destination chosen must be within a country, region or market identified as a priority by the LAWA. Priority markets include popular destinations in Asia, Europe and Latin America. 

One of the key benefits of taking part in the programme will be that airlines are entitled to reduced landing fees via quarterly credits from LAWA. Generously, the landing fee will be completely waived off by LAWA in the first year. In the second year, it will be reduced by 50%. 

LAWA also has plans to support new airlines in particular by promoting their inaugural services at LAX. 

Los Angeles International Airport exterior
In 2019, LAX was marked as the world’s third-busiest airport and the US’ second-busiest airport. | © Getty Images

Airlines that already operate from LAX will benefit from an allocated $10m in landing fee credits on a first-come-first-served basis. Marketing assistance will be something all can benefit from. However, LAWA has confirmed that an airline will not be eligible for these benefits if it switches service from a currently served market to a new priority market. 

Beatrice Hsu, BOAC President, spoke positively after the programme gained approval to launch: 

“LAX’s Airline Service Incentive Program will strengthen our position as the premier West Coast gateway to the world by providing an incentive for airlines to operate and thrive at one of the busiest airports in the world.”

She continued, highlighting how the recruitment of new services to underserved and unserved international markets from LA will bring back the demand they lost as a consequence of the COVID-19 pandemic. 

As airlines continue to struggle amid post-COVID recovery for a variety of reasons and differing in severity, LAX offering a helping hand will be positively received by those who need it. 

Let us know what you think about LAX’s new incentive-driven programme in the comments below.

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