July 01, 2015

City officials sign new 5-year airport lease

Deal calls for up to $2 billion spent on airline improvements and $12 minimum wage for all PHL employees

By Elisa Lala
PhillyVoice Contributor

Following lengthy negotiations, Philadelphia Mayor Michael Nutter and City Council President Darrell Clarke have signed off on a five-to-seven-year agreement between Philadelphia International Airport and the airlines that use the city-owned facility.

The new agreement, made official Tuesday, calls for an additional $1.3 to $2.1 billion in airline spending above the last deal, and a $12 minimum wage for all airport employees, according to the Philadelphia Daily News. That includes baggage handlers, aircraft cabin cleaners and wheelchair attendants some of whom earn as little as $7.75 an hour plus tips.

The boost in spending will be reinvested into the airport, including the possibility of up to $750 million spent on a single mega project.

According to Philadelphia Magazine, the new lease is a big deal for the local economy as the airport is funded entirely through user fees and not tax dollars and directly employs nearly 8,000 workers, generating $14.4 billion in annual spending in the region.

Read the full Philadelphia Daily News article here.

Elisa Lala
PhillyVoice Contributor