Rental Agencies at Vegas Airport Can't Get a Break in Rent

Airport management at Las Vegas’ McCarran International Airport has granted just a few rent reduction requests from concession operators who have been requesting the rent reductions in the wake of slumping passenger counts, according to the Las Vegas Business Press. Airport management turned down rent breaks for car rental companies.

The airport’s aviation commissioner Randall Walker says the purpose of the minimum annual guarantee (rent)—which is either fixed or floats according to the previous year's sales—is to protect the airport in the down times. Several other airports take a similar stance, relying on a share of concessions and other fees to pay off bond debt and cover operating expenses. Walker conceded that among the airport’s 10 rental car companies, “We will let the marketplace decide what needs to be done.” As a result, he added, some rental care companies may pull out of the airport.

The largest rent break was granted to a casino developer who owns about 1,500 slot machines scattered through concourses. Since he owns the machines, said aviation director Randall Walker, his departure if the losses grew too large would leave the airport without any gaming operations for at least six months and would also hurt a plan to install slots at the rental car center this summer.

Jonathan Briggs, city manager for Las Vegas-based SavMor Rent-a-Car, said studies have shown McCarran among the top five airports in rent and fees imposed on the industry. He said he will keep trying to get rent reduced, but he admitted he didn’t expect airport management to give any rent breaks.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Understanding The Fleetification of Everything

As fleet miles increase exponentially, and as new stratum of fleet enter both consumer and business use cases, the "founding fathers" who gathered at Fleet Forward in Miami last week have some work to do.

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Job Finder: Access Top Talent. Fill Key Positions.

>