(navigation image)
Home American Libraries | Canadian Libraries | Universal Library | Community Texts | Project Gutenberg | Children's Library | Biodiversity Heritage Library | Additional Collections
Search: Advanced Search
Anonymous User (login or join us)
Upload
See other formats

Full text of "Study of the flight fee requirements, Chicago O'Hare International Airport"

STUDY OF 
THE FLIGHT FEE 
REQUIREMENTS 



CHICAGO O'HARE 
INTERNATIONAL AIRPORT 



Landrum and Brown Cincinnati. Ohio 



Number 4 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



LAN DRUM AND BROWN 
Cincinnati, Ohio 
November, 1960 




B 

J 

E 

C 

T 

I 

V 

E 



R 
STUDY E 

C 

OF THE 

M 

FLIGHT FEE REQUIREMENT M 

N 
D 
A 
JANUARY 1, 1961 THROUGH JUNE 30, 1961 T 

I 


N 



F 
I 

N 
D 
I 

N 
G 
S 



C 
R 

I 

T 

E 

R 

I 

A 



Digitized by the Internet Archive 

in 2012 with funding from 

CARLI: Consortium of Academic and Research Libraries in Illinois 



http://www.archive.org/details/studyofflightfee1961land 





LANDRUM AND BROWN B 

309 Vine Street J 

Cincinnati 2, Ohio ~ 

T 

I 

November, 1960 V 

E 



The Honorable Richard J„ Daley, Mayor r 

City of Chicago, Illinois E 

City Hall 

Chicago 2, Illinois 

M 

M 
Dear Mayor Daley: 

N 
Transmitted herewith is the report on the "Flight Fee" required to be paid by p 

the Airline Parties to the Airport Use Agreement at Chicago-O'Hare International A 

Airport for the period January 1, 1961 through Jurje 30, 1961 . T 

I 

Review of the revenue and expense estimates were made with staff members 

of the Comptroller's Office and the Department of Aviation, the Airport Manager 

and other City departments during the course of these studies. The landing weight 

estimates submitted by the airlines were audited to determine their reasonableness. 

Adjustments to these estimates were made to reflect considerations which bear upon 

the probable realization of the estimates. 



appreciated. 

Respectfully submitted, 



John F . Brown 
JFB/ba 



N 



The assistance of the individuals and the departments of the City is greatly 

N 
D 
I 

N 
LANDRUM AND BROWN G 

S 



C 
R 

I 

T 
E 
R 
I 
A 




B 

J 
E 

C 
TABLE OF CONTENTS T 

I 
Page V 

-~ E 



OBJECTIVE 



RECOMMENDATION 2 R 

E 
C 

FINDINGS 3 ° 

M 
M 

CRITERIA 4 ^ 

D 
A 
T 
I 


N 



F 

I 

N 
D 

I 

N 
G 
S 



C 
R 

I 

T 
E 
R 



OBJECTIVE 




B 

J 
E 
C 
T 
I 

V 
E 



F 
I 

N 
D 
I 

N 
G 
S 



C 
R 

I 

T 
E 
R 
I 
A 



OBJECTIVE 

DETERMINE THE FLIGHT FEE FOR THE AIRLINE PARTIES FOR THE SIX 
MONTHS PERIOD BEGINNING JANUARY 1, 1961, IN ACCORDANCE WITH 
THE PROVISIONS OF THE AIRPORT USE AGREEMENT. 



- 1 - 



F 

I 

N 
D 

I 

N 
G 
S 



C 
R 

I 

T 
E 
R 

I 
A 



RECOMMENDATION 



R 

E 
C 

M 
M 
E 
N 
D 
A 
T 
I 


N 



F 
I 

N 
D 
I 

N 
G 
S 



C 
R 

I 

T 
E 
R 

I 
A 



RECOMMENDATION 

IT IS RESPECTFULLY RECOMMENDED THAT A FLIGHT FEE OF $.391 PER 
THOUSAND POUNDS OF APPROVED MAXIMUM GROSS LANDING WEIGHT FOR 
THE AIRLINE PARTIES TO THE AIRPORT USE AGREEMENT BE MADE EFFECTIVE FOR 
THE PERIOD JANUARY 1, 1961 THROUGH JUNE 30, 1961. 



-2- 



F 

I 

N 
D 

I 

N 
G 
S 



C 
R 

I 

T 
E 
R 
I 
A 



FINDINGS 



F 
I 

N 
D 
I 

N 
G 
S 



C 
R 

I 

T 
E 
R 
I 
A 



AIRLINE PARTIES FLIGHT FEE REQUIREMENT 
CHICAGO-O'HARE INTERNATIONAL AIRPORT 
FOR THE SIX MONTHS ENDING JUNE 30, 1961 



Estimated Total Airport Expenses $2,692,283 

First Six Months of 1961 

Estimated Total Airport Revenues 923,720 

Excluding Flight Fees 
First Six Months of 1961 

Estimated Total Flight Fee Revenue Requirement $1 ,768,563 

First Six Months of 1961 

Estimated Flight Fees From Other ( Non-Parties ) Airlines 22,834 

First Six Months of 1961 



Estimated Total Flight Fee Revenue Requirement, Airline Parties $1 ,745,729 

First Six Months of 1^61 

Estimated Total Landing Weight, Airline Parties 4,465,853 

First Six Months of 1961 ( in thousand pounds ) 

Estimated Flight Fee Per Thousand Pounds $ .391 

Airline Parties, First Six Months of 1961 



- 3- 



C 
R 

I 

T 
E 
R 

I 
A 



CRITERIA 



C 
R 

I 

T 
E 
R 
I 
A 



CRITERIA 



TABLE I FORECASTED AIRPORT EXPENSE 

EXPLANATORY NOTES RE: TABLE I 

TABLE II AIRPORT REVENUES, EXCLUDING FLIGHT FEES 

FIRST SIX MONTHS OF 1961 
EXPLANATORY NOTES RE: TABLE II 

TABLE III AIRLINE LANDING WEIGHTS 

FIRST SIX MONTHS OF 1961 
EXPLANATORY NOTES RE: TABLE III 

TABLE IV TOTAL FLIGHT FEE REVENUE REQUIREMENT 

FIRST SIX MONTHS OF 1961 
EXPLANATORY NOTES RE: TABLE IV. 

TABLE V FLIGHT FEE RATE PER THOUSAND POUNDS 

FIRST SIX MONTHS OF 1961 

TABLE VI FORECASTED FLIGHT FEE REVENUE FROM AIRLINE PARTIES 

AND NON-PARTIES 
FIRST SIX MONTHS OF 1961 



TABLE VII 



CONTINGENT REVENUES 



TABLE VIII NOTES REGARDING FLIGHT FEE REQUIREMENT 



> 



-4- 



FORECASTED AIRPORT EXPENSE 



TABLE I 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDING JUNE 30, 1961 



Item of Expense 
(1) 

Budgeted Expenses 

Salaries & Wages - Operating 

Office & Building Services 

Fees and Charges 

Postage and Postal Charges 

Auditing 

Engineering 

Other Professional Fees 

Publications 

Advertising 

Rental of Equipment and Services 

Repairs or Maintenance of Property 
Repairs or Maintenance of Facilities 
Repairs or Maintenance of Equipment 
Subscription and Dues 
Insurance 

State Vehicles License Plates 

Transportation Charges 

Heat, Light & Power ( Public ) 

Heat, Light & Power ( Municipal ) 

Telephone 

Automobile Allowance-Mileage Basis 

Reimbursement to Travelers 

Local Transportation 

Fuel Oil 

Gasoline 

Materials and Supplies 

Drug, Medical & Chem. Mat. & Supplies 

Stationery & Office Supplies 

Small Tools ( unit value not exceed $10 ) 

Tools ( unit value over $10 ) 



Annual 


Estimate for Six 


Months 


Estimate 


Ending June 30, 


1961 


for 1961 


% of Annual 


Total 


(2) 


(3) 


(4) 


$980,122 


41.6% 


$407,310 


7,500 


50.0 


3,750 


1,000 


-0 - 


-0- 


700 


50.0 


350 


9,500 


50.0 


4,750 


15,000 


50.0 


7,500 


30,000 


50.0 


15,000 


1,000 


20.0 


200 


400 


50.0 


200 


60,000 


63.3 


38,000 


10,000 


50.0 


5,000 


100,000 


40.0 


40,000 


35,000 


57.1 


20,000 


50 


30.0 


15 


135,000 


50.0 


67,500 


40 


25.0 


10 


50 


50.0 


25 


151,800 


21.7 


33,000 


10,150 


39.4 


4,000 


8,500 


26.5 


2,550 


500 


40.0 


200 


750 


50.0 


375 


20 


50.0 


10 


146,300 


28.1 


41,150 


10,000 


45.0 


4,500 


85,000 


45.0 


38,250 


1,000 


50.0 


500 


1,500 


33.3 


500 


500 


40.0 


200 


900 


33.3 


300 



-5- 



FORECASTED AIRPORT EXPENSES 



TABLE I (Cont'd) 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDING JUNE 30, 1961 



Item of Expense 

~rn 

Budgeted Expenses 



Annual 
Estimate 
for 1961 



Equipment for Buildings $ 17,700 

Furniture, Communication & Office Equipt. 24,000 
Machinery & Equipment 145,400 

Vehicles 34,000 

Department of Aviation Administration 

Salaries & Wages 228,144 



Contingencies 

Comptroller's Office Salaries & Wages 
Corporation Counsel's Salaries & Wages 
Fire Department-Salaries & Wages 
Police Department-Salaries & Wages 

Indirect General & Administration 

Salaries & Wages 
Fire Department Supplies & Maintenance 
Insurance: Workmen's Compensation 

and Disability 
Provision for Pensions 
Department of Aviation Administration - 

General Expenses 

Indirect General & Administration 

Other Expense 
Expenses Incident to Opening 
Engineering & Construction Equipment 

and Installation of Interim Facilities 
Taxes & Special Assessments on City 

Property 



Total Budget Expenses 

Provision for proposed wages 
and salaries increase 

Adjusted Total Budget Expenses 



Estimate for Six Months 
Ending June 30, 1961 
% of Annual Total 



"HT 



62.1% 
20,8 
34.7 
88.2 

50.0 



47,937 50.0 



■RT 



$ 11,000 

5,000 

50,400 

30,000 

114,070 



1,000 


50.0 


500 


25,056 


50.0 


12,530 


40,000 


50.0 


20,000 


222,312 


50.0 


111,160 


192,464 


44.1 


84,970 


84,405 


44.4 


37,475 


15,000 


40.0 


6,000 


2,500 


0.0 


- 0- 


186,498 


41.5 


77,400 



23,970 



84,405 
60,000 


44.4 
0.0 


37,475 
- 0- 


1,290,000 


61.2 


790,000 


25,000 


50.0 


12,500 


$4,528,103 


47.7% 


$2,159,595 



48,613* 
$2,208,208 



6- 



FORECASTED AIRPORT EXPENSES 



TABLE I ( Cont'd ) 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDING JUNE 30, 1961 



Item of Expense 

~rn 

Other Expenses 

Provision for Doubtful Accounts 

Reserve Maintenance 

Depreciation 

Amortization of Engineering 

Interest 

Total Other Expenses 

Total Airport Expenses 



Annual 
Estimate 
for 1961 



Estimate for Six Months 
Ending June 30 , 1961 
% of Annual 



Total 



Try 



ITT 

$ 13,700 

10,000 

153,200 

24,535 

282,640 

$484,075 

$2,692,283 



* Computed, based upon proposed budget increases in the salaries and 
wages accounts and related provision for pensions account. 

Source: Column ( 1 ) - Allowable items of expense for Flight F«e determination. 
( 2 ) - Budget Expenses: pp. 4, Table I of 1961 Budget Report. 

for Operation and Maintenance, Chicago-O'Hare International Airport, 
( 3 ) - Forecasted, based on historic relation of first six months to annual 

expenses and on currently available information regarding planned 

expenditures. 
( 4 ) - Budget Expenses: Column ( 2 ) x Column ( 3 ), Provision for 

Doubtful Accounts, based on historic experience. 

Reserve Maintenance: 1/2 of annual allowance per Airport 

Use Agreement. 

Depreciation: Computed, based on anticipated undepreciated 

capital costs of depreciable facilities as of January 1 , 1961 and 

the schedule of depreciable lives adopted by the City of Chicago. 

Amortization of Engineering: Computed, based on unamortized 

engineering costs as of January 1, 1961 and amortization schedule 

adopted by the City of Chicago. 

Interest: Computed, based on City's investment and average 

interest rate on outstanding City Bonds. 



EXPLANATORY NOTES RE: TABLE I 

The forecast of expenses for the first six months of 1961 was based upon the 
annual budget for 1961, the historical experience regarding the distribution of annual 
budget expenditures by six months periods, current information regarding planned 
expenditures and the operating requirements of existing facilities and those which 
are anticipated to begin operating during 1961 „ 

All significant differences between the estimated first half-year and last half- 
year expenses are explained below. These include all accounts over $10,000 where the 
difference amounts to $3,500 and is more than 10% of the annual amount. 

Operating Salaries and Wages - Due to the opening of the new terminal and 
other facilities in late 1961 or early 1962, additional operating personnel 
will be required. It is anticipated that most of these additional personnel 
will be hired during the last half of the year. Consequently, the salary 
expenditures will be less in the first half of the year than in the last half of 
the year. 
Rental of Equipment and Services - The first half of 1961 expenditures are 
expected to be greater than in the last half-year because the rental of 
equipment for snow removal will be predominant during the first six months 
of the year. 
Repair or Maintenance of Facilities - These wil I be made primarily during the 

warmer months of the year most of which occur during the last six months. 
Repair or Maintenance of Equipment - Historically, this expense item has been 
greater in the first six months of the year. |t relates to the heavier use of 
certain equipment during this period, particularly for the removal of snow. 

-8- 



Heat, Light and Power ( Public and Municipal ) - Greater expenditures during 

the last six months will be caused by the initiation of operations of new 

terminal and other new facilities during that period. 
Fuel Oil - The operation of the new power plant during the last six months 

of 1961 is anticipated to account for the greater expenditure during that 

period than in the first six months „ 
Materials and Supplies - The expenditures during the last six months are 

expected to be greater than in the first half-year because of the acquisition 

of the basic inventory for and the operation of the new facilities in the last 

half-year. 
Equipment for Buildings - Purchase of electrical sub-station equipment amounting 

to $1 1 ,000 is planned for the first six months, accounting for 62% of the total 

budget amount. 
Furniture, Communication and Office Equipment - Purchase of furniture and 

equipment for the new facilities is planned for the last six months, causing 

expenditures to be greater during that period than in the first six months of 1961 
Machinery and Equipment - |t is planned that the equipment purchased during the 

first half of 1961 will amount to about one-third of the budgeted amount. 

These purchases are for equipment which will be required for operation during 

that period. 
Vehicles - All but one of the vehicles which have been budgeted for, are 

expected to be purchased during the first six months. 

Police Department Salaries and Wages - Additional police are anticipated to be 

required during the last six months of 1961, when the new facilities are 

_9 _ 



opened. Consequently, the expenditures during the first six months 
will be less than those of the last six months. 

Fire Department Supplies and Maintenance - it is anticipated that the first half- 
year's expense will be less than that in the last six months, in keeping with 
prior years' expense. 

Expenses Incident to Opening - This expense is related to the opening of the 
new terminal facilities and will all be incurred during the last six months 
of the year. 

Others - These include indirect general and administrative salaries and wages, 
provisions for pensions, and indirect general and administrative other 
expense. The amounts expected to be spent from these accounts during the 
respective half-year periods are related to the direct salaries expense. 

Proposed Wages and Salaries Increases - This includes a 5% increase in all 

salaries and wages except police and fire department salaries, a 7 .5% increase 
in police and fire department salaries, and a corresponding increase in provision 
for pensions. These increases are in accordance with the recommendations in 
the Mayor's Budget. 



-10- 



AIRPORT REVENUES, EXCLUDING FLIGHT FEES TABLE II 

CHICAGO-O'HARE INTERNATIONAL AIRPORT 

FOR THE SIX MONTHS ENDED JUNE 30, 1960 AND JUNE 30, 1961 



Revenue Item 

Other Flight Fees 

Helicopter 

Rentals 

Terminal Building 

Temporary Maintenance 

Tank Farm 

Fixed Base Operators 

Aircraft Tie- Down Fees 

Air Cargo Building 

Farms, Residences and Other 

Total Rentals 

Utility Sales 

Concessions 

Automobile Parking 

Observation Deck 

Automobile Rentals 

Restaurant 

Telephones 

Bus Service 

Insurance 

Fixed Base Operator 

News and Gift Stand 

Parcel Lockers 

Plane Servicing 

Mispellaneous 

Total Concessions 



Six Months 

Ending 

June 30, 1960 



$ 8,712 



Six Months 
Ending 

June 30, 1961 
(3) 



$ 13,500 



$79,598 


79,700 


6,668 


6,300 


24,000 


24,000 


15,898 


16,300 


1,185 


900 


4,038 


4,000 


1,717 


4,700 


$133,104 


$135,900 


$ 50,643 


$ 52,400 



$239,498 


$316,000 


25,098 


31,600 


62,329 


94,800 


64,983 


79,000 


11,946 


15,800 


45,238 


63,200 


32,158 


47,400 


11,919 


12,000 


34,471 


55,300 


3,491 


6,320 


250 


300 


197 


200 


$531,578 


$721,920 


$724,037 


$923,720 



Total Revenues Excluding Airline Flight Fees 



Source: Column ( 1 ) - Sources of revenue at -O'Hare Field 

( 2) - Actual, per Financial Statements, Chicago-O'Hare International 

Airport prepared by Comptroller's Office 
( 3 ) - Forecasted, based on current agreements and leases and estimated 

air traffic. 

- 11 - 



EXPLANATORY NOTES RE; TABLE II 

The revenues forecast for the first six months of 1961 , as shown on Table II, 
are based upon current agreements, estimated air traffic, and the currently available 
revenue sources. 

A comparison of the forecasts for the first six months of 1961 with the actual 

revenues for the first half of 1960 is also shown on Table II. Principal differences 

between the two periods are in Helicopter Flight Fees and concession revenues. Both 

of these revenue sources relate directly to the number of air passengers using the airport, 

A comparison of the forecasted increase in enplaning passengers, helicopter flight fees, 

and concession revenues is indicated below; 

Enplaning Helicopter Concession 
Period of Time Passengers Flight Fees Revenues 



First Six Months of 1960 965,000 $8,700 $531,600 

First Six Months of 1961 1,580,000 $13,500 $721,900 

Percent Increase 1961 over 1960 64% 55% 36% 

Facility limitations and historic experience indicate that the revenues from 
helicopter flight fees and concession revenues will not increase in the same proportion 
as enplaning air passengers. These factors have been considered in arriving at the 
forecasted amounts. 



- 12 - 



AIRLINE LANDING WEIGHTS 



TABLE Ml 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 
FOR THE SIX MONTHS ENDING JUNE 30, 1961 



Airline 

TTT 



Parties to Agreement 

American 

Braniff 

Capital 

Continental 

Delta 

Eastern 
Flying Tiger 
Lake Central 
North Central 
Northwest Orient 

Ozark 

Pan American 
Trans World 
United 
Trans Canada 

Total Airline Parties 

Other Airlines 

Lufthansa 

B.O.A.C. 
Air France 
Mexicana 

Total Other Airlines 

Unadjusted Total All Airlines 

Less: Adjustment Factor ( 10% ) 
Adjusted Total - All Airlines 



Landing Weights 
( in Pounds ) 



821,000,000 
66,975,000 
116,926,000 
252,000,000 
267,685,700 

181,448,350 
-0- 
-0- 

115,351,484 
213,688,600 

16,226,000 

26,815,000 

881,799,700 

1,961,103,000 

41,040,000 

4,962,058,834 



12,420,000 
17,993,000 
13,041,000 
21,448,500 

64,902,500 

5,026,961,334 

502,696,133 
4,524,265,201 



Source: Column ( 1 ) - Airline parties to the O' Hare Airport Use Agreement and other 

airlines indicating they will serve Chicago through O'Hare. 
( 2 ) - Estimated by each of the individual airlines for its own operations 

- 13 - 



EXPLANATORY NOTES RE: TABLE III 

The unadjusted total of estimated airline landing weights shown on Table III 
were provided by the airlines. The total of these estimates was adjusted for purposes 
of determining the flight fee. 

The 10% adjustment was made giving consideration to the following factors: 

1 . The most recent experience indicates that the total actual airline landing 

weight at O'Hare has been less than estimated by the airlines: 

Percent Actual of 
Estimated Total 
Time Period Airline Landing Weight 

First Six Months of 1960 86% 

Third Quarter @f 1960 92% 

2. The airline estimates are made on the basis of schedules operated daily with 
no allowances for cancellations and days on which flights are not scheduled. 

3. The operating status of Capital Airlines is indefinite at this time. The Capital 
Airline estimate is about 2% of the total estimated by all airlines. 



-14- 



TOTAL FLIGHT FEE REVENUE REQUIREMENTS 



TABLE IV 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDED JUNE 30, 1961 



Line Item of Revenue & Expense 

— — m 

A Total Airport Expense 

B Less: Total Airport Revenues 

Exclusive of Flight Fees Paid by Airlines 
C Total Flight Fee Revenue Requirement 



Amount 

"TT5 

$2,692,283 



923,720 



$1,768,563 



Source: Column ( 1 ) - All Lines: Items used to determine Flight Fee Revenue 

Requirement 
(2) -Line A: Column ( 4 ), Table I 
Line B: Column (3 ), Table II 
Line C: Line A - Line B 



15 



EXPLANATORY NOTES RE: TA&LE IV 

In conjunction with the studies, a review was made of the flight fee revenue 
requirements estimated for the last six months of 1960. The review of the following 
elements upon which the flight fee revenue requirements for this period were based, 
indicate that an adjustment to the rate which was set does not appear warranted at this 
time. 

1 . Estimated revenues, excluding flight fees, appear to be "in line". 

2. Actual airline landing weight is running less than was estimated. 

3. Actual expenses appear to be running correspondingly less than estimated. 



-16- 



FLIGHT FEE RATE PER THOUSAND POUNDS OF LANDING WEIGHT 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDED JUNE 30, 1961 



TABLE V 



Line Item 



Total Flight Fee Revenue Requirement 
for First Six Months of 1961 

Estimated Total Airline Landing Weight 
( in thousand pounds ) 

Flight Fee Per Thousand Pounds 
For First Six Months of 1960 



Amount 



$1,768,563 

4,524,265 

$ .3909061 



Source: Column ( 1 ) - All Lines: Items necessary for required Flight Fee Rate Analysis, 

(2) -Line A: Column ( 2 ), Table IV. 

Line B: Column ( 2 ), Table III. 

Line C: Line A divided by Line B. 



-17- 



FORECASTED FLIGHT FEE REVENUE 



CHICAGO-O'HARE INTERNATIONAL AIRPORT 



FOR THE SIX MONTHS ENDED JUNE 30, 1961 



TABLE VI 



Line Item 

A Landing Weight ( in thousand pounds ) 

B Flight Fee Per Thousand Pounds 

C Total Flight Fees 



Airline Parties Other Airlines Total 

"TTJ 



UJ 



HT 



4,465,853* 58,413* 4,524,265* 

$ .3909061 $ .3909061 $ .3909061 

$1,745,729 $22,834 $1,768,563 



* Total estimates by the airlines, adjusted downward by 10%. 
( See explanatory note for Table III ) 



Source: Column ( 1 ) - All Lines: Items necessary for computation of total landing fees, 
(2), (3) and (4) 

Line A: Column ( 2 ), Table III, See note below 
Line B: Line C - Column ( 2 ), Table V 
Line C: Line A x Line B 



-18- 



CONTINGENT REVENUES TABLE VI! 

CHICA GOO 1 HARE INTERNATIONAL AIRPORT 
FOR THE SIX MONTHS ENDING JUNE 30, 1961 

In addition to the revenue forecasts on Table II, there are other sources of 
income which may be realized in the first six months of 1961 . 

1 . General Aviation Landing Fees 

Currently, no landing fee is charged for general aviation aircraft. A 
proposed ordinance authorizing such a charge is pending in City Council . 

2. Additional Concession Fees 

Currently, agreements have been consummated with two rent-a-car 
concessionaires , A third rent-a-car concessionaire may be operating at 
O'Hare during the first half of 1961 . 

3. Hangar and Hangar Site Rentals 

No rentals are anticipated from new hangar facilities during the first six 
months of 1961 based upon current data provided by the Department of 
Aviation. If, however, certain construction which is to be provided by 
the City is completed during the period, ground rentals may be charged 
to the airlines for the hangar sites. 



19- 



NOTES REGARDING FLIGHT FEE REQUIREMENT TABLE VIII 

CHICAGO-O'HARE INTERNATIONAL AIRPORT 
FOR THE SIX MONTHS PERIODS ENDING 
DECEMBER 31, 1960 AND JUNE 30, 1961 

The flight fee rate for the six months period ending June 30, 1961 is greater 
than the rate for the six months ending December 31, 1960. The rate for the last six 
months of 1960 was set at $.075 per thousand pounds, while the rate determined for 
the first six months of 1961 is $.391 per thousand pounds. The difference between 
the rates for the two periods is due to two factors: 

1 . Adjustments to the rate for the last six months of 1960 carried over from 
prior periods. 

2. Increase in expenses for the first six months of 1961 over the last six months 
of 1960. 

The adjustments made to the rate for the last six. months of 1960 were due to 
deferred income carried forward from 1959 and an anticipated deficiency in flight 
fees for the first half of 1960. 

The increase in expenses for the first six months of 1961 over the last half of 
1960 are due to increases in staffing and other expenses attendant to the expansion in 
airport facilities and operations and for engineering and construction expenses related to 
interim facilities provided. The increase in salaries and related expenses reflects a level 
based upon operation of the expanded existing facilities and preparing to operate the 
facilities anticipated to be in operation by the latter part of 1961 . 

A comparison of the rates for the two six months periods ( excluding adjustments 
for deferred income and flight fee deficiencies ) is shown below.- 

-20- 



Item 



Six Months Ending 
December 31, 1960 June 30, 1961 



Estimated Total Airport Expenses 

Estimated Airport Revenues, Excluding 
Flight Fees 

Total Flight Fee Revenue Requirement 

Total Flight Fees from Non-Party Airlines 

Flight Fee Revenue Requirement for 
Airline Parties 

Estimated Landing Weight, Airline Parties 
( in thousands of pounds ) 

Estimated Flight Fee Per Thousand Pounds, 
for Airline Parties 



$1,485,232 

914,690 

$ 570,542 

4,909 

$ 565,633 

4,055,093 

$ .139* 



$2,692,283 

923,720 

$1,768,563 

22,834 

$1,745,729 

4,465,853 

$ .391 



* $.065 per thousand pounds net adjustment for deferred income and anticipated 
deficiency of first six months of 1960 flight fees is included in this figure. 



( $262,407 divided by 4,055,093 = $.065 



rounded to nearest $.001 ) 



- 21 - 



5556 038 734963 






4/5/2010 
WT 194420 1 89 00 



5 
I 
a 




SAYLORG 




■■HffilH H 



JllfPP 
■111* 




mshihhhhK 



HM 



"■mmm 




Hi 



I — 1 

lliw 



m 



m 



m 



T— ■ 



ml 



HSiSffiffK 



M 




■"■■■ 






WW i. 

■■I 



■HH 



Bfflillliii 111 



H 



HHhShHwT 

■VSr 

oBVH 



ill 



IBS