SEA’S COMMON-USE LOUNGES

• Lounges are an essential service for international airlines

• The Port has two common-use premium lounges at SEA – one in the South Satellite

and one on Concourse A – that meet the needs of international carriers

• In addition, there has been a dramatic increase in the demand for lounge access by

domestic travelers

Item No. _8b_supp

Meeting Date: September 24, 2019

Commission

9/24/19

THE PORT’S COMMON USE LOUNGES

MULTIPLE BENEFITS FROM SEA’S COMMON-USE

LOUNGES

• SEA’s two common-use lounges have provided an essential service for new

international carriers calling on SEA

• Lounge membership programs represent a significant generator of revenue to the

Port (net operating income has grown 35%, compounded annually, during the last

five (5) year contract)

• This additional revenue enables the Port to reinvest in terminal services that have

become expectations of the traveling public (pet relief areas, nursing suites,

enhanced accessibility services, power at seats…..)

PASSENGER VISITS TO AND REVENUE FROM

SEA’S COMMON USE LOUNGES

CONTRACT TERMS

• Up to ten (10) years contract for lounge management services

• Contract cost estimated to be $60,000,000, over the 10-year contract term,

including management fee, incentive management fee and operating expenses