Common Contracts

WY Capacity Purchase Agreement Cost

Capacity Purchase Agreement • December 31st, 2018

• Contract Type
  Capacity Purchase Agreement
• Filed
  December 31st, 2018

Short-Term Agreement (MRG) vs. Capacity Purchase Agreement (CPA)  Negotiated year-to-yearo Does not address industry challenges including: Worsening pilot shortage Aircraft retirements Competitive market  Multi-year agreemento Mitigates industry challengeso Secures scarce airline resources for Wyoming  Uncertaintyo Flight schedule uncertainty beyond contract periodo Higher risk of service being discontinued by airline  Stabilityo Customers, businesses, and communities know the service will be thereo Reduces overhead of negotiating year-to-year agreements  Higher long-term costso Uncertainty in longevity of service drives down ridership and revenueo Year-to-year agreements can vary on cost  Lower long-term costso Competitive bidding processo Better opportunity for self-sustaining serviceo Stable service drives more passengers and revenue  Carriers can change flight scheduleso Wyoming is at a greater risk due to low performance during winter monthso High potential for disruptio