McCarran slashing fees for concessionaires hurt by pandemic

Looking to provide financial relief for struggling concessionaires at McCarran International Airport, Clark County commissioners approved halting or reducing the payments those businesses make to operate at the facility.

The concessionaires’ “minimum annual guarantee” payments are usually made in equal monthly installments based off the individual establishment’s gross monthly revenue, according to Chris Jones, McCarran spokesman.

But with air travel at Las Vegas’ airport down 75 percent between March and August amid the COVID-19 pandemic, McCarran officials wanted to work with the companies that provide food and beverage, luggage cart, advertising, rental car and retail services at the airport to allow for continued operations.

“Airports, concessionaires and their employees are all in this situation together, so we need to work together,” Jones said.

Over 50 businesses possessing a combined 68 lease agreements will receive relief under this recovery plan, Jones said. There are approximately 180 retail and food and beverage locations airport-wide, with around 75 percent of those currently operating.

The concessionaires will see their payments waived for October and reduced by 75 percent until their 2021 anniversary date comes up. In exchange, the businesses’ lease agreements will be extended by one year.

Additionally, with McCarran renovating the usually busy C Concourse, where Southwest Airlines, the airport’s busiest carrier, operates most of its flights, outlets in that concourse will not make their minimum annual guarantee payments for up to two years, with their deals extended for two years.

The fiscal impact to McCarran is projected to be $21.6 million.

Businesses within this recovery plan include retail stores and restaurants, advertising providers, vending machine operators, luggage cart providers and rental car companies.

One of McCarran’s largest concessionaires, HMSHost, laid off 940 employees this month because of coronavirus-related travel impacts.

McCarran also will allow any concessionaires to terminate their contracts without penalty.

“As our passenger traffic inches its way back, it’s important that we maintain a diverse and appealing array of service providers to meet those travelers’ needs and expectations for their Las Vegas experience,” Jones said. “This recovery plan will help us to achieve that goal.”

Contact Mick Akers at makers@reviewjournal.com or 702-387-2920. Follow @mickakers on Twitter.