USA. Miami-Dade County Commissioners have approved a financial relief plan for business partners that includes the waiving of minimum guarantees for retailers, restaurateurs and other service providers at Miami International Airport.
The airport company valued the full package at US$64.8 million over an initial three month period, which is backdated to begin on 1 March.
The package embraces airlines, cargo handlers, car rental firms, concessionaires and other tenants in financial distress due to the COVID-19 downturn. The plan may be extended by a further three months or revoked if there is a change in trading conditions. It is subject to approval by the Federal Aviation Administration.
The plan features a combination of measures. It waives minimum annual guarantee (MAG) payments, rent and other related fees for duty free stores (in this case Duty Free Americas) and other tenants contracted to pay monthly MAG as well as rent.
These waivers also apply from March through May, with MAGs under the relevant contracts valued at US$3.1 million and rent at US$727,000 per month. Concessionaires will continue to pay the assigned category percentage fee of gross revenues instead of MAG and rent during this period.
The relief plan also waives MAGs and related fees for other third party service providers including car rental companies and other partners, with these valued at US$7.5 million per month.
It also defers monthly rent payments and other related charges to airlines and ancillary businesses from March through May, with these expenses valued at around US$10.2 million a month.
The total amount deferred and waived is around US$21.6 million per month, or US$64.8 million over the initial three-month period.
The County Board noted that as of 30 March, over 90% of the airport’s concession stores have closed, with some grab & go outlets and a limited number of sit-down restaurants remaining operational.
