Shellharbour council will tax JetGo for every passenger passing through the check-in counter in its temporary terminal building, under a proposal due to be debated on Tuesday.
According to a report to Shellharbour councillors ahead of an extraordinary meeting, the regional airline will also have pay $14.50 per inbound and outbound passenger when domestic flights begin operating.
The airline will also pay rent – of $1 – to use the building for the next three years.
The licence for the terminal building is an extension of the council’s recent deal with JetGo, which will have the exclusive rights to operate flights to Brisbane and Melbourne from the Illawarra Regional Airport for the next three years.
Starting in October, JetGo will run nine weekly return flight to Melbourne and six to Brisbane.
JetGo has also asked for exclusive rights over any other route it establishes from the Illawarra – and has already mentioned the Gold Coast as a future possibility.
The company’s occupation of the temporary terminal building will consist of allocation of work space and access to common areas such as amenities and tea room facilities.
Explaining the low rental fee, council staff said the three year exclusivity deal meant the city would “not be forgoing any other commercial rental over this period for the use of the terminal facility”.
Also at Tuesday’s extraordinary meeting, the council will debate the tender for baggage and security screening services at the airport.
This item has been listed as confidential, as staff say it contains commercial information as well as specific information regarding about the council’s airport security.