Kenai Council approves airline operating agreement with Fox Air but orders additional due diligence

The Kenai City Council voted to adopt a resolution authorizing a city manager airline operating agreement (AOA) and terminal lease with Fox Air LLC on May 6, while directing administration to perform additional due diligence after council members raised concerns based on a letter that alleged operational issues.

City Manager Eubank told council Fox Air proposed to operate six flights per day, six days per week using a nine-passenger Caravan aircraft and that an initial deposit check had been received. "Their initial operating plan is to operate 6 flights per day, 6 days a week...They will be operating the Caravan," Eubank said.

Council member Sonar and others asked whether the city should postpone action while staff validated allegations in a letter from a local correspondent; City Attorney Bloom and staff recommended approving the resolution at the meeting but not executing the lease until the administration completed additional due diligence and confirmed insurance and certificate requirements. Council reached a compromise: approve the AOA and authorize the city manager to continue due diligence and withhold signature or execution if concerns are found.

Council members emphasized the need to protect the city’s reputation and ensure the carrier meets FAA and city requirements. The resolution was adopted by unanimous consent with the contingency that administration verify outstanding items prior to executing the agreement.