RENTAL CAR CONCESSION

The County is seeking proposals from qualified Vendors for RENTAL CAR CONCESSION , in accordance with the terms and conditions and specifications set forth in this solicitation.

SBY is a commercial non-hub airport located on the eastern shore of Maryland and is the only commercial airport with daily scheduled flights in the area. It serves southern Delaware, the eastern short of Maryland, and the eastern shore of Virginia. Located in Salisbury, with a metropolitan statistical area of over 400,000 persons, the airport hosts American Eagle with several daily trips to CLT and PHL. Beginning October 1, 2025, Breeze Airways will begin twice-weekly direct service to Orlando International Airport on Airbus A220 aircraft.

Piedmont Airlines, a wholly owned subsidiary of American Airlines Group and regional airline branded as American Eagle, has its main base of operations and corporate headquarters at SBY as well as an Embraer 145 aircraft maintenance base. Enplanements and deplanements by American Eagle have steadily increased over the last few years. (Refer to attachment - Table 1)

On October 9, 2024, County, state, and federal officials conducted an official groundbreaking for a runway extension. The current runway 14/32 will be extended from 6,400 feet to 7,600 feet. The runway extension project should be completed by mid-2026.

Enterprise and Avis are the two rental car companies (RAC) operating at SBY today. Hertz previously operated at SBY but departed during COVID.

Those concession agreements commenced in 2005 and expired in 2010. The agreements are currently in holdover. Under those agreements, the RACs had the following financial terms:

1. Minimum Annual Guarantees were set annually for each of the five years
   1. Avis: Began at $56,000 and ended at $66,000.
   2. Enterprise: Began at $25,201 and ended at 40,501.
2. The percentage fee due was set at 9% of gross revenues.
3. There were rents for terminal counters/offices, ready/return car spaces in the RAC lot, and overflow parking in the public lot.

The past three years, the RAC gross revenues’ commissions to SBY are shown in attachment named Table 2

For the June 2024-May 2025 period, these commissions calculate to approximately $2.34MM in RAC gross revenues, net of any exclusions. The market share between the two companies has roughly evened out over the last year or so.

The current RAC facilities include the terminal counter/office, the RAC lot, and public parking overflow.