New Lease Expands American Airlines Service at Palomar
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Description
The County plans to enter a new three-year lease with American Airlines starting May 7, 2026 to support up to eight daily flights at McClellan-Palomar Airport, yielding an estimated $1.1 million annually for the Airport Enterprise Fund. The agreement includes two one-year extension options and supersedes the airline’s current lease while maintaining the airport’s self-sustaining operations.
Contract Details
Contract Amount
$1,108,108 annually (anticipated fees and other revenue)
Vendor
AMERICAN AIRLINES
Agency
Housing Authority of the county of San Diego, CA
Contract Type
TRANSPORTATION
Document Date
May 13, 2026
Contract Term
Three-year lease beginning May 7, 2026, with two one-year options to extend
Renewal Date
2029-05-06
Renewal Info
Lease includes two one-year options to extend beyond the initial three-year term at the County’s discretion; the new lease will terminate and replace the airline’s existing lease that was to expire February 12, 2027.
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Issuing Agency
Local Housing Authority
San Diego, CA
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