Statement by UNITE HERE Local 11 on Los Angeles World Airports Board of Airport Commissioners vote to accept $36.78 million in an American Rescue Plan Act concessionaire relief grant at the July 8, 2021 Special Meeting
Los Angeles–Los Angeles World Airport staff have recommended that the Board of Airport Commissioners vote to accept federal grant offers for American Rescue Plan program funds at their special meeting on July 8, 2021. The Federal Aviation Administration allocated $36,785,751 for concessionaire relief at Los Angeles International Airport (LAX). UNITE HERE Local 11 members at HMS Host demand that, should LAWA accept federal aid, it must require concessionaires like billionaire firm HMS Host to direct all relief to the workers that have struggled through the pandemic.
LAWA extended rent relief twice during the pandemic, providing minimum annual guarantee waivers and 24-month lease extensions for concessionaires like HMS Host. HMS Host is the largest airport concessionaire in North America and operates approximately 47% of all food and beverage concessions at LAX. UNITE HERE Local 11 estimates that because of LAWA’s actions, HMS Host escaped paying more than $4 million in rent between April 2020 and March 2021 for their two direct contracts. This does not include additional relief from the terminal concession manager, URW Airports, which URW passed down to sub-tenants like HMS Host.
Meanwhile, hundreds of HMS Host workers were laid off at the start of the pandemic and many are still waiting to return to their jobs.
HMS Host is a wealthy corporation, whose parent company, Autogrill, is owned by Italian billionaires through a holding company with a net asset value of $12.9 billion as of December 31, 2020. The airport provided more than enough relief throughout the pandemic and concessionaires like HMS Host must prioritize supporting airport workers. Domestic passenger traffic at LAX for May 2021 is at 61% of May 2019, before the pandemic. According to TSA screening numbers, travel peaked nationwide last week leading up to Independence Day with screening numbers exceeding 2019 levels. With travel recovering and significant aid already given to the firm, we believe HMS Host does not need nor does it deserve any additional relief from the American Rescue Plan Act concessionaire relief grant offered to LAX.
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