The Guam International Airport Authority has taken a major hit since the collapse in global travel due to the pandemic. To boost revenues, GIAA is seeking greater flexibility in its concession and other lease agreements. They want to increase the current five-year limit on such contracts, to up to 30 years.

Airport officials say the current five-year contract limit discourages companies from investing. It's too short a timeframe, and too much of a risk for them. Airport executive manager John Quinata announced, "As an example, our food and beverage concessions are currently operating on short term leases, short term lease extensions which negates the ability for companies to invest heavily in improvement. With a clear path laid by the promulgation of rules and regulations for the competitive solicitation of concession agreements, GIAA will be able to finally and substantially improve upon the offerings of food and beverage concessions."

But the Guam Legislature imposed the restrictions 20 years ago to ensure that potentially lucrative deals receive the appropriate public scrutiny. Senator Joanne Brown said, "We’d like to successfully know that those leases are clean, and I’m sure that the people in the private sector that want to participate wanna make sure its clean. Some don’t because they don’t trust the government, and I don’t blame them."

Longtime airport consultant Frank Santos says there are also federal checks and balances in place, saying, "Non-aeronautical leases, the FAA requires us to lease those properties at fair market value based on a recent appraisal rating."

There are a number of long-term lease agreements already in place, they were grandfathered ahead of the current law.

Meanwhile, the bill would increase the lease agreement term to up to 30 years, and up to 10 years for concession leases. Senator Telo Taitague offered her conditional support, noting, "Transparency is the key. I mean the intentions of the airport is very good, but being transparent is even more important."