"Airport Retail Sales Expected to Recover"

Tuesday, May 21, 2002

Airport Retail Sales Expected to Recover
The Tribune, Mesa, Ariz.


Retail sales will slowly improve at the nation's airports, particularly
after federal security rules become more clear, said experts at a
national aviation symposium in Scottsdale.

Panelists discussing retail and airport revenue problems at Monday's
11th annual Phoenix International Aviation Symposium disagreed on the
rate and degree of recovery. Still most said it would recover after the
Transportation Security Administration's role at the nation's 429
airports becomes more defined.

The Transportation Security Administration was established by Congress
last year to oversee security operations and set new rules for the
nation's airports in response to the Sept. 11 terrorist attacks. The new
agency has drawn fire for what some say is its unresponsiveness and lack
of direction on federal security directives.

Experts contend the agency officials are unfamiliar with business
requirements and other airport needs. Still, many panelists said airport
officials and businesses will evolve to meet security problems.

"My outlook for the future is optimistic,"said John O'Conner, CEO of the
industry consulting firm DMJM Aviation. O'Connor said the problems
facing airport retail operations nationally have been exaggerated and
business would continue to prosper despite what some consider to be a
glut of security in the nation's airports since September.

"Opportunities are created through harsh times," O'Connor said.

Charles Isell, director of Aviation at Philadelphia National Airport,
and Hans Mohrmann, a former top official at Amsterdam Airport, disagreed
somewhat with the other panelists, saying unwieldy security screening
may hurt the long-term survival of some retail and food business in some
airports.

"Airport's are becoming a place of uncertainly and fear,"said Mohrmann,
who criticized the governments handling of security since Sept. 11.

He said long lines and overwhelming security presence are not conducive
to brisk retail sales.

Other challenges still facing airports include depressed parking revenue
because of a slump in well-wishers and family members who accompany
their friends to an airport, as well as skyrocketing security costs.
Phoenix Sky Harbor International Airport officials estimate that added
security has costs taxpayers about $15 million in this fiscal year
alone.

Airport director David Krietor said Sky Harbor will put off many
projects planned before Sept. 11 including $40 million in refurbishments
to Terminal 4 until officials have a clear idea what new security
directives will be handed down and how they will affect the airport's
interior design.


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