"Airport Authority in North Carolina Reviews $20 Million Budget"

Wednesday, May 22, 2002

Airport Authority in North Carolina Reviews $20 Million Budget
The Winston-Salem (NC) Journal


GREENSBORO, N.C.--The Piedmont Triad Airport Authority reviewed a $20
million capital budget for 2003 at its monthly meeting yesterday.

PTI expects to bring in $29.4 million in total revenue, most of which
will be in the form of operating revenue. Operating revenue is expected
to be 4 percent higher compared to last year because of an anticipated
increase in passengers as well as in terminal and landing fees and in
parking fees, officials said.

The airport had been experiencing a steady increase in passengers and
flights in 2002 until the Sept. 11 terrorist attacks, which caused the
entire airline and travel industry to falter.

"I don't think the airports our size have been hit as bad, yet, as the
larger ones,"said Ted Johnson, the executive director of PTI.

Although almost every airport nationwide suffered economically, mainly
from a cutback in flights, the larger airports in major cities were hit
the worst, he said.

The airport's expenses in its 2003 financial year, which starts in July,
are expected to increase about 10 percent, to $9.12 million. Almost the
entire amount is for additional security requirements at the airport,
Johnson said.

Federal money has been approved to cover those expenses, however, he
said.

About $13.8 million has been budgeted for capital projects, including $7
million to buy land and $5 million related to the proposed FedEx cargo
hub, which is expected to open at the airport in 2006.

PTI's 2002 budget was affected slightly by the Sept. 11 events. A sharp
drop in passengers during the second-half of the year, as well as lower
parking, airplane and landing fees, as well as rental car use, eroded
operating revenue by 6.3 percent to $24 million, less than budgeted.

Expenses were up 6.7 percent to $8.2 million, most of which was for
security-related reasons, Johnson said. Most of the airport's capital
projects, including airport renovation, were kept on the budget, but it
dropped plans to expand the North Concourse.

Johnson said that the airport authority would continue to allocate money
for that project but does not plan to add any more gates at this point.
It is waiting on several factors, including whether struggling US
Airways will reduce its presence at the airport, whether other airlines
will want more space and whether it can land a low-fare carrier, which
probably won't happen for at least another six months, he said.

"We're always talking to people, but that doesn't mean they are going to
show up here,"Johnson said.

PTI will hold a public hearing on the budget at its June 18 meeting.


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