"Vendors at LAX Face Disruption"

Wednesday, September 18, 2002

Vendors at LAX Face Disruption
Airport: Up to 20% of concession space could be demolished to add
security checkpoints.
By JENNIFER OLDHAM
The Los Angeles (CA) Times


The city agency that operates Los Angeles International Airport may have
to demolish up to one-fifth of the facility's lucrative concession space
to accommodate additional security checkpoints necessitated by new
federal security standards.

The airport agency plans to start construction this month to increase
the number of security checkpoint lanes at LAX by 25%.

The work may require the relocation of 13 concessions in Terminals 1, 3
and 6 and the Tom Bradley International Terminal. Shops and restaurants
in the five other terminals will not be affected.

The most visible change is likely to come at Terminal 1, home to America
West, Southwest Airlines and US Airways, where one of the airport's most
profitable food courts and one of its most popular bookstores could be
replaced by two new security lanes. The additional lanes are needed to
ease long lines that often snake outside from Terminal 1 to Terminal 2.

Concession operators and workers said the proposed changes come as they
are struggling to recover from a downturn in travel and new security
procedures that allow only ticketed passengers past security
checkpoints.

Souvenir shops, bookstores and restaurants displaced by construction
would be moved elsewhere in the airport. The targeted concessions, which
occupy about 20,000 square feet, generate about $20 million in sales
each year, resulting in $2.8 million in fees for the airport agency.
Most of the concessions are operated by conglomerates such as W.H. Smith
and H.M.S. Host. Some are contracted out to smaller businesses owned by
women and minorities.

Officials emphasized that the demolition plans must be cleared by the
federal Transportation Security Administration.

Airport officials still hope to negotiate a compromise that would not
necessitate demolishing all 13 concessions, or that would allow them to
relocate the businesses before construction begins.

"This is a worst-case scenario," said Airport Commission President Ted
Stein. "We would like the ability to negotiate with the TSA to try to
save as many concession spaces as possible."

The commission voted unanimously Tuesday to give the airport agency's
executive director the authority to displace the 13 concessions. The
agency said more security checkpoints are necessary to decrease
congestion and to minimize security breaches.

"We're working with concessionaires to accommodate their businesses in
other areas," said Paul Haney, an airport spokesman.

"We want the concessions to continue to be available to the traveling
public, and we want to preserve concession worker jobs and the revenue
stream coming to the airport."

Concession operators said even if "half the worst-case scenario" comes
true, relocation efforts could lead to hundreds of thousands in lost
revenue, and require anywhere from three to six months to move stores.
"This could take away anywhere from 10% to 20% of our gross revenue.
That's a pretty substantial hit," said Clark Davis, president of C.S.
Davis Co. and a lobbyist for W.H. Smith.

Construction plans could affect six of W.H. Smith's holdings at LAX,
including its top-and third-grossing stores: the American Collection
gifts store in the Bradley terminal and Waterstone's Booksellers in
Terminal 1, respectively, Davis said.

At the commission meeting, union organizers expressed concern about what
will happen to the 200 or so employees who work for W.H. Smith and other
vendors.

"There are still many questions to be answered, such as what will the
full impact be on workers and on their long-term job security?" said
Maria Loya, director of public policy and advocacy for the Los Angeles
Alliance for a New Economy.

About half of the 200 workers are employed by restaurants in a food
court in Terminal 1, including Gordon Biersch Brewery, Boudin Sourdough
Bakery, California Pizza Kitchen, Naked Juice and Starbucks. For many of
these employees, it is the second time in a year that they have had to
worry about layoffs.

"I was laid off after 9/11 for six months and I maxed out my credit
cards. I couldn't pay my mortgage," said Lotus Silva, who works as a
bartender at Gordon Biersch Brewery. "If I'm laid off again, how am I
going to get basic things for my two little girls, like food and health
care?"

Concessionaires said that they hope to avoid layoffs, but that they
could become necessary if their shops and restaurants are relocated to
areas that aren't as profitable as their current locations.


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