"New Bakersfield Terminal Set to Take Flight"

Saturday, June 28, 2003

Set to take flight 
By MATT WEISER
The Bakersfield Californian


It's been almost a generation since plans were first drafted to build a
bigger passenger terminal at Meadows Field airport, and so much has changed
since then. 

The federal government deregulated the air passenger industry, completely
changing how airlines and airports function. The Internet came along and
revolutionized the way people buy plane tickets and plan their trips. A
recession occurred, followed by one of the longest economic booms in
history, followed by another recession still grinding away. 

And then, of course, came the World Trade Center terrorist attacks - almost
two years ago already -- which forever altered the public's perception of
airline travel. 

On Monday, Kern County stabs its first shovel into the ground for that new
airport terminal. Everyone seems to agree it's still needed, even though
airline passenger volumes at Meadows Field have failed to meet the generous
growth forecasts contained in the original airport expansion plan, published
in 1987. 

By 2000, that plan projected, 380,000 passengers a year would be flying out
of Meadows Field. In reality, only 96,500 passengers boarded airliners in
Bakersfield in 2002, an 18 percent drop compared with 1985, the base year
used in the 1987 study. 

Kern County Airports Director Ray Bishop says it is still essential to build
the new $33.8 million terminal. 

"It has been a long journey, but this is not the end of our journey," he
said. "This is kind of the beginning of air service for our community, not
the end of it. It buys for us a future that includes growth and better air
service." 
Plenty of others agree, even Roy Weygand, president of the Kern County
Taxpayers Association. 

"Unfortunately, I don't have anything bad to say about it," Weygand said.
"I'm glad to see it finally being built. We do have a need for one. Our
terminal is old. It was just fine to support Bakersfield 20 years ago. But
since then, 
Bakersfield is growing up. If we're going to continue to grow, we have to
have the support facilities and commodities to support growth. This is one
of those facilities." 

Even at present passenger volumes, the current terminal is considered too
small. It was built in 1957 to handle 50,000 passengers a year. 

The new terminal will be able to accommodate nearly 1 million passengers
annually, and is designed to be expanded easily to handle up to 16 million
passengers. The public areas of the terminal will be about four times bigger
than in the current terminal. 

The project also includes the airport's first indoor baggage claim area and
room for five jetways, which allow passengers to move between the terminal
and aircraft without stepping outdoors. 

Chris Frank, president of the Greater Bakersfield Chamber of Commerce, said
these and other facets of the new terminal are critical to the area's
economic future. 

"It has always been a challenge to bring business clients into our community
and have them judge our community by our current air terminal," said Frank.
"We've had to work to overcome that first impression many times. Our new
terminal will be a substantial statement of welcome, of stating we are a
progressive community and that we are visionary as a community." 

Some observers wonder, in this time of deep budget cuts at every level of
government, how the county can afford to build such an expensive project.
The funding comes from a variety of sources: $14.7 million from Federal
Aviation Administration grants; $17.6 million from county sources; and $1.5
million from the city of Bakersfield. 

The county's share includes $12.5 million in bonds, supported by both
airport revenues and the county general fund. The rest comes from tobacco
lawsuit settlement money received by the county. 

Nearly all this money is legally designated specifically for the airport
terminal and cannot be diverted for other purposes. The new terminal and the
airport as a whole operate independently of the county's general fund. 

"When government sets money aside for a specific project, it goes into an
allocation area for that item," Weygand said. "To transfer to another line
item without an official transfer can't be done. We're not taking money away
from anybody to build this terminal." 

Bishop further estimates that, once built, the new terminal will be cheaper
to operate than the current one, even though it will be much bigger. That is
because the current terminal has reached such a state of decay that it
requires constant repair, he said, and these repairs can be expensive
because the building is full of toxic asbestos insulation. He guesses the
new building will actually save up to $50,000 a year in operating costs. 

Yet, it's all still taxpayer money. Gene Tackett, a former Kern County
supervisor, wonders if it's being spent wisely. 

"It's a lot of money. It's not that I'm a skeptic, it's just that it's a lot
of money being spent at a time when we're having to lay off cops and
firemen," said Tackett, who is now a local political consultant. "There is
always hope that we will grow stronger and better by having a beautiful
airport. What we really need are passengers. We need to keep hustling to get
people to ride an airplane out of Meadows Field." 

To some extent, the success of the project will be measured by its ability
to attract new airline service to Kern County. Revenues generated by landing
fees are the primary mechanism to repay the bonds issued by the county 
to pay its share of the new terminal's cost. 

Bishop said a new building by itself won't bring the airlines flocking to
Bakersfield. Yet many believe it will help. Together with the area's rapid
growth, they hope the major airlines spot a lucrative market. 

"I see the air terminal as a continued action plan to bring more air
service," said Frank. "We have to demonstrate, as a community, a commitment
to air service. The new terminal sets the stage for us to go down that path
of demonstrating to airlines that we are committed to air service." 

But Todd Whitestone, a New York-based airport analyst with Standard &
Poor's, a leading bond rating firm, said it is wishful thinking to believe a
new terminal will lure more commercial flights. The market today is driven
by bargain carriers, he said, such as Southwest and JetBlue. In the near
term, he said, a community without direct service by an airline in this
category will experience slow growth at best. 

"If this was normal economic times for airlines, I would say generally, yes,
you're in better shape having the room and better amenities," Whitestone
said. "But most airlines are not looking to expand right now, and they're
more interested in controlling costs than having more square footage at the
gate. Airlines are under stress, and if anything, they are cutting back
operations, not adding flights." 

Like so many airports, Meadows Field is currently struggling just to regain
the traffic it enjoyed prior to the 9-11 terrorist attacks. Today, the
airport is served by 24 commercial airline trips a day by two carriers,
United Express and America West. That's below the approximately 30 trips a
day by five airlines that existed in 1985, and well below the 46 trips a day
that served the airport in the months before 9-11. 

Bishop noted some hopeful signs that these trends may be changing. 

He said a new partnership with Continental Airlines is virtually assured to
provide service to Houston starting early in 2004, thanks to a $1 million
federal grant to support some of the airline's costs to serve Bakersfield.
Another deal is near with Horizon Airlines to offer flights to Seattle. And
current carrier America West recently began flying a larger, more modern jet
on its Bakersfield-to-Phoenix route. 

Another plus is the main runway at Meadows. It is the fifth longest in the
state, and strong enough to handle a 
Boeing 747-400, the heaviest passenger jet flying today, Bishop said. 

But at the moment, studies show only about one in four Bakersfield travelers
flies out of Meadows Field. The rest use other airports -- primarily LAX --
because they offer better flight times, more connections or slightly cheaper
fares. 

Reducing this "leakage," as it's called in the business, will be key to the
success of Meadows Field, and Bishop believes it is possible. 

Forecasts show that other Southern California airports will reach capacity
in 15 years, making Meadows Field a more attractive option both for local
travelers, he said, and possibly convincing some Los Angeles County
residents to start their trips in Bakersfield. 

"We see ourselves growing as a regional airport," Bishop said. "I want to
have a good enough airport and good enough service that people in
Bakersfield can go where they need to go without having to drive to Los
Angeles. 

The new building doesn't necessarily propagate better service. The thing the
new building really does is it opens the door for our future."
  


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