"Texas airport predicts decline in projected deficit for the year"

Sunday, August 3, 2003

Local airport predicts decline in projected deficit for the year
By GREG BISCHOF
The Texarkana (TX) Gazette


For the last six months, only increased military traffic and cargo has
helped keep Texarkana Regional Airport's heart beating, airport director
Steve Luebbert said.

The traffic includes Red River Army Depot deployments to the Middle East.

"Military traffic continues to carry us right now," he told the Airport's
Authority board during their regular monthly meeting last week.

Also, getting a second commercial passenger carrier service as well as an
aircraft maintenance service apparently couldn't have come at a better time
for the struggling airport.

"I think we may be on the upward ramp," Luebbert said.

However, operational statistics released last week to board members
indicated that the airport's business is low and reported a passenger count
down by about 1,000 from this time last year, according to airport records.

Luebbert attributed the drop to the April 30 pullout of Delta's Atlantic
Southeast Airlines connection carrier.

Besides ASA-Delta's departure, recent terrorist alerts to the airline
industry, coupled with the industry's continued floundering business, has
influenced dismal local passenger traffic figures, Luebbert said.

"People are more hesitant to travel and the majors (larger airlines) are
still in trouble, so overall, the aviation industry remains flat," he told
the board.

But if local business develops by the end of 2003 as anticipated, the
airport will earn about $25,000 more this year to help narrow the projected
budget shortfall of more than $80,000 at year's end. This means the
airport's projected budget deficit figures for the end of 2003 could drop to
about $62,500-due in large measure to Continental Airlines' decision last
month to begin offering nonstop passenger flight service between Texarkana
and Houston, starting Oct. 1.

The projected deficit also appears to be eased by the decision of the Las
Vegas-based Eagle Jet Charter to start an aircraft maintenance operation
here for its casino flights, beginning in October.

Last month, when Luebbert approached the Texarkana, Texas, City Council with
a potential $82,000 budget dilemma, as he did the Texarkana, Ark., City
Board of Directors in mid-June, he said both cities may need to subsidize
the airport with a cost-share reimbursable formula based on each city's
population. According to the figures, the Texas side would be obligated to
pay some $44,900 with Arkansas picking up some $36,700 of the approximately
$82,000 shortfall.

Neither city approved the airport budget, but both expressed interest in
working with Luebbert to help bridge the gap and carry it through the rest
of the year.

But now with a projected shortfall of only $62,500, airport financial
records show the Texas side's portion would drop down to just under $35,640
with the Arkansas side looking at about $26,880.

By implementing further cost-saving measures, Luebbert said he might even be
able to cut the projected deficit down to about $27,000-which would mean a
further reduced bill for the Texas side of just under $15,400, with the
Arkansas side paying just under $11,620 to pay.

But if the airport is to survive and grow beyond this year, it will likely
have to be subsidized by both cities for at least a couple of more years,
beginning in 2004, according to airport records.

Luebbert said he is looking at preparing a 2004-2006 multi-year budget to
submit to the Authority Board later this month, as well as to the cities'
financial administrators.

"This way, both cities can see what's coming," he said.

At a minimum, this multi-year budget plan will ask the cities to assist the
airport in meeting only capital renewal matching requirements, Luebbert
added.

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