"Indianapolis Airport Officials Consider Proposal to Increase Parking Rates"

Saturday, August 2, 2003

Indianapolis Airport Officials Consider Proposal to Increase Parking Rates
The Indianapolis (IN) Star


Parking at Indianapolis International Airport's cheapest long-term lot would
rise $1 a day as part of the airport's proposed 2004 budget. 

The Indianapolis Airport Authority expects to collect $22.1 million in
parking revenues next year. That's an increase of $1.63 million or 8 percent
more than its 2003 budget forecast. 

About $1 million of that is expected to come from the proposed increased
fees for the 3,020-space economy lot -- to $5.50 a day from the current
$4.50. 

Fees are becoming a more sensitive issue for passengers saddled with
security charges and passenger facilities fees tacked onto tickets for
airport capital improvements -- including a $4.50 facilities charge at
Indianapolis International. 

Grant Nash of Cincinnati, waiting for a shuttle bus in the economy lot, took
offense at the proposed increase. The price-sensitive passenger drove two
hours to Indianapolis because fares to California were cheaper from here. 

"It sounds like they're trying to vacate the lot. The big problem now is
it's full. I'd like to fight for spaces here at a cheaper rate," Nash said. 

The airport authority board would have to approve a parking fee increase. A
vote is not yet scheduled. 

The boost in economy parking rates is based partly on a decline in business
travelers. They often park at the airport's more convenient but pricier
business lots. 

But as companies have pared travel budgets, business travelers now are only
about 30 percent of traffic at the airport. Leisure travelers now make up 70
percent. 

"That is quite a shift. Historically we have been a 50-50 (percent) market,"
said Marsha Stone, finance director for airport management firm BAA
Indianapolis. 

Airport officials don't want to spend money to increase capacity in the
economy lot as they pour resources into a new midfield terminal, said David
Roberts, head of BAA's Indianapolis operations. The current parking lots
will be abandoned when the midfield terminal opens in about four years. 

The next, least-expensive on-airport parking is the Corporate Connection lot
at $6.50 a day, although it is closer to the terminal. Other airport parking
lots are Tiger Express for $7 a day and Premier Business Class at $8 a day.
Another option is private, off-airport parking lots, which are competitively
priced. 

Total airport revenue in 2004 is projected to be $158.1 million, compared
with $153.5 million forecast for 2003. Total expenses, which include debt
service, are $155.1 million for 2004 compared with $143.1 million in 2003. 

This year's budget included a 40 percent rise in landing fees charged
airlines, although landing rates will remain the same for 2004. 

Other budget items: 

-- Passenger boardings are projected to grow 3 percent next year to 3.6
million. 

-- The airport's capital improvement fund jumps 36 percent to $214 million
from $157.6 million forecast for 2003. Much of that is for the midfield
terminal. 

-- Terminal rent is expect to grow 20 percent to $15.3 million, in part
through an expansion of food and beverage operations.


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