A Look Ahead: What 2004 Will Bring for the Twin Cities Airport

A Look Ahead: What 2004 Will Bring for the Twin Cities Airport
Minneapolis Star Tribune, MN
  
Published January 2, 2004  
  
  
The long, deep strip of concrete that will be runway 17-35 at Minneapolis-St. 
Paul International Airport grew the length of 16 football fields last year.

That means about 6,700 of the planned 8,000 feet have been poured, with the 
rest scheduled over the next two years. The runway remains the most costly item 
on a crowded agenda for the Metropolitan Airports Commission (MAC) for 2004, 
but it might be the least controversial. The commission and its biggest tenant, 
Northwest Airlines, agree that the twice-delayed project should be completed, 
despite the drop in airline passengers after Sept. 11, 2001, and the industry's 
slow recovery.

But the issue could get hot, when the runway opens in late 2005, and jets begin 
flying more often over parts of the Twin Cities area that haven't endured such 
noise before.

Another item on the 2004 to-do list is the opening of the automated, elevated 
tram alongside the C concourse of the Lindbergh terminal. For months, empty 
tram cars have been shuttling back and forth on the 2,700-foot track, and a 
30-day testing period could begin soon, said the commission's Dennis Probst.

If those tests achieve 98.5 percent reliability, passengers could begin riding 
the tram late this month, said Probst, who is overseeing the project. But after 
previous delays by the contractor, Poma-Otis Elevator Co., Probst says he is 
cautious about the start date.

Depending on talks with Northwest, a fire station could go up this year on the 
site of the former Econolot near the Humphrey terminal. The station is intended 
to serve the south and west sides of the airport when the new runway opens, but 
Northwest wants the project scaled back.

These are some of the most visible projects crowding the agenda of airport 
officials in 2004 as they try to finish their $3.1 billion expansion project. 
The plan is rooted in the 1996 decision by the Legislature and then-Gov. Arne 
Carlson to expand the airport where it is rather than to build a new one.

At least four other issues pose questions that are likely to generate wrangling 
at commission meetings:

• Jet noise. Where will the next set of noise contours be drawn on maps 
around the airport? Will the commission honor its seven-year pledge to provide 
some amount of insulation in homes exposed to less noise than those already 
insulated? Will Northwest try to scuttle that effort, despite a lease 
commitment to do so?

The contours, based on a formula that accounts for a host of information such 
as types of planes, the routes and times they fly, and the noise they generate, 
help to determine which houses might be eligible for noise insulation.

Commission Chairwoman Vicki Grunseth said she hopes one outcome will be to 
prevent future commissions from being obligated to follow insulation decisions 
based on outdated noise information.

• Concessions. How will the commission revamp the airport's prize-winning 
concessions program? Developers and concessionaires monitored the issue for 
most of 2003 and offered ideas that have reshaped the way that bids will be 
submitted. Millions of dollars are at stake for the bidders, for the commission 
and for Northwest, which runs its own concessions program on the main 
terminal's G concourse.

For airport users this issue could result in more and different kinds of 
restaurants, bars, shops and services, making the terminal look even more like 
a shopping center than it does now.

Grunseth said that because of the competition, "There probably is not a bad 
solution out there for us" and added that she is looking forward to exciting 
proposals in February.

A key factor is Northwest's stance. In 2002, the airline generated about $16 
million in concessions revenue on the G concourse, compared with about $82.5 
million that concessions generated in the rest of the terminal. Northwest also 
keeps about 85 percent of its concessionaires' rent. The other 15 percent goes 
to the commission. 

Expanded concessions in the main terminal are favored by the commission staff 
and some key bidders, but more concessions could divert some revenue from 
Northwest's concessions on the G concourse. The airline, however, argues only 
that it believes the estimated 17-year payback on the main-terminal expansion 
would not make good business sense for the commission.

• Reliever airports. Will the commission turn over operations of its six 
smaller, reliever airports around the Twin Cities area to a private firm? Or 
will it keep the relievers and increase fees and charges?

Such hikes would most affect private pilots, charter services, flight trainers 
and related businesses, but Northwest considers the issue important enough to 
already have filed a suit against the commission. The airline says the 
commission's subsidies are exorbitant. 

Two recent court decisions denied Northwest's request for an immediate trial 
and said the airline first must exhaust its options through the commission. But 
the Minnesota Court of Appeals also urged the commission to resolve the matter 
promptly.

Commission Member Bob Mars of Duluth said the agency's position in favor of 
managing the relievers might shift because fewer members own their own planes. 
He also said that if the commission doesn't decide the issue, the Legislature 
might.

Grunseth said, "I don't want to approach this based on what the airlines want. 
[Instead], what is sound policy for the MAC?"

• Surplus operating funds. In 2003, the commission turned over $13 million in 
operating profits to its airline tenants to help them cope with tough times. 
The surplus is generated from airport users who pay parking fees and buy food, 
beverages and services at the airport. 

The commission, which recently took positions on its 2004 budgets and terminal 
expansion contrary to those of Northwest, might be asked by the airline for 
further relief in 2004. The commission staff is unlikely to recommend that 
option.

Grunseth said that in the months to come, "Northwest is there to push, push, 
push, and we're there to do what we do. We're making the policy decisions."

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