"Renovation of Albuquerque, N.M., Airport Security Area to Help Businesses"

Thursday, March 18, 2004

Renovation of Albuquerque, N.M., Airport Security Area to Help Businesses
The Albuquerque (NM) Journal


Retailers at the Albuquerque International Sunport hope a $10.5 million
expansion planned for the security area will pump life back into moribund
sales in "pre-security" shops and restaurants.

The expansion is expected to speed security inspections and increase the
shopping and concession areas, which right now crowd together during
high-traffic times.

In the wake of the Sept. 11 terrorist attacks, sales took a nose dive in
businesses ahead of the security barricade, while sales in business beyond
the barricade have significantly increased.

For example, at Garduno's, which is just before the entrance to the security
checkpoint, manager Bill Best said sales took the biggest hit immediately
after Sept. 11. Business has improved since then, but sales are still 6
percent lower than in 2002, when all the new security precautions were in
place.

In fact, total food concessions sales in the area before the checkpoint fell
by more than $2"million between 2000 and 2003, according to figures provided
by the Albuquerque International Sunport.

At the same time, food concessions sales beyond the security checkpoint went
from $7"million in 2000 to more than $8"million in 2003.

The expansion, which is now being designed and should be complete by
September 2005, will add approximately 27,000 square feet to the security
checkpoint. It will bump the number of security lanes and scanners to eight
from the present five and provide a place for passengers to put on shoes and
belts after the screening.

In the process, the expansion will give the Transportation Security
Administration, or TSA, the capacity to screen 9"million passengers a year.
Currently, more than 6"million travelers pass through the Albuquerque
airport.

The expansion will also provide a designated "meet and greet" area on the
east side of the so-called Great Hall where families and friends can wait
for passengers. Currently people meeting passengers have no official waiting
area and congregate near an exit walkway under a large sign that reads "Do
Not Enter."

"People don't like the accommodations," said Jonnie Banks, the airport
spokeswoman.

For the businesses with contracts in the airport, the expansion of security
should improve retail sales in the Great Hall by returning the hall to its
original purpose as an airy lobby. Currently, the space acts like a human
holding tank for passengers lining up to pass through security. The
expansion is one part of the city of Albuquerque's grand plan to transform
the airport into an "aerotropolis," a hub of businesses, hotels and
manufacturing centers. "What's happening is the store past security is
carrying the store ahead of security," explained George Cook, who is the
co-owner of Mercado del Sol, which operates three outlets at the airport,
including Distant Drums ahead of the security gates and Thunderbird Curio
and a Zia Gifts kiosk past the security gates.

"By far, the larger proportion of sales is beyond security. The lobby area
has a hard time generating sales," agreed Kathleen Avila, a managing partner
with her husband, John Avila, in Avila Retail. Avila Retail operates two
stores and two kiosks in the Sunport, including Fiesta Market, ahead of
security, and Earth Spirit and two kiosks behind security.

Earth Spirit opened in July at the T-intersection of concourses A and B. The
area was formerly a lounge for first-class Delta Airline customers. Next
door is Thunderbird Curio, operated by Mercado del Sol. New breed of
traveler Kathleen Avila said she believes there are two reasons for poor
business before the security checkpoint. One is that the security
precautions in airports have permanently changed the way people travel.

Since Sept. 11, passengers have been trained to arrive at least an hour
early at airports and immediately queue up to get through security. Only
after passengers go through security do they feel comfortable taking a few
minutes to shop or eat. By that time, they are essentially a captive
audience behind the security gates.

Avila Retail also runs three stores in the Denver airport and four stores in
the Phoenix airport and said a similar dynamic exists in those airports.

However, the problem is compounded in the Albuquerque airport by the
configuration of the existing security checkpoint, which frequently creates
daunting lines, especially during peak travel times.

The security configuration makes the entrances to shops on the east side of
the lobby almost invisible to passengers and greeters. The east side of
Grand Hall is currently home to a Hudson News, Fiesta Market and Distant
Drums.

When the checkpoint expansion is complete sometime in September 2005, a
person entering the Sunport and coming off the escalators headed toward
security will see new checkpoints added to the right in new space behind
Garduno's on the right side of the Great Hall. That move will speed up
processing and open up the left side of the Great Hall to create a
meet-and-greet area. As a bonus for businesses, it will also make the stores
more inviting.

The disparity between pre- and post-security business was illustrated on a
recent weekday afternoon in the airport. At a Hudson News stand past
security in busy Concourse A, customers lined up in a steady stream to buy
paperback novels, candy bars, snacks and soft drinks. At the Hudson News
ahead of security in the Great Hall, one lone family was browsing.

At Distant Drums, an American Indian gift store, there were no customers.

"We're not doing anywhere near the volume we should," said Cook of the
store.


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