"Delta woes affect Salt Lake airport"

Friday, April 16, 2004

Delta woes affect Salt Lake airport
The Associated Press

 
SALT LAKE CITY (AP) -- Delta Air Lines sneezed this week and city
officials wonder if their airport could catch a cold.

Delta, which accounted for more than 73 percent of Salt Lake City
International's passenger traffic last year, reported a $387 million
first quarter loss, and CEO Gerald Grinstein said "continued losses of
this magnitude are unsustainable."

"Is operating an airport a risky business?" City Councilman Dale Lambert
asked airports director Tim Campbell during the airport's yearly budget
presentation this week.

"It is right now," Campbell said.

Campbell told the council that it could continue to expect bad financial
news from Delta until the airline reworks wage agreements with its
pilots. The company has been seeking a 30 percent pay cut from pilots.

Campbell said even if Delta were to go into bankruptcy it likely would
rebound eventually.

"It's very difficult to kill an airline," he said.

Nevertheless, negative airline numbers do affect the airport, Campbell
said.

Fiscal year 2005 revenues are expected to decrease by $841,400 from the
projected 2004 revenues of $82.1 million, due to a reduction in terminal
concessions stemming from a 2 percent decline in passengers.

The number of passengers has declined steadily since 1996, when there
were 10.5 million. For 2004, the airport is expected to have 9 million
passengers.

Meanwhile, the airport is forging ahead with reconstruction of parking
lots, roadways and rental car lots while waiting to redesign the
terminals until probably 2011 or 2012, as demand dictates.


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