"Jacksonville, Fla., Airport Foresees 21.2 Percent Revenue Increase in 2005"

Wednesday, June 23, 2004

Jacksonville, Fla., Airport Foresees 21.2 Percent Revenue Increase in
2005
The Florida Times-Union


The aviation industry will continue to rebound in 2005, resulting in a
21.2 percent increase in operating revenue for the Jacksonville Airport
Authority, according to predictions in the authority's annual budget
approved Monday.

In the 2004-05 budget, operating revenue will reach $58.4 million and
operating expenses will swell 17.8 percent to $38.1 million.

The operating margin, a measure of operating efficiency, is expected to
climb 34.8 percent from 32.9 percent.

The new budget, which was approved unanimously by the Airport Authority
board, still needs to be approved by the Jacksonville City Council
before being going into effect Oct. 1.

The number of passengers arriving and leaving Jacksonville International
Airport is expected to reach 3 million, vs. 2.5 million in the 2003-04
budget. However, the amount of cargo transferred through JIA is seen as
dipping slightly because more airlines are flying smaller regional jets
with less room for cargo, said Sherwin Burman, the Airport Authority's
chief financial officer.

Also approved was a $1.4 million amendment to the 2003-04 budget to
cover unforeseen expenses. The main added expense was $910,200 to hire
extra staff to man the JIA's in-line baggage screening system. When it
was installed in Dec. 2002 as one of the first of the country, the
authority assumed it would save on labor costs. That's not the case. "It
turned out to be fairly labor intensive," said Chip Snowden, the Airport
Authority's chief operating officer.

He said the main problem was rounding up luggage that was misread by the
scanners. That problem should be solved when a more accurate radio
frequency identification baggage tracking system is installed in the
fall.

Extra funds were also allocated to step-up the cleaning of restrooms in
the JIA terminal. Several board members commented on the rooms' poor
condition. "I don't think we should wait until October to clean the
restrooms," said board chairman Jim McCollum.

The additional expenses in the current budget will be paid for by
increased revenue, which total $2.3 million, Burman said.


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