"DC's Dulles Airport juggles traffic, expansion"

Wednesday, July 7, 2004

DC's Dulles Airport juggles traffic, expansion


WASHINGTON, (Reuters) - Washington's Dulles International Airport is
playing a fine balancing act as major construction projects race to
accommodate the dramatic increase in passengers expected over the
summer.

Dulles, in the middle of a $3 billion debt-funded expansion and
improvement program, expects to see nearly 200 additional flights out of
the airport by the end of July thanks to the start-up of Independence
Air, a low-cost carrier and unit of Atlantic Coast Airlines Holdings
Inc. (ACAI.O: Quote, Profile, Research) .

While Independence Air may generate revenue for the airport in landing
fees, concessions and parking, it also raises the risk of delays at one
of the capital region's main airports.

That is especially true for August, when the rebuilding of Dulles' third
runway is scheduled to be done just as Independence flights leaving
Dulles climb to more than 300.

"There are going to be growing pains," said Tom Sullivan, spokesman for
the Metropolitan Washington Airports Authority.

The runway project is on schedule, according to the airport authority's
chief executive officer, James Bennett. He said the only thing that
could delay work would be bad weather.

Bennett also said improvement projects at the airport were conceived and
started well before Independence Air came into the picture.

"And that proves what we had in mind," Bennett said. "Demand is here and
the airport will continue to grow."

The improvement project at Dulles, in northern Virginia, began in 2000.
About 60 percent of the cost was covered by debt issued by the airport
authority, and the rest came from passenger facility charges and some
federal grants.

Most projects are largely on track. While some were reassessed and
delayed after the Sept. 11, 2001 attacks led to lower passenger figures,
other projects were speeded up. The runway, for example, was on an
expedited schedule, Sullivan said. A 1,000-foot tunnel that allows
passengers to walk from the terminal to two concourses will be done
before Thanksgiving, well ahead of schedule, according to Bennett.

Increased traffic from Independence Air, however, may not be Dulles'
only challenge.

UAL Corp.'s (UALAQ.OB: Quote, Profile, Research) United Airlines, which
runs a hub operation out of Dulles, is in bankruptcy and in June saw its
$1.1 billion loan application rejected by the U.S. government.

Bennett said if United ceases to operate, he expects other airlines to
take over those routes. Credit agencies agree.

Fitch Ratings, which has a "AA-" rating and stable outlook on bonds
issued by the Metropolitan Washington Airports Authority, said
Washington benefits from substantial demand for air service and that
will lure other carriers into the market.

Bennett declined to name airlines he thought were best positioned to
take advantage of United's routes out of Dulles, saying he does not
think United will close shop.


 Do you have an opinion about this story?
Share it with other readers in our CAA Discussion Forums

http://www.californiaaviation.org/dcfp/dcboard.php


*****************************************