"Detroit Metro Airport to repay its airlines $11 million"

Wednesday, December 14, 2005

Metro Airport to repay its airlines $11 million
The Detroit (MI) Free Press


Detroit Metro Airport beat its budget estimates in 2005 and will give back
$11 million to airlines.

The extra cash can add a little to the coffers of cash-strapped airlines. It
also helps the airport's leadership, part of the 3-year-old Wayne County
Airport Authority, gain a reputation for lean, conservative management.

"We think we've done a good job for our carriers here," said Lester
Robinson, CEO of Metro Airport. "We'd like to invite them to offer more
service here. We think we're a bargain."

The airport budgeted for $224 million in expenses, but as the airlines saw
record passenger traffic this summer, higher revenue from concessions and
parking offset fees coming from the airlines.

The airport in its 2005 fiscal year, which ended in September, spent $213
million.

Keeping costs low for airlines is essential for airports that want to ease
some of the burden on major carriers such as Northwest Airlines, which is
restructuring in bankruptcy court, and still attract new carriers, airport
management experts say.

Airport managers have "come to the realization that they have to do
everything they can to help the airlines reduce their costs," said John
Infanger, editorial director at Airport Business magazine.

Nearly 70% of the airport's surplus will go to Northwest.

This year Metro charged an airline $5.76 to board one passenger, which is
lower than at Dallas-Ft. Worth International Airport, Miami International
Airport and San Francisco International Airport.


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