"Continental barnstorms for Houston airport finance measure"

Friday, October 13, 2006

Airline likes G for growth
Continental barnstorms for airport finance measure
By BILL HENSEL JR.
The Houston (TX) Chronicle 


Continental Airlines is spearheading a campaign to help pass Proposition G -
a measure it says is needed for growth of Houston's airports, as well as the
airline itself.

The proposition, which has the backing of Mayor Bill White, would amend the
charter of the city of Houston to exclude airport revenues and other
self-sustaining enterprise funds, which depend on user fees rather than
taxes, from the city's current limits on revenue collection.

Opponents say voters should say no to Proposition G because of the effect it
could have outside the airports for other city services paid for by
enterprise funds.

Houston-based Continental, which employs 20,000 in the Houston area, is
asking employees who live in the city for support and is reaching out to
frequent fliers and business leaders.

"If Prop G does not pass, our ability to grow at Intercontinental will be
hurt," Larry Kellner, chairman and chief executive of the carrier, told
employees in his weekly taped message.

If passed, the ballot proposal would remove the city's enterprise funds from
the cap known as Proposition 2 that was voted in by Houstonians in 2004.

Continental maintains that the cap should be eliminated because as landing
fees and gate fees grow, there should be no limit on the city's ability to
invest that money to maintain and expand the airports to bring in additional
visitors and businesses.

The ballot item would have an effect on funding Houston's other airports.
Dallas-based Southwest Airlines, which carries more than 80 percent of the
passengers at Houston's Hobby Airport, also supports the measure.

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