"United Airlines to add $10 surcharge on LAX flights"

Wednesday, April 11, 2007

United Airlines to add $10 surcharge on LAX flights 


NEW YORK (Reuters) - United Airlines said Wednesday that passengers on its
flights originating at Los Angeles International Airport will each pay a $10
surcharge to offset a rent increase, effective immediately.

In December, Los Angeles World Airports (LAWA) raised the rent for all LAX
airlines to finance airport upgrades. United, the largest airline at LAX,
said it would pay an additional $10 million annually and that it believed
the increase was in clear violation of its long-term lease agreement with
LAWA.

United, a unit of UAL, said it had joined several other airlines in a
lawsuit against LAWA. A spokesman for LAWA was not immediately available for
comment.

"We have a great interest in LAX developing into a world-class airport,
supported by a long-term modernization plan, but we have no interest in
paying higher fees without greater benefit for our customers," said Kevin
Knight, United's senior vice president of planning, in a statement.

LAWA has complained that it has absorbed increasing costs related to
security, maintenance and operations without passing on the costs to
airlines and that as a result needed airport improvements have been delayed.

The Air Transport Association, an industry trade group, has criticized LAX
for its increase in terminal rates. Several major airlines did not
immediately say if they planned to match UAL's surcharge.

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