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Sunday, December 2, 2007 Airlines
resist cost of airport upgrade They say they are being asked to pay
too much and claim their customers will suffer. By Tony Bizjak The Sacramento (CA) Bee County planners hope to open the
airport's new terminal, shown in an artist's exterior sketch, in 2011.
Sacramento County Airport System In just
months, bulldozers are scheduled to move dirt for the biggest expansion in
Sacramento International Airport history. But
the project's hefty $1.3 billion price tag remains a subject of debate. Several
national airlines complain they're being asked to pay an outsized share, and
want Sacramento County airport officials to consider cost-cutting measures. "We
have heartburn at trying to build a facility for $1.3 billion," said
Gregory Gillis, an executive with Southwest Airlines. "That's a very high
price tag." American
and Alaska airlines officials expressed similar concerns last week. Airport
director Hardy Acree counters that Sacramento's facility needs a major
expansion to keep pace with Northern California growth, and that airlines
benefitting from the increased ridership must pay their fair share. "From
the beginning, we've taken the approach we (will) build what is needed, and the
costs are what they are," Acree said. The
county's financing plan will require airlines to pay slightly less than half of
the total expansion cost, Acree said. The
remainder of the funding will come from passenger fees, parking revenue and
other airport rents and fees. Under
federal rules, airports are allowed to set "reasonable" fees on
airlines. The airlines can protest those fees with the federal Department of
Transportation, federal officials said. Airport
executive Acree said his agency is aiming to start construction this spring
with or without a fee agreement with the airlines. "This
train has left the station," he said. However,
Acree said his team will continue to discuss financing options with Southwest
and other airlines. County
officials and Southwest are scheduled to meet the first week of January to talk
about arranging lower-cost construction bonds. The
expansion, county officials said, will turn an outdated airport into an
efficient and stylish entrance to Sacramento. Its
anchor will be a four-story, glass-walled central terminal to replace the
40-year-old Terminal B complex. It will be built partially on the existing
Terminal B parking lot. The
county hopes to open the new terminal in 2011. Expansion
plans also include a tram to shuttle passengers between the new terminal and a
new remote concourse, as well as a second multilevel garage and a new airport
hotel. Southwest
official Gillis said the airlines still would like the county to consider
reducing the project size. Increased
fees are likely to become higher fares for fliers, Gillis said. "We have
to find a way to lower our costs for the new terminal so we can continue to
proceed with low fares." County
officials say they estimate their financing plan would increase airline fees
from the current average of $6 per passenger to as high as $11. It's
up to airlines to decide whether to pass that on to consumers, Acree said. The
county recently agreed to reduce the number of gates at the new concourse from
23 to 19, but has not agreed to any other major changes. Acree
said the new terminal and concourse ought to be big enough to handle an
expected 40 percent increase in passengers through 2020, and accommodate even
more expansion later. The
proposed new terminal size will be about 800,000 square feet, Acree said, more
than twice the size of the existing Terminal B complex. Initial
work, expected to start in late spring, will involve building new parking lots
on the west side of the airport to temporarily replace nearly 3,000 parking
spots that will be lost when excavation starts in the summer for the new
terminal. Officials
also are planning additional parking south of Interstate 5. The
existing Terminal B will remain in use during construction, then will be razed
when the new terminal opens. |
