CAA: GA News, "Private Company To Take Over Louisiana Airport"

["Stephen Irwin" <stepheni@xxxxxxxxx>]

Wednesday, March 27, 2002
 
Private Company To Take Over Lakefront Airport
WDSU-TV TheNewOrleansChannel.com


Members of the Orleans Levee Board voted Wednesday to privatize the
Lakefront Airport, with hopes that it will stimulate economic
development and free the board to focus on other projects.

While the final vote didn't come easy, American Airports Lakefront LLC
will take over after two years of lobbying. The contract is set for 50
years.

"(They are) a local entity and . a very established company," board
member James Livingston said. "They've been involved in several airports
and about 300 golf courses, so they have good credentials."

But board member Peggy Wilson said she found fault with the process.

"Privatization is a good idea theoretically, but in order to have it
work you have to have competition," Wilson said. "Well, there is no
competition here because there is only one bidder."

There was another company in the running to take over the airport, but
part of the airport bulkhead needs repair and that company did not want
to take on the project.

Lakefront Airport was a cutting-edge development in the 1930s and 1940s,
and it may take on that role again, board members said. It is only the
second airport in the country allowed to privitize, and only one of five
that will be allowed to privitize. The deal could become a blueprint for
the future of Armstrong International.

Some concerns were expressed over the fact that the California-based
parent company of American Airports is actually known for running golf
courses. But consultants for the board said the company has local owners
and a track record of running more than 20 other airports that are
similar to the lakefront facility.

The privatization lets the board focus on its "primary job" of flood
control, Livingston said.

Jettisoning the airport also will lift a financial burden, since the
levee board loses about $1 million a year on the facility. The new
company will assume that loss and pay the board $300,000 a year until
the airport turns a profit. Then, the payments will increase more.

"We hope to see significant economic growth and this helps turn New
Orleans around," Livingston said.

People who live in the area have some concerns about additional flight
patterns and traffic, and board members said those concerns and an
actual starting date for the new company still need to be worked out.

On the Net:

http://www.lakefrontairport.com/

Attached Photo:

Lakefront Airport

Lakefront Airport