Seven Airlines File DOT Complaint Opposing New Terminal Charges at LAX
20 Febbraio 2007 - 7:46PM
PR Newswire (US)
Massive Rent Increase Could Penalize L.A. Travelers Through Higher
Airfares, Reduced Options WASHINGTON, Feb. 20
/PRNewswire-FirstCall/ -- AirTran Airways, Alaska Airlines, ATA
Airlines, Frontier Airlines, Midwest Airlines, Southwest Airlines
and US Airways Group have filed a joint complaint with the U.S.
Department of Transportation (DOT) in opposition to new terminal
charges at Los Angeles International Airport (LAX) that
dramatically increase the airlines' costs and could lead to higher
airfares and reduced options for Los Angeles air travelers. The
massive fee hike, imposed Feb. 1 on carriers operating out of
Terminals 1 and 3, forces the airlines to pay as much as 12 times
more per square foot than their competitors at other terminals. The
airlines estimate the collective financial impact of this
differential over the next 15 to 20 years at more than $1 billion,
with a near-tripling of charges from $20 million to $56 million in
the first year alone. The differential could be significantly
greater should Los Angeles World Airports (LAWA), the operator of
LAX, impose further increases during this period. The carriers
argue that LAWA's huge rent increase violates federal law because
it unjustly discriminates against airlines with expired leases,
while competing airlines with leases expiring in 15 to 20 years are
charged dramatically less for comparable terminal space. "LAWA is
not a private commercial landlord," the filing notes. "Rather, LAWA
is a public utility with monopoly power over the airlines wishing
to serve LAX. And, in order for airlines to serve the Los Angeles
area effectively, access to LAX on fair and non-discriminatory
terms is essential." An airport that receives federal funds is
required to remain open to all airlines wishing to serve that
airport on reasonable terms and without unjust discrimination. The
filing points out serious consequences for Los Angeles residents
should the discriminatory charges be allowed to stand: "They would
create significant barriers to new-entrant airlines wishing to
serve Los Angeles, and force the predominantly smaller and low-fare
Terminal 1 and 3 carriers to raise prices and/or curtail service to
offset the dramatically higher terminal costs. As a result, the
citizens of Los Angeles and other air travelers to the region will
ultimately be penalized by LAWA's new charges in the form of higher
airfares and reduced travel options." In the end, LAWA's massive
rent increases are likely to hurt the Los Angeles economy by
driving up fares at LAX and dampening air travel to the region. The
carriers attempted to negotiate with LAWA for more than a year
before the new charges were imposed and are not opposed to
reasonable, non-discriminatory and necessary cost-based increases
in terminal rates. LAWA is required to respond within 14 days to
the carriers' complaint. The DOT is expected to assign the matter
to an administrative law judge for a hearing, and the Secretary of
Transportation is required to issue a final decision in 120 days.
DATASOURCE: Alaska Airlines CONTACT: Caroline Boren,
+1-206-392-5101, for Alaska Airlines; or Joe Hodas,
+1-720-231-8145, for Frontier Airlines; or Whitney Eichinger,
+1-214-792-6604, for Southwest Airlines; or Andrea Rader,
+1-480-693-5729, for US Airways Web site: http://www.alaskaair.com/
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