LAX seeks control over terminals
Jan 9, 2007 | 4:40 pm
#1
Original Poster
Join Date: Oct 2005
Location: SoCal
Programs: AA, USAir, UA
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LAX seeks control over terminals
Hoping to increase capacity and lower fares, the city's Airport Commission will consider as early as today spending up to $154 million to take over several terminals at Los Angeles International Airport so it can offer more airplane parking spots to low-cost carriers.
For years, airlines such as Southwest have vied for more gates at LAX. But five carriers, under long-term leases, control a majority of airplane parking places at the aging facility, leaving the city's airport agency unable to accommodate multiple requests by other airlines to add flights. More than 60 passenger airlines currently offer service at LAX.
To receive those long-term leases, airlines used bonds to finance improvements to most terminals. The terms of the leases, airport officials say, allow the airport agency to take control of the terminals if it buys back the bonds. The agency is proposing that it pay the balance on the bonds for Terminals 2 and 5.
"I do believe it will increase competition at the airport and produce immediate gains in nonstop service and, particularly where new service is by low-cost airlines, produce lower fares for Los Angeles-area consumers," said Samson Mengistu, deputy executive director for administration and finance at the city's airport agency.
Los Angeles World Airports, the city agency that operates LAX, said in reports to the commission that it would use cash and credit to repay the bonds.
For years, airlines such as Southwest have vied for more gates at LAX. But five carriers, under long-term leases, control a majority of airplane parking places at the aging facility, leaving the city's airport agency unable to accommodate multiple requests by other airlines to add flights. More than 60 passenger airlines currently offer service at LAX.
To receive those long-term leases, airlines used bonds to finance improvements to most terminals. The terms of the leases, airport officials say, allow the airport agency to take control of the terminals if it buys back the bonds. The agency is proposing that it pay the balance on the bonds for Terminals 2 and 5.
"I do believe it will increase competition at the airport and produce immediate gains in nonstop service and, particularly where new service is by low-cost airlines, produce lower fares for Los Angeles-area consumers," said Samson Mengistu, deputy executive director for administration and finance at the city's airport agency.
Los Angeles World Airports, the city agency that operates LAX, said in reports to the commission that it would use cash and credit to repay the bonds.
http://www.latimes.com/news/local/la...tory?track=rss
The biggest squawks are apt to come from Delta at terminal 5, although Northwest in terminal 2 is apt to be none too pleased either. Frankly, the biggest suprise I had was that there was no mention of terminals 6-7-8 that are dominated by United. Do they really use all that space?
Jan 9, 2007 | 4:46 pm
#2
Join Date: Mar 2004
Location: LA, after growing up in London and living all over Europe
Programs: Ex-BD, ex-NW, ex-AA, BA Gold
Posts: 1,459
Terminal 5 is so disorganised that it seems to be above capacity already, with security lines spilling onto the sidewalks every night. T2, on the other hand, is a haven of calm by comparison. I'll be disappointed if my current timing of 10 minutes from kerb to WorldClubs lounge is slowed down.
Jan 10, 2007 | 9:31 am
#3
Join Date: Aug 2005
Location: Long Beach, CA
Posts: 139
Read the rest of the article here:
http://www.latimes.com/news/local/la...tory?track=rss
The biggest squawks are apt to come from Delta at terminal 5, although Northwest in terminal 2 is apt to be none too pleased either. Frankly, the biggest suprise I had was that there was no mention of terminals 6-7-8 that are dominated by United. Do they really use all that space?
http://www.latimes.com/news/local/la...tory?track=rss
The biggest squawks are apt to come from Delta at terminal 5, although Northwest in terminal 2 is apt to be none too pleased either. Frankly, the biggest suprise I had was that there was no mention of terminals 6-7-8 that are dominated by United. Do they really use all that space?
Jan 19, 2007 | 10:06 pm
#4
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Join Date: Oct 2001
Location: check swarm
Programs: DL DM & 2MM, AS Gold, SPG LT Titanium, Hyatt Globalist, Cava Sun member
Posts: 14,439
maybe NW could bargin for funds to remodel the WC in exchange for giving up their part ownership of T2, which is quickly becoming a dump. There are toilets in the men's room that have had plactic bags over them for years.
Jan 21, 2007 | 11:15 am
#6
Join Date: Aug 2005
Location: Long Beach, CA
Posts: 139
BTW, I did some math using Innovata schedule data for a random day last week and found that T1 averages 9.4 departures per gate per day while T5 averages 4.5 departures per gate per day. My blog post with all the info is here.