European Stars and Stripes (Newspaper) - September 11, 1989, Darmstadt, Hesse                                Going gets bumpy at airports  new York times n the world of american air travel where airlines and passengers Are still buffeted by the effects of deregulation 10 years ago a new Battle is looming the Light for control of u s airports. On one Side is us air carriers. Through a series of Long term leases for Airport Gates they have gained powerful control Over the airports where they land airlines say this is a Victory for passengers and the free Market. But critics say the carriers Are using this Power to stifle Competition maintain High Lares and Block Airport expansion. The other Side consists of the airports themselves. These quasi governmental agencies with local roots Are looking for new ways to finance the Airport expansion needed to keep Pace with surging air traffic. They argue that they need an Independent source of funds to break the stranglehold of the carriers and ensure Competition. The Battle is being fought at airports across the United slates but it is coming to a head in Washington where a Senate hearing on airline concentration is scheduled this month and where Airport operators Are lobbying for the Power to charge passenger fees. Congress banned such fees in 1973 after City governments began to divert these funds irom the airports and use them to keep real estate taxes Down. Now. Airport operators want these fees Back and Promise they will be earmarked for aviation projects under their control. This is a top priority for airports across the country said Robert r. Wigington. A lobbyist for the Airport Trade group the Airport operators Council International the simple fact of me for airports is that in Many cases More than 50 percent of their income comes from the payments airlines make to lease Landing rights cargo areas and Gates. These payments generally account for 3 percent to 4 percent of a Carrier s operating costs. Many of these leases also give dominant carriers the Power to veto any Large Airport project before the Money is spent. And while airlines in general support efforts to add to Airport capacity in Many instances individual carriers Are reluctant to help pay for projects that could allow a new entrant to Challenge the dominant airline s Market share at an Airport. Airports say the Money irom a passenger Lee would help them keep Pace with the huge growth in the number of air travellers. A Normal Day 10 years from now will be As Busy As a thanksgiving weekend now. Aviation experts say but voters in Denver have approved a plan to replace overcrowded Stapleton International Airport. Only two new airports Are on the drawing boards in Denver and Austin Texas. As airports attempt to expand conflicts Are erupting across the country. In Denver voters have overwhelmingly approved a plan 6 tear Down Stapleton International Airport and replace it with a new $3 billion Landing site which would be the world s largest. Construction will begin in september on what will be the first big Airport to be built in the United states since Dallas fort Worth opened in 1974. The new Airport will be paid for by fees from airlines parking concessions and retail stores along with some $500 million being sought from the Federal government. Continental airlines and United airlines which together carry almost All the traffic to Stapleton have argued that it is not Worth the Money to build new capacity in a Market where passenger traffic has dropped by about 18.000 a Day in the past year because of Denver s crippled Economy. In fact the airlines have so Many objections to the financing plan they have made it Clear that if they had total control there would be no new Denver Airport. But the Federal aviation administration removed the last hurdle to construction in August when it rejected environmental objections and cleared the Way for construction to begin sept. 25 the new Airport will Cost Denver air travellers millions in raised ticket prices say the airlines our Airport charges would go from $30 million a year to $100 million a year and we would be faced with recovering that Cost said Richard b. Hirst general counsel of Continental airlines. But Richard Boulware a spokesman for Stapleton contends that additional Gates would bring More Competition and lower fares. He said that because of the airline concentration fares to Denver have gone up dramatically in the last three years. A new $565 million terminal with 75 Gates is being planned for the greater Pittsburgh International Airport. But us air which has 285 Jet departures from Pittsburgh has pushed through plans to tear Down the old terminal rather than lease its 35 Gates to rival airlines. Us air has signed a 30-year tease for 50 of the new Gates. Including Landing fees it will be paying More than $30 million a year to the Airport said Gerald Depoy the us air vice president in charge of Airport leases. This Money will be used to pay the debt service on the Bonds issued by Allegheny county to finance the new terminal. A spokesman for the Airport . Boyle said us air told the county that in effect it did not want to subsidize a competing Carrier by allowing the old terminal to offer Cut rate leases to rivals. They were going to pay for it he said so we had to accept their  unless it can find another use for the terminal that does not threaten us air the Airport has agreed to tear Down the old terminal. Operators of Lambert International Airport in St. Louis mo., would like to expand using the added flexibility they say a passenger fee would bring. Now no Money can be spent for a new runway for instance without approval of trans world airlines which carries 82 percent of the passenger traffic in and out of St. Louis. Donald w. Bennell the Airport s administrator said that at this Point it would be almost impossible for another airline to get Gate space to compete with Twa in St. Louis. I do not have the Gale capacity he said adding that on any Day he might have two or three Gates available and Only on a shared basis. Airline officials say a minimum of five Gates is needed to offer a competitive level of service to a new City. A Twa spokesman said the company would have no comment on the passenger fee proposal. Before 1979, air travel was closely regulated by the Federal civil aeronautics Board and partnerships Between airlines and airports for the most part ran smoothly. Long term restrictive leases covering Landing Lees and terminal Gates helped soothe the worries of Bond buyers who financed expensive terminals. To protect air carriers and bondholders against extravagant Airport projects most leases had clauses giving carriers with More than 51 percent of the flights a veto Over Airport expansion. But under deregulation airports have become increasingly dominated by single carriers that have concentrated operations at Airport hubs where passengers flying routes irom other cities make connections. Little room is left at the Large airports which now handle four of every five passengers. To permit the incumbent airlines to veto capital expansion is really insufferable said Alfred Kahn the Cornell University economist who pushed through deregulation As head of the civil aeronautics Board. Top ten american Alrina Domestic Market Shar St Monett 10 Jufim 30.1969 icon Varnom lot b3 m to 4.91% a us air. Piedmont 3.63% 337%. \ i Noni weit 11-m ,.&.,.j 9.91% ,5.4, Usa  on August 5 the busiest airports get busier total Pming to i Airport. In Munnt. _j1987 a 1979 a Nei deregulated t Ember 11,1989 the stars and stripes Page 15