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June 23, 2009
Airport Projects Delayed or Canceled
By LESLIE WAYNE
At the Cincinnati-Northern Kentucky International Airport, passengers are so scarce that a long-term parking lot will soon be turned into temporary housing for 900 horses attending equestrian games in the nearby bluegrass countryside.
It is an apt image — going from air power to horse power — for the troubles that airports are face these days: too few passengers, too few flights, too little revenue. And to deal with these setbacks they have come up with a solution: cut every capital project they can.
Terminals that were on the drawing boards are now off. Ditto for new gates, taxiways, roads and lights, as airport executives put a stop to billions of dollars in modernization projects that are now seen as unneeded and unaffordable.
That future may not be pretty. With passenger traffic down as much as 20 percent at some airports, the effects of these cuts are not expected to be felt immediately. But once the economy and air travel rebound, passengers may well go back to feeling miserable about the crowded terminals, outdated parking lots and far-away rental car sites.
Making matters worse is the reality that airport projects need a long lead time. It typically takes three to five years to build a new terminal, and 10 or more for a new runway. Projects shelved today probably cannot be built quickly when they’re needed in the future.
“There is a cost of doing nothing,” said Deborah McElroy, executive vice president for policy at the Airports Council International-North America. “It is in potential delays and inconvenience for passengers later on, and in increases in future operating costs.”
Many of the projects being cut, airport executives say, seemed feasible — and desirable — as recently as last year.
Two-thirds of all airport revenue comes from nonairline sources: rental payments from retail concessionaires, parking fees, car rental surcharges and facilities charges that are included in the ticket fees. All of these are falling.
http://www.nytimes.com/2009/06/23/bu...eraries&st=cse
It is an apt image — going from air power to horse power — for the troubles that airports are face these days: too few passengers, too few flights, too little revenue. And to deal with these setbacks they have come up with a solution: cut every capital project they can.
Terminals that were on the drawing boards are now off. Ditto for new gates, taxiways, roads and lights, as airport executives put a stop to billions of dollars in modernization projects that are now seen as unneeded and unaffordable.
That future may not be pretty. With passenger traffic down as much as 20 percent at some airports, the effects of these cuts are not expected to be felt immediately. But once the economy and air travel rebound, passengers may well go back to feeling miserable about the crowded terminals, outdated parking lots and far-away rental car sites.
Making matters worse is the reality that airport projects need a long lead time. It typically takes three to five years to build a new terminal, and 10 or more for a new runway. Projects shelved today probably cannot be built quickly when they’re needed in the future.
“There is a cost of doing nothing,” said Deborah McElroy, executive vice president for policy at the Airports Council International-North America. “It is in potential delays and inconvenience for passengers later on, and in increases in future operating costs.”
Many of the projects being cut, airport executives say, seemed feasible — and desirable — as recently as last year.
Two-thirds of all airport revenue comes from nonairline sources: rental payments from retail concessionaires, parking fees, car rental surcharges and facilities charges that are included in the ticket fees. All of these are falling.
http://www.nytimes.com/2009/06/23/bu...eraries&st=cse