Lincoln Airport Loses Nearly $52,000 in 'Rebuilding Year'

Director says the airport is on solid footing, however.

Lincoln Airport Director John Wood called the 2005-2006 fiscal year a "rebuilding year."

According to a yearly audit done by Lincoln accounting firm BKD LLP, the airport lost nearly $52,000 last year from direct operations after recording a $420,000 profit the year before.

Its loss, including indirect costs such as salaries, security and depreciation, grew nearly $1.5 million, from $3.1 million the previous year to $4.6 million. The airport's assets also declined nearly $2.4 million.

Wood said the airport is on solid footing, and he pointed to the fact that the Airport Authority decided, for the 20th year in a row, not to use its ability to levy property taxes.

"We're certainly solvent,"he said. Wood said most of the losses can be attributed to two things:struggling Northwest Airlines and a decline in use of its industrial park.

Wood said the airport had to write Northwest a check of nearly $900,000 to cover revenue guarantees from its failed Memphis service. The airport will get reimbursed by the federal government, but that money had not arrived by the end of the fiscal year on June 30.

Despite Northwest's woes - the airline also cut its Detroit service from three daily flights to one - the airport brought in more revenue from landing field and terminal fees last year than it did the previous year.

That wasn't the case, however, with the industrial park.

"One area that we've obviously seen less revenue â?¦ has been the industrial park,"Wood said

The park is still by far the largest generator of income for the airport, bringing in more than $3.5 million last year. But that was down nearly $250,000 from the previous year, as expenses rose more than $150,000.

Wood said he thinks things have bottomed out.

Several tenants have signed new leases, and the Airport Authority has begun construction of the first of its rail center buildings, which are state-of-the-art warehouses served by their own rail spurs.

Lincoln Composites already has signed a 10-year lease to occupy half of the building and plans to move in before the end of the year.

"I think it's the start of another upswing for us," Wood said.

As for air service, that will continue to be a challenge, he said.

Passenger numbers are down more than 2 percent so far this year, which is because of a 20 percent decline for Northwest.

United Express, the airport's other major carrier, has carried slightly more passengers this year. But that could change, as the airline recently announced a seasonal cutback of one departure to Denver and one arrival from Chicago.

The one bright spot for the airport has been Allegiant Air, which began twice-a-week service to Las Vegas in February.

That airline, which serves mostly leisure travelers by flying from smaller airports to Las Vegas, Orlando and beginning in November, St. Petersburg, Fla., had a very successful summer, Wood said.

"They left out of here with barely any empty seats," he said.

Wood said he's had some discussions with the airline about expanding and thinks they will expand if they "see an opportunity."

Allegiant spokeswoman Tyri Squyres said the airline is "happy with its presence in Lincoln" and has no expansion plans at this time.

Wood said Lincoln is always going to be at a disadvantage because of its proximity to Omaha.

"If Omaha were 30 or 40 miles more down the road, we'd probably have three more airlines," he said. "Let's face it, that's our issue."

Reach Matt Olberding at 473-2647 or .

ALLEGIANT ADDS DESTINATION

Allegiant Air, which offers flights from Lincoln to Las Vegas and also flies to Orlando, announced it will start flying to St. Petersburg, Fla., from 12 markets.

The airline will start service to St. Petersburg-Clearwater International Airport Nov. 16 from Allentown, Penn.; Rockford, Ill.; Peoria, Ill.; and Lansing, Mich; Nov. 17 from South Bend, Ind.; Dec. 12 from Toledo, Ohio and Dec. 13 from Springfield, Mo. and Stewart/Newburgh, N.Y.

The airline also plans St. Petersburg service to four other cities, which it has not yet announced.

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