Columbus OKs $3M in Cost Overruns for New Skybus Concourse

The board also updated a program to reward carriers for new nonstop service to top destinations from Port Columbus.

Skybus Airlines stands to benefit from two resolutions adopted yesterday by the board of the Columbus Regional Airport Authority.

The board approved $3.1 million in cost overruns for improvements to the concourse that will house Skybus at Port Columbus, as well as an update to a program that rewards carriers for new nonstop service to top destinations from Port Columbus.

Work on Concourse B in late 2006 through March was done on an "unprecedented" schedule to meet Skybus' original estimate that it would begin flying in March, according to Angela Newland, airport authority vice president of planning and engineering.

Newland said the original design and construction budget of $8.4 million was based on sketches because the final design plans had not been finished.

"Normally, you would have a set of design plans that were completed and the contractor would base their costs on those," Newland said. "In this particular case, the design plans were not actually finalized until the middle of January."

The airport authority wasn't made aware of the cost increases until mid-February.

The board approved the additional money yesterday, weeks after most of the work was finished.

Rod Borden, the board's senior vice president and chief operating officer, said board approval should have been secured before the work was done.

"We have looked at the work that gave rise to the changes," Borden told the board. "I think the staff agrees the work needed to be done and would have been done, but clearly we had an issue on process here. We are absolutely committed to ensuring that that won't happen again."

The board also approved changes to an airport incentive program that waives some fees and offers money toward marketing new nonstop routes. Current "target markets" under the program include Seattle, San Francisco, San Diego and West Palm Beach.

Skybus could benefit from a change that adds the same incentives for "emerging" target markets. Any market that reaches 50 or more passengers per day within the first four quarters of service will qualify for incentives. The program is open to any airline.

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