LA Council Backs Higher Rents at LAX

Overriding pleas and threats from the airline industry, the Los Angeles City Council on Friday upheld a vote by its Airport Commission to impose higher operating fees at three LAX terminals.

In a decision the airlines say could cost them up to $45 million a year, the council decided to support the commission's efforts -- dating back three years in some cases -- to increase rents at Terminals 1, 3 and 6, as well as charges for maintenance and operation.

``Today we have an outdated airport,'' Airport Commissioner Walter Zifkin said. ``The electrical system, the water system, the sewer systems all need improvement. To do that, we need to show a cash flow and recover our costs.''

Councilman Bill Rosendahl, whose district includes Los Angeles International Airport, had asked for a review of the commission's action at the request of the airlines.

Assistant General Manager Patty Tubert said the Airport Department is seeking only to recover its costs and show it has the funds to finance a master plan and other improvements as part of a $4 billion LAX modernization.

``We have held more than 92 meetings with the airlines,'' Tubert said. ``We have gone to mediation. We are open to negotiate but we have to have some movement by the airlines.''

Airline representatives, however, disputed the need for additional revenue at the airport -- the nation's fourth-busiest -- and said they might file suit or appeal to the U.S. Department of Transportation.

``Each carrier will be pursuing their own course of action,'' attorney Robert Span said. ``It's just unfortunate it got to this point.''

United Airlines spokeswoman Melinda Yee Franklin said the dispute has fractured relations between the industry and the department, similar to a rift in the early 1990s with former Mayor Richard Riordan.

``We thought those battles of the past were behind us,'' Franklin said. ``Now, once again, we have an adversarial relationship.''

But Tubert said the city has been negotiating new leases with some airlines since 2001 and that the proposed increases are still below other cities' charges.

The new LAX fees will double airlines' per-passenger cost -- from $6 to $12.

Tubert said charges at JFK Airport in New York City range from $15 to $60 a passenger, while Miami charges $21 and San Francisco charges $15 per passenger.

Zifkin also defended the decision as a way to replace longer-term airline leases with five-year terms to give the city more control.

``We are open to future negotiations, but the commission believes the airlines just want to delay this only to delay it,'' Zifkin said.

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