Issue Date: 11/13/2001
Contact: Nancy Suey Castles

BOARD OF AIRPORT COMMISSIONERS APPROVES COLLECTION OF CUSTOMER FACILITY CHARGE FROM ON-AIRPORT RENTAL CAR COMPANIES TO COMPLY WITH CALIFORNIA ASSEMBLY BILL 491

(Los Angeles, California -- November 13, 2001) The Los Angeles Board of Airport Commissioners today approved the collection of a state-authorized Customer Facility Charge from rental car agencies serving Los Angeles International (LAX) and Ontario International (ONT) Airports. The action was taken in accordance with Assembly Bill (AB) 491, which allows airports in California to collect fees for the development of consolidated rental car facilities or consolidated ground transportation for airport rental car concessionaires. The bill is effective January 1, 2002.

The bill authorizes a $10 Customer Facility Charge per on-airport rental car agency transaction to fund both the development of a consolidated car rental facility and a common-use transportation system.

ONT operates a Ground Transportation Center that consolidates on-airport car rental agencies into one location and provides a free shuttle bus to and from the passenger terminals. At ONT, the consolidated Ground Transportation Center was constructed and opened on January 5, 1999, financed primarily through revenue bonds.

At LAX, a Ground Transportation Center would alleviate traffic congestion in and around the Central Terminal Area and mitigate vehicular air emissions. The $10 per Customer Facility Charge at LAX will be collected and placed in a trust for the future financing, design, construction, and operation of such a Ground Transportation Center and common-use transportation system.

The law requires that fees imposed on customers of off-airport car rental companies who are transported on a common-use transportation system shall be proportionate to their participation in the common-use transportation system. LAWA officials plan to develop a program to charge CFCs to customers of off-airport car rental agencies.

"Collecting Customer Facility Charges from rental car customers who use airport services will ultimately assist Los Angeles World Airports in its efforts toward reducing traffic congestion and vehicular air emissions, while providing an efficient, secure, safe, and reliable transportation system at both LAX and ONT," said Richard Janisse, Los Angeles World Airports deputy executive director of properties and concessions.

LAX currently has concession agreements with eight on-airport car rental companies, who use large buses to pick up their customers. The current agreements will expire on January 31, 2003. All future rental car concessionaires will be required to use LAX's Ground Transportation Center and common-use transportation system.

ONT currently has rental car concession agreements with six on-airport operators.

LAWA officials estimate that LAX could annually collect approximately $23.8 million and ONT could collect $4.2 million based on the number of on-airport car rental company transactions.