LOS ANGELES BOARD OF AIRPORT COMMISSIONERS AUTHORIZES POTENTIAL PURCHASE OF FORMER SR TECHNICS FACILITY AT PALMDALE AIRPORT

(Los Angeles, California - Feb. 18, 2003) The Los Angeles Board of Airport Commissioners (BOAC) today approved in concept the purchase of the former SR Technics America, Inc. aircraft maintenance and modification facility at Palmdale Regional Airport (PMD).

Meeting at Van Nuys Airport, the commissioners authorized airport management to negotiate a purchase agreement with SRTP Liquidation, Inc., which currently owns the facility, for not-to-exceed $3 million plus closing costs. The final agreement would be subject to approval by the Board.

Los Angeles Mayor James K. Hahn praised the Board's action as further promoting development of PMD through the recruitment of an international maintenance, repair and overhaul (MRO) facility serving commercial and/or military transport aircraft. "The action also will promote job growth in the region and help achieve my goal of bringing commercial airline service to the Antelope Valley," Hahn said.

The facility, located in Palmdale's Business Enterprise Zone, contains about 1 million square feet of space, including two high bay hangars, administration and classroom buildings, a recreation and health center with ball fields and a park, an aircraft ramp area, large fueling system and parking for 2,000 cars. The site is also located adjacent to United States Air Force Plant 42 and has taxiway access to existing runways.

In the aftermath of September 11 and the general downturn in the airline business, SR Technics' parent company, Swiss Air, declared bankruptcy, forcing the maintenance company to also make plans to close its doors by the end of February 2003.

In agreeing to acquire the takeover of the facility, the commissioners noted historical data that indicates that the current downturn in U.S. and worldwide air traffic volume tends to be cyclical. By taking over the lease, LAWA will be well positioned for an above average return on investment when the airline industry begins its recovery, which has been predicted for sometime in 2004.

PMD is one of four airports owned and operated by Los Angeles World Airports, a self-supporting department of the City of Los Angeles governed by a seven-member Board of Airport Commissioners. The other LAWA airports are Los Angeles International, Ontario International and Van Nuys.