LAWA APPROVES CONCESSIONS FOR RENTAL CARS AT LAX

(Los Angeles, CA - January 21, 2003) The Los Angeles Board of Airport Commissioners today approved five-year on-airport concessions for 10 rental car companies under a new comprehensive program at Los Angeles International Airport (LAX).

Los Angeles World Airports (LAWA), the City department that owns and operates LAX and three other airports, is making new concession agreements with on- and off-airport rental car operators. The Board's action Tuesday addressed on-airport operators at LAX. Under the new concept, the 10 concessionaires will be the only firms permitted to pickup and drop-off customers curbside at passenger terminals.

Eleven firms bid for the 10 places at LAX. After discussion the Board decided to consider permitting an eleventh firm an on-airport location at a later date. The Board accepted the bids of minimum annual guaranteed payments from: The Hertz Corp.; Avis Rent A Car System, Inc.; Alamo Rent-A-Car System, LLC.; Budget Rent A Car System, Inc.; National Car Rental System, Inc.; DTG Operations, Inc. (dba Dollar Rent A Car); Enterprise Rent-A-Car Co. of Los Angeles; Fox Rent A Car, Inc. (dba Fox Rent A Car and Payless Car Rental); T.C.R. LP (dba Thrifty Rent-A-Car) and Coast Leasing Corp. (dba Advantage Rent-A-Car).

Richard Janisse, deputy executive director for business development, said, "In a post-Sept. 11 environment, it is necessary at LAX to modify the rental car program to enhance safety and security, reduce congestion in the Central Terminal Area (CTA) and balance the budget at LAWA."

The current agreements with on-airport rental car operators expire January 31, 2003. LAWA's revenue from on-airport rental car operators is significant, with $32.2 million expected during the first year of the agreement. Revenue in each of the following years is anticipated, Janisse said, to increase due to additional fees being phased in that should generate $173.5 million in total revenue over the five-year term of the agreements.

LAWA's vision is to create a communications kiosk using interactive, state-of-the-art technology so customers can communicate with the rental car companies upon arrival at LAX.

Janisse added that the on-airport rental car operators would be required to support LAWA's program to cut traffic congestion in the CTA and toxic emissions. The program calls for these on-airport rental car operators to accomplish this goal by reducing the number of courtesy vehicle trips monthly by at least 20 percent.