LAWA INVITES BIDDERS FOR RENTAL CAR CONCESSIONS AT LAX

(Los Angeles, CA - November 13, 2002) The Los Angeles Board of Airport Commissioners approved a concept for a new comprehensive rental car operators program at Los Angeles International Airport (LAX) and invited bids for the program's 10 on-airport rental car concessions available for a five-year term.

Los Angeles World Airports (LAWA), the City department that owns and operates LAX and three other airports, will enter into new concession agreements with on- and off-airport rental car operators. Under the new concept, the 10 successful bidders LAWA selects for on-airport rental car operations will be permitted to pickup and drop-off customers curbside at passenger terminals. Off-airport rental car operators will have their customers served by a common LAX-operated courtesy bus. The off-airport rental car operators' courtesy vehicles will pick-up an drop-off their customers at Parking Lot C, where they will transfer to an LAX shuttle bus for transport to the passenger terminals.

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 five-year agreements with on-airport rental car operators expire January 2003. LAWA's revenue from on-airport rental car operators is currently about $33 million annually.

Janisse said the new on-airport concession agreements contain new provisions not included in the expiring agreements. These include LAWA's right to build a consolidated rental car facility at a future date, as well as the right to impose a common transportation system to the passenger terminals to serve all rental car operators' customers.

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.

The board also approved changes to compensation paid to LAWA by off-airport rental car operators in the license agreements at Los Angeles and Ontario International Airports. Off-airport rental car operators will be required to execute new licenses conforming to LAWA's new operational requirements valid for up to three years.