LOS ANGELES WORLD AIRPORTS RESPONDS TO FEDERAL ARRESTS AT LAX, ONT

(Los Angeles, California -- August 23, 2002) Following is a Los Angeles World Airports (LAWA) response to an announcement today by the U.S. Attorney's Office of the arrests of several employees at four Southern California commercial airports, including Los Angeles International (LAX) and Ontario International Airports (ONT), which are owned and operated by LAWA:

Los Angeles World Airports understands that 47 workers at LAX have been charged (of which 31 have been arrested), and six workers at ONT were arrested by federal authorities. Most face charges of misusing Social Security numbers. We understand none were found to have links with terrorist organizations. The individuals involved worked for the airlines, their contractors or other private companies in a wide range of occupations, including ramp agents, aircraft mechanics and maintenance workers, private security providers, in-flight catering, and janitorial services.

These arrests are the result of an on-going investigation by a joint federal law enforcement agency task force, which reviewed badge applications at the two airports and private employer records of 39,150 workers at LAX and 2,112 workers at ONT.

Considering the huge volume of records reviewed as part of this investigation, the incidence of fraud is extremely low. In fact, the results at LAX and ONT are among the lowest of the major U.S. airports for which federal prosecutors have already announced results of those investigations. At LAX, the rate was 0.12 percent (one-tenth of one percent) and at ONT, 0.28 percent (less than three-tenths of one percent). From the standpoint of the traveling public, that should be reassuring. At the same time, LAWA officials strongly believe that one violation is one too many. We are committed to a zero-tolerance policy as part of our continued diligent efforts to ensure LAX and ONT are safe and secure.

LAWA officials believe that these numbers are low due to several factors:

• LAWA's voluntary program begun several years ago during which LAWA conducts random audits of employers' records to ensure compliance with airport security badge procedures. (One such voluntary audit conducted at LAX in March 2001 resulted in the revocation and deactivation of all 307 badges issued to employees of a private company that provided ground handling services to 15 airlines. That company no longer operates at LAX.)

   

• LAWA's establishment two years ago of a central clearinghouse for badging records whereby if a worker is terminated by one airport employer for a security violation, that information is made known to another prospective airport employer who may not know of this history.

   

• Federal regulation enacted December 22, 2000, requiring all airport badge applicants to undergo an airport-administered, criminal background fingerprint check. Prior to this regulation, airport badging officials relied on an "honor system" by which airport-wide employers certified that they completed federally required employment and criminal background checks of their employees.

Questions regarding the details of the investigation and law enforcement action, as well as the identities of the individuals, are being referred to Thom Mrozek of the U.S. Attorney's Office at (213) 894-6947.