L.A. WORLD AIRPORTS TO RECEIVE $46.2 MILLION IN FEDERAL FUNDS FOR SEPT. 11 SECURITY COSTS, TAXIWAY IMPROVEMENTS

(Los Angeles, California -- May 7, 2002) The Los Angeles Board of Airport Commissioners today authorized Los Angeles World Airports (LAWA) to accept federal grants totaling $46,246,764. The grants cover partial reimbursements for security costs incurred at Los Angeles International Airport (LAX) and Ontario International Airport (ONT) for implementing new security measures between Sept. 11, 2001, and January 18, 2002, and for construction improvements to an airfield taxiway over Sepulveda Boulevard near LAX.

LAX will receive $5,763,335 and ONT $572,930 for security-related costs, and LAX will receive $39,910,500 in Airport Improvement Program funds for completing a realignment of Taxiway C to improve safety and efficiency of aircraft and vehicles.

"I am pleased that LAX and ONT will receive an important financial boost through the release of supplemental federal Airport Improvement Program funding, in accordance with Los Angeles Mayor James K. Hahn's directive," said LAWA Executive Director Lydia H. Kennard. "We appreciate U.S. Secretary of Transportation Norman Mineta’s assistance in helping our international air gateways meet the added costs of new federally mandated security measures, as well as airfield safety improvements."

The security-related reimbursements, provided from the U.S. Department of Defense’s 2002 appropriations act, will help the two Los Angeles City-owned airports defray costs associated with additional law enforcement personnel, airport surveillance and the revalidation of all airport-issued and approved identification. The funds are part of a total $175 million in supplemental funds granted through the U.S. Department of Transportation to 317 eligible airports that have regularly scheduled passenger service and that have a federally certified airport security program.

While ONT was eligible to apply for and receive federal funds, LAX only became eligible to receive the funds after Mayor Hahn directed the airport staff and the Los Angeles Board of Airport Commissioners to apply for federal airport aid as a source of additional funding. In recent years, City policy precluded LAX from receiving certain types of federal airport aid. This policy was reversed by Mayor Hahn in a letter to the LAWA staff and the Board on January 17, 2002.

LAWA's applications for ONT and LAX were for $1,554,339 and $11,334,147 million, respectively. However, the Federal Aviation Administration determined that smaller airports should be fully reimbursed because they suffered the greatest impacts and medium and large airports with more than 1.7 million annual passenger enplanements had a greater capacity to absorb the additional security costs.

The Taxiway C project included an aircraft taxiway bridge, taxiway paving, related airfield lighting system, storm drains, relocation of an airfield access security post, and modification of a tunnel ventilation building, fire station, and an airline maintenance facility. The total project cost was $53,214,000, with the AIP federal grants covering 75 percent of the costs and passenger facility charges the remaining 25 percent.