LOS ANGELES, ONTARIO AND VAN NUYS AIRPORTS TO RAISE PARKING RATES
(Los Angeles, California – January 8, 2002) The Los Angeles Board of Airport Commissioners today approved increases in the daily rates charged for parking at facilities located adjacent to the passenger terminals and at economy lots at Los Angeles International (LAX), Ontario International (ONT), and Van Nuys (VNY) Airports.
The board acted on the rate increase after considering a combination of several factors occurring at the three airports, including: higher security and operational costs for the parking lots, the need to reduce traffic congestion near the terminals, the need to encourage travelers to use alternative transportation, and the need to encourage travelers to switch usage from terminal lots to economy lots. The new airport parking rates will become effective February 15.
Los Angeles International Airport
The rates at LAX will increase in the Central Terminal Area (CTA) parking structures from the current $24 daily rate to $30 per day. The charge for the first hour will be $3 and then $2 for each additional 30 minutes until the $30 maximum daily rate is reached. Economy Lots B and C rates will increase from the current $5 and $7 daily, respectively, to $8 and $10 daily. The first two hours of parking will remain free at Lots B and C, and the charge after two hours will be $1 per hour until the maximum daily rate is reached.
Airport officials said Central Terminal Area rates were increased in October 2000, while parking rates at Lots B and C have been unchanged since 1989. One reason cited for the hike at LAX is that the high demand for CTA parking spaces creates a need for short-term parking instead of long-term parking. The higher daily rate, officials believe, will release more CTA spaces by encouraging travelers to arrive at LAX by alternative transportation or by encouraging the use of economy lots.
"Additionally, the cost of staffing and operating the CTA parking lots has increased substantially since Sept. 11," said Michael DiGirolamo, deputy director of operations. "It is now a federal requirement that each lot entrance be staffed with a security officer who checks vehicles entering the parking facilities. These costs, along with the cost of providing security inside the parking structure, are not expected to be recovered with the current parking rates."
The increases in Lots B and C will still keep those lots priced competitively with nearby, off-airport private parking lots, while permitting the recovery of higher costs to operate them. The increase in the Central Terminal Area parking structures puts the rate at par with parking at Burbank Airport.
Ontario International Airport
DiGirolamo said the objectives of restructuring ONT parking rates are to eliminate traffic congestion in front of the terminals and to encourage overnight customers to use the economy parking lots. The new rates provide differentiated pricing that better accommodates visitors in need of convenient hourly parking in front of the terminals at a reasonable charge.
Ontario’s rate changes affect Parking Lots 2, 3, and 4; the hourly fees in the Central Terminal Area lots; and Economy Parking Lots A, D, and F. Rates at Lots 2 and 4 will rise from $10 to $12 per day, with a rate of $1 per 30 minutes until the $12 daily maximum is reached. Rates at Lot 3 will rise from $7 daily to $9 daily, with a rate of $1 per 30 minutes until the $9 daily maximum is reached.
The rate in Ontario’s CTA hourly lots changes to $1 per 30 minutes. Users are charged $4 for a maximum stay of two hours. A $24 overtime assessment will be charged if autos are parked more than two hours.
DiGirolamo said officials are encouraging the use of Economy Lots A, D, and F by making the first three hours of parking free. The $6 daily rate remains unchanged at these lots. Also, Lot A remains closed since Sept. 11.
Van Nuys Airport FlyAway
With the present parking rate and bus fare structure, airport officials believe it will be unable to recover the cost of operating the FlyAway bus service during the coming year. The FlyAway serves 800,000 travelers annually, and it must be self-sustaining. An increase from the $2 per day parking charge to $4 daily will permit LAWA to recover the cost of operating the parking lot and the bus service.
The parking increases will help pay for additional operational and security costs. But officials are unable to actually estimate how much revenue the respective increases will raise due to the dramatic decline in airport parking usage. Landside Operations Manager Michael Biagi said LAX parking revenue has declined 40 percent since Sept. 11
"We expect this revenue trend to continue for another three to six months. It is difficult to forecast future parking revenues in this environment when we have had only two months of experience since the Central Terminal Area parking areas have reopened," Biagi said.
