LOS ANGELES WORLD AIRPORTS STAFF UPDATES AIRPORT COMMISSIONERS ON LA/ONTARIO INTERNATIONAL AIRPORT AND REGIONALIZATION EFFORTS
New Los Angeles World Airports Director of External Affairs Celine Cordero Will Lead The Organization’s Regionalization Efforts
In the face of continued airline-industry shifts away from medium-hub airports, Los Angeles World Airports (LAWA) has appointed External Affairs Director Celine Cordero to lead a series of initiatives at LA/Ontario International Airport (ONT).
LAWA staff today briefed the Los Angeles Board of Airport Commissioners on the impact of the airline industry’s response to the economic recession. Cut backs in the number of flights and available seats, along with airline consolidation and their wholesale withdrawal from medium-hub airports, have shaped a new airline business model. For the immediate future, this model will continue to have negative impacts on regional airports like ONT.
In 2011, LAWA reduced ONT’s costs to airlines from $13.50 to $11.76 per enplaned passenger. However, cost reductions alone will not overcome the structural impacts of the national recession. Today’s board briefing outlined four additional steps that, under Cordero’s leadership, will explore ways to assist carriers and passengers at ONT in the face of continued airline withdrawals and reduced seat capacity from airports like ONT.
The impact of reductions in Passenger Facility Charges for departing passengers will be evaluated and presented to the Board. Terminal consolidation will be evaluated in an effort to increase passenger convenience, reduce costs and concentrate services where they are most needed. Staff will assess the feasibility of short-term landing fee or revenue-sharing incentives to generate new nonstop service. Given recent structural operating cost reductions, LAWA is using its contracted air service development resources to position ONT as a viable airport option, especially as the economy recovers.
In the meantime, between now and the end of 2014, Cordero will also coordinate LAWA’s scheduled distribution to the City of Ontario of more than $11,000,000 in Land Use Mitigation Program (LUMP) funding. Between 1991 and 2009, LAWA provided $42,000,000 in LUMP subsidies to the City of Ontario’s efforts to purchase properties within the airport’s current noise contours.
Today’s management report on LAWA’s regionalization efforts is available on the LAWA Internet website at: http://www.lawa.org/boacLAWA.aspx.
