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TIA Continues Expansion Plan As Passengers Decrease

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By JACOB SCHNEIDER

The Tampa Tribune

Published: August 8, 2008

TAMPA - Dramatic fare increases and flagging demand for travel may test Tampa International Airport in the year ahead, its director says, but the groundwork will continue for its largest expansion project in 40 years.
Airport director Louis Miller presented next year's budget to the board of the Hillsborough County Aviation Authority on Thursday, projecting a 9 percent drop in the number of seats that airlines fly in and out of TIA.

In the past year, the number of passengers flying through the airport dropped 2.6 percent; that number is expected to fall by another 1.8 percent next year.

As a result, the airport is projecting revenue to trail expectations by more than $6 million for the fiscal year ending Sept. 30.

The budget for the 2008-09 fiscal year, which begins Oct. 1, projects $189.3 million in total revenue, a slight increase over this year. However, that will be largely offset by a $4.8 million increase in operating expenses largely related to rising utility bills.

Miller insisted that the airport is well-equipped to deal with the industry's downturn and has contingency plans for the economic conditions created by up to a 7.5 percent drop in passengers through TIA. The airport has put $5 million of capital improvements on hold until January in hopes that the economic situation will improve.

In addition, airport employees will receive 2.5 percent cost-of-living wage increases but no merit raises, which Miller said was unfortunate but necessary.

Despite the slumping airline industry, TIA is pushing ahead with plans to build a second terminal in the next decade with negotiations in progress for a company to draft initial site designs. Last month, the authority chose New York firm William Nicholas Bodouva & Associates as its first choice for a $15.9 million contract to provide preliminary designs for a new North Terminal, which is expected to open in 2015.

In other business, the board approved a deal with CSX that will allow the railroad to continue to use and maintain a rail spur north of Hillsborough Avenue that is owned by the authority, though the agency retains the right to modify that contract should a regional rail link to the airport become possible.

The board also approved a 2.5 percent raise for Miller, which will bring his salary to $253,294 effective Aug. 1.

The meeting was attended by three of the board's five members. Tampa Mayor Pam Iorio was unavailable because she is planning the city's budget, according to board chairman Stephen Mitchell. County Commissioner Ken Hagan's absence was not explained.

Reporter Jacob Schneider can be reached at jschneider@tampatrib.com or (813) 259-7850.

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