TBO.com - TBO is Tampa Bay Online

TIA Aims To Keep Airlines' Costs Low

ADVERTISEMENT

By TED JACKOVICS

The Tampa Tribune

Published: September 3, 2008

TAMPA - Tampa International and other airports are taking steps to moderate the fees they charge airlines in the coming months as carriers struggle with high fuel costs and consider additional schedule and route cuts.
Tampa International Airport has proposed a $1.8 million supplemental contribution to its $9.1 million airline revenue-sharing plan for the fiscal year beginning Oct. 1, the airport's proposed budget for 2008-09 shows.

That would result in Tampa International charging airlines $41.6 million, or $4.52 per departing passenger, compared with a national average of $7.50 to $8.

Keeping airline costs relatively low has long been a key component of Tampa International's strategy to recruit and retain carriers.

Other airports, including Minneapolis; San Jose, Calif.; and Norfolk, Va., also are focusing on incentives to retain air service, an official with the Airports Council International-North America said Tuesday.

"As airlines cut service in the next four months, airports are concerned that passengers will face higher ticket prices and less choice for holiday travel," said Eileen Denne, ACI's senior vice president for communications and marketing.

The Washington-based trade group took an informal survey of members in early August and found that the incentives they planned to offer were similar to what many already provided to enhance marketing air service to their communities, Denne said.

Unlike some airports, Tampa International does not use direct incentives to encourage carriers to provide service to targeted destinations. It relies instead on passenger demand to influence airlines to expand service.

But Tampa International has maintained an aggressive stance in keeping airline costs low. Costs per passenger have ranged from $4.70 in fiscal 1996-97 to a low of $3.92 in fiscal 1999-2000 and $4.37 this year.

The airport plans to derive 76.7 percent of the $136.8 million net revenue next year from nonairline revenue sources, such as parking fees and concession leases.

The Hillsborough County Aviation Authority will consider the fiscal 2008-09 budget at its 8 a.m. meeting Thursday at Tampa International.

Reporter Ted Jackovics can be reached at tjackovics@tampatrib.com or (813) 259-7817.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT