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I have absolutely no problems with airports such as Dulles getting this type of assistance. BUT, let's be fair about it. A subsidy is a subsidy. Those who charge that Amtrak is subsidized while the airlines are not are making patently false claims.
What is good for the Goose must be good for the Gander. Either we have public road, rail and airways, or we privatize *all* of it, not just Amtrak. Level the playing field is all I'm saying.
And it is always curious to me how some public and private officials will refer to public expenditures for airlines and highways as an "investment" while public spending for Amtrak is so often referred to as a "subsidy."
July 8, 2002
US Airways is seeking the federal government to back $900 million of a $1 billion loan. US Airways lost a record $2.1 billion last year and shortfalls for the entire U.S. airline industry are continuing well into 2002 as traffic remains below year-ago levels. US Airways has repeatedly warned that if it could not cut enough fat to win approval of the petition for loan guarantees, it might have to file for bankruptcy. UAL Corp.'s United Airlines is also seeking federal loan guarantees totaling $1.8 billion, double that sought by US Airways. America West Airlines was granted a $380 million loan guarantee from the federal government back in December.
Besides the loan program, Congress also provided $5 billion in grants for the airline industry. Most of that money has been distributed.
List of Airlines Seeking Loans
Sat Jun 29, 2002 2:45 AM ET
By The Associated Press
Thirteen airlines have asked the Air Transportation Stabilization Board for federal loan guarantees under the $10 billion program established following the Sept. 11 terrorist attacks. Two applications have been rejected and one has been approved.
The airlines are:
_Aloha Airlines, applied Thursday, June 27.
_American Trans Air, applied June 13.
_America West, applied Nov. 13 and approved Jan. 18.
_Evergreen International Airlines, applied Feb. 25.
_Frontier Airlines, applied Friday.
_Frontier Flying Service, applied Jan. 29 and rejected May 31.
_Great Plains Airlines, applied Thursday.
_National Airlines, applied May 3.
_Spirit Airlines, applied March 28.
_Vanguard Airlines, applied Dec. 19 and rejected May 28.
_United Airlines, applied Monday.
_US Airways, applied June 7.
_World Airways, applied Friday, June 28
The board that rules on the loan applications consists of representatives of Transportation Secretary Norman Y. Mineta, Federal Reserve Board Chairman Alan Greenspan and Treasury Secretary Paul O'Neill. Comptroller General David Walker is a nonvoting member.
Source: Air Transportation Stabilization Board
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."
LAWA Executive Director Lydia H. Kennard said, "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 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."
SOURCE: Los Angeles World Airports
GAO REPORT ON AIRPORT INFRASTRUCTURE -- Tuesday, March 5, 2002.
A GAO (Government Accounting Office) report released Monday projects that 14 airports likely to service Airbus superjumbo jet by 2010 must pay nearly $2.1 billion to upgrade infrastructure, such as runways, taxiways and terminals. The A380, due to enter service in 2006, boasts a wingspan 48-feet wider than rival Boeing's 747 and a capacity to haul about 150 more passengers.
The GAO report included a stinging rebuttal from Airbus Deputy VP Didier Puyplat, who argued airports must pay only about $520 million to complete A380-related improvements.
Here's how much each expects to pay for infrastructure improvements, as reported by the GAO: Los Angeles, $1.2 billion; O'Hare (Chicago-ORD), $232 million; John F. Kennedy (New York-JFK), $109 million; Ted Stevens (Anchorage-ANC), $106 million; San Francisco (SFO), $76 million; Dallas/Fort Worth (DFW), $73 million; Indianapolis (IND), $66 million; Washington-Dulles (IAD), $64 million; Memphis (MEM), $36 million; Hartsfield (Atlanta-ATL), $26 million; George Bush (Houston-IAH), $23 million; Orlando (MCO), $18.8 million; Miami (MIA), $18.3 million; Denver (DEN), $16 million.
The Airport Authorities and the Airlines will tell you that they will pay for these upgrades through user fees. But that money has to be fronted and if so, it will be done with more tax-free bonds that, while paying lower interest, are more stable/credible/"safe" because they are backed by the government. These bonds, of course, reduce the "bonding authority" of the entity that issues them.
"DELTA DOWNTOWN"
"Delta Airlines last week [late-June, 2001] opened the only downtown reservation center in its network - a $17.3 million, 59,602-sq.-ft. facility in Cincinnati. The facility represents the carrier's commitment to Cincinnati and its hub at the Cincinnati/Northern Kentucky International Airport, according to officials. The city provided tax breaks valued at $250,000 a year and the state of Ohio granted a $3-million loan at low interest rates to cover construction costs."
Source: page 23 in Aviation Week and Space Technology for July 2, 2001.
AUTO subsidy:
This one is NOT an airline subsidy but, instead, our beloved auto industry subsidy...just as noteworthy in my opinion.
August 9, 2000...Maryland Gov. Parris N. Glendening has announced a $1.3 billion expansion initiative to address record passenger traffic at Baltimore-Washington International Airport (BWI). State officials said they would raise $120 million from the fees added to car rentals. An additional $530 million would come from the state's transportation trust fund, and $50 million would come from federal grants.
June 27, 2000...The U.S. federal government said on Monday, June 26, that it will equip 25 medium-sized airports with a new ground surveillance system to help curb the rapid rise of near-misses on runways. The system is designed to alert air traffic controllers to impending collisions. At issue are incidents in which an aircraft landing or takeoff comes too close, as defined by the FAA, to another aircraft or vehicle. The airports due to get the technology in California are Burbank/Glendale/Pasadena, Oakland (Metropolitan), Ontario, Orange County Airport (John Wayne), Sacramento, and San Jose. The others are Phoenix, Arizona; Colorado Springs, Colorado; Windsor Locks (Bradley International Airport), Connecticut; Tampa, Ft. Lauderdale and Orlando, in Florida; Honolulu, Hawaii; Chicago Midway, Illinois; Indianapolis, Indiana; Reno, Nevada; Albuquerque, New Mexico; Raleigh-Durham, North Carolina; Columbus, Ohio; San Juan, Puerto Rico; Providence, Rhode Island; Austin, Houston (Hobby) and San Antonio, in Texas; and Milwaukee, Wisconsin.
June 22, 2000 ...As the Senate kills any attempt to allow states to use federal transportation dollars for intercity rail service here is yet more evidence of public subsidy for private airlines. Reuters news service is reporting that The Massachusetts Port Authority is considering issuing two separate bonds for Delta Air Lines Inc. and American Airlines for terminal construction at Boston's Logan International Airport. The Delta deal would come to just under $400 million while another $300 million is estimated for American. That's nearly $700 million in public subsidy for just two airlines for expansion at just one airport. That is approximately $179 million more than what the Senate has just approved for the entire Amtrak system of intercity passenger rail service!
June 1, 2000...United Airlines, the world's No. 1 carrier, will construct its largest regional aircraft terminal at Denver International Airport, The concourse extension project -- the largest dedicated United Express facility project ever undertaken by United -- will cost up to $100 million. United's proposal will require the approval of the Denver City Council and the company's board. To finance the project, The Denver airport will issue general revenue bonds and then lease the new area to United, as is the case with most airport construction projects.
May 28, 2000....Kansas City, Mo., voters will be asked Aug. 8 to approve up to $395 million of bonds to finance airport projects over the next five years, according to an airport official. $110 million of the bonds would be used to upgrade a maintenance facility for Trans World Airlines Inc.
The rest of the bond proceeds would finance a central car rental facility, new long-term parking and a light-rail system to link parking, car rental and terminal facilities. The last time voters were asked to approve airport bonds was in 1988 when $330 million of bonds were authorized.
