Air Transport World

Bayshore bargains

Adele C. Schwartz

SAN FRANCISCO and OAKLAND - The San Francisco area airport managers may be an airline comptroller's best friends. Both San Francisco International and Metropolitan Oakland International are building new terminals and both are determined that the airlines' costs to operate in them will remain well below the national average.

To win the carriers' support for its $2.4 billion expansion, SFO pledged that the airlines together will pay no more than $125 million a year, in 1995 dollars, in landing fees and space rentals through fiscal 2000. This will produce a cost per enplaned passenger of about $6.75, compared with the present $3.85, Airport Director John L. Martin claims. The present U.S. average is $8-9 per enplaned passenger, he said. SFO's landing fee is $1.06 per 1,000 lb. of landed weight and Martin expects that to go up to $1.48 in 2000, when the new international terminal goes into service. Space rentals will increase from the present average of $35.77 per square foot per year to $39.71.

San Francisco - which does not have a passenger facility charge - will be able to do this because 'we have a money-making machine,' Martin said. 'Concessions will cover a very good share of the airport debt. We expect $30 million a year in income to the airport from duty-free alone,' a business that pays the airport $18.5 million annually.

Across the bay in Oakland, Director of Aviation Steven J. Grossman believes that 'part of our job is to help the airlines be successful. If they're successful, we're successful. We devote staff resources to ensure their operation works.'

The Port of Oakland virtually wrote the book on airport marketing more than 20 years ago, when it began using billboards, print and broadcast advertising, and phone information lines to help its airlines build traffic. 'We have a detailed marketing package to support airline service,' with staff specialists working with the carriers, Grossman explained. …

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