Airline Officials Question Las Vegas Airport Expansion During These Troubled Times
Airline officials question whether the Las Vegas airport is expanding too quickly as struggling airlines cut flights to the destination running short on tourists.
“There is clearly not a current need for increased capacity,” said Linda Macey, properties manager for Southwest Airlines.
Southwest, which accounts for roughly 35 percent of the air passengers to and from Las Vegas, has scrapped a plan to increase its daily flights from 240 to 350 at the airport, Macey said.
Passenger traffic is down 4.8 percent in 2008 compared to 2007, as tourists avoid Las Vegas during tough economic times. Airlines project that next year, there will be 12 percent to 15 percent fewer seats available on Las Vegas flights.
But county officials, airport officials and others believe McCarran International Airport should continue to expand so it can handle more passengers.
A $2.4 billion new international terminal is expected to open in 2012, giving the airport enough infrastructure to support 53 million passengers each year.
“We are evaluating our flight schedules at Las Vegas and throughout the country on a daily basis right now,” she said. “With the uncertainty of fuel prices and the economy right now, it is certainly fluctuating a lot more frequently than it had in the past.”
Southwest has kept expenses flat through fuel hedges, which allowed it to buy fuel years in advance. But the deal is set to expire by 2012 and make Southwest subject to market prices for fuel.
Southwest and others are questioning the pace of expansion as the Las Vegas economy slows and airlines struggle. Airport expansions would largely be paid for by airline fees.
In July, Macey urged the Clark County Commission to cancel or delay every airport upgrade not justified by current needs.
In addition to the new terminal, projects include a new pedestrian bridge, new gates and a new heliport in Jean that will benefit helicopter tour operators.
“We do not feel that we should be delaying any of this whatsoever,” said Rosemary Vassiliadis, deputy director of McCarran International Airport.
Airport and elected officials say the airport should anticipate for a recovering economy and be immediately able to accommodate larger crowds.
Source: AP
Karen
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