U.S. airports scramble to pay for security costs NEW YORK (Reuters) =97 U.S. airports, already under financial stress due to= =20 declining passenger air travel, are grappling with another worry: how to=20 fund new security measures that could tally up to $5 billion. That's what=20 it could cost airports for capital improvements involving security that=20 aren't currently being paid for by the federal government, said Steve Van=20 Beek, senior vice president of the Airports Council International, North=20 America. New federal requirements that were mandatory by the beginning of=20 this year called for all luggage to be screened at the nation's 429=20 commercial airports. While the federal government is paying for the=20 screening machines, many of the nation's largest airports are hoping to=20 build new facilities to accommodate bulky Explosive Detection System (EDS)= =20 machines away from ticketing areas, to what is called "in-line" screening.= =20 Airports can screen bags using either the EDS machines, which are the size= =20 of a small van, or with scanning wands, which are slower and less practical= =20 at large airports, where lines can seem interminable. "Understandably, by=20 Dec. 31 we tried to jury-rig a process to get the screening done," Van Beek= =20 said. How much of the needed security improvements will be paid for by the= =20 federal government is still up in the air, industry sources said. "Some=20 airports may dip into reserves, some may seek assistance from cities or=20 states they reside in to help defray costs and some might have to borrow=20 money," said James Gilliland, an airport analyst at Fitch Ratings. TSA REVIEWING PROPOSALS CASE-BY-CASE The Transportation Security Administration (TSA), the new Department of=20 Transportation agency responsible for airport security, is reviewing=20 security funding proposals from airports on a case-by-case basis, said=20 Brian Doyle, a spokesman for the TSA. "We're well aware of the strain on=20 the aviation industry and airports in general," Doyle said. Airports are=20 hopeful the federal government will include a "letter of intent" program in= =20 next year's budget, which would allow airports to borrow money for security= =20 projects, backed by future federal fund disbursements. But the TSA hasn't=20 always received all the money promised by Congress in the past, Van Beek=20 said, and airports have been slow to get the funds. The TSA granted $30=20 million to Boston's Logan Airport, which decided to spend $146 million to=20 build new in-line facilities, even before it knew whether it would get=20 federal help, said Betsy Taylor, finance director for the Massachusetts=20 Port Authority, which operates Logan Airport. But Massport is waiting to=20 hear if more reimbursements will be coming. Revenues at the airport have=20 been squeezed since Sept. 11, 2001, with a 20 percent reduction in flights= =20 and additional $8 million yearly costs for state police. As a result, it laid off 15 percent of staff and cut 20 percent from=20 operations last year. On the capital side, Massport deferred about $245=20 million in projects for more gates and a new customs area at Logan.=20 "Obviously, if we can get sufficient grant money, we will reconsider=20 reinstating those," Taylor said. At Las Vegas McCarron Airport, a=20 long-range plan to spend $120 million on in-line screening facilities is on= =20 hold until the plan is approved by the TSA. "When they approve it, then=20 we'll figure out how we'll get the money," said R. Ross Johnson, the=20 airport's assistant director of aviation, responsible for finance. The=20 airport needs to install 40 or 50 of the EDS machines, but the=20 configuration of existing buildings can't really accommodate them, Johnson= =20 said. If the federal government doesn't come through with the money, the=20 airport would have to increase rates and charges to the airlines. "And this= =20 certainly is not the best of times to be increasing rates and charges to=20 airlines," Johnson said. Dave Swieringa, chief economist for the Air Transport Association, a trade= =20 organization for the airlines, said a current $2.50 charge tacked onto=20 tickets for security costs is paid by passengers, but ultimately the=20 airlines foot the bill. "The airlines have to add that to the price of=20 travel and consequently they either have to lower their share of the price= =20 or lose business..." he said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@escape.ca Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: www.pichemas.com TnT Webdirectory: http://search.co.tt *********************************************************