Washington-area airports recovering after nearly two years of adversity

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Washington-area airports recovering after nearly two years of adversity

ARLINGTON, Va. (AP) ? It's hard to imagine a more turbulent 20 months for
the two airports that serve metropolitan Washington. The jet that hit the
Pentagon on Sept. 11, 2001, took off from Washington Dulles International
Airport. The aftermath of the attacks shut down Ronald Reagan Washington
National Airport for more than a month while bureaucrats pondered whether
it should close permanently. Not long after Reagan National reopened, its
largest carrier, US Airways, filed for bankruptcy. Increased security
requirements drove operating costs higher by millions of dollars a year.
Then, the largest carrier at Dulles, United Airlines, filed for bankruptcy,
prompting concerns about the its future there. The war with Iraq further
destabilized the industry, particularly the international flights that are
a staple at Dulles. Finally, the airports' well-respected leader ? in fact,
the only director the Metropolitan Washington Airports Authority ever had ?
announced he is retiring, effective Friday. James Wilding has been director
of the authority since its 1987 inception, which transferred the airports
from federal to regional control. But the transition should be smooth as
James Bennett, Wilding's top lieutenant since 1996, takes over. Two of the
biggest issues ahead involve the costs and effectiveness of increased
security measures after Sept. 11, and the future of United at Dulles.
United is responsible for about 38 percent of the traffic at Dulles. But
the airport is the smallest of United's five U.S.-based hubs, and some
industry observers have speculated that the airline might scale back
operations or eliminate the hub. Wilding and Bennett say that is unlikely.
Dulles provides United a base for its trans-Atlantic operations that would
be difficult to duplicate, Wilding said. United spokesman Chris Braithwaite
said the airline intends to emerge from bankruptcy with all five hubs intact.

Bennett said the presence of United at Dulles is a healthy one. Using it as
a hub means that United and its primary express carrier, Atlantic Coast
Airlines, provide nonstop service to many small and mid-sized cities from
there. The presence provides good-paying jobs as well ? United is one of
the top three private employees in Loudoun County, for example. But the
airline does not dominate the hub and does not have the ability to force
unnaturally high prices. "There's a dual role going on at Dulles," Bennett
said. "On the one hand, it's an international hub. But you also have the
domestic operations, and the nice thing about the domestic side is that
Dulles is very diversified. You have the low-fare product with AirTran and
Jet Blue. ... There's quite a bit of choice at Dulles." Despite the
presence of some low-fare carriers, travelers in the Washington area most
often find the cheapest fares at Baltimore-Washington International, about
30 miles north of Washington. Discount carrier Southwest Airlines is by far
BWI's largest carrier, with nearly 50 percent of the traffic there. And
when US Airways dramatically scaled back operations there, low-fare carrier
AirTran picked up much of the slack. Bennett acknowledged that BWI has
carved out a successful niche as a low-fare airport. And while he said MWAA
would like to bring more low-fare carriers to Dulles, it's not necessarily
a top priority. What makes Dulles distinctive, he said, "is the fact that
we have a very large regional market ... and you don't see the level of
international traffic at BWI that you do at Dulles." A $4.1 billion
expansion at Dulles, approved in part to accommodate United, has been
scaled back to about $2.6 billion, which will help the airport hold the
line on landing fees.

Other airports have been cutting construction costs, said Brian Busey, a
McLean-based law partner with Morrison and Foerster who represents several
airports across the country. Airports are facing a tough time because of
reduced landing fees from fewer flights, and the increased security costs.
As a result, projects like new runways and terminals are being put off.
"Instead of seeing construction signs up for two years, you might see them
up for five years," Busey said. Those capital improvements will be sorely
needed when and if traffic resumes and exceeds the 2000 levels that led to
congestion at many airports, Busey said. At Dulles, officials have focused
on construction that will help travelers get in and out quickly. Two new
parking garages recently opened, adding more than 8,000 spaces to the
17,000 that had been available. Construction continues on an underground
train that will replace the airport's unique ? and some say antiquated ?
mobile lounges that shuttle travelers from the terminal to the gate. "The
capacity issue is something we've never lost sight of," Bennett said.
Wilding said the airports spend an extra $4 million to $5 million a year on
security, which he said is much better than it was before Sept. 11. But he
said many issues still need to be worked out. "We're still feeling our way
a little bit. It's still not the most stable part of our business," he
said. But for all the hand-wringing about the future of the airline
industry, Wilding and Bennett remain optimistic. "I think aviation is still
extremely relevant to the life of this country," Wilding said. "It's not
like we're manufacturing something like black-and-white TVs that people
don't want any more."


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