Some US airports heavily tied to troubled airlines WASHINGTON (Reuters) =97 U.S. airports feasted on the success of airlines=20 that dominated their gates and terminals a few years ago, but the carriers'= =20 financial troubles are now causing anxiety on the ground. "I think there is= =20 a lot of uncertainty about what's on the other end of this recession in=20 aviation," said Steve Van Beek, an executive with the trade group Airports= =20 Council International =97 North America. Bankrupt United Airlines,=20 reorganized US Airways, and distressed American Airlines are anchors at=20 several airports that are important gateways in the U.S. transportation=20 system and serve as regional economic engines. No. 1 American, which=20 averted bankruptcy three times in the past month, dominates Dallas-Fort=20 Worth and has hubs in Chicago and Miami. US Airways, which emerged from=20 Chapter 11 in March to an uncertain future, is the main carrier at=20 Washington's Reagan National and dominates Charlotte and Pittsburgh. But=20 the most pressing example is United, which said in March it could liquidate= =20 if it could not meet its cost-cutting goals and reported a $1.3 billion=20 quarterly loss last Friday. A spokesman said the airline was committed to its five hubs and said new=20 labor agreements have helped ease fears the company will go under. But=20 industry experts agree that United's finances remain fragile and could "go= =20 south" fast. Airport executives interviewed were reluctant to discuss these= =20 problems, but aviation consultants and other insiders note continuing=20 industry concern about the vulnerability of some airports. United and its=20 affiliates cover about half the flights at Chicago O'Hare and San Francisco= =20 international, and two thirds of operations at Denver and Washington=20 Dulles. United also has a terminal and other space at Los Angeles=20 international. "Airports are affected by the restructuring of the airline=20 industry, globally. They are affected by the specific actions of a dominant= =20 carrier," said consultant Tulinda Larsen. Airports make money from airline= =20 leases, landing and passenger fees and concessions. But with travel off=20 sharply since the hijack attacks of Sept 11, 2001, carriers have less=20 revenue and are seeking new deals for airport contracts. The amount United paid for landing fees and rent, which include airport=20 facilities, from January through March fell 3.2% to $240 million compared=20 to the same period last year. And US Airways has rejected its leases for=20 gates and other facilities in Pittsburgh and has given the county that=20 operates the airport until January to renegotiate terms. Indianapolis=20 airport is deeply concerned that United's plans to close a maintenance=20 facility there to cut costs will jeopardize $220 million in revenue bonds.= =20 Airports, squeezed by sharply higher costs for security as revenues slip,=20 are also concerned about the impact airline troubles will have on their=20 ability to obtain financing. At San Francisco, plans to build two terminals= =20 and a hotel are on hold. Dulles delayed a $1.5 billion project last year to= =20 replace its United concourse. Fitch Ratings has downgraded key Denver=20 airport bonds and said the outlook was "negative" because of United. In=20 contrast, Dallas-Fort Worth airport completed a $1.46 billion bond sale two= =20 weeks ago for its capital development program. Future competition is also an issue. If an airline liquidates or abandons=20 service, rivals would vie for lucrative routes. Competition would be fierce= =20 because those flights are limited and the system has plenty of capacity.=20 "They have to do some contingency planning, think about how they would fill= =20 enormous gaps," said one consultant about vulnerable airports. "With all=20 the musical chairs shuffled some people could be left with a lot less."=20 While airports are always looking out for new business, another industry=20 source said up to 100 of them are courting about 50 domestic and=20 international carriers. Many are in hot pursuit of JetBlue Airways, a=20 profitable low-fare airline that is adding flights, including another at=20 Dulles this month. JetBlue serves about 20 destinations but has sealed an=20 aircraft order with Airbus that could enable it to triple its fleet within= =20 10 years. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.cso.gov.tt TnT Webdirectory: http://search.co.tt *********************************************************