SF Gate: FAA studying the impact of airline bankruptcies on airports

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2003/06/26/f=
inancial1521EDT0227.DTL

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Thursday, June 26, 2003 (AP)
FAA studying the impact of airline bankruptcies on airports
BRAD FOSS, AP Business Writer


   (06-26) 16:15 PDT WASHINGTON (AP) --
   The Federal Aviation Administration is studying what the federal
government can do to bolster the finances of airports affected by airline
bankruptcies.
   The agency submitted a request for public comment Thursday, asking airpo=
rt
managers, airlines and fliers to outline their concerns for a report
scheduled for publication in September.
   FAA spokeswoman Marcia Adams would not specify the type of assistance the
federal government might provide, although she said the agency's areas of
concern include reduced landing fees, fuel sales and lease agreements.
   Congress asked Transportation Secretary Norman Mineta to look into the
issue in early April, shortly after US Airways emerged from Chapter 11.
   The Arlington, Va.-based carrier is threatening to shut down its hub at
Pittsburgh International Airport unless costs there are dramatically
reduced. The airport, meanwhile, increased rent for all carriers last week
in order to offset declines in passenger traffic.
   Of primary interest to the FAA, according to the request made through the
Federal Register, is how airport operations and finances have been
affected by airline bankruptcies.
   The agency, an arm of the Department of Transportation, said it would al=
so
examine how the economic health of airports is affecting bond markets, an
important source of financing for the industry.
   The FAA said it would consider "actions that the federal government or t=
he
airports themselves could take to ameliorate any significant financial
disruption from airline bankruptcy."

Comments can be filed online at dms.dot.gov

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