SFGate: United says LA airport cost hike forces $10 passenger surcharge

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Wednesday, April 11, 2007 (AP)
United says LA airport cost hike forces $10 passenger surcharge



   (04-11) 17:40 PDT Los Angeles (AP) --

   United Airlines said Wednesday it was adding a $10 surcharge for
passengers departing Los Angeles International Airport to offset a $10
million-a-year hike in terminal maintenance and operations costs passed
along by the city.

   The surcharge goes into effect immediately.

   "Passing along this surcharge to our customers is not our preferred
action, but the recent sharp increase in costs to operate at LAX has left
United with no other option," United executive Kevin Knight said in a
statement from the airline's Chicago headquarters.

   Los Angeles World Airports, the agency that runs LAX and other Los
Angeles-owned airports, raised fees in December.

   "We have a great interest in LAX developing into a world-class airport,
supported by a long-term modernization plan, but we have no interest in
paying higher fees without greater benefit for our customers," Knight
said.

   United, which has joined several other airlines in a lawsuit contesting
the cost hikes, believes the increase violates United's long-term lease
agreement with Los Angeles World Airports.

   The airport agency said the surcharge was unfair to passengers.

   United, which flew more than 4.8 million passengers out of Los Angeles
last year, would generate more than $10 million with the surcharge if the
level of traffic is the same this year, the agency said.

   "United appears to be exploiting a justified increase in its maintenance
and operation costs in order to dramatically increase profits on Los
Angeles passengers," the statement said. ----------------------------------=
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Copyright 2007 AP

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