--- In BATN@xxxxxxxxxxxxxxx, "5/11 SJ Business Journal" <batn@...> wrote: Published Friday, May 11, 2007, by the San Jose Business Journal SFO cuts fees, still expensive By Eric Young Continuing a strategy that is winning over airlines, San Francisco's airport is making it cheaper for carriers to land and lease terminal space at the facility. Landing fees will be cut almost 10 percent and lease rates will fall more than 3 percent in the fiscal year starting July 1. This marks the second consecutive year that San Francisco International Airport has lowered fees to make the facility more attractive to airlines. The effort is making inroads with major low-cost carriers like Southwest Airlines Co. and Jetblue Airways Corp. Both are starting new service at SFO. Jetblue began flying out of SFO this month, attracted in part by the airport's lower costs. Southwest will resume service from SFO later this year, six years after dropping the airport due to high operating costs and other issues. The dip in airline-related revenue to SFO will be offset by increases in rates elsewhere. Rent for cargo handling space will increase slightly, as will parking for SFO employees and those with long term permits. Trip fees for buses, limos and others that serve the airport will go up as well. Even with fee decreases, San Francisco remains the Bay Area's most expensive airport for airlines by far. For example, landing fees -- which will drop to $3.01 per 1,000 pounds next year -- are about double what airports at San Jose and Oakland charge. The cost per passenger at SFO -- an average calculation of all the charges airlines pay -- is $14.87, more than triple San Jose's $4.05. That is why SFO Director John Martin made fee-cutting a goal about two years ago, saying it would help make the airport more attractive to carriers. SFO remains the largest Bay Area airport when ranked by international flights and total number of flights. SFO's most recent statistics show traffic is about the same as last year. But airport officials expect those numbers to rise, fueled in particular by international travel. San Francisco's airport had 19.9 million passengers this fiscal year as of January, up 0.3 percent from the same time last year. Eric Young is a reporter for the San Francisco Business Times, an affiliated publication. Reach him at (415) 288-4969 --- End forwarded message --- <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> If you wish to unsubscribe from the AIRLINE List, please send an E-mail to: "listserv@xxxxxxxxxxxxxxxxx". Within the body of the text, only write the following:"SIGNOFF AIRLINE".