SFGate: Settlement OK'd in LA airport fee hike dispute with five carriers

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Tuesday, January 29, 2008 (AP)
Settlement OK'd in LA airport fee hike dispute with five carriers
By ALEX VEIGA, AP Business Writer


   (01-29) 16:39 PST Los Angeles (AP) --

   City commissioners agreed to settle a dispute with several major airlines
over a fee hike imposed in 2006 to help pay for security costs at Los
Angeles International Airport terminals.

   The Los Angeles Board of Airport Commissioners voted Tuesday to approve =
an
agreement to settle a joint lawsuit brought by American Airlines,
Continental Airlines Inc., and United Airlines against Los Angeles and its
aviation authority, Los Angeles World Airports.

   The city also reached separate settlements with Delta Air Lines Inc. and
Northwest Airlines Corp.

   The settlements cover a period beginning in 2006 through the end of this
year.

   Among the terms of the deals, the airlines agreed to pay their shares of
an $11 million per year increase in terminal security costs. The airport
operator will credit the airlines for roughly $20 million in payments the
air carriers already had paid in protest, said Steve Martin, executive
officer for LAWA.

   The airlines also agreed to shoulder their share of up to $218.7 million
for construction of a new central utility plant at the airport.

   More than 25 other domestic and international air carriers have lawsuits
pending over the fee hikes.

   Martin said the airport authority was in the process of negotiating with
the international air carriers.

   The commissioners voted to implement the maintenance and operation fee
increases ranging between 40 percent and 50 percent for terminals in part
to help cover increased security expenses following the September 2001
terrorist attacks. --------------------------------------------------------=
--------------
Copyright 2008 AP

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