Council lets stand LAX fee increases

Resisting pressure from the powerful airline industry lobby, the City Council declined Friday to intervene in what carriers alleged was an unprecedented increase in terminal rents and fees at Los Angeles International Airport.

As a result, the council let stand a controversial decision by the Airport Commission last month to quadruple terminal fees for low-cost carriers at LAX in Terminals 1 and 3.

The commission also voted to double maintenance costs for carriers with long-term leases. The new charges go into effect Feb. 1.

Discount airlines vowed to file a protest with the federal Transportation Department. Carriers have until mid-February to file voluminous documentation supporting their argument that the new terminal charges are discriminatory because they don’t apply to carriers at LAX with long-term leases.

“We’re disappointed, but not surprised, with the council’s decision,” said Jose Luis Sanchez, director of governmental affairs for Southwest Airlines.

City officials “were determined to raise rates in a discriminatory and unreasonable manner,” he added. “That decision jeopardizes low fares and service for the flying public.”

Carriers with long-term leases expect to challenge the increase in maintenance costs in state court.

Airline representatives told the council Friday that they were concerned the ongoing disagreement over the cost increases would return the city and the carriers to the tense standoff they had over landing fee increases at LAX in the 1990s. That fight led to years of court battles and posed a political challenge for then-Mayor Richard Riordan.

“Unlike other airports where airlines have been able to work cooperatively on improvement programs, LAX has demonstrated that it has no interest in a long-term rational business partnership,” Air Transport Assn. President and Chief Executive James C. May said in a statement after the meeting.

“What now is an adversarial relationship can only negatively impact airline customers ... by further delaying the much needed modernization of this antiquated facility,” May said.

City airport agency officials testified Friday that additional revenues are needed to upgrade systems at the 78-year-old airport and to pay up front for major projects, including a $723-million overhaul of the Tom Bradley International Terminal.

“We want to have a revenue stream that allows us to maintain the airport in a first-class condition,” said Patty Tubert, deputy executive director of the agency’s real estate and economic development group. “I’m sorry to say we’re not there now.”

Council members Bill Rosendahl and Janice Hahn introduced a motion Wednesday to review the terminal rent and fee increases, but Rosendahl dropped it Friday amid heavy lobbying in favor of the hikes by Mayor Antonio Villaraigosa’s office.

jennifer.oldham@latimes.com