Airline crunch landing at JWA

Paul Clinton

JOHN WAYNE AIRPORT -- The airport and its workers are being hit hard

by the crisis the airline industry is suffering in the weeks after the

Sept. 11 terrorist attacks on America.

At this point, only the employees managing the county-owned airport

have been assured their jobs are safe, John Wayne spokeswoman Yolanda

Perez said.

Other layoffs are expected at the companies running the parking lots,

cafes and bars, valet parking service, rental car operations, and other

concessions at the airport.

Nearly every major airline has announced deep cuts in service since

four planes were hijacked earlier this month. Two of the planes slammed

into the World Trade Center, leaving more than 6,000 people unaccounted

for and presumed dead.

Since then, United, American, Delta and Continental have all slashed

their schedules and have announced layoffs as Americans stay out of the

skies.

Southwest Airlines was the sole holdout until Sept. 20, when the

company said it would likely drop flights due to a nearly 70% drop in

travel volume.

The drops will take their toll at John Wayne, which relies on landing

fees, passenger service charges and parking fees.

In an internal memo, John Wayne Airport Director Alan Murphy predicted

the airport would lose $9.2 million in revenue over the next year.

The airport is expected to lose $4.5 million in lost parking revenue,

$2.1 million from lost landing fees and $1.4 million in revenue from

rental cars. The remainder will be lost from reduced business at gift

shops and other concession stands.

The hit in parking lot revenue has been obvious in recent weeks as

more than half the spots have sat empty. Awad Soliman, an employee of

AMPCO System Airport Parking, said he estimates he’s seen a 50% drop in

cars.

Over the past week, business has picked up somewhat at John Wayne. But

companies dependent on travelers for business are taking it on the chin.

Six rental car companies serve John Wayne -- Alamo, AVIS, Budget,

Enterprise, Hertz and National.

ANC Rental Corp., the Fort Lauderdale, Fla.-based parent company of

Alamo Rent A Car, announced Tuesday it would trim as many as 118,000

vehicles from its fleet of 337,338.

While the cuts are still being implemented, ANC spokeswoman Cheryl

Budd said John Wayne is sure to lose cars.

“Not to strike fear in the hearts of customers,” Budd said. “It’s a

business decision.”

Budd stressed that there will still be enough cars for those who need

them.

Hertz, the world’s largest rental car company, is also expected to

announce fleet cuts and layoffs, company spokeswoman Robin West said.

Both companies have dropped their rates to the point that they’re

offering vehicles for $20 per day at John Wayne.

The company that manages many of the food shops, restaurants and bars

is also reevaluating its business as a result of the drops in travel

volume.

HMS Host Corp., based in Bethesda, Md., runs the airport’s Cinnabon,

Pretzel Mania, Pizza Hut, Starbucks, TCBY Treats and Pretzel Mania.

A spokeswoman from the company did not return calls for comment, but a

terse message was posted on the company’s Web site:

“While it is very difficult to predict medium and long-term affects on

passenger travel, we are measuring and studying the impacts on our

business,” the message states.

-- Paul Clinton covers the environment and John Wayne Airport. He may

be reached at (949) 764-4330 or by e-mail ato7

paul.clinton@latimes.comf7 .

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Inside

Just how well prepared is Newport-Mesa for a potential terrorist

attack? See story, Page 3