JWA finances need reviving

Paul Clinton

JOHN WAYNE AIRPORT -- The airport’s financial health isn’t critical

but does need some reviving, director Alan Murphy said Monday.

Murphy made the comments on the eve of presenting a two-month review

of post-Sept. 11 finances to the Orange County Board of Supervisors.

“I think the [financial] position is slightly better than I thought it

would be,” Murphy said. “But the condition is serious and needs to be

dealt with.”

At today’s board meeting, Murphy will lay out three possible options

for the board to consider as a way to get a handle on an expected

$10.4-million budget shortfall for the 2001-02 fiscal year.

Prior to Sept. 11, Murphy projected the airport would end the coming

fiscal year $1.2 million in the black.

The airport’s budget took a direct hit when terrorists flew three

planes into the World Trade Center and the Pentagon. Since reopening two

days after those tragic events, the airport has seen a 15% falloff in

passenger levels, a $4-million drop in operating revenues and an

$8.7-million increase in security costs.

Two of Murphy’s three scenarios are intended to get the airport back

on solid footing. The board is scheduled to discuss the issue today and

perhaps select one of the options.

Under all three scenarios, fewer dollars would be available to

supervisors for “discretionary spending.” That money, a pot of about $13

million per year in revenue, has historically been used to plan and

develop an airport at the closed El Toro Marine Corps Air Station.

Under the first revitalization option, the board would raise some

airline fees and charges. About $2.3 million would be available for

spending. The airport’s net loss over the fiscal year would be $10.4

million.

The second scenario would lead to increases in airline fees, hourly

parking and aircraft hanger and tie-down rentals. About $7.7 million

would be available for spending, with the airport’s net loss falling to

$4.9 million.

The third potential scenario incorporates similar fee hikes as the

second option, but with higher hikes of parking fees. The board would

have $9.7 million to spend and a $2.9-million net loss.

Several supervisors weren’t available on Monday to discuss Murphy’s

proposals. Supervisor Jim Silva, who represents Newport-Mesa, couldn’t be

reached for comment.

In addition to completing the financial analysis, Murphy has also

requested a federal review of a recurring number of tire failures by

Delta MD-90 aircraft at the airport. Murphy, in a Nov. 27 letter, asked

Federal Aviation Administration officials to review the situation in the

wake of a Nov. 24 blowout of two tires of a Delta MD-90 during a landing.

There have been 10 such failures since 1998, airport records show.

* 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 .

FYI

WHAT: Orange County Board of Supervisors meeting

WHEN: 9:30 a.m., today

WHERE: 10 Civic Center Plaza, Santa Ana