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Tue, Oct 14, 2008

Southwest Says Now's Not The Time For LAS Expansion

Carrier's Planned Expansion On Indefinite Hold, Other Airlines Also Cutting Back

The perennial boom-town mentality of the Las Vegas market is producing a disagreement between the management of McCarran International Airport and some airline officials. For years, airport officials have watched passenger volume rapidly approaching capacity, and they're now in the middle of a multi-billion-dollar expansion to accommodate it.

But Southwest Airlines -- which had earlier planned a nearly 50 percent increase in flights to Las Vegas -- now says that expansion, from 240 daily flights to 350, is on indefinite hold. Other airlines which have announced capacity cuts have even specifically targeted markets such as Las Vegas and Orlando for cuts, because the leisure travel market is particularly price-sensitive.

The Associated Press reports passenger traffic at McCarren is down 4.8 percent in 2008 compared to 2007, and notes airlines projecting 12-to-15 percent fewer seats into Las Vegas going forward.

But airport planners say that when the economy rebounds, they must be ready. The expansion currently underway includes a new $2.4 billion international terminal, a new pedestrian bridge, new gates and a new heliport.

Linda Macey, properties manager for Southwest Airlines, says airport management needs to slow down. "There is clearly not a current need for increased capacity," she said.

Macey even appealed to Clark County Commissioners in July to cancel or delay all upgrades not justified by current needs.

So far, however, the expansion is moving ahead on schedule... and county officials say they'll be ready to handle 53 million passengers a year by 2012. Now, they only need to hope all those folks show up.

FMI: www.mccarran.com, www.southwest.com

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