It’s Cheaper To Remodel

Just a few minor modifications to the Orlando International Airport (MCO) terminal to add passenger capacity could forestall the need to build the new South Terminal, according to the Orlando Business Journal. But the modifications won't come cheap -- costing as much as $400 million, the Greater Orlando Aviation Authority was told last week.

Many of the alterations are needed, and officials note it still would be a bargain, compared to the cost of a new terminal. To build it now would cost closer to $2 billion, rather than the $1 billion cited in previous estimates.

"The most important thing is not to jump into debt we don't need," says Jeanne Van Meter, a board member of the aviation authority, which oversees the Orlando airport.

Going the least-expensive route is important, in order to "keep costs down and still provide a seamless travel experience -- run a first-class facility at a low price to fulfill our obligations to the airlines and the community," said Aviation authority Chairman Jeffery Fuqua.

The authority says that a new terminal would be needed soon, as the state's busiest airport is projected to reach 40 million passengers annually within a few years. This year it expects to reach 36 million.

Based on current yearly growth rates of 3 percent, Orlando International should reach the 40 million mark in 2010, at least a year ahead of previous estimates, according to SchenkelShultz Inc., the Orlando consultant hired to do the capacity study.

Tom Chandler, a consultant with SchenkelShultz, told the Greater Orlando Aviation Authority that facility enhancements in certain areas and advances in technology could stretch the maximum capacity to at least 45 million passengers, a level that is projected to be reached in 2015.

"We need to do work on several [things] regardless of the conversation of extending capacity in order to maintain the level of service," Chandler says.

The airport service areas that will need attention the soonest include passenger security checkpoints, ticketing lines, entering/exiting weaves, terminal ramps, baggage claim and baggage handling. Improvements in these areas will cost between $375 million-$400 million.

With the enhancements called for in the study, there's no need to worry about building a new terminal until 2012, says Steve Gardner, the aviation authority's executive director.

Because Orlando International already has undertaken many of the infrastructure projects needed to start the proposed South Terminal, airport officials say construction would take only about three years, instead of six or seven if it hadn't done them.

Fuqua points out the 2015 timeline could end up extending even further, if, for some reason, Orlando International doesn't grow as fast as the 2.9 percent rate projected between 2011 and 2015. "All this hangs on 3 percent growth, but we're exceeding the national level of 1.5-2 percent and it's a distinct possibility we could fall back, stretching those numbers out," he says.

Fuqua adds MCO might grow even faster than projected because of the vitality of the Central Florida market, which, despite the housing downturn, is steadily growing.

That vitality has helped ramp up international service this year, as a number of airlines -- including Lufthansa, Aer Lingus, Copa, Delta and British Airways -- have announced new or expanded service on international routes.

This is important... because the South Terminal is slated to become the airport's international terminal.

FMI: www.orlandoairports.net/