Talks Have Broken Down After Nearly A Year Of Negotiations

Negotiations between authorities an Orlando International Airport and some of the airport's major airline tenants have reportedly broken down after nearly a year of discussions about expansion at the central Florida facility. The major sticking point seems to be how much rent and fees should be charged to the airlines ... costs that would likely wind up being tacked on to the price of a ticket.

In an enterprise report, the Orlando Sentinel indicates that memos from Airport Director Phil Brown and other executives are seeking to boost the rents and fees charged to the airlines who use the airport, a major tourist destination in the state of Florida. The tenant airlines are not surprisingly reluctant to absorb such increases.

While charges are normally reached mutually between airports and airlines, an increasing number of airports, including facilities in Boston, MA; Phoenix, AZ; and Oakland, CA, have arbitrarily set fees on carriers when agreements could not be reached.

The Sentinel reports that the airlines are staunchly opposed to a proposed $2.1 billion expansion of the airport, which would include a second terminal, parking garage, and train depot, among other things. A memo sent by the airlines to airport board chairman Frank Kuppenbacher on May 30th said that none of the airlines currently operating at Orlando International have any desire to operate out of the proposed south terminal. The memo was signed by the 14 busiest carriers that use the airport.

A hearing has been scheduled for June 13. The airport authorities have tabled additional discussions about the south terminal for a year, but they say they have already spend $470 million on the new parking garage, train depot, and people mover that will serve the new terminal.

FMI: www.orlandoairports.net