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Tuesday, Jul. 22, 2008

County supervisors support airport expansion; express anger at departing airlines

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The Board of Supervisors Tuesday voiced strong support for airport expansion, as both they and the business community expressed anger at two airlines for pulling out of the county airport last month.

“Shame on them!” Supervisor Katcho Achadjian said of Delta Connection and American Eagle, both of whom will pull out of the San Luis Obispo Regional Airport later this year. He ripped into them for “walk(ing) away without any warning.”

Airlines nationally have been cutting services because of high fuel prices.

Nevertheless, Achadjian said county leaders should be aggressive in seeking replacements. He said the county should not let “an airline or two move us backwards. We should go out there and attract other airlines.”

Meanwhile, he said the county must not back away from expansion, a sentiment shared by the many members of the business community who were there. “Don’t hit the pause button,” said one. “Keep going forward.”

Sierra Vista spokesman Ron Yukelson, who described himself as a “frustrated traveler,” said the airport is vital to the county’s business community. “Continue to fund and expand (it),” he asked supervisors.

Speakers also took swipes at Bill Watkins, executive director of the UCSB Economic Forecast Project.

Watkins wrote an Op Edit for The Tribune July 18 suggesting that Santa Maria Airport be the Central Coast’s commercial regional airport.

Supervisor Jerry Lenthall said Watkins “missed the mark.” He said “so goes your regional airport, so goes your economy.”

Airport Manager Klaasje Nairne said she doubts the federal government feels as Watkins does, or it would not have invested $42 million in expansion at the San Luis Obispo Airport.

Supervisors took no formal decisions on their new terminal or parking garage. They have suspended work on both as airport officials assess the situation. Supervisors have scheduled a meeting Sept. 9 to hear alternatives.

Airport officials will "(study) trends likely in the air transportation industry," and design various scenarios, according to General Services Director Janette Pell.

In a report to supervisors, Pell stressed that the San Luis Obispo County Regional Airport is financially sound and "a viable and vital business operation."

However, she added, there could be a drop of as much as 5 percent in revenues in the wake of Delta Connection and American Eagle airlines pulling out.

Meanwhile, Achadjian and others said the county will be pro-active in seeking replacements for Delta and American Eagle.

If anyone wants to travel to lobby, Achadjian quipped, “I’ll be happy to pay for their gas.” Achadjian owns gas stations in Arroyo Grande.

The drop could affect expansion, including the multi-million- dollar terminal and parking garage. Although 95 percent of the money for capital improvement projects is from federal grants, the other 5 percent comes from money paid by airlines on each ticket purchase.

The airport had its best year in 2007, with 360,000 passengers, according to Craig Piper, assistant airport manager.

This year, the numbers for the first five months show a 3 percent decline compared with the same period last year, he added.