COUNTYWIDE : Braniff Decides Not to Fly Out of Wayne

Financially strapped Braniff Airlines Thursday became the second air carrier in two weeks to decide not to begin service out of John Wayne Airport in April, airport officials said.

Orlando-based Braniff recently filed for Chapter 11 protection from creditors while it seeks to reorganize. In a telephone call to Orange County airport officials Thursday, the company said the airport’s policy to require a $500,000 good-faith deposit--and problems with the financing for new aircraft--were too difficult to overcome.

Braniff officials could not be reached for comment.

Braniff’s decision--coming 14 days after Dallas-based Southwest Airlines also changed its mind about coming to Orange County--may lead to increased pressure from air cargo carriers such as Federal Express and United Parcel Service that have been clamoring to serve John Wayne, airport officials said.

Chicago-based Midway Airline, the only other new entrant given permission to start service at John Wayne next April, still plans to begin service then, an airport spokeswoman said.

The Federal Aviation Administration held joint meetings in Washington on Monday and Tuesday with John Wayne Airport and air cargo carrier officials in an effort to resolve the ongoing dispute over Orange County’s refusal to permit air cargo operations.

County officials object to air cargo operations because, so far, the carriers have said they would use older, noisier jets, such as Boeing 727s, which airport officials say could provoke new environmental lawsuits against the county-run facility.

Also, a 1985 court settlement of anti-noise lawsuits places a cap on the number of people who can use the airport--8.4 million passengers per year--and includes other constraints that would make it difficult to take any action that adds new uses of the facility, according to airport officials.

Currently, there are no hangars or counter space available for air cargo operations, and the airport has nighttime curfews which conflict with air cargo’s flight schedules. Also, county officials say they prefer to award flights to companies that will serve passengers, since there is a tremendous, unmet market demand in Orange County, forcing air travelers to seek flights at airports in neighboring counties.

Airport spokeswoman Kathie Rutherford said the air cargo controversy may be resolved within a week. Airport officials have suggested using smaller, quieter jets, she said, but the need for another environmental impact report--and the lack of space at the airport--remain major issues.

Braniff had planned to fly to Kansas City from John Wayne Airport when the airport’s new, $50-million passenger terminal opens April 1.