Two Airport Shuttles Agree to a Merger : Transportation: Prime Time and City strike a $12-million stock-swap deal.

Prime Time Shuttle and City Shuttle reached a $12-million stock-swap agreement that combines two of the largest Southland-based airport shuttle operations, the companies said Tuesday.

The firms, both based in Van Nuys, are merging into a new headquarters in Burbank and will have combined their operations by the end of the week, the companies said. The deal could be a sign of impending consolidation in the industry, which has grown rapidly since 1984.

The new firm retains the name Prime Time and will continue to provide transportation to airports in the metropolitan area, including Burbank, Los Angeles International, John Wayne in Orange County and Long Beach. The merged company will rely on the companies’ current pickup service telephone numbers.

Prime Time President John Kindt was named president of the new company, and City Shuttle President Rod Ramsey will become vice president and chief financial officer, according to the agreement. Kindt and Ramsey, sole owners of the merged firms, traded their stock in the respective companies for equity in the new firm. Kindt will control 70% and Ramsey 30% of merged company.

The merger unites firms with two of the largest van fleets in Southern California. Prime Time ranks second to Supershuttle, the industry leader. Gardena-based Amtrans has the third-largest fleet, and City Shuttle ranked fourth.

The deal will make the merged firm the major operator at Burbank Airport, where the two firms had ranked No. 1 and No. 2, respectively, in passenger business. The merger will also make them a more formidable competitor at Los Angeles International, Kindt said.

“I’ve heard other competitors talking about consolidation and it may become a trend,” Kindt said.

Prime Time needs more clout because too many firms are competing for passenger pickup business at Los Angeles International, Kindt said. Prime Time wants regulations that would limit the number of operators and would ensure that companies have a system to deliver the airport-bound passengers--as well as airport pickups. “The pie is expanding if we take care of the ride-share industry,” he said. “The danger is that we might become a parallel taxi industry. We don’t need that because we already have a taxi industry.”

The explosion in the number of van companies was spurred by a 1981 State Public Utilities Commission decision opening up a market then dominated by cabs and buses. Supershuttle led the way by providing rides to accommodate several passengers and charging lower fares than taxis. It also delivered passengers faster than buses.

Between 14% and 18% of all passengers at Los Angeles International use shuttle vans, according to a recent study by the Shuttle Van Assn. of Southern California. In 1990, about 2 million passengers have used shuttle vans at Los Angeles International, compared to 850,000 who used taxis, according to the Los Angeles Department of Airports.

Responding to complaints that industry growth has lured irresponsible operators--including some small operators that strand customers in vans for long periods to build up passenger loads--the Department of Airports last year imposed a moratorium on new van operators at LAX. The moratorium exempts companies that had applied for state permits before the city ban went into affect.

“The moratorium was enacted to allow the airport to establish policies that could facilitate the growth of the industry,” said Stephen Tisdalle, a management analyst at the department.