John Wayne Airport May Reduce Landing Fees : Aviation: Supervisors to act on request that would cut airline costs by more than $1 million.

Airlines serving John Wayne Airport could reap a windfall of more than $1 million today if the Orange County Board of Supervisors agrees to a request to cut landing fees and overnight aircraft parking fees.

Passengers, however, are unlikely to share in what would be the airport’s second fee reduction within a year. Airline industry spokesmen say that market demand, not fees, determines ticket pricing.

For their part, airport officials say they cannot shift any of the savings to the traveling public by reducing charges such as auto parking fees.

“We have separate cost centers,” Airport Director Jan Mittermeier said. “It has to be that way so we can make sure the airlines pay costs properly associated with general aviation.”

The fee reduction is made possible because of the increasing number of passenger and commercial aircraft flying into Orange County, creating a surplus in the account that is supported by landing and plane parking fees.

The money collected from landing fees is used for maintaining such airport infrastructure as runways, taxiways and outdoor lighting. Airlines are assessed charges based on the weight of planes that land at the airport. When service at the airport is expanded, as it was in the past year with the addition of passenger service by Southwest Airlines, the total collected also rises.

Landing fees would be cut by about 12% under the proposal. That would amount to savings of $968,460 to major airlines, which paid landing fees totaling $8 million for 1993. Air carriers also received rebates last year.

The airport is also proposing a 6% reduction in the fees charged to airlines to park their jetliners overnight. If approved, that reduction would save carriers another $156,594.

The airport finds itself with surplus cash while other public agencies are struggling with budget cutbacks. The money cannot be designated for general use by the county, however, because the federal government prohibits such transfers. That policy was reinforced in a federal appropriations bill passed earlier this year.

County Supervisor Thomas F. Riley said that, as a matter of policy, the airport should be fair and charge its various customers--both airlines and travelers--fees equal to the cost of providing a service.

“I can’t justify, ‘We can charge what we can get,’ ” Riley said.

As for the fee rebates to air carriers translating to lower ticket prices, that isn’t likely, airline officials say. “Fares are set by the marketplace,” said American Airlines spokesman Tim Smith. “It’s not a direct relationship” between ticket prices and landing fees.

Lower landing fees, however, may encourage airlines to maintain or augment their service to John Wayne, said Chris Chiames, a spokesman for the Air Transport Assn. in Washington, an industry group. “It’s going to result in lower costs to airlines,” he said.

If approved, John Wayne’s new landing fees would be slightly below those at Los Angeles International, where fees were tripled a year ago despite much protest from airlines. Unlike LAX, John Wayne has a waiting list of airlines that want to start service or to increase their numbers of flights using larger aircraft. All carriers operating in Orange County must comply with strict noise restrictions.

The fee reduction at John Wayne goes before the Board of Supervisors as a consent item, meaning that it will probably pass with little or no discussion.

What They Paid

Airlines serving John Wayne Airport could collectively benefit by more than $1 million if the Orange County Board of Supervisors approves the airport’s request to reduce landing fees and fees charged for parking planes overnight. What airlines paid in fiscal year 1992-93:

Airline Landing Fees Overnight Fees Alaska $528,950 $80,352 America West 1,526,231 139,386 American 2,094,554 308,060 Continental 565,102 146,440 Delta 901,602 146,900 Morris 124,748 0 Northwest 525,912 110,863 TWA 173,691 47,384 United 1,562,518 141,380 USAir 34,912 13,494 Total $8,038,220 $1,134,259

Source: John Wayne Airport; Researched by JANICE L. JONES / Los Angeles Times