All’s Fare in Taxi War Over Airport

An unusually bitter bidding war, marked by charges of political favoritism, has broken out between two firms vying for the taxi service contract at John Wayne Airport.

The Airport Commission voted unanimously last month to recommend that the contract be awarded to the same cab company that has controlled airport taxi service for 22 years, even though its proposal would result in higher fares for passengers and less revenue for the airport than the competitor’s bid would provide.

Orange County Airport Yellow Cab, which has the current contract, would continue to charge taxi riders departing from John Wayne a $1 surcharge, in addition to the normal mileage fees. The other bidder, A-AAA Yellow Cab Inc., offered to provide service without charging passengers a surcharge.

Both firms have hired lobbyists to press their cases to members of the County Board of Supervisors, who will award the three-year contract at their Tuesday board meeting.

A-AAA executives complain that the bidding process favored its rival. “It’s really been an uneven playing field,” said Rick Schorling, A-AAA’s executive vice president and general manager. “We came up against the old-boys network.”

Airport officials deny that favoritism played any part in the commission’s decision to stick with the airport’s longtime cab company. They said the commission was willing to accept the lower revenue that would come from Airport Yellow Cab because the firm has a proven track record and has pledged to purchase more new cabs to serve passengers.

The firm plans to put 90 new vehicles into service over three years, compared with 80 new cars under the A-AAA proposal. Some of the cabs now serving the airport have as many as 200,000 miles, and require more frequent maintenance.

“Our intent was to balance revenues with what is in the best interests of the public,” airport spokeswoman Kathleen Campini Chambers said. “We wanted to have the safest, highest-quality vehicles available . . . and provide passengers with the most pleasant experience possible.”

Under its proposal, Orange County Airport Yellow Cab would pay the airport 7 cents for each passenger it carries from John Wayne Airport. Currently, the company pays the county about 7.5 cents per passenger. A-AAA would pay 8.5 cents per passenger the first year of the new contract and 9.5 cents the next two years.

Larry Slagle, president of Orange County Airport Yellow Cab, confirmed his firm’s $1 surcharge on fares originating at the airport and said the new bid proposal retains this fee. “The general public would not feel a difference,” he said.

Taxi surcharges are common at airports across the country, Slagle said, and are needed to pay for maintenance costs, airport fees, security and other expenses. He also questioned whether A-AAA or any other cab company could provide adequate service at John Wayne Airport without the $1 fee.

Schorling disagrees, insisting his company can fulfill all contract terms without the surcharge, which he describes as “pure gravy.”

His competitor’s proposal, Schorling added, essentially calls for the county to subsidize the purchase of new taxi cabs by dropping its airport fee from 7.5 cents per passenger to 7 cents.

Over the last few weeks, both companies have been furiously faxing letters and personally meeting with county supervisors in an effort to win their support. At times, the charges and countercharges have become personal.

A-AAA maintains that its rival had an unfair advantage at last month’s Airport Commission meeting because Slagle is a former commission member. Slagle responds that he left the panel a decade ago and hasn’t “seen most of the [commissioners] on airport business in years.”

Orange County Airport Yellow Cab, meanwhile, charges that some tax liens and civil judgments against one A-AAA shareholder raise questions about the company’s stability.

“That has nothing to do with whether we can provide the taxi service,” Schorling responds. “It’s not significant.”

Most supervisors said they have yet to make up their minds on the matter. Some plan to hold last-minute meetings with representatives of the companies early next week.

“It’s a very difficult decision,” Supervisor Marian Bergeson said. “We have to make every effort to be fair and find a solution that provides the county and the public with the best advantage.”