Airport’s net worth is up $18 million
Laura Sturza
While the airline industry remains volatile following the Sept. 11
terrorist attacks, and the Burbank-Glendale-Pasadena Airport lost 42%
of its revenue from the previous year, the facility still increased
its net worth by $18 million.
The airport’s net worth -- including property, investments and
reserve funds -- is almost $290 million. By doubling its investment
income from fiscal year 2000-01 to 2001-02 -- a boost from $3
million to $6 million -- and receiving an added $10 million in
federal funding for noise insulation, the airport buffered revenue
losses and expense increases.
“There is a good financial picture, but the Airport Authority
still has to keep a wary eye on future income streams because of the
problematic nature of the airline business,” Airport Authority
spokesman Victor Gill said of the figures released Monday.
Other than increased security equipment and personnel, passengers
should not experience any change in services at the airport, Gill
said.
The airport’s expenses went up 18%, or $3.6 million, from fiscal
year 2000-01 to fiscal year 2001-02, primarily the result of building
modifications for added security.
During the same period, the airport’s $2-million drop in operating
revenue was mainly due to lost parking income and a 5% decrease in
passengers.
The city lost about $130,000 in parking taxes from the airport and
less than $50,000 in sales tax from airport concessions and
rental-car agencies, Burbank Financial Services Director Derek Hanway
said.
“The airlines are in a very guarded mode economically, and their
ability to profitably do business is ultimately what sustains the
airport,” Gill said.
But Burbank is an attractive facility for airlines, with landing
fees half to one-fourth the cost of other airports.
Burbank does not plan to raise its fees because it has no plans to
embark on construction of a new terminal, and wants to remain
competitive with other facilities to continue to attract carriers,
Gill said.