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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

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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

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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

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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.

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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.


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