The Daily Gazette - Schenectady, NY
Daily Gazette

Airport authority plans on fewer fliers, sets $48.3 million ’09 budget
Wednesday, December 3, 2008

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— The Albany County Airport Authority has approved a $48.3 million 2009 budget for Albany International Airport that reflects a likely decline in the number of people flying.

The budget anticipates a 2.3 percent decline in passenger departures next year, which would hurt a variety of airport revenues.

“It will impact the number of people parking, the number of people eating, the number of people renting cars, our sales, it will affect us in a number of areas,” said airport spokesman Doug Myers. The decline mirrors an anticipated nationwide decline in commercial flying because of the current recession.

Passenger boardings during 2009 are expected to be about 1.362 million.

Total revenues for the Capital Region’s commercial airport are expected to be $48.3 million, with operating expenses of $33.9 million, a 0.5 percent decrease from 2008, according to information provided by the authority.

The budget also includes $11.4 million to pay debt and $1.8 million for capital expenditures. If still available at the end of the year, the remaining $1.2 million would be split among the seven airlines that have lease agreements with the airport.

The airport’s revenues come from a variety of sources, most of which are affected by the number of people flying, Myers said. The largest single source of revenue is parking, which brings in $10 million to $11 million a year, but the airport also receives lease payments and landing fees from the airlines as well as a share of car rentals, food and beverage sales and other on-site vendor sales.

The projected 2.3 percent decline in passengers departing would come on top of a 3.3 percent decline this year through Oct. 31 and against the background of a general decline in commercial flying.

“The nation’s continued economic instability, higher air fares and increased operating costs required a thorough review of our revenues and expenditures to ensure the financial well-being of the airport,” said David E. Langdon, chairman of the Albany County Airport Authority.

The authority has already taken a number of steps, he said, including reducing staff, a hiring freeze, energy conservation and an increase in parking fees.

Myers said 28 people work for the authority and about 180 people work for the contractor that actually handles day-to-day operations of the airport.

New projects during 2009 should provide additional revenue for the airport, Myers said.

HondaJet is expected to break ground during the second half of the year on a new sales and service center, and HMSHost will take over airport terminal concessions next year, introducing up to six new concessions, including Starbucks, Dunkin Donuts, and a new full-service Saratoga-themed restaurant.



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