Plan to sell airport parking lots axed
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A plan to sell off the parking lots at Pittsburgh International Airport as a way to slash debt and cut costs to the airlines won't fly.
The Allegheny County Airport Authority has ditched the proposal, concluding that it would drive up parking rates to travelers and might not even raise enough money for the intended goal -- to eliminate Pittsburgh International's $435 million debt.
Authority officials had been considering the sale of the airport's parking garage and lots -- 13,200 spaces in all -- at the urging of County Executive Dan Onorato, who championed it as a way to drastically cut costs and attract more airlines.
But Bradley D. Penrod, the authority's executive director, said the more the proposal was studied, it did not prove to be as advantageous to the airport or its airlines as first thought.
Based on a study by Walker Parking Consultants, the privatization would probably have resulted in "substantial" parking rate increases for travelers and airport employees, perhaps more than 30 percent in some cases, Mr. Penrod said.
"There were some pretty hefty rate increases to the public and employees," he said.
At the same time, the airport would have lost one of its top nonairline revenue sources to the private operator. Parking currently generates about $22 million a year for Pittsburgh International, money that is used to offset the fees charged to the airlines.
Even if the authority were able to raise enough money in a sale of the parking lots to pay off the airport debt, it would still be responsible for the facility's operation and maintenance costs.
Without the parking revenue to help offset those costs, the burden would fall directly on the airlines, Mr. Penrod said. As those costs rose, the airlines would have to pay more, causing their fees to increase.
"The airlines would be on the hook for the entire amount," he said.
Mr. Penrod said the authority estimated that selling off the parking would generate $250 million to $400 million. Even at the high end, that would still be short of the $435 million needed to pay off the debt, he noted.
First Published August 21, 2010 12:00 am
