LAX to Increase Fees, Rents at Terminals

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The Los Angeles Board of Airport Commissioners unanimously approved drastic increases to fees and rents for discount airlines in what the carriers say is the largest increase in the history of the industry.


The L.A. Times reports that the increases would nearly quadruple rents for low-cost carriers in Terminals 1 and 3 at LAX, from $76 million over five years to $292.8 million. The rate hike goes into effect Feb 1.


The effect on ticket prices is unclear but the airlines say the action would double maintenance fees and violates the terms of existing leases, leaving them with no action but to sue over the increases. Airport officials contend that the existing leases don’t specify a formula for calculating charges.


The airlines also contend that the city’s airport agency is making a profit and has no justification in increasing any fees or service charges.


Airport officials said the hikes are necessary to cover the agency’s costs and will also be used to make needed improvements to the airport’s infrastructure.


However, the airlines contend that the airport does not rely on tax dollars but instead is funded by landing and terminal fees from airlines and revenue from airport shops, restaurants and parking.


The increases would raise the cost per boarded passenger at Terminal 1 to $9.89, a $4.19 increase. Terminal 3 would see costs jump about $5.45 to $11.60, airport officials said.


Both sides have said they are open for a negotiation in an effort to avoid any lawsuits. No date has been set for a meeting.

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