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By JERRY LYNOTT jlynott@leader.net
Sunday, March 09, 2003 Page: 1A
PITTSTON TWP. – On paper, the new terminal building at the
Wilkes-Barre/Scranton International Airport spreads wide and stands tall, made
of stone, steel and glass.
It would furnish travelers with a modern gateway to Northeastern
Pennsylvania with more space, services and flights than the 50-year-old
terminal that’s adequate to meet the airport’s current needs.
In reality, though, the estimated $33.9 million project raises concerns for
some airport officials who see smoke and mirrors where others see the
opportunity to build a competitive advantage for economic development.
Not all the funding is in place for construction. The bids have been opened
but not awarded.
And, as the airline industry continues to suffer from pre- and post-9-11
market stresses, a main tenant to lease space has not been decided.
“I don’t see any risk in proceeding,” said Luzerne County Commissioner
Tom Makowski.
The Luzerne and Lackawanna county commissioners, who make up the board that
operates the airport, have to have vision to move Northeastern Pennsylvania
into the forefront, Makowski said. To do otherwise perpetuates the backward
thinking that’s kept the region from progressing.
“The terminal project is the right thing for this area,” said Makowski at
last month’s airport board meeting. “It’s been the right thing for a long
time, and it’s necessary to go forward.
Two different philosophies
At the Feb. 27 meeting, Makowski and Lackawanna County Commissioner Robert
Cordaro squared off and argued about the project when the board rejected a
settlement from US Airways on more than $115,000 in unpaid lease money.
US Airways has filed for bankruptcy court protection from creditors while
it reorganizes. It offered the airport a percentage of its debt.
Cordaro, citing the effects of US Airways bankruptcy filing on the airport,
asked that the terminal project be tabled until it was certain who will be the
main airline tenant.
He has supported the expansion but wants the airport to be on firmer
financial footing before embarking on the multi-million terminal.
“I voted for the terminal project,” said Cordaro, “until the size and
scope of the US (Airways) bankruptcy became apparent, and until it was
revealed that US Air is going to be the significant tenant and will be
required to pay more rent for a facility which is going to cost more than the
current facility.”
Makowski, who is not running for for a third term, accused Cordaro of
posturing in his bid for re-election as a Republican minority commissioner.
“You don’t operate like that,” Makowski said in a follow-up interview.
In addition to the region’s future, millions in federal and state funds
already granted are at stake if the project is delayed, said Makowski, who
serves as vice chairman of the airport board.
There will be enough money to build the terminal and to operate it, he
said.
He won’t leave Luzerne County a legacy of millions in airport construction
debt for taxpayers, he said.
The county assigned $6.5 million for the airport construction out of a
$24-million bond two years ago. But because of the federal and state monies
secured, “we won’t need all the money we’ve bonded,” he said.
As for the terminal building and other airport projects being his public
service legacy, he said he doesn’t care. “History takes care of itself.
“I won’t be cutting the ribbon. He likely will be around for the ground
breaking later this year, near the end of his term.
Airports not seen as driving economy
If so, Makowski will be turning over the first shovel of dirt for a
building that likely will be overbuilt and underused, said Paul Stifflemire
Jr. of the Allegheny Institute for Public Policy in Pittsburgh.
The thinking that an airport drives a region’s economy is faulty, said
Stifflemire, whose area of expertise for the institute is the airline
industry.
“Airports are not economic engines, they benefit from and serve an
existing economy.”
He said the question to ask the airport officials is: “Can you show us
another economy where building a new airport stimulates growth?”
Stifflemire advised against relying on US Airways to contribute to the
airport’s operation and pointed to the Pittsburgh International Airport, where
the airline is the major tenant.
The carrier “severely discourages” low-fare airlines such as Southwest
from looking at Pittsburgh because of what Stifflemire characterized as
predatory practices at its principal hubs.
There are about 25 open gates at the airport and US Airways has first
rights to many. If an airline wants to come in, US Airways will move into the
open gates and undercut the new carrier’s fares by $1, he said.
If the local airport officials want proof a new airport is not a magnet for
industry and development, look again at Pittsburgh, Stifflemire said.
“It’s the mindset of local politicians to have shiny new edifices that
seem to imply success,” he said. Pittsburgh has a capacity to handle 55
million passengers annually, but the latest tally was 15 million.
Banking on a productive future
The Wilkes-Barre/Scranton 2002 passenger count was 24 percent below the
265,140 it estimated as evidence to the Federal Aviation Administration to
undertake the expansion.
That can’t all be blamed on Sept. 11, Stifflemire said. “Either there is
demand for this thing or there isn’t.”
For 2001, the number of people boarding planes at the airport was 188,926.
For 2002, the total enplanements numbered 202,178. “If people are not flying
now they’ll continue to not fly for the same reason,” he said.
Airport Director Barry Centini remains optimistic for a turnaround. Like
Makowski, Centini is of the opinion Cordaro was crying wolf last month about
the risks of proceeding with the terminal construction.
“I’m sure they may be concerns to him,” Centini said. But the majority of
the board members are in agreement and acting cautiously as they go forward
with the expansion projects.
The first phase of the expansion is more than half complete and includes a
new parking garage and road network to direct travelers to the new terminal
and parking areas.
To abandon the project that’s been in the works for more than a decade
because “we don’t have somebody signed up” to lease the building is not an
option, Centini said. “This is not a mall where you get an anchor tenant.”
Airlines have gone bankrupt before and probably will continue to do so,
Centini acknowledged. “That’s the nature of this industry.”
As badly as other airports are faring, Wilkes-Barre/Scranton has been
fortunate since Sept. 11. “We lost one flight to Boston. We picked up brand
new service to Atlanta,” said Centini.
And, last week, the airport announced the May 4 startup of the Continental
Connection commuter service to Cleveland and Albany, N.Y.
A spokesman for Continental Airlines said by opening up the hubs to flights
from Wilkes-Barre/Scranton the company is hoping to create additional options
for travelers, namely more people flying Continental.
Centini said the airport has been talking to Northwest Airlines and others
about bringing service to Wilkes-Barre/Scranton. Northwest indicated the local
market is suitably sized for regional jet service, Centini said.
Currently the airport serves mainly regional jets rather than the
larger-bodied aircraft. The new terminal will accommodate both. But the growth
in regional jet service might benefit Wilkes-Barre/Scranton, which has flights
to airline hubs. The jets’ range also opens up markets within 1,000 miles .
The aggressive approach to luring new carriers also has been used in
securing public money for the estimated $64 million expansion. The bulk of the
construction funding is federal and state dollars.
“We’re not bankrupting Lackawanna and Luzerne counties,” said Centini.
“We have grants or will receive $19,652,859 in federal funds” for the
terminal.
The state has allocated $1,139,212 and is being asked for an additional
$5,035,851. The $4.50 passenger facility charge assessed travelers who board
planes at the airport will contribute $1,914,653. The airport and the counties
will split $6,175,063 three ways.
The operating costs, which Centini did not have on hand, can be covered, he
said. However, if the airlines “are not in position to pay the entire nut,
there may be subsidies on our part.”
Despite the assurances of fellow Makowski and Centini, Luzerne County
Commissioner Steve Urban needs more specifics before he said he will feel
comfortable. Like his counterpart in Lackawanna County, Urban said he is
running for re-election.
“The operational costs have been something that’s always been a concern to
me,” said Urban, who supports improving airport services.
He also understands Cordaro’s concerns. “He’s looking at this as a
business decision,” Urban said.
But to expand the airport just to leave a legacy, he said, is not what
matters.
“It’s about service and bringing in airlines and about promoting the area
economically.”
Jerry Lynott, a Times Leader staff writer, may be reached at 829-7237.