Tuesday, June 26, 2012
Open Board of Directors Meeting
San Bernardino Community College District
114 S. Del Rosa Drive San Bernardino, CA 92408
Present: Pete Aguilar, Dimitrios Alexiou, Don Averill, Deborah Barmack, Peter Barmack, Ken Coate, Bill Easley, Ray Gonzales, Dick Hart, Fran Inman, Mark Kaenel, Al Karnig, Lowell King, Temetry Lindsay, Neil Macready, John Mirau, Charlie Ng, Tom Nightingale, John Prentice, Larry Sharp, Paul Shimoff, Steve von Rajcs, Phil Waller and Ray Wolfe.
Guests: Robbie Broedow, Mayor Pat Morris and Vicky Ostermann
Announcements: 1) The CTC Reception will be held on Wednesday, June 27, 2012 from 5p.m. to 7:30 p.m. at the Maloof Foundation. 2) Several Inland Action members attended a meeting with Dr. Tomas Morales, newly appointed President of California State University, San Bernardino. Dr. Morales is looking forward to working in partnership with Inland Action as he takes over his new responsibilities. 3) The Inland Action office phones have been bogged down with messages that were directed there in error. The situation is now resolved. Please note that the office staff is most easily contacted by their respective cell phones.
M/S/P: Minutes of the June 19, 2012 meeting
Dr. Dick Hart introduced Jess Romo, LA/Ontario International, Airport Manager.
Jess Romo discussed the financial aspects of Ontario Airport. As a resident of Claremont he and his family are challenged by ticket prices and flight conveniences of LAX vs. Ontario. He discussed that there are many factors affecting the recovery of Ontario Airport and made it clear that the ownership issue of the Ontario Airport is a policy/political question which he would not address.
Since 1998 when Ontario was remodeled the cost structure went from $5.00 per person to $9.00. Although an impact to the carriers, airlines typically focus on the larger costs -fuel and personnel. Today Ontario‘s cost to its carriers is less than it was in 2007 and the landing fees have not changed very much since that time. Ontario’s decline cannot be solely based on the fees.
The following are some of the other cost comparisons given:
Cost per Sq. Ft. Landing fees (per 1,000 lbs.)
LAX $110 $ 4.46
ONT $156 $ 3.70
Consolidation of Ontario’s two terminals has been reviewed in order to save money but was rejected as the wait time upstairs at the TSA segment would, during busy times, be in excess of 1 hour. Instead, they have closed the furthest east and west wings of the terminals.
The employees are Los Angeles City employees as is governed by the Los Angeles City Council and they receive approximately 40% more in compensation than they would in our area. If allowed, many departments could be contracted out as they do at the San Diego Airport but that is up to the L.A. City Council. Ontario has now made a 42% reduction of its staff (from 430 to 250 employees).
LAX flight traffic has improved but has not yet rebounded from 9/11. In 2001 LAX serviced 68 million passengers but by 2002 they dropped to 52 million. At year end 2011 they had increased their numbers to 60 million-still less than pre 9/11. The declines in travel and increased costs have caused airlines to be sold and merged to survive. Since that time airlines have been, and continue to be, averse to risk. Since 2001 this has caused them to pull back and they have been retreating to their hubs. The hub airports are experiencing recovery while others will take more time.
Our area is unlike any other in the country as we have many (5) airports in our region. The drop in passenger service has been experienced in virtually them all. The Burbank airport (which has the lowest fees of the 5) lost 27%. John Wayne lost 10%, LAX lost 18% and Ontario lost 36% (Long Beach did not experience a significant change).
In retrospect the wait and watch approach did not work as Ontario’s numbers dropped. They now have hired a marketing manager who will, by the end of summer, have recommendations to attract both airlines and passengers. Incentives such as reduced airline rental rates may be considered. The anticipated budget for marketing Ontario is approximately $1 million.
Updated rates and information can be obtained on their web site: www.lawa.aero
A Q&A period followed.
Meeting adjourned at 8:35 a.m.