Airport parking fees to increase - Business

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Aug. 01, 2008
Copyright © Las Vegas Review-Journal

Airport parking fees to increase

Ground fares also set to rise as deficit grows

By BENJAMIN SPILLMAN
REVIEW-JOURNAL

Parking fees at McCarran International Airport -- along with charges for cabs, limousines and buses -- are about to go up, as much as 50 percent in some cases.

The Clark County Department of Aviation, at the behest of troubled airlines who argue they pay more than their fair share to run the airport, will increase transportation and parking fees Sept. 9 in an attempt to eliminate an operating deficit in the parking and roadways segment of the budget that grew to $7.4 million in 2007.

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That year airport operators spent $43.3 million on parking and roadways but took in just $35.8 million in parking, cab, limo and bus fees. A fee increase would boost revenue to $46.4 million in 2008.

"We are not looking to gouge the resident here; we are looking to break even for the cost of operation," said Rosemary Vassiliadis, deputy director of the Clark County Aviation Department.

Parking fees will increase an average of 27 percent, but people who park in the valet section will face the greatest increase. The daily fee for valet parking will increase from $16 to $21.

Long-term parking, which applies to most of the vehicles using the parking garage, will increase from $12 to $14 per day. Economy parking, which includes a surface lot farther from the terminals, will increase from $6 to $8 per day.

Parking in overflow areas, lots that are available only after the economy lot is full, will remain free. But passengers can't choose to park in overflow lots. They only get access during peak times when there are not enough spaces in paid parking.

The parking rate increase at the airport is the first since 2005. Since then, the cost of repairing and maintaining roads and parking areas at McCarran has increased almost 39 percent, according to a memo from Alan Stewart, assistant director of finance and business for the airport.

For limousines and buses, access fees haven't gone up in five years. For cabs, the fees haven't increased since 1996.

For taxicabs and other vehicles carrying one to eight passengers, the fee will increase from $1.20 to $1.80 per trip. Nine- to 15-passenger vehicles fees will increase from $2 to $3. For 16- to 30-passenger vehicles the price goes from $3 to $4.50. Vehicles carrying 31 or more people will face a fee increase from $10 to $15.

"Those fees are always passed on to the end user," said Charlie Horky, owner of CLS Nevada, a shuttle, limousine and car service company. "I've never had a customer say, 'I don't want to pay that.' "

Horky said the price of fuel is a much larger concern than airport fees. The company has already added a $6 surcharge to account for high fuel costs.

The airport use fees, Horky says, are reasonable.

"The airport is a business, and they run it very well," he said.

The fees included in the increase are just a small part of how the airport gets funded. Overall, the airport operates in the black even though, at least for now, segments such as parking and roadways are in deficit.

In fiscal year 2007, McCarran took in $332 million in revenue. The largest revenue category was $112.8 million for building and land rentals, which includes ticket counters and other space in the terminals.

The second largest category was concessions at $48.2 million. Revenue from slot machines was third at $40.8 million followed by landing and aircraft fees at $37.6 million.

Ground transportation was just $10.1 million. Parking was $28 million.

Even after the increase, McCarran will remain at or near the bottom of the pack in most fee categories among similar airports.

San Francisco International Airport was the most expensive to park at among comparable airports. It costs $45 per day for valet parking and $13 a day for economy parking.

San Francisco also has the highest cab fees, at $4 per trip.

Spreading more of the burden for running McCarran has long been a goal of the airlines. But the drive to do that has grown more intense in recent months. The cost of jet fuel has doubled in the past year and many airlines are cutting routes, laying off workers and losing money.

"We need to turn over every stone and look for every nickel that we can," said Linda Macey, manager of properties for Southwest Airlines, the carrier with the largest presence in Las Vegas.

Airlines have also asked McCarran officials to hold off on a plan for a new terminal. The airport administration and Clark County Commission, however, rejected that request last month when they approved a construction contract worth $1.2 billion for a third terminal building to open in 2012.

Still, Macey said Clark County aviation director Randall Walker has agreed to reconsider other projects in the capital improvement plan.

"Every penny makes a difference," Macey said.

Contact reporter Benjamin Spillman at bspillman@reviewjournal.com or 702-477-3861.

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Please enter your name Name: Please enter your email Email: Please enter a comment COMMENTS : (word count limit is 300) You have reached the maximum number of words allowed Current Word Count: Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background. JL wrote on August 01, 2008 11:15 PM: James, what have YOU been drinking? You may want to be sober when you post on a public forum. For those of you parking in the hotels on the strip, I will tell you that I know more than one person who has come back to no car. The hotel towed the car. It may not be a problem for 3 or 4 days but more than a week, you're taking some chances. Finally, what hotel on the Strip has a free shuttle to the airport? None that I know of. I do not believe that last post. Tooey wrote on August 01, 2008 04:55 PM: The morons skimming the public for parking fees should be tarred and feathered. This is ridiculous. The price should be no more than $6 a day, maximum. McCarran is one of the worse designed airports in the country and the prices at the rip-off artists' "business" is ludicrous. Make the damn county commissioners pay, why do these morons get free parking? It stinks! Smartparker wrote on August 01, 2008 04:14 PM: Hey Local, I actually did this acouple months back. Family Had a real early departure, so drove down to strip and Parked in free Casino lot. Had breakfast and took their shuttle to airport. I was gone three weeks to Europe. Came back and car there safe and sound and all worked out slick as a whistle! Local wrote on August 01, 2008 04:08 PM: Here is a little trick. If I am going on a week trip I park at a local casino (on or off strip) and take their usually free or very low cost shuttle to the airport. Cheaper than a cab and no gouging parking fees at the airport. These days you have to arrive so early at the airport anyway, unless its really odd departure time for flight this works really well. When I return, just call the hotel from cell phone whjile waiting for bags and shuttle picks me up, viola! James wrote on August 01, 2008 12:04 PM: Some of the people here in Vegas consumed to much of that Celine Dion water and are now going into foreclosure. Do you think it could have been her singing? dave wrote on August 01, 2008 11:51 AM: I flew in,went to the taxi area and saw the 1/4 mile long line and the charges for a taxi. It was cheaper for me to rent a car(30% in tax and fees) to go home. I didn't live to far away from the car rental center to return it the next day. The gouging by LV Govt. and Corporations has become out of control. Everything in Vegas has a fee attached (except casino parking). We moved to Springfield Mo. last year. We have more money in my pocket here at the end of the day. Went to the Lonestar concert here, it set us back $20 each for 5th row seats. What would Vegas gouge for this? $100 maybe $200? I recall going to Celine Dion 4 years ago and paying $120 plus fees each nose bleed seat. I remember they would not allow my wife to bring a water in. I had to buy one inside for $5. Gouging has lasting impressions. Adam wrote on August 01, 2008 11:40 AM: Wow, at least now I know why there will never be a train linking the airport with the strip. The airport is collecting too much money on all those horrible cab trips. Not only will the cabbies block it, the govt will too. John wrote on August 01, 2008 10:09 AM: Park at a casino, where it's free, and take a cab to the hotel. Much cheaper! Chris wrote on August 01, 2008 09:32 AM: Seems to me that they could just allocate some of the slot machine revenue to cover the parking rather than increase the fees paid by residents. As noted, the airport is not losing money overall and parking was just increased in 2005 while the cab fee hasn't changed in 12 years. Certainly seems to be a disproportionate hit to the local here... Billy Bdell wrote on August 01, 2008 09:00 AM: I own wwwloganairportvaletparking.com a airport valet parking service in Boston. When my customers complain about paying $119 a week for real valet parking I will tell them to go to San Francisco which your story says charges $45 a day for valet parking. I should go up on my rates. ha Ha Billy Bell Read All Comments