McCarran plans new terminal

Thursday, June 17, 1999 | 12:08 p.m.

McCarran International Airport executives are emphasizing "international" in their plans for a new $175 million terminal.

Clark County Director of Aviation Randy Walker says the terminal could be built by 2004 and could be paid for by raising passenger fees at the Las Vegas airport.

Walker told the Las Vegas Sun Editorial Board on Wednesday he backs pending federal legislation that would potentially double passenger facility charges -- a $3 fee attached to most of the plane tickets sold to passengers leaving Las Vegas.

If the Senate approves the Aviation Investment and Reform Act for the 21st Century, known as AIR 21, McCarran would be authorized to raise the passenger facility charge.

This week, the U.S. House approved legislation offered by Rep. Bud Shuster, R-Pa., chairman of the House Transportation and Infrastructure Committee, for AIR 21. A Senate bill with some of the same provisions is sponsored by Sen. Harry Reid, D-Nev.

AIR 21 is important to McCarran because it allows airports to double their facility charges. And if McCarran were allowed to collect $6 per ticket, the airport would have the leverage to pay for a new international terminal, to be near Russell Road and Tamarus Street.

At present, McCarran can handle the approximately 2 million passengers a year that arrive in Las Vegas from foreign countries.

But Walker explained that his planners have to envision what the airport's needs will be 2 1/2 years ahead, the approximate amount of time it would take to plan, finance and build a new facility.

Walker said he anticipates Northwest Airlines will add a new flight from Tokyo giving Las Vegas daily service from Asia. Bilateral talks between the United States and Great Britain, which bogged down last fall, are expected to start up again, opening opportunities for direct service from London.

Other airlines have made serious overtures to Las Vegas to provide direct service from Italy, other cities in Japan and other Asian destinations.

Walker said international carriers often cluster their flights in particular time periods. At the present time, the airport's Immigration and Naturalization Services office can only handle about 400 passengers an hour -- the equivalent of the capacity of one Boeing 747.

Walker said if more than one foreign flight comes in per hour, U.S. Customs and the INS would be overwhelmed.

Airport officials plan a $3 million remodeling as an interim fix for the international gateway, known as Terminal 2. But Walker said the long-term solution is to build a new international terminal.

The site is just north of McCarran's new D gates. The international terminal would have its own parking area and street access off Russell Road, which would be realigned north to accommodate new buildings and parking lots.

Walker said the airport also is looking at the possibility of expanding the D gates by 2004. He explained that several airlines anticipate growth in Las Vegas in the years ahead. While some gates are empty today, they won't be in four or five years, he said.

If Las Vegas-based National Airlines is successful with its growth plan, it would take several of the D gates. When American Airlines completes its acquisition of Reno Air, it will move to the D gates.

The C gates are nearly at capacity with Southwest Airlines' expansion.

America West Airlines is adding new aircraft and new flights for the Las Vegas market in the A and B gates.

In addition, Walker said some of the A and B gates will go off line for several months while the airport refurbishes the tarmac at those terminals.

When the new international terminal comes on line, Terminal 2 would be turned over exclusively to charter flights, which also are increasing.

If the AIR 21 legislation fails in the Senate or if a compromise bill doesn't emerge for the president to sign, Walker has other funding options available for the international terminal. But he admitted it would be a harder sell to get funds approved.

While projects funded by PFCs only have to get a green light from the Federal Aviation Administration to be built, projects built from the airport's enterprise fund would have to be approved by a majority of airlines serving McCarran.

It's doubtful the air carriers that fly domestic routes would be enthusiastic about supporting an international terminal.

Procedurally, Walker could proceed without the airlines' blessing after a two-year delay. That could be too late to meet the airport's demands.

Funds for improvements could come by raising gate and counter rentals for the airlines and increasing the airport's percentage of revenues on concessions. The airport also could raise the tax rate on jet fuel.

But Walker believes the best solution is in increasing the PFCs through the AIR 21 legislation.

If the AIR 21 bill is passed, it also would generate funds for FAA air traffic control equipment, collision avoidance systems for cargo planes and would alter landing slot rules at Chicago's O'Hare International Airport and at New York.

National Airlines has applied for landing slots at O'Hare.