The Dallas City Council's Transportation and Environment Committee met Monday afternoon to receive a briefing on the Love Field financial situation from city administrators.  The briefing comes on the heels of a series of news reports that revealed the airport spent $20 million more than it took in during 2003 and 2004, has not raised leases on office space and corporate hangars for seven years and has left landing fees unchanged since 1987.

Aviation Director Kenneth Gwyn and Dave Cook, the city's chief financial officer, provided the council with a detailed overview of the airport's operations, fees, debt structure and financial plan. They also compared Love Field's fee structure to other mid-sized commercial airports across the country.

After the presentation and question and answer session, committee members voted in a straw poll to recommend raising landing fees to 55 cents per 1,000 pounds from 35 cents per 1,000 pounds. The 35-cent rate has been in place for 19 years, and was originally kept low as an incentive for quieter jets to operate at Love Field. That incentive went away on December 31, 2003, though no rate increase has been proposed until now.

If the full council passes the fee increase at its February 22 meeting, the rates would go into effect on April 1, 2006.

Councilman Ron Natinsky, who represents Far North Dallas, said the airport's business model is turned upside-down. Council members then asked city administrators why the airport's customers (meaning major airlines) were not being asked to shoulder more of the burden there, while passengers (many of whom are from Dallas and start their travel here) are being asked to pay higher parking rates and concession prices.

Angela Hunt, whose council district includes Love Field, said she's troubled by a multi-million dollar loan from the Aviation Department to the city's 911 fund. Ms. Hunt also said she agrees that the airport's business model is out of alignment, and has serious questions about the landing fees at Love Field, which are well below the national average and well below airports like Chicago's Midway, which charges $1.36 per 1,000 pounds and Houston Hobby, which charges $2.59 per 1,000 pounds.

The hearing was attended by a number of concerned citizens, including representatives of the Love Field Citizens Action Committee.

In 2004, credit rating agencies Standard & Poor's and Moody's Investors dropped the airport's bond rating, saying it had used reserve funds too often to cover its expenses. City staffers maintain that even as the airport's costs have exceeded its revenues, the department remains healthy. 

Council members are scheduled to receive a briefing on the Wright Amendment at their January 18 meeting.