Palmdale Airport Budget Lands in the Red, Once Again

Ledford The LA/Palmdale Regional Airport will operate at a deficit in the 2012 fiscal year, as it struggles to attract a long-term carrier that will provide scheduled commercial service. The new airport budget approved by the Los Angeles Board of Airport Commissioners projects a $2.8 million spending gap for the airfield. The fiscal year began on July 1. Historically, the airport has lost money for its owner, Los Angeles World Airports. It operated at a deficit in the 2011 fiscal year, as well. Palmdale has a spotty record of scheduled air service, and the result has been to make up the deficit from the budget for Los Angeles International Airport. The last carrier to operate at the Palmdale airport was United Airlines, which pulled out in December 2008 after offering flights to San Francisco for about 18 months. A $900,000 federal grant partially subsidized the airline’s service. LAWA, however, is exploring ways to boost revenues from the Antelope Valley regional airport, where it owns 17,000 acres. Among its considerations: attracting alternative energy projects and having the City of Palmdale take over the lease for the airport terminal. The Palmdale airport budget calls for $2 million in revenues from building and land rentals, and $4.8 million in expenses. The largest expenditure is $4.1 million for materials, supplies and service to maintain the acreage LAWA owns, said agency spokesperson Diana Sanchez. “This year we will be doing some deferred maintenance to the pavement and the buildings that has been put off for a number of years,” Sanchez said. Palmdale Mayor Jim Ledford is optimistic that in the next few months the airport commissioners will give the final okay for the city to operate the airport. The city is better suited to bring in an air carrier that can serve the military personnel and contract workers coming to the Antelope Valley for the bases and aerospace companies located there, Ledford said. “We have a better sense of the market here than a jurisdiction 60 miles away,” Ledford said. The city’s cost to take over the lease and maintain the terminal building is not known, Ledford said, noting the city wanted to have LAWA relinquish its certificate to operate first. “We are not spending any resource until we know that we can control our destiny,” he added. LAWA continues to move ahead with building alternative energy projects on portions of the land it owns. The airport commissioners in December approved 10 companies as qualified to build such projects. The airport anticipates awarding a contract to start construction later this year.