Springs airport trims 2011 budget

The Colorado Springs Airport is cutting its 2011 budget by 3.4 percent from this year’s spending level, partly by not replacing two retiring police officers who work at the airport, to keep the fees it charges airlines nearly level.

Airport officials expect to spend $21 million next year, down from a budget of $21.8 million this year, which reflects the reduction in police staffing as well as savings from the airport’s employees paying a greater share of their health insurance costs. The airport also anticipates lower maintenance costs for its fleet of snow removal equipment, which it has spent $3 million replacing during the past three years.

“We are always looking for ways to reduce expenditures throughout the year to keep our cost per passenger as low as possible for the airlines so we keep the air service we have now and try to attract additional service,” said Gisela Shanahan, the airport’s assistant director for finance and administration.

Airport revenue is expected to decline by 3 percent from this year’s budgeted total to $21.7 million, mostly as a result of US Airways halting service early this year to Colorado Springs. The departure had not been factored into this year’s budget as the airline announced its plans after the budget was sent to City Council, though the airport cut spending as a result, Shanahan said. Council will consider the airport’s 2011 budget on Nov. 23.

The airport operates as a city enterprise, receiving no city tax support, though it does receive federal grants to pay for major construction work on runways and taxiways as well as a new baggage screening system scheduled for installation next year.

Airlines are expected to pay fees totaling about $8 per passenger next year, up 2.6 percent from $7.80 this year. Passenger numbers are expected to rise 3.1 percent in 2011 to 910,442, ending a three-year decline that will likely leave the airport’s passenger traffic this year at the lowest level in 16 years. Shanahan expects new weekly flights by Allegiant Air to Phoenix-Mesa Gateway Airport and Long Beach, Calif., to generate next year’s traffic gains.

Those gains are already showing up in the airport’s latest passenger traffic totals. Traffic fell in September from a year earlier by 4.5 percent, the smallest amount since April, as passengers on Allegiant jumped 40.8 percent from a year earlier. Allegiant added the new flights Sept. 15. Traffic last month on the six airlines still serving the Springs was up 0.6 percent from a year earlier.
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