Story last updated at 5/15/2008 - 9:42 am
Airline apologizes to board for letter pressuring airport
The Juneau International Airport Board heard an apology Wednesday night when Alaska Airlines turned 180 degrees from its recent letter applying "pressure" on the airport manager to not pass the cost of the energy crisis to tenants.
"Let me apologize for the confusion and concern that was generated from my letter," said Mookie Patel, airport affairs manager for Alaska Airlines.
His May 5 letter stemmed from "unprecedented" economic pressures on airlines as oil remains above $100 per barrel, he said.
In the letter, Patel told Airport Manager Dave Palmer to delay terminal expansion plans and conduct a budget review to find money to pay for energy cost increases without passing it on to tenants of the city-owned airport in a "shrinking community."
Patel wrote in a bolded font, "Passing the cost on to the tenants is not an option," before saying the airport board should act immediately to find ways to reduce operation costs.
On Wednesday, Patel said he was only trying to start a "conversation" with the letter.
Commenting on the media's portrayal of Patel's letter, board member Gordon Evans said this was a public relations problem for both the airport and Alaska Airlines. People are concerned that Alaska Airlines will pull out, he said.
"Frankly, I was insulted by the tone of the letter," Evans said. Other board members echoed Evan's feeling. The board members who spoke told Patel they appreciated the revised statement.
Patel said that Alaska Airlines was actually supportive of plans to expand and update the airport.
"Our commitment to the state of Alaska and the city of Juneau is unchanged," Patel said. "This project is consistent with our efforts to provide a quality service while reducing costs."
Board President Ronald Swanson said Palmer, Patel and the board had worked out the issue and the board had recently asked the Juneau Assembly for $300,000 from the cruise ship passenger head tax.
For now, the airport will not increase rent, proffer fees or include surcharges on tenants' rent to cover crisis-level power costs. Electricity is included in lease payments. The additional cost is short term and until the crisis plays itself out, the cost is unknown at this time, Palmer said.
Money to pay the huge increase will come from the airport budget and the end cost will be considered in the following year's budget, Palmer said.
During board conversation, Evans offered Alaska Airlines a way to reduce costs and improve service: Cut back on flights to the East Coast and the Midwest. The Seattle-based "monopoly" should concentrate on serving its namesake, he said.
"Return great service to Southeast Alaska," he said.
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