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Wednesday, June 15, 2005

Southwest considers move to Boeing Field

By JOHN COOK AND DAN RICHMAN
SEATTLE POST-INTELLIGENCER REPORTERS

Southwest Airlines is considering uprooting its operations at Seattle-Tacoma International Airport and moving to Boeing Field, a proposal that could add dozens of commercial flights each day to the 77-year-old county-run airport.

Southwest has been exploring the possibility for nearly two years, but the talks have accelerated in recent weeks as the airline looks at ways to reduce costs and expand the number of flights in Seattle.

 Map showing airports

"Historically we have been constrained by space (at Sea-Tac), and now certainly going forward, cost is a factor," said Southwest spokeswoman Marilee McInnis. "The cost per in-plane passenger is due to rise significantly" because of rising fees at Sea-Tac.

As a low-cost carrier with about 30 daily flights from Seattle, Dallas-based Southwest is looking for ways to cost-effectively expand operations here, McInnis said. Boeing Field, also known as King County International Airport, is one of those options.

"Conceptually, we are very excited about the idea of working with King County," said McInnis, adding that the airline is still evaluating the costs of moving. The strategy would not be out of the ordinary for Southwest, which uses smaller airports such as Chicago's Midway International Airport and Dallas' Love Field.

Transforming Boeing Field into a low-cost commercial airline hub drew immediate criticism from some community leaders who say it will create traffic bottlenecks, aircraft noise and unnecessary competition with the recently renovated Sea-Tac Airport. King County Councilman Dwight Pelz called it a "terrible idea" while Councilman David Irons said he questioned the need for the "additional roar of commercial flights in this area."

Georgetown, to the airport's north, and Tukwila, to the south, are the two neighborhoods over which most Boeing Field flights pass. Cargo jets from delivery companies UPS and DHL use the facility late in the evenings and early in the mornings, with corporate jets and smaller aircraft flying throughout the day.

"The airport has developed a lot of rapport with the community representatives," said Edwin Hanson, a longtime representative from the West Seattle community to the airport's noise-control roundtable. "They get tested quite often -- and they certainly will be tested over this."

Jim Combs, the group's chairman, agreed.

"I think there are a lot of unknowns on the table, and there are some potential costs to be addressed."

While traffic, noise and competition issues must be investigated, King County Executive Ron Sims said yesterday that the county must explore the "once-in-a-generation opportunity." He called Southwest an "excellent candidate" for the airport -- a profitable carrier that buys only Boeing airplanes. Furthermore, he said that a commercial airline could add thousands of jobs to the region and keep airfares low.

In an interview, Sims said formal negotiations have begun with Southwest. Other airlines have expressed interest in the airport, though Sims declined to name them. He added that Boeing Field -- just 15 minutes from downtown Seattle -- has limited capacity and space so it could never be transformed into a Sea-Tac type of airport.

But at the same time, Sims said the airport is underutilized.

"It is an airport that needs to break out of its underutilization and its status and continue to grow and be a contributor to the region's economy," said Sims, adding that public meetings on the proposal are being planned. "Our goal is to make sure we can work on noise levels and traffic for the adjacent communities."

If a deal is secured, Sims said there would be a substantial private investment by Southwest in order to renovate the airport for commercial traffic.

Boeing Field recorded about 300,000 takeoffs and landings last year -- down from about 425,000 10 years ago. The last scheduled air service at Boeing Field ended in 1971, according to HistoryLink.org.

With additional security costs implemented after the Sept. 11, 2001, terrorist attacks and damage from the Nisqually Quake, the airport has suffered financially in recent years. Harold Taniguchi, director of the county's Department of Transportation, said the airport's financial plan is "not great" with expenditures outpacing revenue. To keep the airport in the black, Taniguchi said the county has been forced to raise fees.

Because of those fee increases and other issues, some Boeing Field tenants expressed muted enthusiasm for the idea of adding commercial traffic.

Peter Anderson, president of Galvin Flying Services, whose family has operated an air services company at the airport since 1930, said significant passenger service would change the face of the airport. But that is not necessarily a bad thing, he said.

"My first blush is that I see visions of sugar plums dancing in my head and I also see a big black cloud where suddenly we don't have an airport we can operate out of anymore because it becomes Sea-Tac north. I see both ends of it," he said. "If there is a way for additional revenues to allow the businesses at the airport today to survive, allow the airport to survive and allow neighboring communities to get some meaningful relief, I think there is an opportunity ... for everybody to benefit from it."

Shelton Lyter, a field services supervisor for DHL Express at Boeing Field, said he thinks the airport could easily handle Southwest's additional traffic.

"If you start talking about several airlines moving here, though, that would be a different thing," he said.

Taniguchi said that is not really an option for the 600-acre, two-runway facility. "There's not a lot of available space," he said.

Officials at Sea-Tac Airport, who have spent millions of dollars on a recent renovation, could lose significant revenue if Southwest Airlines decides to leave.

Bob Edwards, commission president for the Port of Seattle, which owns and operates Sea-Tac, said he was surprised to hear Southwest feels cramped at the airport. He said that Sea-Tac is expanding its capacity to handle 48 million passengers a year, up from 28 million, in part through the airport's third runway, which is more than half-built.

"That's enough expansion to accommodate growth over the next 20 years, so Southwest's plans are a surprise in that sense," Edwards said.

He said Southwest's operations represent about 8 percent of those at Sea-Tac. Leaving Sea-Tac would mean shifting jobs away from Sea-Tac, creating higher noise levels in new neighborhoods and implementing an enhanced security infrastructure at Boeing Field.

"I'm hoping wise heads prevail -- I don't think it's a wise proposal," Edwards said.

A move by Southwest also could disrupt the competitive landscape, placing a low-cost carrier closer to downtown Seattle. That could have an effect on nearly every airline at Sea-Tac. Alaska Airlines spokeswoman Caroline Boren declined to speculate on the competitive effects a move by Southwest might have.

"We'll certainly be looking at the potential impacts, along with everyone else," she said.

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P-I reporter John Cook can be reached at 206-448-8075 or johncook@seattlepi.com
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