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Mon, Dec 01, 2008

SNA Going Ahead With $652 Million Expansion Project

First Major Airport Improvements Since 1990

The proposed $652 million expansion project at John Wayne-Orange County (SNA) airport is underway, designed to accommodate airport growth and relieve overcrowding during peak travel times.

Plans include a new third terminal with six commercial gates, renovation of the two existing terminals, a marketplace with restaurants and shops, a new 2,000-space parking facility, permanent facilities for commuter airlines, a customs and immigration facility, and runway resurfacing.

Orange County Board of Supervisors chairman John M.W. Moorlach said, "We've sort of outgrown the original improvements. We were looking to accommodate 8.4 million passengers a year back in 1990. We are way beyond that now. Adding six gates makes a whole lot of sense."

Demolition crews have already begun tearing down a 1,200-space parking facility to make room for improvements. Construction of the 250,000-square-foot terminal is slated to commence in mid-2009, with the entire project scheduled for completion in 2011, the Los Angeles Times reported.

With $91 million in annual revenue, a $300 million cash reserve, and a $4.50 per passenger facility charge expected to raise $321 million over 17 years, airport officials are confident they have adequate financing for the project.

Not surprisingly, the plans have met with some opposition from local neighborhood groups and others who maintain the airport expansion is not needed.

Airport officials disagree, saying the new terminal will accommodate expected growth up to the 2011 passenger cap of 10.8 million passengers annually and relieve overcrowding and long security lines during the busiest travel periods, the Times said.

"We need the project. We've seen continuous growth overall," airport spokeswoman Jenny Wedge said. "Even if our passengers drop 10%, we will still be putting more passengers through the airport than the original terminals were built for."

FMI: www.ocair.com

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