Stewart Air Fees Waived

The Port Authority of New York and New Jersey has waived its fees and rental payments at Stewart International Airport for six months in a bid to retain air carriers.

“The airlines’ current financial conditions, exacerbated by high fuel costs and weaker economy, has resulted in carriers scaling back air service; particularly at secondary airports like Stewart, there’s a threat of further consolidation if we don’t take steps to stem airline loses,” said Susan Baer, deputy director for aviation at the authority.

The cost to the Port Authority will be about $1 million.

The authority initially offered such waivers to airlines as part of a marketing push to attract more air carriers to the airport in Newburgh, N.Y., after it purchased the lease of the airport last year for $78.5 million. Those waivers have since expired. 

“The philosophy was to entice with lower fees resulting in greater choice of carriers and destinations and then have the airport reap the financial benefits from increased passenger activity which generates greater revenues,” Baer said.

Between the problems in the airline industry and the loss of incentives, the airport has lost some flights and is expected to lose more, she said. Skybus Airlines no longer flies to Stewart and AirTran Airways plans to stop flying there in September. Both JetBlue and Delta Air Lines plan to cut some flights to the airport. 

The number of passengers using the airport in 2007 nearly tripled compared to the previous year, rising to 915,000 from 310,000, according to the Port Authority. This year the authority projects the number of passengers will fall to 725,000.

The authority plans to spend $500 million on capital improvements over the next 10 years at the airport and is studying other options to expand service there, including redeployment of flights from its airports in New York City and increased cargo operations.

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