AIRPORT VISION READY FOR TAKEOFF; OFFICIALS AGREE TO MAKE PALMDALE REGIONAL HUB.

Byline: Beth Barrett Staff Writer

Los Angeles and Palmdale officials agreed Friday to work together to turn Palmdale Airport into a regional hub serving the San Fernando and Antelope valleys, the first such cooperative step after years of neglect.

The heart of the deal is that the Los Angeles World Airports department will provide easements to improve access to the Palmdale Airport, build a new cargo ramp and make other improvements as well as lend its negotiating muscle to try to get airlines to use the airport, officials said.

With Federal Aviation Administrator Jane Garvey endorsing the project, Los Angeles Mayor Richard Riordan said the city must pursue a regional aviation solution and is prepared to spend significant amounts of money and energy to ensure Palmdale can grow to handle some 4 million passengers a year by 2010, and more than 7 million passengers by 2020.

``If we don't do this, if we do not expand all of the airports in the region, we will still have the demands with passengers and cargo, and LAX will become every day like it is on Christmas Eve and Thanksgiving Eve. It will become impossible,'' Riordan said.

``It is in everyone's best interest that Palmdale grows by its greatest possible ability.''

Airport officials said the intention is to form a working group to map out a growth strategy for the airport, which Los Angeles runs with the U.S. Air Force, adjacent to a huge tract of city land purchased years ago for an international airport.

In addition, a ``cooperation agreement'' that Palmdale and L.A. officials anticipate signing in 30 days calls for Los Angeles to give up about $12 million in easements to allow the state to build a bypass road to the airport. That Route 138 bypass would run from Highway 14 to the airport, then continue to Victorville, in San Bernardino County.

The key to the future of the airport, officials agree, is cooperation between Los Angeles and Palmdale representatives in persuading commercial and commuter airlines, cargo services and perhaps a maintenance contractor to operate out of Palmdale.

``We've got the commitment for the baby,'' said City Councilwoman Ruth Galanter, who has long pushed for Palmdale and other regional airports rather than the proposed expansion of Los Angeles International Airport, which is in her district.

``Now we have to make sure it grows healthy and quick.''

Lures for airlines

Airports department interim Executive Director Lydia Kennard said a working group, which is to include airlines officials, will consider incentive packages to operators willing to fly out of Palmdale.

``Incentives are possible,'' said Kennard, who was instrumental in the recent expansion of Ontario International. ``We have to negotiate with the airlines like we did there, to show how it can be a win-win for the cities and for the airlines.''

Kennard said financial incentives, as well as a planned intensive marketing effort for Palmdale, could be financed through a combination of LAX-generated revenues and FAA grants.

Airport officials earlier this week announced a $112 million face lift for LAX using parking and concession fees.

Kennard said that some airline operators likely will eventually find the bigger airports in the region too costly, and that Palmdale should be able to offer them an attractive alternative.

Airline officials, who for years have said there is not the passenger demand in the Antelope Valley to support an airport, have begun talking about it as a possibility, Kennard said.

``If they want to put together something to encourage people to fly out of there, we'd be glad to be part of that,'' said Neil Bennett, western regional director of the Air Transport Association, a trade association for airlines.

``We've never objected to Palmdale. It's just that there was not a viable customer base, and it would have been hard to pay landing fees.''

Future growth in region

The agreement between Palmdale and Los Angeles is the first outcome of a study reported in August by the Daily News that concluded the Palmdale airport would be viable as a regional hub.

The $231,000 report by Hagler Bailly Services Inc. of Arlington, Va., assumed continued population and economic growth in the region, in addition to better highway access and airlines' willingness to serve the airport.

The report estimates, however, it would cost about $200 million in airfield, access and parking improvements to expand the airport to 4 million passengers per year, and about $240 million to expand it to about 7.3 million passengers annually.

Kennard, however, said it is premature to spend hundreds of millions of dollars on Palmdale until a marketing and investment strategy is in place and the region grows enough to support the airport.

``We could dump $1 billion into Palmdale. We could build a $300 million facility, and we still wouldn't get a 100-million-a-year airport,'' Kennard said, stressing the incremental nature of airport development.

Officials are pleased

Palmdale officials said they were pleased both with the ``cooperation agreement'' and with Los Angeles airport officials' pledge to lend marketing muscle to promote the airport, which currently doesn't even offer commuter service.

``How Palmdale is perceived by the outside world will change,'' Mayor Jim Ledford predicted, adding demand for an airport is increasing. ``The Antelope Valley is where people are moving.''

Air Force Lt. Col. Robert Catlin said the airport's plans for expansion are compatible with the existing joint-use agreement, which allows up to 50 operations per day at the facility, known as Plant 42. The agreement technically could allow up to 400 operations a day, pending completion of environmental reviews, he said.

The Palmdale proposal, however, does not significantly affect the debate over expanding LAX, several officials said.

Riordan wants the existing four runways at LAX reconfigured so the number of passengers accommodated each year could be increased from about 61 million to 92 million, while cargo capacity would also increase.

The airport is also studying other options, including adding one or two additional runways.

Galanter and others still oppose the LAX expansion, saying the airport is already too crowded, causing unacceptable problems for nearby communities.

THE FACTS

Points in the Palmdale Regional Airport Accord:

Officials accepted the findings of a study by Hagler Bailly Services which found that, assuming continued growth in the Antelope Valley, Palmdale airport could grow to 4 million passengers a year by 2010, and to 7.3 million a year by 2020.

A cooperation agreement is about to be finalized, which provides that L.A. would give up about $12 million in land easements for construction of a better access road to the Palmdale airport, among other concessions.

The city airports department would complete a new cargo ramp by the end of 2000.

An aggressive marketing strategy for Palmdale is to be pursued by the airports department, including efforts to attract airlines, but also to market existing terminal facilities and properties near the airport.

A working group is being established to guide the strategy for bringing commercial, commuter, cargo and other aviation services to Palmdale.

Officials will work together to encourage high-speed rail access to Palmdale.

Drainage and other infrastructure improvements will be made at the airport.

In its preparation of the LAX master plan, airports officials will also make a ``good faith'' evaluation of Palmdale's future potential.

CAPTION(S):

2 Photos, Box

Photo: (1) Palmdale Mayor Jim Ledford, left, and L.A. Mayor Richard Riordan share a light moment during a press conference Friday.

(2--Ran in AV only) Palmdale Mayor Jim Ledford addresses the audience at a press conference downtown on plans to expand the Palmdale Airport.

John Lazar/Staff Photographer

Box: (Ran in Valley Edition only) THE FACTS (See text)