Experts say new airport lease could impact flight prices

CHARLOTTE, N.C. – A packed room of more than 100 community members and airport workers discussed how to make the airport lease benefit everyone at a town hall meeting Tuesday evening.

Action NC and 32BJ SEIU hosted a panel discussion featuring several industry experts, labor advocates, and organizers to discuss the implications of the new lease.

“It’s going to effect everybody who flies in and out of Charlotte, it’s going to effect competition, it’s going to effect ticket prices and passenger experience,” Bill McGee, from the American Economic Liberties Project said.

Think of it this way, the city is the landlord. The airlines are the tenants.

Airport workers that are contracted to do jobs like push wheelchairs and clean planes and bathrooms have been advocating for higher for years. WCCB interviewed a worker who was living in a storage unit because he couldn’t afford housing. Another worker died over the summer after she overheated in the tunnel waiting to clean a plane.

“We also have employees that are staying at the airport because they have no where to go, but they are getting up and going to work every day,” Achantae Williams, CLT Airport Worker said. “We have employees living in their cars, living in the street.”

In the presentation Tuesday night, experts claims Charlotte passengers pay some of the highest ticket prices in the nation. According to the data presented, a flight from CLT to Miami on American is $1,041 compared to the same flight on Frontier for $126.

Experts say American airlines currently occupies 93 of 123 gates. In the new lease, American would occupy 109 of 139 gates. In other airports where prices are lower, experts say there is a more even split between airlines.
Experts say the new lease could drive prices higher by reducing competition.

“American airlines needs Charlotte because they have to pay shareholders and they have to make money on Charlotte,” John Breyault from National Consumers League said. “So Charlotte’s gotta say if you want something from us you gotta do something for us.”

If a deal is reached the city will provide $2.1 billion dollars in airport upgrades that would include new gates and a tunnel. Airline rates and charges under the agreement help cover the airport’s operating and capital costs. Since American, is the largest airline at CLT it will foot the biggest share of the bill. City council member Victoria Watlington says there will be other contingencies in the lease as well.

“Things like gate access which we were able to work through for smaller airlines,” Watlington said. “We were also able to negotiate a yearly review so it won’t be 10 years before we can reassign gates.”

For some that isn’t enough they want city council to vote against the lease. Councilman Malcolm Graham says they are working on supporting workers in other ways.

“Some of those major elements, worker conditions, workers’ pay. That’s coming to my committee,” Councilman Graham said. “So I was able to see both of those issues separately.”

City council will vote on the lease November 9th. There will be an opportunity for public feedback before the vote. The Budget Governance Intergovernmental committee, chaired by Councilman Graham will meet next month to discuss how to support airport workers.