Sacramento Airport To Expand, Raise Fees – Upsetting Airlines

In May, Sacramento county government unanimously approved a $1.27 billion expansion of Sacramento International Airport, to include a new terminal, hotel, parking garage and people-mover tram. But the cost of the expansion is expected to be paid by already cash-strapped airlines.

As part of the plan, the airport will boost charges to the airline by $6 to $9 per passenger, climbing to over $13 by the year 2013 to help cover improvement costs. The airlines strongly opposed the extreme fee hike. American airlines recently notified Sacramento airport officials they will pull 1 of the 4 daily flights between Sacramento and Dallas due to “substantial and unreasonable” fee increases recently imposed on all airlines using Sacramento’s runways and ticket counters. Airport officials contend the real reason for American cutbacks may actually be related to rising fuel costs and trimming of flights nationwide.

Meanwhile, county officials have defended the airport’s expansion plan and rate increases as fair and necessary.

(Pictured above: Design of the second floor ticketing area for Central Terminal B at Sacramento International Airport. More pictures can be found here.)

Oakland To Loose Continental Airlines

In a notice to employees Thursday, Continental Airlines announced they will eliminate flights to 15 cities, including Oakland International. The airline has 3 daily flights from Oakland to its Houston hub. Flights will be discontinued in September.

Oakland has been hammered recently after carriers ATA, Aloha and Skybus ceased operations leaving several Oakland passengers stranded. American Airlines previously announced it too will end Oakland operations later this fall, they also had 3 daily flights to their Dallas hub.

No surprise that airline traffic is down 20% off last years numbers at OAK, making it one of the hardest hit airports in the country. Officials at the airport are planning on cutting jobs, and shelving plans for a third terminal.

Affected Continental passengers holding confirmed reservations can receive a full refund, accommodated on another airline, or fly from San Francisco or San Jose.

Demolition of San Jose’s Terminal C begins

Demolition of the north end of Terminal C at Mineta San José International Airport began last night in order to clear the site for the start of construction of the airport’s new Terminal B.

Over the next month, construction crews will work nights from about 10:30 p.m. to 4:30 a.m. to take down the structural frame of the building,remove debris, and prepare the site for new construction.

The work is part of the airport’s comprehensive $1.3 billion program to replace and renovate all the terminal facilities, roadways, and parking over the next two and a half years. When Terminal B is placed in service in mid-2010, the remainder of Terminal C will be removed so that the final section of the new terminal roadway can be completed.

More information about the airport improvements can be found here.