IBJNews

Airport considering privatizing parking operations

Back to TopCommentsE-mailPrintBookmark and Share

The Indianapolis Airport Authority agreed at its monthly meeting this morning to explore turning over management of the airport’s parking operations to an outside company.

Using a private operator for parking could bring in between $350 million to $500 million in additional revenue over the length of a 50-year lease for the cash-strapped Indianapolis International Airport, authority spokeswoman Susan Sullivan said. Sullivan emphasized that estimate was “very preliminary.”  

The airport is facing a budget shortfall because of fewer flights as well as higher costs from the new, $1.1 billion Weir Cook terminal that opened last year. The airport now pays a mortgage on the terminal of about $40 million a year.  

“Even if we issue requests for information, there is no commitment to act on them,” Sullivan said. “This is not something we would enter into lightly.”

Fewer than 15 percent of the nation’s midsize airports manage their own parking operations, she said.

The airport has 100 employees dedicated to parking services. Any privatization agreement would need to ensure the workers kept their jobs, Sullivan said. Parking fees account for about 50 percent of the airport’s $76 million in non-airline revenue. Total annual revenue at the airport is expected to be $127 million in 2010.

The authority voted last month to raise airport parking rates Sept. 1. Garage parking rose from $16 to $18; long-term parking from $11 to $12 and economy-lot parking from $7 to $9. Express valet parking also rose, from $18 to $20.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
ADVERTISEMENT