Dizel8
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NEW YORK (Reuters) — United Airlines said Wednesday that passengers on its flights originating at Los Angeles International Airport will each pay a $10 surcharge to offset a rent increase, effective immediately.
In December, Los Angeles World Airports (LAWA) raised the rent for all LAX airlines to finance airport upgrades. United, the largest airline at LAX, said it would pay an additional $10 million annually and that it believed the increase was in clear violation of its long-term lease agreement with LAWA.
United, a unit of UAL, said it had joined several other airlines in a lawsuit against LAWA. A spokesman for LAWA was not immediately available for comment.
"We have a great interest in LAX developing into a world-class airport, supported by a long-term modernization plan, but we have no interest in paying higher fees without greater benefit for our customers," said Kevin Knight, United's senior vice president of planning, in a statement.
LAWA has complained that it has absorbed increasing costs related to security, maintenance and operations without passing on the costs to airlines and that as a result needed airport improvements have been delayed.
The Air Transport Association, an industry trade group, has criticized LAX for its increase in terminal rates. Several major airlines did not immediately say if they planned to matched UAL's surcharge.
In December, Los Angeles World Airports (LAWA) raised the rent for all LAX airlines to finance airport upgrades. United, the largest airline at LAX, said it would pay an additional $10 million annually and that it believed the increase was in clear violation of its long-term lease agreement with LAWA.
United, a unit of UAL, said it had joined several other airlines in a lawsuit against LAWA. A spokesman for LAWA was not immediately available for comment.
"We have a great interest in LAX developing into a world-class airport, supported by a long-term modernization plan, but we have no interest in paying higher fees without greater benefit for our customers," said Kevin Knight, United's senior vice president of planning, in a statement.
LAWA has complained that it has absorbed increasing costs related to security, maintenance and operations without passing on the costs to airlines and that as a result needed airport improvements have been delayed.
The Air Transport Association, an industry trade group, has criticized LAX for its increase in terminal rates. Several major airlines did not immediately say if they planned to matched UAL's surcharge.
