McCarran Still A Winner Despite Vegas Setbacks

Bolstered by low-fare tenants Southwest Airlines and America West Airlines, Las Vegas McCarran Airport is faring better financially than most large U.S. airports and still maintains its long-term projection for future growth.

However, similar to most other large U.S. airports, McCarran is reassessing its growth pattern after a 4.5 percent drop in passenger traffic in 2001 over 2000, to 35 million passengers last year, and is holding off from embarking on any major projects.

The airport remains in a better financial position than other major U.S. hubs because it is supported by its low-cost carriers, which have exhibited relative strength over the past few months, and value-conscious leisure travelers who have responded well to recent travel packages to the city. Indeed, America West on Tuesday announced it will expand operations at the airport over the next few months, and service on such international carriers as Japan Airlines has returned. In January, McCarran saw about 90 percent of the passenger traffic it recorded in January 2001. The airport even profits from its own slot machines--a revenue source that has grown significantly as travelers have more time on their hands.

Still, hesitant to spend on capital projects in the face of security costs, government regulation and possible remodeling needed to fit explosive screening devices, McCarran has slowed and amended construction related to its master plan.

"It's hard. It puts us in a holding pattern," said McCarran spokeswoman Hilarie Grey. "We've been able to carry through with some projects since September, such as completing the design of a third wing to our D Gate satellite, but now we're evaluating these projects and saying,