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Airlines protest fee hikes

Bermuda has one of the world's cheapest international airports.General managers from the six airlines are fighting the "outrageous cost'' they will pay for new hi-tech check-in computers at the airport.

Bermuda has one of the world's cheapest international airports.

General managers from the six airlines are fighting the "outrageous cost'' they will pay for new hi-tech check-in computers at the airport.

They have called a crisis meeting for this morning to coordinate their battle with the Transport Ministry and the Department of Airport Operations.

Airline insiders claimed last night they would have to pay up to a combined $1 million a year for the state-of-the-art Common User Terminal Equipment, to be installed in April.

But figures obtained by The Royal Gazette show the cost of using the computers has already been cut from $1.94 per passenger to $1.74 per passenger, with around 500,000 people using the Airport each year.

Even the $1.74 charge to airlines would take the cost of using the airport's terminal to just $4.22 per passenger.

Unlike other airports, Bermuda does not charge for the use of baggage conveyor belts, navigation or air traffic control.

And an Airport insider said last night: "Despite that, we still have one of the lowest passenger terminal charges in the western world.'' Figures from the International Civil Aviation Organisation show Chicago O'Hare International Airport costs airlines $26.61 per passenger, adding in extra fees for a range of services.

Philadelphia charges $23.26, Newark costs $19.09 and London's Gatwick airport costs airlines $13.37 per passenger during peak-times.

Off-peak terminal charges at Gatwick are still $5.28, while the cost is $11.53 per passenger at Houston, $9.51 at Boston's Logan International Airport, $7.34 at Baltimore, $7.25 at Detroit and $6.15 at Halifax, Nova Scotia.

Now Bermuda-based airlines are rallying against the cost structure for the new CUTE terminals, which will allow the airport to handle 1,000 departing passengers every hour instead of 700.

The computers, which are Y2K compliant, will also reduce queuing times because they can be used by any airline.

They will also record details of each passenger's baggage and be linked to new flight information displays around the airport in a bid to improve services.

Transport Minister Dr. Ewart Brown is hoping the $2 million investment will help attract new airlines to Bermuda by reducing setting-up costs.

The technology becomes owned by the Airport after three years, then a lower per-passenger charge will contribute to other Airport improvements.

Airport But the airlines already serving Bermuda are now hoping to meet Dr. Brown to appeal for a lower charge structure.

Delta's Jackie Zuill, chairman of the Board of Airline Representatives, said: "It will cost us considerably more per month and we also feel that after three years we should stop paying.

"We have had no guarantees about reduced charges and the cost is outrageous and it's unaffordable. But we are still in negotiations and we are hopeful the Airport is listening to us.'' American Airlines are estimating their operating costs in Bermuda will rise by 25 percent.

General Manager Carole DeCouto said last night: "It's a lot of money. But I want to wait until after tomorrow's meeting before commenting.'' Shadow Transport Minister Erwin Adderley said: "Everybody agrees that the CUTE system has merit and we looked at ways of implementing it when the UBP were in Government last year.

"But it would appear that sufficient consultation has not taken place.'' Airport general manager Jack Gordon said: "Discussions with the carriers started as early as July, 1997 and numerous meetings have been held since.

"In the absence of any progress, the Department of Airport Operations advised the carriers that they would be taking over this project to move it forward on January 13, 1998.''