Running the Airport will cost Bermuda an extra $17.2 million this year, Finance Minister the Hon. David Saul revealed in yesterday's Budget.

Dr. Saul said the new Department of Air Operations will cost $18.4 million, of which $13.9 million is "new money''. On top of those extra operating costs, the Budget sets aside $3.3 million for new capital projects at the Airport in 1995-96.

Included in the capital expenses are Airport fencing, new fire trucks, a security patrol vehicle, and new air traffic control equipment.

It has been known for months that this year's departure of the US Navy would mean millions more in extra Airport costs for Bermuda, and The Royal Gazette reported last week that the figure would be between $15 million and $20 million.

But Dr. Saul's Budget gives the first detailed look at the extra costs for what will soon be known as the Bermuda International Airport.

Serco Aviation Services Inc. of Canada, hired to handle air operations for the next five years starting on June 1, will be paid $5.5 million in 1995-96, Dr.

Saul said.

Included in that amount is $2.8 million for crash/fire/rescue services, $1.3 million for air traffic control, $950,000 for weather services, and $875,000 for ground electronics maintenance.

A three-year Base infrastructure contract that is yet to be awarded will cost Bermuda about another $6.1 million this year, he said.

The remainder of the extra operating costs include funds for stronger Airport management, $325,000 in increased property insurance, $120,000 for Airport liability insurance, and funds for Airport security, Dr. Saul told the House.

Aside from a $5 increase in the Airport departure tax, Dr. Saul said there would be "substantial increases'' in aircraft landing fees now collected by the US Navy. But he did not specify what the new fees would be.

The other closing Bases added to Bermuda's bill, Dr. Saul said. He set aside $200,000 for maintenance at the former Canadian Forces Base at Daniel's Head and $500,000 for maintenance and security at the US Naval Annex.

As the Base lands are developed, Bermuda can expect more costs down the road, he said. "The development of the Base lands and buildings to the north of the runway form a separate cost issue which is not being addressed in any major way in this Budget.

"The Country will have to anticipate further expenditures to support the development of this area in the future as plans begin to crystallise.'' Dr. Saul said a separate department was also needed to deal with "the regulatory and policy functions of civil aviation in Bermuda'', and administration of the Aircraft Register. The Budget sets aside an extra $1.4 million to cover the increased cost of aircraft inspections prior to their inclusion in the expanded Register.

Transport Minister the Hon. Maxwell Burgess is expected to call a news conference today and make further announcements about air operations. Details are expected on who will hold what post in the new Department of Air Operations.

TAX MAN -- The Airport, shown in the upper corner of the map behind him, was on the mind of Finance Minister the Hon. David Saul as he outlined his Budget yesterday. Dr. Saul said his seventh Budget required "the wisdom of Solomon with some of the magic that even Merlin would admire''.