Lincoln Journal
Wednesday, June 2, 2004

Airport reports $2 million deficit

By Barbara Forster / Correspondent

Red is again the color of the bottom-line at Hanscom Field.

According to the annual State of Hanscom released last month, the airfield's
deficit exceeds $2 million. The operating budget ended with a $546,000
deficit due to increased direct expenses such as insurance, which jumped 241
percent, and indirect expenses Massport charges to Hanscom. Security is
another direct expense.

Amortized expenses, which also rose 10.9 as compared to last year, brought
the loss to the $2.3 million. U.S. Customs fees collected from Hanscom users
are a wash. Users pay the bill.

Deficits of more than $2 million were the norm between 1993 and 1997. Losses
dropped through 2000 and two years later Hanscom experienced its lowest
deficit in recent history, $800,000.

Massport attributes the jumping deficit to escalating "security and
insurance costs" and weak revenues due to a soft economy.

In the projected budget for 2004, losses are expected to drop to $1.9
million via increased landing fees, rates, and other charges. Landing fees
now include transient aircraft. Improvements to the parking lot were
designed and constructed to accommodate a future revenue parking system;
currently parking is free.

-Other Dollars

According to the report, Hanscom's economic impact on the area is in the
$110-million range. Approximately $60 million are considered direct
benefits; another $50 million are categorized as indirect. The field has
more than 500 employees. The last official estimate was in 2000 for fiscal
1999; that figure was approximately $75 million.

But residents disagree with the figures. A few years ago, Save Our Heritage
hired the Commonwealth Research Group, a Boston-based firm of applied
consulting economists, engineers, and planners, to review the numbers. This
analysis concluded that Massport incorrectly used the formula created by the
Federal Aviation Administration in 1992 to determine the economic benefits
of general aviation airports.

"They (Commonwealth Research) found 20 percent of what Massport said it
was," said Marty Pepper Aisenberg of SOH.

Massport noted that the analysis was compiled by an independent source.

-Aircraft Activity

The number of total operations decreased by 10.7 percent as compared to
2002. Single engine piston aircraft, which represent 73 percent of activity,
dropped 10.4. Twin engine piston aircraft also went down 10.3 and are 2.4
percent of the air action.

Commuter planes flew 55 percent fewer times last year than in 2002 while
other turboprop activity also went down from 6.7 percent of total activity
to 4.6 percent. While the two airlines carried 36,099 passengers that number
also was 47 percent lower than in 2002.

Numbers aside, Massport reports that Shuttle America has identified a
"committed market" for its services and that the airline was "inundated"
with calls when the airline announced that it would end service at the
field. Shuttle America put that decision on hold and is still flying.

Even civilian jet activity dropped a little, 1.5 percent. However, this
category began to increase toward the end of the year and numbers continue
to go up this year. For example, in December activity increased 4.4 percent,
in January 6.4 percent, and in April 2004 the increase was 7.1 percent.

-Capital Improvements

Each year, Massport fixes up the field inside and out. This year terminal
improvements include new windows on the third floor and updating the
bathroom.

On the field, T-hangar work, which includes roof replacements, starts next
month. Another goal is start the addition to the Field Maintenance Garage.
This project, however, has been "planned" for several years and is not yet
reality.

-Ongoing Changes

By the end of last year, more than 900 individuals were fingerprinted and
badged. Everyone at the airfield is required to wear a badge or to be
escorted onto the field. Employees are encouraged to wear their badges
inside buildings as well.

In 2004, the goal is to add an access control system. Upgraded fencing will
be extended from the terminal area to the Pine Hill area and trap gates will
be installed at the entrances to T-hangars. All fences are now eight feet
high and have barbed wire; the fences were originally four feet high.

After receiving Orders of Conditions from the four Hanscom towns, Bedford,
Concord, Lexington, and Lincoln, Massport began removing obstructive
vegetation at the end of the runways in January. Work on Phase 2, which
focuses on the Bedford Town Forest, will wait until after Massport and town
officials develop a management plan for the project.

-Environmental Front

The good news is that no reportable spills occurred at Hanscom last year.
However, one tenant had a refueling spill and some fuel spilled when a
helicopter tipped on its side during a landing. DEP was notified and all
appropriate measures were taken.

The only active DEP-listed site at the field will be brought to regulatory
closure this year. Massport is listed as the potentially responsible party
for the site which is adjacent to the Field Maintenance Garage.

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