Monday, July 7th, 2008
RDU EXPANDS WHILE AIRLINE INDUSTRY CONTRACTS
New RDU Terminal Started In 2005 To Be Completed By 2011. When the terminal was started the airline industry had problems but was bursting with demand and growth. Today the industry is struggling to survive the ravages of unparalleled increases in the cost of fuel and the many ways that affects it both directly and indirectly. As a consequence of these problems they are cutting flights, cutting locations they serve and increasing ticket costs and the number of things they charge for. What will the condition of the industry be by 2011? I think it’s impossible to say what it will be by the end of the year let alone 2011. Most predictions concerning almost ANYTHING three years hence have a way of being vastly different than we expect and project. Win, lose or draw the fat is in the fire as far as the new half-billion dollar terminal is concerned. Despite airline industry problems the Airport Authority believes that most of what the future holds for the RDU airport, the Triangle area and airline passengers is on the plus side.
The new terminal will be called Terminal 2. While total completion is three years away the first segment of the terminal is set to go into service this Fall. Terminal size will be 920,000 square feet. It will have 60 self check-in kiosks, seven security lanes, automated baggage screening, handling capability for 1,600 bags an hour (twice the current capacity) and 32 boarding gates - up from Terminal C’s current number of 25. Of the 32, 19 will open in Phase I and another 13 in Phase II. There will be 26 shops and restaurants in Phase I and and additional 17 in Phase II.
In the airline industry, during the past 30 years it has been a rare thing for almost any airport to have a surplus of facilities to work with. With regard to RDU, how long this will be the case with the new terminal will greatly depend on the overall health of the airline industry. In my opinion it will work to this areas benefit whatever happens. The RDU airport is as important a source of business for the Triangle and for the Triangle’s future as any facility I can think of and that is why it is necessary to talk about it in a real estate oriented blog.
BULLY FOR BERGER - PHIL THAT IS. In my last blog I mentioned that North Carolina’s Senate Minority Leader Phil Berger, is against the that $857 million debt that the State Legislature wants to attach to the $21.3 spending plan that comes up for a vote this week. I indicated that when push comes to shove, I didn’t hold out much hope that he would actually line up against it. Well, evidently he or his people have their computers set up to monitor anyone who makes a comment about him because I received the following email: “Mr. Fish, I read your entry in the RaleighDurhamRealEstateBlog; at the time I was asked to comment, I did not have a chance to read the budget. I have now read the entire 237 pages and the additional 165 page “Money Report” supplement to the budget; the debt being incurred is a big issue as is the total spending and lack of reform in education, transportation, criminal justice and mental health. My vote will be “No.” Phil Berger.” A politician responsive to a voter? What’s the world coming to? (and let’s hope there is more of it).
John Fish (919) 696-3474 Email: Marvmax@mindspring.com Website: www.JohnFish.com
