FAA: Traffic Rebound Will Take Two Years Longer Than Expected

Sanchez, Humberto
March 2003
Bond Buyer;3/19/2003, Vol. 343 Issue 31596, p4
Trade Publication
U.S. Federal Aviation Administration (FAA) has estimated that air passenger traffic will return to pre-September 2001 levels by about fiscal 2006, two years later than it had predicted last year, the agency said in its annual aviation forecast. The forecast, which covers 12 fiscal years, predicted that domestic passenger enplanements would increase by an average of 3.5 percent a year and reach 738 million by fiscal 2014. “If there is any type of conflict, passenger traffic levels will not grow this year, ”said John Rodgers, director of the FAA's office of aviation policy and plans. The projected slow passenger-level recovery and an imminent war with Iraq have airport analysts concerned about the possible effects on airlines, which pay rents and landing fees that are typically pledged to pay off tax-exempt bonds used to finance airport improvements and expansions.


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