L.A. Airport to Change Off-Airport Agreement Terms

LOS ANGELES -- In the past week, Los Angeles International Airport authorities have faxed notices to off-airport independent rental operators, informing them of plans to terminate their existing agreements May 31.

To remain a licensee, the notice says, off-airport operators must pay a fee to the city of $7,500 annually or 8% of their total gross receipts -- whichever is higher. In addition, off-airport operators will be permitted to pick up airport customers only at Lot C, a remote parking lot to which rental customers will be shuttled by an airport-operated vehicle. The frequency of such shuttle pickups outside the terminal hasn't been determined.

On-airport rental operators, however, will continue to pick up customers right outside terminals.

Los Angeles World Airports, which operates LAX, has given off-airport operators less than a week to decide whether to accept the new agreement's terms. Without licensee status, rental operators are prohibited from advertising in airport terminals or operating courtesy phones there.

However, the prospect of forcing customers to be double-bused -- from the terminal to Lot C and then to the rental facility -- has most off-airport operators predicting their business' demise unless the terms of the new agreement change. The companies affected by the policy shift have begun organizing to oppose terms of the new agreement.

"This would pretty much destroy all of the small car rental companies, without question," said Sam Arbalani, general manager of Global Rent-A-Car.

The new agreement would triple annual airport fees for his company, Arbalani said. What's more, the inconvenience of being double-bused would result in the loss of most airport customers.

"We are confronting this problem," Arbalani said. "If push comes to shove and we have to hire a lawyer to deal with this in a legal battle, we'll do it."

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

The Problem with Valuing Safety Technology

As advanced safety technologies have migrated to mainstream vehicles, retaining value for these options at resale remains an issue.

ELD Mandate: Is Your Head Still in the Sand?

If you think you have 11 weeks to implement an Electronic Logging Device system to meet the Dec. 18 compliance deadline, you really don’t — for a few reasons.

Who Controls Your Vehicles’ Data?

In the name of security, an automaker’s alliance is advocating denial of third-party access to the OBD-II port. Is this going too far?

Job Finder: Access Top Talent. Fill Key Positions.

>