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Mexicana flight cut leaves Kern in bind

Customs, terminal buildings lose business

BY JAMES BURGER, Californian staff writer
jburger@bakersfield.com | Tuesday, Apr 29 2008 7:55 PM

Last Updated: Wednesday, Apr 30 2008 7:39 AM

The at-least temporary elimination of Mexicana Airline flights from Meadows Field to Guadalajara, Mexico, leaves the county of Kern in a lurch.

The county invested millions of taxpayer dollars bringing the international service to Kern County. If the company's one-month "vacation" from flights here turns into a permanent exit, Kern County would be left with an unneeded customs building and empty international terminal.

The county spent $7 million to build the customs building and $1 million to renovate the old domestic terminal building for the international traveler, said county Airports Department Director Jack Gotcher.

To boot, county supervisors in April 2007 agreed to spend $150,000 on advertising to promote Mexicana's Meadows Field flights and cancel up to $36,000 in landing fees the airline would have owed the county.

The construction money used to establish international service came out of a loan from the county to the Airports Department. That loan will have to be paid back with interest by the airport's enterprise fund.

The Airports Department, Gotcher said, plans to make those payments from annual grants of about $1.3 million from the Federal Aviation Administration for hosting commercial service at Meadows Field.

Now the county needs to decide what to do with the international terminal.

Kern County can terminate the contract with U.S. Customs, which staffs the customs facility at Meadows, Gotcher said.

He doesn't think that's the right move, though, as it might be hard to restart customs service later.

"I want to keep a (customs) presence here," Gotcher said.

But the county airport spends $1.2 million a year to staff and run the customs facility. It could, though, reduce staffing to save some money.

As for the international terminal, Gotcher said it could be used to launch domestic flights or become part of the airport's plan to expand its cargo business.

County Supervisor Mike Maggard, who represents the area where the airport is located, called the exit of Mexicana "disheartening."

He asked Gotcher to come back with a full report on the exact costs to keep operating the international terminal.

Gotcher said Tuesday the biggest factor in Mexicana's decision to take a break from Bakersfield was the price of oil.

Mexicana was filling about 70 percent of the seats on its flights -- about 10 percent more than was expected for the airline to maintain profitability.

But the price of oil has changed the rules.

"They are not economical in this market," Gotcher said. "They told me they weren't even covering their direct costs."

And the problem isn't just hitting Mexicana, he said.

"All the airlines are trying to stay in business by raising fares," Gotcher said.

Travelers with Mexicana tickets to Guadalajara from Bakersfield on May 7 or later will be notified by phone that they must instead fly out of Fresno or Los Angeles, airline spokeswoman Theresa Bravo said, adding that the change involves no extra charge.