Effective immediately, UAL Corp. (UAUA) the parent company of United Airlines will pass along a $10 million dollar rent increase at Los Angeles International Airport to passengers whose flight is outbound from LAX.
"Passing along this surcharge to our customers is not our preferred action, but the recent sharp increase in costs to operate at LAX has left United with no other option," Kevin Knight, United's senior vice president of Planning.
United Airlines, LAX's largest airline, says that the raise in rent is a violation of its long term lease agreement and has filed suit against the company that runs the Los Angeles International Airport, Los Angeles World Airlines. Several other airlines have also filed suit.
But passing the surcharge on to the passenger? That's some bad press for United, the only airline in LAX to pass the rent increases on to their passengers. If United is complaining about a $10 million dollar increase in their rent at LAX, maybe some of the executives will dig into their pockets and help the company pay for some of the rent instead of taking a bonus this year. Or maybe United will give up some of their gates? There has to be more options right now than dragging the flying public into the battle between the airline and the LAWA.
KNBC TV in Los Angeles
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