Economic Climate Impacting Logan & Massport
By Vik Kachoria | October 31, 2008
Logan International Airport is seeing 5% YTD decline in passenger traffic due to airline cost cutting & passenger belt tightening.
Growth has been slowing year-over-year since 2005. But this slide is expected to continue through 2009 and likely into 2010.
Massport operating budget of $364.6m has been reduced by 5% or $18m.
Travel expenses have been cut by 20% and hiring freezes are in place.
The dollar’s considerable recovery has reduced the the growth in Europeans traveling to Boston. This was one of the key areas Massport was counting on for growth.
Bond rating agencies are not worried yet about the the drop in passenger traffic. But if the decline accelerates, a review may be warranted.
Source: “Logan Intl cutting costs as passenger traffic slides”, Jesse Noyes, Boston Business Journal, Oct 31, 2008
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