JWA merchants looking to extend leases

Paul Clinton

JOHN WAYNE AIRPORT -- Gift shops and eateries at the airport have

rebounded nicely from the crippling effects of Sept. 11, leading managers

to pursue extensions of leases with the operators for two more years.

Airport Director Alan Murphy has asked for lease extensions for the

six main concessionaires -- Caterina’s, Creative Host Services,

McDonald’s, Paradies Shops, TDM Inc. and TDM Children’s Specialty Shop.

The Orange County Airport Commission, at today’s meeting, will

consider whether to recommend the extensions to the Orange County Board

of Supervisors. The board is expected to vote on the extensions April 23.

“Most of the concessions have been doing just as well as they were

doing last year,” airport spokeswoman Ann McCarley said. “They have

agreed to make improvements.”

Each concessionaire has submitted a plan delineating some improvements

to its shop to airport brass.

McDonald’s hopes to upgrade its menu boards, improve cash registers

and repair chairs and tables.

Paradies has agreed to install built-in coolers and add lighting,

McCarley said.

The new lease terms, if agreed to by both parties, would be extended

to June 30, 2004.

While most shops have returned to relative good health, some have

eclipsed pre-Sept. 11 revenue, Paradies President Dick Dickson said.

Because of the increased security at airports, passengers are arriving

earlier and spending more time in the terminal’s boarding area.

“They have more of what we call ‘dwell time,’ so they’re purchasing

more concessions,” Dickson said. “No question that the traffic is still

down. . . . What we’re seeing is that our sales are outpacing the

traffic.”

Before Sept. 11, passengers spent an average of 35 minutes of dwell

time. That has more than doubled, Dickson said.

The two Paradies shops at John Wayne helped add to the company’s

renewed sales, Dickson said. The company operates shops in 57 of the

country’s 100 or so airports.

For the period between July 1 and March 30, sales at the two shops

showed a 6% increase, Dickson said. They surged 13.5% higher in March,

when compared with the same period during 2001.

The airport has shelved a plan to reconfigure the location of the

shops in the terminal and perhaps add new eateries, McCarley said.

The airport commissioned a study in the late 1990s that looked at the

issue of relocating the shops. But tightened federal security regulations

have made that report a relic.

The airport also awaits the supervisors’ final decision on any

expansion of the terminal. The board is expected to consider a modest

expansion of the airport in late May that could lead to the construction

of four more flight gates.

A terminal revamp would likely be needed if that occurs, McCarley

said.

* Paul Clinton covers the environment, John Wayne Airport and

politics. He may be reached at (949) 764-4330 or by e-mail ato7

[email protected] .