Quantcast
  Free Trial!
  Today’s Best Stocks To Trade!   
Click Here



Stocks

Trading Ideas

Short Term
Long Term
All Trading Ideas


Trading Lessons

Strategies
Courses
Interviews
Glossary
All Trading Lessons


Daily Stock Setups

Connors Daily Battle Plan
Haggerty Professional
Kaltbaum Intra-day Set-ups
Short Term PowerRatings
Long Term PowerRatings
TM Indicators


Trading News

Markets Updates
Technical Alerts
Breaking News


PowerRatings

Short Term
Long Term
Charts


Indicators

Stocks
Market Bias


Quotes

Markets
Stocks
Charts
Level II
Historical Data
Options


Trading Contests

Up or Down


 
Sacramento airport director stands by his expansion plan
Saturday, May 17, 2008; Posted: 05:49 AM
Stocks RSS
May 17, 2008 (The Sacramento Bee - McClatchy-Tribune Information Services via COMTEX) -- -- Sacramento's Hardy Acree is, this week at least, the man the airlines really resent.

But the blunt-talking airport director doesn't have time or inclination to care. He's pushing full throttle on a $1.27 billion Sacramento International Airport expansion. And the airlines' anger over the price tag just tells him they aren't thinking ahead.

A Porsche-driving pilot with a penchant for fine wine, haute cuisine and high art, Acree doesn't live life on the cheap, nor does he think Sacramento should.

"I've always felt Sacramento needs to think bigger," Acree said. "We could be anything we want to be."

Hired by County Executive Terry Schutten in 1999 from the Houston airport, Acree got the task of plotting a bigger future for an undersized, aging airport.

That future -- and Acree's career moment -- is here.

Workers at the airport are expected to break ground next month on perhaps the biggest public works project in Sacramento history.

Acree, Schutten and Sacramento County's Board of Supervisors have designed a gleaming four-story steel-and-glass terminal in the center of the airport to replace Terminal B.

It will be backed by a hotel tower. A people-mover tram will take riders to a 19-gate concourse on the airfield. A second parking garage will serve the new terminal.

"This is a pivotal moment for the next 50 years," Schutten said. "The airport will be a significant economic engine for this region."

But as Acree and staff tie up last-minute loose ends, one thread has become more knot than neat bow.

Led by Sacramento's dominant carrier, Southwest, resident airlines charge Acree with twisting their arms to pay more than they should for what they think will be an oversized facility.

The airport balances its books with rent from airlines, fees on fliers and other charges.

But the economy is down, gas prices have jumped, and airlines are in a spiral of bankruptcies, forced mergers and cutbacks.

Sacramento's expansion costs are like pouring fuel on a fire, they say.

The disagreement this week bordered on the personal.

During a heated board hearing, airline representatives said they suspect Acree is retaliating -- imposing a higher-than-necessary fee -- after the two sides failed to negotiate an agreement.

"It seems punitive," Southwest executive Ron Ricks told The Bee recently. "The foundation of Mr. Acree's position is: I'm going to confiscate your profits ... because I can."

Acree said airlines brought the situation on themselves, repeatedly shifting positions during negotiations, forcing an impasse.

The airlines last week pleaded with county supervisors, asking them to rethink the financing. Supervisors instead voted to increase fees 45 percent.

"It now is time we move forward," Acree said.

It's what Acree has been doing most of his life. He grew up in a family of migrant workers in what he calls the backwaters of Arkansas. He chopped cotton during the school year and picked berries in Michigan in summer.

Acree today is a lean, buttoned-downed businessman with a tightly trimmed gray mustache and an annual salary of $175,000. He still speaks with a bit of an Arkansas twang and references barns and shotguns in conversations about bond debt and strategic planning.

His interest in aviation, he says, started with seeing silver and orange Air Force planes on maneuvers. "I was fascinated how something that big could be suspended in air."

He worked as a mechanic in the Air Force, considered making a living as a pilot, but ended up with a master's degree in aviation administration.

He no longer flies. As a hobby, it's too expensive. He drives a cherry red Porsche Carrera.

"Sports cars, and Porsches in particular," he says, "are the closest thing to flying."

Acree dismisses the airlines' suggestion that he's trying to build a Taj Mahal in Natomas. San Francisco and San Jose also are spending more than $1 billion on airport expansions.

He acknowledges a billion dollars is no small thing.

"It's better to aim for the moon and hit the side of the barn than to aim for the barn and hit your foot," he said.

Sacramento will grow, he said. "You have to think long-term. The airlines today cannot grasp that."

Such comments have riled airlines officials, and likely added to the heat at last week's showdown, but Acree's boss backs his airport director.

"He can be firm when needed to be," County Executive Schutten said.

The airlines will continue to make the case that the planned fees are onerous. Meantime, several said, they'll consider reduced service and higher fares.

"It will impact our fare structure," JetBlue's Mark Busalacchi said. "To what degree, I can't say. We'll go back and determine that."

"We're trying to grow here," U.S. Airways executive David Anderson said. "We'll see. We'll look at the numbers."

Acree said he didn't want the new fees. In a sense, however, it fits his think-big approach.

Under the former fee system -- called residual -- airlines covered the difference between the airport's annual expenses and revenue from non-airline sources, such as concessions, parking fees and passenger ticket charges.

Because the two sides couldn't agree on changes, Acree said the airport had to switch to a "compensatory" arrangement, which adds both some financial risk and potential reward to the airport. Under the new system, the airport will charge airlines set fees. That leaves the airport responsible for revenue shortfalls, but it benefits when non-airline revenues beat projections.

Airlines can protest the fees as "unreasonable," and possibly delay construction. However, in a recent interview with The Bee, Southwest officials said they don't plan to protest because it would be hard to win.

Meanwhile, Acree's expansion plan cleared a key hurdle this month. Bond agencies gave the airport an A1 rating on $600 million of new bonds.

For Acree, it was endorsement of what the airport is doing, and what he thinks Sacramento should do more.

"I encourage leaders to think big, take risks," he said. "At least that's what I'm trying to do."

To see more of The Sacramento Bee, or to subscribe to the newspaper, go to http://www.sacbee.com/. Copyright (c) 2008, The Sacramento Bee, Calif. Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

Morning Coffee with TradingMarkets -- Free Newsletter

    


More News:   Market Updates | Stock Alerts | All Trading News | Stock Index

Stocks RSS





PREMIER SPONSORED LINKS
TRADE CENTER

The TradingMarkets Directory
Stocks
Quotes
Charts
How to Trade
Commentary and Analysis
PowerRatings
Training Classes
Tools
Stock Scanner
Daily Market Bias

Options
Quotes
Charts
How to Trade
Commentary and Analysis

Forex
How to Trade
Forex Momentum Index
Pivots

E-mini/Futures
Quotes
Charts
How to Trade
Daily Market Bias

How to Trade
Stocks
Options
Forex
E-mini/Futures
Glossary

Tools
Short Term PowerRatings
Long Term PowerRatings
Stock Screener
Quotes & Charts
Stock Indicators
Market bias Indicators

PowerRatings
Short Term PowerRatings
Long Term PowerRatings
Industry PowerRatings
PowerRatings Charts
Training Classes
PowerRatings Strategies
Search PowerRatings

Trading Contests
Up or Down Stock Contest
#1 - Win $1000 every month

Up or Down Forex Contest -
Win $1000 every month


Premium Subscription Services
Short Term PowerRatings Free Trial
Long Term PowerRatings Free Trial
TradingMarkets Subscription Free Trial
Daily Battle Plan Free Trial
Gary Kaltbaum - Intraday Breaking Alerts Free Trial
Kevin Haggerty Professional Trading Service Free Trial
Forex Force with Mark Whistler Free Trial

RELATED SITES
Nothing but forex





All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

© 2008 The Connors Group, Inc.