Accord is reached on LAX fee hikes
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The Board of Airport Commissioners announced a legal settlement Tuesday with five airlines over higher terminal fees at LAX.
The fee increases, imposed last year by the city’s Airport Commission, nearly quadrupled rent and maintenance costs for domestic carriers in Terminals 1 and 3 at Los Angeles International Airport.
The affected airlines -- American, Continental, Delta, Northwest and United -- sued the city and Los Angeles World Airports, the agency that runs LAX. They argued that the higher costs would put them at a disadvantage because carriers with long-term leases would continue to pay a lower rent.
The settlement will credit the five airlines $20 million collectively for maintenance and operation costs for 2006 through 2008. The agreement also establishes a $35-million account for infrastructure investment and states that the airlines agree to pay their share of costs of a new $219-million central power plant.
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