Albany, NY (Dec. 2, 2002) - - - The Albany County Airport Authority met Monday, December 2 at 6:00 p.m. to approve a $ 32.5 million operating budget for 2002. The budget includes an estimated $948,000 increase for the cost of security and a $282,000 increase in insurance premiums required to meet newly imposed FAA mandates and insurance company rate increases. In total, the Airport's 2002 budget will increase less than 1% over 2001.

"The events of September 11th have created a tremendous financial challenge for the nation's airlines and airports," said Rev. Michael A. Farano, chairman of the Albany County Airport Authority. "This budget enables the Albany International Airport to provide a significant increase in the level of security while maintaining the necessary funding for Airport improvements and expansion by maximizing the efficiency of our existing workforce."

Total airport revenues for the year 2002 are estimated to reach $32.5 million while operating costs are budgeted for $19.5 million. The remaining $13 million is dedicated to reducing bond indebtedness $8.3 million, capital expenditures and new equipment $1.5 million, funding reserves $.03 million, and leaving a potential increase of $2.8 million in the Authority's cash fund balance for unknown contingencies.

The Airport Authority's preliminary budget issued prior to September 11th had projected that enplanements would total 1,616,000 for the year 2002. This projection has been reduced to 1,500,000 to reflect the potential reduction in business travelers and the reluctance of some leisure travelers to resume flying.

To offset increased costs, the Airport Authority has taken a number of positive steps to maintain its sound fiscal position through the 2002 budget year. The Airport has eliminated many discretionary spending items, limited overtime and travel, and placed a freeze on all new employment, except where needed to maintain emergency services or the operating capacity of the Airport.

The new budget will reduce the terminal rental fee charged signatory airlines and will maintain the Airport's annual revenue sharing plan with airlines. The revenue sharing program has returned over $3 million to Albany International Airport's air carriers for the years 1996-2000.

The restrictions imposed by the 2002 budget will not impact several on-going Airport capital projects. New T-Hangars for general aviation aircraft and the New York State Executive Hanger are scheduled to be completed during 2002. Design is continuing and construction of the East-West Runway expansion is expected to begin in the spring.

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