LA introduces advertising to offset retail losses

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To offset mounting security costs and lost revenues from concessions over the last year, officials plan to allow advertising at Los Angeles International airport for the first time in its 42-year history

The programme is projected to raise about $31m a year for the airport authority, representing just under 4% of the airport's total revenues projected for this year to reach $790m. The city's Airport Commission voted this week to allow a tender to go ahead for the advertising concession.

Los Angeles is the only major airport in the US without an advertising concession. The world's third busiest airport previously did not allow advertising because officials believed it would distract from airport information and the money raised would not offset inconvenience to passengers.

The airport recently announced it may have to demolish and relocate some concessions to make way for new security facilities (TRW 18/09/02). According to the latest available figures for May 2002, Los Angeles' concession revenues remained down 1.5% year-on-year for food & beverage and down 17.1% for duty-free and other retail.