krulltime
June 23rd, 2004, 11:01 AM
JFK area businesses awaiting airlift
Post-9/11 traffic up, but airport-related firms have yet to see lifesaving uptick
By Tommy Fernandez
Published on June 22, 2004
When people ask Veronica Rose whether businesses around Kennedy airport have bounced back from the Sept. 11 terrorist attack, she points out her window overlooking Guy R. Brewer Boulevard. Of the five commercial buildings visible, three remain empty.
Things have picked up somewhat this year for businesses tied to the airports, she acknowledges. Her electrical contracting firm made bids on six projects at the beginning of this month. But this activity is nothing compared with levels before the attack. She now employs only 15 people, down from 40 in 2001.
"It's been a long, painful recovery," says Ms. Rose, president of Aurora Electric Inc. "It's still possible that a lot of businesses can go under."
The airport industry in Queens is witnessing a rebound, but it's a fragile one. As airline passenger traffic returns to John F. Kennedy International and La Guardia International, entrepreneurs are still waiting for the comeback to bear fruit. They worry whether the upturn will be quick enough and strong enough to help them survive the year.
"The groundwork is being laid for, we hope, a real boom in airport business-but the boom hasn't hit yet," says Dolores Hofman, project manager of the Queens Air Services Development Office, which matches airport tenants with area contractors. Her agency, funded by the Port Authority of New York & New Jersey, represents more than 1,700 Queens firms.
The pickup, Ms. Hofman says, has largely been in construction, as airlines return to expansion projects they'd put on hold for the past two years. In addition, Aurora's Ms. Rose has been bidding on contracts for JetBlue's new terminal at Kennedy and has installed security equipment throughout the airport.
Ms. Hofman adds that the uptick in passenger traffic has translated into slightly better business for retailers and nearby hotels.
Moreover, airlines are finally starting to buy more amenities to provide to travelers, and they're hiring a few more staffers. "The airlines aren't taking all the services away, and they are putting more money into advertising and promotions," says Henk Guitjens, vice president in charge of airline marketing at JFK International Air Terminal LLC, which operates Terminal 4.
But business owners say they require far greater revenues to address hefty debts and other expenses that accumulated over the two-year dry spell. Airport Press, an 18,000-circulation trade publication based at Kennedy, lost more than 70% of its ad revenues during those two years. Publisher Bill Puckhaber had to let go all of his employees and operate the newspaper with help from his family.
Baggage checked
Luggage Doctor Repair Center lost 50% of its business. Owners Juan and Marco Lopez say that before the terrorist attack, their company fixed more than 200 pieces of damaged luggage for airlines each day. That number fell below 100 immediately after the disaster and now hovers around 130.
To survive, many businesses have taken out big loans, which will take years to repay. "There is not one business owner in my neighborhood who didn't maximize the mortgage on his house in order to stay afloat," says Ms. Rose.
Mr. Puckhaber points out that although airlines are paying slightly more to their employees than they did last year, salaries are not as high as they were before the attack, so workers have less money to spend at nearby businesses.
There could be yet another obstacle to a local boom: a serious lack of shopping and other services for travelers close to the airport. Craig Jenks, president of consulting firm Airline/Aircraft Projects Inc., says that there aren't enough nearby businesses to draw visitors' dollars.
"When passengers get out of JFK airport," Mr. Jenks says, "one, and only one, thought comes to their mind: `How the heck do I get out of here as soon as possible?' "
Copyright 2004, Crain Communications, Inc
Post-9/11 traffic up, but airport-related firms have yet to see lifesaving uptick
By Tommy Fernandez
Published on June 22, 2004
When people ask Veronica Rose whether businesses around Kennedy airport have bounced back from the Sept. 11 terrorist attack, she points out her window overlooking Guy R. Brewer Boulevard. Of the five commercial buildings visible, three remain empty.
Things have picked up somewhat this year for businesses tied to the airports, she acknowledges. Her electrical contracting firm made bids on six projects at the beginning of this month. But this activity is nothing compared with levels before the attack. She now employs only 15 people, down from 40 in 2001.
"It's been a long, painful recovery," says Ms. Rose, president of Aurora Electric Inc. "It's still possible that a lot of businesses can go under."
The airport industry in Queens is witnessing a rebound, but it's a fragile one. As airline passenger traffic returns to John F. Kennedy International and La Guardia International, entrepreneurs are still waiting for the comeback to bear fruit. They worry whether the upturn will be quick enough and strong enough to help them survive the year.
"The groundwork is being laid for, we hope, a real boom in airport business-but the boom hasn't hit yet," says Dolores Hofman, project manager of the Queens Air Services Development Office, which matches airport tenants with area contractors. Her agency, funded by the Port Authority of New York & New Jersey, represents more than 1,700 Queens firms.
The pickup, Ms. Hofman says, has largely been in construction, as airlines return to expansion projects they'd put on hold for the past two years. In addition, Aurora's Ms. Rose has been bidding on contracts for JetBlue's new terminal at Kennedy and has installed security equipment throughout the airport.
Ms. Hofman adds that the uptick in passenger traffic has translated into slightly better business for retailers and nearby hotels.
Moreover, airlines are finally starting to buy more amenities to provide to travelers, and they're hiring a few more staffers. "The airlines aren't taking all the services away, and they are putting more money into advertising and promotions," says Henk Guitjens, vice president in charge of airline marketing at JFK International Air Terminal LLC, which operates Terminal 4.
But business owners say they require far greater revenues to address hefty debts and other expenses that accumulated over the two-year dry spell. Airport Press, an 18,000-circulation trade publication based at Kennedy, lost more than 70% of its ad revenues during those two years. Publisher Bill Puckhaber had to let go all of his employees and operate the newspaper with help from his family.
Baggage checked
Luggage Doctor Repair Center lost 50% of its business. Owners Juan and Marco Lopez say that before the terrorist attack, their company fixed more than 200 pieces of damaged luggage for airlines each day. That number fell below 100 immediately after the disaster and now hovers around 130.
To survive, many businesses have taken out big loans, which will take years to repay. "There is not one business owner in my neighborhood who didn't maximize the mortgage on his house in order to stay afloat," says Ms. Rose.
Mr. Puckhaber points out that although airlines are paying slightly more to their employees than they did last year, salaries are not as high as they were before the attack, so workers have less money to spend at nearby businesses.
There could be yet another obstacle to a local boom: a serious lack of shopping and other services for travelers close to the airport. Craig Jenks, president of consulting firm Airline/Aircraft Projects Inc., says that there aren't enough nearby businesses to draw visitors' dollars.
"When passengers get out of JFK airport," Mr. Jenks says, "one, and only one, thought comes to their mind: `How the heck do I get out of here as soon as possible?' "
Copyright 2004, Crain Communications, Inc