The rent relief was approved by Los Angeles World Airports, the city agency that runs LAX. Under it, the operators of airport gift shops, newsstands, restaurants, bars and other retail outlets can skip their required minimum monthly rent payments and instead base their rent strictly on their actual sales.
The relief package is retroactive to Oct. 1 and runs through Dec. 31. Retailers who have already paid their October and November rent can receive a credit to apply toward their future payments.
The drop in air travel since the Sept. 11 attacks has hurt virtually every airport retailer. Some have said their business is off by more than 50% because fewer airline passengers means fewer people to make purchases at airport gift shops, dine at its restaurants, or drink at its bars.
Compounding problems, most of the retailers are located behind security checkpoints. People who don't have an airline ticket can no longer go beyond the checkpoints, which prevents them from having a quick bite or farewell drink with a loved one or business associate who is waiting to board a plane.
While LAX retailers welcome the package of rent concessions, some say more is needed. Business "has picked up a little bit lately, but nearly enough for us to make a profit," Anna Lee, who runs an airport cookie shop, tells GlobeSt.com. "We can make it through the end of this month, but what will happen when the rents go back up again on Jan. 1? It's not like everything will be back to normal by next month."
Chances of Lee and her fellow retailers obtaining additional rent relief are dicey. LAX officials say they lost nearly $36 million because of lower revenue and additional security expenses between Sept. 11 and Oct. 31, and that those losses continue to mount with each passing week.
Even the short-term rent deal approved by the airport commissioners was met with protests from some corners. Labor unions complained that some LAX retailers have failed to live up to the terms of their recently signed union contracts, and asked that no relief be awarded to those businesses until they come into compliance.
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