“We are reducing our work hours to 72…and there are no new hires,” Mendiola said.
Rep. Sheila Babauta noted the projected decrease in CPA revenue due to the cancellation of flights. “We are looking at $3.9 million for the rest of the year should flights remain canceled for the rest of the fiscal year,” she added.
She asked Mendiola how CPA’s operations are going to change because of the decline in revenue.
“With additional [flight] cancellations, we may have to go back again and look at our finances — we may cut more hours,” Mendiola said.
“Have you prioritized or changed the priorities of [CPA] because of these cuts?” Babauta asked.
Mendiola said CPA is updating its list of priority projects, but will move forward with federally funded ones.
As for the projects funded by CPA, Mendiola said, “We are looking at whether they are needed at this time, or if they can wait until next year — that is how we are looking at things now as far as prioritizing things to reflect our limited funds.”
Babauta said the projected loss for concession vendors and other partners within the airport is about $800,000.
She asked the CPA deputy director, “Have you maintained communication with the concession vendors? Are there any plans for the remaining businesses?”
Mendiola said some of the vendors have been asking for discounts in rent, among other things.
When asked whether CPA would consider the vendors’ request, Mendiola said: “We need to maintain a debt ratio. As much as we want to help everybody, we also have our own obligations to meet. We are looking at every avenue to generate revenue. If we can assist [our vendors], we will, but again, it depends on our finances.”
CPA staff attorney Joe Hallahan said part of the federal grant assurances require CPA to be as self-sufficient as possible.
He added, “If we were to give out discounts, first, we have to do it across-the-board because we have a grant assurance that requires us to treat all airlines basically the same. Two, our debt ratio would also be at risk. Then three, we would also probably have issues with the grant assurance for not being as self-sufficient as possible.”
