The Associated Press

Trades/Construction
RANCHO RESORT
MAINTANANCE POSITION Health Care
Sierra Tucson
Eating Disorders Program Coordinator General
A1 Communications
Cable Techs

The economic meltdown has hit the airport car rental business in Phoenix.

The City Council is poised to raise airport car rental fees at Phoenix Sky Harbor International Airport by 33 percent.

If approved, the customer facility charge will go from $4.50 per vehicle, per day up to $6 beginning Jan 1.

Airport officials blamed the increase on financial forces that are out of the city’s control. The fee increase is tied to the construction price tag for the $285 million off-airport car rental facility, which the city bankrolled with $270 million in bonds.

The rental-car center opened in 2006 and covers 141 acres. It consolidated all of the airports rental-car businesses into one facility.

Phoenix also bought bond insurance from the Federal Guaranty Insurance Company for the project.

That insurance firm’s rating tumbled from AAA, the highest possible rating, to BB.

The dip kicked in a contract clause that forces the city to scrape together a $21 million debt reserve in 12 months, prompting the city to raise car rental fees at Sky Harbor. The $21 million is the equivalent of one annual debt payment.

An average of 4,913 cars are rented each day at the airport.