The United States' west coast market will likely become even more competitive next year as California's John Wayne airport expects to add service from up to two airlines in 2009.

Losing service from Aloha Airlines earlier this year accounts for roughly half of the facility's expected 10% passenger drop in 2008 from last year's record 9.98 million annual passengers, but the airline's closure leaves room previously unavailable for additional carriers, an airport spokeswoman says.

Roughly 41 miles (66km) southeast of Los Angeles International airport, the suburban facility has five airlines on its waiting list, with Air Canada at the top, the spokeswoman says.

While the Canadian carrier has not identified city pairs-airlines must obtain approval from airport owner Orange County-the earliest new additions could inaugurate service is in April, the John Wayne spokeswoman says.

Low-cost carriers Air Tran Airways and WestJet are next on list, followed by rivals Virgin America and Alaska Air Group subsidiary Horizon Air. The latter companies, along with JetBlue Airways, have been adding capacity throughout one another's west coast markets this year.

And while US domestic mainline capacity fell 11% industry-wide during the fourth quarter, west coast mainline capacity tumbled only 6% during the final quarter from the same period in 2007, Alaska Air Group vice president-finance Brandon Pedersen said during the Credit Suisse Global Airline Conference on 2 December.

While the allocation process for newly available space is underway for John Wayne airport, so is design work for a third terminal to accommodate growth as the current layout is designed for 8.4 million annual passengers.

"We know there's more demand than we can accommodate," an airport spokeswoman says.

Construction of Terminal C will begin in summer 2009 and the facility is slated to open in 2011.

The multi-story building will increase the airport's commercial gates to 20 from 14.

The airport has started removing a parking garage to make way for the roughly $262-million-terminal, part of a nearly $652-million-capital improvement program that includes new boarding bridges for existing gates and renovations for existing terminals. Construction is being funded by airport revenues, FAA grants, general airport bonds and a passenger facility charge (PFC).

Source: Air Transport Intelligence news