Minneapolis-St. Paul Airport would add 48 gates and a 400 room hotel under a USD$860 million expansion plan unveiled on Tuesday by Minnesota Governor Tim Pawlenty.

The plan, which would be implemented in three phases, was touted by the Republican governor as a way to meet the economic and capacity demands of the Minneapolis-St. Paul region until 2020.

"We need to plan ahead to ensure Minnesota continues to have world-class air service," Pawlenty said in a statement. He added that the plan would help the airport's dominant carrier, Northwest Airlines, expand, while also providing room for competitors.

He urged the Metropolitan Airports Commission, which runs the airport, to consider the plan.

Under the governor's proposal, the number of gates at the Lindbergh Terminal would increase to 153 from 117, while gates at the Humphrey Terminal would grow to 20 from 8.

Minnesota-based Northwest Airlines, which released a statement endorsing the plan, and other carriers in its SkyTeam global airline alliance would essentially take over the Lindbergh Terminal, according to Pat Hogan, a spokesman for the airports commission. Non-SkyTeam carriers would be moved to the Humphrey Terminal.

"Some 33 million passengers used Minneapolis-St. Paul International in 2003, and it is expected that 55 million people will use the airport annually by 2020," said Richard Anderson, Northwest's CEO, in a statement. "Minnesota's continued economic success requires excellent airport facilities."

Northwest currently occupies 101 of the 117 gates at the Lindbergh Terminal, Hogan said.

The estimated USD$860 million price tag would be covered by user fees, federal grants and airline passenger facility changes and not state or local taxes.

The airport is in the process of completing a nine-year, USD$3.1 billion expansion that includes a new runway scheduled to open in October 2005.

(Reuters)