The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Monday, July 24, 1995                  TAG: 9507220173
SECTION: BUSINESS WEEKLY          PAGE: 04   EDITION: FINAL 
COLUMN: TALK OF THE TOWN 
                                             LENGTH: Medium:   61 lines

AIRPORT IMPROVEMENTS GAIN ALTITUDE

(Several lines of this column were omitted last week, so we're reprinting it.)

All this talk about future air service in Hampton Roads leaves one question open - what's happening now.

Well, at Norfolk International Airport, plans call for building a moving sidewalk in a heated and cooled passage that would connect the garage and arrival section of the terminal. The baggage claim area also will be expanded, a new garage built, and the rental car agencies moved to a garage.

This is all supposed to happen in the next several years, said deputy airport director Wayne Shank.

On the Peninsula, ValuJet decided to enter Newport News/Williamsburg International Airport. Within days, USAir canceled its three daily jet flights, effective Sept. 6. How will USAir's departure affect discounter ValuJet?

``We look at other carriers as competition, but we also look at other forms of transportation as competition,'' said spokeswoman Katie deNourie. ``In some cases, we compete against the couch. We are trying to stimulate new traffic.''

USAir, of course, faces the highest labor costs of any major airline. It wants concessions to compete with lower-cost carriers.

In early July, the International Association of Machinists said the Aug. 10 vote on concessions for about 15,000 USAir mechanics and ground crews will be scrubbed.

``We've kind of pulled the speed brake on this deal,'' said Will Cashion, president of IAM Local 1725 in Charlotte.

Speaking of neighboring airports, in Texas, it's Love Field and Dallas-Fort Worth. In Chicago, it's Midway Airport and O'Hare. In Minnesota, it's Holman Field and Minneapolis/St. Paul. In Florida, it's Tampa International and St. Petersburg-Clearwater.

Throughout the nation, small airports struggle against bigger, domineering airports. ``It's something that's been going on for 25 years,'' said Bob Dunn, senior vice president of airport consulting group Nammack and Associates in Arlington. ``And I haven't seen, off the top of my head, where (two airports within close proximity) has really worked too well anywhere.''

St. Pete-Clearwater, though, is trying its hand by specializing in service to young, low-frills and charter airlines that cater mainly to tourists.

In Richmond, speculative office building has become a thing of the past. And nothing appears likely to change that scenario. ``The underwriting environment does not indicate that (speculative building) is forthcoming,'' said Paul F. Silver, president of Morton G. Thalhimer Inc., a real estate firm.

Overall office vacancy in the Richmond area at midyear was 11.8 percent, down from about 12.4 percent at the end of 1994. by CNB