San Jose Airport Officials Have New Home

SAN JOSE (KCBS) - Monday was moving day for airport officials in San Jose as they transferred their belongings to the new Terminal B.

The cost-cutting move comes as Mineta San Jose International Airport's line of credit has been slashed by international banks.

KCBS' Matt Bigler Reports:

"One of the reasons that we moved into the airport is because it allows us to no longer pay rent for office space off the airport," said airport spokesman David Vossbrink.

He said the savings come to about $2 million a year. But at the same time, the airport is coming up short by about $110 million in letters of credit from banks.

"This reflects the tightening of credit across the country," Vossbrink said. "It really is all about the national credit crunch."

Vossbrink said the airport has plenty of cash to pay their bills and that this is just a matter of flexibility.

But San Jose Mayor Chuck Reed said he is still concerned.

"I have to be concerned anytime we have to go to the capital markets to refinance," said Reed.

But Mayor Reed said he remains optimistic that airlines will want to increase business at SJC, as he meets with CEOs of major airlines, trying to lure more business to the hub.

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