AIrport Magazine April May Issue

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AAAE DELIVERS FOR AIRPORT EXECUTIVES

www.airportmagazine.net

April/May 2009

DEICING ISSUES IMPACT WINTER OPS

The Future for FIDS, BIDS and RIDS The Evolving Role of Regional Airlines Panama City: Growth of a Greenfield Airport


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Volume 21/ Number 2 | April/May 2009

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e d i t o r i a l a d v i s o r y B OARD A i r p o r t M e mb e r s William G. Barkhauer, Morristown, New Jersey Timothy L. Campbell, Baltimore, Maryland Jim Johnson, Odessa, Florida James L. Morasch, Pasco, Washington Timothy K. O’Donnell, Fort Wayne, Indiana Robert Olislagers, Englewood, Colorado Torrance Richardson, Fort Wayne, Indiana Elaine Roberts, Columbus, Ohio

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C o r p o r a t e M e mb e r s Bill Hogan, Reynolds, Smith + Hills STACY HOLLOWELL, Siemens One, Inc. Brian Lacey, Delaware North Companies Steve Pelham, Reveal Imaging Technologies Randy Pope, Burns & McDonnell Laura Samuels, Hudson Group

AAAE B OARD O F DIRE C TORS Chair Jim P. Elwood, Aspen, Colorado

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First Vice Chair John K. Duval, Beverly, Massachusetts Second Vice Chair James E. Bennett, Washington, D.C.

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Secretary/Treasurer Kelly L. Johnson, Bentonville, Arkansas F IRST P a s t C h a i r

Features:

Departments:

Krys T. Bart, Reno, Nevada second Past Chair Elaine Roberts, Columbus, Ohio

Winter Operations | 12

Board of DirectorS

Editor’s Corner

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Upfront

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JEFF L. BILYEU, Angleton, Texas

MarketScan

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THOMAS H. BINFORD, Billings, Montana

Billboard

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GARY A. CYR, SR., Springfield, Missouri

Finance Column

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BENJAMIN R. DECOSTA, Atlanta, Georgia

LessonsLearned

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LINDA G. FRANKL, Columbus, Ohio

GA Airport Issues

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MICHAEL A. GOBB, Lexington, Kentucky

Industry Metrics

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FoodBeverageRetail

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Plane Sight

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JEFFREY A. MULDER, Tulsa, Oklahoma

An evolving role for an important industry segment

Advertiser Index

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THOMAS M. RAFTER, Hammonton, New Jersey

FIDS, BIDS and RIDS | 24

Coming In Airport Magazine:

Northeast Chapter AAAE | 28

June/July 2009: Concessions Security Passenger Screening Access Control Behavioral Watch AMAC

Deicing Woes; and The annual Northeast Chapter Snow Symposium

Panama City-Bay County (Fla.) Airport: The Permitting Process | 16

Second in a series of special reports

Regional Airlines | 20

DANETTE M. BEWLEY, Reno, Nevada

LEW S. BLEIWEIS, Fletcher, North Carolina

ROD A. DINGER, Redding, California

GARY L. JOHNSON, Stillwater, Oklahoma ALEX M. KASHANI, Washington, D.C. MARK D. KRANENBURG, Oklahoma City, Oklahoma SCOTT C. MALTA, Atwater, California ROBERT P. OLISLAGERS, Englewood, Colorado WAYNE E. SHANK, Norfolk, Virginia DAVID R. ULANE, Aspen, Colorado

Could one size fit all?

Welcome to the Snow Symposium

China Airports | 34 Open for Growth

Chapter Presidents TOMMY W. BIBB, Nashville, Tennessee WALT STRONG, Norman, Oklahoma PHILLIP E. JOHNSON, Grand Rapids, Michigan ROBERT OLISLAGERS, Englewood, Colorado BARRY A. RONDINELLA, Sacramento, California MARSHALL B. STEVENS, Middletown, Pennsylvania P o l i c y R e v i e w C o mm i t t e e BONNIE A. ALLIN, Tucson, Arizona ROSEMARIE ANDOLINO, Chicago, Illinois WILLIAM G. BARKHAUER, Morristown, New Jersey

August/September 2009: Security—Domestic and International NextGen/GIS Environmental/Sustainable Energy Noise Mitigation

THELLA F. BOWENS, San Diego, California MARK P. BREWER, Manchester, New Hampshire TIMOTHY L. CAMPBELL, Baltimore, Maryland LARRY D. COX, Memphis, Tennessee ALFONSO DENSON, Birmingham, Alabama KEVIN A. DILLON, Warwick, Rhode Island THOMAS E. GREER, Monterey, California MARK GALE, Philadelphia, Pennsylvania SEAN C. HUNTER, New Orleans, Louisiana JAMES A. KOSLOSKY, Grand Rapids, Michigan LYNN F. KUSY, Mesa, Arizona

Cover Design: Daryl Humphrey

JAMES L. MORASCH, Pasco, Washington ERIN M. O’DONNELL, Chicago, Illinois BRADLEY D. PENROD, Pittsburgh, Pennsylvania MAUREEN S. RILEY, Salt Lake City, Utah RICKY D. SMITH, Cleveland, Ohio SUSAN M. STEVENS, Charleston, South Carolina

President Charles M. Barclay, Alexandria, Virginia

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editor’scorner M

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he readership of Airport Magazine continues to grow, thanks to the use of electronic media to spread our message. The choice of U.S. airport officials for the past 20 years, Airport Magazine also is viewed for its timely and relevant editorial content by airport officials and representatives of government agencies in countries throughout Europe, Asia, the Americas and parts of Africa. Most recently, we have received e-mails from government aviation officials in Africa, expressing their appreciation for our editorial content. Special features of the Airport Magazine Web site (www. airportmagazine.net) allow readers around the globe to access the current issue, as well as research an archives section that provides access to all issues for the past three years. A full-color interactive flip book for each issue allows readers to print out articles. And, of course, our subscribers receive printed copies as well. Features in this issue report on airports’ deicing experiences during the past winter; update the construction progress of the new Panama City-Bay County (Fla.) International Airport; highlight trends in airport signage; and review the status of regional airlines. We also offer a lot more: airport financial news, the latest information on general aviation, and an environmental case study in our LessonsLearned column. For your calendar: registration is underway for AAAE’s 81st Annual Conference and Exposition, set for June 14-17 in Philadelphia. At the conference, airport and airline executives will provide their assessment of the impact of the recession and their plans for managing their businesses during this downturn. On another subject: Hilary Fletcher’s title was listed incorrectly in the LessonsLearned department of the February-March issue. Fletcher is Pitkin County (Colo.) manager. Advertisers in this issue are: ASSA High Security Lock, Burns & McDonnell, Delta Airport Consultants, DME Corp., Hudson Group, Oshkosh, RS&H and WSI Corp. The support of these companies helps to make our magazine possible. Please support them as well. Sincerely,

Barbara Cook Editor

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Editor

Barbara Cook barbara.cook@aaae.org Publisher

Joan Lowden Executive Editor

Ellen P. horton Editor-At-Large

SEAN BRODERICK NEWS E d i t o r

Holly Ackerman Art Director

daryl humphrey Graphic Designer

JOACIR SOTO STA F F PHOTOGRAPHER s

Bill Krumpelman JAMES MARTIN S t a ff V i c e P r e s i d e n t Sales and Marketing

Susan Lausch susan.lausch@aaae.org E d i t o r i a l Off i c e

601 Madison Street, Suite 400 Alexandria, VA 22314 (703) 824-0500, Ext. 133 Fax: (703) 820-1395 Internet Address: www.airportmagazine.net Send editorial materials/press releases to: magazine@aaae.org Reprint information

The Reprint Department (717) 481-8500 Airport Magazine is published bimonthly by the AAAE Service Corporation Inc., a wholly owned subsidiary of the American Association of Airport Executives, and the Airport Research and Development Foundation. Subscription price for AAAE members is included in the annual dues. U.S. subscription rate to non-members is $50 for one year. International rate for non-members is $100. Single copy price is $12. Copyright 2009 by AAAE. All rights reserved. Statements of fact and opinion are the responsibility of the authors and do not necessarily reflect the views of AAAE or any of its members or officers. POSTMASTER Send address changes to: Airport Magazine 601 Madison Street, Suite 400 Alexandria, VA 22314



upfront

Welcome To AAAE’s Annual Conference

Philadelphia, host of AAAE’s Annual Conference and Exposition

AAAE and Philadelphia International Airport invite you to register for the 81st Annual AAAE Conference and Exposition, scheduled for June 14-17, 2009, in Philadelphia. Southwest Chairman and CEO Gary Kelly will open the conference on Monday morning, June 15. US Airways Chairman and CEO Doug Parker will deliver the keynote address at the June 17 luncheon. For further information and to register, go to http://www.aaae.org/ meetings/annual2009/. For exhibit and sponsorship information, contact susan.lausch@ aaae.org or kelcey.ostrega@aaae.org.

Airports Receive Funds For Stimulus Project FAA has published a chart outlining airport projects by category that will be funded by the economic stimulus package. The chart indicates the following amounts

to be spent in each category: security, $2 million; runways, $483 million; taxiways, $204 million; aprons, $182 million; terminals, $85 million; ARFF buildings, $34 million; new airport, $30 million; equipment, $14 million;

Estimated American Recovery and Reinvestment Act Airport Projects by Category* Runway Safety Area $12 Other $27

(in millions)

Security $2

Equipment $14

New airport $30 Aircraft Rescue and Fire Fighting Building $34

Runway $474

chart provided by faa

Terminal Building $87

Apron $182 Taxiway $205

runway safety areas, $12 million; and other, $27 million.

FAA Predicts 1 Billion Passengers By 2021 FAA continues to predict longterm growth in the nation’s skies, despite the current recession, but has pulled back from its forecast that U.S. airlines will carry 1 billion passengers by 2016. “We now believe the industry will reach this mark in 2021,” FAA officials said at the agency’s annual forecast conference, held recently in Washington, D.C. AAAE cosponsored the conference. FAA’s 16-year forecast for 20092025 predicts domestic passenger enplanements will decrease by 7.8 percent in 2009 and then grow at an average of 2.7 percent per year during the remaining 15-year forecast period. The number of passengers

*Amounts by category subject to change

The Transportation Security Clearinghouse processed more than 80,000 fingerprint 8

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Transportation System, or NextGen, is key to transformation of the ground-based air traffic control radar system of today to a satellitebased system of the future and is necessary for FAA to meet the safety, efficiency and environmental needs of the future, the agency said. FAA estimated that the cost of delays currently averages approximately $9.4 billion each year.

Work Begins On Miami People Mover

Obama Budget Adds Aviation System Funds President Obama’s budget outline for fiscal year 2010 and beyond emphasizes plans to modernize the air traffic control system, improve rural access to the aviation system and create a national infrastructure bank. Further, the budget outline states that the administration will push to “replace some aviation excise taxes with direct user charges,” starting in 2011. The budget outline also proposes to increase the existing aviation passenger security fee, beginning in 2012. Other aviation provisions in the proposed budget would: • provide $800 million for NextGen;

miami international airport

on U.S. airlines domestically and internationally is forecast to increase from 757.4 million in 2008 to 1.1 billion in 2025. U.S. aircraft operations are predicted to experience a 5.7 percent decrease in 2009 from 2008 levels. Beginning in 2010, the agency predicted operations will grow at an average annual rate of 1.5 percent for the remainder of the forecast period. FAA said the downturn in the economy has “dampened” prospects in the general aviation sector as well. “Longer term, we see growth in business aviation demand driven by a growing U.S. and world economy,” the agency said. “As the fleet grows, the number of general aviation hours flown is projected to increase an average of 1.8 percent a year through 2025.” (For more information on the GA forecast, see pages 38-39.) The Next Generation Air

Construction company Odebrecht and joint venture partner Parsons have broken ground on the MIA Mover, an automated people mover that will link Miami International with the Miami Intermodal Center. Construction is slated for completion in 2011. The total cost of the construction contract is $259 million, with the Florida DOT providing $100 million and the balance funded by bond revenue from the MiamiDade Aviation Department’s capital improvement program. Passengers will ride the 1.27mile MIA Mover free of charge. The

MIA Mover, projected to transport 48,000 visitors each day by 2020, will eliminate the need for more than a half-million shuttle bus trips to off-site car rental lots each year, substantially reducing traffic at the airport’s lower level and lowering greenhouse gas emissions from airport bus traffic, according to airport officials.

Groundbreaking for the MIA mover

submissions for the aviation community this quarter. AirportMagazine.net | april/may 2009

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upfront

• maintain small community access to the national airspace system;

abilene regional airport

• expand and enhance existing federal infrastructure investments through a national infrastructure bank designed to deliver financial resources to priority infrastructure projects of significant national or regional economic benefit; and • fund key investments to accelerate airline security. Additional funding will support investments to strengthen the security of U.S. airports and add 55 bomb appraisal officers who specialize in explosives and improvised explosives device recognition and response. The budget would provide $64 million to modernize the infrastructure used to vet travelers and workers. These funds will strengthen screening to reduce the risk of potential terrorism or other activities that threaten the nation’s transportation system, officials said.

U.K. Requires BAA To Sell Three Airports The U.K. Competition Commission (CC) said it will require airport operator BAA to sell both Gatwick and Stansted, as well as either Edinburgh or Glasgow airports. In its final report on BAA’s ownership of seven U.K. airports, published at www.competitioncommission.org.uk, the CC also stipulated that BAA must sell all three airports within two years. They are to be sold in sequence, beginning with Gatwick, then Stansted, followed by either Edinburgh or Glasgow. The sale of Gatwick was initiated by BAA in September 2008 and the sale process is underway. BAA’s U.K. airports are Heathrow, Gatwick, Stansted and Southampton in the south of England, and Edinburgh, 10

Glasgow and Aberdeen in Scotland.

Abilene Adds Cover To Entryway, Parking Areas Abilene (Kan.) Regional Airport has added an 11,500-square-foot white cover manufactured by FabriTec to enhance the drop off/pick up area at the terminal entrance, as well as installed fabric coverings for the short- and long-term parking areas. “As an airport that has to compete with larger airports within a three-hour drive in three different directions, we have to create and market value and convenience for our customers,” explained Don Green, A.A.E., director of aviation for the city of Abilene. “Adding coverage to the front curbside and for the parking spaces has provided two highly visible and appreciated amenities that we hope will translate into drawing more passengers.” Green noted that, “By protecting customers from direct sun, rain, hail and snow while they are picking up or dropping off at the curb or leaving their vehicles in the lot, we can make the whole experience less stressful and, hopefully, ensure that those customers use the airport again, which

AirportMagazine.net | april/may 2009

means added revenue to the airport. Based on comments I’ve heard since we completed these projects, I think the improvement in the appearance of the airport has generated more pride in this public facility.”

Southwest Tests SatelliteBased Navigation Southwest announced that it recently completed Required Navigation Performance (RNP) procedures on a roundtrip flight between Dallas Love Field and Houston Hobby. The demonstration flight was the result of two years of preparation and a partnership with FAA and industry, the carrier said. RNP is satellite-based navigation and is one of the cornerstones of NextGen, bringing together the accuracy of global positioning system technology, the capabilities of advanced aircraft avionics and new flight procedures. Southwest said it is investing $175 million during this six-year project to implement RNP procedures, retrofit aircraft and train its pilots. The company reported that the results of the demonstration flight indicated:


• Carbon reduction in one year of flying RNP procedures between Dallas Love Field and Houston Hobby could equal a reduction of approximately 8.42 million pounds of carbon dioxide. This is equivalent to removing 699 passenger cars from the road for one year. • The procedures produced fuel savings of 8 percent, which translates to approximately 43 gallons of fuel per roundtrip flight between Dallas Love Field and Houston Hobby. • Fuel savings in one year of flying RNP procedures between Dallas Love Field and Houston Hobby could equal approximately 400,000 gallons.

market in time for use at the Los Angeles Olympic Games in 1984, the company said.

Bin Ads Boost Airport Revenue SecurityPoint Media (SPM) reported that its checkpoint bin advertising program is generating incremental revenue at airport security lanes. The program, which stems from a TSA initiative in 2006-2007, allows a vendor to place advertising at the bottom of the bins that are used by

passengers in the security lane. The program has generated $80,000 annually at Denver International, but the income depends on the size of the airport and the amount of passenger traffic. SPM noted that several airport operators have opted to use the bin advertising program to promote their own messages, such as at Los Angeles International, where the FlyAway program is promoted. The FlyAway program provides nonstop bus service to the airport.A

FAA Answers Stimulus Funding Questions FAA has published a “frequently asked questions” page at http://www. faa.gov/airports_airtraffic/airports/aip/ arra/ on projects that may be funded with economic stimulus money.

SITA Completes Test Of Processing Technology

security point media

Aviation IT specialist SITA announced successful testing of a new technology for common use passenger processing. Orlando passengers traveling on Canadian carrier WestJet have been both checked in and boarded using the new Common Use Passenger Processing Systems (CUPPS) technology. The test went live Jan. 27, 2009, and the pilot will continue until mid-April 2009, according to SITA. When testing is completed, SITA’s AirportConnect Open platform will be considered as CUPPS compliant prior to a general product launch later in the year. CUPPS eventually will replace the current CUTE (Common Use Terminal Equipment) technology standard that SITA brought to the

SPM’s checkpoint bin ads boost airport revenue.

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Fluid

Faced with a shortage of their surface deicing fluid of choice this winter, airports took steps to keep planes moving.

Changes By Sean Broderick

A

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million gallons of its E36-brand potassium acetate RDF this winter, down from 9 million gallons produced for the 2007-2008 winter, which was more severe than average, explained Cyrotech President and General Manager Paul Johnson. Even so, in a typical winter Cryotech’s customers go through 6 to 7 million gallons of E36, meaning a shortage was inevitable. By September, FAA was reaching out through AAAE and other industry groups to notify airports and operators of the impending potassium photos by jim martin

irports overcame a shortage of their preferred runway deicing material — potassium acetate — this winter by stretching budgets, substituting new alternatives, and in some cases benefitting from Mother Nature’s good fortune. They also learned that despite some worthwhile alternatives, it’s hard to beat potassium acetate for keeping runways clear. Already facing declining revenues and everpresent environmental challenges, airports were hit with gloomy news as the 2008-2009 winter season approached: potash miners in Canada went on strike in mid-summer. Potash is needed to make potassium hydroxide, which is the key ingredient in potassium acetate, the most commonly used runway deicing fluid (RDF) at North American airports. Since about one-fourth of the world’s potash comes out of Canada, a strike of any significance was bound to hit RDF suppliers. The strike’s impact was significant enough to warrant a dire warning from Cryotech, a leading RDF supplier. The company told FAA in late summer 2008 that it expected to produce about 2


winter operations

“By September, FAA was reaching out through AAAE and other industry groups to notify airports and operators of the impending potassium acetate shortage.�

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winter operations acetate shortage. The agency then followed up with guidance letters in October and November that detailed the situation and highlighted alternatives to potassium acetatebased products. “This situation is a direct result of the lack of raw materials used in the manufacturing of any potassium acetate product,” FAA told the industry in an Oct. 10, 2008, letter explaining the situation. “In light of this shortage, airports should develop contingency plans to deal with winter conditions without the use of potassium acetate-based fluid deicers/anti-icers.” Fortunately, FAA already was working on alternatives before the potash miners’ strike, explained FAA spokesperson Marcia Adams. The agency had friction and general performance tests scheduled on several products for late September and early October 2008 at New Hampshire’s Pease International Tradeport. Following the trials, the agency approved seven new RDFs for use on runways, noting that they “performed equally to the RDFs being used today,” Adams said. FAA informed the industry of its findings in a Nov. 11, 2008, memo. Both suppliers and airports were taking action before FAA’s memos hit the streets. By August 2008, Cryotech knew it had major supply-chain issues, Johnson explained. “At a time when we ought to be ramping up inventory on a product that we have all the approvals on, contracts in place and prices in place, we were faced with a challenge.” The company moved quickly on two fronts. It notified existing contract holders how much E36 it 14

would be able to deliver and at what price. Specific amounts allocated to airports were based on two factors: the expected production amount and the customer’s purchase history. Cryotech also reached into its research and development arm and selected two products, NX360 and XT360, both based on a proprietary chemical derived from corn, that were in development. FAA tested and approved the materials as part of the trials at Pease International. “We took a risk,” Johnson acknowledged. “We had some things that didn’t rely on potassium hydroxide. We accelerated those out, got industry approvals on them, got them friction-tested, and had those products shipping out into the field by Nov. 1.”

Airport Decisions New offerings and higher prices meant decisions for the airports. At their August 2008 board meeting, Fort Wayne-Allen County (Ind.) Airport Authority executives were granted approval to fast-track a 22,500-gallon order of RDF, skipping the normal bidding process.

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Even with the quick move, the authority still paid $8.29 per gallon, or $6 per gallon more than in the previous winter. The big order also required extra on-site storage — a common side effect of the RDF shortage as airports prepared to stockpile enough chemicals, in either the form of extra potassium acetate or substitute materials, requiring dedicated storage, for the winter months. Eugene (Ore.) Airport managed by spending more money. The airport paid about $35,000 for the amount of E36 it used to obtain for $15,000, said Airfield Director Rich Weiss. “Damage was done to our budget, but more important was that we never once were at a point where the safety of our customers was being compromised,” he said. At Aspen/Pitkin County (Colo.) Airport, the shortage presented a double-dose of bad news. Not only did it mean higher prices because of the cost run-up, but forecasters were calling for a snowier 2008-2009 winter season than the year-earlier period. Factor in that the 2007-2008 winter dumped what Aspen/Pitkin County Airport Assistant Director


Francey Jesson, C.M., called an “extreme” amount of snow — 213 inches — on the city, and the airport’s challenge was both clear and significant.

Proactive Steps

Aspen airport raised its chemical budget for both liquid and granular products from $150,000 in 2008 to $500,000 in 2009. In 2007-2008, Aspen used 53,000 gallons of E36, or about 18,000 gallons more than in 2006-2007, which Jesson called an “average year” for snowfall — 150 inches. Aspen also moved quickly to secure as much E36 as possible, as soon as possible, and was one of the customers to take a flyer on Cryotech’s new NX360, for which it paid $8.07 per gallon. The airport found that NX360 worked “fairly well,” Jesson reported. It proved to be a bit less effective than E36 in very cold temperatures, so the airport

used NX360 on the milder days and saved its preferred RDF for more extreme conditions. “This was a little more labor-intensive for staff, but worked pretty well,” Jesson said. With an assist from Mother Nature, Aspen’s preparation looks as though it has paid off. Through February, the airport had received about 137 inches of snow, well below forecasts. It had gone through 17,000 gallons of E36 and had 16,000 gallons in reserve. “We never experienced an inventory shortage at Aspen [this winter] because we had about 1,300 gallons of E36 left over from last winter and were aggressive in getting as much as we could delivered of both products in late fall before winter, and before the shortage from vendors became acute,” Jesson explained. “All in all, as concerned as we were in late fall last year about the shortage of RDF, it didn’t have the

“By August 2008, Cryotech knew it had major supplychain issues...”

continued on page 36

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Greenfield

Airport

Prepares for Take-off Thanks to Innovative Approach to Permitting By Randy Curtis, A.A.E.

Airport Magazine is pleased to present the second in a series of reports by Panama City-Bay County (Fla.) International Airport Executive Director Randy Curtis, A.A.E., that chronicle the process of relocating the airport to a new site 12 miles away. The new location was donated by the St. Joe Company, Bay County’s largest private landowner. For the background on the airport and the reasons for relocating it, see “Panama City Airport Relocation Diary,” beginning on page 56 in the August/September 2008 issue of Airport Magazine. In this second report, Curtis discusses the permitting process.

D

evelopment of the new Panama City-Bay County International Airport in northwest Florida is moving along at a brisk pace. Construction of the airport’s 10,000-foot runway is nearly three months ahead of schedule, the terminal building and other vertical structures are underway, and the nation’s newest and “greenest” international airport is on track to open in May 2010. It hasn’t always been such smooth flying. There have been challenges to the new airport, but by using innovative approaches to the permitting processes, the Panama City-Bay County International Airport Authority has been able to successfully clear the hurdles inherent in building a new airport. The new airport site is the 16

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all photos provided by Panama City-Bay County International Airport

panama city diary


Site development for the airfield and the terminal are underway.

centerpiece of the 74,000-acre West Bay Sector Plan, one of the largest mixed-use developments in the U.S. The West Bay plan includes an industrial district, low-impact residential communities, and retail and business centers. A primary feature of the West Bay plan — and what really sets this project apart from others — is that 41,000 acres, or about 60 square miles around West Bay, including 33 miles of undeveloped shoreline and an additional 44 miles of creeks and tributaries that feed the bay, will be protected forever. In addition, the sector plan creates conservation buffers, some as wide as 1,000 feet, along the rivers and creeks that feed into the bay. This is more than 30 times the amount required by law. To help protect the environment, future development around the airport will be clustered. Instead of piecemeal development of small, scattered land parcels to meet the state requirements to mitigate all of the proposed developments, the sector plan calls for huge areas of conservation lands. This will protect watersheds that feed into the St. Andrews Bay. Dominated by pine flatwoods and wetlands, the

conservation land is home to endangered species and vegetation such as the Snowy Egret, Blue Heron, Florida Black Bear, Gopher Tortoise and Pitcher Plant. This unique conservation approach effectively helps with land management and preserves entire ecosystems rather than bits and pieces. The airport authority also set a goal of increasing wetlands quality by enhancing the mitigation area to well above the capacity of the current wetlands and by providing mitigation far in advance of potential impacts. Further, the airport authority has pro-actively committed to following “Outstanding” Florida water standards for stormwater, the highest standard in the state, even though it is not required. Two years of intensive baseline water quality data have been collected for Burnt Mill Creek, Crooked Creek and West Bay for use in ongoing water quality monitoring. The planning and design of the airport site also has been targeted at ensuring that the facility will have the least impact possible on the surrounding environment. The airport will have minimal impact on the surrounding AirportMagazine.net | april/may 2009

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panama city diary “Use of ecosystem team permitting streamlined the process and produced a net benefit for the environment. It also provided for better public involvement.” wetlands and creeks. A specially designed stormwater system captures water on-site and filters it through a series of holding ponds before releasing it into nearby creeks and wetlands. Most of the materials used in the construction of the airport’s runway come from nearby sources, thereby substantially reducing transportation requirements. The airport itself will have the first Leadership in Energy and Environmental Design (LEED)certified terminal building in the nation, with a state-of-the-art stormwater management system, extensive use of sustainable materials and a landscaping plan that will not require supplemental irrigation. Florida’s innovative sector planning process enabled the airport to be located within a massive master planned community. Working with a 74,000-acre greenfield site, Bay County, in cooperation with the state, was able to undertake the type of long-range planning most communities cannot. With public involvement every step of the way, the West Bay Sector Plan overlay mapped out industrial, commercial and residential developments, as well as such infrastructure as roads, electric lines and water and sewer. It gave the local community and planning officials at the state level a view of what the area will look like 50 to 100 years from now. The sector plan overlay was just one step in the permitting process. Within the sector plan are two Detailed Specific Area Plans (DSAP), which sketch out the planning in much more detail. One DSAP is for the airport and the other is for the St. Joe Company’s commercial and residential developments, located west of the airport. The DSAPs 18

were approved by the Bay County Commission in December 2003. For the development of the airport, various state and federal permits had to be obtained. Again, as with the overall planning process, the airport authority took a different approach toward pursuing its environmental permits.

Ecosystem Team

Typically, the airport authority would have worked with each of the regulatory agencies separately as it sought permits. But the authority opted to use the state’s new ecosystem team permitting process, which allowed the permits to be pursued simultaneously in a controlled and coordinated manner. As part of this process, the airport authority and the Florida Department of Environmental Protection, operating under a memorandum of understanding, formed what became known as the small circle committee. The inner circle, or the core group, included the airport authority and the two primary regulatory agencies that had to approve the project: FAA and the Army Corps of Engineers. The middle circle included other agencies such as Florida Fish and Wildlife Conservation Commission, Florida Department of Community Affairs and Bay County. The outer circle included the environmental advocacy groups and the general public. As the process moved forward, monthly meetings open to the public were held to work through the details and technical aspects of the permitting process. Use of ecosystem team permitting streamlined the process and produced a net benefit for the environment. It also provided for

AirportMagazine.net | april/may 2009

better public involvement. As a result, the airport authority was able to protect and enhance the St. Andrews Bay ecosystem and tributaries and mitigate stormwater runoff. The airport authority agreed to mitigate for the entire 4,000-acre site now, even though only 1,300 acres are being developed initially. FAA approved the airport’s environmental impact statement and issued a final record of decision in May 2006. The Army Corps issued its permit in August 2007. Both permits were challenged in federal court. Construction of the airport was able to begin in January 2008, while the legal challenges moved forward in federal courts in New York, Atlanta and Jacksonville. The challenge to the Army Corps permit was dismissed late last year. A final ruling in the FAA challenge is expected at any time. Seven court rulings to date have upheld the position to build the new Panama City-Bay County International Airport, which has allowed construction to proceed. The airport authority’s ability to overcome the legal challenges and allow the construction of the airport to proceed was the result of actions taken early in the permitting process. More than 100 public meetings were held, and alliances were formed with environmental groups such as the Audubon Society, whose officials understood the positive impact the sector plan had on protecting St. Andrews Bay. The lessons learned from this experience? Do it right from the beginning. Don’t cut corners. Listen to opponents, treat them fairly and respond to their concerns. It may require a lot more effort, but the end result will be much more positive. A


Contributed by

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Aviation Solutions

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Top 10 International Destinations from U.S. Airports (All Airlines) April-June 2009 vs. 2008

All Airlines Available Seats for International Destinations (by region) from U.S. Airports April-June 2008 and 2009

AirportMagazine.net | april/may 2009

19


regional airlines

Regional Airlines photos provided by regional airlines and port columbus international airport

By Barbara Cook

R

egional airlines represent a dynamic link in the nation’s aviation network, operating almost one half of total scheduled flights nationwide through partnerships with mainline carriers. Nearly one in every five U.S. domestic passengers flies on a regional carrier, and at 74 percent of the nation’s commercial service airports, regional carriers provide the only scheduled service. However, as legacy carriers trim capacity across the board due to the economic downturn, the stress is being felt by their regional airline partners as well, leaving many in the industry to ask what the future role of regional airlines will be in a changed U.S. aviation market. Bryan Bedford, chairman, president and CEO of Republic Airways Holdings, which operates Chautauqua Airlines, Shuttle America and Republic Airlines, told Airport Magazine that, “Regional carriers will continue to be the primary link between small town America and the major business 20

centers and hubs. In a low-demand and low fuel-cost environment, 50- to 90-seat passenger regional jets are the right-sized product to provide frequent nonstop travel alternatives to both business and leisure travelers.” For 2009, though, Bedford said his company is forecasting its first year of declining capacity in more than 10 years. “We are conserving capital and pruning underperforming operations in preparation for a recovery in 2010,” he stated.

AirportMagazine.net | april/may 2009

“Like commercial service airports across the nation, Indianapolis anticipates some reduction in capacity by both regional and mainline airlines during these challenging economic times.”

U.S. airports that benefit from regional airline service and investment are strong supporters of the carriers, which typically operate under a mainline partner’s brand, such as AmericanConnection, Continental Express and Midwest Connect. Indianapolis International Airport Director Robert Duncan, A.A.E., emphasized the value of regional carriers in their ability to develop new service to smaller origin and destination markets and to increase the opportunity for adding new destinations in larger markets. “In Indianapolis, we have been able to develop and initiate service into new markets, including Austin and San Antonio, Texas, and Hartford, Conn., that would have been unlikely using an airline’s mainline operations,” he explained. However, Duncan commented that, “Like commercial service airports across the nation,” Indianapolis anticipates “some reduction in capacity by both regional and mainline airlines during these challenging economic times.”


Sector Vitality

Bruce Carter, A.A.E., director of Quad City (Ill.) International Airport, said that his facility has been successful in acquiring and retaining regional airline service. In the past, the airport has offered incentives to regional carriers to upgrade or increase service, he said. “A few years ago, we were able to start nonstop Denver service by UA Express, American Eagle service to Dallas Fort Worth, and Northwest Airlink service to Memphis International, using incentives. Once the incentives expired, the air service remained.” The expanded number of destinations available to airports due to regional airline operations often is only one benefit of service by regional carriers. Both Republic and American Eagle perform maintenance in the Columbus International Air Center, a privately owned complex on the south side of Port Columbus International Airport. David Whitaker, vice president-business development and communications for the Columbus Regional Airport Authority (CRAA), said that, while the airport does receive a percent of gross revenue from aviation activity in that facility, the greater gain for CRAA is the resulting air service and jobs. “American Eagle service to Boston and Raleigh from Columbus is a direct result of the maintenance base,” he said. “We have been told they would not be serving those markets but for the base.” Whitaker added that Republic Holdings provides express service for several airlines from Columbus. “I can’t directly correlate that service with the maintenance activity, but I certainly think the base helps us with activity at the terminal,” he said. According to a Republic Holdings official, “I don’t have an estimate for the total economic impact of Republic Airways in Columbus, but a good indicator of it would be to take a look at our total payroll for Columbus-based employees. We currently employ more than 700 Columbus-based employees. For 2008, our estimated base wages to [these] employees was $29.7 million. Also for 2008, our estimated taxes and benefits for Columbus-based employees was $8.2 million.”

Regional carriers are demonstrating strong balance sheets, which underscores the vitality of the sector. For example, in what Raymond James & Associates Inc., in its 2009 Growth Airline Outlook, described as “a surprising twist,” Republic, which provided outsourced regional flying for Frontier prior to that carrier’s bankruptcy, is one of the parties providing debtor-in-possession funding as Frontier completes its restructuring. The nation’s economic recession, which has caused legacy airlines to review closely the agreements they have with regional carriers, may threaten the survival of certain traditional partnerships, however. Raymond James predicted that, “As long as legacy carrier customers avoid bankruptcy, which is likely in the near-term given dramatically lower fuel prices, existing regional carrier contracts will be upheld.” However, the firm noted that recent cost-cutting actions by Delta, which signal that the carrier wants to exit or restructure existing regional contracts, “create a headline risk for regional stocks.” The firm added that, “Despite legacy airlines’ intent to restructure, we believe the long-term contracts underlying regional earnings streams will be upheld. With the longterm commitment of flying from legacy airline customers, regional carriers commit their balance sheets and credit-worthiness to acquire new regional aircraft. Therefore, substantial cause must be present to renege on these commitments beyond the desire for lower costs.” While the long-term outlook supports the belief that regionals will retain their legacy partner contracts, Raymond James predicted that

AirportMagazine.net | april/may 2009

21


regional airlines

Growth Scenario

regional airlines face “limited organic growth” since capacity reductions are occurring across all segments of the domestic airline industry. To combat this potential downsizing, the financial services company suggested that several options exist to supplement the sector’s traditional fixed-fee/capacity purchase agreements. Among these, the firm noted that financially strong regional carriers are redeploying idle aircraft for use by carriers “with limited financial strength in exchange for equity participation,” such as Republic’s October 2008 announcement that its Shuttle America subsidiary was selected by Mokulele Airlines of Hawaii to operate four, 70-seat Embraer 170 jets under a 10-year capacity-purchase agreement. One key provision of the agreement states that Republic will provide up to $8 million in direct financing to Mokulele in the form of a line of credit, which can be converted at Republic’s option, up to 45 percent of the common stock of Mokulele. Further, Republic signed an agreement with Midwest Airlines to provide 12, 76-seat Embraer E170 jets operating as Midwest Connect with initial service beginning in October 2008. Republic also made a one-year, $15 million term loan to Midwest, with an additional loan commitment of $10 million, based on the achievement of certain milestones. 22

Another possible growth scenario is for leading regional carriers to pursue international joint ventures in certain markets outside the U.S., Raymond James said. These joint ventures, “which would be limited to minority interest investments given foreign ownership restrictions, may lead to a share of joint venture profits, or potentially a home for existing idle regional aircraft that are no longer in service for legacy carriers (e.g., 50-seat regional jets),” the firm explained. Regional Airline Association (RAA) President Roger Cohen told Airport Magazine that, “Regional carriers have a great ability to adapt. Their theme is ‘we are one system.’” That enthusiasm was echoed by Dan Wolf, president of Cape Air, in a recent issue of RAA’s Regional Horizons publication. Acknowledging that “the new normal will be different,” Wolf said the industry needs to keep pressing for funding of FAA’s Next Generation Air Transportation System (NextGen), a program of 21st century technologies to ensure future safety, capacity and environmental needs are met. “I’m optimistic this will happen,” he said. A Barbara Cook is editor of Airport Magazine. She may be reached at barbara.cook@aaae.org.

AirportMagazine.net | april/may 2009

Regional Airline Industry Profile* Regional airlines, operating nine- to 78-seat turboprops and 30- to 108-seat regional jets, provide short- and medium-haul scheduled airline service to 640 U.S. airports. At 476 airports, regional airlines provide the only scheduled service. 70 regional airline companies operate in the U.S. Regionals account for 160 million passenger boardings annually. Regional airlines transport nearly one out of every five air travelers in the U.S. The average seating capacity of the regional fleet was 50.5 seats in 2008 and predicted to grow to 63 seats in 2025. As of Oct. 31, 2008, the U.S. regional fleet totaled 2,577 aircraft. Regional Airline Association members transport 98 percent of the nation’s regional airline passengers. *From the 2008-2025 FAA Aerospace Forecast and the Regional Airline Association


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signage

FIDS,

BIDS

and

RIDS – Could One Size Fit

All? By Holly Ackerman

Th e a irp o rt s i g n a g e i n d u s t r y is movin g a wa y fr om syste ms defined by t he info rm a t i o n t h e y d i s p l a y a n d e volvin g towa r d on e syste m that ca n b e u s e d t o m a k e o pe r a tion s r u n smooth ly a ir por twide.

24

AirportMagazine.net | april/may 2009


G

one are the days when flight, baggage and ramp information display systems — FIDS, BIDS and RIDS — were compartmentalized, stand-alone systems, each with its own hardware and infrastructure. More and more airports are seeing the benefits of a single information display system that can be used from the roads leading passengers to parking and the terminal, to the airside where pilots and other airline and airport personnel use information to move efficiently from ramp to runway. Daktronics Aviation Market Manager Todd Lambert explained that airports are installing the company’s LED (light-emitting diode) FIDS in places such as parking and cell phone lots to provide flight arrival details and advertising along with other information and instructions. The signs’ bright LED displays make them suitable for outdoor use in direct sunlight.

“Large FIDS displays can also encourage customers to stay near concession and retail areas,” Lambert noted. “If they know when their flight is leaving, they’ll be more likely to relax and shop — a trend that we’re noticing is on the rise. It’s also possible to combine flight status with video or animations, turning a large LED display into an entertainment and information center.” He added that airports also are installing large FIDS displays above public areas to allow travelers to feel more at ease as they wait in lines. “For example, Nashville International Airport installed two 13-foot by 19-foot FIDS displays that present tri-color, high-resolution flight

“ L arge FIDS displays above p u blic areas allow travelers t o feel more a t ease as they w a it in l i ne s.”

Vancouver International Airport installed large video and FIDS displays in the customs area, at the ticket counters and in the food court. High-resolution video displays inform and entertain travelers who speak many different languages.

information above ticket counters.” The technology behind the signs is driving the evolution in the way signage is being employed at airports. Mark Lewellyn, director of sales and marketing for Innovative Electronic Designs (IED), said his company’s key word for signage and information display applications is “integration.” He explained that, “Although IED can provide blocks of information display, such as visual paging, MUFIDS (multi-user flight information display system), BIDS, etc., as individual stand-alone systems, the most efficient use of technology is to integrate the functions of information display, visual paging, security checkpoint communication, and audio paging/ public address into one seamlessly integrated system. These various systems can use common servers and a common database system.” Lewellyn cited as an example the integration of signage and audio paging. “When a microphone paging station in a gate area initiates a ‘final call’ flight announcement message, four things happen simultaneously: the audio paging system plays an automatic assembled final call audio message; the visual paging system simultaneously scrolls the visual text of that announcement word for word, synchronized with the audio, for full ADA (Americans With Disabilities Act) compliance; the status on the MUFIDS screen changes to ‘final call’; and the gate information display screen shows ‘final call.’” Air-Transport IT Services (AirIT) Executive Vice President and COO Chris Keller said that new ways of delivering information to a variety of viewers continually are being developed.

AirportMagazine.net | april/may 2009

25


signage

New technology can be used to increase the visual appeal of the information provided and combine a wide array of information, not just flight details, Keller explained. “We can display any type of content over an airport FIDS device — video, emergency messaging, visual paging, and of course advertising.” Through one operational database, monitors in specific areas can be selected to display targeted information, Keller said. For example, the same type of LED signs that are providing arrival information in the cell phone lot can be mounted on the airside exterior of the terminal building to provide flight-specific information to pilots, as well as information for groundhandling personnel. Like Keller, Daktronics’ Lambert said there is a trend to implement this type of ramp information display system. “They allow airlines to display flight numbers, destinations, fuel load, weather information, emergency information and gate numbers. They lessen fuel consumption and costs associated with untimely departures,” he explained. According to Lambert, airports increasingly use dynamic content to welcome specific groups of customers. Washington Dulles and Tallahassee (Fla.) airports, for example, use high-resolution, full-color displays for guidance and customer-centric graphics and animation. Keller added that information in the databases can be “tied to target advertising information. For example, if you have a Japanese flight coming in, we can pre-schedule ads for that specific flight activity. When you put in a FIDS system, the infrastructure should also be used for non-FIDS information. For example, if the airport wants to display advertising within the airport, they already have the infrastructure. They can hang 26

additional specified monitors and, through that same system, provide advertising for airport tenants.” In that vein, Miami International is using high-tech signs to promote its concessions. Digital monitors recently were installed by Westfield Concession Management to display the airport’s directory of restaurants and stores. The digital screens list the locations of all 60 dining, retail and duty-free concession locations in the airport’s pre-security areas from terminals C to J. Images of the storefronts rotate every 10 seconds on the terminal map to showcase each of the concessions. The monitors are the latest addition to a list of Miami’s Central Terminal improvement projects that also includes new digital, colorcoded FIDS monitors in the terminal and valet parking areas; similar BID system monitors in the baggage claim areas; and renovated way-finding and concession signage. Unusual signage configurations also can be used to draw traveler interest and attention. JetBlue recently implemented manufacturer NEC’s digital signage at New York’s John F. Kennedy International.

AirportMagazine.net | april/may 2009

The “Digital Signage Ring,” which received an APEX Award at the Digital Signage Expo, is comprised of 43 separate, 40-inch NEC LCD monitors installed in the shape of a giant oval suspended from the ceiling. The Digital Signage Ring shows JetBlue’s branding content and also will be used for advertising and entertainment and to inform travelers. Custom content was created for the unique ring shape. JetBlue also purchased more than 200 LCD displays from NEC for its flight information displays throughout the terminal. Beyond the airport, AirIT’s Keller noted that the same technology that distributes information within the airport can be used for external applications as well. “We also are leveraging Web services,” he said. “We can take data and post it to a Web page and have it display in local hotels or convention centers or any other remote location through the Internet.” A Holly Ackerman is news editor of Airport Magazine. She may be reached at holly.ackerman@aaae.org.


airportbillboard B

P

assengers by airport Traffic for January 2009

Airport

2009

2008

Albuquerque Sunport

396,618

460,826

-13.9

Birmingham (Ala.)

191,839

234,931

-18.3

Boston Logan

1,617,736

1,828,956

-11.5

Denver

3,669,679

3,760,828

-2.4

Detroit Metro

2,359,971

2,669,326

-11.6

Gainesville Regional (Fla.)

19,774

21,453

-7.8

Kansas City

667,815

808,325

-17.4

Little Rock

157,355

176,679

-10.9

Los Angeles

4,268,383

4,810,815

-11.3

Louisville

222,537

276,751

-19.6

Nashville

611,392

706,154

-13.4

Omaha

299,209

319,768

-6.4

Philadelphia

2,143,199

2,317,662

-7.5

Phoenix-Mesa Gateway

41,824

27,672

+51.1

Port Columbus

429,225

588,525

-27.1

Raleigh-Durham

617,904

702,546

-12.0

Reno-Tahoe

295,827

385,612

-23.2

Richmond (Va.)

237,117

255,950

-7.4

T.F. Green (Rhode Island)

310,211

345,422

-10.1

Salt Lake City

1,561,077

1,740,774

-10.3

San Luis Obispo (Calif.)

18,142

26,424

-31.3

Domestic and International Fares Airlines Reporting Corporation

08 Domestic Fares 08 International Fares 09 Domestic Fares 09 International Fares

35 30

ht

left

Dollars in Billions

nal

% Change

Gresham, Smith and Partners announced that it has been selected as part of the design/build team led by Messer Construction Co. to provide architecture and design services for a new inline explosives detection system (EDS) at Nashville International Airport. The project is aimed at improving and streamlining operational activities with regard to safety and security of the baggage screening process, as well as increasing public space in the ticket lobby. Design and construction is expected to be completed in November 2010. Throughout the project, Nashville International will remain fully operational for all commercial airline activity. Messer will serve as the prime contractor and Texas-based Glidepath will provide and install the inline EDS equipment. The Chicago Department of Aviation announced the selection of Aeroterm U.S. Inc. to begin contract negotiations to develop more than 55 acres of land and 750,000 square feet of building space for cargo facilities in the northeast area of O’Hare International. The master developer for the O’Hare Northeast Cargo Plan will develop, in phases, four cargo processing facilities and airside aircraft parking spaces. The new facilities will accommodate a larger generation of freighter aircraft, specifically the 747800. The overall development includes truck docks, employee parking areas, comprehensive security controls, and an expansion of the existing northeast fuel farm. Construction of the first phase of development is expected to begin by 2010. The term of the ground lease for the development is 35 years and the current estimated value to the city of Chicago over the life of the lease is approximately $350 million.

Grey- 09 Domestic Black- 09 International

25 20 15 10 5 0

uildout

Jan.

Feb.

Mar.

Apr.

May

June July

Aug

Sept

Oct.

Nov.

Dec.

Construction on a terminal expansion at South Bend (Ind.) Regional is expected to start this summer and conclude in late 2010. The new 45,000-square-foot concourse expansion will include five gates, dining room, lounge and gift shop and a children’s room. The renovation also will consolidate passenger screening operations to a single expanded location. AirportMagazine.net | april/may 2009

27


Northeast Chapter/American Association Of Airport Executives

43rd International Aviation Snow Symposium

Dear International Aviation Snow Symposium Attendees: On behalf of the Northeast Chapter of the American Association of Airport Executives, I welcome you to the 43rd Annual International Aviation Snow Symposium. This event is the premier snow removal conference in the country. Here you will find many opportunities to learn through scheduled sessions and through interaction with your peers from many different airports. This year is special because it is one of the Snow Symposium’s triennial equipment years. The main floor of the Buffalo Niagara Convention Center is filled with snow removal equipment, including brooms, blowers, plows, trucks, deicing equipment and much more. I encourage you to get around and see all of this. The many vendors onsite are pleased to show you what they have, and they also learn much from you on ways to improve the equipment. Finally, I would like to thank all of the exhibitors and sponsors who make this event possible. Your support of the Snow Symposium is greatly appreciated, and I hope that the event is as beneficial for you as we have found it to be for our airport members. We are always looking for ways to improve the experience, and I encourage you to provide suggestions, either in the designated box or to one of the committee members listed in your program. Once again, welcome and enjoy the conference. Marshall B. Stevens, A.A.E. President, NEC/AAAE

28

AirportMagazine.net | april/may 2009


44th International Aviation Snow Symposium

April 24-28, 2010 Buffalo, New York

Hi-Lite Markings, Inc. is the leading AIRPORT RUNWAY and TAXIWAY MARKING contractor in the United States. Hi-Lite also specializes in SURFACE PREPARATION, RUNWAY RUBBER and PAINT REMOVAL, RUNWAY FRICTION TESTING and PAVEMENT MAINTENANCE. Utilizing modern, technologically advanced equipment and a team of professional, knowledgeable, highly trained technicians, Hi-Lite offers competitive pricing for unsurpassed performance, making Hi-Lite the source for all your pavement marking and maintenance needs.

The Oshkosh Airport and Municipal Products Group, a division of Oshkosh Corporation, is a designer and builder of industry-leading snow removal and aircraft rescue and fire fighting vehicles. Its H-Series™, HT-Series™, P-Series™ and MPT-Series™ snow removal chassis are known for their durability and superior performance and sold throughout the world. For more information, visit www.oshkoshairport.com.

AirportMagazine.net | april/may 2009

29


Finance

Airports Are For People by Judi Olmstead

I

am fortunate to live in a location where people love to vacation. Charleston, S.C., recently was recognized in Southern Living magazine for many honors, including Favorite Southern City, Best Weekend Getaway, Best Family Destination and Best Festivals, among others. Charleston International Airport (CHS), situated adjacent to Charleston Air Force Base, is primarily an origin and destination airport with business leaders commuting to various locations and tourists flocking year-round to escape the winter and experience the rich history of the area. Together with our partners in the airport restaurants, gift shops, rental car companies and TSA, more than 1,000 individuals share our limited space, thereby having a direct economic influence on multiple community and airport sectors. Along with a healthy tourism market, CHS is the busiest joint-use airfield in the U.S. and employs approximately 7,500 civilians, active duty and reserve airmen. Certain airfield facilities are owned, operated and maintained by the U.S. Air Force. On our opposite side, Vought Industries recently constructed a manufacturing plant for production of two rear fuselage sections of the 30

AirportMagazine.net | april/may 2009

new 787 Dreamliner, employing approximately 600 persons. The constant here is PEOPLE, whether passengers, employees or tourists. Although many of us in the finance arena do not interact daily with our passengers, tourists or possibly other employees on a regular basis, we should not forget that these folks are our customers. How we treat our peers, staff and the common stranger reflects on our airport, our community and, of course, ourselves. The economy mandates that we implement prudent spending habits, and there are the obvious cost containment measures we all try to execute with a final goal of working smarter and doing more with less. Then there is the not-so-obvious. An on-going project that comes to mind is our Wellness Committee. The committee was born in 2007 when a group of volunteers came together with a goal of enhancing organizational health and decreasing absenteeism due to illness and stress. We organized educational events and health fairs and invited local speakers to coach us on various wellness topics. We have taken the appropriate steps to identify areas in which a majority of our


employees are at risk, and we have developed a goal-oriented matrix to address these issues. This plan will be rolled out to our employees within the next six to nine months. From a financial perspective, focusing on employees and their health can provide significant savings. With insurance premiums showing double-digit increases, more employers are pushing the staff to get healthy or pay the price, literally. Monetary incentive programs, contributions to flexible spending accounts, fractional gym membership contributions and flexible work schedules to allow for workouts are among the more popular ideas to offset a potential additional cost to the employee. We have learned that a majority of employees actually will pay attention to their health if an employer provides encouragement. Sick employees cost us money.

We have to ensure their daily responsibilities are completed by other personnel, and we subsequently feel the pressure of reported excessive claims at insurance renewal. Healthy habits among your work force can be contagious. Team-building and meeting specific goals can go a long way to improve morale, increase communication among departments and decrease absenteeism. Take the example of Atlanta International’s “Ivey League,” a group of 25 employees who participated in a breast cancer three-day, 60-mile walking event to honor the passing of Mary Ivey, an administrative assistant for the department of aviation. In addition to the camaraderie and positive physical outcomes, the team raised $22,000. Not all events have to be physical. We sponsored a Society for the

Prevention of Cruelty to Animals pet food drive in our public atrium and collected almost $1,000 in pet supplies and cash, resulting in improved employee morale and recognition from multiple sources. What a heart-warming experience to see employees, meeters/greeters and passengers working together to achieve a goal. No employee was absent that day. At the end of the day, we will not be remembered for accomplishments, achievements or even failures. Positive results, in terms of finance, production and morale, can be measured in terms of lower employee benefit costs, improved attitudes, higher self-esteem and genuine spirit. This is my goal. A Judi Olmstead is director of finance and administration at Charleston International Airport.

AAAE, in cooperation with numerous airport and industry security officials, has developed a new Authorized Signatory interactive, computer-based training course, created in response to TSA’s Security Directive 1542-04-08 Series. The course, which is expected to be available soon, covers the role and responsibilities of an authorized signatory or designee and the requirements for being an authorized signer. The content has been reviewed by industry experts to ensure that the training meets the TSA requirement.

This universally applicable, non-airport-specific course is available on DVD with capability for local printing for certificates of completion, or may be integrated into AAAE’s Interactive Employee Training (IET) or eCISTM learning management systems.

AirportMagazine.net | april/may 2009 31 For more information, contact Jim Martin at (703) 824-0500, Ext. 166, or e-mail jim.martin@aaae.org.


lessonslearned

Portland’s Liquid Collection Stations Minimize Landfill-bound Waste By Michael Budds

C

hanges in aviation security regulations not only have altered the way the world flies, but also the amount of waste that airline passengers generate. Since TSA placed restrictions on liquids, staggering amounts of beverages and other liquids are collected at airport security checkpoints nationwide. Airline passengers, who forget or are unaware of regulations restricting liquids, often gulp their beverages in the security checkpoint line. If passengers choose not to drink their beverages, what happens to all of the coffee, juice and bottled water collected at security checkpoints? Unfortunately, these containers often are thrown away because full containers are not allowed in “commingled recycling” because soiled paper loses its value as a recyclable commodity. (The term “commingled” can vary by region, but in Portland, Ore., commingled means mixed paper, plastic bottles and tubs, steel and aluminum cans.)

32

Portland International, responding to the enormous need to minimize waste and the excessive weight of liquids in checkpoint trash cans, unveiled new liquid collection stations at its security checkpoints. The program was designed to capture liquids while reducing the frequency of waste collection, decreasing the amount of landfill waste (heavy liquid-filled bottles), and increasing the capture of recyclable containers generated at the airport. The program is thought to be one of the few of its kind in the U.S. With an estimated 90 tons of liquid from security checkpoints disposed of annually at the airport, the Port of Portland realized that establishing a method of liquid capture would provide numerous benefits to airport employees, the environment and the airport’s bottom line. Janitorial staff often struggled with lifting extremely heavy bags of liquid containers near checkpoints, which required more frequent collection to minimize the weight. The heightened risk for

AirportMagazine.net | april/may 2009

employee injuries and the increased cost of more frequent janitorial staffing led the port to assess potential alternatives. In an attempt to maximize the savings associated with lower disposal costs, reduced staffing requirements and minimized risk of work-related injury, the port focused on removing the liquids from the checkpoint waste stream. The port projected an estimated $32,000 in potential savings annually from the liquid collection stations, solely due to reducing the number of collection trips. The port also recognized that a reduced waste stream would lessen the environmental impact of its daily operations. Less trash means fewer trips to the landfill, which in turn decreases fossil fuel use and reduces the amount of greenhouse gases emitted from transporting waste to regional landfills. Landfills are also a source of greenhouse gas emissions, and minimizing their volume contributes to further emissions reductions.


Empty beverage containers are recyclable, which contributes to the port’s goal of reducing landfillbound waste. Once through security, passengers who retain their nowempty container may choose to reuse it. This option for reuse is preferable to recycling due to the greater environmental benefit associated with reduction and reuse. However, recycling collection bins are available for beverage containers post-security. The development of liquid collection stations at the airport was a collaborative process that required input from a variety of contributors. For instance, port employees worked with janitors to

ASSA.Airport.Bleed:Layout 1

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3:11 PM

address their needs: mobility, ease of use and maintenance. The liquid collection station is designed to be rolled just 20 yards to a storage closet and drained into a mop sink as opposed to having janitors transport liquid-filled containers to the central waste collection area. TSA was consulted to ensure that use of the stations would fit into the agency’s operational framework. TSA’s experience provided valuable help in determining the feasibility of the project. The port also teamed with students from Portland State University’s Community Environmental Services, a research branch of the College

of Urban and Public Affairs. The students helped to determine opportunities for waste reduction through studies and support of the airport’s waste minimization operations. Finally, the project was made possible by a talented team of designers, fabricators and artists at the port who had the foresight to look for unique solutions to some of the new challenges faced in the aviation industry. A Michael Budds is a project coordinator for Community Environmental Services and is working on the Port Technical Assistance Project (PTAP). PTAP is designed to assist with the implementation of the Port of Portland Waste Minimization Program.

Page 1

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china

Open for Growth The Outlook for China’s Airport Development By Kamal Latham

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C

hina plans to spend an estimated $65 billion to build 97 new airports by 2020, according to the Civil Aviation Administration of China (CAAC). Robust growth in passenger and cargo volume and limited air service in many areas are key drivers for this large-scale aviation infrastructure development initiative. China counted 147 civil airports at the end of 2006. According to the national airport development plan, there will be 190 airports by 2010 and 244 by 2020. The 97 new airports will be distributed among five major geographic areas: 24 in Northern China; 26 in Northwest China; 21 in Southwest China; 14 in South and Central China; and 12 in East China. Passenger traffic and cargo volume have experienced steady growth during this decade. Chinese airports handled a combined total of 388 million passengers in 2007, which represented a 17 percent increase over 2006. Passenger traffic was 332 million in 2006, which was 2.5 times the volume in 2000. Total cargo volume in 2007 was 8.6 million tons, which was a 14.3 percent rise over 2006. Providing more accessible air service to average Chinese citizens is an important priority for central government officials. After the 97 new airports are online, 82 percent of China’s inhabitants will live within 62 miles — or approximately a 90-minute drive — of an airport. At the end of 2007, only 61 percent of the population lived within this range, according to CAAC.

Tianjin is a typical city in Northern China that is in the midst of an airport expansion program. In 2007, Tianjin Binhai International built a new terminal and was ranked the 12th busiest airport in China. It was also among the fastest growing airports in China with a 40 percent increase in passenger traffic in 2007. The airport is expected to handle 40 million passengers annually after additional expansion phases are completed within a few years. Yunnan Province in the Southwest also will benefit from China’s airport development plans. In 2007, there were 11 airports in Yunnan that recorded combined passenger volume of 21 million passengers and cargo volume of 246,000 tons. By 2010, five new airports will be built in the province, and three existing facilities will be expanded. The increased capacity will help Yunnan accommodate the tens of millions of tourists that visit the province each year. Kunming, the capital of Yunnan Province, will boast the fourth largest aviation hub in China — after Beijing, Shanghai and Guangzhou — when a new airport is completed. In 2007, Kunming International ranked seventh in China in passenger traffic, cargo volume and aircraft movements. Due to capacity constraints, the central government approved construction of a new airport with an estimated total investment of $3.3 billion. As a gateway hub linking China to Southeast Asia, the new Kunming International will have four runways and more than 100 gates. Traffic forecasts indicate that passenger volume will increase to 43 million people and cargo volume will rise to 700,000 tons by 2020. The facility is expected to handle 70 million passengers by 2035. CAAC has designated the new Kunming International as the first “green” airport in China. The country’s emerging emphasis on sustainable development and

“After the 97 new airports are online, 82 percent of China’s inhabitants will live within 62 miles — or approximately a 90-minute drive — of an airport.” energy efficiency potentially could create business opportunities for airports and other enterprises in the U.S., as China wants to deepen its understanding of the American experience in harnessing modern technology and developing green airports. A Kamal Latham is general manager for China of Diplomatic Treatment and a former aviation officer in the economic section at the U.S. Embassy in Beijing. He develops China access strategies and can be reached at Lathamki@diplomatictreatment.com.

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winter operations continued from page 14

impact we thought it would.” Salt Lake City International Airport’s proactive steps started with planning meetings for key personnel to cover all aspects of the shortage and its possible impact. “As soon as we got notice of the shortages from our suppliers, operations and maintenance departments held a series of planning meetings, evaluated from worst- to best-case scenarios and mapped a plan of action that included a modified protocol to apply chemicals based on a more critical evaluation of weather conditions,” said airport Superintendent of Maintenance Medardo Gomez, A.A.E. The airport purchased two alternative materials, sodium acetate and sodium formate, for testing and evaluation. Part of the planning included figuring out how best to use the alternative materials to maximize yield and, therefore, minimize cost. Still, since the alternatives were more expensive, even the most judicious application procedures wouldn’t keep overall costs down. “So far the budgetary impacts have been higher than past years but lower than expected, as the need for chemicals has not been as much as we thought,” Gomez explained. “We think a combination of good management, storage capability, chemicals purchasing contracts, and a mild winter are the reasons for the results.” As for the future, count Salt Lake City International among those that hope the potassium acetate shortage is a thing of the past. “We hope that potassium acetate will continue to be available at a reasonable price. It has been a very effective product in our deicing efforts,” Gomez said. “As for alternate products, we will continue to test and research as they become available.”

Available Alternatives

Crytotech’s Johnson is not surprised about airports’ attachment to potassium acetate. It works, and airports are so used to using it that they don’t have to think about how to get the most out of it. “Airports really appreciate the potassium acetate formulas that 36

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have been out there for years,” he said. “They know how to handle them and how to use minimum chemicals.” The shortage of Cryotech’s E36 product did shed some light on alternatives, however. Johnson acknowledged that NX360 is likely a stopgap with little commercial potential beyond the current winter season, partially because of the handling challenges that Aspen and other airports discovered in very low temperatures. However, the operational experiences from the newest products could mean that another product — branded BX36 — that mixes the corn-derived chemical and potassium acetate could have a market, Johnson said. Still, Johnson underscored, change like this isn’t made simply for change’s sake. “If you’ve got an airport that is doing just fine with potassium acetate and it’s priced just right,” he noted, “they may not have a reason to change.” A Sean Broderick is editor-at-large of Airport Magazine. He may be reached at sean.broderick@aaae.org.



GeneralAviation

N

ot surprisingly, FAA’s recently released outlook for the general aviation industry over the next 16 years reflects the same short-term downturn that the agency is predicting for commercial aviation. FAA released its 2009-2025 outlook at the March 31-April 1 forecast conference in Washington, D.C., which was cosponsored by AAAE. FAA said the downturn in the economy has “dampened” near-term prospects in the general aviation sector. “Longer term, we see growth in business aviation demand driven by a growing U.S. and world economy,” the agency said. “As the fleet grows, the number of general aviation hours flown is projected to increase an average of 1.8 percent a year through 2025.” Much of the anticipated GA growth reflects increased flying by business and corporate aircraft, as well as steady, if relatively small, annual percentage increases in utilization rates for piston aircraft, the agency said. Hours flown by turbine aircraft, including rotorcraft, are forecast to grow 3.6 percent annually over the forecast period, compared with 0.4 percent for piston-powered aircraft. Jet aircraft will account for most of the increase, though, with hours flown expanding at an average annual rate of 5.2 percent through 2025, according to FAA. Based on its own surveys, as well as input from industry organizations, FAA concluded that, “As the demand for business jets has grown over the past several years, the current forecast assumes that business use of general aviation aircraft will expand at a more rapid pace than that for personal/sport use. In addition, corporate safety/security concerns for corporate staff, combined with increasing flight delays at some U.S. airports, have made fractional, corporate and on-demand charter 38

flights practical alternatives to travel on commercial flights.” The size of the active GA fleet is projected to increase at an average annual rate of 1.0 percent over the period of the forecast, growing from an estimated 234,015 aircraft in 2008 to 275,230 aircraft by 2025. The more expensive and sophisticated turbinepowered fleet, including rotorcraft, is projected to grow at an average of 3.2 percent annually over the forecast period with the turbine jet fleet increasing by 4.8 percent a year, the agency said. FAA noted that industry experts had expected the market for Very Light Jets (VLJs) could add 500 aircraft a year to the active fleet by 2010. These new aircraft were believed to have the potential to redefine the business jet segment by expanding business jet flying and offering performance that could support a thriving on-demand, airtaxi business service. However, “Events since that time have dampened expectations for a rapid penetration of VLJs into the market, most notably the bankruptcy of Eclipse and the demise of DayJet,” the agency said.

AirportMagazine.net | april/may 2009

Despite this setback, FAA said that its forecast assumes that about 200 VLJs will enter the active fleet in this country over the next two years and then increase to a rate of 270300 planes annually for the balance of the forecast, totaling 4,875 aircraft by 2025. Beginning in 2005, FAA created “light sport” as a new category of aircraft. At the end of 2007, a total of 6,066 aircraft were estimated to be in this category. The new forecast assumes this fleet will increase by 930 aircraft annually until 2013, including both newly built aircraft and conversions from ultralight trainers. By 2025, a total of 15,865 light sport aircraft are projected to be in the fleet. The number of active GA pilots, excluding air transport pilots, is projected to be 509,900 in 2025, FAA said, a gain of 0.5 percent yearly over the forecast period. The number of student pilots is expected to grow at an average annual rate of 0.4 percent, reaching 86,600 in 2025. In addition, the agency is projecting that by 2025, a total of 20,600 sport pilots will be certified. “As of Dec. 31, 2008, the


number of sport pilot certificates issued was 2,623, reflecting a growing interest in this new entrylevel pilot certificate,” FAA noted. Additional details on the FAA forecast, including information on cargo demand, landing and takeoff operations at airports and FAA facilities, can be found at the forecast Web site at http://www.faa.gov/ data_research/aviation/aerospace_ forecasts/2009-2025/. A fact sheet on the forecast is also available at http:// www.faa.gov/news/fact_sheets/news_ story.cfm?newsId=10457.

In an effort to increase communication with the GA community, TSA has assigned Juan Barnes as the GA liaison for all security-related questions. Barnes’ responsibilities will include inquiries regarding recent security directives and other initiatives at commercial service airports that may impact GA operations, the upcoming vulnerability assessment of 3,000 GA airports, and the proposed Large Aircraft Security Program (LASP). Barnes may be reached at TSAGeneralAviation@dhs.gov. TSA also said it will convene monthly calls with the industry’s GA Coalition, of which AAAE is an active member.

AAAE and members of the GA Coalition attended an April 6 TSAsponsored workshop focusing on the proposed LASP. AAAE was represented by Robert Olislagers, A.A.E., chair of AAAE’s GA Security Working Group; Jeanne Olivier, A.A.E., vice chair of AAAE’s Transportation Security Services Committee; and Carter Morris, AAAE’s senior vice president for transportation security policy. The LASP regulation would require all U.S. operators of aircraft exceeding 12,500 pounds maximum take-off weight to implement security programs that would be subject to compliance audits by TSA.

The proposed regulation introduced the potential requirement for airports servicing these large GA aircraft to implement a partial airport security program, if they do not have one in place, and to identify law enforcement officer support and designate airport security coordinators. While the discussion at the workshop included flight crew background checks, passenger watch-list matching, aircraft weight threshold, audits, security coordinators and prohibited items, several positive solutions were suggested that could limit the need for new airport security coordinator and airport security program requirements.

TSA agreed to hold a follow-up meeting on May 6 with industry representatives. In the meantime, AAAE will continue to work with its GA Security Working Group and meet regularly with the GA Coalition to develop additional solutions to respond to industry concerns about the LASP.

TSA has announced the addition of three new GA gateway airports for Reagan Washington National Airport: Los Angeles International (Landmark Aviation only), Manchester (N.H.) Airport (Wiggins Airways only), and Long Beach (Calif.) Airport (Signature Flight Support only). A

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industrymetrics

ARRA and AIP Funding by David Scatterday

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resident Obama’s highly publicized economic stimulus package was intended as an ideal opportunity to address the funding challenges facing public-use infrastructure in the United States, among other priorities. The following column will evaluate the stimulus appropriation directed to aviation and provide analysis of the funding in the context of the AIP grant program and long-term aviation capital investment needs. The stimulus package, known officially as the American Recovery and Reinvestment Act (ARRA) of 2009, was signed by President Obama on Feb.17, 2009. The $790 billion legislation allocated $48 billion to public-use infrastructure. ARRA’s funding appropriation by infrastructure sector is illustrated below:

The $1.3 billion allocated to aviation comprises 3 percent of total infrastructure spending. Aviation funds are available from two broad categories; (a) grants-in-aid to airports, and (b) supplemental funding for facilities and equipment. Grants-in-aid monies are discretionary grants to airports to improve critical airport infrastructure, for noise abatement programs and for runway safety systems. These funds will be treated as AIP “pure” discretionary funds and are not subject to any formulas, special apportionment categories or minimum set-asides. Supplemental funding for facilities and equipment is provided to airports to acquire improved power systems, air route traffic control centers, air traffic control towers, terminal radar approach control facilities, and navigation and landing equipment.

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ARRA AIP and Discretionary AIP Grants A critical characteristic of the ARRA aviation allocation is its treatment of grants-in-aid as AIP pure discretionary grants. Pure discretionary grants lie at the bottom of the AIP grant program’s “funding waterfall.” This is effectively the residual of the AIP appropriation after all entitlements and discretionary set-asides have been allocated. According to FAA’s AIP handbook, the purpose of the pure discretionary funds is to provide funding to projects based solely on their standalone merit as measured by the agency’s national priority system. Within this framework, projects are scored based on their contribution toward accomplishing the purposes of the AIP program with highest priority given to safety, security, reconstruction, standards and capacity, in that order. FAA has identified a candidate pool of the highest priority projects by region based upon these criteria.


In fiscal year 2007, non set-aside discretionary funds equaled approximately $488 million, or 14 percent of the total annual AIP appropriation. As illustrated below, the ARRA AIP allocation of $1.1 billion is itself a 36 percent increase in the total allocation for discretionary AIP grants and a 125 percent increase in non-set-aside discretionary funds, which are pure discretionary funds plus discretionary funds for capacity/safety/security/ noise projects, compared with fiscal year 2007 levels. The ARRA allocation represents a significant expansion of this value-driven funding category.

ARRA AIP and the Aviation Investment Deficit ARRA AIP funds provide an incremental and important contribution toward closing the aggregate capital investment gap in aviation. Combining ARRA AIP funds with AIP funding in the currently proposed FAA reauthorization legislation will provide approximately $4.6 billion in capital grants in fiscal year 2009, a record funding level for the AIP program. Despite facilitating historic levels of FAA capital grant funding, ARRA AIP alone will not address completely the existing capital investment gap in aviation. FAA has identified 16 airports that will require additional capacity to meet growing demand through 2015. The Transportation Construction Coalition estimates that annual capital needs are approximately $17.5 billion, while the total funding available to airports from all sources is only about $11.4 billion, leaving an investment gap of about $6 billion per year. The airport industry argues that the persistent investment deficit in aviation underlines the need for the swift passage of a comprehensive and multi-year FAA reauthorization bill that provides for increased AIP funding and a PFC increase to $7.50 indexed to inflation. A David Scatterday is a consultant with Infrastructure Management Group (IMG), which provides management consulting and financial advisory services to airports and other infrastructure owners and operators.

A legislative exemption provides ARRA funds with additional value: ARRA AIP funds can comprise 100 percent of total project costs and do not require a local match. This provision is beneficial to airports in a weak or rapidly deteriorating financial position. ARRA AIP funds will drive the development of high-value yet unprogrammed projects at airports unable to provide local capital.

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FoodBeverageretail

H

artsfield-Jackson Atlanta International Airport has opened 35 new stores as part of its ongoing retail renaissance program, including seven stores in the Atrium, and will offer a total of more than 70 new stores in all by August 2009. Airport officials expect the concessions in the Atrium to improve customers’ travel experiences and to meet upscale tastes of global customers. The concessions program will introduce several national, upscale retailers, such as Sean John, the clothing line of celebrity Sean “Diddy” Combs; Brooks Brothers; Ermenegildo Zegna; Salvatore Ferragamo; and jeweler Bvlgari, as well as spas, a hair and nail salon and body care products from LATHER, Kiehl’s, Lancôme and L’Occitane. Georgia-themed stores will include Zoo Atlanta’s Panda Veranda, Georgia Aquarium’s Beyond the Reef, Piedmont Park’s Travel Mart, Atlanta Daily World and Savannah Candy Kitchen.

The airport also will add 15 business service locations, including sales of business products, leasing of office space and concierge type services, as well as additional upscale retail concessions. With the new stores, the airport will house more than 200 concessions locations, including retail, services and dining outlets. Hartsfield-Jackson received the Atlanta Business Chronicle’s “Best in Real Estate: 2008 Deal of the Year” award in the Retail category for its concessions program. A

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photos provided by Hartsfield-Jackson Atlanta International Airport

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planesight jim martin

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