Airport Magazine June/July 2009 by Airport Magazine

AAAE

Delivers

for

Airport

Executives

www.airportmagazine.net | June/July 2009

BASIC

BLACK

Getting the most for your money is always in style.

Today, it’s a must.

Burns & McDonnell will help you achieve maximum cost efficiency in your existing or new facility. From energy-saving upgrades to hangar design-build to security systems design, we’ll find ways to help you conserve resources, control costs and stay in the black.

Engineering, architecture, construction, environmental and consulting solutions for the aviation industr y

Atlanta • Chicago • Denver • Houston • Kansas City, Mo. • Miami • Phoenix • San Diego • St. Louis Chattanooga, Tenn. • Cincinnati • Dallas-Fort Worth • Minneapolis-St. Paul • New York • O’Fallon, Ill. • San Francisco • Wallingford, Conn. • Washington, D.C. • Wichita, Kan.

Volume 21/ Number 4 | June/July 2009

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

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 John K. Duval, Beverly, Massachusetts

First Vice Chair James E. Bennett, Washington, D.C. Second Vice Chair Kelly L. Johnson, Bentonville, Arkansas

Secretary/Treasurer Bruce E. Carter, Moline, Illinois F IRST P a s t C h a i r

Features: Cover

Airport Magazine Roundtable | 14

Airport Concessions Trends

Beyond the Checkpoint | 21 New Screening Technologies Reduce Delays

AAAE’s Annual Conference | 28

Departments:

Jim P. Elwood, Aspen, Colorado second Past Chair Krys T. Bart, Reno, Nevada

Editor’s Corner

Upfront

Executive View

Operations Column

GA Airport Issues

Finance Column

MarketScan

Billboard

JEFF L. BILYEU, Angleton, Texas THOMAS H. BINFORD, Billings, Montana LEW S. BLEIWEIS, Fletcher, North Carolina GARY A. CYR, SR., Springfield, Missouri BENJAMIN R. DECOSTA, Atlanta, Georgia ROD A. DINGER, Redding, California LINDA G. FRANKL, Columbus, Ohio KIM W. HOPPER, Portsmouth, New Hampshire GARY L. JOHNSON, Stillwater, Oklahoma MARK D. KRANENBURG, Oklahoma City, Oklahoma

AirporTech

JEFFREY A. MULDER, Tulsa, Oklahoma

Advertiser Index

THOMAS M. RAFTER, Hammonton, New Jersey

SCOTT C. MALTA, Atwater, California ROBERT P. OLISLAGERS, Englewood, Colorado ROBERT F. SELIG, Lansing, Michigan

Coming In Airport Magazine

A Community Vision Realized

DANETTE M. BEWLEY, Reno, Nevada TOMMY W. BIBB, Nashville, Tennessee

News Briefs

Photos and Thank-you’s

Springfield-Branson’s New Terminal | 18

Board of DirectorS

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

DAVID R. ULANE, Aspen, Colorado Chapter Presidents WILLIAM F. MARRISON, Knoxville, 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

October/November 2009: ARFF Ground Transportation Airport/Seaport Contract Towers

ROSEMARIE ANDOLINO, Chicago, Illinois WILLIAM G. BARKHAUER, Morristown, New Jersey 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 EDWARD C. FRENI, East Boston, Massachusetts

Cover Design: Daryl Humphrey

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

AirportMagazine.net | June/July 2009

editorâ&#x20AC;&#x2122;scorner M

n this issue, Airport Magazine publishes the first part of our inaugural Airport Concessions Trends Roundtable, which begins on page 14. We appreciate the energy and ideas put forward by our panelists: Steven Baker, vice president-business administration, Metropolitan Washington Airports Authority; Patrick Banducci, senior vice president-business development, HMSHost; Stuart Holcombe, executive vice president-business development, HDS Retail; and Andrew Weddig, vice president, Unison Consulting. Part two will follow in the August/September issue.

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

Other features in this issue include an update on access control technology and a look at the newly opened Springfield-Branson (Mo.) National Airport terminal. We introduce a new department in this issue: Airport Operations. Many thanks to John Kinney, C.M., at Denver International for launching this much-requested column. Look for future columns that will be written by operations personnel at other airports. If you have an operations topic that you would like to have addressed in this column, or if you wish to author a column, please contact me. We thank our advertisers in this issue: ASSA High Security Lock, Burns & McDonnell, Delta Airport Consultants, DME Corp., GeoEye, HDS Retail, the National Air Traffic Controllers Association, Ricondo & Associates, RS&H and Siemens. We appreciate the support of these companies, which help to make our magazine possible. Please show them your support in return. 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. The choice of U.S. airport officials for the past 20 years, Airport Magazine 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. Please keep reading, and send me any ideas you have for articles that would be helpful for your airport or company.

Barbara Cook Editor

AirportMagazine.net | June/July 2009

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

photo by jim martin

AAAE/IAAE Sign Business Development Agreement with Abu Dhabi Airports Co.

(left to right) Jalal Haidar, permanent representative of the UAE to the International Civil Aviation Organization; Bonnie Allin, A.A.E., IAAE chair; and Spencer Dickerson, AAAE Senior Executive Vice President, sign the agreement.

AAE/International Association of Airport Executives (IAAE) and the Abu Dhabi Airports Company (ADAC) have signed a memorandum of understanding (MOU) to enhance aviation services, including the establishment of a regional training center in Abu Dhabi, for airport officials in the Middle East and Gulf regions. The MOU, signed at AAAE’s recent Annual Conference and Exposition in Philadelphia, calls for ADAC’s Gulf Centre for Aviation Studies (GCAS) to be the region’s exclusive learning center for AAAE/IAAE training programs, including the Accredited Airport Executive (A.A.E.) program. AAAE and ADAC also plan to work together on other initiatives, including aviation business development, conferences, training and research that will benefit the rapidly developing Middle East and Gulf regions. “ADAC is a dynamic organization that is continuously developing and expanding its activities,” said ADAC Chairman Khalifa Mohamed Al Mazrouei. “Our policy has been to establish partnerships with the best-regarded aviation- and aerospacerelated companies worldwide, as we endeavour to support the growth of Abu Dhabi’s economy and achieve excellence by raising the bar for airports everywhere. We are delighted to sign this agreement with AAAE and IAAE and look forward to working together for the benefit of our industry.” “AAAE and IAAE welcome the opportunity to collaborate with Abu Dhabi Airports Company and create opportunities to enhance aviation in the Middle East and Gulf regions,” said AAAE Senior Executive Vice President Spencer Dickerson. “AAAE’s wide range of products and services, including standalone interactive computer-based training, Web-based training, customized on-site instruction and meetings management expertise, means we can offer a myriad of capabilities as an aviation partner.” “IAAE’s goal is to help expand AAAE’s reach to the global aviation industry and foster collaboration and information exchange between airport executives worldwide,” said IAAE Chair Bonnie Allin, A.A.E, and president/CEO of the Tucson Airport Authority. “We look forward to creating a lasting, mutually beneficial relationship with the Abu Dhabi Airports Company.”

At the recent Paris Air Show, Le Bourget, ADAC announced a number of high-profile partnerships with leading organizations in the aviation and aerospace sectors, which will help spur the development of the Emirate of Abu Dhabi as one of the most technologically advanced centers for aviation worldwide. ADAC currently operates five airports in the Emirate and is developing the Abu Dhabi Airport Logistics Park, which is adjacent to Abu Dhabi International Airport, the primary entry point into the Emirate and a growing civil aviation hub, and will provide a range of facilities for aviation-related businesses. ADAC is also developing a major aerospace cluster in Al Ain that will attract small and medium-sized enterprises (SMEs) from the industry worldwide, to expand their international trade and establish operations. The cluster also will feature a center of excellence for technology and innovation in the global aerospace industry. AAAE is the world’s largest provider of interactive airport training and has spent years developing and refining various delivery methods for both federally mandated and value-added training. AAAE’s patented Interactive Employee Training (IET) system has completed more than 1.2 million training sessions for airport and airline employees at 82 airports nationwide. The association’s eCISTM product is the world’s first learning management system purpose-built for the airport environment. The ANTN Digicast Web-based video training platform has more than 200 airport customers. AAAE’s on-site programs have been tapped by major airport systems, including Atlanta Hartsfield-Jackson International Airport and the Port Authority of New York and New Jersey, to offer customized, instructor-led training to their staffs. A

AirportMagazine.net | June/July 2009

upfront

AAAE Elects New Officers At Annual Conference John Duval, A.A.E., director of operations, planning and development for Beverly (Mass.) Municipal Airport, took office June 17 as AAAE’s chair for 2009-2010. The association’s membership also elected other members of the executive committee and board of directors during the June 14-17 AAAE Annual Conference and Exposition in Philadelphia. Jim Bennett, A.A.E., Washington, D.C., was elected first vice chair; Kelly Johnson, A.A.E., Bentonville, Ark., was elected second vice chair; and Bruce Carter, A.A.E., Moline, Ill., was elected secretary/treasurer. James Elwood, A.A.E., Aspen, Colo., is the association’s first past chair, and Krys Bart, A.A.E., Reno, Nev., is second past chair. Newly elected to the association’s board of directors for 2009-2010 are: Tommy Bibb, A.A.E., Nashville, Tenn.; Bill Hopper, A.A.E., Portsmouth, N.H.; Robert Selig, A.A.E., Lansing, Mich.; and Carter.

Randy Babbitt

John Porcari

Babbitt, Porcari Assume New Positions Randy Babbitt has assumed the position of FAA administrator while John Porcari is the new DOT deputy secretary. During his confirmation hearing 8

AirportMagazine.net | June/July 2009

before the Senate Commerce Committee, Babbitt, a former president of the Air Line Pilots Association, stated that he intends to move forward strategically and efficiently on NextGen implementation and in a manner that takes advantage of existing infrastructure. Porcari told Commerce Committee members that DOT “must relentlessly focus on safety, accountability and transparency, while at the same time encourage innovation and collaboration.”

TSA Approves AAAE Training Content TSA has approved the content of AAAE’s new interactive, computerbased Authorized Signatory Security Training course. The training course, which is being shipped to airports now, covers the role and responsibilities of authorized signatories and the requirements for being an authorized signer, including identification document requirements and the deactivation and retrieval process. The course content is a combination of video and graphics and includes test questions. The DVD version of the course is fully interactive and prints certificates of completion using a computer’s default printer. The video content of the course, exclusive of testing, is 16 minutes in length. The training, which is mandated by TSA’s Security Directive 1542-0408G, was developed in conjunction with the staff of Portland (Ore.) International Airport. The content of the universally applicable, nonairport-specific course has been reviewed by other airport and security officials to ensure that the training meets government requirements. The course is delivered on DVD

with local printing capability for certificates of completion, or may be integrated into AAAE’s Interactive Employee Training (IET) or eCISTM learning management systems. For an order form, go to www.aaae.org/ _pdf/_govpdf/Authorized%20 Signatory%20Order%20Form%20 2009.pdf. For other information, contact Jim Martin at (703) 824-0500, Ext. 166, or e-mail jim.martin@aaae.org.

Biometrics Pilots Begin At Atlanta, Detroit DHS is now collecting biometrics — digital fingerprints — from non-U.S. citizens departing the U.S. as part of a pilot program at Hartsfield-Jackson Atlanta International and Detroit Metro airports. “Collecting biometrics allows us to determine faster and more accurately whether non-U.S. citizens have departed the United States on time or remained in the country illegally,” said DHS Secretary Janet Napolitano. “The pilot programs in Atlanta and Detroit will help us determine and develop standard procedures for use at airports across the country to expedite legitimate travel and enhance our nation’s security.” DHS said that U.S. Customs and Border Protection (CBP) officers will collect biometrics at the boarding gate from non-U.S. citizens departing from Detroit. TSA officers will collect biometrics at security checkpoints from non-U.S. citizens departing from Atlanta. These pilots are expected to continue through early July. The department said that within the next year it will begin to implement new biometric exit procedures based on these pilots for non-U.S. citizens departing the United States. Non-U.S. citizens departing this country from all other ports of entry

Proposed new hangar here.

Bird habitat here.

Possible extended threshold here?

Lat: 14° 44’ 22” N

Long: 17° 29’ 24”

10.Jan.2009 Resolution:.50m ICAO: GOOY

Information to make airport operations efficient and safe. GeoEye’s Airport Mapping Database (AMDB) lets you identify efficiency, safety and security improvements in your arrival, taxing and departure flight operations. Gain critical insight via 3D big-picture overviews to unique vantage angles with the ability to inspect airport features as small as .50 meter. It’s decision-enhancing data to increase arrivals and departures, reduce ground fuel burn and design optimal airport development plans. To make airport operations more profitable, look to GeoEye’s Airport Mapping Database services. www.geoeye.com / amd b

News Briefs

AirportMagazine.net | June/July 2009

will continue to follow current exit procedures, which require travelers to return their paper Form I-94 (Arrival-Departure Record) or Form I-94W (for Visa Waiver Program travelers) to an airline or ship representative. Since 2004, the State Department and CBP have collected biometrics from most non-U.S. citizens between the ages of 14 and 79, with some exceptions, when they apply for visas or arrive at U.S. ports of entry.

Construction Proceeds On New Las Vegas Terminal Construction is approximately 20 percent completed on the new $1.5 billion Terminal 3 at Las Vegas McCarran International. Designed by PGAL, the project stretches across the airport’s north boundary and includes a 1.8 millionsquare-foot terminal building on three levels providing 14 new aircraft

gates (six international “swing gates” will accommodate widebody aircraft and provide additional domestic gate capacity); terminal facilities for 44 gates, including an existing 30-gate concourse linked by a people mover system; multiple security screening checkpoints and baggage claim devices; a new roadway system; and a 6,000-car parking structure. Federal Inspection Service facilities will be able to process 1,600 arriving international passengers per hour. Terminal facilities also include common use check-in facilities, stacked security screening checkpoints, outbound baggage operations with inline explosives detection system screening, inbound baggage/baggage claim facilities, concessions and airline support. The terminal will feature major pieces of public art, including multistory sculptures, by national and local artists. Completion of the terminal project is scheduled for 2012.

rendering supplied by las vegas mccarran

The Southeast Chapter-AAAE, at its annual conference May 3-5 in Reston, Va., elected officers for the coming year. The new officers, who assumed their positions July 1, are: William Marrison, A.A.E., Knoxville, Tenn., president; Scott Brockman, A.A.E., Memphis, Tenn., president-elect; and Michael Landguth, A.A.E., Chattanooga, Tenn., secretary/ treasurer. Tommy Bibb, A.A.E., Nashville, Tenn., is immediate past president….TSA named Dr. Emma Garrison-Alexander as assistant administrator for the Office of Information Technology (OIT). As assistant administrator and as chief information officer, Garrison-Alexander will lead an office with a nearly $400 million budget. OIT plans, organizes, provides, implements and maintains a fully integrated, certified, accredited and modern IT infrastructure. Garrison-Alexander also will have responsibility for developing and managing central policies and procedures for all of TSA’s IT requirements…. Asheville (N.C.) Regional Airport Authority Board has appointed Lew Bleiweis, A.A.E., airport director. Bleiweis has served as deputy airport director since April 2008, overseeing the administration, finance, public safety, IT and operations departments…. Alfred Moreno has joined the Manhattan office of architecture and engineering firm Stantec as a principal and airport terminal leader for the U.S. Moreno has more than 30 years of architectural experience, focused primarily on aviation work, including dozens of terminal, concourse and master planning projects at such airports as JFK, LaGuardia and Boston Logan…. The Airport Minority Advisory Council (AMAC) has awarded the Raleigh-Durham Airport Authority, operator of Raleigh-Durham International (RDU), its Airport Innovation Award. The airport received the award for its small and emerging business assistance program, which offers small businesses in the airport’s concession program additional access to financial resources. The award was presented to the airport authority at AMAC’s annual conference, which was held June 6-9 in Baltimore. The program is designed to help small businesses compete and succeed in an airport environment. It was launched last summer to coincide with the opening of Terminal 2, airport officials said. RDU has committed $1.5 million to underwrite the program. First Citizens Bank of Raleigh, N.C., services the loans. A

Construction is underway on Las Vegas McCarran’s new $1.5 billion Terminal 3, and completion is scheduled for 2012.

San Francisco International by 2010 will have a hydrogen fueling station, designed and installed by Linde North America. The station will be one of the stops along California’s growing Hydrogen Highway and will be open to drivers of fuel cell vehicles who live in or pass through northern California. Hydrogen from the station also will be used to fuel a fleet of the airport’s shuttle buses, as well as the demonstration of San Francisco Municipal Transportation Authority’s hybrid transit bus that uses hydrogen

rendering supplied by linde north america

San Francisco To Add Hydrogen Fueling Station

The planned San Francisco International hydrogen fueling station is set for completion in 2010

BUSINESS AND MANAGEMENT SERVICES – Revenue Bond Feasibility Studies – Debt Capacity Analyses – Strategic Financial Management Plans – Passenger/Customer Facility Charges – Airline Competition Plans – Rates and Charges Analyses – Benefit/Cost Analyses – Parking Rate and Revenue Studies – Airline Negotiations

A N AV I AT I O N C O N S U LTA N C Y

OPERATIONS AND SYSTEM PLANNING – Systems Simulation and Optimization – Airfield/Airspace – Passenger Conveyance – Security Screening – Baggage Systems – Terminal Curbs and Roadways

ENVIRONMENTAL PLANNING

From Great Companies Come Great Ideas. Ricondo & Associates, Inc., is an internationally-recognized aviation consultancy specializing in innovative planning services for airport owners and operators, government agencies, and airlines. Since we started generating ideas in 1989, our only business focus has been aviation and airport planning, and the clients benefitting from our creative way of thinking include many of the world’s largest and busiest airports.

P L E A S E V I S I T O U R W E B S I T E AT:

w w w.ricondo.com

– Environmental Strategy – Noise Studies – Air Quality Studies – NEPA Processing – Sustainability/LEED Advisory Services – Environmental Management Systems

PROGRAM MANAGEMENT – Strategic Airport Development Programs – Owners Representative Services – On-Site Implementation Support – AOA Construction Period Operational/Phasing Plans – Temporary Staffing

AIRPORT FACILITY PLANNING – Airfield/Airspace – Terminal Facilities – Landside/Support Facilities – Ground Transportation and Parking – Rental Car Facilities – Airport Master Plans – Strategic Development Plans – Capital Improvement Programming – Collateral Development

fuel cell battery and low sulfur biodiesel technology. The project is partially funded by a $1.7 million grant from the California Air Resources Board.

TSA To Phase Out ‘Puffer’ Machines TSA recently announced that it will phase out the use of explosives trace portals, commonly known as “puffer” machines. The machines, which release a puff of air to shake loose trace explosive particles on passengers, were first deployed to airports for use as a secondary screening measure at the checkpoint in a pilot capacity in June 2004. Over the years of operational testing, it became clear that the puffer machines required a significant

amount of maintenance since they would break down when exposed to the dirt and humidity common in an airport environment. The agency decided last year to begin phasing out the puffer machines, although TSA only recently made an official announcement. There are 33 puffer machines that remain in use at 15 airports currently, and TSA will continue to use them as part of a layered screening approach until the end of their lifecycle.

CDM To Design Airport Support Product The engineering and construction firm CDM has received a contract from the Airport Cooperative Research Program under the Transportation Research Board (TRB) to design a decision-support tool tailored to helping airports reduce greenhouse gas (GHG) emissions. This decision-process tool will enable airports to select the criteria

Florida’s Opa-locka Executive Airport is in the midst of a make-over to position under-utilized airport property into a mixed-use area.

photo supplied by miami-dade county

AirportMagazine.net | June/July 2009

that are most important to them — such as economics, environmental benefit, timing or resources, CDM said. The tool then will review relevant research and match the airport with the best options to facilitate GHG reductions. As the principal investigator on this project, CDM also is developing a companion guidebook to be used in conjunction with the interactive tool. Ten airports, selected by TRB and CDM, will test the tool and the guidebook for accuracy and effectiveness prior to the full launch and distribution.

Florida’s Opa-locka Marks A New Beginning Opa-locka Executive Airport, Miami-Dade County, Fla., recently celebrated the completion of the first two facilities on a 180-acre plot of land under development by investment firm AVE, LLC. AVE’s completed projects are a 478,000-square-foot mail sorting facility for the U.S. Postal Service and a 151,000-square-foot aircraft warehouse with space available for lease. Miami-Dade County Commissioner Barbara Jordan, who in 2005 helped create the Opa-locka Executive Airport Task Force that spearheaded the termination of previously nonperforming lease agreements at the airport, said the AVE facilities are just the beginning of a new era for Opa-locka Executive. “Miami-Dade County has entered into five lease agreements at Opalocka Executive since 2005 that will generate $355 million of investment in the next 15 years,” said Jordan. “These projects will turn under-utilized airport property into a bustling, mixed-use area that includes new industrial, retail, warehouse and aeronautical facilities,

upfront

bringing with them additional revenue and jobs to our community.” In February 2007, the county entered into a 55-year lease agreement with AVE for development of the 180-acre tract that required AVE to invest $187 million in development over the next 10 years. One-third of the development will consist of aeronautical-related facilities and the remainder will include industrial and retail space. In March 2007, the county agreed to a 55-year lease with AA Acquisitions LLC for the development of 181 acres of land and an investment of $162.9 million over the next 15 years. A 25-year lease with Biscayne Capital LLC for one acre of land and a minimum investment of $220,000 for a private hangar was signed in August 2007. Miami Executive Aviation, a tenant at Opa-locka Executive since 1996, entered into a 35-year lease in 2005 for its existing 16-acre site and an additional aircraft storage and maintenance hangar on four acres of land with an investment of $4.2 million. Construction was completed in 2008. J.P. Aviation Investments (JPAI) is constructing aviation facilities on 40 acres of land at the airport, including a five-bay, 31,500-square-foot corporate hangar under a sub-lease agreement with Turnberry Aviation. Two of the five-bay corporate hangars were completed in 2007 and construction of the remaining hangars is ongoing. JPAI also is constructing a new 656,269-squarefoot fixed-base operator facility for private jet operations. Most recently, the Carrie Meek Foundation agreed to develop 121 acres of land for a minimum investment of $110 million within nine years.

New Web Site Adds Revenue for Idaho Falls While revenue figures aren’t available yet, officials at Idaho Falls Regional Airport said their new Web site, which combines up-to-the-minute

flight and weather information with national advertising, is generating income for the airport. “We’re committed to delivering first-class service to the more than 500,000 people who travel through our airport every year,” said airport continued on page 46

It’s time to shake things up. HDS Retail North America is taking a whole new approach to the travel retail industry. Cutting-edge concepts, innovative solutions and trendsetting products are breathing new life into airports everywhere. And our customers are really getting into it. Visit www.hdsrna.com to find out more or, contact Stuart Holcombe, EVP Business Development at 646-894-0855 or at sholcombe@hdsrna.com.

AirportMagazine.net | June/July 2009

roundtable photos by jim martin

Steven Baker: “At the end of the day, it is, what does the passenger want.” Airport Magazine hosted an airport concessions trends roundtable May 11 at our Alexandria, Va., headquarters. Following is an edited version of the first half of that discussion, which touched on the economic factors facing the airport concessions industry today, and looked toward trends that could change the face of the industry in the future. Part two of the discussion will be published in the August/September 2009 issue. For the video version of the entire roundtable, go to www.antndigicast.com.

BANDUCCI: With the major change that we are seeing in passenger traffic today, how do airports and concession companies create a viable and top-notch concession plan that takes into account the current contraction of our business? As an example, at HMSHost we have looked back and seen that, since 2004, we have invested more than $650 million in airport concession projects, both food and beverage and retail. Yet, if you look at the traffic numbers for 2009, we are on pace to basically equal or even fall below 2004’s traffic numbers. So there’s been great expansion over the last five years in the concession business, and in some cases very warranted, but maybe in other cases, there could be over‑supply now. So it is a concern that we are wrestling with and discussing with our airport partners.

Airport

HOLCOMBE: Do you think it is an issue of ourselves getting a little greedy about what we want to deliver? You know, we are in a competitive environment, and I think that the real fundamental issue is that there are three elements that we as operators and airports alike have in common. It really boils down to image, return on investment and customer service. I think that when all three of those are in harmony, everything works, but any time that we get into a situation as we are in today and, as you just stated, when we get a little aggressive and we over‑build some of our programs, the slightest little hiccup is going to derail the entire program. I think our concern is taking a look at how do we find or form that harmony between those three elements.

Concessions Trends 14

AirportMagazine.net | June/July 2009

Roundtable

(left to right) Steven Baker, Metropolitan Washington Airports Authority; Stu Holcombe, HDS Retail; Patrick Banducci, HMS Host; and Andrew Weddig, Unison Consulting

Panel STEVEN BAKER Vice President, Business Administration Metropolitan Washington Airports Authority

PATRICK BANDUCCI Senior Vice President-Business Development HMSHost

STUART HOLCOMBE Executive Vice PresidentBusiness Development HDS Retail

ANDREW WEDDIG Senior Vice President Unison Consulting Moderated by

BARBARA COOK

Editor, Airport Magazine

BAKER:

I agree. I think the part that still remains in the equation, though, is dealing with the passenger. It remains a challenge to find out what the passenger wants. What we are seeing now is a contraction of passenger spending habits. It doesn’t mean they don’t want to buy. It means they don’t want to buy the same things or maybe as much as they once did. So I think the challenge for both airports and concessionaires is to be able to tap into that knowledge and find out what it is the passenger wants and be able to provide it and recognizing that it’s changing over time.

HOLCOMBE:

Well, given that, though, I think that everything is cyclical, and I do think that we’ve seen a lot of changes. In the last 10, 15 years, there’s been a lot of changes just in the retail offering, but at the same time, we as an industry are always looking for something new. The real question is when we come back and we look at that return on investment and we expend that capital, how long is that term going to be, and how viable is that concept going to be for, let’s say, a 10‑year

term or even a seven‑year term? We’re finding ourselves between a rock and a hard spot right now, I think.

BAKER:

At Washington National Airport, one of the things we are looking at is actually trying to create spaces that can be evolutionary and change over time. So you are building out the shell, and you are creating stores within stores, so that as customer preferences change over time, you can then begin to modify that, without having to reinvest. You don’t have to worry about recovering the full amortization of the space, but you can still change your concepts within the store.

AirportMagazine.net | June/July 2009

roundtable WEDDIG:

That’s an interesting observation, though, Steve, because what you are suggesting is that there is a need for shorter terms. That kind of conflicts with what Stu has mentioned and what Pat has mentioned in terms of investments. So that somewhere here, in order to meet the changing needs of the customers, we need to change the spaces more rapidly, turn them over more rapidly in terms of concepts, but how do you mesh that? How do you create that harmony, to use Stu’s word, with the investment required to create the other side of what we are looking for, which is a high level of finish, a high‑quality presentation to the customers?

BAKER: What we’re looking at at National is really more of within the store, being able to change displays, not necessarily rebuilding the entire store. So, we are still looking at the same terms on the leases, seven to 10 years, but, within that, you create opportunities for various manufacturers, providers, to display their merchandise and create that store‑within‑a‑store concept, because they don’t want to be there either once their product is no longer moving.

Andrew Weddig: “...the decline in specialty retail sales is very distinct...”

AIRPORT MAGAZINE: Steve, are you finding that MWAA is alone with the solution you are coming up with? BAKER:

I don’t think so. It is actually a solution that we have been in conversation with, with some of the retailers. So I don’t imagine they are only saying it to us, and I do appreciate Stu’s point in terms of what other airports might be saying in terms of looking for the store, but I come back to my original point. At the end of the day, it is, what does the passenger want, what is the passenger looking to consume, and maybe we begin to redefine how we present that. So maybe we begin to focus more on the fixtures and creating that store within a store and put less money into the outer imagery, into what I call the “ego” of the airport, and more money into the presentation of the merchandise for the passenger.

AIRPORT MAGAZINE:

Pat, what’s your company coming up with as an answer to the question that you raise?

BANDUCCI: HOLCOMBE:

But now you are talking about almost a department store type of setup where we’re actually creating, as you said, a store within a store. It really becomes hard when we’re looking for the branding image and the imagery that we really want to convey. You have a trade dress. When you sign on with a national brand and they want to really focus their merchandise in a store, they want to be given a predominance of that area, and they want to incorporate their trade dress into it. That is still an expense. There comes a great expense at doing something like that, and I think that the issue that we have to deal with as an industry is how do we equate that investment and identify what those thresholds are or the criteria to measure the performance. At what point do we end up saying, “Okay, fine. We have to take that concept out and switch it off.” I think that that’s a challenge that we are going to be wrestling with for quite some time. We are testing retail boutiques that will create several different items in there, but the airport really is looking for a branded store. They don’t want to get into the store within a store, the multiples in there. They want to have that dedicated brand store out there. That’s a challenge.

AirportMagazine.net | June/July 2009

Obviously, this downturn has not been good for anybody, but it has given us a chance to pause and see what really can work. So we are looking at different things. I think you have an ability on the retail merchandise side to be a little more flexible. It is not as expensive to invest, but on the food and beverage side, the restaurant side, it is more expensive, and it is difficult to change in midstream to another brand. As Stu said, you have brand requirements, and you are almost taking a store back to the drywall before you can put in a new brand. So that can get very expensive. So we are looking at some of the same things. I think shop‑in‑shop stores or boutiques work, as does going back to the past where you see newsstands combined with a good assortment of gift shops and specialty retail goods, which was something that was probably more prevalent in

Stu Holcombe: “We are testing retail boutiques...”

the ’90s. We went away from that for a while to really strict newsstands, and now I think there is the opportunity to do combination stores where, as a courtesy to passengers, they really have one‑stop shopping.

AIRPORT MAGAZINE:

Andy, what are you seeing in your rounds?

WEDDIG: With the current environment, the decline in specialty retail sales is very distinct and markedly much more excessive than the decline in passenger volume itself. That starts to indicate that there may be some kind of fundamental shift underway. It may be just an expression of the economy translating itself into the airport environment, and it also may start to question whether or not the model that we have today of brands, of a variety of brands, is maybe not what people are looking for, maybe in certain circumstances. So we see a shift in the shopping patterns. As we mentioned earlier, we talked about news and gifts seeming fairly strong. Some basic foods, some value foods, are still strong, showing some gains. The higher-end luxury items are dropping off, and then I think the question that comes out of that is — and I pose to the group here — whether that means that we got greedy, we overstepped what the customers are looking for in their travel experience. After all, they’re at the airport to travel, not to shop. So we need to offer them a value proposition to bring them into the shopping that’s different than the value proposition that they have on the street, at the malls, or at the specialty retailers on the street. AIRPORT MAGAZINE:

Are you finding that people don’t want to go into stores like Brooks Brothers? That, all of a sudden, they are not going there?

BANDUCCI:

HOLCOMBE:

No, I don’t think that’s necessarily the case. I think that they’re still going. Brooks Brothers is kind of an impulse nature. As a business traveler, for the most part, that’s the individual that says, “You know, I need a new tie, or that shirt has ratty cuffs. I need to have that, or I forgot to pack it,” one of those things. That typical shopper right now during this downturn is not going as frequently. They’re cutting back and saying, “Well, I’ll wear the tie one more time.” I still think that there’s a need for specialty shops, but I think that we have to become a little bit more precise and critical in what markets we put them in. I think there are certain markets that may be over‑saturated with certain types of specialty retail. I also think that airports in general need to balance the amount of specialty retail space in airports versus that of the core items that we are talking about, both in food and beverage and retail because, at any given time when the market does soften, those are usually the first entities that are going to feel the pain, and they do generate substantial revenue.

BAKER:

I don’t think so in the sense that I think there may be a misperception as to why airports, as well as retailers, engage in the business that we do, and that is, those revenues go to offset the cost of providing the service to the passenger. So, to the extent that we solve the problem, it really isn’t about trying to get more money out of the consumer’s pocket for self‑serving purposes. It really is about providing that airport experience at a higher quality at a lower cost, so that you can attract more traffic into that airport. So it is incumbent upon all of us, I think, to solve the problem because it isn’t just about airports wanting to make more money or retailers wanting to make more money. There is a fundamental underpinning that goes on in the aviation financial structure that depends upon those revenues, and to the extent that we can’t identify ways to achieve them in the airport, we begin looking beyond the airport for development of land and natural gas resources and other things that help to provide that experience for the passenger.

Two points I want to add to that: one, talking about the Brooks Brothers scenario. I think you are also seeing fewer of those business people traveling. So you have a smaller part of that market that’s actually out there consuming, but, second, I also wanted to come back to Andy’s point about did we get too greedy.

On the question of luxury brands, we are in an interesting position. We are getting ready to open several high‑end international luxury brands at the Atlanta airport this summer, and we are concerned. We think they may get off to a slow start because of where the economy is right now. And Steve is right. The business traveler has been a key market for both the specialty retail business and the food and beverage business. More of our higher-end restaurants and bars that have opened in the last few years really do cater to a lot of business travelers, and that market is slow right now. But we are a big enough company that we can last through this downturn and will be around for the long term, and we think these

continued on page 40

AirportMagazine.net | June/July 2009

By Mike Bernos

Springfield-Branson

Springfield-Branson’s new terminal has 10 gates and is designed to be expanded to 60 gates, which will serve the community well into the future.

Springfield-Branson’s

New Terminal: A Community Vision Realized

nce nothing but a couple of sleepy Ozark outposts, Branson and Springfield, Mo. — two cities 40 miles apart — have grown into a robust region of the country. Branson is now one of the nation’s preferred tourist destinations with more than 50 liveperformance theaters, several theme parks, museums and fine restaurants, while Springfield has become the hub of a diverse and vibrant business community. While that growth was welcomed, it also overwhelmed the original Springfield-Branson Airport. In 1999, the results of a study

commissioned by the Springfield-Branson National Airport Board revealed that the existing airport quickly was becoming obsolete. An insufficient number of gates existed to accommodate the growing number of aircraft parked overnight, resulting in delayed morning departures. In addition, growing passenger counts plus new screening technology and processes implemented since 9/11 overwhelmed existing passenger and baggage screening areas. Because of space limitations, officials at Springfield-Branson National decided to build a new terminal. But with that decision came the daunting task of securing buy-in from the countless and diverse stakeholders that had proliferated in this dynamic region of the country since the previous airport was built in 1964. Martin Wander, AIA, project designer for lead consulting firm RS&H, said that on the first day on the project he and his team contacted the Springfield-Branson National Airport Board for the names of stakeholders that had to be consulted to 18

AirportMagazine.net | June/July 2009

create a unified vision for the new midfield terminal. “We probably made over two dozen presentations to business leaders, academicians, entertainment establishments, historians and town leaders,” Wander said. After initial meetings with the airport board, Wander began working with Gary Cyr, A.A.E., director of aviation for the Springfield-Branson National Airport Board, who knew that the inclusive strategy was the only way a consensus on the airport design could be achieved. “When you interview people ahead of time and keep them in the process, instead of playing catch-up with them, you come

s h . photos supplied by rs&h

out ahead of the game,” explained Cyr, who ensured that every presentation was covered by the electronic and print media and who established a dedicated Web site with information updated weekly. “We wanted to get as many peoples’ input on what their vision was for the new gateway to Southwest Missouri and Springfield,” he said. “We were able to do that because of the coordinated

effort between RS&H and the aviation board to reach out to the community.” Wander said that a critical part of the design process was having his team learn everything it could about the community in advance, a practice he employs before any airport design begins. “We educate ourselves about the community, and in turn we show them what is possible,” he stated. “We let them see beyond what their normal experiences are.” As a result, when the groundbreaking took place in November 2006, everyone shared the same vision for the $116.9 million project, which in addition to the new terminal included roadside and airside improvements.

The new 275,000-square-foot terminal opened to positive reviews in May 2009. Cyr said that cars were lined up for more than a mile as area residents sought a glimpse of the new facility. The building reflects the natural beauty of Southwest Missouri and intertwines the region’s three natural themes: water, geological and landscape zone. The water zone is represented by the shimmering glass curtain wall that runs through the lobby. That feature, along with the lobby’s ceiling that is comprised of a series of irregular waves of stainless steel mesh, makes the visitor feel as though he or she is inside the river. Porcelain tiles wrap around both interior and exterior walls, representing the dramatic geological rock formations that cut through the region’s landscape. Perhaps the most striking feature of the design is the landscape zone’s abstract trees. The branches reach skyward to hold up flat steel canopies, whose scattered skylights let in sunlight to filter through the treetops. In addition to the indigenous thematic design, Wander said the airport has many attractive European features, such as glass bridges leading from gates to the planes, affording travelers an open view. Also, island baggage platforms are located in the baggage claim and ticketing areas. More importantly, Cyr said the new terminal has 10 gates and is designed to be expanded to 60 gates, which will serve the community well into the future. “This is a very pleasing and convenient facility that lends itself to ease of movement and way-finding,” he said. A Mike Bernos is public relations director for RS&H. He may be reached at Michael.Bernos@rsandh.com.

AirportMagazine.net | June/July 2009

executiveview

by John K. Duval, A.A.E.

n June 17, 2009, I was elected to the position of AAAE chair. I deeply appreciate the honor and privilege of serving as your chair during the coming year. This year brings unprecedented fiscal and legislative challenges to our industry, and while I cannot guarantee results, I can guarantee my full efforts to address the issues critical to airports’ interests. Last year’s fuel crisis was resolved quickly, but it foreshadowed the beginning of an economic recession of the magnitude not seen since the Great Depression. As airlines have reduced their available seats to reflect the decreasing demand, airports have been forced to find new ways to cut costs and increase revenues. Many airports that never before have faced layoffs have done so this year, and yet the demands on our employees have never been greater. Reduced airline schedules and staffing, combined with higher load factors, necessarily have resulted in more stress for passengers. While airline delays are less frequent, fewer choices are available for alternate flights. Safety, security and customer service are as important today as they have ever been, and we must achieve these requirements with a smaller workforce, pressured by a more stressed customer. I believe that there is a solution to this dichotomy, which will be aided by AAAE’s new partnership with Fordham University. That solution comes in the form of an employee support program developed by Fordham’s Human Resiliency Institute in the Fordham Graduate School of Education that provides both the tools and encouragement to increase productivity. When this occurs, customers, employees and airports all benefit. The partnership is geared to combining the academic, professional and organizational strengths of both AAAE and Fordham to provide the framework for this program. This partnership gives us the ability to use Fordham’s resources as a think tank to develop methods of measuring results both quantitatively and qualitatively. Other significant airport industry challenges this year revolve around our legislative and regulatory programs. For example, there are the burdensome and costly changes proposed by the National Fire Protection Association and the labor unions regarding airport rescue and firefighting standards. Independent research conducted under the guidance of the National Academy of Sciences, Airport Cooperative Research Program, on this issue is soon to be released. Early results support the claim that, had these

AirportMagazine.net | June/July 2009

proposed regulations been in place over the past 10 years, there would have been no reduction in the loss of lives or property. Additionally, the research quantifies the very significant costs to comply. It becomes clear from the research that costs will be significant for all airports but will have the greatest impact on small and medium-sized airports since the costs will have to be apportioned to fewer flights. I know AAAE’s Airport Legislative Alliance team is very focused on getting out the facts on this proposal, and I hope that you will continue to do your part in making our voices heard on Capitol Hill. Our previous successes in Congress are well known. AAAE’s legislative team is highly regarded and gets results! AAAE long has subsidized the association’s legislative and regulatory efforts from our other revenue streams. In the current economic situation, those other revenue streams cannot continue to sustain this subsidy. It is critical to our future effectiveness that airports “step up to the plate” and support these programs. Considering the current economic crisis, it is more important now than at any time in the recent past to continue our successful legislative efforts. As chair of AAAE, I am fortunate to follow in the footsteps of many great leaders whom you previously have elected. Elaine Roberts’ very successful efforts to improve our accreditation program, Krys Bart’s focus on our international programs, and Jim Elwood’s work to increase communications with the chapters are all recent initiatives that deserve our ongoing support. I promise to continue the fine work that they have started, and I welcome your thoughts on new initiatives and service improvements. This past year has been a difficult financial one for all of aviation, and AAAE is no exception. In spite of this, the AAAE staff continues to rise to the challenges and provide our members with an exceptionally high level of service. AAAE staff truly embodies the principles of resiliency and productivity that our Fordham partnership will be offering to all airport workers. Please take the time to let the staff know how much you appreciate their efforts. And finally, it is my goal to be accessible to all of you during this year. Do not hesitate to reach out to me at any time, as I would rather deal with many small issues or concerns than let any of them grow into larger issues. Previous chairs have told me that the most rewarding events of their year were visiting each of the chapters. I am looking forward with great anticipation to joining you at these events. Thank you for this wonderful opportunity. I know that together we will weather this economic “perfect storm,” so that we may again experience clear skies and tail winds. A

security

Beyond the Checkpoint

SA may do the screening, but it is costing airports money. If a screener can’t figure out what’s in the bag, the line slows and passengers are delayed. If an individual walks through the exit lane in the wrong direction, there is a potential breach of the sterile area and the possibility that the entire sterile area will have to be evacuated and passengers rescreened. Fortunately, new technologies make it easier to see what’s in a bag, thus reducing the occurrence of screening breaches. A screening breach can cost the airlines millions in flight delays. For airports, in the worst cases, passengers must leave the sterile areas and crowd into the terminal building to be rescreened, resulting in flight delays, passenger discontent and the diversion of airport and airline personnel from their primary duties. Additionally, as U.S. airports have learned from their overseas counterparts, thousands of people in a confined area make a

tempting target for a bomber or shooter. Many screening breaches occur at the exit lane, when someone inadvertently (or intentionally) goes the wrong way into the sterile area. In 2006, TSA mandated that protection of the exit lane is an airport responsibility, and while security personnel are stationed at the exit lane, distractions and inattention still happen. An exit lane breach has the

New Screening Technologies Reduce Delays By Jeff Price

AirportMagazine.net | June/July 2009

potential to ruin everyone’s day. Technology to the rescue? TSA just issued a solicitation for companies to develop Exit Lane Breach Controls (ELBC) at two airports, Dallas-Fort Worth International and Seattle-Tacoma International. The purpose of the program is to develop technologies that can detect, locate and prevent personnel and items from entering the sterile area via the exit lanes, and alert authorities to objects left behind in the exit lane. This is not an entirely new concept, as Cernium already markets its ExitSentry product, which uses video analytics to detect when an individual is attempting to enter the sterile area through the exit lane and to record the breach for instant playback. ExitSentry is in use at 40 airports in North America. According to the TSA solicitation, it is this type of functionality the agency is seeking and more. The electronic components of an ELBC system could include such items as servers, sensors, cameras, detectors, lighting, video monitors and other passive intruder management products. The physical components could include such fixtures as automated sliding or revolving doorways, barriers, railings, turnstiles, switches, gates, modular partitions and signage.

TSA’s New Test Facility Any new exit lane breach technologies must undergo testing at TSA’s new Transportation Security Integration Facility (TSIF). The TSIF is located in an old postal facility building at Reagan Washington National Airport and is designed to test all emerging technologies in a simulated airport environment. “It’s designed to simulate the bag screening process from the point the airline checks it in,” said Lauren Gaches, TSA public affairs manager. The massive facility features a fully operational inline baggage screening system, with the ability to test up to five different explosives detection systems (EDS) at one time. The facility also currently is testing a radio-frequency identification system for bag tracking. After a bag enters the system, a laser scanner reads the bar code and then sends it to one of the EDS machines. If the bag is cleared, it continues on the “green line.” If the EDS technology cannot resolve a potential threat, the bag is detoured to a slower “yellow line,” and the image is sent to a remote on-screen resolution room where a screener can analyze the image. If the image is still unresolved, the screener can transfer the bag to the red line where it goes to a resolution room for additional screening. Otherwise, the bag is cleared back to the green line. Andy Lee, TSIF manager of system planning and evaluation, noted that due to the government’s ability to test new technology before it is deployed, “there is now less risk in setting up a new system” at an airport. Presently, TSA has three computerized tomography (CT) machines undergoing testing, but the technology is currently confidential. On the second floor of the TSIF, TSA has a simulated passenger screening checkpoint where new technologies, such as those using CT/EDS machines,

TSA’s new Transportation Security Integration Facility is designed to test new technologies in a simulated airport environment. 22

AirportMagazine.net | June/July 2009

security

are being considered as possible future replacements or supplements for the standard X-ray machines. Body imagers using millimeter wave and backscatter X-ray technology also are being tested along with devices that transportation security officers seem very interested in — the CastScope, for example, which is used for passengers with prosthetics, casts or a brace, and a plastic wheelchair that will not set off the metal detectors. If the exit lane is breached, or airport operators must rescreen thousands of passengers, technology may help to ease the pain. At screening checkpoints, speed and accuracy are two critical factors. A new screening system from Reveal Imaging Technologies promises to help in both areas. The ArrayCT uses multi-axis image acquisition and array motion imaging to scan moving bags from multiple angles simultaneously. The resulting 3-D image enables the operator to identify threat objects by their shape, placement, and most importantly, relative motion. Reveal says this will help to distinguish among the contents of the average traveler’s suitcase or briefcase.

Screening Efficiencies Passenger screening efficiencies are another concern at the checkpoint. Rapiscan recently selected AutoLogic Systems Ltd. for modeling and simulation of new security systems. AutoMod simulation software models the design of the facility and allows airport operators to simulate the flow of people (staff and passengers), baggage (security and handling) and vehicles within an airport. This allows the airport to ensure that no bottlenecks exist and highlights areas for improvement or savings. Rapiscan is rolling out some new technologies with the 620DV dual-energy transmission X-ray technology. “The Rapiscan system’s improved detection results from sophisticated multiview X-ray imaging technology combined with proprietary threat analysis software,” explained Andrew Goldsmith, Rapiscan’s vice president of global marketing. While much of the emerging technology is focusing on checkpoint screening and exit lane security, QinetiQ is putting its screening focus on stopping an individual before he or she can advance that far, and toward eliminating the suicide bomber threat to the airport terminal. The portable SPO-7 Standoff Detection System made its debut in airports in Denver and Minneapolis-St. Paul during both of last year’s presidential political conventions. It relies on passive millimeter wave technology, but unlike the body imagers that use millimeter wave, the SPO-7 is a totally passive system. The sensor is a real-time, non-imaging, passive millimeter wave At screening checkpoints, speed and accuracy are two critical factors.

AirportMagazine.net | June/July 2009

security

system that detects concealed objects through clothing without raising privacy concerns. The system measures the level of natural radiation that each person emits. When levels are abnormal, it alerts the operator. The system has an approved DHS privacy impact statement. It does not emit anything and does not provide images. “The system is designed to look for large items, like large weapons, or more specifically to counter an improvised explosive device,” said Wally Miller, vice president of sales for QinetiQ in North America. “An operator [who is looking at a standard video monitor] steers the sensor with a joystick, mouse or arrow keys, and lays the crosshair on an individual. If there is an anomaly, the operator will see a vertical threat bar that says there is something there that requires more investigation.” The nature of that investigation is then up to the airport through follow-up by a behavior detection officer or law enforcement officer. The system is currently being tested at the TSIF and Boston Logan International. Airport operators also should keep an eye on the DHS research into the Future Attribute Screening Technology program that uses computer-based behavior detection to detect malicious intent or deception. DHS has several programs that are testing technology’s ability to detect hostile intent. A Jeff Price is the owner of Leading Edge Strategies, a professor at the Metropolitan State College of Denver and the lead author of Practical Aviation Security: Predicting and Preventing Future Threats. He may be reached at jcprice@leadingedgestrategies.com.

NATCA: More than just air traffic control. Distribution and oversight of airport improvement funds; coordination of airport design; annual airport safety inspections; Air Traffic Control Tower siting, construction and modernization; airport NAV/VIS aids; A/G Communication; aircraft certification and other aviation-related services.

NATCA: SUPPORTING OUR NATION’S AIRPORT INFRASTRUCTURE

NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION, AFL-CIO

WWW.NATCA.ORG

operations

By John Kinney, C.M.

Digital NOTAMs Provide Real-Time Information

or decades, pilots, FAA and airports have used the Notices to Airmen (NOTAM) system to receive and disseminate timely and accurate airfield condition information. In recent years, drastic changes have influenced the processing of NOTAMs. With FAA’s increased attention to cost overruns, plus the consolidation and contraction of Flight Service Stations (FSS), critical changes in the NOTAM process have had a significant impact on accurate and timely release of important information. The single action of creating new “key words” in the NOTAM process has increased the volume of NOTAMs submitted to the FSS and has led to large processing inefficiencies. With today’s technology, passengers often have access to more accurate real-time information regarding their trip than those planning for or actually flying the trip. Even FAA admitted the problem in recent guidance to air carriers (Safety Alerts for Operators [SAFOs]) and to airports (CertAlerts). Compounding this issue is the dichotomy between the governing documents of FSS and the requirements of Part 139. These are amplified further in the example NOTAMs sections of the NOTAM Advisory Circular and the snow and ice control plan where examples listed don’t agree with the formatting requirements of the FAA order. These differences increase the circumstances where additional coordination is required in finalizing the NOTAM and, in some cases, result in the information being drastically changed from the original description. As a result, the aviation community has raised many complaints and concerns. Complaints range from the volume of NOTAMs submitted to the accuracy of the NOTAM content. There also have been many issues with the Web-based NOTAM notification system (ENOTAM) and the management of multiple databases. Specific examples include NOTAMs being canceled without the responsible airport’s approval or concurrence; NOTAMs not being canceled upon request; and content of NOTAMs being changed to the point that the intent of the issuing airport is lost. In one case, a NOTAM was issued for the wrong airport. These errors have caused airports to spend more time and resources on validating NOTAM information. At Denver International (DIA), NOTAMs can be issued at a rate of 50 per hour and 500 or more per month during winter operations. It is during the peak times of NOTAM issuance that these burdens become especially highlighted and magnify the safety issues surrounding accurate and timely airfield condition reporting. AirportMagazine.net | June/July 2009

operations These issues have been highlighted in a variety of forums, including regional conferences, AAAE meetings, individual group meetings and aviation safety committees. Over the past year, DIA has been involved in two simultaneous efforts that FAA and industry have led in response to industry concerns. The first effort is the testing and implementation of the digital NOTAM system. The second effort, which DIA recently joined, is the Takeoff and Landing Performance Assessment/Aviation Rulemaking Committee (TALPA/ARC). The digital NOTAM effort will allow seamless, real-time transmission of data to all users. The airport will have direct entry access into the NOTAM system, where NOTAM information will no longer have to be “vetted” through the FSS. FAA’s Aeronautical Information Management (AIM) group, headed up by Barry Davis, Kathlyn Hoekstra, Gary Prock and Gary Bobik from the agency’s Air Traffic Organization, has worked diligently to develop a system that is scheduled to be tested at five airports across the country. Denver International will be the first location for these tests.

Testing Begins Denver’s involvement began nearly a year ago when the airport, FAA and FSS had a number of conference calls addressing local Denver NOTAM concerns. In December 2008, the airport’s management presented its concerns to FAA headquarters. As a result, the airport was selected to be the testing ground for the new software package. The first step to receiving the product was conducting a safety risk assessment of the plan. The safety committee, consisting of personnel from FAA headquarters, local air traffic control, the airport and other industry experts, worked on identifying the hazards and 26

AirportMagazine.net | June/July 2009

developing mitigations to ensure there is not a “single-point failure” in the process. Denver International currently is looking forward to the next step. The airport recently conducted the human-factors testing of the software. Next, Denver and FAA will begin testing the software in delivering runway NOTAMs. This digital format certainly will aid delivery of NOTAM information and reduce processing time. Full implementation

At a recent meeting held in Denver, the airports group was tasked with recommending interim steps that could address the timeliness of NOTAM releases. The first recommendation suggested that FAA create a central depository of field condition reports that airports publish in addition to NOTAMs (i.e., Passur, OPSnet, Eagle Eye or the airport’s Web site). The second recommendation was a request to FAA to allow some of these systems to be eligible for AIP funding.

The digital NOTAM effort will allow seamless, real-time transmission of data to all users.

is projected to be completed in approximately 18 months. The second effort is the work of the TALPA/ARC group, which was formed after the 2005 Midway Airport runway overrun and asked to look into ways of reducing taxiway and runway incursions. Many in the industry have seen the resulting SAFO, CertAlerts and the rapidly changing winter ops Advisory Circular. Most of these changes were recommendations from this group of industry experts.

In the age of iPhones, YouTube and Twitter, it is encouraging to see FAA take steps to ensure that important field condition reports can be shared as close to real time as possible. While there are no immediate solutions, and the governing document discrepancies still exist, the airport group’s collective voice along with other voices in the industry have been heard, and improvements are in progress. A John Kinney, C.M., is deputy manager of aviationoperations, overseeing safety and security at Denver International Airport. He may be reached at john.kinney@flydenver.com.

Diamond Wings Sponsors

Philadelphia International Airport

AECOM

RS&H

Hudson Group

AAAE would like to thank the following sponsors for their generous contributions to the 81st Annual AAAE Conference & Exposition.

Platinum Wings Sponsors Siemens Corporation, Inc. The Walsh Group Signature Flight Support Midwest Air Traffic Control Services, Inc. Robinson Aviation (RVA) Inc. Serco, Inc. Gold Wings Sponsors Reveal Imaging Technologies, Inc. Aspen/Pitkin County Airport Heery International HNTB Holdings, LTD. Michael Baker Jr. Inc. National Air Traffic Controllers Association Parsons Brinckerhoff Aviation Rapiscan Systems, Inc. URS Corporation Silver Wings Sponsors AvPORTS The LPA Group Incorporated Crawford Murphy & Tilly, Inc. Glidepath Gresham, Smith and Partners HMSHost Corporation Jacobs Consultancy Leo A Daly PBS&J Phoenix Sky Harbor International Airport Ricondo & Associates Inc SureScan US Airways

Bronze Wings Sponsors HDR, Inc. Mead & Hunt, Inc. Snap Surveys Unison Consulting Avis Budget Group, Inc. Barnard Dunkelberg & Company BridgeNet International The Burns Group GE Security-Homeland Protection Kimley-Horn and Associates, Inc. PBS&J Q & D Construction SuperShuttle International, Inc. TransCore Woodward & Associates Era Systems Corporation, an SRA International Subsidiary DM Airports, LTD Airport Angels Cage, Inc. The Paradies Shops, Inc. C&S Companies SSP America Jviation Inc. Aerofinity, Inc. Burns & McDonnell TransSolutions, LLC Vanderlande Industries, Inc. Clear Channel Interspace Airports Coffman Associates, Inc. Delta Airport Consultants, Inc. Engineered Arresting Systems Corporation (ESCO) Great Lakes Chapter, AAAE Hanson Professional Services Hoyle, Tanner & Associates, Inc. Landrum & Brown, Inc. L-3 Communications Linc Facility Services Northeast Chapter AAAE Northwest Chapter AAAE R. W. Armstrong & Associates, Inc. South Central Chapter AAAE Southeast Chapter AAAE Southwest Chapter AAAE Stantec

AirportMagazine.net | June/July 2009

2009 AAAE Annual

AAAEâ&#x20AC;&#x2122;s 81st Annual Conference and Exposition, held June 14-17 in Philadelphia and hosted by Philadelphia International Airport, combined high-profile speakers, interactive break-out sessions and a busy trade show. Photos from the conference include (below, center) then-AAAE Chair Jim Elwood, A.A.E., and Philadelphia International Acting Director Mark Gale, A.A.E., and (page 29, top right photo) DOT Deputy Secretary John Porcari.

AirportMagazine.net | June/July 2009

ual Conference

AirportMagazine.net | June/July 2009

Southwest Airlines Chairman, President and CEO Gary Kelly (below, right) told delegates that his company will continue its efforts to appeal to business travelers and is â&#x20AC;&#x153;just getting startedâ&#x20AC;? in providing choices to its customers. Delegates were able to discuss and debate specific issues at conference break-out sessions (top, center and right).

AirportMagazine.net | June/July 2009

finance

Economics Explains By James G. Walsh, A.A.E.

Recession A radio pundit recently described the current economic condition as somewhere between a depression and a recession or, in a word, a “decession.” This new descriptive term is certainly suitable for the aviation industry. In fact, FAA’s new forecast suggests that the aviation industry will not recover to 2008 demand levels for five years. For airport operators, this economic contraction is deep and has the potential to fundamentally transform an airport’s approach to financial management. With that said, this “decession” is an opportunity for airport operators to re-order their fiscal practices and priorities.

Starting at Zero Zero-based budgeting gets more attention as a concept rather than a method for setting annual budgets. However, in challenging economic times, the zero-based approach is, arguably, the most prudent. Simply put, zero-based budgeting requires a credible justification of all expenditures, not just those that exceed the prior year’s amount. A line-item expenditure is set to zero and the responsible manager should argue the need and the merit of the expense. There will be squirming, gnashing of teeth and predictions of doom by frontline managers. There also will be some of those managers who prepare well and effectively persuade. This budget-setting method gets the airport down to mission critical spending. We all want to believe that there is little slush or conspicuous consumption in our budgets. But this is when we get down into the weeds. Do operations personnel need new 32

AirportMagazine.net | June/July 2009

brand-name winter coats every year? Who really requires a Blackberry or a $2,000 walkie-talkie? How many duplicate subscriptions exist, and how much do memberships cost for peripheral associations each year? Zero-based budgeting reveals and re-orders spending as economists say…at the margin.

Cash, Coverage and Consumer Behavior Airports are labor intensive, technology intensive and capital intensive. Therefore, the need for cash and the promise to meet debt service coverage drives the commercial airport’s fiscal model. The reduction in passenger travel and subtle changes in consumer behavior are combining to shrink airline and non-airline revenues. Many economists also are observing a sharp increase in the savings rate among Americans who have historically leveraged consumption as dramatically evidenced by the subprime mortgage debacle. How might this affect airline and non-airline revenues?

Airline revenues will fluctuate with market demand and airline schedule capacity. Non-airline revenues are a bit more temperamental. It is advisable to keep a sharp eye on the per-enplanement metrics. Concession and parking revenue per enplanement are down at many airports, suggesting that thrift may well be dampening non-airline revenues. Ancillary airline charges, particularly baggage fees, cannot help passenger spending in the terminal, not to mention the mood of our shared customers. Airports also have long relied on parking revenues as a significant source of gross and net operating revenues. If parking revenues have fallen more than passenger volumes, alternative airport access modes like drop-offs, shared ride and public transit may well be the culprit. This is what economists define as the paradox of thrift: that is, more savings equate to less spending throughout the economy. While most rational people, households, companies and public entities agree that thrift is good, thrift is commercially detrimental, including for commercial airports. However,

the paradox of thrift can be trumped by lower prices for goods and services, including lower airfares. If consumers, in the airport case our passengers, take advantage of lower airfares, demand is stimulated and we are back in business — that is, in growth mode.

Inflation Concerns But the elephant in the room is not the prospect of lower prices. The risk of higher inflation remains a concern. With untold trillions committed to economic recovery by the federal government and the Federal Reserve, too many dollars chasing too few goods may well trigger higher inflation. Inflation is typically a lagging ASSA.Airport.Bleed:Layout 1 1/14/09 indicator. Few expect the price 3:11 of oil PM

to remain in the $50-$60 per barrel range, and as an economic recovery emerges, demand for oil and other commodities will rise as well. There is not much good that comes with higher inflation. Those airports with low fixed-rate debt in their portfolio will hold their cards while variable-rate debt holders should beware and consider alternatives. The current Alternative Minimum Tax exemption window should be a strategic consideration in this context.

Recovery We often mock ourselves for working in an industry that is so sensitive to events beyond our control and so vulnerable to economic downturns. Page 1 a financial perspective, Yet from

airport operators always have demonstrated a resilience to ride out recessions and remain financially sound. Although the dismal science of economics can help to explain events and frame our financial strategies, we have to remember that economists were created to make weather forecasters look good. For airport executives, our own experience and our own good judgment will see us through, so that we will prevail again. James G. Walsh, A.A.E., is the deputy executive director-finance and marketing at Baltimore/Washington International Thurgood Marshall Airport. He can be reached at jwalsh@bwiairport.com.

The time is right for you to make an intelligent choice with ASSA electromechanical access control systems. We make intelligent, flexible and high security lock systems possible. ASSA C4™ CLIQ™ is an intelligent lock system that combines the best of design and electronics in the smartest possible manner. Each key can easily be upgraded or tailormade to suit any situation or need. Since every key has its own identity, it becomes the “personal property” of the key holder. The mechanical design of the key allows you to create different security zones much in the same manner as a conventional mechanical lock system. Electronic programming of the keys gives you the option to authorize individuals or to a group of individuals and more. The basic idea of this technology is to create an intelligent security system. That means a lock system that retains a high level of security despite upgrading, alterations or expansion. Even after many years of use by a continual flow of new tenants, new employees or changes occurring in the workplace, the level of security will remain the same. ASSA, Inc. 110 Sargent Drive P.O. Box 9453 New Haven, CT 06534-0453

Websites: www.assalock.com www.assacliq.com

generalaviation

House Approves Legislation That Benefits GA

he House has approved bipartisan legislation that includes authorization for funding for general aviation airports. The bill, H.R.2200, would establish a $10 million grant program for GA airport projects that would “improve and enhance perimeter security, airfield security and terminal security.” The grant program would require a 90 percent federal share. The legislation mandates that a GA security working group be established to “advise TSA regarding transportation security issues for general aviation facilities and general aviation aircraft.” AAAE’s Airport Legislative Alliance is working closely with lawmakers and congressional staff as the bill moves through the legislative process, advocating for increased funding, maximum flexibility for airports in applying the grants, and a 95 percent federal share. AAAE’s GA Security Working Group also will monitor the progress of the measure.

The DHS Office of Inspector General (OIG) has published a report on general aviation security entitled TSA’s Role in General Aviation Security. According to the OIG’s findings: “Our objectives were to identify Transportation Security Administration security requirements for general aviation airports, threats to general aviation, measures taken to secure general aviation, steps nonfederal stakeholders have taken to enhance the security of general aviation, and any ‘incidents of concern’ with security at general aviation airports. In addition, we evaluated allegations of security vulnerabilities at three Houston-area general aviation airports. These allegations were presented in an investigative report by a local television station. “We determined that general aviation presents only limited and mostly hypothetical threats to security. We also determined that the steps general aviation airport owners and managers have taken to enhance security are positive and effective. Transportation Security Administration guidelines, communication forums, and alert mechanisms, coupled with voluntary measures taken by the owners and operators of aircraft and facilities, provide baseline security for aircraft based at general aviation sites. Significant regulation of the industry would require considerable federal funding. We are not making 34

AirportMagazine.net | June/July 2009

any recommendations to the Transportation Security Administration regarding general aviation regulations.” The report may be accessed at http://www.dhs. gov/xoig/assets/mgmtrpts/OIG_09-69_May09.pdf.

AAAE representatives attended TSA’s June 15 meeting to discuss the Large Aircraft Security Program Notice of Proposed Rulemaking (LASP) with industry stakeholders. This meeting was moderated by John Sammon, TSA’s assistant administrator, transportation sector network management, and included broader representation from industry associations, such as the U.S. Chamber of Commerce, Air Traffic Association and Flight Safety International. 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 Programs (ASPs), if they do not already have one in place, as well as identify law enforcement officer support and designate airport security coordinators. During the June 15 session, discussion centered on weight threshold, flight crew background checks, passenger watch list matching, audits, security coordinators and prohibited items, among

other issues. The meeting was the last in a series of three meetings with GA industry stakeholders. TSA now will consider all comments and alternative solutions as proposed by AAAE and others. AAAE’s GA Security Working Group, part of the GA Coalition, has recommended that instead of finalizing the LASP rule TSA reconvene the Aviation Security Advisory Committee of 2004 with the goal of updating the voluntary security guidelines for GA airports. “I have to commend TSA Assistant Administrator John Sammon for personally moderating the meetings we have had with GA industry stakeholders, and I am encouraged by the pragmatic direction these discussions appear to be heading,” Robert Olislagers, A.A.E., chair of AAAE’s GA Security Working Group, commented. “Whether or not that will be reflected in a revised NPRM remains to be seen, but I am hopeful that affected GA airports will be able to update the Security Guidelines for GA Airports (TSA IP A-001) in lieu of the proposed rules in NPRM TSA 08-0021.”

The House General Aviation Caucus, formed in April by Reps. Allen Boyd (D-Fla.) and Vernon Ehlers

(R-Mich.) now includes 50 members. The caucus is made up of House members with a significant GA presence in their districts and those who want to learn more about GA issues. In a letter inviting their colleagues to join the caucus, the two lawmakers noted that the organization “is to inform members and staff about the importance of GA to our economy and to our transportation.” They also pointed out that the GA industry “is one of the few remaining U.S. industries that actually maintains a positive foreign trade balance.” AAAE will monitor the activities of the caucus and provide input and assistance when appropriate. AAAE’s 2009 GA Issues Conference, hosted by Addison Airport April 26-28, 2009, in Addison, Texas, provided the membership with an opportunity to share best practices and discuss key concerns such as the TSA-proposed LASP and ongoing challenges with filing/canceling NOTAMS. The conference also included panels on security, economics and runway safety. Information on the 2010 GA Issues Conference will be released soon. A

AirportMagazine.net | June/July 2009

marketscan

Top 15 International Destinations from U.S. Airports (All Airlines) Scheduled Seats July 08 vs. July 09

Airport

Jul-08

Jul-09

% Change

LHR YYZ NRT FRA CDG YVR AMS CUN MEX ICN YUL NAS YYC GRU MBJ

775,229 529,742 418,146 389,044 390,345 305,200 282,303 275,851 293,722 166,935 195,102 147,675 134,288 119,485 129,259

729,181 479,332 432,602 372,241 352,596 249,257 245,780 245,207 228,534 180,868 169,264 137,146 135,233 128,468 122,185

-5.9% -9.5% 3.5% -4.3% -9.7% -18.3% -12.9% -11.1% -22.2% 8.3% -13.2% -7.1% 0.7% 7.5% -5.5%

Scheduled Seats for International Destinations (by region) From U.S. Airports

Region

Jul-08

Jul-09

Europe Canada Australia Far East Caribbean Central America South America Middle East Africa

3,412,801 1,441,062 1,355,459 1,124,486 1,011,364 801,058 602,195 191,791 93,725

3,165,863 1,312,595 1,135,303 1,072,506 1,011,921 719,202 621,254 250,923 82,969

AirportMagazine.net | June/July 2009

Top 15 U.S. Airports - Domestic July 08 vs July 09 Scheduled Departures Scheduled Departures Ranking Airport Jul-08

Jul-09

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

40,586 31,410 25,766 25,091 19,294 19,117 18,745 17,766 17,661 17,449 16,244 14,842 13,785 13,777 13,587

ATL ORD DEN DFW CLT IAH LAX MSP DTW PHL PHX LGA SFO LAS BOS

38,129 34,995 26,227 26,062 20,104 21,116 21,526 17,153 18,299 17,931 17,695 15,937 14,066 16,211 14,100

Top 15 U.S. Airports - Domestic Scheduled Seats July 08 vs July 09

Airport

Jul-08

Jul-09

% Change

ATL ORD DFW DEN LAX PHX LAS MSP CLT IAH SEA SFO DTW PHL MCO

4,260,130 3,352,402 2,854,988 2,784,667 2,558,731 2,217,411 2,273,838 1,829,371 1,833,852 1,858,473 1,868,946 1,705,797 1,780,994 1,678,240 1,680,348

4,190,643 3,037,194 2,810,178 2,724,240 2,380,349 2,060,958 1,946,038 1,888,304 1,771,068 1,710,631 1,699,940 1,666,766 1,643,937 1,595,672 1,530,008

-1.6% -9.4% -1.6% -2.2% -7.0% -7.1% -14.4% 3.2% -3.4% -8.0% -9.0% -2.3% -7.7% -4.9% -8.9%

Source: OAG Schedules June 10, 2009 ÂŠ 2009, UBM Aviation Worldwide Ltd.

AirportMagazine.net | June/July 2009

assengers by airport

Traffic for April 2009

Airport

2009

2008

Albuquerque Sunport

465,361

553,451

-15.9

Akron-Canton

119,242

110,420

+8.0

Boston Logan Int’l

2,192,109

2,366,748

Bradley (Conn.) Int’l

493,645

579,669

-14.8

Charlotte Douglas Int’l

2,993,659

2,911,850

+2.8

Chicago O’Hare Int’l

5,422,331

5,991,746

-9.5

Hartsfield-Jackson Atlanta

7,278,445

7,356,040

-1.1

Kansas City Int’l

771,799

875,230

Los Angeles Int’l

4,641,468

4,949,835

Manchester-Boston Reg.

294,927

339,017

-13.0

Milwaukee Mitchell

609,560

677,901

-10.1

Minneapolis-St. Paul Int’l

2,675,459

2,832,255

-5.5

Omaha Eppley Field

354,282

359,738

-1.5

Phoenix Sky Harbor

3,290,532

3,513,114

Reno-Tahoe Int’l

304,829

354,768

-14.0

Richmond (Va.) Int’l

278,883

286,213

-2.6

Salt Lake City Int’l

1,636,776

1,712,864

-4.4

Seattle-Tacoma Int’l

2,445,476

2,547,148

South Bend (Ind.) Reg.

57,049

64,568

-11.6

Will Rogers (Okla.)

266,649

304,752

-12.5

Domestic and International Fares Airlines Reporting Corporation

% Change

-7.4

-11.8 -6.2

-6.3

-3.9

08 International Fares 09 International Fares

left

The Los Angeles Board of Airport Commissioners has awarded two contracts for construction and construction support services for the Los Angeles International Crossfield Taxiway Project. R&L Brosamer of Walnut Creek, Calif., was awarded an $81.9 million construction contract for Taxiway C13, a new parallel service road and a replacement apron for aircraft overnight parking. Paragon Project Resources of Irving, Texas, won a $5.9 million contract for construction support services, including realignment of World Way West, utility and drainage improvements and demolition of ancillary facilities. Paragon also will provide construction support services on a new aircraft rescue and firefighting station. Separately, the board awarded contracts for major infrastructure upgrades at Los Angeles airports. KONE Inc. of Lisle, Ill., won a $23 million contract for elevator, escalator and moving walkway upgrades at Los Angeles International. HNTB was awarded a $9.1 million contract for pavement design and management at Los Angeles International, Ontario and Van Nuys airports. Corradini Corp. of Fountain Valley, Calif., was issued a $1.5 million contract for the installation of flooring at Los Angeles International.

Grey- 09 Domestic Black- 09 International

uildout

Philadelphia International has selected the Washington, D.C., office of Leo A Daly to provide planning and design services for the airport. The $17 million project entails upgrading the airport’s checked baggage inspection system (CBIS) in terminals B and C. This will include baggage sorting and screening, as well as facility master planning, engineering analysis, design and construction support services. The outbound baggage systems in terminals B and C will be modified, replaced or updated to accommodate the new CBIS requirements. The upgrades will eliminate current delivery of unscreened outbound baggage to manually fed explosives detection system equipment.

08 Domestic Fares 09 Domestic Fares

Dollars in Billions

airportbillboard

Jan.

Feb.

Mar.

Apr.

May

June July

AirportMagazine.net | June/July 2009

Aug

Sept

Oct.

Nov.

Dec.

roundtable continued from page 17

luxury brands will bounce back. I guess the bigger question is: to have a more viable and competitive concessions industry, which I think is in everyone’s best interest, are the little guys going to make it through this? Can some of the smaller competitors, some of our DBE partners or other subtenants, make it under today’s model, and that’s a difficult question to answer right now.

AIRPORT MAGAZINE:

How long do you see today’s depressed model continuing? You are opening new stores in Atlanta this summer. When do you think the uptick will happen for those stores?

BANDUCCI:

Hard to say, and they’re in very good locations at a very busy airport. So that will help, but we’re probably looking toward next summer and that assumes the economy turns around and people fly more again.

Airport Magazine:

Steve, what are you offering to do for concessionaires who are concerned at your airports right now, or aren’t you getting that kind of feedback yet? Are your airports still slightly insulated?

BAKER: Well, I think being in Washington, D.C., we are more insulated than most markets because of the nature of our passengers and the nature of business into the nation’s capital, but it doesn’t mean that we are permanently insulated. We have seen declining passenger traffic at both airports, more so at Washington Dulles International than at National, and we have already begun to look at and talk with the concession operators there about what we might do to try to interject a level of analysis in the lease that allows for some level of self‑correction based on passenger traffic. I am a firm believer that the best concession leases have a passenger component tied to the minimum annual guarantee (MAG). It’s kind 40

AirportMagazine.net | June/July 2009

Patrick Banducci: “...are the little guys going to make it through this?” of difficult to hold someone to conducting a level of business if the passengers aren’t there. By the same token, going back to the airport model, airports finance based on those MAGs. So it’s important that there be some level of predictability about what those MAGs are going to be in order for airports to be able to finance and do the construction that needs to be done. Going back to your earlier question about forecasts and projections, I think we are looking at maybe a four‑ to five‑year time period before we are actually back at the levels we had originally forecasted for 2009. This is not a one‑year, two‑year problem, and that is why I think we need to make some systemic changes in our leases at National and Dulles to recognize that and to begin to re‑forecast what those guarantees might be going forward to allow them to work their way through the financial model.

AIRPORT MAGAZINE: Where should the investment be made at this point? HOLCOMBE:

I think that we have to put it in the store because, as I said, part of the three criteria that we work toward is image. We are also a society that is very visually oriented. We buy with our eyes, and as everybody said, you come to the airport basically to fly from Point A to Point B. The reality is that we are there, as Steve says, to help offset some of the costs and reduce the overall cost per passenger. So it becomes more

attractive to that airport. But I think that what we are looking for here is the investment into a store, but it has to be reasonable. It has to be structured in such a way that you are going to get the most mileage for your investment. It also has to be flexible. I think that we have to have the capability to go in there and modify the offering not only from a fixture standpoint and from a product mix standpoint, but I think that where HDS is heading is that we’re working closer with our clients and trying to identify what it is that consumers are looking for, but also to create store‑within‑a‑store‑type scenarios that give us the flexibility. As I said before, we are working on a retail boutique that is actually going to be testing various concepts within a generic type of department store and give us the opportunity to look at which one really has legs and mileage. I think that we need to work with that with the clients. That will give us better performance. That is an interesting point you brought up, Steve, about tying the MAG to traffic and to the enplanement base... . I would rather tie it to the revenues, the performance. Let’s establish the base of the MAG. I think that is a real critical issue.

BAKER:

To the extent that more passengers are coming through, there is a higher opportunity for capture. There are constraints that you get into in terms of store capacity, registers, staffing, but all of the things being equal, if you are able to provide enough concession space — and that

is a challenge for us at both of our airports — in different locations, there is no reason why there shouldn’t be a higher expectation of revenue based on a higher level of passenger volumes.

AIRPORT MAGAZINE: After 2001 and the real downturn in aviation that took place, the phrase we heard constantly was “rent relief.” Are you hearing that yet? HOLCOMBE:

When you get into the contraction of the business environment, you have to look at all possibilities. We look at it from hours of operations, store by store. There’s not one solution that’s going to cover everything. It’s not across the board. We’re not calling everybody up and saying, “You know what, I really need rent relief.” We use that as the last resort for the simple fact that we always try to look at something we can do internally to maximize performance and reduce exposure and liability.

we are seeing really only a small number of requests for general, wide‑ranging rent relief...that goes along more with what Pat and Stu are saying of look for other ways to save costs. You’ve got your revenue, and then you’ve got your operating costs and some fixed costs. How do you work on fixing or modifying the cost structure on a short‑term basis, so that it does not affect the primary goal, which is serving the customers? So, although something on the surface like reducing hours of operation may look like it affects customer service, if there aren’t any passengers there, then we can start to save costs that way. Rent relief by itself is a very tricky thing because of issues that Steve points out. In the structural model, the financial model of the airport, it depends, especially in the short term, on the MAGs and how that works. So we tend to look more at delaying construction to where it’s needed or to a better timeframe, and looking for other costs that may not affect the program that can be legitimately deferred. This can be contributions to refurbishment funds or contributions to the marketing funds, things that can add up to a point or two of cost but have no immediate effect if they are deferred.

AIRPORT MAGAZINE:

Are you seeing these problems across the country, or are you seeing them regionally?

BANDUCCI:

I would agree with Stu to the extent I think there are certain concourses in certain airports where there has been a dramatic change in traffic. Either an airline has relocated or shrunk its operation so much that there is just not enough traffic to support the business there, and so we’re trying to look at it on a case‑by‑case basis, either in terms of a temporary adjustment in the MAG rent or, if there is concession development scheduled for a depressed area, saying do we really need to do this right now? If we build this, you have to staff it, you have to keep it open. If it is a food and beverage unit, you have to fire up the ovens and other equipment. It’s going to be very costly, and it may not be worth it. So let’s wait and see, and we found that most airports have been very understanding and reasonable in the last six months. WEDDIG: Well, looking at numerous airports on a consulting basis, and representing the airports,

BANDUCCI: We’re seeing them across the board. We’re in 86 airports in North America, and certainly, some areas have been hit worse than others. Some small airports have lost a third of their traffic, which is obviously a huge impact. Some larger airports are down 10 percent to 15 percent. Others are down 3 percent or 4 percent, but — if they are a large airport — there are a lot of passengers in that 3 to 4 percent. So there isn’t any one regional area, I think, that we have seen that has hung in there. Just maybe a few airports here and there have not fared as poorly as others. A See the August/September 2009 issue of Airport Magazine for the conclusion of this roundtable.

AirportMagazine.net | June/July 2009

Donn R. Nottage

planesight

AirportMagazine.net | June/July 2009

Training SeSSionS anD CoUnTing Reduces Training Costs • Available 24/7 • Tracks Training Records AIP/PFC Eligible • Delivers Consistent Message Since the introduction of AAAE’s Interactive Employee Training (IET) system in 2000, airports have applauded its cost effectiveness and overall benefit to their internal training programs. More than 1.2 million training courses have been completed at 82 airports. Every airport has seen dramatic reductions in training costs, and these costs continue to drop with each training session. The training message is consistent, the turnkey system is very user friendly, and the record-keeping is accurate and automatic.

Join the IET team today, and realize the benefits of this patented training tool by contacting: Will James – (703) 824-0500, Ext. 149 Jim Johnson – (813) 792-1711 www.aaae.org

Airportech

LCPA Finds A Better Way To Track CIP Data By Sean Broderick

racking capital improvement program (CIP) data is a necessary evil for all airports. The Lee County Port Authority (LCPA), which operates Southwest Florida International Airport and Page Field in Fort Myers, Fla., tried for years to lessen the evil involved, even briefly dipping into the software development business, before settling on the decidedly imperfect but workable solution of using Microsoft’s Excel product. Last year, however, LCPA agreed to give a new off-the-shelf product made by The Solution Design Group (SDG) a shot. So far, six months after deploying SDG’s CapitalVision product, LCPA is getting a lot more efficiency — and managing a lot less evil — in its capital program tracking efforts.“We’ve been looking for years at a software package that captures all of the information on projects — expenses, funding sources, etc. — and there was really nothing out there,” LCPA Department DirectorFinance Brian McGonagle told Airport Magazine. “We even tried building one. There was nothing out there off the shelf until CapitalVision came along.” While Excel is powerful, it has some fundamental drawbacks when used as a capital projects manager, McGonagle noted. It has no ad hoc reporting capabilities and no alerting capabilities, such as to signal when the deadline for using funds from a specific grant was approaching. Data must be kept on separate worksheets within a single file, and in separate files. Some of LCPA’s data was too cumbersome to get into Excel, so it stayed on paper, stored in files or binders on office shelves. CapitalVision allows LCPA to

AirportMagazine.net | June/July 2009

have one place where all the data for a project lives, and gives its users the ability to produce both quick overviews and detailed reports of how and when money is being spent. Perhaps most importantly, it was built by people who understand airports. SDG’s core development team is largely the same one that worked for Decision Support Technologies and built the popular PROPWorks. Decision Support Technologies and its PROPWorks product were later purchased by AirIT, and separately, SDG was formed. SDG started as a consulting firm. Soon, explained President Tom Strange, the company began to hear a familiar song among its clientele. Namely, airports needed a better way to track project information and produce reports required by both management and the federal government. Asheville (N.C.) Regional Airport signed on as a betatest customer, providing feedback and running the software for about six months before SDG went to market. In mid-2008, LCPA stepped up and became CapitalVision’s launch customer. The combination of an experienced development staff and a dedicated airport beta-tester helped SDG meet its targets quickly, Strange noted. “The biggest thing CapitalVision

does is to consolidate all of the CIP information into one place so you can report on it and better manage your CIP,” he explained. “Our real goal, and where we differ from most other project management or construction management software packages, is the way we tie together the funding sources and tie back to the projects and contracts what that money is being used for.” CapitalVision’s coming of age may be perfectly timed, as airports begin to spend their American Recovery and Reinvestment Act (ARRA) stimulus grants. Strange said CapitalVision comes ready to track ARRA grants “out of the box” — no small detail considering what DOT requires for ARRA-funded projects. One requirement calls for the airport to report, on a per-project basis, “the actual aggregate expenditures by the sponsor for projects eligible for funding under the program during the period beginning on February 17, 2009 through September 30, 2010, as compared to the level of such expenditures that were planned to occur during such period as of February 17, 2009.” (Strange said he believes that the cost of the CapitalVision service itself is eligible for ARRA grant funding as an “administrative” expense, so long as it’s used to track ARRAfunded projects.)

Advertiser’sIndex

Advertiser

Website

AAAE

www.aaae.org

ANTN Digicast

www.antndigicast.com

ASSA High Security Locks

www.assalock.com

Burns & McDonnell

www.burnsmcd.aero

Delta Airport Consultants

www.deltaairport.com

DME Corp.

www.geoeye.com/amdb

GeoEye.

www.dmecorp.com

HDS Retail North America

www.hddsrna.com

NATCA

www.natca.org

Ricondo & Associates

www.ricondo.com

RS&H

www.rsandh.com

Siemens

www.siemens.com/answers

CapitalVision is a Web-based product and can be hosted locally or by SDG. Thus far, Strange said, customers have opted to have SDG do the hosting. The pricing model is on a per-user basis; customers can buy as few as one user or more than 100, he said. Users are granted access based on need; some can input data and run reports, while others are in what amounts to read-only mode. From LCPA’s perspective, one of the most useful parts of the software is the “dashboard” feature, which is especially useful for upper management. This tool, along with CapitalVision’s robust (and customizable) reporting capabilities, means questions that once took hours to answer can be tackled in minutes — and may not need to be

asked at all. “Before if Brian had a question on how we funded a project, we did an Excel worksheet and e-mailed it to him,” said LCPA Finance Manager Diane Dow. “Now, answers are right at management’s fingertips. It’s an excellent management tool.” Getting LCPA started on CapitalVision required some up-front time investment, Dow explained. LCPA staff and SDG facilitators worked collaboratively over several days to load the software with data from specific projects, including costs, contract details, funding source information, deadlines and more. When incompatibilities arose — such as the need to display data in a different way — SDG made changes to ensure that LCPA’s version of the software meshed with its project-

Page 3 Inside Back Cover 33 Inside Front Cover 26 9 Back Cover

tracking and reporting requirements. “That was the biggest hurdle, making CapitalVision do what we need,” Dow noted. “They made changes to accommodate our projects.” Once a few projects were loaded, the SDG team helped train more LCPA staff and continued to load data. LCPA also continues to provide feedback on how to make the software even more useful. At the top of LCPA’s wish list is a wish-list function. LCPA would like to use CapitalVision to track five years’ worth of desired CIP projects that haven’t been launched. SDG listened to LCPA’s requirements and is working on an upgrade that would supply the wish-list snapshot. A Sean Broderick is AAAE’s staff vice president-external communications. He may be reached at sean.broderick@aaae.org.

AirportMagazine.net | June/July 2009

upfront

continued from page 13

Director Len Nelson, A.A.E. The new Web site “makes it possible to do that without incurring additional costs — and in fact, presents an opportunity for us to make money in the long run — that’s a cost-benefit ratio we can live with.” Idaho Falls installed FlightView’s ad-supported Web content, and the site went live in May. The site: • Allows travelers to see flight information in several different views, without navigating away from the airport Web site, including a function that lets visitors search arrival and departure times by flight number or city and see where flights are enroute, on an easy-to-read map; a list of current arrival and departure information and status updates; and Idaho Falls’ air traffic map that shows all in-air flights with terrain characteristics and weather overlay. • Offers easy-to-read, easy-to-use icons and labels. • Presents national, name-brand advertisers with relevant offers to the traveling public. Current advertisers include JetBlue, Virgin Atlantic, Budget Rent A Car and Norwegian Cruise Lines. Advertisers rotate on the site frequently, providing updated and fresh material.

PANY&NJ Details New Bird Strike Mitigation Efforts The Port Authority of New York and New Jersey recently highlighted a number of new initiatives to strengthen its

Jacobs, L&B

Establish Max Wolfe Scholarship Fund

acobs Consultancy and Landrum & Brown have established a scholarship fund in memory of Max Wolfe, a 30-year veteran of the airport consulting industry who died unexpectedly in April 2008. The Max Wolfe Memorial Scholarship will be administered and awarded through AAAE. The annual scholarship is open to college seniors and graduate students interested in careers in airport planning and pursuing a primary degree in an airport-related discipline. Considered a visionary leader in the industry, Mr. Wolfe began his career with positions 46

AirportMagazine.net | June/July 2009

bird mitigation program at the area’s airports, including the installation of a state-of-the-art bird radar pilot program at Kennedy International. In addition to the federally approved, multi-tiered approach the agency currently takes to wildlife mitigation, including habitat modification, egg addling, nest removal, diversion, trapping and shooting when necessary, the port authority said it is: • Creating a memorandum of understanding with New York City that will lead to the roundup and removal of thousands of Canada geese from city-owned properties in the vicinity of LaGuardia and Kennedy International. The port authority will pay half of the cost of this effort, which will be carried out by the U.S. Department of Agriculture; • Hiring a second airport wildlife biologist — two of only seven in the nation — to enhance a wildlife hazard mitigation program at Newark Liberty, LaGuardia and Kennedy International; • Hiring an independent evaluator to review the agency’s FAA-certified Wildlife Hazard Mitigation Plans for the three major airports; and • Training airport supervisors as certified shotgun instructors to increase the capacity to shoot birds when necessary. A

at HNTB and Coffman & Associates. From 1989 to 2004, he served as a senior member of Landrum & Brown and ultimately as its chief operating officer. Between 2004 and his passing, Mr. Wolfe held various leadership positions at Jacobs Consultancy, including leading the firm’s facilities and environmental practice. Jacobs Consultancy and Landrum & Brown announced that this year’s winner, the first recipient of the Max Wolfe Memorial Scholarship, is Courtney Moreland, a senior at San Jose State University who is studying airport operations and minoring in business management. Moreland is president of the AAAE student chapter at San Jose State and has been a member of the chapter for the past three years. The firms noted that they were impressed by Moreland’s working three jobs while maintaining a 3.0 GPA. Among these jobs, she serves as a surface weather observer at San Jose International Airport and as a noise abatement intern at Hayward Executive Airport.

AirportMagazine.net | June/July 2009