Airport Experience News - September/October 2020 by Airport Experience News

SEPTEMBER/OCTOBER 2020 / V18 N228-229

INFRASTRUCTURE

FUNDING CHALLENGES CONTINUE

ACDBEs STRUGGLE FOR FOOTING AS PANDEMIC RAGES

TERMINAL DESIGN UPENDED DUE TO SOCIAL DISTANCING

Touchless Tech For Conscientious Travelers

Congrats on the new SLC! Photo credit: Salt Lake City International Airport, Sue Zaybal

Paradies Lagardère is proud to support SLC’s fantastic new terminal with an array of impressive locally themed and iconic retail brands. We also appreciate SLC’s creative partnership, which ensured this vision became an awe-inspiring reality in spite of the challenges posed by a global pandemic.

FIRST CLASS BRANDS FOR A WORLD CLASS AIRPORT

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12 Funding Conundrums

Passenger numbers are down but airport infrastructure investment needs aren’t going away. Experts say a new combination of funding mechanisms may be necessary to get the job done.

16 Small Biz Struggles

ACDBE-certified companies are pushing forward with resolve in these extraordinary times, laying the groundwork for recovery as travel comes back.

20 Terminal Vision

Designers weigh in on the airport of the future and what effects a newly healthconscious traveling public may have on terminal layout.

28 Touchless Transitions

Social distancing and concerns for health have airports rolling out digital solutions to keep travelers feeling safer while flying

3 Letter from the Editor-In-Chief 4 Data Check

33 One-On-One

Bottle Rocket consulting is looking toward the future and, as director of business strategy Peter Klayman says, outlooks may be bleak if concessionaires don’t adapt.

A recent survey from experience management company Qualtrics offers insight into what passengers are looking for before returning to air travel.

34 Advertising Index

5 Latest Buzz

35 Before You Take Off

A depression in air travel demand doesn’t mean development can pause as well. George Bush Intercontinental Airport’s new international terminal is still on track for a 2024 opening.

Southern California’s Ontario International Airport will get its star moment when a popular travel TV show featuring the airport airs this month.

9 One-On-One

Baltimore/Washington International Thurgood Marshall Airport’s Ricky Smith discusses weathering the pandemic storm and his new role as chair of the Airport Minority Advisory Council.

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Airport Experience® News Is a Division of CLARION Events 6421 Congress Ave., Suite 107 Boca Raton, FL 33487 Phone 561.257.1026 Fax 561.228.0882 To subscribe visit https://airportxnews.com/subscribe/ ISSN: 1948-4445 Copyright © 2020 Airport Experience® News, all rights reserved. Any reproduction of this magazine is strictly forbidden without prior permission from Airport Experience® News.

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09 10/2020

Dear Readers, SEPTEMBER/OCTOBER 2020 / V18 N228-229

INFRASTRUCTURE

FUNDING CHALLENGES CONTINUE

ACDBEs STRUGGLE FOR FOOTING AS PANDEMIC RAGES

TERMINAL DESIGN UPENDED DUE TO SOCIAL DISTANCING

Touchless Tech For Conscientious Travelers

I booked a flight last week for what will be my first airport and airline experience since March. I’m part of the VFR travel crowd – the new acronym for visiting friends and relatives. It’s what is driving much of the air travel we’re seeing these days as business travel budgets remain tight and pure leisure travel is stymied by restrictions in certain markets, caution among passengers and a general reluctance to indulge during such a precarious time. Recovery is slow going, as virtually all in our industry will attest. And the crystal ball that would allow us to see how and when travelers will come back in force is only slightly less cloudy than it was a few months ago. But airports and concessionaires are nothing if not resilient. This industry has recovered from the 9/11 attacks, weathered numerous airline bankruptcies, survived the Great Recession – each time building back stronger and better. We will do so again. This digital issue of AXN highlights some of that resiliency with an article spotlighting the strategies for business revival taken by some the foremost ACDBE operators in the industry. This issue also examines how airports and the businesses that support them are pivoting to provide a safe environment and ensure as much frictionless travel as possible for passengers. Finally, the issue looks at the funding landscape because, even with the sharp downturn in passenger traffic, airports are keen to ensure their infrastructure will be able to handle the demands of the future. This digital issue is supplemented by our robust news offering that now includes webinars, video interviews, podcasts and more. For breaking news and additional multimedia content, check out our website at www. airportxnews.com. The AXN team will continue to partner with airports and concessionaires as together we navigate back to growth. Best regards, Best regards,

Carol Ward Editor-in-Chief Airport Experience News

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DATA CHECK

LURING THEM BACK What Needs To Happen To Ease Traveler Concerns? BY CAROL WARD How Likely Are You to Travel By Air in the Next 6 Months? 20%

16%

27%

21%

Extremely Unlikely

Somewhat Unlikely

Neither

Somewhat

Extremely

Source: Qualtrics

he return to air travel by North Covid-19 Exposure Concern

48%

on whether they would travel by air in the ErkenBrack outlined three “promising Americans has been lackluster next six months, while 16 percent were actions” that airlines can take to win back About half of respondents are generally very concerned about Covid-19 exposure, while 46% are concerned about exposure onboard an airplane. thus far.Not Regional travel restrictions, somewhat unlikely to travel, and 20 percent passengers: enabling “cautious transitions” at all concerned Not very concerned Neutral Somewhat concerned Very concerned were extremely unlikely to board a plane. health concerns, economic challenges and including entering and leaving the aircraft other factors continue to tamp14% down demand, 28% Elizabeth ErkenBrack,48%Qualtrics’ head of in small groups; having high expectations for General Concern 3% 7% leaving the industry in a sort of limbo. customer experience solution strategy, says both passengers and crew, including masks, 14% to get 24% 46% role in ensuring Airplane - Onboardit 6% So, what’s going10%to take airlines can play a proactive pre-screenings, and avoiding interactions passengersAirport in the 5% air again? passengers feel comfortable as why ease during the flight; and offering special booking 9% 15% 28% 43% Experience management company back into traveling by air. and in-flight experiences, including keeping middle seats open and eliminating penalties Qualtrics, with co-headquarters in18%Provo, The good news is that 41% people’s general 8% 9% 24% Train Station or fees for cancelations and ticket changes. Utah and Seattle, Washington, teamed concern about COVID-19 is stronger than 7% 13% 17% 31% 32% Local with anRestaurant unnamed “major U.S. airline” their concern about catching it while Of course, neither airport executives nor toLocal examine the customer experience traveling, ErkenBrack said in a blog post. concessions companies can directly influence Grocery Store 8% 15% 22% 30% How Are Youisto that Travelmore By Air people in25%the Next expectations of nearly 1,600 air travelers The Likely challenge are6 Months? how airlines manage their businesses, but Source: Qualtrics concerned about catching COVID on who had taken at least one flight in the they can27% observe actions and infer passenger 16% 20% 16% 21% year prior to the onset of the COVIDan airplane than any other location they reactions. To the extent airlines can lure back Somewhat Extremely Neither Somewhat Extremely 19 pandemic. The study was conducted testedUnlikely through its survey, including in an passengers, airports and concessionaires will Unlikely between July 31 and August 6. airport, at a train station, or in a restaurant be poised to accommodate an easy transition 48% Source: Qualtrics or grocery store. Not surprisingly, concerns about at the airport. exposure to the virus are driving the travel decisions of most respondents, with Covid-19 Exposure Concern 70 percent extremely or very concerned About half of respondents are generally very concerned about Covid-19 exposure, while 46% are concerned about exposure onboard an airplane. about the pandemic and 76 percent very or Not at all concerned Not very concerned Neutral Somewhat concerned Very concerned somewhat concerned about exposure, the study found. General Concern 3% 7% 14% 28% 48% That concern is manifesting in travel plans. Nearly half of survey participants (48 10% 14% 24% 46% Airplane - Onboard 6% percent) say that they are somewhat or very 9% 15% 28% 43% Airport 5% likely to travel by air in the next six months. That group is itching to travel, despite the 8% 9% 18% 24% 41% Train Station fact that 71 percent are very or somewhat 7% 13% 17% 31% 32% concerned about Covid-19 exposure in the Local Restaurant airport and the same number are concerned Local Grocery Store 8% 15% 22% 30% 25% about exposure onboard. An additional 20 Source: Qualtrics percent of survey respondents were middling

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LATEST BUZZ

ON THE GLOBAL STAGE

IAH’s New International Terminal Project Pushes On Toward 2024 Completion Target BY DAVID WARD

Above: The new Mickey Leland International Terminal at IAH will include plenty of glass to bring in natural light and greenery to evoke the Houston area’s Bayou location.

efore the pandemic, demand for international flights at George Bush Intercontinental Airport (IAH) was surging, taxing the capacity of the aging Terminal D. Last fall, IAH broke on construction to replace and demolish Terminal D with a new, stateof-the-art facility to be known as Mickey Leland International Terminal (MLIT). Today, demand has softened due to the immense impact of COVID-19 on international traffic. But, with a target completion date of 2024, airport officials are hopeful that after four more years of

construction, passenger demand will have returned to previous levels. “We’re forecasting that we will regain that 2019 level of traffic sometime in 2024,” says Robert Barker, chief development officer for the Houston Airport System (HAS), operators of IAH, as well as Houston Hobby Airport (HOU) and Ellington Field (EFD). “We will need those additional gates as soon as the terminal opens.” United Airlines will remain a key hub carrier at the new MLIT, but Barker noted the new terminal will be a major selling

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LATEST BUZZ

point for recruiting additional airlines and routes, including long-haul, low-cost international carriers.

A Once-Pressing Need The downturn in international air travel that began in March 2020 and continues today has removed some of the urgency of the project. Terminal D at IAH was feeling the squeeze until then. “All of our gates were in use,” Barker says. “Not only were the gates leased, but the number of turns were just about maxed out.” Terminal D was also showing its age in other ways, including having only 12 gates, of which half could accommodate the widebodied aircraft increasingly being used for long-haul flights. “The terminal dates back to the early 1990s. and the experience of air travel had changed significantly since it was originally designed, most notably the security and baggage handling, which was old technology,” Barker says. Steven Andersen, executive project manager for IAH Terminal Redevelopment

Program, says construction of the MLIT, including the demolition of the old Terminal D, remains on track despite the pandemic. But he added that one of the challenges project managers face is trying to anticipate how passenger needs, including a desire for social distancing, may be permanently changed as a result of COVID-19. “We’re making sure the design remains flexible from a technology standpoint to accommodate more a touchless experience for travelers when possible and to keep people as separated as possible,” Andersen says.

The New Digs When completed in 2024, the new 701,000-square-foot MLIT will boost the number of international gates from 12 to 15, all of which will accommodate widebody aircraft. That includes four gates that can handle Group VI aircraft such as the Airbus A380. MLIT will also feature spacious ticket counters, an expanded security checkpoint, and modernized lounges, concessions,

clubrooms and bathrooms. Houston Airport System said the colors and materials used will also reflect the natural environment found in and around the Houston area. “One of the goals is to create an easy, intuitive and functional customer experience that incorporates the latest not only in technology but also in design,” says Andersen. “This new design centralizes the processing functions so that they are similar to the other IAH terminals, with a central arrivals processing hall for arriving and international passengers.” The curbside will feature a large canopy as well as illuminated wayfinding displays that act as beacons to guide travelers through security and to their gates. The project also includes roadway improvements to ease the traffic around the terminal for both arriving and departing passengers. “From a passenger perspective, it will be a simpler journey,” Andersen says. “It’s also going to be better for passengers with connections that support alliance carriers, whether its Star or Oneworld, enabling those airlines to work more efficiently.”

AXiNsights, a webinar series by Airport Experience® News, engages industry experts in short, dynamic talks on compelling and relevant topics. CLICK HERE

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TO WATCH A SESSION ON ADAPTING AIRPORT LOUNGES TO MEET TRAVELER NEEDS POST-PANDEMIC.

LATEST BUZZ

The MLIT is expected to cost slightly less than $500 million, with an additional $450 million planned for the federal inspection building and a new international processing hall set for completion in 2023. Renovations and other construction tied to the project will push the total cost to $1.3 billion. Houston Airport System is funding the project with pay-as-you-go Passenger Facility Charges, General Airport Revenue Bonds (GARBs), proceeds in its Airport Improvement Fund and Airport Improvement Program grants. Andersen says the new MLIT will incorporate the latest technology and a design that evokes the culture and scenic beauty of southeastern Texas. “We’re looking to create a sense of place, so it will feature not only the use of a lot of natural light but also the shading effect that you get around Houston with the use of canopies and effects,” he says. “The design will also reflect a strong bayou influence, with lots of greenery, especially in the arrivals and departures levels. It will also feature art, both hanging and otherwise, specifically made for the terminal from local artists.”

The Concessions Plan HAS is currently in the process of developing the concessions program for MLIT, with the goal of showcasing the diversity in food culture found in Houston. “We’re still evaluating the timeline for advertising those concessions opportunities,” Barker says, adding IAH does not have a master concessionaire in place. “We have business arrangements with our primary hub airline, United, and how they handle their concessions programs at the Houston airports is different from the city’s programs. We’re in the process of developing those programs but the terminal’s opening dates are still far out.” Andersen says the new processing center and international terminal will include about 25,000 square feet in new concession space. “We’re also planning and building a new pier and as part of the development we have plans to expand Terminal B in the future,” he said. “With that would come the relocation and the centralization of concessions at a later date.”

Above: The new international terminal will feature a canopy above the curbside entrance and illuminated displays to smoothly guide passengers through security and to their gates.

One of the other key features of MLIT will be a design that takes ADA accessibility very seriously. “One reason for that is that many people from around the world travel to the Houston Medical Center or another of the city’s renown medical clinics for treatment,” Barker says.

Wooing International Carriers IAH had a vibrant international traffic base before the pandemic hit and expects to see that traffic return in the coming years. But efforts are also underway to expand with recruitment efforts for additional airlines and routes. Susan Davenport, senior vice president and chief economic development officer for the Greater Houston Partnership, says her organization been working

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LATEST BUZZ

Above: The new Mickey Leland International Terminal is set to open in 2024 and will have spacious ticket counters, an expanded security checkpoint, and modernized lounges, concessions, clubrooms and bathrooms.

with IAH and the city of Houston to provide data, identify potential new international markets and coordinate outreach efforts. Best known for energy and aerospace, Davenport says the Houston area boasts a population that could soon exceed

eight million people in the coming years, with 25 percent of the population having international roots. “You’re seeing a lot of growth in ‘Energy 2.0,’ including climate tech, green tech and other new energy technology,” she says, adding the area is also strong in the life sciences, manufacturing and digital technology. Houston welcomed more than 22 million business and leisure visitors in 2018 and Davenport expressed confidence those numbers should return within the next few years. She added the new MLIT and international processing facility will provide a great first impression as the city looks to attract not just more Latin American business but also increased business and leisure traffic from Asia, Europe and other parts of the world. “It will be phenomenal to have those facilities and attributes,” she says. “All of those things to move people more efficiently and easily is going to be a huge step in helping us do what we’re doing to drive growth.”

AXiNsider is an interview-style podcast featuring in-depth discussions with professionals, leaders and wave-makers in the airport and concessions industries. CLICK HERE

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TO LISTEN TO AN INTERVIEW WITH CHRISTINA CASSOTIS, CEO OF ALLEGHENY COUNTY AIRPORT AUTHORITY.

ONE-ON-ONE

PREPARING FOR TOMORROW Optimistic Smith Is Shepherding AMAC And BWI Toward Stronger Post-COVID Futures BY ANDREW TELLIJOHN

s the COVID-19 global pandemic continues to decimate worldwide travel, few have been hit harder in the airport community than small businesses that support concessions programs and infrastructure projects across the industry. Ricky Smith, executive director and CEO at Baltimore/Washington International Thurgood Marshall Airport (BWI) currently sees this daily, both at the airport and also as chair of the Airport Minority Advisory Council (AMAC). Smith joined AXN’s Senior Reporter Andrew Tellijohn to discuss how both the airport and the organization are navigating the current environment, and what they are doing to prepare for an eventual turnaround.

Ricky Smith, executive director and CEO at BWI, also is chairing AMAC as both organizations evolve and prepare to emerge stronger when the COVID-19 pandemic subsides.

Click to view the AXInterview with Ricky Smith

TELLIJOHN: How is BWI faring through COVID-19? SMITH: Initially, we were down about 97 percent. That was difficult to deal with and true for a lot of the industry, including our business partners, our concessionaires, our contracting partners, our employees. Then we began to see a recovery as some of the cities began to get this virus under control. Now, that recovery has stalled we’re about 66 percent down, which is a significant improvement over 97 percent down, but still nowhere near where we were last year. But if you put that in context, before the pandemic, we were ranked the 22nd busiest airport in the country. Today we are the 11th. The Washington Business Journal posted an article last week about the Washington area airports – BWI Marshall, Ronald Reagan Washington National (DCA) and Dulles International Airport (IAD) – indicating that BWI was higher than the other two airports combined. That is a testament to how well we’re doing compared to other airports. And a lot of

that has to do with the fact that, although we have a sizable business travel segment, we also have a large leisure travel population, and that’s because of the presence of Southwest Airlines and Spirit and other ultra-low fare carriers in our airport. I think there’s a general consensus in the industry that the leisure travel market kind of powered the return we experienced up until the 4th of July, and that, ultimately, that segment will lead the recovery. The business segment will lag significantly behind and the international traffic will continue to stall as long as there are restrictions. We’d much rather be where we were prior to COVID-19, where we were setting travel records. But we’ll get there. We just have to make sure we get through this period. TELLIJOHN: How has COVID affected ongoing larger capital projects? SMITH: Our number one and number two air carriers, Southwest and Spirit, have very aggressive growth plans for this airport, and they’re maintaining those growth plans

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ONE-ON-ONE

Below, Left: Several projects inside the terminal and on airfields have continued through the COVID travel shut down so they can be completed with fewer disruptions for travelers.

Below, Right:: BWI remains under construction on a five-gate expansion to the airport necessary to support the growth plans of its largest carrier, Southwest Airlines.

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post COVID. We have to be prepared for that, so we’re continuing infrastructure projects that make sense. For example, since operations are down, we continue to do important work on the airfield. We have a number of our taxiways where we need to get work out of the way so that it doesn’t interfere with normal operations. We are about to open a new extension to one of our concourses that will add five additional gates to the airport. Again, that is supporting Southwest Airlines’ growth plans. That’s also going to introduce some more concessionaires. That’s just a sign that we continue to prepare ourselves for life after COVID-19. We’re on the tail end of an environmental assessment that will allow us to complete an aircraft maintenance facility for Southwest Airlines and some other smaller projects. That being said, our finances are down, stressed like everyone else. There have been some projects that may not be as time sensitive right now, and we paused on those projects. But for the most part, those projects that have some immediate need, we continue to move forward.

TELLIJOHN: You’re also chairing AMAC. Some AMAC/ARRA calls have painted a dire picture of what the federal ACDBE program could look like post-COVID. What’s your sense of the seriousness of the threat? SMITH: I want to separate the two issues. There’s the state of the ACDBE program, and then there’s the state of ACDBEs. We spent a lot of effort over the last few months trying to make sure that Cares Act 4.0, if you will, includes support for airport concessionaires, particularly ACDBEs at airports. We’ve had some very healthy conversations on Capitol Hill and we’re pretty optimistic that if Congress comes around to passing a significant Cares Act 4.0, that the airport community, ACDBEs, will be covered. We’re looking at both from a broader industry standpoint, about a $10 billion fund for airports that will allow them to apply funds for any legal airport purpose, which allows airports like BWI – which was very aggressive in terms of offering relief to our concessionaires – to do just that, to offer relief from MAGs, relief from just the rent in general, for our entire concessions community.

ONE-ON-ONE

“There’s an energy now at AMAC that is helping our community get through the downs of this pandemic, but also positioning AMAC to be much stronger, and our ACDBE and our DBE community to be much stronger, on the other side of this pandemic.” – Ricky Smith, executive director and CEO at BWI and chair of AMAC. Then there’s another part that AMAC has been working with others on, and as a family of other partners that are working on a particular fund, about $3.5 billion, that will go directly to airports to be reimbursed for the relief they provide to food and retail operators, rental car operators, parking operators…. And that’s significant because that will enable a lot of airports to forego its rent to those operators without losing revenue. I think we’ve gotten more attention on the Hill around this than in the past. I think there’s a significant appreciation for the fact that ACDBEs are severely impacted. I think AMAC has made that issue very clear. TELLIJOHN: What else is going on with AMAC? SMITH: There are other needs that our membership has. And so, we have a very aggressive agenda around professional development. You’ll be surprised at the emotional impact that this pandemic is having on our members. So, we’ve created virtual forums, where they can come together, talk about what’s going on. And that goes a long way in helping them understand and realize that what they’re going through is no different than what others are going through. And so hopefully that gives them some solace. And then they can kind of talk through some of the common best practices out there to getting through this stuff. We’re working to develop some other capitalization programs and services that

we can provide to our membership, as well. Obviously, we want to work to get through this pandemic, but AMAC is taking the long-game approach. We want to be a better organization for our members beyond COVID-19. TELLIJOHN: What would the impact be if the DBE/ACDBE programs were significantly slimmed down? SMITH: Post-pandemic, if we don’t have programs like the airport concessions disadvantaged business enter prise program, then ACDBEs will continue to hurt. It’s no secret that many ACDBEs, despite the fact that they are enormously qualified to provide the products and services that they offer, would not have access to those opportunities but for some federal or state intervention. We’re working very hard to make sure that the ACDBE program is not compromised. Our community also includes the disadvantaged business enterprise program, which also is being reconsidered at the Capitol. So, we’re working very hard to make sure that we can help Congress understand the importance. I’m optimistic. If you look at what’s going on in the general society, I think that there’s a broadening understanding and appreciation for the plight of mi nor ities, pa r ticula rly A f r ic a n Americans. So, there’s an appetite in the general community, and that affects the appetite on Congress to shore up programs like the DBE program and the ACDBE program.

TELLIJOHN: How else is AMAC evolving? SMITH: AMAC is going through a transition.

We have a new board of directors. We’ve refreshed all of our committees. Our committees are embarking on very aggressive agendas, all aimed at improving our service to our members and prospective members. So, there’s an energy now at AMAC that is helping our community get through the downs of this pandemic, but also positioning AMAC to be much stronger, and our ACDBE and our DBE community to be much stronger, on the other side of this pandemic. Another initiative I’m excited about is we formed a group called the Airport Leadership Collective. This is a group of about 30 minority airport CEOs, past and present. That group is coming together to help AMAC think through a lot of the issues because there’s enormous experience with that group. Also, AMAC is a national organization. We have to do more to establish a local presence. So, you’re going to see movement there as we reposition the organization to have a stronger local presence. That’s generating a lot of excitement in our organization. TELLIJOHN: Can you provide an update on the search for AMAC’s next CEO? SMITH: We’ve been conducting a search for a new CEO for several months. We are close in that we have someone in mind. I’m first trying to get the board and the committees in the right place, then we’ll begin to finalize our negotiations with the new CEO. We should be ready to announce something under three months.

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FRACTURED FUNDING PFC Revenues Are Down, P3s Can Be Problematic, But Airports Still Need Investment BY CAROL WARD At this time last year, Airports Council International – North America (ACINA) estimated that airports within the United States would need $128 billion in infrastructure investment in the five years through 2023. Airports, many with a few years of record-breaking passenger numbers under their belts, were scrambling to expand their facilities to make way for further increases in demand. Public Private Partnerships, or P3s, were gaining traction – at least for specific terminals or landside projects – as airports looked to accelerate expansion programs. At the same time the airport industry was fiercely – yet thus far unsuccessfully – lobbying for an increase to the cap on the Passenger Facility Charge in an effort to raise money needed for improvements and expansions. Then, as we’re all reminded every day, the COVID-19 pandemic changed everything. Passenger numbers plummeted, with many airports seeing declines of 90 percent or more in the March-to-May time period. Recovery began in June in a series of fits and starts, but at press time most airports were dealing with traffic levels at about 25-40 percent of the previous year. That reality means that airports must regroup and reassess. At press time ACI-NA had not come out with a revised infrastructure needs assessment. Predictions varied widely about when, how and to what extent traffic would return. The general consensus seems to be that passenger volumes at U.S. airports will likely recover to near-2019 levels within the next three to

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five years, with a leisure travel bounce-back pacing ahead of business travel. Even if that’s the case, airports cannot be sure what infrastructure they might need going forward. Will the trend toward a touchless journey continue? Will social distancing remain a requirement, or will an eventual COVID-19 vaccine mean people will resume former congregating habits? Those factors and others will inform the infrastructure needs of the future. One thing several experts believe is that airport infrastructure investment needs to continue. “We foresee a three- or four-year recovery period, and if you’re going to have infrastructure ready when airports get back to 100 percent, some of those projects have to continue right now,” says Stephen Van Beek, director and head of North American Aviation at Steer.

MIGUEL SOUTHWELL, president and CEO, Brakkam Aviation Management, says industry infrastructure needs were dire ahead of the pandemic, and now the slower traffic offers a slight reprieve. That said, he urges airports to push forward to meet expected future demand.

The current situation gives airports breathing room, but many airports will need to push forward on infrastructure investments to meet expected long-term demand, says STEPHEN VAN BEEK, director and head of North American Aviation at Steer.

Miguel Southwell, president and CEO, Brakkam Aviation Management, says the industry was so far behind in investment pre-pandemic that the current environment provides a means for catching up, at least partially. “T he f u ndi ng i s goi ng to be needed, especially when you take into consideration that the industry is probably 10 years behind in terms the development of the facilities that are needed,” Southwell says. “If you then forecast that we will get back to pre-COVID levels in the next three years, then quite frankly I suspect we’re still going to be having a funding crisis even as we return to those levels.” If you take away the “if,” then the question becomes “how.” How will airports fund the next wave of infrastructure investment? Will the Airport Improvement Program fund be adequately funded by Congress in the future? Will the cap on PFCs be increased? Will P3s gain traction? Will full-on privatization catch on? In the eye of the pandemic, some airports have chosen to delay projects, others are forging ahead. Many are struggling to identify the best way forward. “The question that airports are grappling with is, we now have a period of time where there is less traffic in the airport, and in fact it’s a great time to escalate or embark on projects,” Southwell says. “However, at the same time revenues are down 60 to 80 percent and airports likely have existing bond debt that they have to service which, quite frankly, they can’t service unless they dip into their reserves. So, on the one hand, it’s an opportunity to escalate capital projects and get them done more cheaply, but on the other hand, [airports] don’t have the confidence because they don’t have the cashflow.”

International Airport’s (AUS) South Terminal, and Los Angeles International Airport’s (LAX) Automated People Mover P3 project, among others. The United States Department of Transportation (USDOT) defines P3s as “contractual agreements formed between a public agency and a private sector entity that allow for greater private sector participation in the delivery and financing of transportation projects.” There are varying models under that definition, but the bottom line, experts say, is that the risk shifts away from the airport and onto the shoulders of the private investors. Airports get relief from managing complex infrastructure but lose a certain amount of control over their facilities over multiple decades, and they gain a reliable revenue stream but are ceding some revenue to the for-profit private partners. Opinions are mixed on whether P3s will be more prevalent in the immediate recovery environment. “I think what was accurate [about privatization opportunities] became inaccurate because of the pandemic,” says Peter Kirsch, an attorney who specializes in development of transportation infrastructure with the firm of Kaplan Kirsch Rockwell. He’s not confident in a rush toward the P3 option.

The current traffic downturn might allow airports the time to plan for expansion, mitigating the need for P3 solutions, says PETER KIRSCH, an attorney with the firm of Kaplan Kirsch Rockwell.

Below: Passenger traffic may be down by more than 50% but airport infrastructure is still in dire need of upgrades (early work on the new Terminals 2 and 3 at Los Angeles International Airport pictured).

The P3 Option Prior to the pandemic, a handful of airports had embarked on P3s to fund a portion of their infrastructure needs. Some prime examples include the recently launched Terminal One project at John F. Kennedy International Airport (JFK), LaGuardia Airport’s (LGA) Central Terminal project, the new terminal underway at Kansas City International Airport (MCI), Austin-Bergstrom

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Above: Construction began about 18 months ago on the new terminal at Kansas City International Airport. Edgemoor Infrastructure & Real Estate is constructing the new terminal under a P3 agreement.

ROBERT POOLE, director of transportation policy at the Reason Foundation, believes Congress will continue to fund the AIP program, but the longsought PFC cap increase is by no means a sure thing.

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“If you would ask me the last week of February, I would tell you that we are desperately far behind on capital investment,” Kirsch continued. “We need it, we need it, we need it - to the tune of $100- $150 billion. If you ask me today, the answer is we still need it, but the timetable is fundamentally different. And the reason that P3s are attractive is because of the timetable problems.” In other words, P3s are most attractive when airports need immediate investment and are unable to tap into tradition funding sources such as AIP funding or PFCs. With the pandemic and resulting downturn in passenger numbers, the immediacy of need has waned a bit. “I do believe traffic will come back,” Kirsch says. “I think travel will come back vigorously, but it’s two, three, five years down the road, and that’s enough time that airports can plan a capital project in a way that may make private sector investment less important.” Van Beek has a different view, noting that “what this period is going to entail over the next three or four years is additional risk. And it may be that the private sector will be willing to take on that risk more than the public sector,” he says. Risk is the key factor, agrees Robert Poole, director of transportation policy at the Reason Foundation. “The question facing airports and airport P3 investors in the next few years is who’s willing to take on the revenue risks,” he says. “I think the airports, given that a lot of their revenue for [infrastructure investment] comes from PFCs are probably going to be very cautious. And, the people who buy airport

revenue bonds backed by PFC revenues tend to be very conservative. “P3s, on the other hand, are more willing to take risks,” Poole continues. “The only question is how big a risk are they willing to take? That is a question that we don’t know the answer to at this point in time. A few airports have medium-sized projects that they would like to continue with, but they’re worried that they probably can’t finance PFC-back bonds for [those projects] at this juncture, they might find investors willing to take a longer view and take a gamble.” And on the investor side, the consensus is that there is still an appetite for investment in U.S airports. Noting the current passenger traffic malaise, Elizabeth Dubeck, partner with the law firm O’Melveny, says lower traffic volumes in the next three to five years aren’t off-putting to investors unless signs start to indicate a longer or less certain recovery. “Over the long term that these projects necessarily look to, there’s no reason to think that they would not continue to be the appealing prospects that they have been in the past. None of these deals are looking for positive profits and returns in the two- to five-year timeframe.” Poole agrees. “There’s still an appetite to take on revenue-based deals,” he says noting that private investors typically demand leases spanning 30 or so years. “The next two or three years are not absolutely critical in terms of the cash flow needed to do the project, so that, I think, offers some potential for getting some things done that the airport may feel are too risky,” he says.

While P3s remain attractive to some airports, experts see little appetite for more robust privatization under the Federal Aviation Administration’s Airport Investment Partnership Program. St. Louis Lambert International Airport (STL) was, until recently, the only commercial airport actively involved in exploring options under the program. But St. Louis Mayor Lyda Krewson pulled the plug on the exploration late last year, and formally withdrew the city’s application with the Federal Aviation Administration early this year. There was some subsequent effort to bring the issue before voters but, while initially successful in gaining the support necessary for a ballot measure, proponents withdrew their petition on September 2. St. Louis Rising, led by the St. Louis

Above: Salt Lake City International Airport completed its $4 billion expansion in September, opening to passenger levels much lower than anticipated pre-COVID-19.

City NAACP and the St. Louis-Kansas City Carpenters Regional Council, said given COVID-19 and the current political climate, now is not the right time to push forward on privatization.

PFC Push While P3 approaches may earn the spotlight, the vast majority of airport projects are still funded through either the AIP fund or through PFCs. The excise taxes that pay into the Airport & Airways Trust Fund, from which the FAA is funded and the AIP program is administered, have been suspended, notes Van Beek. “Right now it doesn’t have anywhere near enough money to even pay for one year’s expenses.” Poole notes that “Congress has pretty strongly supported AIP funding” in the past, and he doesn’t believe that funding source is particularly vulnerable. Neither does Van Beek, but he does believe the need to replenish the Trust Fund might spur changes in how airports are funded. “It will be very difficult for a long period of time to have taxpayers cover the aviation industry, because there are a lot of other people out there hurting and a lot of claimants on any sort of relief money,” he says. “The way I look at it, in the medium to long term there is a day of reckoning coming up where we’re going to ask, how should the system be funded? Will airports perhaps be given more freedom economically to charge users in different ways? One of those ways could be through a heavier reliance on PFCs. The $4.50 cap on PFCs hasn’t changed since 2001, and airports have long been seeking an increase. Lobbying efforts specifically focused on a PFC cap increase may have been sidelined a bit this year as the industry focused on pushing for a relief package to shore up airports during the crisis, but an increase remains a top goal for airports. The harsh reality is that at the current level – and with passenger numbers down 50 to 80 percent or more – PFC revenues aren’t going to come close to covering the debt service on current PFC-backed bonds, nor will they be plentiful enough to fund the many projects airports have in the pipeline, experts say. “One blessing we may see in all of this is the issue regarding the PFCs,” says Southwell. “If passengers are not flying, airports are not generating revenue. That, of course,

ELIZABETH DUBECK, partner with the law firm O’Melveny, says most P3 investors won’t be put off by the current downturn in passenger traffic, since recovery is expected in three to five years and P3 leases typically span decades.

is affecting the grant funding because you’re not getting as much money into the Transportation Trust Fund. That’s going to show up in the offerings two or three years from now. “I’m hoping that will put some additional pressures on the increase of the PFC to $8.50, for which we will be asking,” Southwell says, adding that “a lot of that will depend on the political landscape.” Poole cautions, though, that an increase is in no way guaranteed. “The problem is that we’re stuck with a very outdated PFC and the numbers of passengers are just so far down,” he says. “For projects that have not yet been started, it may be the most prudent thing to hold off until the revenue picture is somewhat clearer.” He adds, however, that pushing forward makes sense for some projects. Still, with uncertainty surrounding PFCs, Dubeck says airports may be forced to seek alternatives such as P3s. “I haven’t seen anything indicating an imminent increase in those dollar amounts,” she says. “I think they’ll continue to be as they are currently - a really important piece of the puzzle. But the infrastructure needs continue to be great, and I think that there’s a lot of room for more creative solutions and additional sources of funding to improve the infrastructure assets that we have.”

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Small Businesses Struggling But Operators Still Planning For The Future BY ANDREW TELLIJOHN

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Airport Retail Group Inc. normally has more than 20 locations across eight airports, but in recent months the company has been cut down to just a couple of newsstands and the award-winning Princethemed store at Minneapolis-St. Paul International Airport (MSP). The latter is doing a solid business around the sale of Prince-themed face masks, necessary with most airports and airlines to fly these days. “They still come dancing into my store and they still leave dancing,” says Pady Regnier, CEO of Airport Retail Group Inc. “That’s what we want is for the passenger to have that experience.” Times are tough for the largest of retailers and restaurant operators enduring the effects of the near shutdown of travel due to the COVID-19 pandemic. For the smaller operators with fewer locations from which to spread their operational woes, it’s often been even tougher. Despite the drumbeat of bad news and rumors that the Airport Concessions Disadvantaged Business Enterprise (ACDBE) program itself is vulnerable as a consequence of COVID-19, Regnier and several fellow airport small business operators remain cautiously optimistic, at least so far, that they can survive the downturn and emerge from the pandemic era perhaps even stronger.

Survival Mode Regnier’s struggling, no question, but she thinks her company has a good plan. The MSP locations are showing some positive cash flows but the company nevertheless intends to keep most of its stores closed, at least until she hears about what congressional relief packages might include for airports and operators. She’s communicating regularly with her prime airport partners and she takes pride in seeing her own and other small businesses fighting hard to help keep the passenger experience in airports positive. “If small businesses are lost in the airports, it’s not going to be healthy for the industry,” Regnier says. “You need that newness, you need the non-global viewpoint. You need the local. That’s what we’re fighting for. “The name of the game is survival,” she adds. “I can see a dim light at the end of the tunnel, but I don’t know how long the tunnel is. That’s the truth. I don’t think anybody does.” Randy Hazelton, CEO of H&H Hospitality, agrees that just surviving is the current goal. Comparable sales remain off more than 60 percent. His company has been forced to downsize staff, streamline its menus, adjust hours of operation and take as many steps as possible to stay afloat.

Roz Mallet, CEO of PhaseNext Hospitality, kept as many restaurants open as possible in order to keep employees working and to avoid having to rehire and retrain managers for airport locations that present significant barriers to workers.

Hazelton is convinced that when the pandemic ends, however, he’ll be among those left standing. “We will persevere,” he says. “We’re reconfiguring our business to match the amount of demand we’re experiencing or to be more in line with the amount of sales, and making difficult decisions that will hopefully keep us insulated enough to come out on the other side.”

Staying Open PhaseNext Hospitality has eight fully-owned restaurants, plus three joint-venture operations in airports and military installations. Despite the uncertainty of COVID-19, President and CEO Roz Mallet made the decision to keep as many of those locations open as she could for as long as possible. She did so for multiple reasons. First, she wanted as many of her employees as possible to continue earning a living. Second, she knew that no matter how far passenger counts fell, airports would not completely close. Airlines were still hauling medical equipment and personnel, so she knew there would be at least some operations taking place. Finally, in an industry like airports, staying open seemed more practical. At

a brand like Buffalo Wild Wings, for example, Mallet says training, getting people badged to work and actually getting them on site is challenging. “That brand requires a certain amount of weeks of training managers before they are certified” she says. “If I had closed my restaurants, particularly in the airport where there is extra security and it’s more challenging to hire, then I would have delayed my potential recovery.” Those locations aren’t operating as they normally would. The company has restricted hours. In some cases, they are not open every day. And Mallet did choose to close two restaurants temporarily, one that was located in an international terminal and another that was near a security checkpoint that was closed. Mallet also delayed the construction and opening of another restaurant that had been under construction, when it became clear that challenges related to COVID were going to be longer lasting than initially hoped. But she says at about 45 percent down, her portfolio is probably performing fairly well under the circumstances. “It’s a day-to-day thing,” she says. “June and July were decent. August was not as good.”

Top, Above: Prince-themed masks, sold at an MSP store dedicated to the late rock star, have helped power sales that have kept Airport Retail Group’s cash flow positive there, but the company’s remaining stores across the industry remain closed.

One thing that Mallet says has helped is the fact that in most of her locations, she’s either independent or a sub-tenant rather than a joint venture partner,. The result is that she has the ability to make a lot of decisions herself. She’s also appreciative of airports that have worked as partners with operators, switching from minimum annual guarantees to percentage rents and, in some cases, forgiving some other expenses like utilities. She also acknowledges that if this goes on a lot longer, PhaseNext – like much of the industry – will probably need some financial help to keep making these choices. “It’s just been really challenging,” she says, adding that not all operators will emerge on pace with the travel industry.

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Mary Morgan, president of Morgan Group Ventures Inc., says she’s confident her company will emerge from the COVID-driven downturn, but acknowledges her store and product mix may have to change.

Above: While there are restaurants and retail venues operating at all airports, many remain temporarily closed due to traffic counts still lagging at around 30 percent of 2019 levels.

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Assessing Diversification Options Mary Morgan, president of Morgan Group Ventures Inc., has been operating in airports for 25 years. She’s got five jointventure locations that are open and a number of her own stores that are closed. Those that are open are in Ronald Reagan Washington National Airport (DCA) and Dulles International Airport (IAD) and are not generating much revenue. She applied for and received assistance from the Paycheck Protection Program (PPP) and applied for a potentially forgivable loan from the U.S. Small Business Administration, though she says the requirements for actually receiving forgiveness have evolved.

“You just have to continue watching,” she says. Morgan adds that while business is down, she’s exploring whether her company should vary its offerings going forward. There is, for the foreseeable future, she says, a lot of need for masks, hand wipes and other protective products. Conversely, there may be less demand for high-end, low-margin candy locations, particularly if international travel restrictions remain in place for a while. “We probably will have to vary our product mix,” she says. “When we do come back, how do we refine our mix so we are relevant to the passengers that are there?” Beyond that, Morgan is studying daily the progression of the COVID virus and preparing to discuss lease alterations with airport partners. She says traffic needs to push 70 percent to 75 percent before it will make sense to start thinking about opening most locations and, while she’s confident her company will remain viable, in may be smaller in recovery. “We will come back, no question,” she says. “Whether we will come back with all our locations is definitely a question.”

Sarah Levy Imberman, owner of S. Levy Foods, has been communicating regularly with lenders about individual and industry progress, and has been commiserating with JV prime partners and other ACDBE operators as challenges persist.

Communication Benefits Fewer than half of the restaurants in the portfolio of S. Levy Foods are open. The company’s operations in the international terminal at San Francisco International Airport (SFO), remain closed. At Midway International Airport (MDW), the company has eased into reopening as traffic has slowly started returning. “We’re starting to see some glimmers of hope, some passengers returning,” says Sarah Levy Imberman, owner. “It felt like for a while it was all doom and gloom.” She’s been in constant communication mode. She received a non-forgivable disaster relief loan to help through this time and she speaks regularly with her lender, to update worst-case scenarios. Levy Imberman also is regularly in touch with partners at SSP America, whom she says have been great at staying in touch through regular meetings. Through those calls, she’s been in touch with other ACDBE partners, which has also been helpful. “We’re all going through the same situations,” she says. “It’s been really nice to talk to each other. We’re all going through similar situations and knowing that you’re not alone.” Levy Imberman says these times have shown the importance of people and partnerships, and she’s hopeful that the shared effects of COVID-19 will inspire airports and operators to work together to find solutions that will make it easier for both parties to return to more prosperous times. Whether that comes through lease changes, extensions or further relief packages from the federal government, who knows.

In the meantime, she’s keeping an eye out for those positive signs and just trying to make it through. “You just have to weather the storm,” she says.

Prepping For Future Shifts Erin Humphreys, owner of Enroute Spa, didn’t have a choice when it came to closing her two wholly-owned spaces at Indianapolis International (IND). Providing good service to customers is “not possible with a six-foot separation,” Humphreys says. Separate from her spa business, just a couple of the eight stores where she operates as a joint venture partner with Hudson remain open. In both, the company has reduced costs to remain viable. Humphreys has chosen to use some of the down time to make some adjustments to her life that might eventually carry over into her business. She was already working with Duke Integrative Medicine to learn about health and wellness coaching, with the goal of working with people to help them make sustained behavioral changes to improve their lives. During the downturn, she finished a post-grad certificate course. Humphreys is still assessing specifically how to incorporate it into her businesses. She sees herself both able to offer a different level of wellness hospitality in her own stores and, potentially, able to offer wellness coaching to travelers or groups of employees who work at airports. “That’s absolutely in my wheelhouse and within my plan,” she says, adding that she also thinks there’s an opportunity to

Erin Humphreys, owner of Enroute Spa at IND, has used her pandemic time to take a post-grad certificate in wellness coaching that she thinks could add to her marketability within airports when fortunes change for the better.

help airports incorporate some health and wellness space in their design. “We have the opportunity to look at it from a systemic shift and bringing a healthier lifestyle or education opportunity to our passengers, to the travelers in general,” she says. “It’s time for us to take better care of ourselves.”

What Would Help? While Airport Retail’s Regnier has been pleased with how different arms of the aviation sector have stepped up and partnered to push for government funding and to ensure the ongoing meeting of customer expectations, she also thinks operators would fare better and perhaps be more willing to open more locations more quickly if they had better data. Hypothetically, she says, if an operator knows that the last flight on a concourse where she has a restaurant is at 4 p.m., she could perhaps close that location after that flight and transfer staff to another location in a different part of the airport that has a later bank of flights. “There are ways we can help each other by getting data out to help us really make sure we are serving the passenger,” she says. “It’s all over the board. Some airports don’t like to give data. They feel it’s a competitive disadvantage to have that out there. But we need better and more consistent data.” That would be better and smarter, Regnier says, than rushing all operators back before traffic significantly improves. “If we all open, with so few passengers we’re all going to fail,” she says. “There is an overcapacity issue in our industry right now.”

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AIRPORTS OF THE FUTURE Pandemic Slowdown Has Designers Exploring Airports Of The Future BY ANDREW TELLIJOHN

When COVID-19 struck down travel in March, airports across the U.S. quickly adapted with new cleaning, payment, delivery and other practices aimed at regaining traveler confidence and continuing to providing them with good service, while also being responsible stewards of the public’s health. But what about the long term? Will these changes last? What new changes will arrive in the estimated three to five years that will likely transpire between now and the projected return of travel to near-2019 levels? What, when COVID-19 is but a distant memory, will qualify as the frequently discussed “new normal?” AXN has spoken with several design and construction officials across the industry to get their thoughts on what can, and should, take place so airports are ready for when travelers finally do return in full force.

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Left: A tulip-shaped tower designed by Pininfarina for Istanbul Airport illustrates biophilic design, which aims to increase occupant connectivity to the environment through nature, space and place.

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“I’m not sure there will ever be a return to exactly the way things were before,” says Julie Wienberg, vice president of aviation infrastructure at HNTB Corp. “I think there will be a new normal and everyone will get used to it. But there will be a change in the way things are done that will remain permanent as far as consciousness around health and security.”

Mobile Ordering, Touchless Transactions Rising Many of the changes people will see down the line are extensions of those already taking place, says Nick Baker, CEO and creative director with SmartDesign Group. Mobile ordering and gate-hold delivery, for example, have existed for a while. Airports have dipped their toes in these waters, especially as younger, more tech-savvy travelers – many of whom want to have great experiences but don’t necessarily want to engage with other people – have demanded them. Baker sees this becoming far more commonplace. “That’s a joint initiative that the airport authorities and the operators need to do,” he says. “We’ve been trying to push more and more around the globe that the initiative needs to come from

the authority first, because they need to own the technology and then all of the operators can become part of that as a master concession plan.” Wienberg agrees, noting that touchless technologies are getting here faster than expected and it’s going to be an important piece of the airport of the future. “We’re seeing that tested and piloted and rolled out much more quickly than anticipated because of the pandemic,” she says. And when touchless isn’t the answer, the items that passengers need to touch as they traverse a terminal will be easier to clean, she says. Everything from hold-room furniture to wall coverings will be made of cleanable materials. Airports will communicate that cleanliness, as well. Even as COVID-19 subsides, there will be regular and visible cleaning and, while some of the signage suggesting social distancing might get taken down, it’ll be kept in storage, not trashed. “I don’t think they’re going to stop cleaning when the rates of infection go down,” she says. “This is likely not the one and only pandemic of our lifetimes. I think this is something that as the airlines and airports work together to figure out their basic solution, it’s going to have to be rolled in and rolled out as the level of threat changes.”

Services Evolution Below: More space and easily cleaned furnishings are two of the attributes likely to be integrated into terminal design going forward.

Rendering courtesy of Philip Robbie of RS&H.

There are some varied opinions on various aspects of the post-COVID concessions outlook, although there is general agreement that changes are in

store. One area of growing importance is lounges. They were changing even before the pandemic hit and, in the future, will not just be a place of luxury, but also a safe space for travelers, says Paolo Trevisan, head of design at Pininfarina of America. “Airport lounge design must focus on quality and the well-being of travelers,” he says, adding that good design can support good health and create moments of healing and tranquility. While there will continue to be accelerated demand for higher quality, more engaging lounges, the pandemic is likely to encourage new and different experiences within them. Airports and travelers likely will move beyond the idea that lounges are designed solely for VIP travelers. “Airport lounges might also evolve to accommodate different activities or retail opportunities that were not available previously,” Trevisan says. “With the help of new technology, which we use thoughtfully, airport lounges can also be optimized to offer cleanliness, better air quality and temperature control.” On a larger scale, airports need to take into consideration the increasing influence of the millennial traveler, says Roddy Boggus, aviation buildings service group leader at RS&H. He’s been thinking about the future of the industry through the eyes of his young adult children, who are in their mid-20s. That generation of traveler, he says, is already willing to sit on the floor near their gate, pay low fares and endure a flight some others may see as challenging “and it’s just a piece of the trip.” In another three to five years, as millennials begin to outnumber baby boomers and become even more powerful purchasers, airports will have to cater to them even more. “It makes me wonder if a lot of the infrastructure we set up for passengers, even the way we do our concessions, food and beverage and retail, back in the ‘80s and ‘90s when we started doing the mall effect, how much of that is going to work with those passengers?” Boggus says. “They seem to be more experiential-based than thing-based.”

Healthier Place To Be Designers seem to agree that airports will pay closer attention to healthy design going forward. Pininfarina’s Trevisan says biophilic design, which aims to increase occupant connectivity to the natural

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environment through the use of nature, space and place, will grow in importance. “We anticipate that travelers will be concerned with air quality,” he says. “There will likely be a need for filtered, purified air throughout the entire space. We have already been seeing this, but there will be a greater implementation of trees and greenery within airports – which can be managed and maintained by automated watering systems that are currently available.” While open-air balconies or sundecks extending from airline terminals would be ideal, he says airports can adapt existing spaces while minimally altering existing infrastructure. He cited a tulip-shaped control tower the company designed for the Istanbul Airport (IST) as bringing an organic touch to the landscape. “The contours of which are incorporated into the interiors in a way that helps to support wellbeing and enhance the overall experience,” Trevisan says. Rian Burger, senior principal specializing in airports for Stantec Architecture, also thinks airports will become among the healthier places to be, though it won’t happen just by making them larger. He acknowledges that, going forward, Stantec likely will advocate for larger terminals that allow travelers more space. But he adds that the six-foot standard for social distancing, as required by public health officials as a safe standard for dealing with COVID-19, would require for doubling or tripling the size of a modern-era pier, which would be prohibitive.

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“If we are designing a new terminal or a new concourse, we’ll probably encourage an airport to use more generous standards, make it more spacious,” he says. “The whole physical distancing thing is a difficult concept to grapple with in airports. … The numbers just don’t make sense.” Instead, he says, where airports have, in recent years, frequently applied for LEED certification in recognition of energy and environmental design features, Burger says they should consider applying for the WELL Building Standard, supported by the U.S. Green Building Council, which measures and certifies building features that take into account human health and wellbeing through air, water, nourishment, light, fitness and comfort. “I think that will be one of the good outcomes from this,” he says. “We should use the crisis to move things along. The experience can become much more pleasant.”

Quick And Efficient Burger and others also think technology enhancements can make airports an easier place to navigate. Rather than health checks making them clumsier, he suggests that replacing X-ray machines with CT scanners, for example, would allow security screeners to be remote and to process passengers in a more efficient, less hands-on way. “With a CT image, you can rotate [a bag] and cut slices through it,” Burger says.

“You can unpack it virtually rather than having to do it physically, so there is a lot less touching of things and a lot less time. It goes faster. The screeners are safer. Additional technological enhancements that could make the journey safer and easier for travelers are the ability to sign in with the Transportation Security Administration electronically for check-in from their vehicles but wait there until being summoned to avoid standing in line. A couple U.S. airports have tested this technology “so that it’s not this line snaking around the building,” Wienberg says. “Those are just going to be accelerated to keep physical distance and to keep long lines as minimized as possible.”

Diversified Destinations While Burger thinks airports and airlines will become healthier and more efficient, he also thinks airport authorities need to think bigger. He cited the Victoria & Alfred Waterfront development in Cape Town, South Africa, where a railway company privatized land inside an active seaport, which has developed into “one of the most

Below: The Victoria and Alfred Waterfront development in South Africa is an example of how a travel center can grow to include commercial success, complete with dining, shopping, residential and other options.

vibrant, people-attracting places in the world,” a mixed-use neighborhood where people live, work and travel. Using that as an aspirational goal for the airport of the future, he suggested that incorporating high-speed rail where appropriate or other types of autonomous vehicles of the future into planning. Such thinking, he says, could diversify airports and make them less vulnerable to catastrophic shut-downs. “There are all these new developments that are coming and that will take the hub-and-spoke concept for an airline, a lot of those spokes might be taken over by alternative forms of transportation in the long run,” Burger says, adding that airports should consider whether they are in the aviation business or more broadly in the business of connecting people and places, regardless of the mode.” It’s not as big a stretch as it may seem, he says, noting that Vantage Airport Group recently won a contract to partner with Amtrak at the William H. Gray III 30th Street rail station in Philadelphia.

Above: U.S. airports may not have the dwell times to become as experiential as airports overseas like Changi, with 40-foot waterfalls among their attractions. But they may have to become more experiential to attract younger passengers. Photo Credit: Jewel Changi Airport

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“If you think about it, it’s the same,” he says. “It’s about people getting from A to B. All the skills, all the experience those people have are transferrable to that. My hope is we would start looking wider at these things.” Whether it’s an entirely new focus on diversifying the business model or responding to the needs of the growing segment of younger travelers, RS&H’s Boggus agrees that the airport needs to become more experiential. How that happens is the focus of some internal discussion within the company right now, but the goal, at least in part, is getting travelers to want to say, “‘We’ve got to fly today, what if we go even earlier because I want to do this, this is the only place we can do this,’” he says. “‘This is the only place we can have this meal; this is the only place we can have this experience. Can we create something that drives people to have longer dwell times in our terminals today?” Boggus mentioned as an example 40-foot waterfalls at Singapore Changi Airport (SIN), one of the world’s most celebrated

airports. To date, that has not been the model in the U.S. “We haven’t had the dwell time for people to do those kinds of things,” he says, also acknowledging that it’s unlikely there will be a full-scale change in that direction domestically, but adding that the U.S. might need to meet its overseas counterparts halfway. Could the U.S. move away from hold rooms and toward large seating areas where passengers wait to be called to their gates? Could there be a fireside venue where people gather to watch a game or talk? “Do we design those things as an experience rather than in a way of convenience?” he asks, adding that while the change would be significant and challenging for some travelers, the technology exists that would allow designers to “take that fear away.”

Paying For The Upgrades So, who is going to pay for all the changes? While some airports still have the

space and flexibility to tweak and modify, some of the nation’s airports are working with aging, tired infrastructure that has long been out of date. The involvement of private capital in the construction of new airport infrastructure has long been prevalent around the world and it’s been long-discussed and slowly increased in relevance in here. SmartDesign Group’s Baker thinks COVID may push more authorities to think more seriously about large-scale public-private partnerships or full-scale privatization. “Is the final frontier going to be some privatization in the U.S. airports?” he asks. “Maybe. It’s been tried a few times. I think now may be the momentum that moves that forward.” Ultimately, airport authorities across the U.S. need to realize, he says, that providing a top-notch experience takes capital and that such investments could produce big payoffs. “If you give the experience to someone it will pay for itself,” he says.

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Airports Roll Out New Tech Solutions For Safety and Social DistancingÂ BY SALLY KRAL

Below: Tampa International Airport has installed electronic gates at the entrances of all four of its terminals to reduce touch points and physical contact with airport staff.

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Andrew O’Connor, vice president of portfolio management for SITA, likens the current COVID-19 pandemic to the September 11 attacks in terms of its impact on air travel. “The industry entered a world of heightened security following 9/11, and air transport is once again facing an industry-defining challenge that will transform operations across the board,” he explains. “Airlines and airports must now adopt new safety measures to keep air travel attractive and viable.” While 9/11 had a massive impact on security measures at airports and other public spaces, COVID-19 is proving to have a much broader impact – most everyday aspects of life have been affected on some level. And so, rather than focusing their efforts on one core area of air travel, airports are now tasked with finding solutions to many different, albeit related, travel concerns. “In response to the COVID-19 pandemic, we examined every step of the passenger and employee journey within the terminal and quickly implemented response initiatives in five areas to keep employees, stakeholders and travelers safe,” says Roel Huinink, president and CEO of JFKIAT, the operator of Terminal 4 at John F. Kennedy International Airport (JFK). The five key areas JFKIAT identified include hygiene and sanitization; health and wellbeing; social distancing and queuing; transactions; and communications. For JFK, and indeed most airports, alleviating traveler concerns across these areas has meant turning to technology and automation with renewed vigor. “Many airports were already in various stages of their digital transformation curve well before COVID-19,” O’Connor points out. “The adoption of digitization and automation of the passenger experience has been a major point of concern in the past, and the pandemic has only accelerated the need to adapt and implement technology to address the challenges posed by COVID-19.”

Health And Hygiene As travel is slowly starting to pick up again in some parts of the country, cleanliness is at the forefront in everyone’s mind, especially concerning high-touch, high-traffic public spaces like restrooms, elevators, escalators and the like.

This summer, Tampa International Airport (TPA) began employing robot software – the Dolly Handrail Cleaning System by Thomsen’s Manufacturing – to remove dirt and grime from escalator handrails with minimal manpower. TPA is also working with Flagship Janitorial Cleaning Services on other new technological devices to assist in sanitation efforts, including Kaivac, which allows for touchless cleaning of restroom floors and large surfaces using a pressure washing method; Karcher misters, which spray disinfectant evenly, allowing for cleaning of large areas in a small amount of time; Victory electrostatic sprayers, which produce positively charged particles that adhere to surfaces and disinfect touchpoints and surfaces such as elevator buttons and tabletops; and T7 Autonomous auto scrubbers that wash floors without a human driver.

Top, Above: In July, JFK’s Terminal 4 became the first terminal in North America to launch camera-enabled CrowdVision technology with new SafeDistance capabilities that can detect where groups are crowded or not properly social distanced in the terminal.

“Once we were satisfied with the new cleaning technologies, we opted to add them throughout the airport,” says TPA spokesman Danny Valentine. “Guests really appreciate how clean the airport is – especially during this time. According to a survey of 1,371 TPA travelers in July, 80 percent say they’re comfortable traveling through the airport.” Also this summer, Gerald Ford International Airport (GRR) announced that it would be the first airport test site for a new autonomous robot that kills COVID-

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Above, Right: To ease traveler concerns over sanitation and cleanliness in the airport, Tampa International Airport began employing several new cleaning technologies throughout the terminals.

19 and other viruses using ultraviolet (UV) technology. The robot is part of a comprehensive suite of tools utilizing UV technology to destroy the coronavirus, including a shoe disinfectant mat for guests, a pod that can be used to clean wheelchairs and luggage trolleys, and a chamber for personal items such as phones, keys and tablets. Beyond sanitation tools and robots, technologies that monitor the health status of travelers are growing. In June, Los Angeles International Airport (LAX) deployed thermal camera technology designed to rapidly identify people with body temperatures of 100.4 degrees or more. The cameras are installed at two locations inside the Tom Bradley International Terminal – the main entrance on the departures level and inside the terminal near select international arrivals – and they screen both arriving and departing passengers. Also employing thermal scanning technology, the Wellness Kiosks designed by LG Business Solutions can read body temperature and also dispense hand sanitizer and personal protective equipment.

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“New preventive measures aimed at limiting risk throughout the passenger journey require a new approach to passenger management,” SITA’s O’Connor says, pointing to the company’s new healthaware border checks. Using biometric technology linked to pre-checked identity, journey and health information, SITA is able to help airports identify passengers arriving from high-risk areas who would then be asked to self-isolate at home for 14 days to prevent the spread of COVID-19. SITA can also identify travelers who were sitting in the rows around these passengers during a flight so adequate protocols can be applied to those passengers as well. The biometric security company Clear, meanwhile, launched Health Pass, an extension of its mobile app, in May. The screening service assesses the user’s health through a questionnaire and temperature check, and can also link to the user’s COVID-19 test results and, eventually, vaccination status. So far, Health Pass has been in use at certain restaurants and as part of a partnership with the National Hockey League, with plans to enter additional venues, including airports, in the near future.

Safe Space Ensuring that customers are keeping safe distance to prevent the spread of any possible infection is a tall order in a hightraffic environment like the airport. In July, JFK’s Terminal 4 became the first terminal in North America to launch camera-enabled CrowdVision technology with new SafeDistance capabilities that can monitor social distancing from curbside and check-in all the way through security. “The technology can detect where groups are crowded or not properly social distanced in the terminal, and also provides us with real-time data of where backups might be occurring so that we can react quickly and modify the processes to ensure safety for our customers and employees,” says JFKIAT’s Huinink. Huinink adds that there was also an urgent need to ensure that these new technologies and initiatives were being properly communicated to travelers and employees. “We developed and launched the T4 Safe Travel Resource Center, a comprehensive informational page on our website detailing our safety initiatives at T4,

and we also created a branded campaign video that broadcasts on a loop throughout the terminal to encourage employees and customers to follow recommended guidelines around social distancing and hygiene within the terminal.” Delivering proper communications has been the main way LG Business Solutions has assisted airports in adjusting to this new normal. “We’ve installed the ReadySeeGo 86-inch Ultra Stretch Kiosk solution from Synect Media, using LG display technology, in certain TSA locations to help educate passengers on health and safety protocols while they’re going through security,” says Dan Verbsky, senior transportation account manager

for LG Business Solutions. “We also offer the Smart Restroom solution, which is already deployed in several airports and has an LG digital signage display at the restroom entrance that alerts travelers about how many people are currently in the restroom and when it’s safe to enter. It also provides alerts to airport staff about the cleanliness of the restroom and when it’s time for soap or paper towel refills.” Smart Restrooms were installed in 10 airports as of August, with another 10 airports on deck for installation by the end of the year, the company said. Huinink notes that thus far there’s been very positive feedback and compliance from travelers on the new measures at

JFK T4. “We’ve taken note of the fact that our customers’ expectations are changing as a result of the pandemic, and we must stay ahead of the curve in order to meet and exceed those expectations,” he adds. “The best practices we’re learning now as we implement these new technologies will be very important as we start to see more passenger traffic return to T4.”

Touchless Transactions Seeing that proper sanitation measures and health protocols are being taken in the airport will certainly help boost customer confidence to travel again, and what will aid in this even further is the implementation of low- or no-touch solutions, notes SITA’s O’Connor. “Focus will shift to automated operations, as this will play an important role in reducing queues and touchpoints at the airport as passenger volumes begin to recover and social distancing becomes increasingly difficult,” he says. SITA Smart Path is an example of touchless technology currently in use at airports around the world, O’Connor adds. “This uses biometric technology to verify a Left: Wellness Kiosks by LG Business Solutions (rendering pictured) include a thermal scanner for temperature readings, a motion-activated hand sanitizer dispenser and slots to hold boxes of masks or gloves.

Above: LG Business Solutions’ Smart Restrooms (rendering pictured) are already deployed in several airports, offering LG digital signage at restroom entrances that alerts travelers when it’s safe to enter. It also provides alerts to airport staff about the cleanliness and upkeep of the restroom. Right: LG Business Solutions has installed the ReadySeeGo 86-inch Ultra Stretch Kiosk solution from Synect Media, using LG display technology, in certain TSA locations (Los Angeles International Airport signage pictured) to help educate passengers on health and safety protocols while they’re going through security.

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Left: In July, SITA partnered with NEC Corporation to combine SITA’s touchless technology solutions with NEC’s I:Delight facial recognition platform, allowing travelers to check-in, make payments, drop their bag, and pass through security, immigration and boarding by scanning their face at each step.

passenger’s identity to create a secure digital travel ID that can be used from the selfservice check-in to boarding, minimizing the need to touch any airport hardware.” Then there’s SITA Flex, which has been implemented at San Francisco International Airport (SFO) and enables a full mobile and touchless passenger journey. “By allowing passengers to print bag tags directly from their mobile phones, this technology gives passengers control over their journey through the airport and creates a safe environment to restore their confidence in traveling following the pandemic.” In July, SITA partnered with NEC Corporation to combine SITA Smart Path and SITA Flex technology with NEC’s I:Delight identity management platform, which uses facial recognition to quickly identify passengers with a high degree of accuracy, even when they’re on the move. These platforms combined let travelers check-in, make payments, drop their bag, as well as pass through security, immigration and boarding by simply scanning their face at each step. TPA is also exploring more low-touch operations with the installation of electronic gates at the entrances of all four of its terminals. “These gates scan passengers’ boarding passes for entry into the terminal, replacing the previous process that required representatives to hand-scan each boarding pass. This new process reduces touch points, allows for social distancing and automates a previously manual process,” Valentine says.

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“The e-gates are still relatively new, but the response has been overwhelmingly positive so far. Passengers really appreciate anything we can do to automate and streamline their travel experience.” Contactless entry has been a key focus for Boingo Wireless. At Chicago O’Hare International Airport (ORD), Boingo’s secure wireless network supports the airport’s proprietary biometrics system to process touchless passenger boarding. And at LAX and Detroit Metropolitan Wayne County Airport (DTW), Boingo designed and manages the network that operates Clear’s pre-check kiosks for a frictionless, safer experience. “The way forward requires sharp focus on preventative measures and operational solutions, where technology is the common denominator for powering a touchless passenger journey,” says Danielle Aiello, vice president of account management for Boingo. In June, Denver International Airport (DEN) announced a strategic partnership with biometric technology company Daon to launch a multi-faceted pilot program using Daon’s IdentityX platform for digital onboarding and authentication. “Many travelers have concerns about being in densely populated areas where social distancing is a challenge, and having physical, high-touch interactions with airport employees and machines – in fact, according to a recent International Air Transport Association survey, 42 percent of travelers identified queuing as one of their top concerns, with

40 percent stating they would be willing to check-in online to minimize interactions at the airport,” notes Tom Grissen, CEO of Daon. “Daon’s IdentityX platform minimizes physical contact and congestion while maximizing speed and safety for both airport passengers and employees. Users control the entire experience on their own personal mobile device through our Glide app, leveraging digital tools like advance reservations and virtual queuing to avoid wait times and crowds.” In addition, the Glide app allows passengers to assert their health status via a questionnaire and test results, and order, pay and execute touchless in-person transactions throughout DEN’s stores and restaurants. At press time, the roll-out of this technology was well underway, with an official launch date set for early September. “The response to the ongoing roll-out has been exceedingly positive – DEN will be the first of many,” Grissen adds. “Reducing congestion and the need for physical contact has added importance in the current COVID-19 environment, but the underlying benefit – a faster, easier, more frictionless travel experience – is what travelers have been demanding for years.” Indeed, the technological advances airports are establishing in response to COVID-19 are likely to remain relevant even when the pandemic is over. “Similar to sustained changes to the travel industry after 9/11, the technology solutions and safety measures airports implement now are likely to become the industry standard for the future,” Aiello says. “Airports have and will continue to rise to the challenge through innovation and a resilient spirit. This latest challenge will serve to push the transportation industry forward into a whole new era of travel.”

ONE-ON-ONE

THE NEW AIRPORT EXPERIENCE BY SHAFER ROSS ditor’s Note: At the start of the pandemic, many were optimistic that within a few months, life would return to normal and the demand for air travel would gradually return to what it had previously been. More recently, it’s becoming apparent that the coronavirus pandemic is taking more of a toll on the economy than anticipated, and those in the airport industry are coming to terms with two facts: pre-pandemic levels of demand won’t be coming back for quite a while, and when they do, passenger expectations will be vastly different. Dallas-based Bottle Rocket, which offers end-to-end experience consulting services, has done extensive work with many media, hospitality, retail and restaurant businesses to drive growth and enhance the user experience. Peter Klayman, director of business strategy, spoke with AXN’s Shafer Ross to discuss what tomorrow’s traveler will be looking for in the airport experience.

Above: Peter Klayman, director of business strategy, Bottle Rocket

ROSS: When do you think this country will start returning to air travel? KLAYMAN: I think you’re looking at a minimum of a year, if not longer. I don’t know how much you can do to influence short-term behavior right now, unless you make it unbelievably easy to engage. What I mean by that is, [the approach of] “I don’t want to talk to anybody, I’m not going to go to the airport early, I’m not going to get anywhere close to anybody, I’m not going to put myself in any risk state that’s unworthy of the risk.” So, a lot of the elements in the core shopping journey that used to occur in the airport are no longer seen as worthwhile. Those high-value shopping journeys are no longer going to be present, the heavily staffed areas are no longer necessities. The elements of human experience are going to be very much remote and distanced. There’s no longer that intimacy that you get when you work with a person to help you through your shopping journey, because it makes people uncomfortable when they’re too close to [other] people. They’re already in a high-stress situation. So, I think in the short-term, the more that you can do to make it grab and go, the more that you can do to make it contactless… the better. Because you’re really just scraping the bottom of the bucket at this point. There’s no growth state here; this is a survival state in the short term.

Longer term, a lot of those buying trends will consistently develop. Unfortunately, I think that positions a lot of small retailers in a really negative place, because they can’t afford the consistent level of capital investment required to facilitate the desired techie buyer’s journey. I really don’t want to download more than the [airline’s] app… but if you could [get past that], there’s an opportunity to create a platform, which is to say, every entity within your unit might have access to that marketplace and use that accordingly. You have to create new marketplaces, because the demand for the traditional will be lower, and that will likely persist for quite a while. ROSS: Do you think it’s realistic to expect passenger numbers to bounce back once a vaccine has been released? Are there any other factors that might keep people from coming back immediately? KLAYMAN: We’re already starting to see that customer confidence in buying is dropping month-over-month. I think that the realities of the pandemic are starting to hit people. For a while, we were in “fake money land ” – when people were making more money from unemployment in the United States than they were from their previous job, so the true effect of the pandemic was not yet felt at a consumer level. But now a lot of that has expired, there are huge

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ONE-ON-ONE layoffs coming, all those furloughs are turning into permanent, full-time firings, and the consumer confidence is starting to hit a dent. This is a new moment in the lifecycle. I think a lot of people are like, “Okay, we’ve been through six months of pandemic.” No. We’ve been through six months of an artificial situation within the pandemic. Here comes the next phase, and this phase is going to be rougher than the first one, not easier. There’s a huge variance between how the average voter sees the virus, sees travel and sees the level of risk. The level of risk is, like, one in 4,600 if you fly with someone next to you and one in 8,900 if you fly with an empty seat. That’s pretty high odds of getting COVID when you consider the fact that you have a one in 34 million chance of dying in a plane crash. Nowhere near the same risk profile, but it’s all about how one perceives risk and how one perceives opportunity. Humans aren’t statistical, and they’re not risk-profile oriented, so we’re starting to get into a state where people are like, “I still need a

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summer vacation in 2020. I still need these things.” It’s caution fatigue. So, caution fatigue presents some opportunities in that people may still fly. ROSS: How can operators best capitalize on that returning passenger? KLAYMAN: My journey is almost entirely digital, and I evaluate the efficacy and quality of my product selection through that entire journey lens; not through the service delivery of, “Were you on time, [and] was the plane clean?” The stakes are much higher. I need to be at the same level of satisfaction across my entire journey, not just in that one moment of service delivery. Also, remember that at this moment, those customers that are traveling represent the extremes on the bell curve. So, don’t inform your strategies today based on those you see today, inform your strategies on the majority you intend to serve in the future. The majority you intend to serve in the future is not flying right now. [They] have started to build their own expectations of what their shopping journey should be

based on their experience with Amazon – which is what we’re all ordering from right now – and from their experience with UberEats – which we’re all ordering from right now. Airport operators are not competing against other airport operators, they’re competing against Amazon. So, if you were to ask me what the expectations are, look at what people’s expectations are outside the airport. How do people interact with QSRs now? Curbside and digital. Go look at Chipotle, go look at what Chick-fil-A is doing, at what Panera is doing. Those are the firms that are driving the net new expectations that must be fulfilled even at the airport level. It’s going to be cashless, it’s going to be easy to check out, you’re going to have to install safety precautions, you’re going to have to make it as simple as possible to get in and out. The ways that consumers are interacting with retail are changing and, unfortunately, small units without scale can’t invest the appropriate amount of dollars consistently to be competitive.

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Airport Experience News..............................................................................airportxnews.com...............................................2, 6, 8, 26, 27, Back Cover Flying Fish Exhibits..................................................................................flyingfishexhibits.com.....................................................................................23 Holt Construction.......................................................................................................holtcc.com.....................................................................................25 Paradies Lagardère................................................................................paradieslagardere.com........................................................... Inside Front Cover

November/December 2020, Volume 18, Issue 230 & 231

Special Directors of the Year Issue! Honors:

AXN Spotlights Its 2020 Directors Of The Year Kudos:

Colleagues Discuss Attributes Of This Year’s DOYs It’s A Wrap:

Key Developments In The Industry’s Most Difficult Year Oncoming:

Looking Ahead For New Growth Director’s Chair:

Cindy Nichol of Sacramento International Airport Latest Buzz:

Orlando International’s New South Terminal C NOTE: Editorial subject to change

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Place Your Ad Today! Space deadline: November 6, 2020 Artwork deadline: November 12, 2020 Contact the Business Development Department for advertising opportunities: phone: 561.257.1026 fax: 561.228.0882 email: bizdev@airportxnews.com

BEFORE YOU TAKE OFF

READY FOR A CLOSEUP PBS Travel Series Highlights ONT’s Independent Path BY SHAFER ROSS

Left: In the past four years, Ontario International Airport has established itself as a regional airport offering a viable alternative to Los Angeles International.

hen ownership of Ontario International Airport (ONT) in Southern California changed hands just under four years ago, the facility was suddenly no longer under the purview of Los Angeles World Airports (LAWA). The newly found independence was both liberating and daunting, says Atif Elkadi, public information officer for ONT. “That officially happened Nov. 1, 2016,” says Elkadi. “The changes that we’ve made to really grow our airport within this region [have been significant].” The past four years have certainly presented a learning curve for the airport, but in that time, ONT has established itself as a regional airport appealing to Inland Empire residents seeking an alternative to Lost Angeles International Airport (LAX). This is the focus of the upcoming season six episode of PBS’ “The Travel Detective with Peter Greenberg,” a popular television series offering insider information on the travel experience. The ONT episode, set to hit television and streaming services in September, was reported by travel editor

Below: PBS’ “The Travel Detective with Peter Greenberg,” is a popular television series offering insider information on the travel experience.

Scott McCartney. The episode explores the importance of smaller airports to regional travel and includes the recent history of ONT’s growth and development. “We just felt it was very important to lay out the history of Ontario International Airport and the transfer from when it used to be run by [LAWA} to now being its own separate entity, and what that journey has looked like so far,” says Elkadi. The timing of the episode is tricky. Though slated to begin airing in September, amidst the sharp downturn in demand for air travel brought on by the COVID-19 pandemic, the episode was filmed at the beginning of the year, just weeks before the country locked down in March in response to the virus’ outbreak. Despite the vast differences in the state of the world (and travel) then and now, Elkadi says the airport’s current struggles are not so different from the hurdles it regularly battled pre-pandemic. “Our challenges continue to be from the passenger side, with regard to people understanding that we are a perfectly viable option for many individuals,” says Elkadi. “You have approximately 24 million people who live in Southern California, it’s the second-largest market in the United States. Of those 24 million, 11 million of them live closer to this airport than really any other airport in the region. It’s very easy to get in and out of our airport. So just explaining that to our airline partners and then spreading the message out to our consumers [continues to be our mission].”

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