2012 Annual Report by San Antonio International Airport

air service

highlights

customer service

volunteers

small business

capital improvements

financials

enviromental

RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE San Antonio Airport System Annual Report 2012

City Manager’s Introduction A model of the 21st century

But 2012 was also a year for investment in the city’s future

day operations of San Antonio International (or SAT), Stinson

American city, San Antonio

potential for success, as the citizens of San Antonio voted for

Municipal (or SSF) Airports, and their tenants create jobs,

has enjoyed a period of

two major initiatives to keep the city competitive and ensure we

strengthen all industry sectors, and serve the needs of millions

solid economic performance,

are prepared for future successes and opportunities.

of visitors and residents annually.

development and investments

At $596 million, the 2012-2017 Bond Program Project is the

In 2012, the airport system also made significant investment

to the city. San Antonio’s

largest in the city’s history with 140 projects programmed.

commitments. A comprehensive project to modernize the

stability was confirmed by its

Combined with 2007’s bond program, these projects will

30-year old Terminal A commenced, making good on the

AAA general obligation bond rating renewal for the fourth

provide more than $1.1 billion in capital infrastructure and

promise to provide a state-of-the-art facility for airport

consecutive year by the three major credit ratings agencies.

quality-of-life improvements to include streets, parks, libraries,

customers. Also last year, City Council authorized a Customer

cultural arts facilities, and public safety facilities. In 2012, San

Facility Charge (CFC) on airport rental transactions, paving the

In Fiscal Year 2012, the City continued efforts to streamline

Antonio voted to invest in human capital with the “Pre-K 4 SA”

way for planning a future Consolidated Rental Car facility for

business processes, with nearly $24 million in general fund

initiative funded with a 1/8 percent sales tax. Designed to

SAT. Scheduled for a 2017 opening, this facility will provide

savings through technology and operational efficiencies without

provide high-quality pre-kindergarten education to thousands

improved customer service and convenience to residents and

reducing the overall service level to residents and businesses.

of 4-year old children over an eight-year period at four

out-of-town visitors.

The Kauffman Foundation recognized San Antonio with an

Education Excellence Centers, this initiative will equip students

“A+” rating for small businesses and Forbes named San

with the tools for long-term educational success and prepare

I am pleased to present the San Antonio Airport System’s 2012

Antonio one of the happiest cities for young professionals.

them to fill high-skilled jobs in a 21st century economy.

Annual Report that shares with you the city and airport system’s

creating jobs, and bringing new

Our “culture for business” continues to welcome company

successes and progress toward meeting our goals.

relocations, expansions, and start-ups. In fact, in Fiscal Year

Central to the city’s economic success, San Antonio’s Airport

2012, the City secured 5,670 total jobs and more than $800

System serves more than 8 million passengers and generates

million in investments in our local economy.

more than $5 billion economic impact annually. The day-toSheryl Sculley City Manager

Table of Contents City Manager’s Introduction.......................................... 1

2012 Passenger & Cargo Activity................................ 5-6

Environmental Stewardship......................................... 15

Letter from the Airport Advisory Commission Chair........................................................... 2

Highlights of the Year. .............................................. 7-11

Safety and Emergency Preparedness........................... 16

2012 Airport Capital Improvement Program......... 12-13

Fiscal Year 2011 Financials .................................... 17-20

Small Businesses Take Advantage of Airport Opportunities.................................................. 14

Aviation Department Staff and Community Volunteers........................................... 21-22

Aviation Director’s Message........................................... 3-4

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE

Chair’s Letter A great year for air service,

solicitation process, HMS Host International, Inc., and their

2012 was also a year when

joint-venture partner Chef Johnny Hernandez were selected.

the San Antonio Airport

San Antonians know Chef Johnny’s eateries that have

System made traction on a

quickly become local – and tourist – favorites. With the new

wide variety of projects.

program, Chef Johnny brings the ambience and flavors of his downtown venues La Gloria and The Frutería to the airport

In 2012, construction of a new

customer, along with new concepts like Mission City Icehouse.

air traffic control tower for Stinson Municipal Airport was approved by Texas

In October 2012, the Airport System also celebrated a major

Department of Transportation that will also provide 90% of

milestone with the completion of the 1000th home to be

the total project cost. The new tower, currently in design and

acoustically treated as part of the SAT’s Residential Acoustical

scheduled for 2014 construction, will prevent anticipated

Treatment Program (or RATP). Launched in 2006 with the

line-of-sight issues that may occur with future area

majority of funding from Federal Aviation Administration

development.

(or FAA) grants, the program mitigates airplane noise levels inside eligible residences located in affected areas near SAT.

Customer service is always a priority issue for the Airport Advisory Commission and I’m happy to report that the

I am proud of the accomplishments made in 2012 and know

Airport System has made great strides toward an exemplary

that the work on these projects will help ready San Antonio’s

customer experience. For example, in 2012, some 200

airports for future successes. On behalf of the entire Airport

volunteer Airport Ambassadors assisted more than half a

Advisory Commission, I extend my gratitude to the Aviation

million travelers. Also, the popular holiday music festival

Department staff and congratulate them on another

program was expanded to include a children’s concert

great year!

series during Fiesta 2012. With an eye to making even more improvements to customer service, the Airport System launched all-new websites for Stinson and San Antonio International Airport (or SAT), as well as a new mobile site for SAT. While renovation of Terminal A is a major step toward

Loren Wood, Chairman

an improved airport experience, the commission was also

Airport Advisory Commission

involved with the selection of a prime concessionaire to oversee a mix of national and local restaurants. After a City

AIRPORT ADVISORY COMMISSION George D. Alva

H. Norman Abramson

Marco A. Barros

Dean J. Danos

Mark R. Fessler

Marsha B. Hendler

Leslie A. Hobgood

Earl Jackson, Jr.

Maureen McCann

Todd M. Post

James D. Quinn

Mark A. Tafolla

Sandra L. Taylor

W. Larry Walker

Loren G. Wood

Kyle M. Tate

Ed Benson

Daniel L. Anderson

Aviation Director’s Message Comprised of two airports, San

Antonio International (or SAT)

service to Philadelphia.

and Stinson Municipal (or SSF), the San Antonio Airport System (or SAAS) had a great year in 2012, adding a new airline and several new non-stop flights , as well as advancing SAT’s ranking to among the nation’s top gateways to Mexico. Last year, we told you about our commitment to plan for

• In September, US Airways added daily non-stop • Alaska Airlines entered the SAT market in September

adding new daily non-stop service to Seattle.

• And, before the year’s end, Mexican-based Interjet

began service to Monterrey, in addition to their Mexico City and Toluca routes. • As SAT achieved extraordinary increases in Mexico

service, the airport was designated a Global Entry

airport by the U.S. Customs & Border Protection (CBP).

As part of the CBP Trusted Traveler program, Global

Entry kiosks are now available to member travelers

allowing expedited clearance upon arrival on an

international flight at SAT. The airport’s CBP also became

an enrollment center that conducts interviews for regional

in the 2012 annual report:

applicants to the Global Entry program.

• Air service was big news at SAT, as the airlines serving

• In 2012, the SAAS launched a new brand, with new

future growth and service to our customers and stakeholders. Today, I’m pleased to share that we have made good on that promise with several accomplishments that demonstrate the system’s values and our diligence to achieve our vision to become The Gateway for South Central Texas. Here are just a few of the accomplishments that are detailed

the International Airport launched non-stop flights to three

new destinations, Alaska Airlines entered the market

adding a fourth new non-stop city and Interjet expanded

adding more service.

• In May, AirTran, Southwest’s wholly-owned subsidiary,

began flying to México City and Cancun from SAT.

• In August, Southwest Airlines added two daily

non-stops flights to St. Louis.

logos for each airport. Along with the updated look,

four all-new websites were launched. In addition to a

new landing page on the City of San Antonio website,

each airport has a new website, and a new, user-friendly

mobile version of SAT’s website was introduced.

• In March, San Antonio City Council authorized the

collection of a Customer Facility Charge (CFC) on all

airport rental car transactions, laying the groundwork to

finance the airport’s future Consolidated Rental Car

facility to be located across from the terminals.

• In August, HMS Host International, Inc. was selected as

SAT’s prime concessionaire to oversee seven of the

airport’s restaurants in Terminal A. HMS Host and their

joint-venture partner Chef Johnny Hernandez will

introduce a mix of national brands and local favorites.

New offerings include Auntie Anne’s Pretzels/Cinnabon,

Steak ‘n’ Shake and La Tapenade, as well as Chef

Hernandez’s unique concepts La Gloria, The Frutería

and Mission City Icehouse. Famous Famiglia Pizzeria

will operate as a subtenant under HMS Host.

• In October, CTR Systems Parking, Inc., was awarded a

contract for a parking revenue control system at SAT.

The state-of-the-art system provides a more efficient

parking experience for customers and an improved

tracking system for the airport.

• October also marked the start of the $35-million

renovation of SAT’s 30-year-old Terminal A. Scheduled

for completion in May 2014, the project updates

finishes, furniture and provides for all-new restroom

facilities throughout the concourse, ticket lobby and

baggage claim area. Funded by General Airport

Revenue Bonds, Tax Notes and Airport Improvement

and Contingency funds, the Terminal A Renovation

Project will modernize the 378,000 square-foot terminal.

An independent IT Infrastructure Modernization Project

will provide additional upgrades in order to meet current

and future technology demands.

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE

• Some of the top-line statistics from calendar year

As a final point, I want to share that, in May 2012, the

Airport System released an updated economic impact

2012 include:

report, prepared by GRA, Inc. Based upon 2011 statistics,

421,718

132%

SAT Domestic Passengers

7,821,503

–2%

Total SAT Passengers Served

8,243,221

4,103,364

Total SAT Aircraft Operations

179,060

.53%

Total SSF Aircraft Operations

109,324

–14.5%

5,811,513

258,339,048

–2%

SAT International Passengers

Total SAT Enplaned Passengers

Total SAT Landed Weight (000) SAT Air Cargo and Mail (lbs)

the San Antonio Airport System contributes a $5.1 billion economic impact annually and supports nearly 100,000 jobs regionally. Moreover, the researchers projected an almost 10% increase to the impact over the next ten years. This year, I am proud that the organization looked forward to envision itself as a truly modern Airport System, ready to meet the needs of a 21st-century San Antonio and the traveling public. In 2012, staff and airport partners renewed their commitment to improving customer service and supporting the region’s economic development. I want to express my gratitude to Aviation staff, City Management, City Council, the Airport Advisory Commission and all of our partners for their continued support and contributions in 2012 that will help us achieve – and exceed – our goals.

Frank R. Miller Aviation Director

RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE

2012 Passenger & Cargo Activity SAT TOTAL DOMESTIC AND INTERNATIONAL ENPLANED & DEPLANED PASSENGERS

CALENDAR

INCREASE/

PERCENT %

YEAR

PASSENGERS

TOTAL

DECREASE

CHANGE

TOTAL ENPL

INCREASE/

PASSENGERS

DECREASE

2012

8,243,221

71,397

2011

8,171,824

2010

PERCENT % CHANGE

0.87%

4,103,364

31,583

0.78%

137,280

1.71%

4,071,781

49,767

1.24%

8,034,544

196,323

2.50%

4,022,014

114,959

2.94%

2009

7,838,221

-520,294

-6.22%

3,907,055

-260,385

-6.25%

2008

8,358,515

283,078

3.51%

4,167,440

136,869

3.40%

2007

8,075,437

43,157

0.54%

4,030,571

27,496

0.69%

2006

8,032,280

594,990

8.00%

4,003,075

289,283

7.79%

2005

7,437,290

438,195

6.26%

3,713,792

214,897

6.14%

2004

6,999,095

460,794

7.05%

3,498,895

247,984

7.63%

2003

6,538,301

--------

3,250,911

--------

SAT AIRLINE PASSENGER MARKET SHARES SAT AIRCRAFT LANDINGS & TAKE OFFS

5.30% 15.40% 41.25% 1.02%

17.08%

1.86% Southwest/Airtran 41.25% US Airways 5.30% United/Continental 15.40%

1.96% 16.13% Misc. American Aeroméxico

1.02% 17.08% 1.96%

Delta InterJet

16.13% 1.86%

CALENDAR

TOTAL

INCREASE/

YEAR

OPERATIONS

DECREASE

PERCENT %

2012

179,060

947

0.53%

2011

178,113

698

0.39%

2010

177,415

-17,242

-8.86%

2009

194,657

-21,977

-10.14%

2008

216,634

-2,803

-1.28%

2007

219,437

503

0.23%

2006

218,934

4,163

1.94%

2005

214,771

-8,256

-3.70%

2004

223,027

-38,724

-14.79%

2003

261,751

------

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE

2012 Passenger & Cargo Activity SAT AIR FREIGHT AND MAIL

STINSON AIRCRAFT LANDINGS & TAKE OFFS

CALENDAR

TOTAL WEIGHT

INCREASE/

PERCENT %

YEAR

(POUNDS)

DECREASE

CHANGE

CALENDAR YEAR

TOTAL OPERATIONS

INCREASE/ DECREASE

PERCENT %

2012

258,339,048

-6,316,301

-2.39%

2012

109,324

-18,463

2011

264,655,349

-8,296,394

-3.04%

2011

127,787

2,133

1.70%

125,654

-28,653

-18.57%

-14.45%

2010

272,951,743

18,229,269

7.16%

2010

2009

254,722,474

-28,075,004

-9.93%

2009

154,307

-10,842

-6.56%

2008

282,797,478

1,981,000

0.71%

2008

165,149

8,101

5.16%

2007

280,816,478

-3,305,904

-1.16%

2007

157,048

32,543

26.14%

2006

284,122,382

20,660,694

7.84%

2006

124,505

8,297

7.14%

2005

263,461,688

-651,819

-0.25%

2005

116,208

-7,087

-5.75%

2004

264,113,507

7,379,295

2.87%

2004

123,295

-7,953

-6.06%

2003

256,734,212

------

2003

131,248

-------

SAT CARGO AIRLINE MARKET SHARES SAT AIR CARRIER LANDED WEIGHT IN POUNDS

PERCENT %

55.40%

CALENDAR

TOTAL

INCREASE/

YEAR

WEIGHT (000)

DECREASE

2012

5,812,227

104,221

1.83%

2011

5,707,292

75,089

1.33%

2010

5,632,203

74,746

1.34%

2009

5,557,457

-651,735

-10.50%

2008

6,209,192

86,595

1.41%

2007

6,122,597

176,365

2.97%

2006

5,946,232

296,004

5.24%

2005

5,650,228

233,673

4.31%

Federal Express Corp.

2004

5,416,555

25,254

0.47%

Airline Belly

2003

5,391,301

------

0.54%

36.98% 2.11

UPS

4.97%

55.40% 4.97%

Ameriflight Inc.

2.11%

Other

0.54%

36.98%

Highlights of 2012

Air Service Expands in 2012 San Antonio International Airport (or SAT) closed the year with a new record for international passengers, leading the way for SAT to become the 10th largest gateway to Mexico behind Chicago and a Global Entry Airport under the U.S. Customs & Boarder Protection (or CBP) Trusted Traveler program. The ease and timeliness of processing international arrivals in San Antonio, has made SAT a popular alternative to nearby hub airports. SAT counted a total of 421,718 international boarding and deplaning passengers in 2012, a 132% increase over 2011. Domestic passenger numbers (7,821,503) were slightly down by 2% compared to the previous year. Also in 2012, SAT welcomed new international and domestic nonstop flights and a new airline to its family of airlines. As the 10th largest U.S. gateway to Mexico (Source: Diio, November 2012), SAT international customers fly nonstop

on AeroMexico, Interjet, VivaAerobus and AirTran, a

AIRTRAN LAUNCHES HISTORIC MEXICO SERVICE

subsidiary of Southwest Airlines, to Mexico City, Toluca,

AirTran made history in May 2012, when it began daily

Monterrey and Cancún. During peak travel periods, 60

non-stop service between SAT and Mexico City and three-

weekly flights are available to these Mexican destinations

times weekly to Cancún. AirTran entered the San Antonio

from SAT.

market in June 2008 with daily flights to its Atlanta hub. Southwest acquired AirTran in May 2011. During the first

In addition to the expanded international service to

quarter of 2012, the Federal Aviation Administration (or

Mexico, non-stop flights to 30 domestic destinations, three

FAA) granted Southwest and AirTran a single operating

of which were added in 2012, are making SAT the airport

certificate. In addition to the international flights, AirTran

of choice for central and south Texas residents. SAT airlines

provides service to Atlanta and Houston Hobby.

offer customers on a weekly basis a comfortable capacity of approximately 100,000 seats and the convenience of

SOUTHWEST AIRLINES ADDS SERVICES

850 weekly departures to 34 non-stop destinations.

On August 12, 2012, Southwest initiated new non-stop flights to Lambert-St. Louis International Airport. This new service is available twice daily and brings Southwest’s nonstop destination count from SAT to 15 with approximately 50 daily departures. It all began on June 18, 1971 when Southwest Airlines started service to Dallas Love Field from SAT with six

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE San Antonio Airport System Annual Report 2012

Highlights of 2012

roundtrips and a $20 one-way fare. The triangle first

SAN ANTONIO PROVIDES A WARM WELCOME

conceived on a napkin in San Antonio was closed when

TO ALASKA AIRLINES

on November 14, 1971 Southwest started daily flights

On September 17, 2012, Alaska Airlines entered the

between SAT and Houston Hobby Airport. Southwest has

San Antonio market with daily non-stop flights between

continued to grow its presence in San Antonio to include

Seattle and SAT. The service marked the first time in San

the installation of its Customer Support and Services Call

Antonio for Alaska Airlines and the first non-stop flight

Center. During 2012, Southwest expanded the Center in

offered between the two cities. The new service provides

San Antonio bringing its employment to a total of 800.

travelers more options for domestic travel and increases the ease and convenience for business and leisure travelers

US AIRWAYS BEGINS FLIGHTS TO PHILADELPHIA

throughout the great Northwest, as well as western

The new service to the “City of Brotherly Love” started on

Canada and Alaska.

September 5, 2012. This new US Airways service added the airline’s third non-stop destination from SAT. The flights

INTERJET ADDS 3RD DESTINATION FROM SAT

to Philadelphia offer San Antonio’s travelers another option

Interjet, a Mexican-based carrier, began twice-weekly non-

to major international business markets and high-demand

stop service to Monterrey, Mexico on November 11, 2012.

leisure destinations. US Airways also provides daily non-

Interjet also continues to serve Mexico City and Toluca from

stop flights to Phoenix and Charlotte. All US Airways’

SAT. The airline, with its competitive air fares to these three

service at SAT is available via 61 weekly departures.

Mexican markets, appeals to the needs of south Texas’ travelers for purposes of both business and pleasure.

Highlights of 2012 San Antonio Airport System has Major Impact on Region’s Economy The San Antonio Airport System (or SAAS) is a major

San Antonio’s airports are responsible for an estimated $227 million in state and local taxes ($154 million in state taxes, $73 million in local taxes).

economic driver in the local and regional economy. In a

In addition to jobs, the airports are generators for

study prepared by GRA, Inc. for the City of San Antonio’s

commerce and trade supporting economic activity in the

Aviation Department, the two city-owned airports San

region. In 2012, approximately 260 million pounds of

Antonio International Airport (or SAT) and Stinson

freight cargo and more than eight million passengers

Municipal Airport (or SSF), generated an estimated $5.1

moved through SAT. Stinson reported approximately

billion in regional economic activity combined. The total

110,000 aircraft landing, and takeoffs.

SAAS economic impact is comprised of direct (on-airport) impacts ($1.1 billion), indirect (visitor spending) impacts ($1.2 billion) and induced impacts ($2.8 billion).

For the study, GRA also developed a ten-year projection of economic impacts of the San Antonio airports. Using the Federal Aviation Administration’s projected growth path for flights for airports in SAAS, GRA estimates that by

The SAAS’s induced impacts represent the economic

2021, the total SAAS economic impact will grow to more

activity supported by the re-spending of SAAS-related

than 106,000 jobs, with earnings exceeding $1.7 billion.

worker and proprietor earnings throughout the San Antonio region. Additionally, the activity at SAT and SSF supports nearly 99,000 jobs with a total earnings impact

In addition, the GRA study projects over $5.5 billion in inflation-adjusted economic impact from the two airports.

of $1.6 billion.

EMPLOYMENT DIRECT IMPACTS

EARNINGS

OUTPUT

6,053

$291 M

$1.083 B

INDIRECT IMPACTS

15,233

$279 M

$1.151 B

INDUCED IMPACTS

77,390

$1.02 B

$2.842 B

TOTAL IMPACTS

98,676

$1.599 B

$5.078 B

$5.1 BILLION IN REGIONAL ECONOMIC ACTIVITY COMBINED.

Highlights of 2012 New Customer Service Initiatives NEW WEBSITE, NEW LOGO LAUNCHED In 2012, San Antonio Airport System introduced a new logo and website as part of a plan to create a fresh, updated and modern brand, as well as improve the customer experience for the traveler. The new logo, created in-house, provides a simplified yet modern visual appearance for the airport’s brand identity.

Additionally, SAT launched a mobile version of the website.

Travelers interested in applying for Global Entry status

The site includes auto-detection capabilities which will

can visit www.globalentry.com to complete and submit an

automatically display the correct version of the website

application, along with providing a payment of $100 that

for mobile device users. Travelers can still get up-to-date

is good for a five-year membership in the program. Once

information on flights, airport services and amenities, just

a background check is completed and the applicant is

in a summarized version. The mobile website also has a

approved, the applicant progresses to the next phase - a

link to the full website should visitors be interested in more

personal interview with a U.S. CBP officer. Once enrolled,

in-depth information.

members are processed for arrival into the United States in less than five minutes.

Developed using two colors, the main element of the logo is a dynamic contrail in the shape of an “S”, reflective of the San Antonio river. The logo enhances the airport’s recognition among the community, and captures the essence of the ever changing aviation industry. The new websites, designed with the customer in mind, captures SAAS’s forward–thinking vision and commitment to the growing needs of its customers. With streamlined searching, intuitive navigation and an interactive flight tracking tool, the new sites incorporate an innovative approach to sharing information with customers.

SAT DESIGNATED AS A GLOBAL ENTRY AIRPORT

In addition to a bright, fresh color scheme, the SAT site was

In August 2012, officials from U.S. Customs & Border

AMBASSADOR PROGRAM

fully developed as a less cluttered online tool which aims to

Protection (or CBP) and the City of San Antonio

In its 12th year, the airport’s Ambassador Program

help passengers navigate the site with ease. The redesigned

inaugurated the arrival of Global Entry, a CBP Trusted

continues the long standing tradition of welcoming visitors

website, www.sanantonio-airport.com, is user friendly

Traveler program, allowing pre-approved, low-risk

to San Antonio, as well as assisting them and providing

with easier navigation, showcasing rotating banners, as

travelers expedited clearance upon arriving in the United

information. The group of approximately 200 volunteers

well as “hot buttons”, for quick access to highly searched

States on an international flight. Shortly after the program’s

assisted roughly 508,000 passengers in 2012. Ambassador

information. Additional features include: a sortable tenant

arrival, SAT’s Customs Area became an enrollment center,

volunteers assist and greet passengers in the terminals and

directory, a “What’s New?” section for the latest airport

eliminating the need for San Antonio area applicants to

also provide golf cart shuttle service from the long-term

news, a Book A Flight module and a direct feed to the

travel to Dallas, Houston or another state to conduct the

parking garage to the terminals.

airport’s social media networks.

short enrollment interview.

Highlights of 2012 Dressed in their signature cowboy hat and western vest,

remains an integral and non-traditional resource for the

on several of the establishments in the new contract. La

Ambassadors are easily identifiable. Volunteers typically

Airport Police Division. They assist in providing a safe and

Gloria will serve street foods of Mexico including, tacos

work four hour shifts from 8:00 a.m. to 8:00 p.m. Although

secure environment for the traveling public and employees.

tortas, ceviche and sopes. Hernandez’ Fruteria will offer

“normal” working hours start at 8:00 a.m., many dedicated

The program was created in 2006 and to-date has 36

traditional tostadas, sandwiches, fruit cups, yogurt,

individuals can be found helping travelers as early as 5:00

members. In 2012, VAPs provided 5,200 service hours at

vegetable juices and fruit smoothies by day, but by night,

a.m. Ambassadors provided over 34,000 hours of service

San Antonio International Airport.

the restaurant will transform into a lively, contemporary

this year alone.

The idea is to recruit and train community volunteers to

cocktail lounge featuring fresh fruit tequila cocktails. Johnny Hernandez’s third concept, Mission City Icehouse,

Additional duties include assisting with airport special

support current law enforcement and security personnel,

events, new airline launches and inaugural flight

and place them in positions where they could be extra eyes

celebrations. Ambassadors also assist with welcoming

and ears for the Airport Police. VAP volunteer duties include

attendees of large conventions and our military heros

recognizing and reporting security violations and suspicious

Other outlets included in the concession package are La

coming home. They attend quarterly outings in the

activity, patrolling parking facilities, terminals and airport

Tapenade, a Mediterranean-styled café that will offer

community to learn about existing and new tourist

perimeter areas. Additionally, VAPs issue parking violations

healthy options of gourmet sandwiches and flatbread

attractions, which helps them better serve visitors. Each fall,

as warranted, assist in special projects and provide

pizzas topped with fire-roasted vegetables, specialty meats

Ambassadors are recognized for their service at an annual

administrative support.

and cheeses. Steak ‘n Shake, a national brand, will serve

Ambassador Appreciation Banquet.

SAT’s Concession Program On August 17, 2012, the San Antonio City Council approved a mix of national brands and new concepts for the concession program at SAT. Council approved a seven-year contract with HMS Host International, Inc. as the prime concessionaire to bring seven new restaurants to Terminal A. Overall, host will mange and operate a total of seventeen restaurant and retail stores at SAT. Several new stores and restaurants will phase in starting the mid-year 2013, including La Gloria, a local favorite

VOLUNTEERS IN AIRPORT POLICING (VAP) With the continued increase in passenger air travel, the Volunteers in Airport Policing, known as the VAP program,

owned by Johnny Hernandez, a San Antonio chef and the owner of the catering company True Flavors. Hernandez is a 35-percent joint-venture partner with HMS Host

will serve grab-and-go sandwiches and salads. The Icehouse will also serve local and regional beers.

burgers, fries and shakes. Auntie Anne’s Pretzels and Cinnabon, which are both operated by a San Antoniobased franchisor, are also included in the list of new restaurants. Famous Famiglia Pizzeria, which is the only operator scheduled to be retained in the new arrangement, will refurbish its current restaurants. The new restaurants consist of well-known national brands, local flavors and include new concepts unique to San Antonio International Airport. Construction of the new outlets will coincide with the Terminal A renovations. Stores will open in phases, with construction beginning in February 2013.

2012 Airport Capital Improvements the 12 public restrooms will be renovated and reconfigured

year. The projected collection of the CFC will be used on

similar to those in Terminal B. The project also calls for

a cash basis to conduct initial studies and faculty design,

six escalators to be replaced and five elevators to be

and subsequently, to leverage bond financing for the

refurbished. The renovation project will be completed in

construction phase.

11 phases, starting on the southern end of the T-shaped terminal in the areas currently occupied by Gates 14, 15 and 16.

The facility will be located directly across the street from the terminals. It will provide a quick-turn around area for washing, fueling and light maintenance of the vehicles.

Funded as a City of San Antonio Enterprise Fund, the

The need for rental car buses will be eliminated thus

Aviation Department does not use City funds or local

benefiting the environment and improving traffic flow in

tax dollars to operate the Airport System or pay for

front of the terminals. The estimated cost of the CONRAC

enhancements or improvements to its facility. This project is

is $130 million, with final cost to be determined following

funded through General Airport Revenue Bonds, Tax Notes

completion of preliminary studies and construction phases.

and the Airport Improvement and Contingency funds.

SAT RUNWAY EXTENSION PROJECT COMPLETED

CONSOLIDATED RENTAL CAR

The City of San Antonio Aviation Department in partnership

With City Council’s approval of a Consolidated Rental

with the Federal Aviation Administration completed a 1000-

Car (CONRAC) facility, the airport hopes to improve

foot extension at the north end of Runway 4/22 (formally

the customers experience by providing a convenient,

3/21) in December 2012. The extension, constructed by

centralized facility to rent and return car rentals. As part

Yantis Co., will provide additional take-off and landing

of the Airport’s Master Plan, the project is estimated to be

lengths and facilitate larger aircraft operations at San

TERMINAL A RENOVATIONS START IN 2012

completed for occupancy in 2017. In March 2012, City

Antonio International. In addition, the extension provides

October 2012 marked the start of the estimated $35

Council authorized collection of a Customer Facility Charge

the airport with an alternate to the existing capabilities of

million Terminal A Renovation Project at San Antonio

(or CFC) on all airport rental car transactions. The CFC is

Runway 12R/30L, which is currently 8,500 feet in lenth.

International Airport. The project, slated to be completed in

a nationally accepted tool for financing CONRAC facilities

The nearly three-year, $31 million project extended Runway

May 2014, will bring new finishes, infrastructure upgrades

and has been used by other airports. The amount of $4.50

4/22 to 8,500, and lengthened the runway’s two parallel

and complete modernization of the restrooms to provide a

per contract day was approved and will fund the planning,

Taxiways Q and N, and added connector Taxiways N1

customer experience consistent with the airport’s Terminal

financing and constructing of the one-stop facility. The CFC

and Q1. An additional taxiway connector, Taxiway C,

B. Renovations are also scheduled for access and queuing

is applicable only to rental car transactions occurring at the

is scheduled to be completed in late 2013. The project

improvements to the TSA security checkpoint.

airport and not to other city-area locations. It is projected

also included runway and taxiway lighting, signage and

The 378,000-square-foot Terminal A facility will get new

the Aviation Department will raise about $9 million per

circuitry.

flooring, furnishings, wall covers and lighting. Additionally,

2012 Airport Capital Improvements AIRPORT IT INFRASTRUCTURE

NEW AIR TRAFFIC CONTROL TOWER

MODERNIZATION PROJECT

PLANNED AT STINSON AIRPORT

In 2012, City Council approved a contract with SpawGlass

The Aviation Department coordinated with the Texas

Contractors, Inc. for the Airport IT Infrastructure

Department of Transportation (or TxDOT) to develop

Modernization Project. The project will upgrade the current

and construct a new air traffic control tower at Stinson

IT infrastructure in Terminal A and two external locations in

Municipal Airport. The new tower will eliminate anticipated

order to meet the current and future technology demands

line-of-sight issues that will occur with future development.

of San Antonio International. The project is scheduled for

This project is part of a grant program in which TxDOT

completion in late Summer of 2013.

oversees the development of the project and provides 90%

PARKING REVENUE CONTROL SYSTEM PLANNED In October, CTR Systems Inc. was awarded a contract for the replacement of the Parking Revenue Control System at SAT. Areas receiving the new equipment include all public and employee parking areas, added access control and dispatch system for the vehicles for hire holding lot, and new vehicle detection system for the terminal roadways. The system will replace field devices with state-of-the-art hardware and software that will offer added convenience and benefits to the customers utilizing the airport for their parking needs. These include parking availability posted on-site and published to the SAT website in real time, additional payment methods, decreased transaction processing times and increased component reliability. The system also offers SAT greater ability to track, reconcile, and report all transactions with increased controls and more flexible and customizable reporting.

of the total project cost up to $2 million, while the City provides the remaining matching funds. In August 2011, City Council authorized submittal and acceptance of a TxDOT grant in the amount of $270,000. The grant funds were used in 2012 to initiate design and an enviromental assesment. The project is currently in design, with construction expected to begin in 2014.

Small Businesses Take Advantage of Airport Opportunities AVIATION DEPARTMENT FISCAL YEAR 2012 —

FEDERALLY-ASSISTED CONTRACTS

PROJECTS AND ACCOMPLISHMENTS

Annually, the city receives FAA grants for eligible San

The City’s Aviation Department is committed to supporting

Antonio International Airport (or SAT) construction and

an environment which strives to level the contracting playing

professional services contracts. Disadvantage Business

field by promoting the utilization of locally-owned small

Enterprise (or DBE) contractor participation realized the

businesses and Disadvantaged Business Enterprises (or DBE).

following results during FY 2012:

The department’s Small Business Division advocates and promotes meaningful participation by underutilized groups in the procurement process for City and federally-funded projects. The division activily works to foster opportunities for small business through outreach, education, and partnerships. CITY OF SAN ANTONIO SBEDA PROGRAM The City of San Antonio through its Small Business (or SBEDA) program whole-heartedly advocates for small, minority and women-owned business participation in its contracting opportunities. The Aviation Department performs SBEDA program outreach to ensure there are opportunities for locally-owned small, minority, and women-owned business enterprises to compete for airport contracts. During FY 2012, City Council awarded 12 Airport System contracts totaling $7,968,523 with SBEDA participation. Of note, 10.95% of payments were made to local African American Business Enterprises.

FISCAL YEAR 2012 DBE

Total FAA Grant Assisted Contracts Total DBE Contracts Awarded Prime DBE Contractors Non-Prime Contractors SAT – DBE Goal Total Actual Participation of DBE Contractors

$16,764,940.00 $3,467,317.00 1,750,000.00 $1,717,317.00 12% 20.68%

FY 2012’s DBE participation rate represents a 20.1% rate increase over the previous fiscal year. This type of progress is the result of persistent outreach efforts by the Aviation Department’s Small Business staff. AIRPORT CONCESSIONS CONTRACTORS SAT works diligently to create opportunities for certified Airport Concessions Disadvantaged Business Enterprises (or ACDBE). Total ACDBE participation for FY 2012 was 22.5%. This represents total concession revenue to certified ACDBE’s in the amount of $17,527,969 in all categories of prime, subcontracts, and purchases of good and services.

Environmental Stewardship The San Antonio Airport System’s Environmental

With no cost to homeowners or use of local tax dollars,

Stewardship Division (or ESD) places high precedence on

192 homes were acoustically treated in calendar year

environmental sustainability at the airports. In addition

2012, bringing the total to 1,060 homes and 216

to advancing the Aviation Department’s Sustainability

apartment units treated since the program began.

Plan, the ESD obtained annual maintenance for the solar

Pending continued federal funding, it is anticipated that

photovoltaic system located on top of the San Antonio

approximately 150 homes will be acoustically treated in

International Airport (or SAT) long-term parking garage.

calendar year 2013.

In 2012, ESD conducted several tenant and staff training sessions pertaining to the airport’s Storm Water Pollution Prevention Plan, responded to fuel spills, monitored batch plants and obtained environmental studies in support of runway and terminal development projects. 1000TH HOME COMPLETED FOR SAT ACOUSTICAL TREATMENT PROGRAM In early October 2012, City of San Antonio officials along with contractor THC Inc., celebrated a major milestone with the completion of the 1000th home under SAT’s Residential Acoustical Treatment Program (or RATP). Launched in 2006, the program provides

During 2012, the City of San Antonio accepted $8 million in FAA grant funds for the RATP. The FAA funds 80% of the program, while the remaining 20% is provided through airport-generated funds.

BASURA BASH The 18th annual Basura Bash waterway cleanup was held in February and resulted in the cleanup of 13 sites along various local waterways. The San Antonio Aviation Department’s ESD concluded its fourth year sponsoring the event. The airport cleanup site located north of Sky Place Blvd. drew approximately 74 volunteers. The ESD staff along with representatives from the City’s Public Works Department spent the day cleaning up a portion of the Salado Creek, located on airport property.

acoustical improvements to eligible homes near the

In addition to several truck loads of garbage, volunteers

airport. Treatment may include replacement of windows

removed approximately 20 vehicle tires, several metal oil

and doors, installation of additional insulation, as well as

drums, plastic buckets and pipes, glass containers and

other noise mitigation measures with the goal of reducing

other materials.

noise level by at least 5 decibels inside the home.

Safety and Emergency Preparedness AIRPORT’S COMMUNICABLE DISEASE

provides fundamental wildlife and habitat information

RESPONSE EXERCISE

to identify hazardous species, natural and artificial

The Aviation Department, in partnership with the San

attractants and identify trends in wildlife at the San Antonio

Antonio Metropolitan Health District, conducted a table-

International Airport. The plan provides a blueprint for

top exercise intended to evaluate the SAT Communicable

wildlife hazard mitigation. Both the assessment and the plan

Disease Response Plan (or CDRP). The plan was created in

were accepted and approved by the FAA.

2011. In response to the increase of international traffic,

In 2012, the Division took additional steps to mitigate

the CDRP lays out the actions to be taken by the Department

the jack-rabbit population at the airport. Staff attended a

and its emergency response partners in order to effectively

training program conducted by a qualified wildlife damage

manage communicable disease threats on-board arriving

management biologist to gain a deeper knowledge and

international aircraft. Numerous agencies collaborated

acquire the skills needed to successfully expand the Wildlife

in the table-top exercise including: San Antonio Police

Hazard Management Plan.

Department, San Antonio Fire Department, Customs and Border Protection, Center for Disease Control, multiple airlines, San Antonio Office of Emergency Management, Red Cross, Bexar County Medical Examiner’s Office, and the Texas State Department of Health Services. The CDRP exercises are not mandated but are important to refine and

Additional educational opportunities included FAA Wildlife Training for SAT Operations, Maintenance and Safety Divisions. The Division also conducted four First Aid and AED Training courses for staff and have several courses scheduled for 2013.

EMERGENCY TABLE TOP In October 2012, San Antonio International Airport staff completed an FAA mandated Table Top Exercise for an annual review of the Airport Emergency Plan and Airport Security Program. The exercise was conducted at the San Antonio Office of Emergency Management Operations Center / Emergency Operations Center and included representatives from the San Antonio International Airport, FAA, air carriers, air cargo carriers, Transportation Security

update the plan, as well as educate, train and prepare first

The Safety Division is also responsible for the airport’s Safety

Administration, air-taxi operators of aircraft over 12,500

responders in dealing with communicable disease threats.

Management System (or SMS). SMS is the formal approach

pounds, airport tenants, local mutual aid agencies and other

to managing safety risk. It includes a systemic approach to

federal agencies, all of which would be involved in case

managing safety and includes the necessary organizational

of airport emergencies. The exercise simulated two bomb

structures, accountabilities, policies and procedures. SAT

incidents at the airport, one incident involving the terminal

was one of the first airports to implement SMS.

areas and one involving an air cargo aircraft.

WILDLIFE HAZARD ASSESSMENT The Safety & Wildlife Division at San Antonio International Airport completed a Wildlife Hazard Assessment and Wildlife Hazard Management Plan in 2012, as required by the Federal Airport Administration (or FAA). The assessment

RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE

San Antonio Airport System 2012 Fiscal Year Financials SUMMARY: SAN ANTONIO AIRPORT SYSTEM FUNDING SOURCES & FINANCIAL RESULTS The San Antonio Airport System’s general operating and maintenance budget is supported through self-generated revenues such as concessions, parking, tenant rentals and user fees. In addition to self-generated revenues, the San Antonio Airport System Capital Improvement Program (or CIP) is funded through the Passenger Facility Charge (or PFC) , the Customer Facility Charge (or CFC) , tax-exempt General Airport Revenue Bonds (or GARBs), airport revenue bonds ( including PFC-backed bonds) and federal and state grants. The city of San Antonio General Fund does not contribute funding to the Airport System. Total airport-generated revenues for fiscal year 2012 (October 1 through September 30) were $90,163,733, an 8.25% increase over fiscal year 2011. Total airport operating and maintenance expenses for fiscal year 2012 were $47,048,746, a 5.77% increase over fiscal year 2011. Net revenues came to $43,114,987, an 11.10% increase over fiscal year 2011. Net revenues are used to pay debt service and the Airport System’s Capital Improvement Program (or CIP).

PASSENGER FACILITY CHARGE The Federal Aviation Administration (or FAA) approved the City’s initial PFC application on August 29, 2001. At that time, the city received authority to impose a $3.00 PFC. The FAA later approved a collection increase to the current $4.50 PFC effective October 1, 2007. The City has received PFC “impose and use” authority for the San Antonio International Airport (or SAT), which means it may impose the PFC and use PFC revenues to fund eligible contemplated projects at SAT using the funds on a pay-go basis or to support PFC bonds. These funds have been used for such projects as construction of the new Terminal B, extension of the dual-level roadway, upgrades to the Central Utility Plant and Runway 21 Extension Project. PFC revenues are currently being used for Terminal A renovations, purchase of Passenger

Boarding Bridges, Residential Acoustical Treatment Program (or RATP) projects and Terminal Area Taxiway Rehabilitation Program. PFC funds are also used to cover FAA grant-match requirements. During FY 2012, a total of $16,278,454 in PFC revenue was collected.

FAA AIRPORT IMPROVEMENT PROGRAM GRANTS Bonds provide partial or total funding for certain projects included in the CIP. The federal Airport and Airway Trust Fund provides grant dollars for CIP projects at SAT through its participation in the FAA Airport Improvement Program (or AIP). Entitlement and discretionary AIP grant funds are used for eligible airport development, airport planning and noise compatibility program projects. All grants require Airport Fund matching dollars to implement CIP projects. Grants from the AIP awarded to SAT totaled $10,295,941 in FY 2012. SAT also received a reimbursement grant in an amount not to exceed $14,385,466 from the U.S. Department of Homeland Security through the American Recovery and Reimbursement Act for construction of the airport’s new consolidated Baggage Handling System. Reimbursement under this grant for FY 2012 totaled $622,063. The amount represents the final reimbursement under this grant.

CUSTOMER FACILITY CHARGE On March 8, 2012, City Council authorized the creation of a Customer Facility Charge (or CFC) in the amount of $4.50 per contract day on rental car transactions at SAT. The CFC will be used to finance rental car facilities, including a Consolidated Rental Car facility at SAT. The Consolidated Rental Car facility was recommended in SAT Master Plan-Vision 2050, which was approved by City Council in March 2011. This fee is a financial tool to allow the Airport System to raise funds related to the planning, design and construction of rental car facilities. CFC collections began in April 2012 with a total of $4,524,984 earned during FY 2012.

TXDOT GRANTS & STINSON AIRPORT REVOLVING FUND The city’s Aviation Department has been coordinating with the Texas Department of Transportation (or TxDOT) in the grant-funded development of the Stinson Municipal Airport (or SSF). TxDOT grants totaled $316,041 in FY 2012. SSF funding sources include Airport System self-generated funds that are allocated to the Stinson Airport Revolving Fund. These funds provide the match for TxDOT grants. The Revolving Fund received $500,000 during FY 2012, and stands at $2,578,527.

CAPITAL IMPROVEMENT PROGRAM The $422,142,000 Airport System CIP budget, which was approved by the City Council for the FY 2012 through 2017, permits a phased implementation of new and upgraded facilities and airfield infrastructure at the SAT and SSF. Under this six-year CIP budget, SAT was designated at $412,528,000 and SSF was allotted $9,614,000. The total CIP budget for FY 2012 was $88,692,000, with $85,708,000 designated for SAT and $2,984,000 allotted to SSF. During FY 2012, $12,727,993 in FAA and TxDOT grants (both funded through the AIP grants program) from the current and previous years were spent on eligible projects at SAT and SSF. Airport matching funds totaled $3,666,941. These projects included:

PROJECTS Airfield Improvements

$21,333,000

Consolidated Rental Car Facility

$18,000,000

Information Technology

$12,329,000

Residential Acoustical Treatment Program

$11,250,000

Stinson Terminals Other Projects TOTAL

BUDGET IN FY 2012

$2,984,000 $18,003,000 $4,793,000 $88,692,000

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE

San Antonio Airport System 2012 Fiscal Year Financials STINSON MUNICIPAL AIRPORT-TXDOT GRANT PROJECTS The city’s Aviation Department has been coordinating with TxDOT in the grant-funded development of the Stinson Airport Traffic Control Tower Project. This project will include design and construction of a new air traffic control tower at SSF for the purpose of eliminating anticipated line-of-sight issues that will occur with future airport development. Construction is projected for completion in 2015, pending availability of funding.

PROJECTS Residential Acoustical Treatment Program (RATP) Extension of Runway 21 & Taxiway N Project Safety Management Systems (or SMS) Pilot Study

On August 18, 2011, City Council accepted a grant in the amount of $270,000 from TxDOT to initiate the Stinson Air Traffic Control Tower Project starting with an environmental assessment and preliminary design. The Council action also authorized the expenditure of matching funds from the Stinson Revolving Fund in the amount of $30,000. TxDOT will oversee the development of the project from design through construction. A March 8, 2012 City Council ordinance authorized reimbursement of up to $50,000 from TxDOT under the Routine Airport Maintenance Program (or RAMP) for the replacement of the roof on city-owned Hangar 4. The City will oversee this project with the state agency reimbursing up to $50,000 to the Airport System after the work is completed.

RATING AGENCIES AFFIRM SAT BOND RATINGS Fitch Ratings, Moody’s Investors Services, Inc. and Standard & Poor’s (or S&P) Ratings Services each assigned ratings to San Antonio’s issuance of $70.22 million Series 2012 General Airport System Revenue Bonds (or GARBs) bonds and $25.98 million series 2012 Passenger Facility Charge (or PFC) subordinate lien bonds. Both series of bonds were issued to refund a portion of the City’s outstanding GARB and PFC bonds respectively. In addition, the agencies affirmed their ratings on the City $240.4 million outstanding GARBs and $165.9 million PFC subordinate lien bonds.

FAA GRANT FUNDS $ 6,908,680

$1,727,170

$ 5,494,457

$1,831,486

$118,056

$39,352

Airfield Lighting Project

$58,292

$19,431

SAT Master Plan Update

$132,440

$44,147

Stinson RAMP Project

$46,040

Wildlife Hazard Assessment

$29,217

$7,304

$12,787,183

$3,714,930

TOTAL

Fitch, Moody’s and S&P have rated the 2012 GARBs “A+” (stable outlook), “A1” (stable outlook), and “A+” (stable outlook), respectively, and the 2012 PFC bonds “A” (stable outlook), “A2” (stable outlook), and “A-“ (stable outlook), respectively. Fitch affirmed the ‘A+’ rating on the City’s $240.4 million outstanding GARBs and the ‘A’ rating on the $165.9 million PFC subordinate lien bonds. S&P affirmed its ‘A+’ long-term and underlying ratings on San Antonio’s Airport System GARBs and affirmed its ‘A-‘ longterm rating on the PFC and subordinate-lien airport parity bonds. Moody’s affirmed the ‘A1’ rating for outstanding GARBs and ‘A2’ rating of PFC and subordinate lien bonds, with the outlook for both liens changed to stable from negative. Key rating drivers included: 1. Diverse air carrier mix supported by growing and diversifying local economy, low unemployment and a growing population.

AIRPORT MATCH

and resilient passenger levels through the economic downturn and recovery (1.2% enplanement increase in 2011) and a projected annual growth rate that management anticipates will range from 2.0% to 2.5% from 2012-2016.

New five-year Airline Use and Lease Agreement through 2015 that provides stability, financial visibility and overall flexibility to the Airport System

4. Conservative debt structure

5. Historically stable but improving financial performance 6. Limited capital program with no future GARB or PFC borrowing planned.

2. Strong origin and destination (O&D) market

RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE

Comparative Fiscal Year Statement Gross Revenues And Expenses OPERATING REVENUES

FY2011**

FY2012**

$ 8,664,750

$ 9,266,975

% CHANGE

Non-scheduled Carrier Landing Fees

FY2011**

FY2012 ** $

% CHANGE

Airfield Area

$ 2,189,071

***

6.95%

Service Area

291,297

*** ***

Airline Revenues Scheduled Carrier Landing Fees

OPERATING & MAINTENANCE EXPENSES *

1,446,665

1,570,581

8.57%

Terminal B

3,414,755

19,007,289

16,550,453

-12.93%

Terminal A

4,857,592

***

600,585

1,562,989

160.24%

Fire & Rescue

$4,433,517

4,694,290

5.88%

Ramp Fees

2,109,150

2,728,096

29.35%

Access

728,766

***

Baggage Handling System Charges

5,105,855

2,438,722

-52.24%

Central Plant

609,264

***

782,666

297,011

-62.05%

Commercial & Industrial

78,246

***

1,118,592

***

Other Buildings & Area

25,532

***

37,716,960

35,533,419

-5.79%

3,629,456

3,541,257

-2.43%

Concession Contracts

16,776,304

18,603,922

10.89%

Parking Fees

Terminal Building Rentals FIS Space Fees

Passenger Loading Bridges City Gate Fees Subtotal Airline Revenues Non-Airline Revenues

Parking Stinson Airport

641,799

658,596

2.62%

Administration

10,577,136

12,081,007

14.22%

19,319,267

19,999,670

3.52%

Facilities Maintenance

1,823,892

8,617,127

372.46%

Property Leases

7,697,458

7,533,494

-2.13%

Security

5,813,629

6,272,464

7.89%

Stinson Airport

401,957

372,843

-7.24%

Operations

1,228,199

1,280,662

4.27%

General Aviation Fuel

593,364

597,077

0.63%

Ground Transportation

723,263

***

Interest Income

186,599

211,455

13.32%

Environmental Stewardship

807,744

528,018

-34.63%

Other Revenues

Airport Safety/Wildlife Programs

596,897

901,456

51.02%

301,190

454,582

50.93%

RON Fees

977,854

***

Baggage Handling System

2,250,199

***

Transfer From Other Funds

5,432,543

***

Passenger Loading Bridges

55,617

***

$45,571,846

$54,630,314

19.88%

Airside & Landside Maintenace

2,970,794

***

$83,288,806

$90,163,733

8.25%

Custodial & Terminal Services

4,994,179

***

Fleet Maintenance

955,770

***

OPERATING & MAINTENANCE EXPENSES

$44,480,164

$47,048,746

5.77%

NET REVENUES

$38,808,642

$43,114,987

11.10%

Subtotal Non-Airline Revenues TOTAL GROSS REVENUES

Gross revenues for FY 2012 totaled $90,163,733, an increase of $6,874,927 or 8.3% when compared to the prior year. This increase is attributable to several factors. First, non-airline revenue increased by $9,058,468 or 19.9%. Over $5 million is due to the new transfer in from the Airport’s Capital Improvement Fund. This transfer is due to the new airline agreement implemented in FY 2011. The Airline Refund calculation from the prior agreement was replaced by a prior year debt service coverage refund and a Competitive Credit Allocation to the airline’s terminal rental rates. As a result, rather than the airlines receiving an airline refund credit that was treated as a reduction of revenue in the current fiscal year, this new method allows for the “credit” to be applied to the terminal building rental rates and landing fees in the next fiscal year. The transfer in is a mechanism to ensure that yearly revenue collections meet all City Covenants and agreements. Second, concession contract revenue increased $1,827,618 or 10.9%. This is due to the collection of new revenues for common area maintenance, trash pickup and marketing within the Airport’s concessions management program. The concessions management program was previously administered by a professional services contract. The contractor handled the collection of these fees from each concessionaire and incurred the expense associated with these fees. Since the contract ended in FY 2011, the Airport took over the management of the concessions program and began to collect these revenues and pay for any related expenses. Additional revenue increases within the concessions program are attributable to having a full year of revenues from the new concessionaires in Terminal B, as well as increases in passenger traffic. Car rental revenues also increased due to changes in the minimum annual guarantee, as well as increases in passenger traffic. Other revenues have increased by $304,559 or 51%. This is due to the change in the Airport allowance for receivable collection percentage, as well as the collection of the Airport’s Taxicab Permit fees, which were previously credited to the City’s Police Department. Finally, through a revenue enhancement effective in FY 2012, the Airport’s Remain Overnight (or RON) aircraft parking fees were revised based on aircraft weight, which led to an increase in revenue.

Finally, although gross revenues increased overall, Airline revenue decreased by $2,183,541 or 5.8%. This is due to fewer terminal building rental revenues as FY 2012 saw the implementation of a competitive credit that was not present during FY 2011.

Total expenditures increased from $44,480,164 in FY2011 to $47,048,746 in FY2012, up $2,568,582 or 5.8%. Of this increase, $1,063,636 is due to increases in salary & benefit charges enacted through the City’s budget process for Cost of Living Adjustments (or COLA), mandated step pay plan increases and performance pay increases. Within the Administration category, expenses increased due to higher advertising expenses related to the Air Incentive program, new principal and interest payments related with the Airport’s Master Lease for energy conservation projects and an increase in insurance charges. FY2012 saw the implementation of a new cost center structure for the Airport System. To better align operating budgets with airport division responsibilities, new cost centers were created and others deleted for FY2012. For example, old terminal and facility cost centers were removed and any expenditures within these areas are now expensed in areas such as Facilities Maintenance, Custodial & Terminal Services, Airside/Landside Maintenance and Fleet Maintenance. Overall, gross revenues exceeded operating expenses and resulted in net revenues before debt service totaling $43,114,987, an increase of 11.1% when compared with FY2011. Net revenues are used to pay debt service and fund Airport System Capital Improvement Projects. *The Airport’s cost center structure was reorganized for FY2012. As a result, new cost centers were created and others deleted to better align the Airport’s budget to areas of control within each operational division of the Airport System. **Fiscal years run from October 1 through September 30. ***Percent Change Not Applicable

REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH RESTORE RENOVATE REVITALIZE RENEW RENOVATE REINVENT REFRESH REGENERATE REVIVE RESTORE RENOVATE

San Antonio Airport System 2012 Fiscal Year Financials Enplaned PAX

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

500,00

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003 1MM

1.5MM

2MM

2.5MM

3MM

3.5MM

4MM

4.5MM

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$10MM

$15MM

$20MM

$25MM

$30MM

$35MM

$40MM

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

$90,163,733 $83,288,806 $64,045,889 $62,180,333 $65,187,888 $56,682,447 $52,785,593 $47,180,690 $44,763,847 $43,050,986 $-

$20.00

$25.00

$10MM $20MM $30MM $40MM $50MM $60MM $75MM $80MM $90MM $100MM

$6.00

$8.00

$10.00

$12.00

$10MM

$10.00

$12.00

$14.00

$16.00

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

$1.80

Parking Revenue per EPAX FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$20MM

$8.00

$1.60 $1.50 $1.46 $1.40 $1.44 $1.51 $1.37 $1.29 $1.34 $1.39 $0.00

$14.00

$54,630,313 $45,571,846 $41,566,672 $41,012,105 $44,539,050 $43,205,785 $40,609,263 $33,736,138 $30,023,262 $28,350,031 $-

$6.00

Retail Concession Revenue per EPAX

Non-Airline Revenue FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$4.00

60.6% 54.7% 64.9% 66.0% 68.3% 76.2% 76.9% 71.5% 67.1% 65.9% 0.0%

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003 $4.00

$2.00

Non-Airline Revenue Percent of Total

$5MM $10MM $15MM $20MM $25MM $30MM $35MM $40MM $45MM $50MM

$2.00

$13.34 $11.23 $10.40 $10.42 $10.69 $10.78 $10.20 $9.27 $8.77 $8.69 $0.00

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$11.49 $10.96 $9.98 $10.10 $9.98 $8.13 $7.40 $7.26 $7.06 $7.73 $0.00

$9.00 $10.00

Operating Revenue FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$15.00

Operating Expenditures per EPAX FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$8.68 $9.30 $5.63 $5.38 $4.96 $3.36 $3.06 $3.70 $4.31 $4.76

$0.00

$10.00

$47,048,746 $44,460,164 $39,873,764 $39,743,093 $41,585,794 $32,583,696 $29,471,313 $26,411,104 $24,164,078 $25,234,410 $-

Airline Cost per EPAX FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$5.00

Operating Expenditures

$35,533,420 $37,716,960 $22,479,217 $21,168,228 $20,648,838 $13,476,662 $12,176,330 $13,444,552 $14,740,585 $15,529,368 $5MM

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$22.02 $20.53 $16.03 $15.80 $15.65 $14.14 $13.26 $12.97 $13.08 $13.19 $0.00

Airline Cost

Non-Airline Revenue per EPAX

Operating Revenue per EPAX

4,094,391 4,057,221 3,995,323 3,934,484 4,166,452 4,008,063 3,980,306 3,637,603 3,422,794 3,264,245

FY2012 FY2011 FY2010 FY2009 FY2008 FY2007 FY2006 FY2005 FY2004 FY2003

$30MM

$40MM

$50MM

$60MM

$4.88 $4.76 $4.30 $4.20 $4.14 $4.18 $3.84 $3.60 $3.34 $3.28 $0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

Aviation Department Staff and Community Volunteers Aviation Employees Angela Acosta Kenneth Adame Manuel Adames Ricky Adames Antonio Aguilar Roger Aguilar Christopher Aldrich Edward Alford Dustin Allinger Michael Almendarez Carlos Alonzo Desiree Alonzo Danny Alvarez Marisol Amador Miguel Amador Kathy Anderson Hector Aragon Juan Arango Arturo Arispe Juan Arreola Dennis Atkinson Dean Babcock Pablo Barrera Kenneth Barrett Ruben Barros James Baswell Heather Bauer John Behrendt Teresa Bermea Gerard Blanco Jon Blanks Collis Boone Richard Brashear Lisa Brice Lisa Brown Michael Brozovic Michael Buecher Michael Burkowski Mary Caballero Luis Cabrera Michael Canion Miguel Cano Martha Cantu

Luis Cardenas Gregory Carson Shawnna Caruso Joe Casiano Zoilo Castano Angelita Castillo Michael Castillo Eusebio Castillo Jr. Mary Castro Nora Castro Cheryl Caylao Christina Cervantes Gloria Cervantes Robertfred Cervantes Santos Cevallos Stephanie Chapa John Chase Diana Chavez Kao Lin Chen Loyce Clark Cora Clay Frederick Clements Virgina Cobarrubias John Coggins Kimberly Coleman Diane Cook Ramon Cordova Sofia Coronado John Cortez Jason Cosby Gary Cramer Cordelia Cruz Jessica Cruz Eulalio Cuevas James Cundiff Vickie Curtis Darryl Curvin Chieu Dang Glen Davis Mercedes Davis Maria De la Cruz Robert De la Garza Philip De la Rosa Xavier De Leon Gerardo De los Santos Modesto De los Santos Roxanne del Castillo Daniel Delgado

Daniel Delgado Francisco Delgado Shana Dewey Mark Diamond Alba Diaz Steven Diaz Debra Drew Monica Duck Lydia Elmore Ellen Erenbaum Guadalupe Esparza Rosa Esparza Hector Espinoza Irene Esquivel Dorothy Estrada Cornell Evans Joel Fernandez Melisa Fiorelli Johnny Fisher James Florance Francisco Flores Reynaldo Flores Ricardo Flores Christina Foley Judy Fordyce Denise Foster Nicole Fowles Dawson Frank Eric Fubara John Gallo Gregory Galloway Alejandro Garcia Carlos Garcia David Garcia Felipe Garcia Frank Garcia Joe Garcia Jose Garcia Maria Garcia Michael Garcia Teresa Garcia Irma Gardner Susan Garrison Eusebio Garza Gloria Garza Laila Garza Sandra Garza Louis Gatica

George Gavia Karl Geyer Roland Gloria Robin Goddard Sara Goff Jose Gomez Martin Gomez Michael Gomez Sandra Gomez Irene Gonzales Joseph Gonzales Pete Gonzales Betty Garcia Gonzalez Edvin Gonzalez Jorge Gonzalez Juanita Gonzalez Amalia Gorena-Bullis Richard Griffin Leonor Grimaldo-Hargis Mary Alice Guedea Yvette Guerra Linda Gutierrez Matthew Hahn Bryant Hall Cynthia Hallmark Barbara Hardy Fostyr Harkins Walter Haynie Susan Heck Agustin Hernandez Maria Hernandez Mario Hernandez Michael Hernandez Nestora Hernandez Antonio Herrera Edward Herrera Carmen Hill Barbara Hitchcock Richard Hocott Rebecca Horan Clarence Houston Melisse Hoyer Robert Hughes Christopher Jackson Alejandro Jimenez Liqun Jin James Johnston Robert Jolly

Laura Jones Robert Jones Autumn Jungman Eric Kaalund Craig Kehler Kimberly Kennedy Curtis Klaerner Dean Kloss John Kokesh Lisa Kuykendall Isabelo Laboy Brandon Laskowski Jose Ledesma Jose Ledesma Richard Ledezma Brian Legacy Dwight Levy Dee Lim Alfred Lira Christopher Long Alfonso Lopez Andres Lopez Nicolas Lopez Raymond Lopez Jr. Marcus Machemehl Lasonya Madison Tamera Marberry Morris Martin Suzanne Martin Chalene Martinez Daniel Martinez Jesse Martinez Juan Martinez Linda Martinez Mark Martinez Robert Martinez Rosa Martinez Daniel Martinez de Escobar Maria Mata Flacia Mayes Dustin McCloud Carolyn McKee Mark McCarthy Richard McCumbers Steve Meinecke Michael Mejia Jose Menchaca Jesse Mendez

Gabriel Mercado Jordan Mergele Steven Milburn Frank Miller Samuel Miranda Yvonne Mireles Maria Montana Johnny Morales Jose Morales Julio Morales Stan Motz Ofelio Muniz Juan Munoz Mark Nava Timothy Oâ&#x20AC;&#x2122;Krongley Angel Olivares Carlos Olivares Mucia Ortiz David Ozuna Frank Padilla Robert Paris Paul Parisi Raymond Parrish Patrick Patton Raymond Perales Arnulfo Perez Gina Perez Peter Persha Thomas Petsch James Piche Jackie Plata Jerry Ploch Michael Ploch Michael Pollog Nathaniel Polsgrove George Ponce Kenneth Powers Barbara Prossen Arthur Ramirez Claudia Ramirez Irene Ramirez Louisa Ramirez Luis Ramirez Raul Ramirez Ricardo Ramirez Veronica Ramirez Maricela Ramirez-Garcia David Ramos

Jose Ramos Jose Ramos Rosalinda Ramos Gabriella Rauschuber James Rea David Earnest Reed Richard Reeves Christopher Reininger Sylvia Rendon David Reyes Sandra Reyes Sofia Reyna Ricardo Rivera Michael Rivers Jason Roberds Shameka Roberts Ernestine Robinson Andres Rocha Ryan Rocha Abel Rodriguez Armando Rodriguez Cipriano Rodriguez Henry Rodriguez Irma Rodriguez Johanna Rodriguez Mark Rodriguez Michael Rodriguez Monica Rodriguez Rodrigo Rodriguez John Romero Cheryl Rowell Patricia Ruiz Susan Saint Cyr Rene Salas Roberto Salazar Diana Salcedo David Salinas Robert Salluce Eva Samaniego Tania Sanchez Albert Sandoval Elia Sandoval Mark Sandoval Felix San Juan Adolfo San Miguel Mary Sauceda Juan Saucedo Paul Scheel

Aviation Department Staff and Community Volunteers Wayne Schlentz Brian Schuetze Jarrard Secrest Candyce Selby Terry Shader Gregory Shadrock Margaret Shannon Eddie Shear Carol Simington John Sims Douglas Singleton Douglas Smith Linda Smith Raymond Smith Robert Solis Amar Soojhai Steven Southers Debra Stephens Annnie Stevens Mark Suehs Edward Sustaita Cheryl Swaney Russell Swosinski Guadalupe Talamantez Sergio Talamantez Roger Tamez William Telford Ashante Thomas Travis Thornton David Torres Edward Torres Juan Torres Mary Torres Oscar Tovar Barbara Trevino Javier Trevino Michael Troutman Paul Tschirhart Eugene Ulbrich Joel Urdiales Robert Urrabazo Lindal Van Meter Robert Vanburg Baldemar Vargas Hector Vasquez Melinda Vasquez Steven Vasquez David Velez

Catalina Velez Ernesto Veracruz Susan Villalobos Michael Villanueva Nelson Villegas Arely Viveros Janis Vogt Latrecia Vrooman-Hamilton Brian Walsh Wynetta Warren Anthony Weaver Russell Weinman Joyce Wiatrek Norma Williams Valarie Williams James Wingate Patricia Woitena George Wood William Wright Kathy Yehl Tonia Young Charles Zahn Maria De Lourdes ZamoraChavez Andrew Zapata Alejandro Zavala Hector Zavala Michael Zehr

Airport Ambassador Volunteers John Achilles Beverly Adkins Mickey Amacker Edna Amecucci Janet Anderson Jill Askins Jaime Baca Jim Basey Jo Basey Shirley Basham Jim Beach Susan Bell

Rudy Beltran Avis Bergh Jerry Bergh Bob Blair Jose Bonilla Douglas Boren Scharlotte Bradley Gene Brandon Sylvia Braye Hope Buonauguro Rebekah Bustamonte Betsy Cameron Stuart Cameron Dee Canamar Diana Canavan Terri Carrington Roger Carter Don Chennault Virginia Cocke Jim Creswell John Cummings Frank Dannenberg Martha Dannenberg Cristina De la Garza Jean Dekunder Joe Delpero Kay Delpero Emil Deucker Bart Diaz Carol Dickus Randy Drum Victoria DuMaurier Gordon Dunkley Shelli Dutta Rose Marie Elsner Elaine Etheridge Les Felpel Vivian Felpel Carol Fisher Bud Fisher Roland Flowers John Forbes Keith Fox Marilyn Fox Gloria French Mary Fross Rudy Garanzuay Betty Garanzuay

Hank Garcia Mary Beth Gardner Jacque Garner Barbara Garrow Margie Gavia Russ Gawrys Jackie George Bonnie Gioiello Joe Gonzales Larry Goodman Paulette Goodman Meri-Beth Graves Virginia Graygor BJ Greenwood Richard Groomes Jerry Guebard Annice Guenther Spencer Gutz Teddy Gutz Sean Habina Hank Hadigian Sally Hadigian Bryan Hall Dot Hampton Fran Hankins Mary Harder Dottie Harrison Bill Harrison Janelle Harshaw Jan Harvey John Heberling Wilma Heberling Jim Helling Marlene Hess Arthur Hill Carol Hoke Bennie Hopper Sophye Hoppie Lillian Hoting Judy Huey Norma Jean Hurtado Carol Ingham Doug Jacobson Bill Jadallah Dan Jarvis Marilyn Jarvis Jackie Jermerson Carol Johnson

Maggie Johnson Morris Johnson Nancy Jones Henry Juarez Patty Kamat Jean Karren Peggy Keesee Violet Kelly Les Kempler Greg La Hue Kempler Lee Lynne Lee Gary Leidwanger Lavelle Leinweber Dora Lemon-Vergara Gert Lewis Karen Linton Jerry Lloyd Elaine Loehlein Barbara Loomis Olga Lozano Becky Lull George Lull Susan Lundery Virginia Mabry Ken Margolis Priscilla Marrah Wendy Martinson Billie May Reva McClenny Ruth McFarland Burke McIlwain Lonnie Meggett Olga Merlo Richard Miller Mary Miller Meg Monks Michael Moran Randy Mowjeau Elvis Neie Leslie Newton Nancy Olansky Richard Olansky Paul Patterson Cati Perez-Schrinver Rudy Quintero Jerry Rankin Geneva Ray

Dave Rettinger Earline Richarson Nancy Richter Gloria Robinson Kay Rodgers Olive Roen Cher Ross Al Russomano Mary Nell Ruston Sandra Ryan Bryan Sagor Louise Sagor Frank Scalise Miguelita Scanio Marsha Scott Fae Simmons Gary Simons Christina Smith George Smith Janet Smith Dorothy Spencer Paul Sralla Temple Sralla Edna Steen James Strayer Rose Sullivan Patsy Swenson Cynthia Thompsin Wally Thurston Brenda Tobey Bob Trott Irene Urgate Margarethe Valois Maggie Vargas Claudia Vargas Delia Vega Darryl Veldhuizen Bob Walker Debbie Walsh Jack Watson Ed Wells Barbara Whisenant Larry Whisenant Mary Wilke Gary Wilke Rodney Williams Rosalie Wolf Dennis Wolf

George Workman Olen Yarnell Jennifer Young Jim Youngson Molly Zembrowski

Volunteers Airport Policing Joe Berrong Steve Brown Scot Campbell Lowell Cornelius Jim Davidson Isidra Davis Paul Dee Carol Dickus Cleveland Edens Joshua Garcia Joe Gonzales Anthony Grauzer Ed Greer Dennis Gurtner Juan David Gutierrez Joyce Habina Jose Ibarra Peggy Keesee Elaine Loehlein Leo Lorenzo George Lull Ronald Martel Paul McCombs Richard Meuse James Shelton Gary Simons Sichan Siv Steve Spear Eleanor Sprowl George Stevenson Donald Taubert Wally Thurston Irene Ugarte Thomas Vanderhoof Hubert Verschoyle Charlotte Warmowski William Weston

City of San Antonio Aviation Department 9800 Airport Boulevard | San Antonio, Texas | 78216-9990 210.207.3450 | Fax 210.207.3500 www.sanantonio-airport.com