# Presentation: 115028

## AIRPORT PLANNING & FINANCING IN UNCERTAIN TIMESTHE GOOD, THE BAD, & THE UGLY

- Linda Howard
- TxDOT Aviation Division

## Texas is BIG!

## Importance of the Texas Airport System

- Link to national transportation system
- Connects rural & urban populations
- Provides 700,000 jobs
- Generates $41 billion annually

**Notes:**
It provides the link to the National Transportation System and as such, is vital to the state’s economy.

The aviation system in Texas, for example, generates 650,000 jobs and annually contributes $50 billion to the state’s economy, making it an important economic engine.

So, what exactly IS the Texas Airport System? 

## Texas Airport System 

- Texas** **Airport System** **

## What is the Texas Airport System?

- 300 Airports & 3 Heliports
-  27 Primary Commercial Service
-  23 Relievers
-  250 General Aviation Non-Relievers
-  3 Heliports

**Notes:**
The Texas Airport System consists of 300 airports and 3 heliports, of which 27 are primary commercial service, 23 are relievers, and 250 are general aviation non-relievers. 

The bulk of the airports of the airports in the system are general aviation airports. General aviation is everything that is not scheduled passenger service or military activity and accounts for the majority of civil aircraft operations. It encompasses everything from crop dusting in small aircraft to cargo charters in the largest aircraft. It includes 98 percent of all registered civil aircraft and 95 percent of all airports nationwide. 

General aviation activity does occur at commercial service airports, but most of the nation’s airports are specifically dedicated to general aviation.

Almost all of the airports in the Texas airport system are owned and operated by public entities such as cities and counties. TxDOT’s primary responsibility is directed toward the 273 non-commercial service airports.

## Texas Based Aircraft2000-2005

## AIP Authorization vs Appropriation(billions)

## State & Federal Funding Trends(millions)

## The Good	

- Multi-year funding
- Full appropriation
- Increasing general aviation activity
- System wide improvement
- Increased sponsor interest

## Before

## Before

## Now

## Now

## Recent Terminal Buildings

## Recent Air Traffic Control Towers

-  Arlington Municipal
-  Conroe (Montgomery
-    County)
-  Denton Municipal
-  Ft. Worth Spinks
-  Galveston Scholes
-    International
-  Sugar Land Municipal
-    (Hull Field)

## AWOS 

## The Bad

- Declining air service to small communities
- Airline instability
- Inadequate funding for non-hubs
- Cancellation of approaches
- Earmarks
- Competing priorities at the local level

## The UglyProposed 2006 AIP Budget

- AIP appropriation reduced by $600M
- EAS funding reduced to $50M
- Funding for SCASD program eliminated
- F&E budget reduced by $77M
- NPE program eliminated
- GA set-aside reduced from 20% to 18.5%
- Security ticket tax increased
- Federal share of contract tower program eliminated

## Hedging Our Bets

- Education
- Planning
- Investment
- Management

## Education

- Link to world
- Economic generator
- Social contributions
- Essential part of infrastructure

## Planning

- Develop vision/focus
- Recognize system role
- Develop dynamic strategic plan
- Develop strong financial plan
- Anticipate change

##  Investment	

- Maintain current infrastructure
- Identify funding sources & alternatives
- Identify and focus on target markets
- Develop revenue-producing facilities
- Look beyond airport boundaries

## Management

- Develop organizational relationships
- Manage investment for optimum return
- Assess and manage risk
- Communicate

## “The overall object is to plan, manage, and design airports so that they can respond flexibly to the unknown, uncertain future conditions.” *

- *AIRPORT SYSTEMS PLANNING, DESIGN & MANAGEMENT
- Richard de Neufville / Amedeo Odoni

## Questions?