# Newark Liberty International Airport Flight Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2014 to December 31,2014

Public Aircraft Facilities Charge Factor Major Elements of Costs: (a) Fixed charges on Port Authority Investment in Public Aircraft Facilities. (b) Direct labor, materials, payments to contractors and suppliers, costs charged to: 1) The Emergency Service functions at the Airport (whether performed by the Airport Police Section or other section or other Port Authority organizational unit or units as may hereafter perform the same or similar functions). 2) Other costs for the operation, maintenance, repair and replacement of Public Aircraft Facilities, and the pro-rata share of the cost of snow and ice removal.
Airport Services Charge Factor Major Elements of Costs: (a) Fixed charges on Port Authority Investment in Airport Services. Total

(b) Direct labor, materials, payments to contractors and suppliers and other costs for operation, maintenance, repairs and replacements charged directly to Airport Services, and the pro-rata share of the cost of snow and ice removal; excluding such costs charged to Port Authority non-revenue producing areas. (c) Direct labor, materials, payments to contractors and suppliers and other costs charged directly to Policing and Traffic functions at the airport. (d) Labor charged directly to the Airport Manager's Office.

Phase 1A Charge Factor Major Elements of Costs: Total $28,350,437

24,516,912 53,909,229 

## $106,776,578

$45,247,296

21,932,813 27,333,243

3,091,000 

## $97,604,353

(a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Perfomnance Bonds; 3) insurance premiums or charges; 4) direct payroll & expenses of Port Authority employees & agents engaged in performance of the work. (b) Engineering Services including: 1) payments to independent consultants & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 10% liquidated overhead. (e) Financial expense.

Monthly Multiplier 

## = Total Phase 1A Costs Less: PFC Funds Net Phase 1A Investment
0.007481 $87,661,094 (50,000,000) 

## $37,661,094

Cumulative Phase 1A Cost $37,661,094 x 0.007481 X 

## 192 months 

## = $54,094,588 Less: 2013 Cumulative Phase 1A Charge Factor Annual Phase 1A Cost (50,713,676) 

## $3,380,912

# Newark Liberty International Airport Flight Fee Calculation (Continued) Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2014 to December 31, 2014

Maximum Take-off Weight: Total Maximum Weight for Take-off of all aircraft using the airport except such aircraft as are not required to pay a flight fee such as government flights, etc. Acreage: Total annualized sum of Revenue Producing Land Total Developed Land Area at the airport occupied by the Public Aircraft Facilities. Percentage 

## Public Aircraft Facilities Charge Factor $0.3130 X 

### $106,776,578 X 

### 17,734,000,000 $4,010,000 32,117,331,537 

## Airport Services Charge Factor 32,117,331 ,537 lbs.

1, 722.707 acres 1,016.311 acres

58.995%



# =

$0.3370 X 

### $97,604,353 X 

### 17,734,000 000 X



### _ __,5"8."'9"'9"'5'.!!%,___ 

## = 66.47% $4,625,000 32,117,331,537 

## Phase 1A Charge Factor

Aircraft Parking Credit $3,380,912 X 

### 1,722.707 1,016.311

___**!:A~ir,;,c~ra~ft;!P~a~rk,.i~ng~R~e;_;ve'"n~u~e,__** 

### __ 

## = $6,005,713 Total All Aircraft Weight 32,117,332 

## Over/Under Reported Amounts From Prior Years Over/Under Amounts from Prior Years 

## =**-=~Oc,-,-~-** 

### Total All Aircraft Weight 32,117,332 

## Flight Fee
Public Aircraft Facilities Charge Factor Airport Services Charge Factor Phase 1 A Charge Factor Subtotal Aircraft Parking Credit Over/Under Reported Amounts
2014 

## Flight Fee $4.5900 3.4733 0.0621 8.1254 (0.1870)

$7.94 X

# -=~1==-- = 32,117,332



## = $4.5900

$3.4733

$0.0621

($0.1870)

$0.0000

# Newark Liberty International Airport Monorail Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2014 to December 31, 2014

Initial Construction Factor Monorail Construction Costs: (a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Performance Bonds; 3) insurance premiums or charges; 4) direct payroll & expenses of Port Authority employees & agents engaged in performance of the work. (b) Engineering Services including: 1) payments to independent consultants 

## & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 

## 10% liquidated overhead. (e) Financial expense. Total Monorail Construction Costs Less: PFC Funds 

## $390,171,821 (1 00,000,000) Initial Net Capital Investment 

## $290,171,821
Monorail Commencement Date: May 

## 31, 1996 Cumulative Initial Construction Factor Less: Cumulative Initial Construction Factor 

## (1996-2013) Annual Initial Construction Factor


## 2014 Additional Construction Factors Northeast Corridor Extension (Original NEC) Additional Monorail 

## I NEC Investment Mid-Life Overhaul Annual Additional Construction Factors
Annual Operating Cost Factor

(a) Direct labor, materials, insurance, payments to contractors & suppliers, utility purchases & other costs for the operation, maintenance, & repair of the system. (b) Less: Rental car 

## Bus Service NEC Farebox Revenue Credit Subtotal (c) Liquidated overhead 

## 15% Annual Operating Cost Factor
Annual Monorail Cost
Maximum Passenger Take-off Weight: Total Maximum Weight for Take-off of all passenger aircraft using the airport.


## 2014 Monorail Fee 

## $66,210,430 28,775,847 28 775 847 lbs. 

## $2.30 $466,054,247 (439,548,792) $26,505,455
$10,734,676

9,376,557 4,987,593 $25,098,827

$27,911,594

(6,670,029)

(500,000) (8,040,568) 12,700,998

1 ,905,150 $14,606,148 $66,210,430

# Newark Liberty International Airport Underground Fuel Distribution System Gallonage Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2014 to December 31, 2014

System Charge Component Major Elements of Costs:

(a) Fixed charges on Port Authority Investment in the Fuel System. (b) Direct labor, materials, payments to contractors and suppliers (other than the contractors referred to in subdivision (c) below), other costs for operation, maintenance, repairs and replacements charged directly to the Fuel System, and the pro-rata share of the cost of snow and ice removal. (c) 105% of the contract amounts paid or payable to any independent contractor who shall have operated the Fuel System.
Airport Services Charge Factor Major Elements of Costs:

(a) Fixed charges on Port Authority Investment in Airport Services. Total

(b) 

## Direct labor, materials, payments to contractors and suppliers and other costs for operation, maintenance, repairs and replacements charged directly to Airport Services, and the pro-rata share of the cost of snow and ice removal; excluding such costs charged to Port Authority non-revenue producing areas. (c) Direct labor, materials, payments to contractors and suppliers and other costs charged directly to Policing and Traffic functions at the airport. (d) Labor charged directly to the Airport Manager's Office.

Phase 1 A Charge Factor Major Elements of Costs: Total $5,263,711

934,185 29,490,519 

# $35,688,415

$45,247,296

21,932,813 27,333,243

3,091,000 

# $97,604,353

(a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Performance Bonds; 3) insurance premiums or charges; 4) direct payroll & expenses of Port Authority employees & agents engaged in performance of the work. (b) 

## Engineering Services including: 1) payments to independent consultants & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 1 0% liquidated overhead. (e) Financial expense.

Monthly Multiplier 

# = Total Phase 1A Costs Less: PFC Funds Net Phase 1A Investment 0.007481 Cumulative Phase 1A Cost: $37,661,094.40 x 0.007481 Less: 2013 Cumulative Phase 1A Charge Factor Annual Phase 1A Cost x 192 months 

# = $87,661,094 (50,000,000) 

# $37,661,094

$54,094,588 (50, 713,676) 

# $3,380,912

# Newark Liberty International Airport Underground Fuel Distribution System Gallonage Fee Calculation (Continued) For the Period January 1, 2014 to December 31, 2014

Volume: Actual number of gallons of fuel delivered through the Fuel System to all aircraft at the airport.
Acreage: Total annualized sum of Revenue Producing Land Total Developed Land Area at the airport occupied

by the Bulk Storage Area. Percentage

System Charge Component $0.01304 X 

## $35,688,415

Airport Services Charge Factor $0.00046 X 

## $97,604,353 $4,625,000

Phase 1A Charge Factor $3,380,912 1,722.707
Gallonage Fee System Charge Component Airport Services Charge Factor Phase 1A Charge Factor 2014 Gallonage Fee X

X 

## $3,300,000

320,000,000 663,796,923

33.401

$0.0679

0.0055 0.0001 $0.0735 X

X

X 

## 663,796,923 Gallons

1,722.707 acres

33.401 acres 1.939%

320,000,000 

# = 663,796,923

1.94% 

# = 1.63%

1 

# = 663,796,923 $0.0679

$0.0055

$0.0001The Port Authority

of New York and New Jersey Passenger Facility Charge Program Schedule

of Revenue and Expenditures Summary

of all Airports (Jn Thousands}

Approved 2014 PFCFunding Cumulative
Other

Projects

PFC 2nd Quarter Year To Date

to Date Funding Accruals
Total Total Budget Application Total Receints

& InErest Earned LaGuardia Airport $14,152 $26,534
$885,026

$7,669 $892,695 J.F .K. International Airport

26,886 53,366 1,354,118

14,899 1,369,017 Newark Liberty International Airport
18,780 35,509 1,092,119

6,300 1,098,419 Stewart International Airport

163

339 3,388

96 3,434 - Total

$59,981 $115,748 $3,334,651

$28,964 $3,363,615 Total Exoenditures lmpose&Use LaGuardia Airport

1,376 5,304 245,794 78,241 5,305 329,340 319,244 432,243 J.F .K. International Airport

29,977 33,230 1,860,013 589,369 6,336 2,455,718 2,732,856 2,155,397 Newark Liberty International Airport
44,016 59,258 1,046,752 703,732 19,171 1,769,655 1,809,689 1,219,565 Stewart International Airport

- 4.215

4,215 5,736 5,736 Sub-total

75,369 97,792 3,156,774 1,371,342 30,812 4,558,928 4,867,525 **~812,941** Impose Only LaGuardia Airport

149,000 137,895 J.F.K. International Airport

150,000 150,000 Newark Liberty International Airport

-

61,000 56,842 Stewart International Airport Sub-total

-

-

360,000 344,737 Total

$75,369 $97,792 $3,156,774 $1,371,342 $30,812 $4,558,928 $5,227,525 $4,157,678 Total Unliquidated PFCs $177,877 Note: In May 2010, tbe Federal Aviation Administration (FAA) approved $573.4 million in PFC coliactions
for additional eligible projects.

It should be noted tbat included

in tbe $573.4 million

is a $4 million project
to upgrade the Fire Alarm System

at EWR. This project replaced

a project
at JFK that was previously approved by the FAA for impose only. In September 2010, tbe FAA approved
an Ameodment which increased PFC collections
for eligible projects by $55.4 million.
In March 2013, tbe FAA has approved, authority

to impose PFC's for five projects and partially approved seven projects (12 projects

in total) and use PFC revenue on Irine of those projects. The total approved PFC revenue

to be collected for these projects

is $571.5 million.
In July 2013, the FAA bas approved authority

to impose PFC revenue for the JFK Terminal3 Site Redevelopment

and Capacity Improvements Project and use PFC reveunue
on that project
in the amount of$215.0 mil. Summary Page

1 of1·-·--- ,_, ____
,_, --------

The Port Authorit;y
of New York and New Jersey Passenger Facility Charge Program Schedule
of Revenue and Expenditures LaGuardia Airport (tn Thousands}

Approved
PFC 2014 PFC Funding **~**
O<ha

Proj=t

PFC Funding -
.... End **2nd~**
Year To Date toD"' FtmdiDg Aoauab
ToW Total Budget Application

% -- 0... Dme PFC Roccipts

$14,133 $26,494 $824,968

$7,669 $832,637 --

19

40 60,058

60,058 ToW

$14,152 $26,534 $SS5,026

$7,669 $892,695 **~al!ital** Project E!Rtndituns lmi!OS!

& Use **P~&PI'Clim.Eog.**

$0

$0

$0 $4,924

$0 $4,924 $4,800 (b)

$0 $4,924 01/92 04/98 AGT- InitW Pblsc

7,553

7,553 7,000 (b) 7,553 (a) 100% 7,553 01/92 04/98 Sub-total Airport Access

7,553 4,924

12,477 11,800 7,553
12,477 Crisis Ccnunancl **Ccnu:OF~** Facility (ARFF)

241
705 59,204 20,864

99 80,167 71,055 (b) 61,655 79% 78,404 05103 11/11 ClB **~FcasibilitySilldy**

13,500 4,407

17,907 13,500 (b) 13,500 85% 15,866 05103 12113 CTB Modcmi2:d:ioo. Plmming

& Enginco:rina

23,000 18,045

781 41,826 23,000 23,000 61% 38,000 05103 12/13 LGA

• Bolbrds

1,054 4,371 20,800 15,997 1,116 37,913 32,511 (b) 23,537 60% 39,161 10/07 12114 LG-A

• Pc:rialetcr Sel;wity i'rojcd:

36,000 7,068 1,095 44,163 36,000 (b) 36,000
(c) 76% 47,434 12103 12114 Runway4and31 Dceks Safl:tyOvcmm

72
218 3,011 4,801 2,214 10,026 22,800 153,800 76% 202,074 02112 12117 Rmlw:J.y **~on** Project· I3J3lan<l4122

71,611 2,135

73,746 n,55o n,sso 100% rg,306 07/05 12/12 •""""""'

1,367 5,294 227,126 73,317 ___ 5_,305 305,748 276,416 389,042 488,245 Financing Cosm lmpose&Us Crms- Commaod Ccatcdl"uefigbting F;,u:ility (ARFF)

2

2 3,245 3,245 100% 3,245 05/03 11/11 CTB ModmDzoWoo. Fl'ilS!llility Stwiy

2

2 1,500 1,500 100% 1,500 05!03 12/13 CrB Madcmi2aliau R:as!llillty Pl:umiDg

& **~**

2,000 2,000 100% 2,000 05/03 12/13 LGA. """"'

1,239 **1.~9** 100% **1.~9** 10/07 12/14 LGA

• Pezirru:f.:r Se<:uri1y Project:

2,000 2,000 100% 2,000 12103 12/14 Rlmvnly

4 andJI **OWes~** Owmm

1,200 8,095 100% 1,200 02/12 12/17 &um:ay Rchabilim!ioo Projcct-13131 aDd4J22

555

555 6,450 6,450 100% 6,450 07/05 12/12 Sui>-tolal

559

559 17,634 **~529**

17,634 Opentino Costs lmpose&Use Mand:lrt:d Sel:urity C05ls

10,224

10,224 12,499 10,224 82% 12,499 11/01 09/02 PFC PlanoiogkPtcgnvnAdmiDimllion

9

10

332

332
895

895 100%
895 01/10 12/14 Snb-tolal

9 __.!Q... 10,556

10,556 13,394 11,119 **~394** Tot:alUse

1,376 5,304 245,794 78,241 **5~05** 329,340 319,244 432,243 531,750 Impose Only RlDrwey

4 and 31 Decks S:d'cty Owmm

149000 137,895 93% 1491000 02!12 12/17 Sui>-tolal

--

149,000 137,895 **~000** Tolal

$1,376 $5,304 $245,794 $78,241 $5,305 $329,340 $468,244 $570,138 $980,750 Total Unliquidated PFCs $639,232 (a) The approved PFC application combining both LGA & JFK totaled $14.0 Dlillion. (b) Total budgeted project costs r<:prcseat only the PFC eligible dollar am.ounts contained

in the PFC application apptoved

in January 2006. (<)
In Apri120 12, the FAA approved
an .Amendmeat which. increased PFC collections for LGA Perimeter Intrusion Detection Systtm projects by 28 million. LGA Page

1 of12014 PFCFunding Cmnulalive 2ndQ<w1<>" Year To Date toD"' PFC Receipts

$26,850 $53.286 $1,319,038 --·

36

80 35,080 Tot>l

$26,886 $53,366 $1,354,118 Clal!it:al ProjssJ,: Emnditnres Tmnm&tJs JFK Light Ran System Jamaica

$0

$0 $328,941 How3n! Boaoh

563,285 Central Temrinal Area

421,200 Planning

& PR:. Eng. AGT

**~** JniiW Phase

6,447 Sub-total AiJttain

1,319,873 Della T3!r4 Redevelopment Demo& Paving 26,637 26,752 71,856 Dcmn ofHangcr

12 & Building 94

750 Infrastructure Study and Prelimina:cy Design
to Aceot

4,136 JFK

- Bollards

3,330 5,518 23,n9 JFK

- Perimeter Security Project

35,500 JFK-Rehabilitation ofTaxiway

P

1,900 Planning for Ccrrtralizcd Dc-iciDg Facility

3

3

35 Reconstruction
8Ild Streogtbeoing ofT&Kiw:ays

A and

31,844 Robabilitation
and W:tdeDing ofR!W I3R-31L

124
905 218,824 Relocation and Rehabilitation ofl'axiwa¥

A and Reb

89,926 RlDlway 13L-31R Rehabilitation Project

27,097 Sub-m131

30,094 33,178 505,647 Fmancing CasU Impgse& **u~e** Demo ofHanger

12 & Building 94 1nfi:3structurc Study and Prelim Design to Accom JFK

- Bollatds JFK

- Perimeter Security Project Planniu.s: fur Centralized De-icing Facility Reconstruction
and Strengthening ofTaxiways

A and

300 Rebabilitation
and Widening ofRlW 13R-3IL Rehabilitation ofTaxi.way

P Relocation. and Rehabilit!tion ofTaxiway

A and Reh

74 Rnnway 13L-31RRehabilitation Project

662 -

1,036 The Port Authority
of New York and New Jersey Passenger Facility Cba.ge Progmm Schedule
of Revenue And Expenditures John F. Kennedy International Airport Oth ... Funding $267,525 98,658 40,066 40,065 606 -446,920 3,592 576 266 456 23,720 29,413

1 295 54,974 23,593 5,416 142,324

On Thousands) """""" $14,899 $14,899 $0 35 1,957 4,053 218 73 6,336 JFK Page

1 of2 Tot>l $1,333,937 35,080 $1,369,017 $596,466 661,943 461,266 40,085 7,053 1,766,793 75,483 1,326 4,424 26,192 63,273 31,531 36 32,139 273,871 113,519 32,513 654,307 300 74 662 1,036

Project Tot>lBodgot $840,300 485,000 (b) 509,700 31,200 (b) 7,000 (b) 1,873,200 215,000 750 5,000 57,000 35,500 (b) 1,900 950 39,700 317,754 89,926 (b) 26,354 (b) 789,834 750 3,000 9,500 50 300 16,000 100 74 2,400 32,174

Approved
PFC PFC Funding **~** Swt End Application

% F'mal cost ""' ""' $334,000

(o) 57% $590,000 05/98 11/05 565,000
(c) 76% 739,680 05/98 12103 421,200
(e} 83% 506,348 05/98 12/03 -% 40,065 01/92 04/98 6447 (a) 91% 7,092 01/92 04/98 1,326,647 1,885,185 215,000 100% 222,926 01110 05/19 750 100%
750 12/08 12111 5,000 100% 4,200 06/04 12105 57,000 100% 39,273 10/07 01/16 35,500 65% 54,604 12103 06109 1,900

6% 31,541 11/10 11/11 950
3% 32,979 12/08 12/11 39,700 100% 31,809 12102 12107 289,000
79% 365,000 01/09 01/15 89,92Ei 60% 112,552 12103 08/10 27,097 57% 47,292 12/03 OS/09 761,823 942,926 750 100%
750 12108 12/11 -%
06/04 12105 3,000 100% 3,000 10/07 01/16 9,500 100% 9,500 12103 06/09 50 100%

50 12106 12/11 300 100%
300 12102 12/07 16,000 100% 16,000 01/09 01/15 100 100%
100 11/10 11/11 74 100%

74 12103 06/10 2,400 100% 2,400 12/03 OS/09 32,174
32,174Opmafulg Cm!t! Impp.se

& Ute Demo of Hanger
12 & Buildiug 94 Mandated Sc:cw.:il,y Costs PFC Planning

& Progmm Administration Sub-totsl. **TotaJU~** Impose On'Y Rehabilitation OfRunW3¥ 4L-22RPhasc

ll Sub--total ToW

2014 2ndQumt« (125) 8 (117) 29,_e77 $29,e77 PFC Fmtding Cum.ulal:i.vc Year To Date

to Date 42 13,152 19,976 10
329 52 33,457 33,230 1,860,013 **~** $1,860,013 Total Unliquidated PFCs ($505,895) • Interest earned also inc:lwks fair market valnarion of investments. (a) The approved PFC application combining bothLGA

& JFK totaled $14 million.

The Port Authority

of New York and New Jersey Passenger FacUlty Charge Program Schedule
of Revenue And Expenditures John
F. Kennedy International Airport **Oth~** FundiDg 125 125 -- 589,369 **~**

Qn Thousands) - 6,336 $6,336 Toad 13,277 19,976 329 33,582 2,455,716

Project Tot>!Budgot 13,500 22,871 1,277 37,648 2,732,856 150,000 150,000 $2,455,718

_ **F.8_8~.ass** (b) Total budgeted project ccsts represent only the PFC eligible dollar amounts contained

in the PFC application approved inJanumy 2006.

Approved PFC Application 13,500 19,976 1,277 34,753 2,155,397 150,000 150,000 $2,305,397 (e)
lit Oetobcr 2003. the FAA approved $172.2 million
in. additional Passenger Facility Charges, increasing the previously authorized St, 148 million JFK Air Train prognm by 15%. Subsequently,

in December 2008, the FAA approved the re-allocation

of eertaia PFC authorized dollar amounls within the various JFK Air Train project components. The total Passeugcr Facility Charge authod%ed dollar amount did not change.

JFK Page2of2

PFC Funding Estimated % Final cost 100% 13,500 87% 22,871 100% 1,277 __11.648 2,897,933 33% 457,000 **~000** $3,354,933
Start &d 0...

- 12/0B 12/11 11/01 09/02 01/10 12114 07/11 06/172014PFCReeeipts$18,755InterestEamed25To131$18,7$0CapitslProiectExpendituresImpost:&UseEWR·Monoran$0EWRLmadsideAccessMonorailNortheastCorridorTransit-InitialPhaseSW..totalAirportAccessAirfieldExpansionProjectDelayReductionDelayReductionPhaseII-PlmmillgElectricalDistn"bution&Substa!ionImprovements410EWR•Bollards671EWR•PerimeterSecurityProjectEWR-R.chabilitationofT:axiwayPF"lrCAlarmUpgrade190ImprovementtoRunwaySafetyAR:aInfrastruc:tw'cRenewal•ElectricalDistribution233Moclemi2'3tionofTcrminal.BNorthAreaRoadwayImprovementsProjeettoPlanforExpandedTe:aai.nalARehabilitationofRunway4L-22R35,368RehabilitationofRunway4R-22L330RelocateBrewsterRoad&SitcworkPrepamtionForEMAS4,402RunwaytraxiweyPavementRehabilitationProjoct•4IJ22RRunweytraxiweyPavementRebabilitarl.onProject·4RI22LRunway/TaxiwayPavementRehabilitationPRunwayExtensionDrainageInfrastructureTeaninalARedevelopment-PhaseIIPJ:mning2,374UpgradeNavigational.AidsR/W22R22L•4LVerticalCirculationinTerminalA30Sub--total44,008F'manciogCostslln))OSe&UseThePortAuthorityofNewYorkandNewJerseyPassengerFacilityChargeProgramScheduleofRevenueandExpendib.lresPFCFundingYearToDate$35,452S7$35,509$01,1893,24622023340,2181,1065,1547,9294959,248NewarkUbertyInternationalAirport{InTh01.1sands)Cumulalive""""roD""Funding$1,095,484$1,092,119$100,00050,000250,0007,000407,00084,:2103,01629,13725,000'fa,3292,79212,000233147,9759,93419,00042,64841,18314,54013,97723,29514,11529,16029,33118,00010,960569,035$261,80033,0671-49,025443,89274,4551161,35315,71612,6473241,03075,10421,3292,73123,07533763976755121219,3176,2743,136227259,840EWRPage1of2""""""'$8,300$6,SOO$0200...1,2196423472,8252839,7592791,1201311,06522619,171ApprovedPFCProjectPFCFunding--StartEndTo131Total.B!5:etApplication%FinalcostDateDate$1,101,784$1,098,419$361,800$338,100(b)$100,00028%$361,800011920619663,06795,-40050,00060%63,0670119212197399,025415,000250,00062%405,00001192061087,0007,0007,000100%7,0000119212197850,892407,000856,867158,665164,18084,21056%151,298121020711142,75042,750100%:29,1740111212/164,7504,750100%4,75008113121223,33261,00061,00044%137,93711/080611731,35635,53035,530100%31,02004!0612/1441,93525,000(b)25,00059%42,21606/030111531,81626,06218,32967%27,41306110061153,46'33,200(b)3,20036%6,420011091211113,03012,000(b)12,00093%12,94512/0510!09233233233100%233225,904193,475(b)147,97544%337,0750210405/1431,5469,934(b)9,63431%31,73401/0707/1321,73119,000(b)19,000100%19,0001210212/1276,19244,35242,42544%95,4030511306!1641,79844,33642,350100%38,1130811105/1316,29920,62420,624100%19,7240711012/1514,7441:3,977(b)13,9n100%13,6SB121021210523,64623,523(b)23,523100%22,525121021210514,32714,238(b)14,238100%13,41512/0212!0548,47729,160(b)29,16062%47,0360910212/0535,7:3629,331(b)29,331100%29,33112/0212!1222,20118,000(b)16,00087%20,69507/0608/1311,41329,00029,000100%14,97201/0707/12668,046863,6357265391,148,318ThePortAuthorityofNewYorkandNewJerseyPassengerFacilityChargeProgramScheduleofRevenueandExpendituresNewarkUbertyInternationalAii'Jlort.(InThousands)2014PFCFunding,__Oth«2ndQuarterYearToDate.,DotoFwuiingA""""AirlieldExpansionProject790DelayReduationDelayPlanningEWR•BollardEWR-PerimeterSecuri1¥ProjectFllCAlarm.UpgradeImprovementtoRunwaySafetyAreaModemhationofTennin.alBNorthAreaRoadwayImprovementsProjecttoPlanforExpandedTCIDlA1Runwayfi'axiwayPavementRehabProj-41J22R399Rnnwayffax.iwayP:tvementRehabProj.4:RJ22L653RnnwayffaxiwayPavementRcl!abProj-p396RunwayExtensionDr.rinageJnfrastrueture840TemUnalARedevelopment-PhaseDPlanningUpgradeNavigationalAidsRfW22R-22L-4LRehabilitationofRnnway4R-21LRehabilitationofRnttwa¥4L-22REWR.·RehabiJ.itatiouofTaxiwayPRelocateBrewsterRoad&SiteworkPrepamtionForEMASElectricalDistnOution&SubstationImprovementsVerticalCircolationinTcnninalASub<o1313,079OperatingCosts[mDD!e&UseNortheastCorridor-'l)'pcAAmendment37,500MandatedSec:urltrCosts9.816PFCPlarming&ProgmnAdministration810322Sub-total81047,632TotalUse1_,(,)4Ei,752703,7321$1,171_hnp011eOnlyDelayReductionPhaseIIconstruction5""-'o131To131$44,016$59,258$703,732$19,171TotalPFCs$45,857(a)InMarch2005,theFAAapproved$20,0millioninadditionalPassengerFacilityChargesforthereimbursementofannualinterestdueonPortAuthorityconsolidatedbondsissuedtofimdlheNorthEastCorridor(NEC)Connection.InJune2008,theFAAapprovedanadditional$17.5millionunder!hisTypeAAmendmentfbrapprovedPFCapplication.(b)TotalbudgetedprojectcostsrepresentonlythePFCeligibledollaramountscontainedinthePFCapplicationapprovedinJanuary2006.EWRPage2of2ApprovedPFCProjectPFCFundmgEstimatedSWtEndTom!TotalBudgetApplication%FinalcostD""o...790790790100%70012/0207/112,2502,250100%2,2500111212/16250250100%250OB/13121221,8701,870100%1,870oooe121145,0005,000100%5,00006/0301/15aoo800100%80001/0912111·%12/0610/097,5257,525100%7,5250210405114500500100%50001/070711311,0001,000100%1,00012/0212/12399550550100%sso12/0212105653850850100%8501210212/05396600600100%6001210212105840840840100%84009/0212/051,5001,500100%1,5001210212/122,0002,000100%2,00007106OS/131,914 1,914100%1,91406/11051131,9181,918100%1,91805/1306/161,4381,438100%1,43806/1006/151,0651,065100%1,08507/1012/153,2113,211100%3,21111/0806/172,0002,0001ooe.&.2,00001!0707/123,079$7,69137,891___B.B9137,50037,50037,500(a)100%37,5000310509/129,61614,3449,81668%14,34411/0109/02322819819100%8190111012!1447,63652,66348,13552,663-_1_269,6_551,219,5652,095,7396100056,842199,70061,00056,842$1,769,655$1,870,689$1,276,407The Port Authority
of New York and New Jersey 20!4 PFCFunding 2nd Quarter Year To Date PFC Receipts

$163 $338 Interest Earned

*

1 Total

$163 $339 CiU:!:ital Projsst E;menditures Imoose&Use

$0

$0 Sub-total Financing Costs Impose&Use Snow Removal

& Safty Equipment PFC Planning

& Program Administration Sub-total Operating Costs Impose&Use Snow Removal

& Safty Equipment PFC Planning

& Program Administration Sub-total Tntal Use **Im~t.CN~_e_Onlv**
Total

$0

$0 Total Unliquidated PFCs • Interest earned also includes fair market valuation
of investments. Passenger Facility Charge Program Schedule

of Revenue and Expenditures Stewart International Airport Cumulative to Date $3,374 14 $3,388 $0 4,215
- 4,215 4,215 $4,215 ($827)

(In Thousands) **~** Funding $0 $0 SWF Page

1 of 1 Accruals $96 $96 $0 $0 Total $3,470 14 $3,484 = $0 4,215 4,215 4,215 $4,215 = Approved
PFC Project
PFC Funding Estimated Start End Total Budget Application

% Final cost Date Date $0

$0

$0 290 290

290 07/10 07/15 290 -290

290 5,437 5,437 100% 5,437 07/10 07115 9

9 100%

9 01/10 12/14 5,446 __ 5_,446
5,446 5,736 5,736 __ 5,736 $5,736 $5,736 $5,736 ="t;·

The Port Authority

of New York and New Jersey Passenger Facility Charge Program Schedule

of Revenue and Expenditures Summary

of all Airports (In Thousands)

Approved 2014 PFCFunding Cumulative
Other

Projects

PFC 3nd Quarter Year To Date

to Date Funding Accruals
Total Total Budget Application Total Receipts

& Interest Earned LaGuardia Airport

$14,270 $40,805 $899,296

$7,507 $906,803 J.F.K. International Airport

26,966 80,332 1,381,083

14,279 1,395,362 Newark Liberty International Airport
17,029 52,538 1,109,150

6,512 1,115,662 Stewart International Airport

169

508 3,557

96 3,653 - Total

$58,434 $174,183 $3,393,086

$28,394 $3,421,480 Total Expenditures Impose&Use LaGuardia Airport

854 6,157 246,547 89,637 7,061 343,345 319,244 432,243 J.F.K. International Airport

21,856 55,087 1,881,869 601,631 2,710 2,466,210 2,732,856 2,155,397 Newarl< Liberty International Airport
31,259 90,517 1,078,013 697,644 12,381 1,788,038 1,809,898 1,219,774 Stewart International Airport

4,215

4,215 5,736 5,736 Sub--total

53,969 151,761 3,210,744 1,388,912 22,152 4,621,808 4,867,734 **~813,150** ImooseOnly LaGuardia Airport

149,000 137,895 J.F .K Inte"mational Airport

150,000 150,000 Newark Liberty International Airport

61,000 56,842 Stewart International Airport Sub-total

-

-

360,000 344,737 Total

$53,969 $151,761 $3,210,744 $1,388,912 $22,152 $4,621,808 $5,227,734 **~157,887** Total Unllquidated PFCs $182,342 Note: ln May 2010, the Federal Aviation Administration (FAA) approved $573.4 million
in PFC collections
for additional eligible projects.

It should be noted that included

in the $573.4 million

is a $4 million project
to upgrade the Fire Alarm System
at EWR. This project replaced

a project
at JFK that was previously approved
by the FAA for impose only. In September 2010, the FAA approved
an Amendment which increased PFC collections
for eligible projects by $55.4 million.
In March 2013, the FAA bas approved, authority

to impose PFCs for five projects and partially approved seven projects (12 projects

in total) and use PFC revenue on nine of those projects. The total approved PFC revenue
to be collected for these projects

is $571.5 million

In July 2013, the FAA has approved authority

to impose PFC revenue for the JFK Tenninal3 Site Redevelopment

and Capacity Improvements Project and use PFC reveunue
on that project
in the amount of$215.0 mil. Summary Page

1 of 1The Port Authority
of New York and New Jersey Passenger Facility Charge Program Schedule
of Revenue and Expendib.Jres LaGuantra Airport (In Thousands)

Approved
PFC 2014 PFCFUDding **Cmnubti~**
""""

Project

PFC Funding """"""" Swt End 3ndQuarter Year To Date roD"" Funding A""""
Tol>l Total Budget **--~pplication**

% Fmal cost D"'e

o ... PFC Roocipts

$14,251 $40,746 $839,219

$7,507 $846,726 """"' ......

19

59 60,077

60,077 Tobl

$14,.2'70 **~805** $899,296

$7,507 $906,803 Cagit:al Project Exl!endiigns Impose& Use Phuming

& Prelim. &g,

$0

$0

$0 $4,924

$0 $4,924 $4,800 (b)

$0 $4,924 01/92 04/98 Acrr-lnirilll.Pil=

7,553

7,553 7,000 (b) 7,553 (.a) 100% 7,553 01/92 04/98 Sub-total A.UportAocess

7,553 4,924

12,477 11,800 7,553
12.477 Crisis Command C:ntw'Fimfightios F:lcllity (ARf'F)

25
730 59,229 20,906

90 80,225 71,055 (b) 61,655 79% 78,404 05/03 11/11 **CTSM~Fmsibilily$1ndy**

13,500 4,485

17,985 13,500 (b) 13,500 85% 15,866 05/03 12/13 CTB ModCl'niz:ltion Planning

& Engineering

23,000 21.000

830 44,830 23,000 23,000 61% 38,000 05/03 12/13 LGA

• Bollanl3

795 5,166 21,595 16,354

272 38,221 32,511 (b) 23,537 60% 39,191 10/07 12/14 LGA

• Pcrimct:o::r SecuriLy Proj«:t

39,000 8,611

90 44,901 36,000 (b) 36,000
(c) 76% 47,434 12/03 12/14 R.unway4 and 31 Ol.:eks **~** Ovemw

31
249 3,042 11,022 5,779 19,S43 22,600 153,800 76% 202,074 02112 12117 **Rnnw:~y** Reho.bilitlUOII Ptojed:

• 13/31 and 4122

1

1 71,612 2,135
73,747 n.sso n,s5o 100% 67,306 07/05 12/12 Sub-total

852 6,146 227,978 84,713 7,061 319,752 **~416** 389,042 Finantiog Costs lm!K!se

& Use **~** COJ>Wi:lnd CcntcliFud'ighdng F..Wity (AR.FF)

2

2 3,245 3,245 100% 3,245 05/03 11/11 C1B Modcmiz:ltiou **Fe:~S~"bility** Study

2

2 1,500 1,500 100% 1,500 05/03 12/13 CTB Modcmi=tion Fc::.sibilily Pl:uming

& Eogiac:ering

2,000 2,000 100% 2,000 05/03 12113 lGA. """""

1,239 1,239

100% 1,239 10/07 12/14 LGA

• **P~** Sccurlty Projo::t

2,000 2,000 100% 2,000 12/03 12114 Rmlv.oty

4 and:;

I Decl<$ Safely Ov=

1,200 8,095 100% 1,200 02112 12117 R=w:zy Reb:!.billtation Project- I313lll!lCI412l

555

555 6,450 6450 100% 6,450 07/05 12/12 Sub-total

559

559 ___ 17_,634 24.529
17,634 Operating Costs Impose&Use Maudmcd So=ity Costs

10,224

10,224 12,499 10,224 82% 12,499 11/01 09/02 PFC Pl:wling

& Program Administratinn

2

11

333

333
895

895 100%

895 01/10 12/14 Sub-total

2

11 10,557

10,557 13,394 11,119 ____:!!&94 **~**

854 6,157 246,647 69,637 7,061 343,345 319,244 432,243 531,750 fmposf;Only RlmW3y4and

31 Decks S:Ui:tyOv=un.

149,000

137 895 93% 149 000 02/12 12117 Sub-total

149,000 137,895 **~000** Tobl

$854 $6,157 $246,647 $89,637 $7,061 $343,345 $468,244 $570,138 $680,750 Total Unliquidated PFCs $652,649 (a) The approved PFC application combhring both LGA & JFK totaled $14.0 million. (b) Total budgeted project costs represent only the PFC eligt"ble dollar amounts contained

in the PFC application approved

in Januaxy 2006. (<)

hl April 2012, the FAA approved
an Amendment which increased PFC collections for LGA Perimeter Intrusion Detection System projects by 28 million. LGA Page1of12014 PFCFunding Cumulative !lndQuarter YearToDae to""" PFC Rcc:cipt5

$26,931 $80,217 $1,345,!;168 --·

35
115 35,115 Tobl

$26,966 $80,332 $1,381,083 Canitat Project Exnalditures **Imoose&U~~e** JFK Light Rail System Jamaica

$0

$0 $328,941 Howard Beach

563,285 Ctntra1 Tenninal Area

421,200 Planning

& Pre.. En.g. Am' Initial Phase

6,447 Sub-total Airttain

1,319,873 Delta T3ff4 Redevelopment Demo& Paving 20,473 47,225 92,329 Dcmo ofHallgcr

12 & Building
94

750 In:fmstructtm: Study and Prciiminary Design to Acc:o1

4,136 JFK Bollards

1,340 6,859 25,119 JFK

• Perimeter Security Project

35,500 **JFK~Rehllbilitation** ofTaxiway

P

1,900 PhmniDg for Centralized De-icing Faclley

3

35 Reconstruction
and StrE:ngthening ofTaxiways

A and

31,844 Rehabilitation
Slld Widening ofRIW 13R·31L

7 912 218,831 Reloca:lion and Rehabilitation ofTaxiwa;y

A and Reb

89,926 Runway 13L-3IR Rehabilitation Project

27,097 Sub-total

21,820 54,999 527,4G7 Financing Costs Imoose& **U~~e** Demo ofHanger

12 & Building
94 Jn:fiastructure Study and Prelim Design to Aceom JFK- Bollards JFK

- Perimeter Security Project Planning for Centrafu:cd De-icing Facili1y Reconstruction
and Strengthening **ofT~**

A Slld

300 Rehabilitation
and Widening ofRIW **l!IR~!IIL R~ilibrlonofT~~p**  Relocation aud Rehabilitation ofTaxiway

A and Reh

74 Runway 13L-31R Rehabilitation Project

662 Sub-total

1,036 ------

- The PortAuthorit;y

of New York and New Jersey Passenger Facility Charge Program Schedule
of Revenue And Expenditures John
F. Kennedy lntematfonal Airport Oth« **Fun~** $267,525 98,658 40,066 40,065 eoe 446,920 12,137 598 288 1,119 28,764 29,420

2 295 54,988 23,593 5,416 154,620

(In Thousands) """""' $14,279 $14,279 $0 22 1,566 920 154 48 2,710 JFK Page

1 of 2 To1al $1,360,247 35,115 $1,395,362 $596,466 661,943 461,266 40,065 7,053 1,766,793 104,488 1,348 4,424 27,804 63,184 31,474 37 32,139 273,867 113,519 32,513 684,797 300 74 esz 1,036

Project To1a1Budgot $840,300 485,000 (b) 509,700 31,200 (b) 7,000 (b) 1,873,200 215,000 750 5,000 57,000 35,500 (b) 1,900 950 39,700 317,754 89,926 (b) 26,354 (b) 789,834 750 3,000 9,500 50 300 16,000 100 74 2,400 32,174

Approved

PFC PFC Funding - Smrt Eod Application

% Fmal cost

o ... """ $334,000

(c:) 57% $590,000 05/98 11/05 565,000
(c) 78% 739,680 05198 12103 421,200
(c:) 83% 508,348 05198 12/03 ·% 40,065 01/92 04198 6,447 (a) 91% 7,092 01/92 04/98 1,326,647 1,885,185 215,000 100% 222,926 01/10 05119 750 100%
750 12108 12/11 5,000 100% 4,200 08/04 12/05 57,000 100% 39,213 10/07 01/16 35,500 65% 54,604 12103 06/09 1,900

6% 31,541 11/10 11/11 950
3% 32,979 12108 12/11 39,700 100% 31,809 12/02 12107 289,000
79% 365,000 01/09 01/15 89,926 80% 112,552 12103 06/10 27,097 57% 47,292 12/03 08109 761,823 **~926** 750 100%
750 12/08 12111 ·%
06/04 12105 3,000 100% 3,000 10/07 01116 9,500 100% 9,500 12/03 06109 50 100%

50 12108 12/11 300 100%
300 12102 12107 16,000 100% 16,000 01/09 01/15 100 100%

100 11{10 11/11 74 100%

74 12/03 06110 2,400 100CA 2,400 12/03 08/09 32,174
32,174Qoef!ting Costs ImpMe& Use Demo of Hanger
12 & Building
94 Mandated Security Costs PFC Planning

& Program Administration - **~** ImooseOniy Rd!abilitarlon

Of Runway 4L·22R Phase

n Sub-total To!al

2014 PFCFunding Cumulative 3ndQuarta YcarToDatc toDate 35

77 13,186 19,976 11
331 36

88 **~493** 21,856 55,087 1;881,869 $21,856 $55,087 $1,881,869 Tobl Un6quidated PFCs ($500,786) lnttJrest earned also includes fair market valuation of investments. (a) The approved PFC application cmnbinmgbothLGA

& JFK totaled $14 milliOIL

The Port Alrthority
of New York and New Jersey Passenger **Facil~** Charge Program Schedule
of Revenue And Expenditures John
F. Kennedy International Airport '"""' Funding 91 91 601,631 **~**

(In Thousancfs) A""""' 2,710 $2,710 To!al 13,277 19,976 331 33.584 2.486,210 $2,486,210

Project Total Budget 13,500 22,871 1.277 37,648 2,732,856 150,000 150,000 $2,882,858 (b) Total budgeted project costs represent only the PFC **elig:~'bte** dolliu- amounts contained

in the PFC application approved

in January 2006.

App<ov<d PFC Application 13,500 19,976 1.2n 34,753 2,155,397 150,000 150,000 $2,305,397 (c) In October 2003, lhe FAA approved $172..1 million
in additional Passmger Facility Charges, increasing the pre'lliously authorized $1,148 million .JFK Air Train program by l5o/ ... Subsequently,

in December 2008, the FAA approved l'he **~ocati.oa**

of certain PFC authorized dollar amounts within the various JFK Air Train project components. The total Passenge:r Facility Charge authorized dollar amount did not change.

JFK Page

2 of2

PFC Funding % 100% 87% 100% 33% - Final cost 13,500 22,871 1.2n __&_.648 2,897,933 457,000 457,000 $3,354,933 Stut End - ""' 12/08 12111 11/01 09/02 01110 12114 07{11 06/172014 3nd()wm< PFC Receipts

$17,007 Interest Earned

22 Tobl

S17,029 Capital Project **E:~~:penditures:** Imeose&U§e EWR·Monor.ill

$0 EWR Landside Access Monorail Northeast Corridor Transit ·Initial Phase Sub--total Airport Aeccss Airiicld Expansion Project Delay Reduction

30,317 Dday Reduction Phase U - Planning Electrical Distn'bution

&. Substation ImprovementS

397 EWR

• BoDards

50S EWR

• Perimeter Security Project EWR-Rehabilitati.on **ofTaxivr.~¥**

P F'ue .Alann Upgrade Improvement

to Rnrlmy Safety Area Infrastructwe Renewal· Electrical Distribution

209 Modemizarion ofTerminal

B Norlh Area Roadway hnprovemeuts Project
to Plan fur Expanded Tenninal

A Rehabilitation ofRnn.way 4L-22R Rehabilitalion ofRunway **4R~22L**

.. Relocate Brewster Road
& **S~** Preparation For BMAS

553 Runway !I'aldway Pavement Rehabilitation Project- 4U22R Runway !Taxiway Pavement Rehabilitation Project:· 4R/12L Runway ffttldway Pavement Rehabilitation Project·

P Runway Extension Drainase Infrastructute Tenninai

A Redevelopment-Phase

IT Planning

(831) Upgrade Navigational Aids R!W 22R

• 22L

• 4L Vertic;al Cinmlation

in Temrlnal.

A

26 Sub-total

31,258 F"mancing Costs Jmpase&Use

The Port Authority
of New York and New Jersey Passenger FaciJity Charge Program Schedule
of Revenue and Expendltures PFCFundiDg Year To Date $5.2,459 79 552,538 $0 30,321 1,576 3,757 220 442 40,214 1,196 5,707 6,997 76 90,506 Newark Lt'berty lntemational Airport {In **Thousand~)** Cumulalive to Dote $1,112,492 **~.342)** $1109,150 $100,000 50,000 250,000 7,000 407,000 84,210 30,739 3,403 ""·""" 25,000 18,329 2,793 12,000 442 147,975 9,934 19,000 42,425 41,272 15.0S3 13,977 23,295 14,115 29,160 26,500 18,000 10,987 620,295 Othe< F...wmg $261,800 33,067 149,025 443,892 74,455 ""' 1,575 17,439 13,151 374 1,030 75,728 21,361 2,743 10,519 356 1,225 767 551 212 19,317 9,187 3,177 317 253,752 EWR Page

1 of2 """"" $6,512 $6,512 $0 136 4$2 212 776 379 2,276 291 5,2S8 196 009 131 1,080 275 12,361
Approved
PFC Project
PFC F...wmg Emmat<d Stmi End Tom! **TotBlB~et** Application

% Final cost Duo Duo $1,119,004 (3.342) $1,115,662 $S61,600 $338,100
(b) $100,000
28% $361,800 01192 OS/96 83,067 95,400 50,000
GO% 83,067 01192 12/97 399,025 415,000 250,000
62% 40$,000 01192 OG/08 7,000 7,000 7,000 100% 7,000 01192 12197 850.892 855,500 407,000 **~867** 158,665 164,160 84,210 56% 151,2SS 12/02 07/11 30,739 42,760 42.750 100% 29,174 01112 12/16 4,750 4,7SO 100% 4,7SO 08/13 12122 3,605 61,000 61,000
44% 137,937 11106 06/17 31,683 35,530 35,530 100% 31,020 04/08 12114 42,651 25,000 (b) 25,000 59% 42,216

. 06103 01/15 32,256 26,062 18,329 67% 27,413 06/10 06115 3,546 3,200 (b) 3,.200 38% 8,420 01/0S 12111 13,030 12,000 (b) 12,000
93% 12,945 12/06 10/09 442
442

442 100%
233 225,979 193,475
(b) 147,975
44% 337,075 02104 05114 31,586 9,934 (b) 9,934 31% 31,734 01/07 07113 21,743 19,000 {b) 19,000 100% 19,000 12/02 12/12 58,202 44,332 42,425 44% 95,403 05/13 ost1e 41,826 44,336 42,:350 100% 38,113 08/11 05/1'3 17.227 20,624 20,624 100% 19,724 07110 12115 14,744 13,sn (b) 13,977 100% 13,888 12102 12105 23,846 23,523 (b) 23,523 100% 22,528 12102 12105 14,327 14,236 (b) 14,233 100% 13,415 12102 12/0S 48,477 29,160 (b) 29,160
62% 47,036 09102 12/05 37,816 29,331 (b) 29,331 100% 29,331 12102 12112 22,257 18,000 (b) 18,000
87% 20,695 07/06 08(13 11,579 29,000 29,000 100% 14,972 01/07 07/12 886,4213 863,844 726,748 1,148,316The Port Authority
of New York and New Jersey Passenger Facility Charge Program Schedule

of Revenue and Expenditures Newark Uberty International Airport (In Thousands) 2014 PFCFunding Cumulative.
"""" 3nd Quarter Year To Date

to Date Funding Aooruals Airfield Expansion Project

790 Delay Reduction Delay Reduction Phase II- Planning EWR

- Bollard EWR- Perimeter Security Project Ftte Alarm Upgrade fmprovemeut

to Runway Safety Area Modernization ofTenninal

B NorthAteaRoadway Improvements Project
to Plan for Expanded Tcnn A

1 Rlmway!raxiway Pavemeut Rehab Proj

- 4U22R

398 R.unwayffaxiway Pavement Rehab Proj- 4R/22L

653 Runwa.y/Ti.lxiway Pavement Rehab Proj

- P

396 Runway Extension Drainage lnfrastrudnre

840 Terminal

A Redevelopment-Phase

ll Plamring Upgmde Navigational Aids R1W 22R- 221.- 4L Rehabilitation ofRunway 4R-22L Rehabilitation ofRunway 4L-22R EWR·Rehabilitation

of Taxiway

P Relocate Brewster Road
& Site-work Preparation For EMAS Electrical Distnbution

& Substation Improvements Vertical Circulation

in Terminal

A Sub4ot3l

3,078 Ooeral.ing Cosh Imnose&Use Northeast Corridor

**~** Type A Amendment

37,500 Mandated Securily Costs

9,816 PFC Planning

& Progrnm Administration

1

11
324 Sub-total

1

11 47,640 Total Use

31,259 90,517 1,078,013 697,644 12,381 lmOOAAOnly Delay Reduction Phase ll **~** construction Sub-total Total

$31,259 $90,517

$1 078,013 $697,644 $12,381 Total Unliquilb.ted F.FCs $31,137 (a) In Marcll2005,
the FAA approved $20.0 million
in addirlonal Passenger Facility Charges for1he reimbursement

of annual interest due on Port Authorily consolidated bonds issued to fimd the North East Corridor (NEC) Connection.

In June 2008, the FAA approved
an additional $17.5 million Ullder this Type A Amendment foupproved PFC application. (b) Total budgeted project costs represent only thePFC eligible dollar amounts contail:iedin
1he PFC applicarl.on approved inJamuu:y 2006. EWR Page2 of2

Approved

PFC Projet;t

PFC Funding Estimated St>rt End Total Total Budget Application

% Final cost ,,. D&e 790
790

790 100%
790 12/02 07/11 2,250 2,250 100% 2,250 01/12 12/16 250

250 100%
250 08!13 12122 1,870 1,870 100% 1,870 04108 12114 5,000 5,000 100% 5,000 06103 01/15 BOO

800 100%
BOO 01/09 12/11 -%
12/06 10/09 7,525 7,525 100% 7,525 02/04 05/14 500

500 100%
500 01/07 07/13 1 1,000 1,000 100% 1,000 12/02 12/12 398
550

550 100%
590 12102 12105 653
650

550 100%
890 12102 12105 355
600

600 100%
600 12102 12105 840
840

840 100%

840 09102 12/05 1,500 1,500 100% 1,500 12102 12/'12 2,000 2,000 100% 2,000 07/06 08113 1,914 1,914 100% 1,914 OS/11 05/13 1,918 1,918 100% 1,918 05113 06/16 1,433 1,438 100% 1,438 06/10 06/15 1,085 1,085 100% 1,085 07/10 12115 3,211 3,211 100% 3,211 11/06 06117 2,000 2,000 100% 2,000 01/07 07/12 3,078 37,8$1 ____3_891

37,891 37,500 37,500 37,500 (a) 100% 37,500 03/05 09/12 9,816 14,344 9,816 68% 14,344 11/01 09/02 324
819

819 100%

819 01/10 12/14 47,640 52,663 48,135
52,663 1,788,038 1,809,898 1,219,774 2,095,739 61,000 56,842 199,700 61000 56,842 199,700 $1,7SS,038 $1,870,898 $1,276,616 $2,295,439ih

The Port Authority
of New York and New Jersey 2014 PFCFunding 3nd Qumrer Year To Date PFC Receipts

$169 $507 Interest Earned

*

1 Total

$169 $508 Capital Project ExJ!!:nditures Imnose& Use

$0

$0 Sub-total Financing Costs Imnose&Use Snow Removal

& Safty Equipment PFC Planning

& Program Administration Sub-total Operating Costs Imnose&Use Snow Removal

& Safty Equipment PFC Planning

& Program Administration Sub-total Total Use Imn._Q$e Onlv Total

$0

$0 Total Unliquidated PFCs * Interest eamed also includes fair market valuation
of investments. Passenger Facility Charge Program Schedule

of Revenue and Expenditures Stewart International Airport Cumulative to Date $3,543 14 $3,557 $0 4,215 4,215 4,215 $4,215 ($658)

(In Thousands) Other Funding $0 $0 SWF Page

1 of1 Accruals $96 $96 $0 . $0 Total $3,639 14 $3,653 = $0 4,215 4,215 4,215 **~** Approved
PFC **Proje~**
PFC Funding Estilllated Start End Total Budget Application

% Final cost Date Date $0

$0

$0 290 290

290 07/10 07/15 290 290

290 5,437 5,437 100% 5,437 07/10 07115 9 9
100%

9 01/10 12/14 5,446 5,446 __ 5,446 5,736 5,736

__ 5,736 $5,736 $5,736

$5,736 **~**2014 Master Lease Fee True-Up and 2014 Forecast

Fee Summary 2013 Current 2014 2015

Final 2014 Fee True Up Fee

Fees Forecast Forecast Forecast (000)

Flight Fee per 1,000 lb. $ 6.64 $ 7.94 $ 5,779 $ 7.69

Monorail Fee per 1 ,000 $ 2.03 $ 2.30 $ 2,126 $ 2.23

lb. Fuel Fee per gallon $ 0.0723 $ 0.0735 $ 733 $ 0.0764

Variable Airport $118,971 $110,387 $ (3,532) $110,355

Services Fee per acre

CH & RP (millions) $ 15.453 $ 18.237 $ 2,784 $ 18.131

Police -Boarding Gate $ 1,269 $ 803 $ (2,078) $ 876

Security per tour $ 5,812
Average rate for year Current Billing

FIS $ 15.08 $ 14.40 $ 14.05

GTC $ 6.88 $ 6.55 $ 6.40

lnt'l Arr Fee $ 21.95 $ 20.95 $ 20.45

Projected Net Revenue $ 5,358 $ 136

See "Fee and True Up Summary" and individual fee calculation sheets for variance explanations.

## 2013 Final Fees 

## Flight Fee per 1,000 lb. 

## $ 6.64 Monorail Fee per 1 ,000 lb. 

## $ 2.03 Fuel Fee per gallon 

## $ 0.0723 Variable Airport Services 

## $118,971 Fee er acre 

### CH 

### & RP (millions) 

## $ 15.453 Police -Boarding Gate 

## $ 1,269

Securit er tour 

## FIS GTC lnt'l Arr Fee Proj Net Rev
Changes from June 2014 Airport Affairs: 2014 Master lease Fee True-Up and 2014 Forecast Fee Summary Spring 

## July 1 Current 

## 2014 AlP Affairs 

## 2014 2014 Fee Fees 

## 2014 Fee Catch Up Forecast 

## Elf 1/1/2014 Forecast Fees 

# !•l $ 7.51 $ 7.79 

## $ 8.00 

## $ 7.94 

## $ 2.16 

## $ 2.24 

## $ 2.28 

## $ 2.30 

## $ 0.0687 

## $ 0.0725 $ 0.0759 

## $ 0.0735 $ 118,971 

## $ 116,144 $ 110,387 

## $ 15.453 

## $ 16.904 

## $ 18.237 

## $ 1,437 

## $ 1,290 

## $ 1,200 

## $ 803 

## $ 15.75 

## $ 15.08 

## $ 14.40 

## $ 15.08 

## $ 7.20 

## $ 6.88 

## $ 6.55 6.88 

## $ 22.95 

## $ 21.95 

## $ 20.95 

## $ 21.95 

## $ 3,685 

## $ 5,358 2014 2015 True Up 

## Fee Forecast Forecast



## (000! 

# !bl $ 5,779 

## $ 7.69 

## $ 2,126 

## $ 2.23 $ 733 $ 0.0764 

## $ (3,532) $110,355 

## $ 2,784 

## $ 18.131 

## $ (2,078) 

## $ 876 

## $ 14.05 6.40 

## $ 20.45 

## $ 136

The 2014 ASF forecast reflects lower Policing and Traffic costs after implementation of the post-ARFF and a reassessment of existing posts, as well as lower hourly rates due to filling posts with new recruits from the last two classes. The 2014 FF forecast reflects a lower weight forecast, as well as increased spending for repairs to airfield systems, airfield maintenance and markings during construction activity, the Airport. System Capacity Planning Study, a full year's experience 

### with the new Allied Barton security contract, a retroactive ARFF settlement with the PBA , an increase in the Emergency Alert Notification System contract for new work related to backup systems and alternate locations, and an accounting correction concerning transition of the security function from the Aviation Department to the Chief Security Officer, partly offset by higher aircraft parking credits and lower airport services costs (see above). The 2014 Monorail fee forecast reflects a lower weight forecast which accounts for about 2/3 of the growth in the forecast final fee. It also reflects lower NEC Station credits due to the shutdown, and higher Rental Car Credits due to an increase in the transaction fee that was implemented in July, as well as higher rental car activity. The 2014 Fuel Fee forecast reflects a lower fuel consumption forecast. The anticipated purchase by the operator of 2 5,000 gallon refuelers is now assumed to take place in early 2015. The 2014 CHRP estimate reflects higher fuel costs due to the sustained cold weather this year which required a switch to fuel oil under our interruptible service contract. It also reflects higher than expected electric costs due to high natural gas prices. Fina!ly, the estimate reflects more construction than originally forecast this year on the High Temperature Hot Water Generator replacement. The 2014 International Facility forecast reflects slightly lower O&M and settlement costs than previously forecast, as well as continued strong passenger numbers and rental revenues (rentals are credited against expenses). The 2014 FAR fee is currently reflecting lower than expected labor costs lower hourly rates due to filling posts with new recruits from the last two classes, and filling of fewer tours on OT. Flight fee weights are forecast 

### to decrease by -2.6% compared to 2013, and monorail weights by -2.4%. Gallons are forecast to decrease by -3.1%. 2015 calculations generally assume 2.5% escalation of costs and revenues, as well as budget cuts currently being considered for the 2015 budget. The Flight Fee includes an estimate for the replacement of bolts on airfield lighting fixtures. The Monorail Fee assumes a return to higher NEC station revenue credits after 2014's shutdown impact. In addition, the 2015 Fuel Fee calculation includes estimates for a GASB49 provision for dyke moat lead paint abatement, delivery of 2 5,000 gallon tankers in early 2015 and the first of 20 new hydrant carts,anticipated to be delivered in the fall of 2015. The F!S 

### I GTC fee assumes settlement of the remaining Terminal B Modernization project costs. Flight fee weights are forecast to increase by 0.8% over 2014, monorail weights by 0.6%, fuel gallons by 0.3%, and FIS passengers by 2.4%. General Notes: The flight fee was set at $7.51 on January 1, 2014, and changed to $8.00 on July 1, 2014. The monorail fee was set at $2.16 on January 1, 2014, and changed to $2.28 on July 1, 2014. The fuel fee was set at $0.0687 on January 1, 2014, and changed to $0.0759 on July 1, 2014. The FAR fee was set at $1,437 on January 1, 2014, and changed to $1,200 on July 1, 2014. The FIS fee was set at $15.75 on January 1, 2014, and changed to $14.40 on July 1, 2014. The GTC fee was set at $7.20 on January 1, 2014 and changed to $6.55 on July 1, 2014.

Fee and True Up Summary 

## Page 2 of 22

### 2013 Actuals Base Rate CostAdj VolumeAdj Area Adj Flight Fee (PAF) 

## $ 0.3130 X 

## $ 74,446,161 X 

### 17,734,000 

# = $ 3.1248 2013 actuals $ 4,010,000 32,978,578 Flight Fee (ASF) $ 0.3370 X 

## $ 105,193,737 X 

### 17,734,000 X 

### 0.5900 

# = $ 3.6582 2013 actuals 

## $ 4,625,000 32,978,578 0.6647 Flight Fee (Phase 1 A) $1,963 32,978,578 X 

### 1016.311 

# = $ 0.0605 2013 actuals 

## per acre PAF acres 

### Flight Fee (Pkg credit) $ 6,698,337 

## I 32,978,578 

# = $ (0.2031) 2013 actuals $ 6.6404 2013 actuals Variable Airport Svcs $ 6,343 X X 

### 1,420.700 

# = $ 118,971 

## per acre 1,722.707 

## Monorail 

## $ 59,755,773 

## I 29,487,871 

# = $ 2.0265 2013 actuals

Fuel (System) 

## $ 0.01304 X 

## $ 35,980,779 X 

### 320,000,000 

# = $ 0.0664 2013 actuals $ 3,300,000 685,151,282 Fuel (ASF) $ 0.00046 X 

## $ 105,193,737 X 

### 320,000,000 X 

### 1.95% 

# = $ 0.0058 2013 actuals $ 4,625,000 685,151,282 1.63% Fuel (Phase 1A) $1,963 685,151 ,282 X 

### 33.401 

# = $ 0.0001 2013 actuals 

## Fuel Farm acres

Catch Up Calculations 2014 Sched 2014 Sched 2015 Sched AIL Revenue at AIL Revenue NL Revenue Fee Changes current billing 

## at forecast Estimated 

## at forecast rate billing rate True U billing rate Jan 1 2014 Jul1 2014 Flight Fee 

## $ 7.51 

## $ 8.00 

## $ 246,723 

## $ 252,502 

## $ 5,779 

## $ 246,612 

## Monorail Fee 

## $ 2.16 

## $ 2.28 

## $ 63,744 

## $ 65,870 

## $ 2,126 

## $ 64,309 Fuel Fee 

## $ 0.0687 

## $ 0.0759 

## $ 47,748 

## $ 48,480 

## $ 733 

## $ 50,869 FAR Fee 

## $ 1,437 

## $ 1,200 

## $ 5,316 

## $ 3,238 $ (2,078) 

## $ 3,535 2014 Total Net 2015 Total Revenue 

## Net Revenue FIS Fee 

## $ 15.75 

## $ 14.40 GTC Fee 

## $ 7.20 

## $ 6.55 

## $ 22.95 

## $ 20.95 

## $ 5,358 

## $ 136

Fee Impact Formulas Page 3 of22TOTAL FORECAST /see lndivldlllll fee tabs for !letailsl 

### I 2014 forecast YTP PAF 

# "' PHASE 1A MONORAIL GALLONAGE CH&RP eAR INTERNATIONA ANNUALIZED FUEL SYSTEM LFACILITY O&M**E~penses** Charged Directly to lh.e Airport Direct Cost Centers: PAF Airfield Securlty 16,438,857 16,069,165 Operations 7,254,435 7,254,495 Maintenance 11,894,158 11,876,958 systems Communlcal)ons and Signals 1,146,753 1,146,753 Electric & Gas Distribl.llion 422,195 422,195 Storm, Saoftary and Water DistribUtion 3,453,734 3,453,734 Air Terminal Hlgh.way & Restricted Service Roads 11,984,447 11,984.447 Monoran**Monora~** O&M Contract (excl Mid Life- see Fxd Chrgl 15,494,443 14,762,738

Mono ran Other (axel Mid Ufe- see Fxd Chrgs) 20,716,938 12,234,383 Gallonage Fuel system

1 05% of Operator Charges 29,490,519 29,490,519 Direct O&M's 656,308 666,308 CH&RP

CH&RP EnerJ:lY 6,592,958 6,592,958 CH&RP Other O&M 3,223,004 3,223,004 Aircraft Boarding Gate security 2,553,957 2,487,425 lnlematlona! Facllity Labor 5,978,407 5,887,825 Construction Col!lracts (511450) (35,538) 189,413 Elevator I Escalator contract maintenance 1,231,060 1,231,060 Cleaning Contract 3,564,233 3,554,233 Baggage**Be~** I Loading Bridges 6,269,636 6,684,000 Seculity Guards 1,693,572 1,882,822 Customer Service Reps & Bag Handlers 1,670,779 1,670,779 Mechanical Malntenant:e 354,720 354,720 Environmental Maintenant:e 

# "" 

# '" Other Contract Services 84,163 84,163 Utitnies 2,826,883 2,820,883 Mist:ellaneous axe GASB 49 construction contract pmt {2,129) (2,129) All other International Facility 968,267 968,207 All Other Areas 200 600,671 1,924 Total Direct Costs 356,538,454 35,200,618 17,007,129 26,997,121 30,156,827 9,815,962 2,487,425 25,311.o77 Airport General Costa Emergency Services 24,183,393 23,991,461 Policing & Traffic 27,753,755 27,333,243 Police" Administrative & ctertcal and Other (14,035,728) Snow & Ice 25,813,508 16,919,846 3,242.411 943,()45 other General Operating & Maintenance Costs 21,821,453 1,155,499 1,440,875 298,248 1,891 1,077,341 1,085,747 Automotive Services 78,038 53,611 7,460 

# "' 772**Jan~orial** 7,323 11 (5,925) 

# '" 1S 3,404 Care of Grounds 1,918,368 375,077 913,634 97,731 14,210 152,701 structural Maintenance 1,009,225 93,719 10,821 43,687 95 1,317 655,818 Mechanical Maintenance 1,870,286 9,593 114,037 105,158 1,410 1,053,823 167,947 Electrical Maintenance 287,080 101,037 129,762 41,698 

# "' 7,673 52,468 Paving 1,Q75,147 522,277 167,187 6,351 77 52,548 Environmental 25,906 

# "' 136,593 

# " Maintenance- Admin, Clerical & other 8,500,820 Operntlons- Administrallve & Clerical and Other 7,049,260 Public Uabnity, Property Damage & Workers Comp. 5,636,158 1,359,780 242,883 649,426 265,985 119,619 708,417 Other Units 43,326,880 3,090,514 33,201 4,058,248 Total Airport General Costs 134,499,417 43,426,586 35,349,927 914,474 267,877 1,198,960 8,795,45S Rent to the City of Newark 84,984,913 9,353,743 Total O&M EJO:penses**Charg~** Directly to the Airpor 576,(122,784 78,627,204 52,357,056 27,911,594 30,424,704 11,012,922 2,487,425 41,460,277 Direct Pmfllled Expenses 35,027,855 3,718,064 Allocated Expenses 30,848,838 1,905,150 1,977,888 186,557 12,535,236 Fixed Charges eAF 28,368,099 28,368,099 Systems 35,367,422 35,367,422 Phase 1A 3,380,912 5,380,912 PASpace 20,549,845 9,879,874 Monorail {Construction Factor, including Mid Ufe) 51,159,013 51,604,516 Gallonage Fuel System 5,263,711 5,263,711 CH&RP 94,471,311 93,471,311 eAR 592,759 566,167 Jntematlonal Facility 28,521,403 28,521,403 AI! other Areas 44,657,616 Total Fixed Charges 312,332,092 28,368,099 45,247,296 3,380,912 51,604,516 5,263,711 93,471,311 566,167 26,521,403 Total Cost Before Credtls 954,031,570 106,!195,303 97,604,353 3,380,912 81,421,260 35,688,415 106,462,121 3,240,149 86,234,960 credits Parklng & Storage**Fee~** {5,994,306) {5,994,306) International Facility FIS/ GTC fses (85,127,459) {83,354,169) Rentals & Other (not Concessions) (5,23!1,868) (5,239,868) Concessions Space cmdit**~** {3,697,188) (3.795,792) AirTrain Revenues Rental Car (6,$61,895) (6,670,029) Bus Service (500,000) (500,000) NEC Fare Box (7,901,293) (8,040,568} PFC Debt Service Credit Toial Credtls (114,822,010) (5,994,306) (15,210,596) (92,38$,850) TolaiCost 8$9,209,560 101,000,997 97,604,353 3,360,912 66,210,664 35,686,415 106,462,121 3,240,149 (6,154,870) • Toial Construc;tjon Payments as of 9112114. --6.29% FAR EXf!ense Delair j$000's} Police 2,399 Direct O&M Insurance 

# " DlrectO&M Mol:lile Equipment 

# ' Direct O&M +Auto Svc Gen'l ACD1V F!xed Charges 

# '" Fixed Charges" "309" ACD1VO&M 

# "" DirectO&M Space Charge 

# " Allocated TSA Reimbun;ement (131) Allocated Management Fee & Oth.er 

# "' Includes Sandy estlm'lie 3,240

2014Forecast Page 4 of22

### Bold 

### = Actual Flight Fee 2014 January 

### 2,468,291 February 

### 2,206,037
March 

### 2,771,972 April 2,613,956 May 

### 2,659,000
June 2,754,221 July 

### 2,900,946 August 2,879,676 September 2,592,790
October 2,723,228
November
December *unaudited
TOTAL SCHEDULED**AIRLINE~** 

### 26,570,116
Itinerant Airlines Mise
TOTAL AIRCRAFT WEIGHT 26,570,116
Itinerant (2013)
MONTH MN 124FW JANUARY FEBRUARY MARCH APRIL MAY 

### JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Current Credit & 

### Rebilling 0 TOTAL 

### 0

FFWts 

### Newark International Airport Actual Activity Total Aircraft Weight

2013A 2013 Total 2,656,365 2,656,365 2,365,961 2,365,961 2,774,976 2,774,976 2,801,719 2,801,719 2,821,251 2,821,251 2,776,641 2,776,641 2,861,357 2,861,357 2,887,944 2,887,944 2,601,239 2,601,239 2,766,725 2,766,725 2,585,485 2,585,485 2,749,691 2,749,691 32,649,354 32,649,354

329,224

32,978,578

TOTAL MN 125FW MN 126FW 0 0 0 

### 0 0 0 0 0 0 

### 0 0 0 0 0 0 0 0 

### 0

Page 5 of22 

### Forecast 2014E 2015E Total Total 2,468,291 2,492,974 2,206,037 2,228,097 2,771,972 2,799,692 2,613,956 2,640,096 2,659,000 2,685,590 2,754,221 2,781,763 2,900,946 2,929,955 2,879,676 2,908,473 2,541,218 2,566,630 2,719,096 2,746,287 2,537,991 2,563,371 2,680,000 2,706,800 31,732,404 New FCST@ Oct 20, 2014 32,049,728 New FCST@ Oct 20, 2014

(916,950) 317,324 -2.8% 1.0% 32,101,960 Old FCST@ May 30, 2014 32,422,980 Old FCST@ May 30, 2014 -1.7% 1.0%

### 2014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations

PAF


### 2014 YTD through Oct Prelim 

### 11/10/14 2014 2013 

### vs 2015 2014 YTD 

### 2014 '13- '14 '14- '15 

### 2013 Annualized Forecast Frcst Impact Forecast Impact Escalations 

### (a) Variance (c) 

### O&M Expenses Charged Directly to the Airport 

### 2014 2015 Refiects EWR share of Increase In KOVA Ememen<:y Alert N 

### Cost Centers: ror work**re~ted** to backup systems and alternate**loca~ons.** otifkation System contract 

# I_**~ndudes** $1 mHOon for r/w light fixture bolt 

# A

Correction to annualizaUon or super Bow! costs.·-· epl;n:ement. Billano:;e of $0.5 million In 2016. 

### PAF

Airfield Security Operations Maintenance All 

### Other Areas Total 

### Direct Costs Other Costs Emergency Services 

### Policing & 

### Traffic Annualized fur 21 pay periods YTD (ARFF began 1/1/14). Includes retro PBA ARFF settlement.



### Police- Administrative & 

### Clerical and Other Snow & 

### Ice Other 

### General Operating & 

### Maintenance Costs Public Liab, Prop Damage, Workers Camp. Other 

### Units Total Other Costs 

### Rent 

### to the 

### City of Newark 

### Total Dir O&M 

### Exp. Charged to Airport Direct Prorated Expenses 

### Allocated Expenses Fixed 

### Charges PAF All 

### other Areas Total Fixed Charges 

### Total 

### Cost Before Credits 

### Credits Parking & 

### Storage Fees All 

### Other Areas Total Credits 

### Total Cost Activity Take-off 

### Weights (million lbs) 

### 14,385 16,439 6,157 7,254 10,015 11,894

4,255 24,183

8,044 17,071 1,642 1,155 1,555 1,360 15,497 43,769

$46,053 $ 79,357

11


### 28,382 28,368 28,382 28,368 $74,446 $107,725

(6,698) (5,994) (6,698) (5,994) $67,748 $101,731 

## 1a,oa!t 1,685 $ 

### 0.0707 17,471 $ 

### 0.0588 2.5% 7,254 1,098 $ 

### 0.0461 7,436 $ 

### 0.0076 2.5% 11,877 1,862 $ 

### 0.0781 12,879 $ 

### 0.0421 2.5% 2.5% 1,151 $ 

### 0.0457 36,635 

### $ 0.0628 Adjustment fur**201~** budg..t wts as of 11-3-14. 

### 23,991 19,737 $ 

### 0.8284 24,591 $ 

### 0.0252 2.5%

16,920 8,876 0.3725 10,394 (0.2739) See Snow Calculation 

### 1,155 (486) (0.0204) 1,184 0.0012 2.5% 1,360 (196) (0.0082) 1,394 0.0014 2.5% 43,427 27,930 $ 

### 1.1723 37,564 $(0.2461)

$ 78,565 

### $ 32,512 

### $ 1.3647 $ 74,198 $(0,1833)

(11) 

### (0.0005)
28,368 (14) $(0.0006) (d) 28,176 $(0.0080) 28,368 (14) $(0.0006) 28,176 $(0.0080) $106,934 

### $ 32,487 

### $ 1.3636 $ 102,375 $(0.1913)
(5,994) 704 $ 

### 0.0213 (5,994) $ $ $ (5,994) 704 $ 

### 0.0213 (5,994) $ $ 100,939 

### $ 33,191 

### $ 1.3850 $ 96,380 $(0,1913) 2014 2015 32,117 (861) 

### $ 0.0838 (e) 

### 32,379 $(0.0259) 

### See FF wts tab 1.0% 

### JG extrap based on YTD wts 

### .P.e

.. r**~-!_CL1** 

### •.. 0/20/14

_ ...

## r-,-~.)"'The··~Q~4F·F·f~-~cast**;~fj·;;~;--~-i-~:~·;-;~~~h~- f~~~-~-;~;,-~s** **~~·~~-~~-~~~~~~-;~d ~·p-~d~~;-f~;·~~-~~;;~-~~-~~rtj~ld-** **s~;~~~~~-~-irfield mai~~~na~ce--;~-d~~~k~~gs**  

# ·r during construction activity, the Airport System Capacity Planning Study, a full year's experience with the new Allied Barton security contract, a retroactive .i 

### ARFF settlement with the 

## PBA, an increase in the Emergency Alert Notification System contract for new work related to backup systems and alternate locations, and an accounting correction concerning transition of the security function from the Aviation Department to the Chief Security Officer, partly 

# I offset by higher aircraft parking credits. 

### (b) 

### (c) 

### 2015 reflects an estimate for replacement of airfield lighting fixture bolts. 

### (d) Settlements do not reflect the significant investment in the airfield runway projects this year because those projects are PFC-funded. Settlement details can 

### be found in the "Significant Settlements" tabs. {e) 

### 2014 take-off weights are forecast to decrease 

### by -2.6% compared to 

### 2013. October 

### YTD weights are 

### -2.7% lower than 

### 2013 YTD.

PAF Page 6 

### of22

### Newark International Airport Total Passenger Aircraft Weight Monorail 2014 2013 

### Forecast 2013A 2014E 2015E 

### Month Scheduled Scheduled Monorail Monorail Monorail Jan 2,215,087 2,367,637 2,367,637 2,215,087 2,226,162 Feb 1,974,480 2,099,659 2,099,659 1,974,480 1,984,352 Mar 2,531,695 2,491,372 2,491,372 2,531,695 2,544,353 Apr 2,367,002 2,524,390 2,524,390 2,367,002 2,378,837 May 2,400,874 2,530,290 2,530,290 2,400,874 2,412,878 Jun 2,507,066 2,515,454 2,515,454 2,507,066 2,519,601 Jul 2,639,255 2,624,120 2,624,120 2,639,255 2,652,451 Aug 2,614,496 2,633,859 2,633,859 2,614,496 2,627,569 Sep 2,336,555 2,382,746 2,382,746 2,337,809 2,349,498 Oct 2,432,806 2,505,740 2,505,740 2,474,523 2,486,896
Nov 

### 2,345,228 2,345,228 2,313,019 2,324,584 Dec 2,386,253 2,386,253 2,362,390 2,374,202
*unaudited 

### 0**-:.zs;·4:o.~;·74.9** 

### 28;737,697' New FCST@ Oct 20, 2014 28;88,1;385 New 

### FCST@ Oct 20, 2014 Subtotal 24,019,316 29,406,749 (669,052) 143,688 -2.3% 0.5% Itinerant 81,122 29,054,735 Old FCST@ May 30, 

### 2014 29,316,228 Old FCST@ May 30,2014 Mise 

### 0 0 -1.2% 0.9%



### TOTAL 24 019 316 29!4871871



### MRWts Page 7 of222014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations

MONORAIL 

### 2013- 2015 2013 2014 YTD 2014 2014 '13- '14 Forecast 

### '14-'15 Escalations Annual'lzed Forecast Frcst Impact (d) Impact Variance 

### 2014 YTD through Oct Prelim 

### 11{10{14
O&M Expenses Charged Directly to the Airport 

### 2014 2015 urring journal entries, and payments to date. 

# 1 Shutdown mitigation oost sst $7M moved 

### to Fxd Chrgs below. other shutdown malnt. Cost Centers: Monorail Estimata bi!sed on current accrual balance, rec 

### r !:opportunity" work also not annuallzed: Repaint ext. struct. at Airtraln Sta; Replace dry spklr 

### 14,763"". system at NEC sta. Monorail O&M Contract (excl Mid 

### Life- see Fxd Chrgs) Monorail other (excl Mid Life- see Fxd Chrgs) All Other Areas Total Direct Costs other Costs Emergency Services Policing & Traffic

**Police~** Administrative & Clerical and other Snow& Ice Other General Operating 

### & Maintenance Costs Public liab, Prop Damage, Workers Comp. Other Units Total Other Costs 

### 14,144 10,421 (66) $ 

### 24,499

485 793 $ 

### 1,278 15,494 20,717 12,234 $ 36,211 $ 

### 26,997 $

298 298 649 649 33 $ 948 

### $ 914 

### $ 618 $ 

### 0.0210 17,700 0.0996 1,813 $ 

### 0.0615 12,540 0.0104 2.5%

66 $ 

### 0.0022 1,840 0.0624 2,498 $ 

### 0.0847 $ 28,400 $ 

### 0.0476 Adjustment for 

### 2015 DBOM budget cuts as ofll-3-14. 

### $

(186) (0.0063) 306 0.0003 2.5% (144) (0.0049) 666 0.0006 2.5%

33 0.0011 0.0011 (364) $(0.0123) $ 971 

### $ 0.0019 Rent to the City of Newark

**Cor~ion** 

### to annualizatlon of Super Bowl costs.


### Total Dir O&M Exp. Charged 

### to Airport 

### $ 25,777 

### $ 37,159 

### $ 27,912 

### $ 2,135 0.0724 Direct Prorated Expenses Allocated Expenses 

### 1,388 3,359 1,905 517 

### $ 0.0175 (b) Includes amortization over 

### 15 yrs of mitigation 

### costs. Fixed Charges Monorail (Initial and Add'l Constr. Factor) All Other Areas Total Fixed Charges 

### Total Cost Before Credits Credits AirTrain Revenues Rental Car Bus Service NEC Fare Box PFC Debt Service Credit 

### All Other Areas Total Credits 

### Total Cost 

### Activity Take-off Weights (million lbs) 

### 49,027 51,159 51,605 2,578 0.0874 (c) 

### $ 

### 49,027 $ 

### 51,159 $ 

### 51,605 $ 

### 2,578 $ 

### 0.0874 

### $ 76 192 $ 

### 91 677 

### $ Annualizatlon based on 

### 2013 seasonality. Indudes est. for increase in rental car transaction fee eff 

### 7/14. (6,564)

(500) (9,459) (6,362) (500) (7,901) (6,670) (500) (8,041) 

### $ 5,229

(106) 1,419 87 (87) $(16,436) $ 

### (14,763) 

### $ (15,211) $ 1,226 

### $ 59,756 

### $ 76,914 

### $ 66,211 

### $ 6,455 0.1773

(0.0036) 0.0481 (e) (g) 

### (0.0030) $ 

### 0.0416

0.2189
29,488 28,776 (712) 

### $ 0.0501 (fj 

### JG extrap based on 

### YTD wts. 

### $ 29,372 0.0495

1,632 (00092;.)=======-. Adjustment for 2015 CARP budget cuts as of 

### 11-3-14. 

### 52,059 0.0154 $ 

### 52,059 

### $ 0.0154 $ 

### 83,063 0.0557 NEC Pax through October are 16% below 

### 2013. 

### (7,789) (0.0379) 2.5%

(500) 

# , (10,200) {0.0732) -15.0% 2.5%
$(18,489) $(0.1112) 

### $ 64,574 (0.0555) 2014 2015

28,963 

### $(0.0134) See 

### MR wts tab 

### 0.5% per 

### JJQ 10/20/14

- 

## --- .... 

# --
...... 

# -
.... .- (a) The 

### 2014 Monorail fee forecast reflects a lower weight forecast which accounts for about 

### 2/3 of the growth in the forecast final fee. 

### It also reflects lower 

### NEC Station credits due to the shutdown, and higher Rental Car Credits due to an increase in the transaction fee that was implemented in 

### July, as well as higher rental car activity. 

### (b) 15% liquidated overhead on direct expenses and credits. (c) Settlement details may be found in the "Significant Settlements" tabs. 

### (d)) (e) 

### 2014 station usage is 

### -16% behind 

### 2013 through October. 

### (f) 

### 2014 scheduled monorail weights are forecast to decline by 

### -2.4% compared to 

### 2013. October 

### YTD weights are 

### -2.7% under 

### 2013 YTD. (g) Monorail NEC debt service 

### PFC credit ended in August of 

### 2012.



## MR Page 8 of22 ' !1erminalB2014.TerminalB2013Final1/1/14FISFee..;tu:myeFISlnt'lArrlnt'lDepDomArr/De(!201:3FISlnflArrlnt'lDepDomArr/DeeJan-13214,285108,087322,372Jan-14217,654111,100582Feb-13171,16082,756602254,518Feb-14173,85185,063902Mar-13244,195112,277438356,910Mar-14248,035115,406643Apr-13252,311123,732494376,537Apr-14256,278127,181mMay-13252,870141,791-394,661May-14256,846145,743142Jun-13273,043147,261111420,415Jun-14277,336151,36597Jul-13306,868138,37330445,271Ju!-14311,693142,230138Aug-13307,081145,772-452,853Aug-14311,909149,835537Sep-13249,063131,416121380,600Sep-14252,979135,07968Oct-13253,428136,186-389,614Oct-14257,413139,982112Nov-13212,001119,264-331,265Nov-14215,334122,58835Dec-13247,817133,73189381,637Dec-14214,974125,239170Total20132,984,1221,520,6461,8854,506,653Total:20142,994,3041,550,8103,803Total2012:2,987,;111,473,1637,0224,4€3,096Total21113actual2,984,1221,520,6461,885Changefrom20130.3%2.0%101.8%JJQ12/3/2013Irev"'""I""'''"IIB2014APtmalFISlnt'lArrlnflDenDomArr/DeeJan233,075111,537206Feb191,02586,1211,508Mac269,892119,915253Ape287,333137,134303May284,488155,861104Jun281,943164,186499Jul328,989163,4776,135Aug333,143171,1355,473Sep281,009147,7024,900Oct279,940152,874Nov237,418133,566187Deolrotal20143,008,2551,543,50819,568Tot:al2013VTD2,736,3051,386,9151,795Changefrom20139.9%11.3%989.5%FISPaxPage9of22for2:014329,336259,816364,084383,836402,731428,799454,060462,281388,126397,507337,958340,3834,548,91714,506,6530.9%2014344,818278,654390,060424,770440,453446,628498,601509,751433,611432,814371,171-4,571,33114,12s,o1s110.8%'"'"""'"'Ttmolh,.ilB2014F·..FISlnt'lArtlnt'lOepDomArrfDep2014Jan-14233,075111,537206344,818Feb-14191,02586,1211,508278,654Mar-14269,892119,915253390,060Apr-14287,333137,134303424,770May-14284,488155,861104440,453Jun-14281,943164,186499446,628328,989163,4776,135498,601Aug-14333,143171,1355,473509,751Sep-14281,009147,7024,900433,611Oct-14234,782126,1751,000361,957Nov-.14274,447141,4811,000416,927Dec-14266,171138,8251,000405,995Total20143,266,2971,663,54822,3814,952,2261Total2013actual2,984,1221,520,6461,8854,506,653Changefrom20139.5%9.4%1087.3%9.9%JJQ10/20/2014T·•B.2015;-.,,FISlnt'lArrlnt'lDepComArr/Dee2015Jan240,300114,130232354,663Feb196,94788,1231,698286,768M"278,259122,703285401,247Apr296,240140,322341436,904May293,307159,485117452,909lun290,683168,003562459,248Jul339,188167,2786,908513,374Aug343,470175,1146,163524,747Sep289,720151,1365,517446,374Oct242,060129,1091,126372,295Nov282,955144,7701,126428,851Dec274,422142,0521,126417,600ITotnl20!53,367,5521,702,22625,2015,094,979Total20143,266,2971,663,5482:2,3814j9521226Changefrom20143.1%2.3%12.6%2.9%Midpointbetweenunconstrained{10/17/14)andcapacityconstrained(11/6/14)JJQforecasts

# The Port Authority of New York & 

# New Jersey Terminal B FIS/B-2/B-3 International Facility Financial Statement

Updated: 2014 YTD Oct$ & 

# Nov Pax Final 2013 2014E Passengers (OOO's)

Arrivals 2,984 3,274 Departures 1,521 1,682 Domestic (Arrivals /De[!artures) 2 21 Total 4,507 4,977

Rates

FIS 

# $ 14.85 

# $ 15.08 GTC 6.80 6.88 FIS (Arrival) 21.65 21.95 GTC -lnt'l Dept & 

# Domestic (Arr/Dep) 6.80 6.88

Total Revenue 79.94 88.59

Total Expenses 44.92 46.36

Net Operating Revenue 35.02 42.24

Net Fixed Charges 25.56 26.73 Citv Rent 9.13 9.35 Operating and Maintenance Reserve 0.08 0.80 Net Income (Loss) $ 0.25 $ 5.36 Jan- June Revised 2014 Fee Billing Effective

Rate 7/112014 FIS $ 15.75 $ 14.40 GTC $ 7.20 $ 6.55 lnt'l Arr Fee $ 22.95 $ 20.95

Fee Presentation- 2014 Forecast- Oct Prelim Results as of 11-14-14.xlsx, FIS P&L Slide for Mtg 

# 2015E 3,368 1,702 25 5,095



# $ 14.05 6.40 20.45

6.40

85.29

46.32

38.97 28.92

9.35 0.56 $ 0.14 Proposed Fee Effective 1/1/2015 $ 14.05 $ 6.40 $ 20.45

Page 10 of222014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations

INTERNATIONAL FACILITY 2014 YTD through Oct Prelim 11/10114



# IJ2014YTDdl~ >112013-20141 '13

_ '14 I I 2015 l I '14-'15 Escalations 2013 A 

## r d 2014 Forecast Frcst Impact Forecast Impact nnua IZe Variance O&M Expenses Charged Directly to the Airport 2014 2015 Cost Centers: IAnnualiz.ed for 22 pay periods YTD. 

# I International Facility

Labor 6,036 5,978 5,888 (148) 

### $ (0.03) 6,035 

### $ 0.03 2.5% Construction Contracts (511450) 189 (36) 189 194 0.00 2.5% Elevator I Escalator contract maintenance 1,165 1,231 1,231 67 0.01 1,262 0.01 2:5% Cleaning Contract 3,349 3,564 3,564 215 0.05 3,653 0.02 2.5% Baggage Belt /loading Bridges 7,174 6,270 6,684 (490) (0.11) 6,851 0.03 2.5% Security Guards 1,883 1,694 1,883 1,930 0.01 2.5% Customer Service Reps & Bag Handlers 1,439 1,671 1,671 232 0.05 1,713 0.01 2.5% Mechanical Maintenance 360 355 355 (5) (0.00) 364 0.00 2.5% Environmental Maintenance 0 1 1 1 0.00 1 0.00 2.5% Other Contract Services 38 

### 84 84 46 0.01 86 0.00 2.5% Utilities 2,034 2,827 2,827 793 0.18 2,898 0.01 2.5% Miscellaneous exc GASB 49 construction contract pmts {468) (2) (2) 466 0,10 0.00 All Other International Facility 782 968 968 186 0.04 992 0.00 2.5% All Other Areas 32 32 0.01 899 0.17 Total Direct Costs 

### $ 23,981 

### $ 24,605 

### $ 25,311 

### $ 1,330 

### $ 0.30 

### $ 25,080 

### $ (0.05 Correction to annualiz.ation of Super Bowl costs. Adjustment for 2015 budget cuts as Other Costs of1B-14. Emergency Services 

### $ $ Policing & Traffic Police- Administrative & Clerical and Other Snow& 

### tee 448 951 943 495 0.11 582 (0.07) Other General Operating & Maintenance Costs 1,777 1,086 1,086 (692) (0.15) 1,113 0.01 2.5% Public Uab, Prop Damage, Workers Camp. 827 708 708 (118) (0.03) 726 0.00 2.5% Other Units 4,058 3,126 4,058 4,160 0.02 2.5% Total Other Costs 

### $ 7,111 $ 5,871 

### $ 6,795 

### $ {315) 

### $ (0.07) 

### $ 6,581 $ (0.04) Rent to the City 

### of Newark. 9,135 9,135 9,354 219 0.05 9,354 Total Dir O&M Exp. Charged 

### to Airport 

### $ 40,227 

### $ 39,611 

### $ 41,460 

### $ 1,234 

### $ 0.27 

### $ 41,014 

### $ (0.09) Direct Prorated Expenses (Aviation, Engrg, Police, Main! general expenses benefiting all facilities) 3,714 3,632 3,718 4 0.00 3,811 0.02 2.5% Allocated Expenses (Administrative and Development expenses benefiting aU facilities, APSF and CHRP allocation to FIS) 11,820 11,807 12,535 716 0.16 12,849 0.06 2.5% Fixed Charges International Facility 27,274 28,521 28,521 1,247 0.28 30,857 0.47 All Other Areas Total Fixed Charges 

### $ 27,274 

### $ 28,521 

### $ 28,521 

### $ 1,247 

### $ 0.28 

### $ 30,857 

### $ 0.47 Total Cost Before Credits 

### $ 83,034 

### $ 83,572 

### $ 86,235 

### $ 3,201 

### $ 0.55 

### $ 88,531 

### $ 0.38 Credits International Facility FIS 

### I 

### GTC fees (74,877) (85,127) (83,354) (8,478) (1.88) (79,922) 0.69 Rentals & Other (not Concessions) (5,063) (5,240) (5,240) (177) {0.04) (5,371) (0.03) 2.5% Concessions Space credit on non-Engrg costs (3,424) (3,697) (3,796) {372) (0.08) (3,938) (0.03) 2.5% All Other Areas Total Credits (83,363) (94,065) {92,390) (9,027) (2.00) (89,231) O&M Reserve for recovery of extraordinary O&M ltem1 (d) Direct Operating Expenses (reduced by concess. %) 22,535 23,719 23,502 Reserve Allowance Goal (1/6 of dir oper expenses) 3,756 3,953 3,917 Starting Balance (from previous year) 4,314 3,756 3,953 Extraordinary O&M ltems (1/2 of item over next two years) 635 600 600 Ending Balance 3,679 3,156 3,353 Replenishment Amt to reach reserve allowance goal 77 797 564 (0.05) Ending Reserve Allowance 3,756 3,953 3,917 Total Cost 

### $ (252) 

### $ (10.493) 

### $ (5,358) 

### $ {5,106) 

### $ (1.45) 

### $ (136) 

### $ 0.97

Inti Fac Page 11 of222014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations

INTERNATIONAL FACILITY
2014 YTD through Oct Prelim 11/10!14 2013

# I,2014YTDll~ ;!12013-20141 '13

# ~ '14 

# I I 2015 .l'14-'15l Escalations A 

### r d 2014 Forecast Frcst Impact Forecast Impact

nnua IZe Variance Activity (000 passengers) See FIS pax tab 2.9% International Arrivals 2,984 3,274 3,274 290 0.06 3,368 0.02 International Departures 1,521 1,682 1,682 162 0.04 1,702 0.00 2014- Current yld (Nov}+JJQ Domest!c Arrivals and Departures 2 4,507 

### Fee Federal Inspection Service (FIS)- $15.75 eff 1/1/14, $14.4 eff7/1/14. $ 14.85 General Terminal Charge (GTC)- $7.2 eft' 1/1/14, $6.55 eff7/1/14. 6.80 International**Arrival~** $22.95 eff 1/1/14, $20.95 eff 7/1/14. $ 21.65 International Departure and Domestic Arrival/ Departure
- $7.2 eff 111/14. $6.55 eff 711/14. $ 6.80 Net Revenue Total Revenue {fees and rentals) $ 79,939 Total Expenses including concessions credit 79,687 Net Revenue $ 252

Forecast Net Revenue with original pax forecast and no fee change Total Revenue (fees and rentals) Total Expenses including concessions credit Net Revenue
Difference due to forecast change 1/2 of difference 21 4,977

$ 84,994

84,275 $ 719

Forecast Net Revenue with original pax and expense forecast and no fee change Total Revenue (fees 

### and rentals) 

### $ 84,826 Total Expenses including concessions credit 84,648 Net Revenue 

### $ 178 Difference due 

### to forecast change 1/2 of difference 21 4,977

$ 15.08
6.88 $ 21.95

$ 6.88

$ 88,594 83,237 $ 5,358 19 0.00 25 0.00 10120114 frcst: 2015**~** JJQ modlned 471 0.10 5,095 0.02 12/1/14


### a'g $ 0.23 /pax $ 14.05 $ (1.03) 

### a'g 0.08 !pax 6.40 (0.48) $ 0.30 /pax $ 20.45 $ (1.50)

$ 0.08 !pax: $ 6.40 $ (0.48)

$ 8,655 (1.92) $ 85,293 0.66 3,549 0.79 85,157 0.39 $ 5,106 (1.13) (b) $ 136 1.05

Forecast Net Revenue with current pax forecast and no fee change $ 92,264 84,275 $ 7,989 $ 

### $ 7,270 3,635 Target Net Revenue for 7/1/14 fee change,
Forecast Net Revenue with current pax forecast, original expense forecast, and no f $ 92,096 Note: see "Fee Presentation- 2013 Forecast- Oct Prelim Results- Basis for 1·1-14 84,648 fee change- with April 2014 Prelim Pax Forecast" file for**calcu~tion.** $ 7,448 

### $ $ 7,270 3,635 Net Revenue "credit" for second half of 2014 due to change in passengerfo

(a) The 2014 International Facility forecast reflects slightly lower O&M and settlement costs than previously forecast, as well as conl!nued strong passenger numbers and rental revenues (rentals are credited against expenses). (b) (c) Settlement details can be found in the "Significant Settlements" tabs. (d) In the Final Decision of the Department of Transportation, dated June 14, 2005, the DOT stated "it is true the Port Authority is entitled to recover its costs incurred" and 'contingent costs can be recovered from reserves set aside for such contingent expenses that vary over lime" (p.17). Accordingly, the Port Authority proposes to fund an Operating and Maintenance Reserve Fund (OMRF) to fund contingent expenses similar in nature to those accepted as recoverable in principle by the DOT decision, The Fund will be set equal to one-sixth (two months) of the rate year's projected Direct International Facility Expense. To ease the initial burden on the airlines, in 2006 the Fund will only be funded at one-twelfth (one month) of projected 2006 Direct International Facility Expense. For 2007 the Fund 

### wlll be increased up to the amount equivalent to one-sixth of the projected 2007 Direct International Facility Expense. In subsequent years, if Direct International Facility Expense grows, the Fund will receive incrementa! amounts sufficient to maintain a level equivalent to one-sixth 

### of the projected Direct International Facility Expense for the year in which the rate will take effect (the Rate Year). In subsequent years, only the amount required to be added to the fund to reflect changes in the annual Direct International Facility Expense or to replace**"withdrawals~** {see next paragraph) 

### will be included in the rate base. When the Port Authority identifies an actual contingent expense, it 

### will make a "withdrawal' from the OMRF in the next Rate Year for which a new rate is calculated, Since the "withdrawal" 

### will reduce the level of the OMRF, the rate base for that year 

### will include an addition to the Fund equivalent to the contingent expense. For instance, in 2007, in addition to funding the additional one-twelfth of projected Direct International Expense, the rate base will include contingent expenses, if any, identified to have occurred In 2006 by the time the rate base is established. Since the rate base is generally established prior to the end of the year, any contingent expenses not previously identified for that year will be recovered in the next Rate Year. Each year, the Port Authority will provide 

### a schedule showing the level of the OMRF and any necessary withdrawals 

### or required additions. This Fund 

### will not appear on the Authority's official financial statements. The OMRF is not Intended to address any deficits or surpluses that occur because of variances in actual traffic, revenue or expense from projected amounts. By its nature, a prospective tariff methodology leaves both parties subjectto the effects of deviations from forecasts. (d) Operating and Maintenance Reserve Provision: 2012: 1/2ofTerm B- Bag Room Drainage- GASB49 Provision- A04921021**~** $69,000; 2013: 1/2 of 2012 

### + 1/2 of Term B- Meeler 1 Greeter Abatement GASB49 Provision- EWR-264.006- $1.2 million; 2014: 1/2 ofTerm 

### 8 - Meeler I Greeter Abatement GASB49 Provision- EWR- 264.006- $1.2 million.

Inti Fac Page 12 of 22Newark International Airport
Fuel Dispensal

2014 2013
SCHEDULED

NON-SCH TOTAL SQHEDULED NON-SCH

JAN 49,922,168 350,484 50,272,652

FEB 44,798,799 305,693 45,104,492

MAR 57,137,426 305,347 57,442,773

APR 54,167,369 402,617 54,569,986

MAY 56,078,959 370,115 56,449,074

JUN 58,872,753 413,600 59,286,353

JUL 61,408,877 300,461 61,709,338

AUG 61,689,451 172,796 61,862,247

SEP 54,940,344 457,121 55,397,465

OCT 56,649,957 **

NOV DEC MISC TOTAL 499,016,146 3,078,234 558,744,337

" Current year actuals are in bold

Per

K.Kachman I C.Chen Fuel Dispersal report

*"'

Per Allied report
Fuel Gal 55,839,161 305,867 48,518,660 291,449 57,172,453 313,438 58,995,537 425,921 59,260,989 373,723 59,424,592 333,353 61,903,024 317,136 61,220,663 237,620 54,815,580 502,534 57,355,753 364,052 52,374,258 397,020 53,985,280 423,219 680,865,950 4,285,332 Forecast- Scheduled On

**I~** (JJQ -1 012012014)

TOTAL

2013A 2014/E % Ch % Ch-Cumulative 2015F

56,145,028 Jan 55,839,161 49,922,168 -10.6% -10.6% 50,171,779

48,810,109 Feb 48,518,660 44,798,799 -7.7% -9.2% 45,022,793

57,485,891 Mar 57,172,453 57,137,426 -0.1% -6.0% 57,423,113

59,421,458 Apr 58,995,537 54,167,369 -8.2% -6.6% 54,438,206

59,634,712 May 59,260,989 56,078,959 -5.4% -6.3% 56,359,354

59,757,945 Jun 59,424,592 58,823,691 -1.0% -5.4% 59,117,809

62,220,160 Jul 61,903,024 61,408,877 -0.8% -4.7% 61,715,921

61,458,283 Aug 61,220,663 61,689,451 0.8% -4.0% 61,997,898

55,318,114 Sep 54,815,580 53,719,268 -2.0% -3.8% 53,987,865

57,719,805 Oct 57,355,753 56,208,638 -2.0% -3.6% 56,489,681

52,771,278 Nov 52,374,258 51,326,773 -2.0% -3.4% 51,583,407

54,408,499 Dec 53,985,280 52,905,574 -2.0% -3.3% 53,170,102 Forecast

Date
680,865,950

658,186,994 -3.3% -3.3°/a 10/20/14 661,477,929 0.5% 10/20/14

666,941,619

-2,0% -2.0% 5/23/14 671,610,210 0.1% 5/30/14

685,151

,282 Page 13 of 22

### 2014 Master Lease Fee

**True~Up** 

### and 2015 Forecast Variance Explanatiom



### FUEL 2013- 2015 

### 2013 2014 YTD 2014 2014 '13- '14 Forecast 

### '14- '15 Escalations Annualized Forecast Frcst Impact 

### (e) Impact Variance 2014 YTD through Oct Prelim 11/10/14
O&M Expenses Charged Directly to the Airport 

### 2014 

## I 2015 Cost Centers: Gallonage Fuel System

105% of Operator Charges Direct O&M's 1:11!ed 7/22/14 budget presentation. Also Includes purchase of 2 

# I
5,000 gal tankers @ $2SOK each, to be delivered in early 2015.



### All Other Areas Total Direct Costs Other Costs Emergency Services Policing 

### & Traffic

**Police~** 

### Administrative & Clerical and Other Snow 

### & Ice Other General Operating 

### & Maintenance Costs Public Uab, Prop Damage, Workers Camp. Other Units Total Other Costs Rent to the City of Newark Total Dir O&M Exp. Charged to Airport Direct Prorated Expenses Allocated Expenses Fixed Charges Gallonage Fuel System All Other Areas Total Fixed Charges Total Cost Before Credits Credits Total Credits 

### 29,399 845 $30,244

4 345 $ 349

$30,592

5,388 $ 5,388 $35,981 29,491 

### 29,491 666 666 $ 30,157 $30,157

2 2 266 266 $ 268 $ 268

$ 30,425 

### $30,425

5,264 5,264 

### $ 5,264 $ 5,264 

### $ 35,688 

### $35,688 92 0.0002 0.0021 (179) (0.0003) $ (87) $(0.0002) $ Adjustment for 2015 budget cuts as of 11·3· 

### $

(2) (0.0000) 2 0.0000 (79) (0.0001) 273 0.0000 $ (81) $(0.0001) $ 275 $ 0.0000

$ (168) $(0.0003) $ 32,242 

### $ 0.0034

(125) (0.0002) (c) 

# ,_:.!.:

$ 

### (125) $(0.0002) $ 

### 5,356 $ 0.0002 $ (292) $(0.0005) $ 37,598 $ 

### 0.0035

Total Cost 

### $35,981 $ 35,688 $35,688 $ (292) $(0.0005) $ 37,598 

### $ 0.0035 Activity Gallons 

### (OOO's) 

### 685,151 Airport Services costs applied to Fuel Farm on a per gallon basis 

### 663,797 (21 ,354) 

### $ 0.0021 (d) 665,763 $(0.0002) JG extrap based on YTD gal. 

### $(0.0004) $(0.0004) GASB49 for dyke m0<1t lead paint abatement, plus other maintenance wotl<, per Z015 budget.



### 2.5% 2.5%

Includes monthly charges of $1,833 

# * 1.5 months* 20 replacement Hydrant carts purchased for $220K per vehicle and delivered between Oct and Dec 2015, per A.Nuzzo!ese 3/17/14. PerKO 10-2-14, new purchase price Is $370K so $1,833 prorated In $3,083.



### See Fuel Gal tab per JJQ 10/20!14 

## (a) The 2014 Fuel Fee forecast reflects a lower fuel consumption forecast. The anticipated purchase by 

## the operator of 2 5,000 gallon refuelers is assumed to take place early in 2015. (b) 

## {c) There are no significant settlements forecast for 2013 or 2014. {d) YTD through October, fuel consumption is

**~3.3%** 

## behind 2013. The current 2014 forecast is -3.1% under 2013. (e) 2015 includes a $1.9 million GASB49 provision for the cost of lead paint abatement an the dyke moat walls.

FUEL Page 14 of22LaborYearTotalCostSnowInchesCost/Inchi11erInch200312,278,76962.5196,4602,248,56835,97720046,910,28128.5242,4661,376,58748,301200511,033,85952.9208,5802,480,67446,89420068,302,61126.9308,6471,084,66640,32220079,006,40420.8433,0001,399,68467,29220088,808,09318.6473,5531,049,47456,423200911,923,42632.1371,4462,295,98171,5262010...14,872,89759.0252,0832,876,52848,755201122,294,44148.9455,9194,564,41293,34220128,724,69112.1721,049936,80477,422201312,164,18330.4400,1381,808,75059,498201421,339,02251.7412,747*4,743,52891,751Averagecostperinch2009-2013:440,127*Octfinalcosts;snowfallthroughApril16,2014.Estimatefor2014:CoststhroughOctlessvehiclesAnnualizeVehiclesLaborChemicalsOtherPAFASFFIS101010Snowfall(in)**Estimatefor2015:VehiclesLaborChemicalsOtherPAFASFFIS373737**Averageofthelast5yearsactualsnowfall2009-2013.70,108.5017,817,2564,695,688731,131758,2041,582,91325,585,19216,919,8463,242,411943,0454,789,6022,610,1392,706,7885,650,99815,757,52710,394,1222,019,343581,988ChemicalsIMaterialsiinch978,72715,660864,11030,3201,594,42430,140750,92927,9161,545,24874,2911,621,04087,1533,156,69498,3392,315,59539,2473,646,68974,574791,43065,4072,612,99685,9543,906,49475,56172,704Updatedwith<-------------2013land%'sEsc2%2%2%2%Veh/EguieRentalContractsIOtherTotali12erinchiQerinch2,077,46633,2396,974,008111,58412,278,7691,958,36668,7152,711,21895,1306,910,2812,286,78243,2284,671,97988,31711,033,8592,695,674100,2113,771,343140,1998,302,6113,528,353169,6322,533,119121,7859,006,4043,375,719181,4902,761,860148,4878,808,0933,570,620111,2342,900,13190,34711,923,4263,699,33062,7015,981,444101,38014,872,8973,818,79878,09410,264,542209,90922,294,4414,221,125348,8532,775,331229,3668,724,6913,853,413126,7573,889,024127,92812,164,1833,521,76668,1199,167,235177,31621,339,022145,528151,786AveragecostIyrfrom2009-2013:$13,995,927***Includes2010"holidaystorm"costsof$1,764,190whichwerereimbursedbyFEMAin2011.Thatreimbursementisnotincorporatedintothesecalculations,butthereimbursement wascreditedtothefees.SnowPage15of222014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations



### ASF

2014 

### YTD through 

### Oct Prelim 11/10/14 

### 2014 2013- 

### 2015 2014 YTD 

### 2014 '13 '14 '14-'15 2013 Annualized Forecast Frcst Impact Forecast Impact Escalations (a) Variance 

### (b) 

### O&M Expenses Charged Directly to the Airport 2014 

### 2015 Cost Centers: Adjustment for 2015 budget cuts as of 11-3 Systems

Communications and Signals Electric & 

### Gas Distribution Storm, Sanitary and Water Distribution Air Terminal Highway & Restricted Service Roads 

### AU Other Areas Total Direct Costs Other Costs Emergency Services Policing & Traffic Police- Administrative & Clerical and Other Snow& Ice Other General Operating & Maintenance Costs Public Liab, Prop Damage, Workers Camp. other Units Total Other Costs Rent to the City 

### of Newarl<. 

### Total Dir 

### O&M Exp. Charged 

### to Airport Direct Prorated Expenses Allocated Expenses 

### Fixed Charges Systems PA Space 

### All Other Areas Total Fixed Charges Total Cost Before Credits Credits
Total Credits 

### Total Cost Activity Take-off Weights {million lbs) Revenue Producing Land (acres) 

### $

$



### $ 986 259 3,630 9,930 14,804



### 37,948

1,546 1,678



### 291 3 015 44,478



### 59,282

36,228 9,683 

### $

$



### $ 1,147 

### 422 3,454 11,984 

### 17,007

27,754 3,271 

### 1,441

243 3,091 

### 35,799

52,807

35,367 9,880 

### 1 '147 

### 422 3,454 11,984 

### $ 17,007



### 27,333 3,242 1,441



### 243 3 091 $ 35,350



### $ 52,357

35,367 9,880 

### 14. 161 $ 

### 0.0056 1,035 

### $(0.0039) 163 $ 0.0057 433 $ 

### 0.0004 (176) $(0.0061) 3,540 

### $ 0.0030 2,055 

### $ 

### 0.0715 12,284' $ 0.0104 $ (911) (0.0317) 2,203 $ 0.0766 

### $ 16,381 

### $(0.0218) Annualized for 22 pay periods YTD. 

### (10,615) (0.3691) 28,700 

### 0.0475

1,697 

### 0.0590 2,019 (0.0425) (237) (0.0082) 1,477 

### 0.0013 (48) (0.0017) 249 0.0002 75 0.0026 (c) 3,168 

### 0.0027 $ 

### (9, 128) $(0.3174) $ 35,613 $ 

### 0.0091

$ 

### (6,925) $(0.2408) $ 51,994 

### $(0.0126)

(861) (0.0299) 35,484 0.0040 196 0.0068 10,098 0.0076 

### $ 45,912 $ 45,247 $ 45,247 $ (664) $(0.0231) (d) $ 

### 45,582 $ 0.0116 $105,194 $ 98,054 $ 97,604 $ (7,589) $(0.2639) $ 97,576 $(0.0010)

$105,194 $ 98,054 

### $ 97,604 $ (7,589) $(0.2639) $ 97,576 

### $(0.0010) 

## or $ (8,583) per acre 

### $ (32) 32,979 32,117 (861) $ 0.0981 (e) 32,379 

### $(0.0304)

1,723 1,723 

### $ 0.0016 $ 

## or $ per acre 

### $ 2.5% 2.5% 2.5% 2.5%

5.0%

See SncwCa!culafion 2.5% 2.5% 2.5%



### 2014 2015 See FF 

### Wts tab 1.0%
perJJQ 10/20/14 

### (a) The 2014 ASF forecast reflects lower Policing and Traffic costs after implementation of the post-ARFF and a reassessment of existing posts, as well as lower hourly rates due to filling posts with new recruits from the last two classes. (b) 

### (c) Manager's Office Labor (d) Settlement details may be found in the "Significant Settlements" tabs. (e) 2014 take-off weights are forecast to decrease 

## by -2.6% compared to 2013. October YTD 

### weights are -2.7% lower than 2013 YTD.

ASF Page 16 

### of22

## ($000's)
Tours


# Police Insurance 

# Mobile Equip 2014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations FAR 5-Minute Response

2013 2014 

# YTD 2014 2013. 2015 

# Final Annual. Forecast 

## 2014 

# Var Frcst 4,022 4,036 4,036 15 4,036
4,130 2,436 2,399 -1,731 2,639 65 65 0 67

9 9 

## 0 9 

# Space Charge 30 27 27 -3 28 

# TSAReimb (131) (131) (131) 0 (131) 

# ACDTVf/c 566 566 566 0 566 

# ACDTVO&M 118 118 118 0 150 

# Other Mgmt Fee 317 184 187 -130 207 

# Total $5,104 $ 3,199 3,240 $(1 ,864) 3,535 

# Cost/Tour $1,269 $ 793 803 

# $ (466) 876 

# Escalations 

# I 2o14 

# I 2o15 

# I

5.0% 2.5% 2.5% 

## 2.5% 

# No mgmt fee on fie

The 

# 2014 FAR fee is currently reflecting lower than expected labor costs lower hourly rates due to filling posts with new recruits from the last two classes, and filling of fewer tours on OT.
The 7.5% management fee is not applied to Airport Checkpoint Digital TV (ACDTV) fixed charges.
TSA reimbursements are 

# $131,400 per year from 

# 10/1/12 through 

# 9/30/15.
ACDTV f/c actual is amortization of 

# $4.3 million investment 

# over 10 years beginning 

# 2012, per Lease Acctg calculation. The "annualized" fixed charges are actual amortization costs, reflecting the initial investment, plus additional construction which is not being included in the fixed charge calculation.

2013 

# Actual Tours Jan Feb March April May June July Aug Sept Oct Nov Dec Total 341 308 341 330 341 330 341 341 330 341 330 341 4,015 

# Schedul 0 0 0 0 1 0 0 1 1 1 7 

# Charter 341 308 341 330 342 330 342 341 330 342 331 342 4,022 2014 

# Actual Tours Jan Feb March April May June July Aug Sept Oct Nov Dec Total 341 308 341 330 341 330 341 341 330 341 3,344 

# Schedul 1 2 0 1 1 2 3 5.1 2 2 19 

# Charter 342 310 341 331 342 332 344 346 332 343 3,363



# FAR Page 17 of22

### 2014 Master Lease Fee

**True~Up** 

### and 2015 Forecast Variance Explanations



### 2014 YTD through Oct Prelim 

### 11/10/14
O&M Expenses Charged Directly to the Airport Cost Centers: CH&RP

CH&RP Energy CH&RP Other O&M All Other Areas Total Direct Costs Other Costs Emergency Services Policing & Traffic

**Police~** 

### Administrative & Clerical and Other Snow&lce Other General Operating & Maintenance Costs Public Uab, Prop Damage, Workers Camp. Other Units Total Other Costs Rent to the City of Newark Total Oir O&M Exp. Charged to Airport Direct Prorated Expenses Allocated Expenses Fixed Charges CH&RP (tot constr. pmts) All Other Areas Total Fixed Charges

Credits Total Credits Total Cost Basis for CH&RP Calculation O&M fatal Cumulative Construction Payments at Year End CHRP 

### 2013" 2013 2014 YTD 2014 2014 Annualized Forecast Frcst Variance



### 4,186 6,593 6,593 2,407 3,467 3,223 3,223 (244) $ 7,653 

## $ 9,816 

## $ 9,816 $ 2,163

1,226 1,077 1,077 (148)

145 120 120 (26) 

## $ 1,371 

## $ 1,197 $ 1,197 

## $ (174)



## $ 9,024 

## $ 11,013 $11,013 

## $ 1,989

1,256 1,978 1,978 722 (b)
Total Construction Payments as of year-end 

### 85,237 94,471 93,471 8,234
" " " " 

### $85,237 

# I $ 94,471 $93,471 

## $ 8,234



## $ $ $ $


## $ 9,024 

## $ 11,013 $11,013 

## $ 1,989 $85,237 $ 94,471 $93,471 

## $ 8,234 2015 Forecast Escalations

(d) 

### 2014 

## I 2015

6,758 2.5% 

### 3,304 2.5% 

### (911) $ 9,150 Adjustment for 2015 budget cuts as of 11

**~ 3~**  

### 14,



### 1,104 2.5%



### 123 2.5% 

## $ 1,227



## $ 10,377

2,027
96,596
" 

### $ 96,596



## $


## $ 10,377 

## $ 96,596



## (a) The 2014 CHRP estimate reflects higher fuel costs due to the sustained cold weather this year which required a switch to fuel oil under our interruptible service contract. It also reflects higher than expected electric costs due to high natural gas prices. Finally 1 

## the estimate reflects more construction than originally forecast this year on the High Temperature Hot Water Generator replacement. 

## (b) 30% of energy costs per CH&RP agreement. 

## (c)

CHRP Page 

### 18 of22Asof4/24/14TOTA.tASFTOTA.LPA.FTOTALMonoTOTALCHRP----------------------------TOTALFAR,.,.,_...,...'-NV,_-..,,,.-uu'"'"""'"'""cn...ou"''"'uA04L6CA04-39S"'TERMINAL8ANTIRAMPROTECTIONCA04319A04MFCA04-398."'TERMINALFRONTAGEPROTECTIONA04473ACA04-473"'TermBRehabElect&MechSstemPhaseIIA0449SCA04-495306TERMS-FISSUBSTATIONEMERGENERATORCAPUPGRADEA04495ACA04-495"'TERMB-FISSUEISTATIONEMERGENERATORCAPUPGRADEA04530CA04-530306RehabofHTHWPiininTerminalBCrawl5aceA04572CA04-572306TerminalBInfrastructureandUtiI'ModificationA04584CA04-584"'TerminalBRehabofMechanicalandElectricalssA04599CA04-599"'InstallationofreconditionairunitsforaircraftA44017ACA44·0173"LOWERLEVELEXPANSION&B1VERTICALCIRCA44025ACA44-025"'B2CONNECTOREXPANSIONA44025BCA44-02S"'63CONNECTOREXPANSIONA44026CA44-026300MITER/GREETERAREATotalTerminalBInternational2013SlgSettleTerminalBPassengerFigureRate1/120134120139/1/201:11/1/2013611/20192014201411/1/20134/1{20131/1/201311/20131/11201320144,634,0225.193%."lSlS20""20"""""""EWR·SignificantSettlementsforCostRecoveryAreas2013."'.,.,,""•"""L"Q"141634141634136031,134"136050.002960.00296Iassene10,765,4297,169637136S4013634013,0951091'98210.002140.00285e10,765,429266115011,813598611885986950,04679,170'316,6820.068870.20660Iassene18,037,3861,0597801059780685795,715"685790.014910.01491Iassen7,273,2105,818,8965,818,896376,54531,37972196510,047760,08188Iaosen7,273,21013assene5,352,29413Iassene3,524,8831724,8041,724,804121,81510,151'20,3030.004410.02649Iassene1016"29311,0819521OB1952764146,368'573100.012460.01662Iassene1,609,20789B621898,621634665289"634660.013800.01380Iassene90,155,64475,29294126453626536186831557"18,6830.004060.00406Iassene103,140,1008,373,060146,563146,56310,351'"n10,3510,002250.00225Iassene1031401008,373,06013/passenge11.409,6292..103,03523,159,11423,159,1141,675,07614Z,716760,9290.165470.36102385,945,587106,358,076215,856,457Page19of22

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### ~Asof12/1/2014EWR-EstimatedSettlementforCostRetoveryAreasZ015TDTI\l.ASFA04S07CA04·507znRehablllh!tlonOfToxiw•PS/1/201'"18704,9&118,7114,9810A04512CA04·512U1Runwo11EMASin>tall>rt:ionFotR5AlmRelocBrewstetRd.&SiteWork3/1/2015"8,Z!l3,683(8,293,6830A04516CA04·Sl6211RunwanEMASln•tall•tionForRSAlmr<Nement•9/1/2015"6,125,694(6125,6940A04519CA()4-519211ReIacementofGuardPomE-2&o6/1/2015"694,6490694,64955,020A04MSCACl4·30321liMPROVl'MENTSTONAVIGATIONAIDSCA04-309"9g9999,Z401\04455CA04-455UlReh•bRunW<l4L-22R6/1/2015"35.110,056(35,11CI.056)0A0413CA04-316211PERIMETERlNTRl!SIONDETECTIONSYSTEMCA04·3165/1/2015"8,6381668638166"2015FullAmortizedlnvertment(672172TOTALPAF78,566,475694,649(617,152)A04514CA04-5l4125AirtruinBaoeVehldeSubs•tomLifedeOverhoulu2015"s000000050000003960252015FullAmorti<edlnve>lment953,118TOTALMono5,000,0005,000,000(557,0931IA!!4498CACl4·49a350ReplaoementofHTHWGeneroto"AtCHRP12/1/2015253,979939"03,979,939278,0722015FulAmortizedInvestment76152TOTAlCHRP3,!l79,9a93,979,939201,920TOTALFARIA!!4584CA.04-584306TerminalSRehabofMedumloalandEleolrloaiS•12/1/ZOlS2.53,000,()(]0003,000,000209,6052015FulAmortl<edlnvo>lment279,182TotalTerminalaInternational3,000,0003,000,000(69,577)•Positivevaluesforfullyinvestmentdrop-offuofgrantapplicationsthatdonotcoincidewithsettlements.Le.thegrantmaybefullyamortizedayearormorealterthesettlement"Totalprojo<ctcostmayIncludeprojectcomponent\;thatareset!Ungtootherleasecostc..nters.TPCIsshownherefor!nformaUonelpu!posesonly.TPCisnetofGASB49provisions.2015SigSettlePage21of22'/1000LBS385387931,057,34513,15389831858,879"1000LBS16,486,44516,4864458,192,76216,486,445•lOOOLBS51256946.1256946125,6944,585'32,0950.001350.00231/lOOOLBS2,315,495340,1981,520,8472,315,496''/lOOOLI\S228695G21a00000021870,3162.1,86962100CILBS97,321,51962,211,46350000,00097,321,519'/lOOOLES46.198,84133608166l2560&7421.198841{6721720.028210.02821/1000l8S4,585(640,077){0.02687){0.112590)2ll,176,4<14167,859,3ll117,398,497198,176,4:J5[033,002'03,0020.00).390.01562/1000LBS95,!598,5923,500,0008,500.00087,H8,59l953,1182.3Z13733,002{920,11613,500,000s,soo,oooa7,19B,S9223,17323,1700.007040.08446/•qft20,492,03116,512,09120,492,0316,1520.02319(0.0:!31323,173(52,979)(0.01609)0.0513320,492,031l.fi,Sl2,091zo,4sz,on17,40717.41>70.003840.().160814,019,719179,1820.061370.08480"17,4G7(261,715)(0.057SB)(O.a3872J9,744,5232,724,8045,724,1.1044,019,7192:o13 Flr.IAL TOTAl. PAF 

# "' PHASE 1A MONORAIL GALLONAGE CH&RP FAR INTERNAT10N 13ALANCEOF FUEL AL FACILJT'f AIRPORT
O&M Expe-nses Charged Directly to the Airport
Direct Cost Centers: PAF AlrlieiO Security 14,384,656 14,384,656" Operations 6,1-56,711 0,156,711 Malnlelll!nce 10,015,269 10,Q15,2S9 Systems CommunicaUons and Signals 985,848 985,E48 Electr:io & Gas Dlstribl.lllon 258,952 258,952 Storm, Sa111tary and Water Dlsifibution 3,629,916 3,629,916 AirTaminal Highway & Restricted Service Roads 9,929,694 9,929,694 Monorail

Monorail O&M Contrao:l (excl Mid Life- see FXd Chrgs 14,144,239 14,144,239 Monorail Olher(excl Mld LJfe- see Pxd Chrgs) 10,421,011 10,421,011

**Gallon~ge** Fuel System

1 05% of Operator Charges 29,398,665 29,398,665 Direc\O&M's 845,252 845,252 CH&RP CH&RP Energy 4,156,357 4,188,357 CH&RPOOerO&M 3,4<16,573 3,4£$,573 Aircraft Boarding Gate Seculily 4,365,963 4,221,409 lntemaflona! Faciltty Labor 6,036,099 6,036,099 Construction Contracts (511450) 189,413 189,413 Elevator I Escalator contract maintenance 1,164,634 1,164,534

**c~aning** Contract 3,346,794 3,348,794 Baggage Belt/ Loading Bridges 7,173,724 7,173,724 Sewrtty GUa!ds 1,882,822 1,88:1.,822 Customer Service Raps & 6ag Handlers 1,439,123 1,439,123 Machanical Maintenance 360,184 360,184 Environmental Maintenance 

# '" 

# "' Other Contract Services 38,096 38,098 UlliRies 2,033,812 2,033,812 Miscell;neous exc GASB 49 construction contract prrm (467,860) (467,860) All Other lrrtemational Facility 781,911 781,911 All Other Araas 209 673,710 £$,234 209,673 710 Total Dirac! Costs 346,043,918 30,556,636 14,804,410 24,499,015 30,243,917 7,652,930 4,221,409 23,981,102 209,873,710 Airport General Costs Emergency Services 4,254,804 4,254,804 Policing & Traffic 37,948.212 37,94S,212 Police- Administrative & Cle-rical and Other 11,481,098 11,623,928 snow & Ice 12,129,574 6,044,344 1,545,567 448,360 2J38,2BO Other General Operating & Maintenance Costs 22,644,50$ 1,641,906 1,677,652 484,620 4,014 1,225,565 

# "' 1,777,U9 16,1149,569 Automnlive Servicss

**13,8~1** 7,148 7,460 

# "' 

# "' '" 

# '"' Janitorial

**10,04~** 

# ' (5,925) 1,131 

# " 4,743 3,894 Care of Grounds 1,720,125 331,694 913,534 73.491 12,559 123,597 411,262 Structural Maintenance 1,348,559 80,544 10,821 28,319 

# " 2,192 960,980 218,829 Mecllanical Maintenance 1,838,703 3,659 114,037 49,969 1,3g5 1,128,236 134,184 363,535 Eleol!ical Maintenance 2,4S3,596 886,944 129,762 300,655 1,]Bg 77,939 461,699 266,136 Paving 968,859 331,909 167,187 30,942 3,848 91,949 157,3113 Environmental 81,137 136,593 

# '" Maintenance ·Admin, Clsrioal & other 6,192,825 7,441,527 Operations ·Administrative & Clerical and Other 7,986,824 7,986,824 Public Llabillty, Property Damage & Workers Comp 6,673,517 1,5.55,4-53 291,152 793,425 344,504 145,393 826,771 2,713,434 Other Units 15 546 096 3,015136 4,058,248 8619,023 Total Airport General Costs 110,677,804 15,49e.5os 44,477,718 1,278,046 348,519 1,370,958 

# "' 7,110,667 41,944,255
Rent to the City of Newark 84,368,029 9,134,780 75,233,250
Total O&M Expe-nses Charged Directly to the Airport S41,U69,751 46,053,144 59,282,128 25,777,061 J0,59Z,436 9,023,888 4,221,492 40,226,548 327,051,215
Direct Prorated Expenses 30,887,085 3,714,036 27,202,158
Allocated Expenses 27,653,074 11,227 1,388,032 1,255,907 316,606 11,819,625 13,545,646
Fixed Charges PAF 28,3111,790 28,381,790 Systems 36,228,214 36,2211,214 Phase 1A 3,380,912 3,380,912 PA Space 18,509,864 9,8113,394 10,301,259 Monorail (Construction Factor, Including Mid Life) 49,026,9315 49,026,936 Gallonage Fuel System 5,388,343 5,31111,343 CH&RP 85,236,889 85,236,889 FAR 592,759 566,167 International Facility 27,273,915 27,273,915 AU Other Areas 47,1117,5611 47,187,562 Total Fixed Chames 301,207,1114 28,381,790 45,911,608 3,380,912 49,025,9% 5,31111,343 85,236,889 556,167 27,273,915 57,4811,821
Total Cost Before C.-edits 900,837,095 74,446,161 105,193,737 3,380,912. 76,192,028 35,980,779 96,616,684 5,104,264 113,034,124 425,287,840
Credits Parj(lng & Storage Fees (6,455,975) (6,698,337) International Facility FlSIGTC lees (74,876,592) (74,876,592} Rentals & other (not Concessions) (5,062,720) (5,062,720) Concessions Space

**crad~** .. (3,425,157) (3,423,507)

**AlrTr~ln** Rsvenues Rental Car (6,564,025) (6,564,025) Bus Service (500,000) (500,000) NEC Fare Box (9,459,491) (9,459,491) PFC Debt Service Credit and Other 87 261 Total Credits (106,343,960} (6,698,337) (16,436,255) (83,362,819)
Total Cost

**794,4~3,135** 57,747,624 106,193,737 3,3BD,912 59,755,773 35,980,779 95,516,664 5,104,264 (328,695) 4.2.5,2S7,B40
• Total Construction Payments as of 12131113,

**~** -6.03% FAR Ex ense Detail
Police

**4,1~0** DlrectO&M Insurance 

# " DlrectO&M Mobile Equipment 

# ' Direct O&M +Auto svc Gen'l ACDlV fixed

**Ch~rges** 

# "' Fixed Charges" "30S" ACOTVO&M 

# "" DlrectO&M Space Charge 

# " Allocsted TSA Reimbursement (131) AlloGB\ed Manag..ment Fee 

# "' -----s:104 AlloGBJed

**?n1~**

# Newark Liberty International Airport Flight Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2015 to December 31, 2015

Public Aircraft Facilities Charge Factor Major Elements of Costs: (a) Fixed charges on Port Authority Investment in Public Aircraft Facilities. (b) Direct labor, materials, payments to contractors and suppliers, costs charged to: 1) The Emergency Service functions at the Airport (whether pertonmed by the Airport Police Section or other section or other Port Authority organizational unit or units as may hereafter pertorm the same or similar functions). 2) Other costs for the operation, maintenance, repair and replacement of Public Aircraft Facilities, and the pro-rata share of the cost of snow and ice removal.
Airport Services Charge Factor Major Elements of Costs: (a) Fixed charges on Port Authority Investment in Airport Services. Total

(b) Direct labor, materials, payments to contractors and suppliers and other costs for operation, maintenance, repairs and replacements charged directly to Airport Services, and the pro-rata share of the cost of snow and ice removal; excluding such costs charged to Port Authority non-revenue producing areas. (c) Direct labor, materials, payments to contractors and suppliers and other costs charged directly to Policing and Traffic functions at the airport. {d) Labor charged directly to the Airport Manager's Office.

Phase 1A Charge Factor Major Elements of Costs: Total $28,176,357

24,591,248 49,607,146 

## $102,374,752

$45,581 ,685

20,126,596 28,699,905

3,167,777 

## $97,575,963

(a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Pertormance Bonds; 3) insurance premiums or charges; 4) direct payroll 

## & expenses of Port Authority employees 

## & agents engaged in pertormance of the work. (b) Engineering Services including: 1) payments to independent consultants 

## & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 10% liquidated overhead. (e) Financial expense.

Monthly Multiplier 

## = Total Phase 1A Costs Less: PFC Funds Net Phase 1A Investment
0.007481 $87,661,094 (50,000,000) 

## $37,661,094

Cumulative Phase 1A Cost: $37,661,094 x 0.007481 X 

## 192 months 

## = $54,094,588 Less: 2014 Cumulative Phase 1A Charge Factor Annual Phase 1A Cost (50,713,676) 

## $3,380,912

## Newark Liberty International Airport Flight Fee Calculation (Continued) Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2015 to December 31, 2015

Maximum Take-off Weight: Total Maximum Weight for Take-off of all aircraft using the airport except such aircraft as are not required to pay a flight fee such as government flights, etc. Acreage: Total annualized sum of Revenue Producing Land Total Developed Land Area at the airport occupied by the Public Aircraft Facilities. Percentage Public Aircraft Facilities Charge Factor 

## $0.3130 X 

## $102,374,752 X 

## 17,734,000,000 $4,010,000 32,378,952,448 Airport Services Charge Factor 

## $0.3370 X 

## $97,575,963 X 

## 17,734,000,000 X 

## $4,625,000 32,378,952,448 Phase 1A Charge Factor 

## $3,380,912 X 

## 1,016.311 1,722.707 Aircraft Parking Credit 

## Aircraft Parking Revenue 

## = $5,994,306 Total All Aircraft Weight 32,378,952 Over/Under Reported Amounts From Prior Years 

## Over/Under Amounts from Prior Years 

# = -=='0:,-,=- Total All Aircraft Weight 32,378,952 Flight Fee 

## Public Aircraft Facilities Charge Factor Airport Services Charge Factor Phase 1A Charge Factor Subtotal Aircraft Parking Credit Over/Under Reported Amounts
2015 Flight Fee 

## $4.3666 3.4462 0.0616 7.8744 (0.1851)



## $7.69 X 

## 32,378,952,448 lbs.

1,722.707 acres 1,016.311 acres

58.995%



## =

__ **5'5:8~.9";9~5;.7%"-o** 

## _ 

## = 66.47%

1 

## = 32,378,952



## =

= $4.3666

$3.4462

$0.0616

($0.1851)

$0.0000

## Newark Liberty International Airport Monorail Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2015 to December 31, 2015

Initial Construction Factor Monorail Construction Costs: (a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Performance Bonds; 3) insurance premiums or charges; 4) direct payroll & expenses of Port Authority employees & agents engaged in performance of the work. (b) Engineering Services including: 1) payments to independent consultants & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 10% liquidated overhead. (e) Financial expense. Total Monorail Construction Costs Less: PFC Funds $390,171,821 (1 00,000,000) 

## Initial Net Capital Investment $290,171,821 

## Monorail Commencement Date: May 31, 1996 

## Cumulative Initial Construction Factor Less: Cumulative Initial Construction Factor (1996-2014) 

## Annual Initial Construction Factor
2015 Additional Construction Factors Northeast Corridor Extension (Original NEG) Additional Monorail/ NEG Investment Mid-Life Overhaul 

## Annual Additional Construction Factors
Annual Operating Cost Factor

(a) Direct labor, materials, insurance, payments to contractors 

## & suppliers, utility purchases 

## & other costs for the operation, maintenance, 

## & repair of the system. (b) Less: Rental car Bus Service NEC Farebox Revenue Credit Subtotal (c) Liquidated overhead 15% 

## Annual Operating Cost Factor
Annual Monorail Cost
Maximum Passenger Take-off Weight: Total Maximum Weight for Take-off of all passenger aircraft using the airport.


## 2015 Monorail Fee $64,57 4,085 28,962,507 28 962 507 lbs. 

## $2.23 $466,054,247 (439,548,792) 

## $26,505,455

$1 0, 734,676 9,318,694 5,500,261 

## $25,553,631

$29,371,608

(7,789,000)

(500,000) (1 0,200,000) 10,882,608



## 1 632,391 

## $12,514,999 $64,574,085

# Newark Liberty International Airport Underground Fuel Distribution System Gallonage Fee Calculation Airport Affairs Meeting, December 3, 2014 For the Period January 1, 2015 to December 31, 2015

System Charge Component Major Elements of Costs:

(a) Fixed charges on Port Authority Investment in the Fuel System. (b) Direct labor, materials, payments to contractors and suppliers (other than the contractors referred to in subdivision (c) below), other costs for operation, maintenance, repairs and replacements charged directly to the Fuel System, and the pro-rata share of the cost of snow and ice removal. (c) 105% of the contract amounts paid or payable to any independent contractor who shall have operated the Fuel System.
Airport Services Charge Factor Major Elements of Costs: (a) Fixed charges on Port Authority Investment in Airport Services. Total

(b) Direct labor, materials, payments to contractors and suppliers and other costs for operation, maintenance, repairs and replacements charged directly to Airport Services, and the pro-rata share of the cost of snow and ice removal; excluding such costs charged to Port Authority non-revenue producing areas. (c) Direct labor, materials, payments to contractors and suppliers and other costs charged directly to Policing and Traffic functions at the airport. (d) Labor charged directly to the Airport Manager's Office.

Phase 1A Charge Factor Major Elements of Costs: Total $5,356,201

1,603,804 30,638,318 $37,598,323

$45,581,685

20,126,596 28,699,905

3,167,777 $97,575,963

(a) Construction costs including: 1) payments to independent contractors, vendors and suppliers; 2) premiums or charges for Performance Bonds; 3) insurance premiums or charges; 4) direct payroll & expenses of Port Authority employees & agents engaged in performance of the work. (b) Engineering Services including: 1) payments to independent consultants 

## & engineering firms; 2) direct payroll and expenses of Port Authority staff arising in connection with the work. (c) Other direct costs. (d) 10% liquidated overhead. (e) Financial expense.

Monthly Multiplier 

# = Total Phase 1A Costs Less: PFC Funds Net Phase 1A Investment 0.007481 Cumulative Phase 1A Cost: $37,661,094.40 x 0.007481 Less: 2014 Cumulative Phase 1A Charge Factor Annual Phase 1A Cost x 192 months 

## = $87,661,094 (50,000,000) $37,661,094

$54,094,588 (50,713,676) $3,380,912

# Newark Liberty International Airport Underground Fuel Distribution System Gallonage Fee Calculation (Continued) For the Period January 1, 2015 to December 31, 2015

Volume: Actual number of gallons of fuel delivered through the Fuel System to all aircraft at the airport.
Acreage: Total annualized sum of Revenue Producing Land Total Developed Land Area at the airport occupied

by the Bulk Storage Area. Percentage

System Charge Component $0.01304 X 

## $37,598,323

Airport Services Charge Factor $0.00046 X 

## $97,575,963 $4,625,000

Phase 

# 1A Charge Factor $3,380,912 1,722.707
Gallonage Fee System Charge Component Airport Services Charge Factor Phase 1A Charge Factor 2015 Gallonage Fee X

X 

## $3,300,000

320,000,000 665,763,261

33.401

$0.0708

0.0055 0.0001 $0.0764 X

X

X 

## 665,763,261 Gallons

1, 722.707 acres

33.401 acres 1.939%

320,000,000 

# = 665,763,261

1.94% 

# = 1.63%

1 

# = 665,763,261 $0.0708

$0.0055

$0.0001

# FEDERAL AVIATION ADMINISTRATION UNITED STATES DEPARTMENT OF TRANSPORTATION 

# ----------------------------------------------------------------------------------)C UNITED AIRLINES, INC., Complainant,



# v. THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, Respondent. 

# ----------------------------------------------------------------------------------}C DECLARATION OF CARLENE V. MciNTYRE 

# I, Carlene V. Mcintyre, declare as follows: Docket No. FAA-16-14-13

I. I am an Assistant General Counsel in the Law Department of the Respondent The Port Authority of New York and New Jersey ("the Port Authority") assigned to represent the Port Authority in this matter. In that capacity, I am fully familiar with the facts set forth herein. 2. This Declaration is submitted in support of the motion of the Port Authority pursuant to 14 C.P.R.§ 16.26 (c) for summary judgment dismissing the Complaint herein. 3. Attached hereto as Exhibit 1 is a true and accurate copy of the following document: The report entitled "Airports Do Not Operate As Monopolies," dated February 5, 2015, prepared by Matthew H. Lee, Vice President, Landrum & 

# Brown, with curriculum vitae attached.
I declare under the penalty of perjury under the laws of the United States of America that that the foregoing is true and correct. Executed at New York, New York, on February 10,2015.

# Airports Do Not Operate As Monopolies

Matthew H. Lee Vice President Landrum & 

# Browni

For: 

# The Port Authority of New York and New Jersey February 5, 2015 

# 1

# 2 

# Airports Do Not Operate As Monopolies



# Traditionally, commercial airports were considered natural monopolies with high barriers to entry and significant economies of scale. To balance the market strength of monopolistic airports, policy makers adopted policies to regulate pricing. Commonly in Europe, civil aviation authorities specified pricing schemes and developed price caps similar to public utilities. While in the United States, the Federal Aviation Administration (FAA) and the Department of Transportation (DOT) utilized Airport Improvement Program (AlP) grant sponsor agreements to

ensure reasonable access and prevent economic discrimination.! The principal rationale of the sponsor agreement provisions is to implement legislation that fosters airline competition and encourages new airline entry at individual airports.z

However, the dynamics of the civil air transport industry changed substantially in the 21st 

# Century creating a shift in the economics of civil aviation. This shift highlights that airports differ from natural monopolies and that airlines enjoy considerable market strength. This paper examines three subject areas that demonstrate why the opinion that airports are natural monopolies is outdated. First, large airports quickly lose economies of scale; second, airlines can enjoy substantial and real market strength against airports; and third, United Airlines

1 

# Federal Aviation Administration/Office of Secretary of Transportation Task Force. Airport Business Practices and Their Impact on Airline Competition. 

# FAA, 1999, 

# p. 14. 

# Federal Aviation Administration. FAA Airport Compliance Manual. 

# FAA, 2009, 

# p. 4-1. 2 

# Daniel S. Reimer. "The Law of Airline Competition in the USA: Recent Developments and Future Outlook." Airport Management 

# Vol. 1, no. 3 April-june 2007: 311.

# 3


# exercises dominate market strength in general, and specifically, at Newark Liberty International Airport (EWR).

Economies of Scale Increase for Airlines and Decrease For Airports

A 

# natural monopoly is said to occur when production technology causes long-run average total costs to decline as output expands. In such industries a single producer will eventually be able to produce at a lower cost than any two other producers, thereby creating a "natural" monopoly.3 This characteristic is caused by economies of scale inherent in factors of productions.• However, airport costs are largely fixed and not directly scalable to traffic or demand.s Previous studies found that long-run average airport costs decrease significantly up to approximately 1 to 1.5 million passengers. But airport costs flattened out and do not decrease after 3 

# to 3.5 

# million passengers.6 Therefore, large airports do not have the key characteristic of a natural monopoly. With over 35 

# million passengers in 2013,7 

# EWR has long

3 

# Thomas). DiLorenzo. "The Myth of Natural Monopoly." The Review of Austrian Economics 

# Vol. 9, 

# no. 2 (1996): 43. 4 

# Chris Hemsley. Regulating Alongside Competition -Issues Raised in the UK Airport Market. 

# Second Annual Conference of Competition and Regulation in Network Industries (2009): 5. 

# s Airports Council International. Airport Competition. 

# International Civil Aviation Organization Worldwide Air Transport Conference (2013): 2. 

# 6 Chris Hemsley. Regulating Alongside Competition -Issues Raised in the UK Airport Market. 

# Second Annual Conference of Competition and Regulation in Network Industries (2009): 5. 

# Rigas Doganis. The Airport Business. 

# New York: Routledge, 1992: 48-50. 7 

# In 2013, 

# EWR had 35,016,236 

# passengers on 413,744 

# plane movements.

# 4


# since exhausted its economies of scale. As with other large airports, EWR does not enjoy appropriate economies of scale to be categorized as a natural monopoly. 8



# Growth of Airline Market Strength



# Since deregulation of passenger air transport in 1978, 

# the passenger airline industry in the United States experienced substantial and lasting transformations. Two significant and interdependent trends are hub-and-spoke network operations and air carrier consolidation.9 Combined, these trends drastically increased airline market strength. In addition, recent research indicates that for the last two decades airlines enjoy increasing returns to scales and indicates, "that the largest US airlines operate under modest returns to scale."1D

Hub Concentration



# The hub-and-spoke system derives benefits from the both the demand and
cost side. 11 

# An incumbent hub airline can add new flights cheaper and quicker than a

new air carrier while lowering unit costs through additional passengers 12 

# At the

8 

# Chris Hemsley. Regulating Alongside Competition -Issues Raised in the UK Airport Market. 

# Second Annual Conference of Competition and Regulation in Network Industries (2009): 8. 

# 9 Megan S. Ryerson and Hyun Kim. "Integrating Airline Operational Practices into Passenger Airline Hub Definition." journal of Transport Geography 31 (2013): 84. 

# 10 Ahren Johnston and John Ozment. "Economies of Scale in the US Airline Industry>" Transportation Research PartE 51 (2013): 95/106. 11 

# Kenneth Button. "Debunking Some Common Myths about Airport Hubs." Air Transport Management 8 (2002): 180. 

# 1z Ibid., 181.

# 5



# same time, passengers derive consumer benefits through single-airline service to lower demand airports that could not support direct non-stop flights.13 As a natural consequence to hub-and-spoke system, one or two airlines can dominate chosen hub airports. This growing concentration amongst air carriers leads to greater bargaining power for the airline. 14 In general, hub airports are financially vulnerable since the failure or withdrawal of a single airline creates permanent economic impact.1 5 

# In addition, hub airports compete to attract and retain airlines with connecting passengers.16 This is critical at EWR as 24 percent of passengers in 2005

are connecting passengers through the airport hubP Although airports may be the only provider of the infrastructure (i.e. real estate, taxiways and runways), the dominant hub airline holds countervailing power, which at EWR is United Airlines with 70 percent market share. 18 Therefore, United Airlines can leverage their market power to counter possible monopolistic behavior by the Port Authority of New York and New jersey.

13 

# Elizabeth Bailey and Dong Liu. "Airline Consolidation and Consumer Welfare." Eastern Economic]ournal21, 

# no. 2 (Fall1995): 464. 14 Cristina Barbot and Tiziana D'Alfonso. "Why Do Contracts between Airlines and Airports Fail?" Research in Transportation Economics 

# 45 (2014): 34. 1 5 

# Rigas Doganis. The Airport Business. 

# New York: Routledge, 1992: 202. 16 Chris Hemsley. Regulating Alongside Competition -Issues Raised in the UK Airport Market. 

# Second Annual Conference of Competition and Regulation in Network Industries (2009): 7. 17 Federal Aviation Administration. FAA Regional Air Service Demand Study. 

# Washington: Federal Aviation Administration (2007). 18 Andreas Polk and Volodymyr Bilotkach. "The Assessment of Market Power of Hub Airports." Transport Policy 

# 29 (2013): 29.

# 6


# Air Carrier Consolidation

Air carrier market power is manifest when consolidated airlines rationalize their routes, fleet and facilities to maximize efficiency and reduce costs.19 Despite sunk costs, a consolidated airline needs to abandon individual hub airports that provide redundant service, higher costs or inefficient operations. This occurred more frequently in the 21 '' 

# Century as consolidations included American Airlines with Trans World Airlines, US Airways with America West, Delta Airlines with Northwest Airlines, United Airlines with Continental Airlines, and American Airlines with US Airways.2o Today, airline market power is concentrated in the three remaining legacy air carriers. The risk of airline connecting hub abandonment is very real and extremely costly for an airport. After consolidation, airlines closed connecting hubs in Cleveland, Memphis, Pittsburgh, Las Vegas, and St. Louis.21 The threat of future airports losing hub status shifts significant buyer power to the airlines especially where the hub airline has a dominant market at an airport.22

19 Gerald L. Dillingham. 

# Airline Mergers: Issues Raised by the Proposed Merger of American Airlines and US Airways. Washington: Government Accountability Office, june 19,2013: 14. 

# 20 Ibid., 4. 21 Associated Press. "United to Dump Cleveland Hub, Cut 470 

# jobs." 

# AP: (2014) 

# http: //www.nbcnews.com /travel/united-dump-cleveland- hub-cut-4 70- jobsKen Leiser. "Lambert Airport's Economic Impact Slips Since 2000." 

# Saint Louis Post Dispatch june 5, 2013. 

# 22 Airports Council International. 

# Airport Competition. International Civil Aviation Organization Worldwide Air Transport Conference (2013): 

# 3. !

!

# 7


# In addition, airline market strength is evident in consumer pricing. Four US air carriers; United, Delta, American and Southwest, control approximately 75% of all domestic flights. While air travel demand remains high, the airlines keep supply limited. As a consequence, airfares remain the same even as fuels costs dramatically decreased (over 50%) since the first half of 2014. Airlines continue the practice of carrier-imposed fees above the basic airfare to subsidize increased fuel costs.23 This is one of many practices airlines use to extract monopolistic rent from their
customers. 2 4



# United Airlines Exercises Market Strength



# With over 70 percent of market share, there is no disagreement that United Airlines is the dominant airline at EWR. 25 This results from United Airlines purchase of Continental Airlines in 2010.26 Therefore, it is critical to understand United Airlines' market strength at EWR through the history of Continental Airlines.

23 Rick Seaney. "Fuel Prices Fall, Yet Airline Surcharges Remain." USA Today 

# january 13,2015. http:l/usat.ly/IBWKjmK Rick Seaney. "Airline Forecast: How To Get The Best Deals in 2015." USA Today 

# December 16,2014. http://usat.ly/lABHTkp CNN. United, US Airways join in Bag Fees. 

# june 13, 2008. http: //www.cnn.com /2008/TRA VEL/06/13 /airlines. bags /index.html?iref=nextin 24 Kenneth Button. Transport Economics. 

# Northampton: Edward Elger Publishing (2010): 315. 25 The Government Accountability Office defines a dominated market as a market where one airline has over 50 percent of passengers. U.S. Government Accountability Office. Potential Mergers and Acquisitions Driven by Financial and Competitive Pressures. 

# Washington: Government Accountability Office, july 2008: 27. 26 Susan Fleming. Issues Raised by the Proposed Merger of United and Continental Airlines. 

# Washington: Government Accountability Office, May 2010: 3.

# 8
In April 1987, 

# Continental Airlines acquired and merged operations with People Express Airline gaining SO percent of EWR passengers in the processP In 1997, 

# Continental Airlines launched a marketing effort to focus on EWR and Continental Airlines as "the only carrier with a New York-area hub."28 At the time, Continental Airlines held 53% of the EWR market but was not in the top ten passenger market at john F. Kennedy International Airport (JFK) (Lufthansa Airlines was number 10 

# with 1.4%).2 9 

# This event is significant in that it demonstrates Continental Airlines' choice to secure and expand dominant market share and, in turn, market power at EWR. Adding to the significance, in 1999 

# jetBlue Airways secured 75 

# slots between 3:00 

# pm and 7:59 

# pm (slots were not required outside this time) at jFK. 30 

# This highlights that capacity was available at jFK. As such, Continental Airlines' choice as the EWR hub predates jetBlue Airways choice and subsequent expansion as a jFK hub. Subsequent claims, even decades later, that United Airlines is captive at EWR ignore the reality that Continental Airlines, one day to be United Airlines, chose the airport platform (EWR) to build their dominant market share.

2

7 

# Associated Press. People Express Leases Unfinished Newark Airport Terminal. 

# january 2 

# 0, 19 8 

# 5.

**h!!P.J_/.JI!ll!lCYlc,m'.ti!l~&illnL~L'ihllli'2!2Lmcmllilll/Jd~~** 

# express-leases-unfinished-newark-airport-terminal.html Rigas Doganis. The Airline Business Second Edition. 

# New York: Rutledge 2006: 

# 74. 2

8 

# Continental Airlines. Continental Airlines Launches New York Campaign. 

# Press Release: june 17, 1997. 29 

# Port Authority of New York and New jersey.1997 Airport Traffic Report. 

# New York: PANYNj (1998): 

# 4 7. 

# http: l/www.panynj.gov /airports/pdf3D 

# jetBlue Our Company- History. http:ffwww.jetblue.comjaboutfourcompany/history.aspx

# 9


# Further exploration of Continental Airlines' history belies the claim that weak market power subjected United Airlines to unreasonable rates. Three key components of operational cost for Continental Airlines (and United Airlines in 2013) include landing fees and other rents, salaries, and aircraft fuel are highlighted in Figure 1. 

# As a percentage of total operating expenses, landing fees and other rents remained static compared to salaries and aircraft fuel. 3 1 

# More significantly, operating expenses for landing fees and rental is marginally lower in 2012 and 2013 32 versus 19973 3 when Continental Airlines chose strong market power at EWR.

31 

# All operating expense data from Continental Airlines and United Continental Holdings annual reports or news releases 1997 through 2013. 32 

# United Continental Holdings, Inc. Form 10-K. Annual Report for Year Ended December 31, 2012. United Continental Holdings, Inc. Form 10-K. Annual Report for Year Ended December 31, 2013. 33 

# Continental Airlines. Work Hard. Fly Right. Continental Airlines 1997 Annual Report.

# 10

Figure 1: Percentage of Total Continental Airlines Operational Expenses \/iiJges

**&t~i!li!I:ie_s _furc~<lftF~ti.i!nd**  **La!l_dji!g_l'_~~~FZ~!ltals** 

# __ **~--** 

# __ _ ____________ _ 40.0% 

# T----------------------------

Note: Data from Annual Reports Continental and United Airlines

Another demonstration of United Airline's ability and willingness to exercise dominant market power at EWR is slot utility. In accordance with the congestion management rule established in 2008,34 United Airlines controls an average of 73 

# percent of all arrival and departure slots at EWR The next largest slot holders fall far behind United Airlines with Delta Airlines at 5 percent and American Airlines at

34 

# The congestion management rule limits the number of take-offs and landings (slots) per hour at an airport in accordance with 14 

# CFR 93.

# 11


# 4%. 35 Compounding their dominance, United Airlines schedules 796 

# flights during the effective slot hours while holding 

# 911 slots.36 As consequence, United Airlines does not use approximately 13 

# percent of their allocated slots. This practice, termed 'babysitting' by the U.S. Department of justice, blocks for use more than twice the slots available to the next highest carrier, Delta Airlines.37 This represents a growing problem of dominant airlines, such as United Airlines, leverage slots as a barrier to entry. 38 The Federal Aviation Administration (FAA) believes that 'babysitting' lessens consumer choice and limits new entrant opportunities.39ln addition, the Department of Transportation recognizes the concern that incumbent airlines act to limit competition through access to slots. 40



# Conclusions

Due to the changing dynamics in the passenger air transport industry, the traditional view that airports are natural monopolies is outdated. Owing to consolidation and reinforced by the hub-and-spoke network, airlines demonstrate 35 FAA Slot Allocation Profile, March 15,2014. 36 

# Official Airline Guide, March 20,2014. 37 

# Government Accountability Office. Slot-Controlled Airports: FAA's Rules Could Be Improved to Enhance Competition and Use of Available Capacity. 

# Washington: Government Accountability Office, September 2012: 38. 

# 38 Rigas Doganis. The Airport Business. 

# New York: Routledge, 1992: 110/202. 

# Kenneth Button. Transport Economics. 

# Northampton: Edward Elger Publishing (2010): 309. 

# 39 Federal Aviation Administration. Slot Management and Transparency for LaGuardia Airport, john F. Kennedy International Airport, and Newark Liberty International Airport. 

# Washington: FAA NPRM 2014: 47-48.

4 0 

# Ibid., 59.

# 12
moderate economies of scale. In the meantime, large airports rapidly lose economies of scale above 3 million passengers. Today, airlines, in general, and United Airlines, specifically, wield and exercise contravening dominant market
power against airports. Consequently, the Port Authority of New York and New jersey does not capture United Airlines at Newark Liberty International Airport with market power.

Submitted on February 5, 2015 LANDRUM & 

# BROWN, INCORPORATED

Matthew H. Lee Vice President

1 

## Resume for Matthew H. Lee Attached.

# Matthew H. lee Vice President Bachelor of Urban Planning

- University of Cincinnati, 

## 1979 Mr. Lee has managed airport planning studies for commercial service airports of all sizes. His involvement has ranged from plan conception, through environmental approval and securing of development funding. Because he has experience across the entire project planning and development cycle, he has the ability to ensure that Master Plan documentation and findings are readily transferable to environmental assessments and impact statements, and benefit/cost analyses. Relevant examples of his airport planning experience that includes terminal or inter-modal elements are Cleveland Hopkins, Baltimore, Nashville, Norfolk, St. Louis, Berlin, Dusseldorf, and Munich. Mr. Lee has managed terminal planning studies for Peoria, Norfolk, Munich, Berlin, Dusseldorf, Cologne and Columbus. The studies in Berlin, Munich and Dusseldorf included analysis of the spatial proximity and passenger flow for local train, regional train, charter bus, and local bus and on-airport peoplemover systems. In addition, terminal space programs for the inter-modal elements were developed. Mr. Lee has used TAAM, SIMMOD or GATESIM to assess the detailed aircraft movement issues for the regional airspace and airport surface operations for Seattle, Chicago, New York Kennedy and LaGuardia, Newark and Denver. In Chicago, Seattle, Newark and New York the focus of the studies were the balance of terminal, taxiway and runway capacity. In Denver, the focus of the analysis was aircraft movements during deicing operations. In each of these studies Mr. Lee developed and applied delay and traffic mapping techniques the clearly demonstrated the locat'1on, magnitude and cause of aircraft operating delays. Mr. Lee has prepared benefit-cost analyses for many types of airport improvements and airport snow removal equipment purchases. Four of these studies supported FAA Letter of Intent (LOI)/multi-year AlP grant applications for runway or taxiway improvements. The analysis for Cleveland Hopkins International Airport included estimation of the consumer surplus provided by the increased airport capacity enabled by the relocated parallel runway. Mr. Lee has designed air passenger surveys that support airport market assessments, airport master plans, aviation forecasts and airport choice analysis, and economic impact studies. The assessment of airport markets includes identifying market overlap areas where passengers choose amongst several airports versus using only a single airport. Analyses identified reasons for airport choices by passengers. The results of these surveys and analyses were used to produce more informed forecasts of future aviation demand. Mr. Lee has been a speaker at the National Simulat'1on Conference, the ACI/ AAAE Airport Technology Conference, The FAA Forecasting Conference, the Transportation Research Board Annual Conference and at the Operations Research Society of America national conference.

# Matthew H. lee Representative Projects Airfield Operations and 

## Capacity Studies

- Calgary International Airport

- Runway Capacity Study

- Chicago O'Hare- B-777

Operational Assessment, (United Airlines)

- Chicago O'HareConstruction Operations Plans

- Cincinnati Northern Kentucky

International Airport



### - Cleveland Hopkins

International AirportTaxiway Q Hold Pad

- Denver International Airport

-

Aircraft Deicing Pads

- Detroit Metropolitan Airport

(Northwest Airlines)

- Hong Kong International

Airport

- Liege Airport (Belgium)

- New Seoul (Inchon) Airport



### - New York Kennedy

International AirportTerminal 4 Apron Operations Study

- Newark International A·1rport

- Runway Capacity and Delay 

### Analysis

- New York Kennedy

International AirportOperational Efficiency Analysis

- New York Regional Air Service

Demand Study

- "Upgrading to World Class,

The Future of the New York Region's Airports", Regional Plan Association

- Airport System Capacity

Planning Study

- Port Authority of New York & 

### New Jersey 

### Airspace Studies

- Denver International Airport

- Beijing International Airport

- Guangzhou International

Airport

- Helsinki Vantaa Airport

- New Berlin-Brandenburg

International Airport Site Selection

- New Chicago Airport at Lake

Calumet

- New Seoul (Inchon) Airport

- Norfolk International Airport

- State of California Aviation

System Plan

- Sydney (Kingsford-Smith)

Airport 

### FAA Airport Capacity Design Team Studies - Chicago O'Hare 

### & Midway Airports

- Cleveland Hopkins

International Airport

- Detroit Metropolitan Airport

- Norfolk International Airport

- Philadelphia International

Airport 

### Airport Master Plans

- Baltimore-Washington

International Airport

- Charlotte/Douglas

International Airport

- Chicago Midway Airport

- Chicago O'Hare International

Airport

- Cleveland Hopkins

International and Burke Lakefront Airports

- Detroit Metropolitan Airport

- Miami International Airport

- Nashville International Airport

- New Berlin Brandenburg

Airport

- Denver International Airport

- New York Kennedy

International Airport

- Norfolk International Airport

- Ottawa International Airport

- Philadelphia International

Airport

- Sydney (Kingsford-Smith)

Airport 

### Benefit Cost Analyses

- Baltimore-Wash"mgton

- High

Speed Snow Removal Equipment

- Baltimore-Washington

-

Taxiway Improvements (LOI)

- Cincinnati Northern Kentucky

- Aircraft Deicing Pads Cincinnati Northern Kentucky

- New Parallel Runway (LOI)

- Cleveland Hopkins

-

Replacement Parallel Runway (LOI)

- Denver International Airport

-6th Runway

- -Aircraft Deicing Pads

- - Hold Pads 

### & Taxiways

- Detroit Metropolitan Airport

-

High Speed Snow Removal Equipment

- The Port Authority of New

York & 

### New Jersey

- High Speed Snow Removal Equipment

- The Port Authority of New

York 

### & New Jersey

- JFK Taxiway Improvements (LOI) 

# Vice President

Demand Management

- The Port Authority of New

York & 

### New Jersey- Slot Allocation Policy Analyses

- The Port Authority of New

York & New Jersey

- Air Service Analyses

- The Port Authority of New

York & 

### New Jersey

- Delay Reduction Initiatives 

### Forecasting

- Baltimore Washington

International Airport Cleveland Hopkins International Airport New York Kennedy International Airport

- Independent Review of Airline Forecasts New York Airspace Redesign 

### EIS

- New York Regional Air Service

Demand Study

- Youngstown Airport 

### Noise Abatement Procedures

- Chicago O'Hare and Midway

Airports

- Cincinnati, Northern Kentucky

International Airport Cleveland Hopkins International Airport Denver Airport International Airport Sydney (Kingsford-Smith) Airport 

### Passenger & Baggage Flow Analyses

- Baltimore-Washington

International Airport

- Burbank Airport

- Chicago O'Hare International

Airport

- Hong Kong International

Airport

- Port Columbus International

Airport

- San Diego International

Airport

# Matthew H. Lee

Software Development

- Landrum & 

### Brown, AIRSIM &



### GATESIM Model Enhancements

- Landrum & Brown, Apron Bus

Allocation Model

- Landrum & 

### Brown, SIMMOD

and TAAM pre- and postprocessors

- Landrum & Brown, Simplified

Runway Delay Model

- Landrum & 

### Brown, Terminal

Gate Allocation Model

- Landrum 

### & Brown, Terminal

Passenger Flow Models

- Los Angeles International

Airport, Gate Management System

- Ontario International Airport,

Gate Management System

- ACRP 04-05 Terminal

Planning Spreadsheet Models

- ACRP 03-17 Airport Capacity

Models 

### Terminal Gate Studies

- Chicago O'Hare International

and Midway Airports

- Cleveland Hopkins

International Airport

- Helsinki Vantaa Airport

- Los Angeles International

Airport (Airbus)

- Miami International Airport

- New York Kennedy

International Airport

- New York LaGuardia Airport

- Philadelphia International

Airport

- San Francisco International

Airlines Association

- Sydney (Kingsford-Smith)

Airport 

# Vice President

Terminal Planning Studies

- Baltimore-Washington

International Airport

- Cleveland Hopkins

International Airport

- Cologne/Bonn Airport

- DUsseldorf Airport

- Greater Peoria Regional

Airport

- Hong Kong International

Airport

- Munich Airport

- Norfolk International Airport

# FEDERAL AVIATION ADMINISTRATION UNITED STATES DEPARTMENT OF TRANSPORTATION 

# ----------------------------------------------------------------------------------)( UNITED AIRLINES, INC., Complainant,



# v. THE PORT AUTHORITY OF NEW YORK AND NEW JERSEY, Respondent.
**---------~------------------------------------------------------------------------)(** 

# CERTIFICATE OF SERVICE 

# Docket No. 16-14-13

I hereby certify that by First Class Mail I have this day served the foregoing Motion For Slllllmary Judgment Dismissing Complaint, Memorandum Of Points And Authorities In Support Of Motion For Summary Judgment Dismissing Complaint, the Statement Of Respondent The Port Authority OfNewYorkAnd New Jersey Pursuant To 14 C.P.R.§ 16.26(C)(2) In Support Ofits Motion For Summary Judgment Dismissing The Complaint, and the Declarations of Joseph R. Garcia, Fred Longernecker, and Carlene V. Mcintyre, and the Exhibits annexed thereto, on the persons set forth below at the addresses indicated. Dated: February 10, 2015

Addressees: Office of the Chief Counsel Attention: FAA Part 16 Airport Proceedings Docket, AGC-600 Federal Aviation Administration 800 Independence Avenue, SW Washington D.C. 20591

# Keith J. 

# Harrison Gerald F. Murphy Steven 

# J. Seiden Crowell & 

# Moring LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004 (202) 624-2500 RobertS. Span Alan 

# K. Steinbrecher Sophy Chen Steinbrecher & 

# Span LLP 1155 F Street, N.W., Suite 1050 Washington, DC 20004 (202) 559-8680 Attorneys for Complainant



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