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'.!!%,___ = $4,625,000 32,117,331,537 66.47% 

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 

$0.0001 
The 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 

$14,152 $26,534 $885,026 $7,669 $892,695 

26,886 53,366 1,354,118 14,899 1,369,017 

18,780 35,509 1,092,119 6,300 1,098,419 

163 339 3,388 96 3,434 -

$59,981 $115,748 $3,334,651 $28,964 $3,363,615 

1,376 5,304 245,794 78,241 5,305 329,340 319,244 432,243 

29,977 33,230 1,860,013 589,369 6,336 2,455,718 2,732,856 2,155,397 

44,016 59,258 1,046,752 703,732 19,171 1,769,655 1,809,689 1,219,565 

- 4.215 4,215 5,736 5,736 

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

149,000 137,895 

150,000 150,000 

- 61,000 56,842 

-

- 360,000 344,737 

$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 

on Administration (FAA) approved $573.4 million in PFC coliactions for additional eligible projects. It should be noted tbat included in tbe 

oject 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. 

roved an Ameodment which increased PFC collections for eligible projects by $55.4 million. In March 2013, tbe FAA has approved, authority to 

d 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 

n. In July 2013, the FAA bas approved authority to impose PFC revenue for the JFK Terminal3 Site Redevelopment and Capacity Improvements Project 

oject 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 

$14,133 $26,494 $824,968 $7,669 $832,637 

19 40 60,058 60,058 

$14,152 $26,534 $SS5,026 $7,669 $892,695 

$0 $0 $0 $4,924 $0 $4,924 $4,800 (b) $0 $4,924 01/92 04/98 

7,553 7,553 7,000 (b) 7,553 (a) 100% 7,553 01/92 04/98 

7,553 4,924 12,477 11,800 7,553 12,477 

241 705 59,204 20,864 99 80,167 71,055 (b) 61,655 79% 78,404 05103 11/11 

13,500 4,407 17,907 13,500 (b) 13,500 85% 15,866 05103 12113 

23,000 18,045 781 41,826 23,000 23,000 61% 38,000 05103 12/13 

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

36,000 7,068 1,095 44,163 36,000 (b) 36,000 (c) 76% 47,434 12103 12114 

72 218 3,011 4,801 2,214 10,026 22,800 153,800 76% 202,074 02112 12117 

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 

2 2 3,245 3,245 100% 3,245 05/03 11/11 

2 2 1,500 1,500 100% 1,500 05!03 12/13 

 2,000 2,000 100% 2,000 05/03 12/13 

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

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

1,200 8,095 100% 1,200 02/12 12/17 

555 555 6,450 6,450 100% 6,450 07/05 12/12 

559 559 17,634 ~529 17,634 

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

9 10 332 332 895 895 100% 895 01/10 12/14 

9 __.!Q... 10,556 10,556 13,394 11,119 ~394 

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

149000 137,895 93% 1491000 02!12 12/17 

-- 149,000 137,895 ~000 

$1,376 $5,304 $245,794 $78,241 $5,305 $329,340 $468,244 $570,138 $980,750 

Total Unliquidated PFCs $639,232 

g both LGA & JFK totaled $14.0 Dlillion. 

ly the PFC eligible dollar am.ounts contained in the PFC application apptoved in January 2006. 

endmeat which. increased PFC collections for LGA Perimeter Intrusion Detection Systtm projects by 28 million. 

LGA 

Page 1 of1 
2014 PFCFunding Cmnulalive 

2ndQ<w1<>" Year To Date toD"' 

$26,850 $53.286 $1,319,038 

36 80 35,080 

$26,886 $53,366 $1,354,118 

$0 $0 $328,941 

563,285 

421,200 

6,447 

1,319,873 

26,637 26,752 71,856 

750 

eot 4,136 

3,330 5,518 23,n9 

35,500 

1,900 

3 3 35 

and 31,844 

124 905 218,824 

Reb 89,926 

27,097 

30,094 33,178 505,647 

and 300 

Reh 74 

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 32,174 
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) 

alnarion of investments. 

 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 

y 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 

.2 million in. additional Passenger Facility Charges, increasing the previously authorized St, 148 million JFK Air Train prognm by 15%. 

A approved the re-allocation of eertaia PFC authorized dollar amounls within the various JFK Air Train project components. 

%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 06/17 
2014 

$18,755 

25 

$18,7$0 

$0 

illg 

ion Improvements 410 

671 

t 

P 

190 

AR:a 

al Distribution 233 

ents 

aai.nal A 

R 35,368 

L 330 

ork Prepamtion For EMAS 4,402 

habilitation Projoct • 4IJ22R 

abilitarl.on Project· 4RI22L 

habilitation P 

astructure 

se II PJ:mning 2,374 

 22R 22L • 4L 

A 30 

44,008 

The Port Authority of New York and New Jersey 

Passenger Facility Charge Program 

Schedule of Revenue and Expendib.lres 

PFCFunding 

Year To Date 

$35,452 

S7 

$35,509 

$0 

1,189 

3,246 

220 

233 

40,218 

1,106 

5,154 

7,929 

49 

59,248 

Newark Uberty International Airport 

{In Th01.1sands) 

Cumulalive 

roD"" Funding """" 

$1,095,484 $1,092,119 

$100,000 

50,000 

250,000 

7,000 

407,000 

84,:210 

3,016 

29,137 25,000 

'fa,329 

2,792 

12,000 

233 

147,975 

9,934 

19,000 

42,648 41,183 

14,540 13,977 

23,295 

14,115 

29,160 29,331 

18,000 

10,960 

569,035 

$261,800 

33,067 

1-49,025 

443,892 

74,455 

116 

1,353 

15,716 12,647 

324 

1,030 

75,104 

21,329 

2,731 

23,075 

337 639 

767 

551 

212 

19,317 

6,274 

3,136 

227 

259,840 

EWR 

Page 1 of2 

""""""' 

$8,300 

$6,SOO 

$0 

200 

... 

1,219 

642 

347 

2,825 

283 

9,759 

279 

1,120 

131 

1,065 

226 

19,171 

Approved PFC 

Project PFC Funding -- Start End 

To131 Total.B!5:et Application % Final cost Date Date 

$1,101,784 $1,098,419 

$361,800 $338,100 (b) $100,000 28% $361,800 01192 06196 

63,067 95,-400 50,000 60% 63,067 01192 12197 

399,025 415,000 250,000 62% 405,000 01192 06108 

7,000 7,000 7,000 100% 7,000 01192 12197 

850,892 407,000 856,867 

158,665 164,180 84,210 56% 151,298 12102 07111 

42,750 42,750 100% :29,174 01112 12/16 

4,750 4,750 100% 4,750 08113 12122 

3,332 61,000 61,000 44% 137,937 11/08 06117 

31,356 35,530 35,530 100% 31,020 04!06 12/14 

41,935 25,000 (b) 25,000 59% 42,216 06/03 01115 

31,816 26,062 18,329 67% 27,413 06110 06115 

3,46'3 3,200 (b) 3,200 36% 6,420 01109 12111 

13,030 12,000 (b) 12,000 93% 12,945 12/05 10!09 

233 233 233 100% 233 

225,904 193,475 (b) 147,975 44% 337,075 02104 05/14 

31,546 9,934 (b) 9,634 31% 31,734 01/07 07/13 

21,731 19,000 (b) 19,000 100% 19,000 12102 12/12 

76,192 44,352 42,425 44% 95,403 05113 06!16 

41,798 44,336 42,350 100% 38,113 08111 05/13 

16,299 20,624 20,624 100% 19,724 07110 12/15 14,744 1:3,977 (b) 13,9n 100% 13,6SB 12102 12105 

23,646 23,523 (b) 23,523 100% 22,525 12102 12105 

14,327 14,238 (b) 14,238 100% 13,415 12/02 12!05 

48,477 29,160 (b) 29,160 62% 47,036 09102 12/05 

35,7:36 29,331 (b) 29,331 100% 29,331 12/02 12!12 

22,201 18,000 (b) 16,000 87% 20,695 07/06 08/13 

11,413 29,000 29,000 100% 14,972 01/07 07/12 

668,046 863,635 726539 1,148,318 
The Port Authority of New York and New Jersey 

Passenger Facility Charge Program 

Schedule of Revenue and Expenditures 

Newark Uberty International Aii'Jlort. 

(In Thousands) 

2014 PFC Funding ,__ Oth« 

2nd Quarter Year To Date ., Doto Fwuiing A"""" 

790 

ng 

t 

rea 

ents 

DlA 1 

b Proj- 41J22R 399 

b Proj . 4:RJ22L 653 

b Proj - p 396 

astrueture 840 

eD Planning 

22R - 22L - 4L 

L 

R 

P 

ork Prepamtion For EMAS 

on Improvements 

A 

3,079 

endment 37,500 

9.816 

istration 8 10 322 

8 10 47,632 

1_,(,)4Ei,752 703,732 1$1,171_ 

uction 

$44,016 $59,258 $703,732 $19,171 

Total PFCs $45,857 

roved $20,0 million in additional Passenger Facility Charges for the reimbursement of annual interest due on 

onds issued to fimd lhe North East Corridor (NEC) Connection. In June 2008, the FAA approved an additional 

e A AmendmentfbrapprovedPFC application. 

epresent only the PFC eligible dollar amounts contained in the PFC application approved in January 2006. 

EWR 

Page 2 of2 

Approved PFC 

Project PFC Fundmg Estimated SWt End 

Tom! Total Budget Application % Final cost D"" o ... 

790 790 790 100% 700 12/02 07/11 

2,250 2,250 100% 2,250 01112 12/16 

250 250 100% 250 OB/13 12122 

1,870 1,870 100% 1,870 oooe 12114 

5,000 5,000 100% 5,000 06/03 01/15 

aoo 800 100% 800 01/09 12111 

·% 12/06 10/09 

7,525 7,525 100% 7,525 02104 05114 

500 500 100% 500 01/07 07113 

1 1,000 1,000 100% 1,000 12/02 12/12 

399 550 550 100% sso 12/02 12105 

653 850 850 100% 850 12102 12/05 

396 600 600 100% 600 12102 12105 

840 840 840 100% 840 09/02 12/05 

1,500 1,500 100% 1,500 12102 12/12 

2,000 2,000 100% 2,000 07106 OS/13 

1,914 1,914 100% 1,914 06/11 05113 

1,918 1,918 100% 1,918 05/13 06/16 

1,438 1,438 100% 1,438 06/10 06/15 1,065 1,065 100% 1,085 07/10 12/15 

3,211 3,211 100% 3,211 11/08 06/17 

2,000 2,000 1ooe.&. 2,000 01!07 07/12 

3,079 $7,691 37,891 ___B.B91 

37,500 37,500 37,500 (a) 100% 37,500 03105 09/12 

9,616 14,344 9,816 68% 14,344 11/01 09/02 

322 819 819 100% 819 01110 12!14 

47,636 52,663 48,135 52,663 

- _1_269,6_55 1,219,565 2,095,739 

61000 56,842 199,700 

61,000 56,842 

$1,769,655 $1,870,689 $1,276,407 
The Port Authority of New York and New Jersey 

20!4 PFCFunding 

2nd Quarter Year To Date 

$163 $338 

1 

$163 $339 

$0 $0 

ation 

ation 

$0 $0 

Total Unliquidated PFCs 

arket 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 

= 
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 

$14,270 $40,805 $899,296 $7,507 $906,803 

26,966 80,332 1,381,083 14,279 1,395,362 

17,029 52,538 1,109,150 6,512 1,115,662 

169 508 3,557 96 3,653 

-

$58,434 $174,183 $3,393,086 $28,394 $3,421,480 

854 6,157 246,547 89,637 7,061 343,345 319,244 432,243 

21,856 55,087 1,881,869 601,631 2,710 2,466,210 2,732,856 2,155,397 

31,259 90,517 1,078,013 697,644 12,381 1,788,038 1,809,898 1,219,774 

4,215 4,215 5,736 5,736 

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

149,000 137,895 

150,000 150,000 

61,000 56,842 

- - 360,000 344,737 

$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 

on Administration (FAA) approved $573.4 million in PFC collections for additional eligible projects. It should be noted that included in the 

roject 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. 

proved an Amendment which increased PFC collections for eligible projects by $55.4 million. In March 2013, the FAA bas approved, authority to 

nd 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 

ion In July 2013, the FAA has approved authority to impose PFC revenue for the JFK Tenninal3 Site Redevelopment and Capacity Improvements Project 

roject in the amount of$215.0 mil. 

Summary 

Page 1 of 1 
The 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 ... 

$14,251 $40,746 $839,219 $7,507 $846,726 

19 59 60,077 60,077 

$14,.2'70 

~805 $899,296 $7,507 $906,803 

$0 $0 $0 $4,924 $0 $4,924 $4,800 (b) $0 $4,924 01/92 04/98 

7,553 7,553 7,000 (b) 7,553 (.a) 100% 7,553 01/92 04/98 

7,553 4,924 12,477 11,800 7,553 12.477 

25 730 59,229 20,906 90 80,225 71,055 (b) 61,655 79% 78,404 05/03 11/11 

13,500 4,485 17,985 13,500 (b) 13,500 85% 15,866 05/03 12/13 

23,000 21.000 830 44,830 23,000 23,000 61% 38,000 05/03 12/13 

795 5,166 21,595 16,354 272 38,221 32,511 (b) 23,537 60% 39,191 10/07 12/14 

39,000 8,611 90 44,901 36,000 (b) 36,000 (c) 76% 47,434 12/03 12/14 

31 249 3,042 11,022 5,779 19,S43 22,600 153,800 76% 202,074 02112 12117 

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

852 6,146 227,978 84,713 7,061 319,752 ~416 389,042 

2 2 3,245 3,245 100% 3,245 05/03 11/11 

2 2 1,500 1,500 100% 1,500 05/03 12/13 

2,000 2,000 100% 2,000 05/03 12113 

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

2,000 2,000 100% 2,000 12/03 12114 

1,200 8,095 100% 1,200 02112 12117 

555 555 6,450 6450 100% 6,450 07/05 12/12 

559 559 ___ 17_,634 24.529 17,634 

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

2 11 333 333 895 895 100% 895 01/10 12/14 

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 

149,000 137 895 93% 149 000 02/12 12117 

149,000 137,895 

~000 

$854 $6,157 $246,647 $89,637 $7,061 $343,345 $468,244 $570,138 $680,750 

Total Unliquidated PFCs $652,649 

g both LGA & JFK totaled $14.0 million. 

ly the PFC eligt"ble dollar amounts contained in the PFC application approved in Januaxy 2006. 

endment which increased PFC collections for LGA Perimeter Intrusion Detection System projects by 28 million. 

LGA 

Page1of1 
2014 PFCFunding Cumulative 

!lndQuarter YearToDae to""" 

$26,931 $80,217 $1,345,!;168 

35 115 35,115 

$26,966 $80,332 $1,381,083 

$0 $0 $328,941 

563,285 

421,200 

6,447 

1,319,873 

20,473 47,225 92,329 

750 

c:o1 4,136 

1,340 6,859 25,119 

35,500 

1,900 

3 35 

and 31,844 

7 912 218,831 

Reb 89,926 

27,097 

21,820 54,999 527,4G7 

Slld 300 

Reh 74 

662 

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 32,174 
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) 

luation of investments. 

bothLGA & 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 

 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 

1 million in additional Passmger Facility Charges, increasing the pre'lliously authorized $1,148 million .JFK Air Train program by l5o/ ... 

 approved l'he ~ocati.oa of certain PFC authorized dollar amounts within the various JFK Air Train project components. 

zed 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 06/17 
2014 

3nd()wm< 

$17,007 

22 

S17,029 

$0 

30,317 

ning 

tion ImprovementS 397 

50S 

ct 

 P 

Area 

al Distribution 209 

euts 

nninal A 

R 

2L .. 

~ Preparation For BMAS 553 

habilitation Project- 4U22R 

habilitation Project:· 4R/12L 

habilitation Project· P 

rastructute 

se IT Planning (831) 

W 22R • 22L • 4L 

A 26 

31,258 

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 1,148,316 
The 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 

790 

ning 

ct 

Area 

ents 

nn A 1 

ab Proj - 4U22R 398 

ab Proj- 4R/22L 653 

ab Proj - P 396 

astrudnre 840 

se ll Plamring 

 22R- 221.- 4L 

L 

R 

 P 

work Preparation For EMAS 

ion Improvements 

A 

3,078 

endment 37,500 

9,816 

nistration 1 11 324 

1 11 47,640 

31,259 90,517 1,078,013 697,644 12,381 

ruction 

$31,259 $90,517 $1 078,013 $697,644 $12,381 

Total Unliquilb.ted F.FCs $31,137 

roved $20.0 million in addirlonal Passenger Facility Charges for1he reimbursement of annual interest due on 

onds issued to fimd the North East Corridor (NEC) Connection. In June 2008, the FAA approved an additional 

e A Amendment foupproved PFC application. 

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 $2,295,439 
The Port Authority of New York and New Jersey 

2014 PFCFunding 

3nd Qumrer Year To Date 

$169 $507 

1 

$169 $508 

$0 $0 

 

ration 

 

ration 

$0 $0 

Total Unliquidated PFCs 

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 Forecas

(000) 

Flight Fee per 1,000 lb. $ 6.64 $ 7.94 $ 5,779 $ 7.6

Monorail Fee per 1 ,000 $ 2.03 $ 2.30 $ 2,126 $ 2.2

lb. 

Fuel Fee per gallon $ 0.0723 $ 0.0735 $ 733 $ 0.076

Variable Airport $118,971 $110,387 $ (3,532) $110,35

Services Fee per acre 

CH & RP (millions) $ 15.453 $ 18.237 $ 2,784 $ 18.13

Police -Boarding Gate $ 1,269 $ 803 $ (2,078) $ 87

Security per tour 

$ 5,812 

Average rate for year Current Billing 

FIS $ 15.08 $ 14.40 $ 14.0

GTC $ 6.88 $ 6.55 $ 6.4

lnt'l Arr Fee $ 21.95 $ 20.95 $ 20.4

Projected Net Revenue $ 5,358 $ 13

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 of22 
TOTAL 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 of22 
2014 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 

' 

! 
1erminal B 2014. 

Terminal B 2013 Final 1/1/14 FIS Fee ..;tu:mye 

FIS lnt'l Arr lnt'l Dep Dom Arr/De(! 201:3 FIS lnfl Arr lnt'l Dep Dom Arr/Dee 

Jan-13 214,285 108,087 322,372 Jan-14 217,654 111,100 582 

Feb-13 171,160 82,756 602 254,518 Feb-14 173,851 85,063 902 Mar-13 244,195 112,277 438 356,910 Mar-14 248,035 115,406 643 

Apr-13 252,311 123,732 494 376,537 Apr-14 256,278 127,181 m 

May-13 252,870 141,791 - 394,661 May-14 256,846 145,743 142 

Jun-13 273,043 147,261 111 420,415 Jun-14 277,336 151,365 97 Jul-13 306,868 138,373 30 445,271 Ju!-14 311,693 142,230 138 

Aug-13 307,081 145,772 - 452,853 Aug-14 311,909 149,835 537 

Sep-13 249,063 131,416 121 380,600 Sep-14 252,979 135,079 68 

Oct-13 253,428 136,186 - 389,614 Oct-14 257,413 139,982 112 

Nov-13 212,001 119,264 - 331,265 Nov-14 215,334 122,588 35 

Dec-13 247,817 133,731 89 381,637 Dec-14 214,974 125,239 170 

Total 2013 2,984,122 1,520,646 1,885 4,506,653 Total :2014 2,994,304 1,550,810 3,803 

Total2012 :2,987,;11 1,473,163 7,022 4,4€3,096 Total 21113 actual 2,984,122 1,520,646 1,885 

Change from 2013 0.3% 2.0% 101.8% 

JJQ 12/3/2013 I rev 

"'"" I ""' ''" II B 2014 APtmal 

FIS lnt'l Arr lnfl Den Dom Arr/Dee 

Jan 233,075 111,537 206 

Feb 191,025 86,121 1,508 

Mac 269,892 119,915 253 

Ape 287,333 137,134 303 

May 284,488 155,861 104 

Jun 281,943 164,186 499 Jul 328,989 163,477 6,135 

Aug 333,143 171,135 5,473 

Sep 281,009 147,702 4,900 Oct 279,940 152,874 

Nov 237,418 133,566 187 Deo 

lrotal2014 3,008,255 1,543,508 19,568 

Tot:al2013 VTD 2,736,305 1,386,915 1,795 

Change from 2013 9.9% 11.3% 989.5% 

FIS Pax Page 9 of22 

for 

2:014 

329,336 

259,816 

364,084 383,836 

402,731 428,799 454,060 

462,281 

388,126 397,507 337,958 340,383 

4,548,917 1 

4,506,653 

0.9% 

2014 

344,818 

278,654 

390,060 

424,770 

440,453 

446,628 498,601 

509,751 

433,611 

432,814 

371,171 

-

4,571,331 1 

4,12s,o1s 1 

10.8% 

'"'"""'"' Ttmol

FIS lnt'l Art 

Jan-14 233,075 

Feb-14 191,025 

Mar-14 269,892 

Apr-14 287,333 

May-14 284,488 

Jun-14 281,943 

328,989 

Aug-14 333,143 

Sep-14 281,009 

Oct-14 234,782 

Nov-.14 274,447 

Dec-14 266,171 

Total 2014 3,266,297 

Total 2013 actual 2,984,122 

Change from 2013 9.5% 

JJQ 10/20/2014 

T ·• 

FIS lnt'l Arr 

Jan 240,300 

Feb 196,947 

M" 278,259 

Apr 296,240 

May 293,307 

lun 290,683 

Jul 339,188 

Aug 343,470 

Sep 289,720 

Oct 242,060 

Nov 282,955 

Dec 274,422 

ITotnl20!5 3,367,552 

Total 2014 3,266,297 

Change from 2014 3.1% 

Midpoint between unco

constrained 
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 of22 
2014 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 2013 A r d 2014 Forecast Frcst I 2015 l I '14-'15 Escalations 

nnua Impact Forecast Impact 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 of22 
2014 Master Lease Fee True-Up and 2015 Forecast Variance Explanations 

INTERNATIONAL FACILITY 

2014 YTD through Oct Prelim 11/10!14 2013 I,2014YTDll~ A r d 2014 Forecast ;!12013-20141 Frcst '13 ~ '14 I I 2015 .l'14-'15l Escalations 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 22 
Newark 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 01201201

TOTAL 2013A 2014/E % Ch % Ch-Cumulative 

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

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

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

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

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

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

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

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

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

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

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

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

Forecas

680,865,950 658,186,994 -3.3% -3.3°/a 10/2

666,941,619 -2,0% -2.0% 5/23

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 of22 
Labor 

Year Total Cost Snow Inches Cost/Inch i 11er Inch 

2003 12,278,769 62.5 196,460 2,248,568 35,977 2004 6,910,281 28.5 242,466 1,376,587 48,301 

2005 11,033,859 52.9 208,580 2,480,674 46,894 

2006 8,302,611 26.9 308,647 1,084,666 40,322 

2007 9,006,404 20.8 433,000 1,399,684 67,292 

2008 8,808,093 18.6 473,553 1,049,474 56,423 2009 11,923,426 32.1 371,446 2,295,981 71,526 

2010 ... 14,872,897 59.0 252,083 2,876,528 48,755 

2011 22,294,441 48.9 455,919 4,564,412 93,342 2012 8,724,691 12.1 721,049 936,804 77,422 

2013 12,164,183 30.4 400,138 1,808,750 59,498 2014 21,339,022 51.7 412,747 * 4,743,528 91,751 

Average cost per inch 2009-2013: 440,127 

*Oct final costs; snow fall through April16, 2014. 

Estimate for 2014: Costs through Oct less vehicles 

Annualize Vehicles 

Labor 

Chemicals 

Other 

PAF 

ASF 

FIS 

10 10 

10 

Snowfall (in)** 

Estimate for 2015: Vehicles 

Labor 

Chemicals 

Other 

PAF 

ASF 

FIS 

37 37 37 

**Average of the last 5 years actual snowfall 2009-2013. 

70,108.50 

17,817,256 

4,695,688 

731,131 758,204 

1,582,913 

25,585,192 

16,919,846 

3,242,411 

943,045 

4,789,602 

2,610,139 2,706,788 

5,650,998 

15,757,527 

10,394,122 

2,019,343 

581,988 

Chemicals I Materials 

i inch 

978,727 15,660 

864,110 30,320 

1,594,424 30,140 

750,929 27,916 

1,545,248 74,291 1,621,040 87,153 

3,156,694 98,339 

2,315,595 39,247 

3,646,689 74,574 

791,430 65,407 

2,612,996 85,954 

3,906,494 75,561 

72,704 

Update 

d with 

<------------- 2013 

land %'s 

Esc 

2% 2% 2% 2% 

Veh/Eguie Rental Contracts I Other 

i 12er inch i Qer inc

2,077,466 33,239 6,974,008 111,

1,958,366 68,715 2,711,218 95,

2,286,782 43,228 4,671,979 88,

2,695,674 100,211 3,771,343 140,

3,528,353 169,632 2,533,119 121,

3,375,719 181,490 2,761,860 148,

3,570,620 111,234 2,900,131 90,

3,699,330 62,701 5,981,444 101,

3,818,798 78,094 10,264,542 209,

4,221,125 348,853 2,775,331 229,

3,853,413 126,757 3,889,024 127,

3,521,766 68,119 9,167,235 177,

145,528 151,

Average cost I yr from 2009 - 2013: $13,995,9

*** Includes 2010 "holiday storm" costs of $1,764,190 which were reimbursed by FEMA in 2011. That reimbursement is not incorporated into these calculati

reimbursement was credited to the fees. 

Snow Page 15 of22 
2014 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. Finally1 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 of22 
As of 4/24/14 

TOTA.tASF TOTA.LPA.F 

TOTAL Mono TOTALCHRP 

----------------------------

TOTAL FAR 

,.,.,_. .. , ... '-NV,_-..,,, .-uu '"'"""'"'"" cn. .. ou"''"'u 

A04L6 CA04-39S "' TERMINAL 8 ANTI RAM PROTECTION CA04 319 A04MF CA04-398. "' TERMINAL FRONTAGE PROTECTION A04473A CA04-473 "' Term B Rehab Elect & Mech S stem Phase II A0449S CA04-495 306 TERMS- FIS SUBSTATION EMER GENERATOR CAP UPGRADE 

A04495A CA04-495 "' TERM B- FIS SUEISTATION EMER GENERATOR CAP UPGRADE A04530 CA04-530 306 Rehab of HTHW Pi in in Terminal B Crawl 5 ace A04572 CA04-572 306 Terminal B Infrastructure and Uti I' Modification 

A04584 CA04-584 "' Terminal B Rehab of Mechanical and Electrical s s A04599 CA04-599 "' Installation of recondition air units for aircraft A44017A CA44·017 3" LOWER LEVEL EXPANSION & B1 VERTICAL CIRC A44025A CA44-025 "' B2 CONNECTOR EXPANSION A44025B CA44-02S "' 63 CONNECTOR EXPANSION A44026 CA44-026 300 MITER/GREETER AREA 

Total Terminal B International 

2013 Slg Settle 

Terminal B Passenger Figure 

Rate 

1/1 2013 

4 1 2013 

9/1/201:1 

1/1/2013 

611/2019 

2014 

2014 

11/1/2013 

4/1{2013 

1/1/2013 1 1/2013 

1/112013 

2014 

4,634,022 

5.193% 

." 

lS lS 

20 

" " 20 

" " " " " " " 

EWR ·Significant Settlements for Cost Recovery Areas 2013 

." ' .,

141634 141634 13 603 1,134 " 13 605 0.00296 0.00296 I as

136 S40 136340 13,095 1091 ' 9 821 0.00214 0.00285 

11,8135 986 11 885 986 950,046 79,170 ' 316,682 0.06887 0.20660 I as

1,059 780 1 059 780 68579 5,715 " 68579 0.01491 0.01491 I as

5,818,896 5,818,896 376,545 31,379 7 219651 0,04776 0,08188 I ao

13 as

13 I as

1724,804 1,724,804 121,815 10,151 ' 20,303 0.00441 0.02649 I as

1,081 952 1 OB1 952 76 414 6,368 ' 57 310 0.01246 0.01662 I as

89B 621 898,621 63466 5 289 " 63 466 0.01380 0.01380 I as

264536 26 536 18 683 1557 " 18,683 0.00406 0.00406 I as

146,563 146,563 10,351 '" n 10,351 0,00225 0.00225 I as

13 /pas

23,159,114 23,159,114 1,675,076 14Z,716 760,929 0.16547 0.36102 

Page 19 of22 
• " 0 

N 

~ ~ 

< 0 

~ ~ 

8 

& I ~ 

~ 

~ 

~ ~ 

• 

~ 

" 

~ 

~ ! • 1! J , 5 

s ~ g ~ § ! ~ g " ~ 

" 0 • ~ ~ 
As of 12/1/2014 EWR- Estimated Settlement for Cost Retovery Areas Z015 

TDTI\l.ASF 

A04S07 CA04·507 zn Rehablllh!tlon OfToxiw• P S/1/201 ' " 18 704,9&1 18,7114,981 0 A04512 CA04·512 U1 Runwo 11 EMASin>tall>rt:ion FotR5A lm RelocBrewstetRd. & Site Work 3/1/2015 " 8,Z!l3,683 (8,293,683 0 A04516 CA04·Sl6 211 Runwa n EMAS ln•tall•tion ForRSA lm r<Nement• 9/1/2015 " 6,125,694 (6 125,694 0 A04519 CA()4-519 211 Re Ia cement of Guard Pom E-2 & o 6/1/2015 " 694,649 0 694,649 55,020 A04MS CACl4·303 21liMPROVl'MENTSTO NAVIGATION AIDS CA04-309 " 9g9 999,Z4 0 1\04455 CA04-455 Ul Reh•b RunW<l 4L-22R 6/1/2015 " 35.110,056 (35,11CI.056) 0 A0413 CA04-316 211 PERIMETER lNTRl!SION DETECTION SYSTEM CA04·316 5/1/2015 " 8,638 166 8 638 166 2015 Full Amortized lnvertment " (672172 

TOTALPAF 78,566,475 694,649 (617,152) 

A04514 CA04-5l4 125 Airtruin Baoe VehldeSubs •tom Life de Overhoul u 2015 " s 000 000 0 5 000 000 396 025 

2015 Full Amorti<ed lnve>lment 953,118 

TOTAL Mono 5,000,000 5,000,000 (557,0931 

IA!!4498 CACl4·49a 350 ReplaoementofHTHWGeneroto" AtCHRP 12/1/2015 25 3,979 939 " 0 3,979,939 278,072 

2015 Ful Amortized Investment 76152 

TOTAlCHRP 3,!l79,9a9 3,979,939 201,920 

TOTAL FAR 

IA!!4584 CA.04-584 306 TerminalS Rehab ofMedumloaland EleolrloaiS • 12/1/ZOlS 2.5 3,000,()(]0 0 0 3,000,000 209,605 

2015 Ful Amortl<ed lnvo>lment 279,182 

Total Terminal a International 3,000,000 3,000,000 (69,577) 

• Positive values for fully investment drop-offu of grant applications that do not coincide with settlements. Le. the grant may be fully amortized a year or more alter the settlement 

"Total projo<ctcost may Include project component\; that are set!Ung to other lease cost c..nters. TPC Is shown here for!nformaUonel pu!poses only. TPC is net ofGASB 49 provisions. 

2015 Sig Settle Page21 of22 

' /1000 LBS 3 

" 1000LBS 16

• lOOOLBS 

4,585 ' 32,095 0.00135 0.00231 /lOOOLBS 2

' /lOOOLI\S 22 

100CILBS 97

' /lOOOLES 46

{672172 0.02821 0.02821 /1000l8S 

4,585 (640,077) {0.02687) {0.112590) 2ll,

33,002 ' 03,002 0.00).39 0.01562 /1000 LBS 95

953,118 2.3Z137 

33,002 {920,1161 

23,173 23,170 0.00704 0.08446 /•q ft 20

6,152 0.02319 (0.0:!313 

23,173 (52,979) (0.01609) 0.05133 20

17,407 17.41>7 0.00384 0.().1608 

179,182 0.06137 0.08480" 

17,4G7 (261,715) (0.057SB) (O.a3872J 9
2: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 passengers12 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.15 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. 

15 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. 24 

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%).29 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. 

27 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. 

28 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. 31 More significantly, 

operating expenses for landing fees and rental is marginally lower in 2012 and 

201332 versus 199733 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. 

40 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 

2