Modernizing the Passenger Facil

The Key to Transforming America

For a Competitive 2
About AirportsUnited

AirportsUnited is a collaborative effort between Airports Council International – North America (ACI-NAAmerican Association of Airport Executives (AAAE) advocating for federal policies that strengthen our infrastructure to meet the needs of today and the challenges of tomorrow. Together with our growing cpartners, AirportsUnited showcases the unity and resolve of airports across the country to enact our cespecially as we prepare for the upcoming FAA reauthorization debate in Congress. It also provides a pin our coalition to contact members of Congress and collectively lend their voices to our effort. Airportvendors, retail establishments, restaurants, businesses, tourism groups, municipalities, and states alinterest in ensuring that airports remain strong economic engines and job centers for their local commgreat story to tell, and united we can share it. >>
Introduction

Airports are more than gateways to travel. Airports are gateways to economic opportunity. Just last year, America’s airports generated more than $1.1 trillion dollars in economic activity – 6.5 percent of the country’s GDP – and supported more than 9.6 million jobs. As demand for travel continues to climb, the sky is the limit.But our nation’s airports – and our leadership position in the global aviation system – are at risk of falling behind. U.S. airports need new infrastructure investments to modernize for 21st century air travel demands.

This overview survey will help highlight a wide variety of airport improvement pexamples gathered from airports acrosthat show how currently limited financpreventing airports of all sizes from mmuch-needed projects. >>
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Understanding the Scope of Airport Capital Improvement P

Airport capital improvement projects are complex undertakings that involve airport, airline, aviation, and non-aviation stakeholders. At their core, airport capital improvement projects are designed to add capacity for growing passenger and cargo demand, rehabilitate aging infrastructure, comply with federal and local design standards, enhance the safety and security of the traveling public, provide opportunities for new and competitive air service, protect the environment, and accommodate aircraft innovation. The successful completion of these airport improvement projects will help increase airport operational efficiency. Such efficiencies benefit all airport stakeholders, 

including our airline partners, by reducexpenses. Safety and security enhanceparamount. Additionally, airport improvprovide opportunities for airports to enwhich can lead to additional service opairfares. Airports’ vision is to connect local comglobal destinations, enabling travelers their families and grow their businessesuccess is investing in airport infrastrcompletion of needed airport improvemaviation leadership will be diminished astatus as a business and tourism dest
Understanding the Financing Challenge

Although the need for airport improvement projects is clear, airports are not able to fulfill needed capital improvements without modernizing the way we finance such projects. According to the latest 2015 ACI-NA Capital Needs Study, airport capital requirements for the next five years total more than $75.7 billion. That is more than $15 billion a year in needed projects. Currently, there are several mechanisms that fund airport capital improvement projects, including Airport Improvement Program (AIP) grants and locally set Passenger Facility Charge (PFC) user fees.

Airports also utilize bonds – often rerevenue – as a financing mechanism airport improvement projects. It is important to note, however, that a revenue source, and instead are simechanism that must be repaid. As airports – even those with strong crreached their debt capacity and eithnew projects or have had to phase in over a longer timeframe, increasing tdelaying the benefits for passengers
Understanding the Financing Challenge

In 2013, airports collected $2.8 billion in PFC revenue. With more than $15 billion in annual capital needs, current PFC revenue only scratches the surface of airport funding requirements. On top of that, the purchasing power of the PFC has declined by nearly half because it does not keep pace with inflation. This has exacerbated the airport funding challenge.

When airports are not able to keep udemands, they fall behind. The followhighlight just some of the capital neacross the country, the challenges ahow modernizing the PFC cap would crucial safety, security, and capacity 
Meeting Capacity Demands

In 2014, more than 750 million passengers traveled through U.S. airports. Over the next 20 years, the Federal Aviation Administration (FAA) estimates enplanements will grow to more than 1.14 billion. At the same time, the FAA anticipates cargo traffic will double to more than 80 million revenue ton miles. To accommodate increased passenger and cargo demand, airports must keep a constant eye on the future and ensure their facilities are able to accommodate increased growth. >>

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Examples of capacity projects Impacted because of an outdated PFC cap

Airport Los Angeles 

International 

Airport

John F. Kennedy 

International 

Airport

San Francisco 

International 

Airport

Seattle-Tacoma 

International

Airport

Des Moines 

International 

Airport

IATA Code LAX JFK SFO SEA DSM State California New York California Washington Iowa Hub Size Large Large Large Large Small ‘13 Enplanements 32,425,892 25,036,358 21,704,626 16,690,295 1,078,496 Need Improve terminal 

connections to 

move passengers 

through the airport 

complex more 

efficiently

Construct new 

gates to meet 

growing demand 

and increase 

competition; 

Upgrade central 

power plant to 

meet capacity 

needs

$4.4 billion, 

10-year capital 

plan to increase 

capacity and 

enhance safety 

and security

Draft master 

plan points to a 

35-gate expansion 

to meet the 

increasing demand 

at one of the 

fastest growing 

airports in the 

country

Replace existing 

terminal and 

expand runway 

to meet growing 

demand

PFC Constrained Until*

10/1/2019 1/1/2019 10/1/2024 11/1/2028 4/1/2022 

*According to Federal Aviation Administration PFC Approved Locations list expected expiration date found at http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf.
Reconstructing Aging Infrastructure

While airports keep a watchful eye on passenger growth, they must also ensure existing runways and terminal buildings are in good repair to prevent safety problems and service disruptions. The average airport facility in the United States is more than 40 years old, and our newest major airport is 20 years old, so many of its major facilities are coming to the end of their useful lives or need to be rehabilitated. As airport infrastructure continues to age, more and more resources are being focused on reconstruction over new improvements. >>

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Examples of rehabilitation projects Impacted Because of an outdated PFC cap

Airport Denver 

International 

Airport 

Minneapolis-St. 

Paul International 

Airport

Portland 

International 

Airport

San Antonio 

International 

Airport

Lexington 

Blue Grass 

Airport

IATA Code DEN MSP PDX SAT LEX State Colorado Minnesota Oregon Texas Kentucky Hub Size Large Large Large Medium Small ‘13 Enplanements 25,496,885 16,280,835 7,452,603 4,005,874 539,238 Need Renovate 

terminals, improve 

baggage system, 

rehabilitate airfield 

pavement, and 

upgrade airfield 

lighting system

Replace jet 

bridges and 

undertake reliever 

projects for 

greater efficiency

Terminal 

improvements to 

maintain efficiency

Major runway 

rehabilitation

Perimeter road 

repair

PFC Constrained Until*

2/1/2029 10/2/2018 11/1/2034 7/1/2025 2/1/2038 

*According to Federal Aviation Administration PFC Approved Locations list expected expiration date found at http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf.
Ensuring Compliance with Design Mandates

As highly regulated facilities, airports are required to comply with myriad federal, state, and local regulations, including regulations stemming from the Federal Aviation Administration (FAA) rules, American Disabilities Act (ADA) compliance, and much more. As such, airports are continually reviewing airport design standards to ensure compliance and improve airport safety and efficiency. >>
Examples of compliance projects Impacted because of an outdated PFC cap

Airport Oakland 

International 

Airport

Dayton 

International 

Airport

Jackson 

Municipal Airport 

Authority

Asheville 

Regional 

Airport

Stockton 

Metropolitan 

Airport

IATA Code OAK DAY JAN AVL SCK State California Ohio Mississippi North Carolina California Hub Size Medium Small Small Non-Hub Non-Hub ‘13 Enplanements 4,770,716 1,244,841 595,951 342,400 71,757 Need Perimeter-dike 

repair to meet 

FEMA’s current 

flood-control 

standards

Rehabilitate 

airport terminal, 

which dates 

back to 1958, to 

bring the it up 

to modern code 

requirementsrepair

Complete a runway 

and taxiway 

improvement 

project to meet 

FAA standards

Airfield 

redevelopment 

project

Install an ADAcompliant elevator 

PFC Constrained Until*

2/1/2030 4/1/2019 2/1/2031 4/1/2024 6/1/2016 

*According to Federal Aviation Administration PFC Approved Locations list expected expiration date found at http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf.
Enhancing Safety and Security and Promoting 

Environmental ProtectionJust as aircraft technology evolves, safety and security challenges are constantly changing, especially as threats become more complex and passenger demand increases. Airports must continually work to ensure the safety and security of the traveling public. Airports are also responsible stewards of the environment, including noise concerns and deicing processes during winter operations. An airport’s ability to maintain safety, security, and environmental challenges promotes efficient airport operations and reduced flight delays. >>
Examples of Safety, Security and Environmental projects Impacted because of an outdated PFC cap

Airport Norman Y. Mineta 

San Jose

International

Airport

Pittsburgh 

International 

Airport

Indianapolis 

International 

Airport

Reno-Tahoe 

International

 Airport

Gerald R. Ford

International

Airport

IATA Code SJC PIT IND RNO GRR State California Pennsylvania Indiana Nevada Michigan Hub Size Medium Medium Medium Small Small ‘13 Enplanements 4,315,839 3,812,460 3,535,015 1,671,926 1,123,257 Need Needs higher 

fencing and 

additional 

intrusion detection 

technology 

for enhanced 

perimeter security

Deferred 

environmental 

improvement 

projects, including 

a deicing storm 

water treatment 

plant

Improve deicing 

facilities to 

protect the 

environment and 

improve winter 

operations

Expand Customs 

and Border 

Protection 

facilities to 

accommodate 

increased demand

$26 million 

consolidated 

checkpoint project

PFC Constrained Until*

5/1/2029 12/1/2024 10/1/2022 7/1/2018 6/1/2023 

*According to Federal Aviation Administration PFC Approved Locations list expected expiration date found at http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf.
Accommodating Aircraft Innovation

Airplane manufacturers play an important role in helping airlines meet global route planning and capacity goals through cutting-edge aircraft design and innovation. Airport infrastructure decisions are based partly on forecasts prepared by the major airplane manufacturing companies. One major aircraft manufacturer expects the world fleet of aircraft to more than double by 2033. When global route networks grow, especially routes connecting the United States to emerging travel markets like the Middle East, U.S. airports must ensure they are able to accommodate airplanes of all sizes and weights. >>

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Examples of accomodation projects Impacted because of an outdated PFC cap

Airport Dallas/Ft. Worth 

International 

Airport

Newark Liberty

International

Airport

La Guardia

 Airport

San Diego

International

Airport

Kansas City 

International 

Airport

IATA Code DFW EWR LGA SAN MCI State Texas New Jersey New York California Missouri Hub Size Large Large Large Large Medium ‘13 Enplanements 29,038,128 17,546,506 13,372,269 8,878,772 4,836,221 Need Reconstruct 

taxiways to 

accommodate 

larger aircraft

Airfield 

improvements 

to reduce traffic 

delays

Airfield 

improvements 

to reduce traffic 

delays

Rehabilitate 

a runway and 

relocate a taxiway

Deferred a 

major runway 

replacement 

and taxiway 

reconstruction

PFC Constrained Until*

9/1/2034 7/1/2018 1/1/2019 11/1/2037 4/1/2021 

*According to Federal Aviation Administration PFC Approved Locations list expected expiration date found at http://www.faa.gov/airports/pfc/monthly_reports/media/airports.pdf.
Conclusion

The nation’s airport system is aging and at risk of falling behind. Many airports have exhausted the financial resources available to them. As a result, some airports have delayed projects or undertaken projects using longer timeframes which only drives up the cost. A modernized PFC and a strong AIP will allow airports to do what they do best: serve their passengers with safe, secure, and efficient facilities, as well as effectively planning for the future. Ultimately, the airport is in the best position to determine of what its future will hold in terms of competition, traffic, and capacity. Modernizing the PFC and maintaining AIP will give airports and their communities control how to best address their individual needs. >>

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