Document Sample
                                                                                                Airports Council International-North
By John F. Infanger, Editorial Director                                                         America

AN INDUSTRY                                                                                         Answers provided by Greg Principato, president

                                                                                                     On what the aviation industry will look like in five years and,

IN A STATE OF FLUX                                                                              specifically, the airport segment ...
                                                                                                     Over the long-term, FAA and industry analysts agree that pas-
                                                                                                senger enplanements will continue growing, reaching about 850
                                                                                                million in 2014 and one billion by 2021. That means that airports
                                                                                                                                                                           Greg Principato

Our annual report with a twist — getting                                                        must invest additional resources in capital projects to increase the safety and efficiency
                                                                                                of their operations.
the trade groups’ perspective in one forum                                                           Increasingly airports are recognizing that reliance on aeronautical revenue to fund
                                                                                                the needs of passengers and shippers is not an effective long-term strategy. Throughout
Since our annual ‘State of the Industry’ report of June 2008, the world has                     North America, airport managers are developing creative ways to diversify their revenue
                                                                                                stream, focusing on a wide variety of non-aeronautical revenues including retail and
turned upside down. About the only positive since that last report is that                      other concessions, indoor and outdoor advertising, parking fees, and real estate develop-
the price of oil, skyrocketing one year ago, has stabilized. Serious issues                     ment. A recent ACI World survey indicates that non-aeronautical revenues [currently]
challenge the aviation industry — from airports to airlines to business and                     generate around 50 percent of airport industry revenues globally.
general aviation. For a comprehensive perspective on the issues and the
                                                                                                     On the top three issues facing airports ...
potential solutions, AIRPORT BUSINESS asked the key trade groups                                     • FAA reauthorization. H.R. 915 provides $16.2 billion for the Airport Improvement
representing the various aviation interests to offer their insights into where                  Program and a $2.50 increase in the Passenger Facility Charge. Fully adjusting the PFC
the industry is headed overall, and the specific challenges facing each                         to account for construction cost inflation would place the fee at $8.18.
group. Their edited responses are featured here, along with insights from a                          • Reduced air service and capacity cuts. Since last summer, airports have carefully
                                                                                                evaluated their operations, cutting their budgets and in some cases reducing their airline
business aviation analyst.                                                                      landing fees and rental charges in an effort to maintain current levels of air service.
     Interestingly, one of the top issues         in 2009, followed by average growth of             • Security. It continues to be a critical issue for airports. H.R. 2200, the Transportation
of the past three years, reauthorization          2.7 percent through 2025. Last year, FAA      Security Administration (TSA) Authorization bill [includes] a requirement that an air-
of the Federal Aviation Administration            predicted that the U.S. carriers would        port security plan put procedures in place to ensure the federal security director of the
and the U.S. aviation system, appears to          transport one billion passengers by 2016;     airport is notified whenever federal, state, or local law enforcement is called to an aircraft
be nearing a resolution.                          they are not expected to do so now until      or onto the airfield; a section establishing an Aviation Security Advisory Committee,
     The two top roadblocks that have             2021. In 2008, domestic enplanements          consisting of 27 members of the aviation industry; and a section which creates a biometric
held that up in Congress have been pro-           dropped to 679.6 million, down from           identifier airport access enhancement demonstration program.
posed new user fees and the ongoing               690.1 million in 2007.                             It is clear that more effective security procedures can be developed in cooperation
dispute between FAA and the air traffic                Regarding general aviation IFR           with airports; [an H.R.915] amendment would return the well-established “notice and
controllers. Congress has at least tempo-         operations, FAA sees total ops dropping       comment” protocol that unfortunately TSA has not often used.
rarily moved past the user fee issue, while       some 5.5 percent in 2009, followed by an           • Environment. Airports have been taking steps to reduce pollution, consume less
a mediation group has been set up with            annual growth rate of 1.7 percent.            energy, and reduce consumption of scarce natural resources. Airports are community
former FAA Administrator Jane Garvey                   Meanwhile, airlines in the U.S. and      leaders initiating voluntary environmental programs rather than just responding to state
to resolve the controllers dispute.               globally continue to bleed money. With        or local mandates. ACI-NA is seeking federal help in the United States to go further
     Yet, the Obama Administration indi-          each new forecast by the International        with funding assistance for pilot programs that will allow airports to continue their
cated this spring that the user fee debate        Air Transport Association comes more          environmental leadership.
may be taken up another day.                      dire projections on airline losses for the         ACI-NA remains a member of the Commercial Aviation Alternative Fuels Initiative
     On May 21, the U.S. House of                 foreseeable future — that despite lower       Coalition to identify alternative aviation fuels. We ar
Description: Whether it's a curfew or a nighttime ban on jet operations ... it all stems from the fact that people say, that's my local airport and we should have complete control. We'll dictate how it works. In a nation that's trying to have a federal system of airports and a national policy, that's very problematic. We don't think that we should have a patchwork quilt of unique airport regulations.
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