Members of Congress Announce Framework for Infrastructure Bill That Includes a PFC Increase

Last week, ACI-NA welcomed the news of an infrastructure investment framework – called the “Moving Forward Framework” – which was announced by a group of Members of Congress, led by House Transportation and Infrastructure Chairman Peter DeFazio (D-OR). The start of the new year represents an important opportunity for Members to announce their top policy priorities and we are pleased that improving airport infrastructure across the U.S. is a high priority for so many Members, as well as the American people.

The Moving Forward Framework calls for raising the federal cap on the Passenger Facility Charge (PFC) and indexing it for inflation. If enacted into law, a lift on local PFCs would allow airports to fund necessary infrastructure improvements, including repairing aging facilities and making expansions to accommodate record-breaking passenger traffic.

In his remarks, Chairman DeFazio highlighted how airports are in dire need of infrastructure upgrades and addressed the fact that the very same airlines who are comfortable with increasing baggage fees oppose an updated Passenger Facility Charge because they know it will increase airline competition in many airports. You can watch his remarks here.

Immediately following their announcement, ACI-NA President and CEO Kevin Burke thanked the group, and specifically Chairman DeFazio, for their leadership.

“The House Democrats’ infrastructure framework recognizes the time has finally come to increase the woefully outdated PFC,” said ACI-NA President and CEO Kevin Burke. “A long-overdue adjustment to the Passenger Facility Charge (PFC) will provide the lift America’s airports need to take off into the future. Unlike a $40 bag fee that just pads an airline’s bottom line, a modernized PFC will help our terminally challenged airports make transformative investments in new infrastructure that will improve the passenger experience for millions of travelers. I am particularly thankful for the leadership of Chairman DeFazio, the father of the PFC, for making this one of his top legislative priorities.”

Burke also joined American Association of Airport Executives President and CEO Todd Hauptli and Airport Consultant Council President T.J. Schultz in a joint letter thanking Chairman DeFazio for his leadership on this issue. In the letter they write:

“…we strongly support proposals in the House Democrats’ infrastructure framework that call for raising the federal cap on local PFCs and indexing it for inflation. We are grateful for your leadership. We look forward to working with you and your colleagues to advance legislation that would help airports finance critical projects and repair our nation’s infrastructure.”

Just this month independent research from RAND Corporation confirmed the best way to fix America’s airports is by modernizing the PFC. Further, according to a recent ACI-NA study, U.S. airports face more than $128 billion in infrastructure needs by 2023, with over 56 percent of the needs inside aging terminals. President Trump has repeatedly called for renewed investment in American airports, so we will be listening closely for any references to infrastructure investments in his State of the Union address.

We look forward to working closely with Congress to get this framework over the finish line so that we can finally empower airports to improve their infrastructure and continue to meet the demands of the traveling public.

The Countdown Begins: REAL ID Will Be Required for Air Travel in Exactly One Year

Earlier today, Airports Council International-North America (ACI-NA) President and CEO Kevin Burke teamed up with travel industry leaders and government officials to urge the traveling public to obtain REAL ID compliant identification.

The REAL ID Act, which was passed by Congress in 2005, implements a 9/11 Commission recommendation for the Federal Government to “set standards for the issuance of sources of identification, such as driver’s licenses” as a way to enhance aviation security.

“Ensuring the safety and security of the traveling public is the top priority for airports – and REAL ID is an important component of our efforts,” Burke said. “We are encouraging the public to ensure you have a REAL ID compliant license by October 1st of next year. This will be critical to ensure you are able to travel.”

According to a recent study by the U.S. Travel Association, many Americans may not be aware all Americans will be required to have a REAL ID compliant license in order to board a commercial aircraft beginning on October 1, 2020 – just one year from today.

The purpose of this week’s event held at Reagan National Airport in Washington, DC was to encourage the public to obtain proper identification before the rapidly approaching deadline. It also marks the start of a yearlong educational effort by TSA, airports, airlines, and other stakeholders about the importance of obtaining a REAL ID compliant license.

“We are working hard to ensure the public is aware of this fast approaching deadline,” Burke said. “Despite the ongoing efforts to raise awareness, we remain concerned about the small number of travelers who have obtained a REAL ID compliant licenses”

 

 

Some states and airports are already taking advantage of local opportunities to educate travelers. ACI-NA joined with our airline partners and other associations to send a joint letter to each governor of all 50 states and territories, encouraging them to launch public awareness campaigns to more effectively educate residents about REAL ID requirements.

In lieu of a REAL ID compliant license, air passengers are able to use other federally approved identification for air travel, including U.S. passports or Global Entry, NEXUS or SENTRI identification cards.

Burke was joined by Transportation Security Administration Acting Deputy Administrator Patricia Cogswell, as well as officials from Airlines for America, the American Association of Airport Executives, the American Association of Motor Vehicle Administrators, and the DC, Maryland, and Virginia Department of Motor Vehicles commissioners.

You can learn more about the importance of REAL ID here. And don’t forget to save the date for October 1, 2020. Act now to ensure you have a REAL ID.

LAX CEO: We Need to Bring the Passenger Facility Charge Back to its Original Buying Power

Last week, Los Angeles World Airports Chief Executive Officer Deborah Flint addressed the Washington Aero Club at a lunch event in Washington, D.C. In her speech, Flint described Los Angeles International Airport’s (LAX) current $14 billion investment project and how it will help to relieve congestion and improve the LAX travel experience for passengers.

She also discussed how airports across the country are using technology to improve efficiency and ease long lines.

Finally, she urged Congress to return the Passenger Facility Charge to its original buying power by updating it to be $8.50. She noted that it’s been two decades since the PFC was updated and that it’s well overdue that we modernize it to keep up with inflation.

Excerpts from her speech are below.  Her full remarks are available here.

Flint on the need to modernize the PFC:

A new level of investment in infrastructure is needed and for airports this can be real by bringing the Passenger Facility Charge to its original buying power.

“It is time. It has been two decades that the PFC has been unchanged even though there have been 26 models of the iPod, which was released the same year. It has been so long that the styles have even come back – parachute pants and tracksuits are back in again.

The ask is to increase the PFC from $4.50 to $8.50 and index it for inflation in the future. That will make a difference for airports of all sizes – large, medium, and small.”

Flint on LAX’s infrastructure projects:

We are making a $14 billion investment in an Automated People Mover train system, roadways, a Consolidated Rent-A-Car facility that will combine the 20 separate facilities that burden our neighborhoods and roadways, a connection to regional rail, and modernizing each terminal.

“And we are beginning the environmental review to improve the airfield, build a new concourse off of Terminal 1, and a new Terminal 9, which requires billions of additional dollars.”

Flint on airports improving efficiency through biometrics:

Back to my 16 year old and her airport expectations. For her, wifi and cellular are like air – as they have become for all of us. Her face is everything.

“I am talking about biometric aircraft boarding gates, self-baggage drop, TSA and CBP screening – all biometrically enabled at LAX today. While privacy and data security must have high bars, the efficiency of biometrics is astounding. We boarded an A380 using biometric facial boarding in 20 minutes.”

Flint on the future of the airport industry:

Airport by airport, working with our partners in airlines and throughout the industry, we need to be excited, energetic and chase the next evolution. We need to push for our airports to be more innovative, sustainable, to be stewards for local communities, to bring the joy and certainty back to air travel, and together get the funding to invest and let our industry shine. At Los Angeles World Airports our vision is Gold Standard Airports … Delivered.  The U.S. deserves that vision for each and every one of our airports.”

Infrastructure Week 2019: 20th Century Airports in a 21st Century World

Today marks the official start to Infrastructure Week 2019, the long-celebrated week each year when the infrastructure community comes together and engages in a broad conversation about the importance of modern infrastructure.  For us, every week is Infrastructure Week (we’re not the first ones to make that joke and we won’t be the last…), but we’re proud to join in and represent airports in such an important dialogue this week.

As part of our participation in Infrastructure Week, ACI-NA will continue to amplify our important message about the need to invest in America’s aging airports.  Beginning today, passengers in airports will have the opportunity to hear directly from ACI-NA on the benefits of an improved and modernized airport system.  Watch by clicking below.

We couldn’t think of a better way to get our message in front of those who stand to benefit the most from the improved passenger experience, increased airline competition and lower airfares, and enhanced safety and security that will come when we meet the nearly $130 billion in infrastructure needs of America’s airports over the next five years.

We are proud to count CNN Airport Network as a valued ACI-NA member and an active participant in our Beyond the Runway Coalition.  CNN Airport Network’s tremendous support for our industry is greatly appreciated as we ramp up our efforts to engage in a broad conversation about the importance of modern airports to local communities.

For the latest on Infrastructure Week, visit the Centerlines NOW blog or following along on social media using #InfrastructureWeek #BuildForTomorrow.

Canada’s Airport Capital Assistance Program Needs Reform – Urgently

By Chris Phelan, Vice President, Industry and Government Affairs, Canadian Airports Council

The Canadian Airports Council has joined with several other Canadian associations that represent local and regional airports to send a national, united message to the government of Canada: Reform the Airport Capital Assistance Program (ACAP) to provide more funding and modern criteria that better matches needs and realities of small airport capital or run the risk of air services declining for Canadians living in small communities.

ACAP was created in 1994 as a companion to the National Airports Policy (NAP), which handed over the operations of the majority of airports from the federal government to private sector airport authorities or in the case of most small airports, local interests. ACAP recognizes that although the intent of the NAP was to ensure that airports would be both self-governing and self-financing, small airports did not have the critical mass of passengers to generate enough funds to pay for capital improvements related to safety. ACAP is intended to fund financial projects related to safety, asset protection and operating cost reduction. Overall, there are approximately 200 regional/local airports in the country that are eligible for ACAP funding.

Fast forward 25 years and ACAP has become an invaluable source of funding for the airports that are eligible for it. But, gaps and issues with the program have not been addressed and are becoming more acute.

In the last quarter century airports have seen air demand – and complexity – soar. Today, Canada’s airports are expected to serve passengers with increasingly diverse needs and must fulfill new safety requirements that have changed and become more complex over time. To provide context, just one runway rehabilitation project covered by ACAP costs about $12 million, almost one-third of the total ACAP funding envelope. Yet ACAP funding has not risen since 2000, nor has the program adapted to the changing air service environment.

While there have been program improvements in recent years, funding has failed to keep pace with demand for ongoing safety and security maintenance. ACAP receives $38.5 million in federal funding a year, an amount that has not changed in 18 years. The funding shortfall is exacerbated by the fact that Canada’s airports also face a host of new regulatory requirements in the coming years that have not been addressed in any way by the government program.

In order to be eligible for ACAP funding an airport must:

  • Not be owned or operated by the federal government;
  • Meet certification requirements; and
  • Offer year-round regularly scheduled commercial passenger service.

Further, in each of the three previous calendar years, the airport must have handled at least 1,000 year-round regularly scheduled commercial passengers, although airports designated as a “Remote Airport” under the NAP, do not need to meet this requirement.

Not all airports are funded equally. ACAP funding is pegged to the level of airport activity. For example, an airport with fewer than 50,000 commercial passengers receives 100 percent funding for projects. That number decreases by increments of 5 percent for every increase of 15,000 passengers. When an airport reaches 525,000 passengers, the funding is listed at 0 percent.

The current categories for ACAP funding are:

  1. Safety-related airside projects such as rehabilitation of runways, taxiways, aprons, associated lighting, visual aids, sand storage sheds, utilities to service eligible items and related site preparation costs, including directly associated environmental costs, aircraft firefighting equipment and equipment shelters necessary to maintain the airport’s level of protection as required by regulation.
  2. Heavy airside mobile equipment and safety-related items such as runway snowblowers, runway snowplows, runway sweepers, spreaders, winter friction testing devices, and heavy airside mobile equipment shelters.
  3. Air terminal building/groundside safety-related considerations such as sprinkler systems, asbestos removal, and barrier-free access.

As it stands, ACAP is underfunded, overly complex, highly prescriptive, suffers from a lack of transparency, and has not kept pace with changes to regulatory and weather safety equipment needs.

Working with its counterparts, Atlantic Canada Airports Association, Airport Management Council of Ontario, Réseau québécois des aéroports, BC Aviation Council, Manitoba Aviation Council and the Saskatchewan Aviation Council, the CAC is working to develop a set of recommendations to the government on how ACAP may be improved. This coalition believes that we are at a critical time for airports. Given the above-mentioned changes, adjustments need to be made to ACAP to make it more responsive and useful to those that rely on the program.

If ACAP funding kept pace with inflation, the annual budget for 2019 would be approximately $56 million.

Unfortunately, even if the government tried to catch up by raising the program level to $56 million to match inflation, ACAP would still be underfunded because new safety requirements will be putting even more pressure on the funding envelope. These new regulations are neither minor nor cheap. They include upgrades to accessibility, changes to the Aerodromes Standards and Recommended Practices and the Accessible Canada Act, as well as changes to Global Reporting Format/Takeoff and Landing Performance Assessment (GRF/TALPA) and new Runway End Safety Area (RESA) requirements. RESA alone will cost Canada’s small airports at least $165 million to fully implement. The pressure is on ACAP to fund these new initiatives, but it doesn’t have the financial resources or mechanisms in place to handle its existing commitments, let alone these new requirements.

To complicate matters further, airports are facing new challenges that were not even imagined in 1994. These include the impact of climate change, which causes changes in storm patterns and freeze/thaw cycles that place additional strain on equipment. ACAP must stay current with new needs by adopting a new forward-thinking dynamic program design that can account for and adapt to climate and other factors associated with the geographical location of the airport.

Make accessing the program simpler, more transparent and more predictable

Based on member and industry experience with ACAP, the CAC has determined that ACAP criteria need to be modernized. Runway length and passenger volumes are not appropriate measures for equipment requirements. The amount of precipitation should be a factor in determining the size of a plow eligible (or other type equipment) for funding. An airport in southern Ontario has different needs than one in Northern BC, and so forth. One size does not fit all, especially when it relates to transportation infrastructure.

Moreover, the complexity of the application process is a challenge in itself. Airports go through an extensive consultation process with Transport Canada staff regarding needs, eligibility parameters, thresholds and airport conditions and also discuss the likelihood of being considered for funding if a project were submitted. The result is some category level 2 projects and most of category level 3 projects are being pushed further and further into the future.

In fact, in the program’s 25 years of existence, and having funded almost 1000 projects, only 18 of those projects have been category 3. This inequity of funding approvals is now shaping behavior. Recognizing the low probability of receiving funding for a category 3 project, airports are simply not applying for those projects. Ultimately this gives the government a false impression of need – airports are not applying, therefore, there is not demand. Meanwhile, the reverse is true and with changes to accessibility regulation and legislation, this need will only be more pronounced.

While the CAC recognizes that Transport Canada has made efforts to improve the ACAP application process when consulting companies offer services to help airports prepare applications, the process is overly complicated.

The coalition will be conducting its research and developing its recommendations over the coming months. If this year’s federal budget doesn’t address ACAP funding, given the time horizons and realities of the 2019 election cycle, the group is hoping to have its input considered and implemented for Budget 2020.

In the meantime, the CAC will be more visible with our asks of the political parties as they compete for votes in the 2019 election. In fact, one of the main asks of all political parties is to increase funding for small airport infrastructure programs for safety and security.

SLC – Designing for the Future

By Bill Wyatt, Executive Director, Salt Lake City International Airport

I’m often asked why, after a week of retiring from the Port of Portland (PDX), I decided to accept an offer to go back to work as the new executive director of the Salt Lake City International Airport (SLC).

The reason is simple: SLC is building what will be the first new hub airport in the country in the 21st century. We’re not talking a remodel or an expansion, but an entirely new airport. The new airport will secure SLC’s position as a global aviation hub that will serve and grow with the region for decades to come.

As with many airports, SLC is experiencing tremendous passenger growth and operating in facilities that are over-utilized and well past their prime. The history of SLC goes back to 1961, when Terminal 1 first opened. Over the years, we added Terminal 2, additional concourses and an International Terminal. Our newest building is the International Terminal, which was constructed more than 20 years ago.

Our facilities were originally built to accommodate 10 million passengers and, today, SLC is seeing upward of 25 million passengers each year. We have become a thriving hub airport for Delta Air Lines and today are Delta’s fourth largest hub.

Our passengers experience congestion at SLC daily, whether it’s curbside, in the parking garage or when trying to find a seat in gate hold areas and restaurants. Plus, the lack of available gates limit new air service to SLC.

But that will all change the fall of 2020, when the first phase of The New SLC Redevelopment Project opens with a parking garage with double the capacity, one central terminal with 16 security lanes and portions of two new concourses. Once we open the first phase, the process to build the second phase begins with the demolition of current facilities, which allow construction to the east to commence. Come 2025, the entire project will be complete and passengers will travel through an entirely new, modern airport.

The advantage to building a new airport is that you can design for the future. The New SLC will be more efficient and more sustainable. The new concourses are designed in a parallel configuration, which will eliminate aircraft bottlenecks, so airlines can get their planes back in the air faster.

We are also aiming for a LEED Gold Certification from the U.S. Green Building Council and plan to achieve this through a variety of ways, such as converting all airline ground service equipment to electric by 2023. The use of natural light will also help to achieve our energy goals.

Those who have arrived at Salt Lake City may have experienced a phenomenon that is unique to our airport and which we are addressing in the new terminal. Thousands of young men and women travel around the world on missions for the Church of Jesus Christ of Latter-day Saints and depart from our airport. SLC is also the place where friends and families come to greet these missionaries when they return home. It’s not unusual to see large gatherings at the luggage carousels with family and friends holding signs welcoming back their loved ones. This also presents a challenge to passengers attempting to get their luggage. In the new terminal, we will have a Meeter-Greeter Room where those waiting for passengers to arrive – whether they be military personnel, missionaries or a winning sports team – can relax in a comfortable setting.

But beyond the brick and mortar, the new airport has been designed to leave a lasting impression on travelers. Art and other elements will provide a sense of place through the use of sandstone, copper colors and native plants. The design incorporates plenty of windows to provide views of the mountains from many vantage points throughout the airport, including from an outdoor deck from Delta’s Sky Club.

Passengers will be wowed by massive art installations, such as The Canyon, which is being integrated on both walls of the airport terminal. The Canyon evokes the Salt Lake City landscape and spans roughly the size of a football field.

An expanded concessions program with 29 retail stores was recently announced and includes a mix of local, regional and national brands, including new brands such as Coach, Frye and Mac. The restaurant program announcement is coming soon and is expected to be just as impressive.

And the good news keeps on coming. The $3.6 billion-plus airport is being built without one cent of local tax payer dollars. For years, SLC was the only large-size, hub airport in the country to be debt free. That has since changed, but the foresight of those planning this project allowed the project to begin with savings. It will all pay off in the end. A recent economic impact study showed the project is contributing approximately $5.5 billion to the local economy.

SLC is currently one of the nation’s most cost-effective airports for airline operations and plans to maintain one of the lowest CPEs in the country for a hub operation.

So you can see why my plans to retire have been put on hold – so that I can be part of this remarkable program that will make traveling through SLC truly unforgettable.

Checked Facts: Airports Are Not Taxpayer Funded

Benjamin Franklin said there are only two certainties in life: death and taxes.  If there’s one more thing we can be certain of on April 15, it’s the airlines continuing to spread misinformation about how America’s airports are funded.

It is common misconception that airports are funded with taxpayer dollars.  In reality, infrastructure projects at airports in the United States are funded through three key mechanisms: federal grants through the FAA’s Airport Improvement Program (AIP), the Passenger Facility Charge (PFC) local user fee, and tenant rents and fees.

No matter how many times the airlines repeat it, the PFC is not tax. The PFC is a local user fee that airports rely on to repair aging facilities, improve aviation safety, improve the passenger experience, create more airline competition to lower airfares, and accommodate rising demand.  With nearly $130 billion in infrastructure needs over the next five years, the PFC is the cheapest and most sustainable option available.

Here’s why:  The PFC empowers those who know the most about the local airport needs, infrastructure investments, and safety upgrades to make the best decisions for the airport while balancing the passenger’s interests. The PFC is collected locally and, unlike other aviation-related fees and taxes, stays local. It never gets passed to Washington, D.C. The PFC is the only funding tool that maximizes this kind of critical local control.  The airlines’ erroneous “tax” argument doesn’t hold water.

Today’s modern conservative movement is diverse and often fractious, so it can be hard to find unanimity on almost any issue. But when it comes to support for the PFC, conservative think tanks and advocacy groups speak with a clear voice in support of this quintessential user fee.

The Competitive Enterprise Institute, FreedomWorks, Heritage Foundation, Heritage Action, Reason Foundation, Council for Citizens Against Government Waste, Taxpayer Protection Alliance, and Citizen Outreach are some of the leading anti-tax and free market organizations that agree the PFC is a local user fee.

User fees represent a better way to pay for infrastructure. Under this system, the people who actually use the airport bear the burden of upkeep and modernization. That is the most fair and equitable way to fund it – passengers who don’t use the airport will never be asked to pay for it. Americans certainly deserve to keep as much of their hard-earned money as possible.  How else would they be able to pay all those exorbitant airline bag fees?

Airports Gobble Up More of the National GDP

 

Every year, Thanksgiving brings an opportunity for American’s to celebrate and give thanks for what is most valuable to them. ACI-NA has always maintained that airports are valuable economic engines for their local communities and the nation. I’m thankful that still stands true today.

Our latest economic impact study finds that the 493 commercial airports in the U.S. have a collective national output of $1.4 trillion. That equates to a contribution of more than 7 percent to the GDP. What’s more, airports support a total of 11.5 million jobs and create a total payroll of $428 billion.

It’s clear airports are an important piece of the pie when it comes to our economy. But, these numbers also highlight the challenges facing our airports to meet the growing demands of the future.

Last year, more than 1.8 billion passengers arrived at and departed from U.S. airports.  So far, our airports are on pace to surpass last year’s numbers even as we embark on the busy holiday travel season.

Last week, TSA estimated 25 million passengers will travel through airports during the Thanksgiving travel period this year. That’s an increase of 5 percent from 2017.

With the number of passengers on the rise, our airports are at risk at falling. Airports have nearly $100 billion in significant infrastructure needs that threaten their ability to serve their passengers, grow their local economies, and create good paying jobs.

This economic impact study will serve as a staunch reminder to policymakers in local communities and Washington, DC that airports are valuable assets. In fact, it only helps us make our case that we must provide airports with the tools they need to make local infrastructure investment decisions.

I encourage you to join us in sharing the impact of your airport in your community with your policymakers and local partners.  As a collective voice, we can amplify the message that America’s airports need additional infrastructure investments to remain the powerful engines of economic growth they are.

Happy Thanksgiving!

 

Kevin M. Burke

President and CEO

Airports Council International – North America (ACI-NA)

 

Will Technology Solve the Capacity Crisis?

Passenger numbers are expected to double by 2035.
IoT queue measurement technology enables airports to keep waiting times from growing.

By Marc Rauch, Xovis

The airport industry stays on the rise, while a capacity crisis is on the horizon. The International Air Transport Association (IATA) expects 7.2 billion passengers to travel in 2035, almost twice as much as today.

As many airports are landlocked and can’t just go bigger, the climbing passenger numbers further complicate the fight against long queues and waiting times. Already today, passengers at major US airports sometimes have to slog through a queue for over an hour. As a result, passengers spend less: according to an industry survey, an extra 10 minutes spent in a queue at security reduces a passenger’s spending on retail by 30 percent. How can airports prevent queues and waiting times from growing along with passenger numbers? Is there a way to streamline passenger flows within existing capacities to increase both passenger satisfaction and revenues?

REAL-TIME DATA AGAINST WAITING TIMES

There is good news: queue and passenger flow measurement technologies pave the way for preventing queues from building up and frustrating passengers. Not surprisingly, RFPs for queue measurement systems have been sprouting lately. More and more North-American airports count on robust real-time data from an IoT system with 3D sensors and software solutions: Ceiling-mounted 3D sensors count and track all passengers anonymously. The software receives data streams from the sensors and calculates the KPIs such as queue lengths, waiting times, process times and passenger throughput. The real-time data can be accessed by airport staff members and shared with passengers.

MSP: SMOOTH OPERATIONS AFTER SUPER BOWL LII

As the host airport for Super Bowl LII, Minneapolis-St. Paul International Airport (MSP) pleasantly surprised passengers with shorter than expected waiting times the Monday after the Super Bowl. The airport broke its single-day record up to that time for the number of passengers screened, with 60,455 passengers going through its security checkpoints. This was nearly double the airport’s average day and well above the 40,000-plus that are screened daily during the busy spring break period.

3D sensors at security checkpoints helped smooth operations, measuring queue length, waiting time, and process time per security lane as well as other KPIs. “We aim to create a seamless passenger experience, using passenger flow technology to link together every touchpoint of the departure lobby area, the checkpoint locations, and all the way to the gate,”  said Eduardo Valencia, Vice President, Chief Information Officer at Metropolitan Airports Commission, which operates MSP and six general aviation airports.

“The real-time data the sensors provide is shared with all of the stakeholders and helps the Transportation Security Administration manage its security lines more efficiently,” said Phil Burke, Director of MSP Operations for the Metropolitan Airports Commission. “The system is also useful to passengers, who can choose the shortest lines based on wait times displayed on digital signs in the departure lobbies.”

MSP is one of four US airports that process more than 38 million passengers per year and count on a combination of 3D sensors and software solutions. Many more US airports and authorities are currently conducting trials to find the right queue and passenger flow measurement system.

THE DIGITAL TRANSFORMATION OF PASSENGER FLOWS AND QUEUES

Some airports are using tracking systems to help with passenger flows and queues. IoT systems in particular, combined with 3D sensors and software solutions measure KPIs such as waiting times, process times and passenger throughput. For example, Swissbased Xovis has equipped 352 sites (from check-in to gates, and from gates to taxi ranks) at 66 international airports with the Xovis Passenger Tracking System (PTS). Airport operators around the globe also use this system to monitor the fulfilment of Service Level Agreements (SLAs) and to compare standard and new processes at security checkpoints (e.g. automated vs. conventional screening).

At landlocked Dubai International Airport (DXB), the third largest airport in the world, over 5,000 staff members use the data on their mobile phones and tablets to react upon identified bottlenecks. If the waiting time in a certain area exceeds a defined threshold, the team is alerted and can send more staff members and open more counters. DXB has reduced waiting times by a remarkable 10 per cent during the first three months of 2017. “This automated system provides us with timelier and more accurate data more quickly than the manual system that was used previously. As a result, the operations team and other organizations that work across the airport now have a bird’s eye view of bottlenecks, allowing them to better manage staffing levels and lanes, and improve the overall customer experience. We have more work to do in this area, but we are pleased with progress to date,” said Frank McCrorie, Senior Vice President of Operations at DXB.

BENEFITS FOR ALL AIRPORT STAKEHOLDERS

Smaller airports also aim at streamlining processes with a combination of 3D sensors and software solutions. Helsinki Airport (HEL) is an important hub for air traffic between Europe and Asia and serves as a good example to visualize the positive impact a reliable queue measurement system can have. Currently, HEL increases its annual passenger throughput from 19 million to 30 million. Antti Tikkanen, Business Analyst within the Digitalization Program at Finavia, the operator of HEL, describes how the airport benefits from the system: “Our 900 million Euro ($1.05 billion USD) Development Program includes both the optimized utilization of existing facilities and the adding of new sections. Having a technology in place to move the increasing number of passengers efficiently is key to improving the passenger experience. We now have the required real-time data to communicate effectively with all stakeholders and to keep queue lengths and waiting times as short as possible.”

A.I. FOR A SEAMLESS TRAVEL EXPERIENCE

With the right IoT queue measurement system up and running, airports can actively tackle the capacity crisis and shape the digital transformation on their premises. A.I.-powered 3D sensors will further perfect the accuracy of the gathered real-time data and enable new applications, in particular where anonymous passenger tracking over long distances leads to new insights. In the end, passengers will benefit the most from a seamless travel experience. As they save time from shorter queues, they are likely to spend more money in other areas of the airport.

ABOUT THE AUTHOR

Marc Rauch is Managing Director for Xovis USA in Boston, MA. Prior to joining Xovis, Marc worked for more than 10 years in various capacities for Xovis’ first customer, Zurich Airport. Founded in 2008, Swiss home-based Xovis has evolved from a three-man start-up to a high-tech company with more than 80 employees. Since its opening in September 2017, Xovis’ US office has grown from a one-man show to a team of five highly motivated and skilled employees.

BNA Is Ever-Expanding

By Douglas E. Kreulen, A.A.E., President and CEO, Metropolitan Nashville Airport Authority

Nashville is on fire – there really is no other way to describe it. Always a great place to live, the city is now receiving an unprecedented level of attention from all across the country and beyond. National Geographic Traveller U.K. included Nashville on its “Cool List,” Business Insider named Nashville as one of the “33 Trips Everyone Should Take in the U.S. in 2018,” Forbes “The 20 Happiest Cities to Work in Right Now” list included Nashville, and the lists and accolades just go on and on. The word is out, and the world is coming here to see for themselves. In fact, according to recent U.S. Census estimates, 94 people are moving to Nashville every single day.

As aviation industry professionals, you know how this type of popularity and growth can put major demands on transportation facilities. The challenge is to anticipate and address those demands so as to best serve the aviation needs of the community.

The story of passenger growth at Nashville International Airport (BNA) has followed an irregular path. Nashville’s current terminal opened in 1987, built to accommodate the hub then-operated by American Airlines. Driven by that hub activity, BNA grew to serve more than 10 million passengers by 1992, though only 15 percent of which were origin and destination travelers. In the next year, however, American began reducing operations at BNA and ultimately “de-hubbed” from our airport, causing a steady decline in overall passenger traffic. As it turned out, the high water mark of 1992 would remain the passenger record at BNA for the next 21 years.

But the city and region continued to prosper, solid and steady, and passenger traffic grew likewise. With the end of the recession in 2009, Nashville boomed and growth surged, along with steep increases in air travel. Since then, we’ve been on a tear. By 2013, BNA finally surpassed that 1992 passenger record, and we would add an additional million passengers or more in each of the following five years, reflecting annual growth rates as high as 11 percent. Most recently, in our Fiscal Year 2018, BNA surpassed 14.9 million passengers, a ten percent increase, with nearly 90 percent origin and destination traffic.

This torrid growth required a response. Today’s passenger numbers are years ahead of the forecast found in our last master plan. It was clear to our Board of Commissioners and executive team that expansion plans needed to be finalized – and accelerated – to accommodate the region’s aviation needs.

So in 2016, after additional passenger analysis and forecasting, research and planning, we launched BNA Vision, our dynamic growth and expansion plan for Nashville International Airport. Upon its completion in 2023, BNA Vision will include a parking and transportation center, a new Concourse D, an expanded central terminal, an airport administration building, a possible hotel and transit connection, and a state-of-the-art International Arrivals Facility, among other features.

This billion-dollar project will be completed in phases, as to limit inconvenience and allow the airport to continue all operations. Current projects under construction include a terminal garage and transportation center; a second garage with an airport administrative office complex on top; Concourse D and ticketing wing expansion; and a terminal apron and taxilane expansion to accommodate the construction of our future International Arrivals Facility.

Our focus is on expanding and renovating BNA, and we’re working at a swift pace to add more than 500,000 square feet to our terminal. But the cranes and construction only tell half the story. Expansion for us also means adding air service to make certain we are taking Nashvillians to as many places as we can in the world while also bringing the world to Nashville.

In May of this year, transatlantic service returned to BNA after a 20-year hiatus. The long sought-after and highly anticipated service to London’s Heathrow Airport via British Airways was largely made possible thanks to the support from our community, business leaders, state and city officials and our Board of Commissioners. This new services truly opens Nashville up to the world with Heathrow serving as a gateway to so much of Europe and Asia. As our airport grows, and as Music City expands its increasingly recognized brand, we anticipate adding more international service to meet local demands and that of travelers worldwide.

And while we bring these dramatic changes to our airport facilities, it is vital that we maintain the sense of place and top-notch customer service our travelers expect. Nashville is truly a unique city – from the extraordinary food scene to the live music day and night for which we’re known. It is important to us that the moment you step foot off that plane you know you’re in Music City. This is top-of-mind with every decision we make during construction – the warm and welcoming vibe, the concession offerings, and especially the music. Our live music in the terminal program recently celebrated its 30th anniversary and touts more than 700 performances a year in six performance areas throughout the terminal, and we plan to add more. Nashville is southern hospitality at its best, and we want to make sure those values remain embodied in our approach to customer service.

So we’ve taken on a big challenge – expand the airport while maintaining that “Nashville feel.” We’re confident we will accomplish our goals thanks to the thousands of our hardworking colleagues and partners from all over Middle Tennessee. These are the people who make the aviation industry go. The people who show up every day, arriving before the sun rises and working until long after it sets, to open our storefronts and music stages, provide passenger safety and make sure our baggage systems are running while tackling so many other tasks necessary to make a modern airport function. Because of their commitment and dedication, we know the best days at BNA are in front of us.

And in this fashion, we’ll provide our world-class city with the world-class airport it deserves.