Category: Finance

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

Posted on | by Scott Elmore

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.

SLC – Designing for the Future

Posted on | by rrudishlaning@airportscouncil.org

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

Posted on | by aci_na_wpadmin

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

Posted on | by aci_na_wpadmin

 

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)

 

Communities Left Behind and Airline Industry Consolidation: The Promise of Airline Deregulation Has Only Partially Been Fulfilled

Posted on | by Scott Elmore

To commemorate the 40th Anniversary of the enactment of the Airline Deregulation Act of 1978, championed by Dr. Alfred E. Kahn while serving as Chair of the Civil Aeronautics Board (CAB) under President Jimmy Carter, various industry experts were asked by the JDA Journal to comment on “whether the Airline Deregulation Act is meeting Dr. Kahn’s vision.” The following is the contribution by ACI-NA General Counsel Tom Devine.

 

The Airline Deregulation Act of 1978 has certainly provided benefits to consumers in many areas, as airlines and others often point out, but the promise of deregulation has not been fully realized, and many communities have been left behind.

Dr. Kahn assumed we could rely on market forces to supplant government regulation, but industry concentration is now higher than it was prior to deregulation, due to waves of industry consolidation in the past decade.  It is also likely that Dr. Kahn did not anticipate the advent and widespread use of ancillary airline fees (totaling more than $20 billion in 2017) that distort market signals.  Moreover, the paucity of viable new entrants and the dominant carriers’ reaction even to small-scale challenges from other carriers has meant that the market has not always been effective in curbing anti-competitive behavior of dominant airlines.  A distorted or constrained marketplace does not realize the benefits of true competition.

Competition also depends on access by airline competitors to necessary airport facilities, such as runways and terminals.  Preserving and enhancing competition was a key goal of Congress in 1990, when it restored, in a limited form, airports’ right to impose per-passenger fees to raise money for necessary airport capital improvements.  This was critical, because, while dominant hub carriers, for instance, were willing to finance improvements to benefit themselves, they were naturally reluctant to fund facilities that would enable competitors to gain access to the airport.  The PFC statute helped solve this dilemma and enhanced competition by explicitly (1) providing that airline agreements could not govern the imposition or use of PFCS and (2) precluding the leasing of PFC-funded gates on a long-term, exclusive use basis.

Unfortunately, the PFC was initially capped at $3 per passenger in 1990 and has only been raised once, 18 years ago, to $4.50.  The erosion of PFC purchasing power over the years–coupled with the fact that many airports’ PFC capacity is fully committed to pay off projects already constructed–thwarts airports’ ability today to fund the necessary infrastructure to provide for competitive entry.

While the ADA provided some mechanisms for addressing communities and consumers that have been disenfranchised, such as the Essential Air Service program, their effectiveness has proven to be limited.  Reduction in air service is the biggest concern of many of our non-hub, small hub, and medium hub airports throughout the country.  While airports are working diligently to take the self-help steps they can to induce, attract and retain air service, the tools and resources available to them are quite limited.

It is in everyone’s interests — airports, airlines, consumers, communities, businesses and the government, alike — to come up with creative and effective ways to ensure that small and medium-sized communities throughout the country have access to, and connectivity with, the national air transportation system and that there is effective competition throughout the system.  Airports currently produce $1.4 Trillion in economic activity.  Expanding access to the national network of vibrant aviation activity to underserved markets and ensuring true competition throughout the system will allow the economic and social benefits of Deregulation to be realized by all.

A version of this column originally appeared in JDA Journal on October 23, 2018. Read the full article, “40th Anniversary of the Airline Deregulation Act: Retrospectives from 7 Different Perspectives” >>

BNA Is Ever-Expanding

Posted on | by Scott Elmore

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.

What’s On Trend for 2019?

Posted on | by Scott Elmore

By Sandy Smith

As airports continue to focus on an improved customer experience, they are looking beyond and outside of the box to pinpoint areas that could use improvement – even though there might not be any obvious need for changes. Figuring out what travelers need – before they have figured it out themselves – is what sets airports apart and leads to an airport becoming an experience and adventure, not just a waypoint.

Getting travelers in and out smoothly and providing creature comforts can make or break a traveler’s perception of the airport, too. This important leg of the customer journey requires skilled service providers who bring unique services. These valuable partners can provide much needed services when there’s been a flight delay or a connection missed. And they might just employ the first human a traveler speaks to on their journey.

The coming year will see these service providers continue to grow in importance to the traveler experience. HMSHost and Uber – both Platinum Plus ACI-NA members – are more than ready for the task ahead and want to help you be ready as well.

Food & Beverage and Retail Morphing Into Immersive Experiences

HMSHost Shares Insights from the Front Lines

Recently Steve Johnson picked up the phone to hear a story from a happy customer.

It was her 10th wedding anniversary and her husband wanted to celebrate at his favorite restaurant. The restaurant, Wicker Park Seafood & Sushi, just happened to be one of HMSHost’s restaurants in Chicago’s O’Hare International Airport.

That story was just one more piece of evidence of the changing face of airport food. As President and CEO of HMSHost, Johnson has had a front row seat to see hot dogs and pizza give way to a true dining experience – if that’s what the traveler wants. As he looks at 2019, it is clear that the traveler is firmly in control and HMSHost and airports are there to ensure that they get what they want. Top of that list: feeling like they’re actually in the city in which the airport resides.

“If you’re looking at where we’re headed in restaurants and food and beverage, we’re focused on an immersive, cultural experience,” Johnson said. “Local brands were the beginning of this process, where you’re trying to create a sense of place, a local feel.”

Food is no longer about filling the tanks after a long day of traveling or grabbing a sandwich for the plane. It’s about creating a dining experience that is worth bragging about.

“If it’s not Instagrammable, it’s not important,” Johnson said. “If they can take a picture of a well-done particular plate, something that their friends would not be able to experience, then we’ve done something.”

The move toward local brands has brought an evolution in HMSHost, too. The company has gone from operating around 100 brands eight years ago to well over 320. Instead of having one restaurant and bar in every airport, it will bring in local name plates, local foods. But that has brought changes, too.

“It took a few years to figure out how to translate local brands to airports,” Johnson said. “It’s a completely different business. Your timeframes are really different. Menus and processes have to change. You go into a 400-square-foot kitchen compared to 2,000. We also found that some of the best local restaurants had no standards or recipes. We had to start from scratch.”

NEW MEANING OF LOCAL

Locally harvested has grown alongside the local branding, and that trend will continue to expand into the coming year. Johnson attributes that to millennials, who want to know where their food comes from. It is an aspect of the overall evolution to more healthy options in the airport.

“Millennials look at things differently and they’re driving some of these changes toward a clean diet with less processed food,” Johnson said. “You make a pizza differently today. It used to be that every pizza made in an airport was from frozen dough. Today, it’s wheat flour, procured locally and made and cooked the same day. It’s made the process more complicated, but certainly more enjoyable.”

These days, most meats, dairies and proteins are procured less than 100 miles from each airport, Johnson said. “It’s changed our supply chain, but for the better.”

TECHNOLOGY DEMANDS

While the move toward local has created opportunities for memorable dining experiences, it has presented HMSHost with a dilemma: integrating technology into its operations. Since it operates restaurants under brand names, customers might be somewhat confused. Take Starbucks, for instance. Outside the airport, the customer can use the Starbucks app to preorder a drink. Not so inside the airport. But Johnson is determined to fix that in 2019.

“Mobile order and pay is probably the biggest gap in what we have today,” Johnson said. “You could be sitting in your office and pull out your phone and book a flight, call an Uber, go through TSA and board with your phone. When you land, you book your hotel and call another Uber. You can check into your hotel room with your phone. In that traveler journey, the only thing you can’t do is order a meal.”

It is a huge hurdle with 2,000 restaurants and 320 brands. “We need to be able to connect to their app through our system,” he said. “That digital journey and handshake is quite complicated.”

The company pilot tested 10 Starbucks with mobile order and pay in 2018 and expects to expand that more fully in 2019.

“You can order your Frappuccino as you come through security. It will tell you your drink will be ready in 12 minutes. You’ll be able to walk up, grab your drink and go. That’s the piece that we want to replicate to as many of our locations throughout the airport as possible.”

It is just one more way that HMSHost is attempting to meet the needs of the traveling customer. It is a juggling act, to be sure. For every person who wants to eat healthy, there is one who wants a treat while traveling. For every person wanting to take a respite and linger over a meal, there is another who needs to grab something in those few minutes on a layover. For every person who wants to be left alone to work (and recharge their phones and spirits) at a restaurant, there is another who enjoys the community table where they can meet fellow travelers. Community tables, by the way, are proving popular. “We don’t build a restaurant without them anymore,” Johnson said. So too are electrical plugs and WiFi; both are essential in every new construction, Johnson said.

Ultimately, it is about giving “customers the choice to decide what’s important,” he said.

He anticipates that choice may be available within the restaurant, too. “I envision the future where you ask, ‘Would you like full service or self service?’ The customers will be in full control of their dining experiences and can leave at their leisure. They won’t be dependent upon anyone to bring the check or return the credit card.”

Smoothing out any bumps throughout the traveler’s day is one of the most important roles that HMSHost plays for its airport and airline partners, Johnson said.

“If you think of a customer’s journey, they have shown up an hour and a half ahead of time, stood in line for 15 minutes to check their bag, gone through TSA and stood another 10-15 minutes. They’re pretty frustrated by the time they get to us. We get the brunt of it sometimes. It’s our job to understand that we can make or break the airport experience.”

Ultimately, the world of airport food has changed dramatically and Johnson finds himself hearing more stories like the anniversary trip for airport sushi.

“When I got into this business 20 years ago, if I told someone I worked in the food business in airports, they would make a face and say, ‘Did you lose a bet?’ When I say that today, they get a gleam in their eye and tell me about a great restaurant in a certain city. It’s no longer a punishment to eat at the airport. It can be a great thrill.”

And it is one that HMSHost is pushing to continue into 2019.

 

Ground and Air Transportation Goals Coming Together

Alignment Is in Commitment to the Customer, Says Uber

While airports focus on creating a happy customer experience onsite, Uber is focused on getting travelers out of the airport. Those goals aren’t as opposing as it might seem.

“Uber and airports are aligned around our commitment to the customer,” said Marcus Womack, Uber’s Director of Product Management. “We believe Uber, airports and airlines can and should be working together to solve the points of friction throughout the passenger journey.”

And for good reason. “Simply, customers have come to expect to have the option to take an Uber or other app-based rides to and from the airport,” he said.

Airports, with their dependable passenger load, are equally as important to Uber drivers. That’s why Uber has focused on expanding its partnerships around the globe. Currently, the company is in 500 airports around the world.

Solving issues for passengers, drivers and airports is a significant goal for Uber in 2019.

IMPROVING THE CUSTOMER EXPERIENCE

Airports haven’t always kept up with this rapidly evolving transition to ridesharing. The result has brought frustration for travelers, especially as they arrive at their destination airport. “We know that a big pain point for passengers is they don’t know where to find the pickup point. Further, they might not know when to request their ride if they don’t trust the driver’s ETA. This is often a function of staging lot location, congestion on the roadways, or confusing decision points for drivers in getting to the correct pickup location. Partnering together, Uber and airports can address this challenge to elevate the customer experience.”

Uber will focus on three areas to improve the experience for travelers in the coming year, Womack said. “First, we want to make it easier to find the pickup point through better wayfinding and signage. Once at the pickup point we want to make finding your driver fast and efficient. And most importantly, we want to reduce customer waiting times throughout the process and make it a stress-free experience.”

There are benefits to airports as well, such as improved efficiency and a reduction in environmental footprint.

Recently, Uber partnered with several ACI-NA members to define standards for a TNC wayfinding icon and nomenclature at airports. The result of extensive survey data, the consortium distilled a clear, uncluttered icon showing a car and a map pin situated on smartphone screen, and identified “Ride App Pickup” as descriptive, simple, and neutral nomenclature. “We are actively working with airports now to implement this new standard,” Womack said.

Uber tools could help with airport traffic congestion, as well. The company has developed multiple programs that could speed passengers’ trips in and out of the airport. UberPOOL pairs travelers with others while Uber’s Rematch allows drivers who drop off a departing passenger to immediately find a passenger who just landed.

Driver satisfaction and ease is equally important to Uber, which has been working with airports to improve staging areas for its drivers, Womack said. “We want to make sure staging lots have appropriate facilities for drivers to rest, use the washroom, and even get a snack. Partnering with airports to provide these essentials is key.”

PARTNERSHIP POTENTIAL

Uber’s relationship with airports has had some bumps along the way, especially early in its disruptive launch. But the new Uber brings with it a “change in tone and culture” Womack said. Increasing partnership opportunities with airports is a goal. The company has organized a team focused solely on building those partnerships and creating new products to create that experience. It means more frequent conversations about how Uber can help “reduce congestion, participate in landside redevelopment projects to improve efficiency, and plan for the way our customers will want to travel in the future. We know airports plan in five- to 30-year cycles, and we’re eager to join the discussion on the evolution.”

Those are not just words. Already, Uber has named Toronto Pearson International Airport as its first Innovation Hub.

“Uber’s commitment is to configure the airport with the best and most appropriate technology available, utilizing YYZ – an airport where we recently launched peer-to-peer ridesharing – as a pilot for new products we’re building that decrease congestion, drive down wait times, and increase throughput,” Womack said.

Consider Uber just another form of transportation, a relationship not unlike that of the airline to the airport. “Think about how an airline operates with respect to branding, dedicated parts of the terminal to serve its customers, and its preferential or exclusive use gates,” Womack said. “In many cases what we seek isn’t all that different. Our ideal operating environment would include some level of (a) dedicated pickup zones, (b) elevated passenger experiences, (c) amenities for drivers, (d) active traffic management for pickup zones, and (e) reasonable pick up/drop off fees that reflect the cost of our operation to the airport and the value provided to customers.”

It is a two-way street, too. “We are thinking deeply about tomorrow’s travel experience and partnering with select airports throughout the world where we will invest significantly in operational excellence, best-in-class product technology, and an elevated passenger experience where you may find Uber lounges or other amenities to improve or at least de-stress the travel day.”

Uber’s new e-bike Jump showcases how much the company is expanding into all facets of transportation. “For riders, imagine a one-stop shop where you can figure out the best, most affordable transit option for you – whether that’s a car, public transportation, a bike, or some combination.”

SOLVING BIGGER CHALLENGES

Together, Uber and airports can solve bigger issues that extend well beyond the passenger pick-up and drop-off. Uber recently launched a pilot EV Champions Initiative program in seven cities – Austin, Los Angeles, Montreal, Sacramento, San Diego, San Francisco, and Seattle – to help drivers understand more about electronic vehicles. It includes new in-app features built specifically for EV drivers. “We hope to work with airports to help us scale our efforts in the EV space, particularly as it relates to fast-charging infrastructure,” Womack said.

Ultimately, Womack believes that some of the greatest challenges facing airports are shared by Uber. “We recognize how the major shifts in transportation are having an impact on airports and cities across the globe. We share the goal of creating a great customer experience while working through the challenges of congestion and operational efficiency, all while balancing cost. These are similar challenges Uber faces. We’re committed to working together to deliver products and services optimized for today’s infrastructure while partnering together for a future with transportation options optimized for the future airport.”

Crowd listening to a speaker at ACI-NA’s 2017 Annual Conference

Cheers to 70 Years: The Best Is Yet to Come

Posted on | by Scott Elmore

By: Kevin M. Burke, President and CEO, ACI-NA

2018 represents a great milestone for Airports Council International-North America as we celebrate our seventieth anniversary as the Voice of Airports in North America. Anniversaries like this provide a great opportunity to reflect on our past, celebrate our present and look ahead to the future.

As you know, air travel – and the world – has transformed immensely over the last seventy years. And our industry’s evolution along with it hasn’t always been easy or certain. That’s one of the chief reasons ACI-NA exists.

Then in a post-war world with a growing economy, air travel was increasingly accessible to the masses. As we entered the golden age of travel, airports faced many of the same challenges we see today, including burdensome government regulation, infrastructure and investment needs, and airline decision making.

Realizing that there was power in the collective, nineteen founding members convened in New York in 1948 to establish a body that would bring airports together in addressing the challenges and issues of an evolving aviation industry.  From there, our journey took off as the Airport Operators Council.

Looking back, this industry has overcome significant hardships and setbacks. From economic ebbs and flows to airline industry deregulation and airline consolidation to the September 11, 2001 attacks, this industry has always had to be nimble and responsive to the challenge of the day.

Your association has had to be nimble too. In the past seventy years, our name has changed from Airport Operators Council to Airport Operators Council International, and now to Airports Council International-North America in an effort to make room for our ever growing U.S. and Canadian membership and global connections.

While the issues of the past may sound familiar today, so much has changed. Today, airports operate more as businesses than they ever have before.  They are becoming cities unto themselves.

The current landscape presents many unique challenges that require solutions. Today’s airports are not your father or grandfather’s airport. We are seeing a change in the way technology affects air transportation across the world.

Meeting the demands of passenger and cargo growth has never been more important. Our airports must have the ability to modernize as they seek to accommodate rapid growth in passenger and cargo traffic. In the United States alone, airports need nearly $100 billion in infrastructure upgrades and maintenance in order to remain competitive with airports across the globe.

Solving today’s challenges are essential in order to lay the foundation for the future. As such, airports around the world are actively working to enhance competition, create efficiencies through technology, and improve the passenger experience.

There used to be more than thirty airlines that no longer exist because of airline consolidation. The future of the airport industry is at stake without an economic climate that fosters airline competition and choice.

Competition has many benefits in our industry, which can be enhanced through more air service routes and more airline choices. In order to ensure communities in North America remain connected to the global marketplace, we are actively working to make certain our industry – airports and airlines – are as competitive as they can be. Our work in this important area will only grow in the years ahead.

Technology will also be a large part of an overall improved and seamless passenger experience. Today, easiness is synonymous with technology. What new technologies can we use to our benefit? Biometrics is speeding up the boarding process for certain flights, and in a just a few years, all flights may be boarded with the scan of a face.

It’s clear that we must focus on enhancing the passenger experience for a successful future. But these challenges are too big for anyone to handle alone. And that’s where your association comes in.

Members always tell me the real value of ACI-NA comes through our ability to advance airport priorities in Washington and Ottawa, provide essential industry intelligence by keeping the pulse of the issues impacting airport operations, and foster industry collaboration by creating a forum to develop and exchange best practices.  The rich history of advocating for policies and services that strengthen airports will continue as we reflect on our accomplishments and look beyond the horizon.

ACI-NA is only as strong as its members and their active engagement. Our team is proud of the members we serve because of the profound and positive impact they have on local communities across North America. Thank you for your leadership.

Today, as we celebrate our seventieth year with a strong membership and transnational – even global with the establishment of ACI World in 1992 – reach, we recognize that there are obstacles still to overcome. We’re not done yet. We’re just getting started.

Here’s to the next seventy years.

Meet the Member: Rep. Jeff Denham

Posted on | by Scott Elmore

ACI-NA President and CEO Kevin M. Burke recently caught up with Rep. Jeff Denham, a member of the House Transportation and Infrastructure Committee, to talk about prospects for an infrastructure bill in Congress.