Category: Medium Hub

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

Posted on | by SElmore@airportscouncil.org

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“The House Democrats’ infrastructure framework recognizes the time has finally come to increase the woefully outdated PFC,” said ACI-NA President and CEO Kevin Burke.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.

Houston Airports Strengthen Veterans Community

Posted on | by Scott Elmore

As community partners, airports are continually embracing opportunities that recognize the immense contributions veterans make to our communities and empower them as they move beyond their military service.

Houston Airport System is one of several airports across North America leading the effort to bring the Edge4Vets jobs training program to prepare and connect veterans to jobs that can lead to careers in aviation.  This work is incredibly important in Texas, which boosts one of the largest veteran populations in the United States. Edge4Vets is part of Airports Council International – North America’s “Workforce of the Future” initiative.

Developed by the Human Resiliency Institute at Fordham University in New York, Edge4Vet is operating at several airports currently, including Houston, LAX, Greenville/Spartanburg, Cincinnati-Northern Kentucky, Edmonton, Memphis, Jackson, MS.

The program combines a workshop series with online training to help veterans do what business leaders say they most – that is, learn how to translate their strengths from the military, including values and skills, into “tools” for civilian success. The program enlists HR executives and hiring managers from partner companies, including airport authority departments and stakeholder companies, to attend the Edge4Vets workshop and serve as “mentors” to offer feedback to the veterans as Edge4Vets teaches the participants how to create a Plan4Success.

The Plan4Success guides them in the creation of statements in four areas – vision, values, skills and action – that identify their strengths and gives them an opportunity in clear, concise language to express how they will APPLY their military strengths to land a job that can lead to a career for the life they want.

Houston introduced Edge4Vets in 2018 as a pilot and now is working with partners in its employer network – that includes Houston businesses as well as airport employers – to grow and expand the scope and reach of the program.

Part of this expansion includes bringing in Goodwill Industries and its Operation GoodJOBS program as a partner to provide wrap-around support to veterans. Edge4Vets registers participants through a recruiting effort with support from the City of Houston, the Texas Veterans Commission and local schools, then Edge4Vets refers those who register to Goodwill for preparation in advance of the workshop.

Following the workshop, Edge4Vets channels participants back to Goodwill for personal support to refine their Plan4Success, hone their resume, and follow up on job interviews they lined up at the Edge4Vets workshop.

The combination of career preparation and this enhanced wrap-around support provided through the Edge4Vets/Goodwill partnership is giving Houston Airport System a powerful “one/two punch” to add talented veterans to the HAS workforce to strengthen the airport for the future.

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

Posted on | by SElmore@airportscouncil.org

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.

Building Up a Collection: Airport Trading Cards

Posted on | by rrudishlaning@airportscouncil.org

By Jeff Lea, St. Louis Lambert International Airport

Whatever combination you arrange, three letters can carry a lot of prestige, economic power, a region’s reputation, and even better, generations of travel memories.

The International Air Transport Association’s Location Identifier – or IATA Airport Code- has grown to become both symbols and brands in the travel world. They are also the standout element in ACI’s North American Airports Collectors Series trading cards program. The debut of airport trading cards will celebrate its fifth anniversary this fall.

Well before that 2014 launch, I floated the airport trading card idea as a member of ACI-NA’s Marketing & Communications Committee. There were blank stares, looks of doubt and few hurrahs for the pitch that was purely on paper- and yet to be on cardstock. There were no slick gloss cards to touch. No series of air traffic control towers or airfields aerials. And no airport codes all aligned on the top left.

The genesis for the creation of the trading cards was born out of the constant request from aviation fans and trinket collectors making requests to STL for any type of memorabilia with the airport’s name or airport code. I received lots requests from as far away as Russia. It would be a costly venture to meet that demand with our traditional mementos. The trading card solved that. Paper. Low Cost. Mass quantity. But still highly collectible. It was my belief that if baseball teams, football teams, and entertainment franchises could offer palm-sized collectibles in mass, so could airports.

The pitch became a better sell when STL , ATL and SAN worked up proposed graphic elements and suggested location maps, GPS coordinates, bullet points of airport facts, airport logos and the like. With a unified design, YOW and PIT joined in the development to create the digital mockup of the first five airport trading cards. That overwhelming support tipped the concept from pilot to campaign with the debut in Atlanta, GA at ACI’s Annual Conference where attendees got their hands on the first 17 airport trading cards in the series. From large and mega-hubs, to small and general aviation airports, the series has since grown to nearly 80 U.S. and Canadian airports and a legion of followers, collectors and aviation buffs.

The trading cards travel tremendously well to market the industry with those highly visible airport codes and beauty shots that range from gleaming terminal atriums, airfields at sunset or terminals perfectly framed in front of snow-capped mountains. AUS made its trading card debut featuring one of its giant guitars from an art installation in its bag claim. In 2018, JAX went old-school with a 1968 terminal and airfield shot to commemorate the airport’s 50th anniversary.  The photography options are endless. The backside of the card is more than just traditional statistics, it allows each airport to share their stories, their history, and their importance to the region’s they serve.

At STL, we share the cards at our information booths. We pass them out at community speaking events. They’re perfect for our airport tour handouts for schools and other groups. And of course, they are increasingly in high demand from our “Av Geek” community or, as one former airline executive described himself, from the “world of airline collecting.”

The program has grown so popular that, as one of its ambassadors along with the ACI team, I get complaints as to why there are no cards from this or that airport. Large and small. And then there’s the biggest request, “How do I get the complete set?”

The best answer we can give- travel, visit our trading card airports and pick up one in person. Is there someone with a complete set? We don’ know. Some first year cards – especially those original 17—have been printed and all handed out. That certainly makes them more valuable and exclusive. And some cards are harder to get than others as the program is flexible and allows for member airports to print quantities based on their own marketing budgets. And print locally. When the cards run out, airports can always print more or release a new edition (the STL or YOW series, for example, within the greater Airport Trading Card series). Many airports are into their second or third sets because there are new stories to tell, new art installations or new terminal improvements that yield a stunning visual that is worthy of a new trading card. And there are new terminals themselves (SLC in 2020 and MCI to follow) that will be ripe for a trading card debut or a new edition.  This September, several more airports will debut trading cards for the 2019 Series at ACI-NA’s Annual Conference in Tampa, FL.

The program’s primary goal has always been to use the cards to amplify how airports, individually and as a collective (and vital) transportation system, impact our communities and the traveling public. Then there’s that other goal, giving collectors- young and old- a memento, which leads to them to want a bigger collection from past years and with each new annual collection that arrives each fall in the evolution of the airport trading card series.

About Jeff
Jeff Lea joined the executive staff at St. Louis Lambert International Airport in August 2007 as the Public Information Manager. Jeff is the airport spokesperson managing the Airport’s media relations and crisis communications. He also manages website and social media programming, customer service programs, special events and the Lambert Art and Culture Program.

Jeff is a former broadcast journalist who spent 14 years in television news as a reporter, anchor, producer and photographer. Before joining Lambert, Jeff was a reporter with the CBS affiliate, KMOV-TV, in St. Louis where he covered developments at Lambert including the new runway project. Prior to his post in St. Louis, Jeff was a reporter and anchor at KTUL-TV, the ABC affiliate in Tulsa, OK. He started his news career as a producer and reporter at KXII- TV in North Texas. Jeff is a graduate of Texas Christian University in Fort Worth, Texas.

GSP Leads Efforts to Hire South Carolina Veterans

Posted on | by Scott Elmore

Independence Day is more than fireworks and cookouts.  It’s a special day we celebrate liberty and those who have helped secure the freedom we cherish today.

Honoring our veterans is a top priority for the airport industry.  That’s why ACI-NA partnered with Edge4Vets in 2014 with the shared goal of connecting America’s – and now Canada’s – veterans with airports across the country to place them in careers that utilize the valuable skills they learned while serving in the military.

Earlier this year, Greenville-Spartanburg International Airport (GSP) collaborated with Edge4Vets and the Upstate Warrior Solution to host a workshop for the region’s veterans.

“We are proud to bring Edge4Vets to South Carolina,” said Dave Edwards, GSP’s president and CEO. “This will be a good opportunity for Upstate employers to identify talent while mentoring veterans transitioning into the workforce or those looking for new opportunities.”

Several companies participated in the workshop, including American Airlines, Delta Air Lines, FedEx, United Airlines, the Transportation Security Administration, U.S. Customs and Border Protection, airport concessionaires and Clemson University.

“Many veterans have valuable skills that are beneficial to employers, but they sometimes have difficulty selling themselves,” said Tom Murphy, Edge4Vets’ founder. “People serving in the military learn to work as a team and they sometimes don’t think in terms of their individual accomplishments and skillsets. Some also become so accustomed to using the language and lingo used in the military that civilian employers might not understand what they are saying. These slight adjustments can make a difference in a veteran landing a job and getting on a desirable career path.”

Get Involved

Is your airport interested in becoming an Edge4Vets partner? Airports across North America are partnering with Edge4Vets and ACI-NA to help connect veterans to aviation careers. Current participants include GSP, LAX, HOU, MIA, JFK, CVG, and more.

Contact Tom Murphy to learn more about hosting a workshop in your community. Edge4Vets is offered by the Human Resiliency Institute at Fordham University. Learn more here.

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

Posted on | by Scott Elmore

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

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.

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” >>