Airport Magazine Dec. 2011/Jan 2012 by Airport Magazine

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Airport A/E Seeks

Sustainability

It’s Still The Economy Safety Act Awards AAAE’s TSC Marks 10 Years

EDITOR’SCORNER

his month Airport Magazine offers readers articles that highlight airport architecture and engineering, with A/E firms weighing in on strategies to achieve sustainability and meet operational efficiency goals. In addition, we bring you information on non-aeronautical revenue development, an economic outlook for 2012 for the airport community, news about Safety Act coverage, employment decision advice, and a review of AAAE’s Transportation Security Clearinghouse after 10 years in business. We also give you a number of columns that focus on specific aspects of airport operations. And, remember, you can access Airport Magazine online as well at www.airportmagazine.net. On a personal note, we say farewell to Airport Magazine Editorial Advisory Board Member Steve Schreiber, who retired at the end of November after nearly 31 years of service with the Port of Portland. Steve reports that he plans to take a little time off, “and then think about other opportunities (either part time or full time). It’s possible that I could pop up somewhere in the industry again… .In the meantime, I will spend more time on some of my outside interests such as cycling, hiking, skiing, travel, family history, reading and spending time with family and friends. There’s so much to explore in life when time is available!” Our advertisers in this issue are: Astronics DME Corp., Burns & McDonnell, CDM, Delta Airport Consultants, Kimley-Horn and Associates Inc., Michael Baker Corp., Ricondo& Associates, Inc. and RS&H. These companies support AAAE through their support of Airport Magazine. Please support them in turn.

Barbara Cook

2012 Airport Magazine Media Kit

EDITOR

BARBARA COOK barbara.cook@aaae.org PUBLISHER

JOAN LOWDEN EXECUTIVE EDITOR

ELLEN P. HORTON E D I T O R - A T- L A R G E

SEAN BRODERICK NEWS EDITOR

HOLLY ACKERMAN ART DIRECTION

UNCONFORMITY, LLC S TA F F P H O T O G R A P H E R S

BILL KRUMPELMAN JAMES MARTIN ADVERTISING AND SALES

aaaemarketingteam@aaae.org EDITORIAL OFFICE

601 Madison Street, Suite 400 Alexandria, VA 22314 (703) 824-0500, Ext. 133 Fax: (703) 820-1395 Internet Address: www.airportmagazine.net Send editorial materials/press releases to: magazine@aaae.org Airport Magazine is published bimonthly by the AAAE Service Corporation Inc., a wholly owned subsidiary of the American Association of Airport Executives, and the Airport Research and Development Foundation. Subscription price for AAAE members is included in the annual dues. U.S. subscription rate to non-members is $50 for one year. International rate for non-members is $100. Single copy price is $12. Copyright 2011 by AAAE. All rights reserved. Statements of fact and opinion are the responsibility of the authors and do not necessarily reflect the views of AAAE or any of its members or officers. POSTMASTER Send address changes to: Airport Magazine 601 Madison Street, Suite 400 Alexandria, VA 22314

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AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Volume 23/Number 6 | December 2011/January 2012 M

Features ECONOMIC OUTLOOK 12 〉〉 Airlines and Airports: 2012 and Beyond

16 〉〉 Airport Directors Offer Economic Forecast For 2012 20 〉〉 Retaliation: “Getting Even” Could Get Everyone in Trouble Making an Employment Decision

24 〉〉 Architecture/Engineering Focus:

‘Green Revolution’ Plants Seed for Airport Evolution Successful Strategies to Achieve Airport Sustainability

30 〉〉 Cincinnati/No. Kentucky International First to Obtain Safety Act Coverage Terrorist Attack Protection

34 〉〉 Case Studies and Innovative Approaches to Airport Land Development Airport Officials Offer Ideas, Solutions

38 〉〉 AAAE’s Transportation Security Clearinghouse Marks 10 Years of Operation

Departments

Coming in Airport Magazine

Upfront 6 News Briefs 8 FBR 40 Retail Briefs 42 MarketScan 43 Billboard 44

FEBRUARY/MARCH

Ad Index

Technology Issue Features will explore the emerging technologies that advance airport operational and management goals.

APRIL/MAY AAAE Annual Conference Issue with Buyers’ Guide

Cover Photo: Nick LeHoux/Gensler EDITORIAL ADVISORY BOARD AIRPORT MEMBERS WILLIAM G. BARKHAUER, A.A.E., Morristown, New Jersey TIMOTHY M. DOLL, A.A.E., Eugene, Oregon MARK E. GALE, A.A.E, Philadelphia, Pennsylvania ERIN O’DONNELL, Chicago, Illinois LYNN KUSY, C.M., Mesa, Arizona TODD MCNAMEE, A.A.E., Camarillo, California TORRANCE A. RICHARDSON, A.A.E., Fort Wayne, Indiana ROBERT OLISLAGERS, A.A.E., Englewood, Colorado LOUIS MILLER, Atlanta, Georgia AL POLLARD, A.A.E., Baltimore, Maryland C O R P O R AT E M E M B E R S BILL HOGAN, RS&H STACY HOLLOWELL, Siemens One, Inc. CHARLES LAMB, C.M., Delta Airport Consultants Inc. RANDY POPE, Burns & McDonnell RAMON RICONDO, Ricondo & Associates Inc. LAURA SAMUELS, Hudson Group

AAAE BOARD OF DIRECTORS CHAIR KELLY L. JOHNSON, Bentonville, Arkansas FIRST VICE CHAIR BRUCE E. CARTER, Moline, Illinois SECOND VICE CHAIR MARK P. BREWER, Manchester, New Hampshire SECRETARY/TREASURER RANDALL D. BERG, Salt Lake City, Utah

PHILLIP E. JOHNSON, Grand Rapids, Michigan MARK D. KRANENBURG, Oklahoma City, Oklahoma WILLIAM F. MARRISON, Knoxville, Tennessee TODD L. MCNAMEE, Camarillo, California CARL D. NEWMAN, Phoenix, Arizona THOMAS M. RAFTER, Egg Harbor Township, New Jersey TORRANCE A. RICHARDSON, Fort Wayne, Indiana WALTER B. STRONG, Norman, Oklahoma ALVIN L. STUART, Salt Lake City, Utah PAUL J. WIEDEFELD, Baltimore, Maryland CHAPTER PRESIDENTS TIMOTHY M. DOLL, Eugene, Oregon

KEVIN A. DILLON, Warwick, Rhode Island THOMAS E. GREER, Monterey, California GARY L. JOHNSON, Stillwater, Oklahoma JAMES A. KOSLOSKY, Grand Rapids, Michigan LYNN F. KUSY, Mesa, Arizona GINA MARIE LINDSEY, Los Angeles, California RONALD MATHIEU, Little Rock, Arkansas ERIN M. O’DONNELL, Chicago, Illinois BRADLEY D. PENROD, Pittsburgh, Pennsylvania ELAINE ROBERTS, Columbus, Ohio RICKY D. SMITH, Cleveland, Ohio SUSAN M. STEVENS, Charleston, South Carolina

FIRST PAST CHAIR JAMES E. BENNETT, Abu Dhabi

JEFFREY A. MULDER, Tulsa, Oklahoma MICHAEL J. LANDGUTH, Chattanooga, Tennessee

MARK VANLOH, Kansas City, Missouri

SECOND PAST CHAIR JIM P. ELWOOD, Aspen, Colorado

REBECCA L. HUPP, Bangor, Maine

PRESIDENT

BRIAN D. RYKS, Duluth, Minnesota

CHARLES M. BARCLAY, Alexandria, Virginia

BOARD MEMBERS DANETTE M. BEWLEY, Reno, Nevada SCOTT A. BROCKMAN, Memphis, Tennessee MARY CASE, Houston, Texas ANN B. CROOK, Horseheads, New York ROD A. DINGER, Redding, California TIMOTHY M. DOLL, Eugene, Oregon MARK E. GALE, Philadelphia, Pennsylvania STACY L. HOLLOWELL, Carrollton, Texas CLAUDIA B. HOLLIWAY, Valdosta, Georgia KIM W. HOPPER, Portsmouth, New Hampshire

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

SCOTT C. MALTA, Atwater, California POLICY REVIEW COMMITTEE BONNIE A. ALLIN, Tucson, Arizona ROSEMARIE ANDOLINO, Chicago, Illinois WILLIAM G. BARKHAUER, Morristown, New Jersey KRYS T. BART, Reno, Nevada THELLA F. BOWENS, San Diego, California LARRY D. COX, Memphis, Tennessee ALFONSO DENSON, Birmingham, Alabama

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UPFRONT

TSA To Expand Screening Pilot Program TSA’s PreCheck expedited screening pilot program will be expanded to Los Angeles International, Las Vegas McCarran International and Minneapolis-St. Paul International by the second quarter of 2012, the agency announced. Eligible participants are certain frequent flyers of Delta and American at Las Vegas, American at Los Angeles, and Delta at Minneapolis-St. Paul, as well as members of Customs and Border Protection’s (CBP) Trusted Traveler programs — Global Entry, SENTRI and NEXUS — who are U.S. citizens and are flying on participating airlines. Currently, TSA is piloting the PreCheck initiative at HartsfieldJackson Atlanta International and Detroit Metro with Delta, and DallasFort Worth and Miami International with American. According to TSA, PreCheck will help the agency to assess measures

designed to enhance security by placing more focus on pre-screening individuals who volunteer information about themselves prior to flying in order to potentially expedite the travel experience. At participating airports, eligible passengers may be referred to a lane where they will experience expedited screening. TSA said it always will incorporate random and unpredictable security measures throughout the airports and no individual will be guaranteed expedited screening.

Eight Airports To Gain AIT Units With New Software TSA released the names of eight more airports that will receive millimeter wave Advanced Imaging Technology (AIT) units. The machines will be deployed with new automated target recognition software that eliminates passengerspecific images. Airports to receive the units are: John Wayne (Calif.), Sacramento

International, Myrtle Beach (S.C.) International, Portland (Ore.) International, Fairbanks (Alaska) International, Ted Stevens Anchorage (Alaska) International, A.B. Won Pat (Guam) International, and Bob Hope Airport (Calif.). Currently, more than 500 AIT units are in use at nearly 100 airports nationwide.

Nashville Opens Rental Car Facility Nashville International on Nov. 1 opened a 1.2-million-square-foot consolidated rental car facility, the culmination of one of the largest construction projects in the airport’s history. The new facility, which is larger than the airport terminal, is located across from the terminal in what was formerly part of the Long Term A parking lot. The creation of this three-level building frees up an additional 600 spaces in the shortterm garage, increasing its capacity by 30 percent. The facility also increases the airport’s rental car capacity by about 1,400 cars, for a total of 2,400 vehicles. Other facility features include: 10 car wash bays; 21,000 square feet of covered walkways to allow customers to walk from the terminal to the facility; 900 linear feet of moving walkways; and environmentally sustainable elements, such as energy-efficient lighting, the use of reclaimed water for washing the rental cars and a quick-turnaround facility that is now onsite, saving 800,000 miles of driving per year.

FAA Seeks To Increase Wildlife Strike Reporting

Nashville’s new rental car facility is larger than the terminal. 6

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

FAA has launched a wildlife poster outreach campaign for the general aviation community to increase wildlife strike reporting in this segment of aviation. A recent study shows that

UPFRONT

hazards on their airports. The agency said it may support GA airports by making AIP grants available to conduct an assessment. More information is available at http://www.faa.gov/ news/fact_sheets/news_story. cfm?newsId=13209.

New Orleans Celebrates Opening Of Expansion

FAA’s new initiative aimed at GA airports.

the GA population accounts for only 6 percent of the total strikes reported, which is more than 100,000 reports in all, FAA noted. Through increased and concentrated educational outreach, the agency said it hopes to close the reporting gap between the more than 2,000 GA airports and the certificated airports. This year’s poster, “Report Wildlife Strikes,” depicts a caution sign with a bird inside and the simple message to report wildlife strikes. Copies of the poster have been delivered to the GA community and are designed to be placed in highly used areas such as training rooms and break rooms. In addition to the poster outreach, FAA is encouraging GA airports to conduct a wildlife hazard assessment to help airport sponsors understand and determine the wildlife

Armstrong New Orleans Inter– national in late October celebrated the opening of the $27 million Concourse D expansion. Designed by Sizeler Thompson Brown Architects of New Orleans and built by The McDonnell Group, LLC of Metairie, the expansion adds six airline gates in an open rotunda style format, doubling the capacity of the concourse. The project includes space for food and beverage outlets, retail outlets and additional restrooms. “This project is one of the first visible steps in the completion of our $300 million capital program to update the look and feel of this facility to be more welcoming to our citizens and visitors,” stated airport

Director Iftikhar Ahmad.

San Francisco’s T2 Certified LEED Gold San Francisco International officials announced that the airport’s Terminal 2 (T2) has been certified Leadership in Energy and Environmental Design (LEED) Gold by the U.S. Green Business Council, making it the country’s first airport terminal to achieve that goal. The 640,000-square-foot terminal reopened to the public in April 2011 after a two-year, $383 million renovation utilizing a design-build partnership between Turner Construction and Gensler. T2 is home to American and Virgin America. Among the sustainable elements of T2 are: • Dining and Shopping Marketplace — Inspired by San Francisco’s historic Ferry Building, T2 offers a food marketplace and “retail street” featuring the best of the Bay Area’s retailers and restaurants focusing on locally sourced, natural and organic offerings.

New Orleans expansion adds six gates. AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

UPFRONT News Briefs James Koslosky, A.A.E., executive director of Gerald R. Ford International (Mich.), announced his retirement, effective Jan. 1, 2012. Koslosky served as AAAE chair in 2001-2002 and currently is a member of the association’s Policy Review Committee. He has served for 21 years at Gerald R. Ford International and has had a 43-year career in the airport industry. During his tenure at Gerald R. Ford International, he has managed several multi-million dollar capital improvement projects, including renovations to the entire terminal area and the addition of a four-story, 4,700space parking ramp. ... The Port of Oakland has named Marily Mora, A.A.E., assistant director of aviation for Oakland International. In her new post, Mora is responsible for the day-to-day operations of the airport with direct responsibility for the airside, landside, security, administration and facilities departments. Mora previously served as executive vice president and COO of the Reno-Tahoe Airport Authority for the past 12 years. ... Steve Schreiber, director of aviation for the Port of Portland, retired Nov. 30 after 31 years with the port. During his career, he also served as the port’s aviation business manager, aviation finance manager, and senior manager of aviation finance. Schreiber was a member of AAAE’s Policy Review Committee and Airport Magazine’s Editorial Advisory Board. ... Robert Sumwalt was sworn in recently for his second five-year term as a member of the National Transportation Safety Board. His term of office will run until Dec. 31, 2016. Sumwalt was first designated in 2006 as an NTSB board member and served as vice chairman of the board for a two-year term. ... Trudy Carson has joined the Metropolitan Nashville Airport Authority (MNAA) as air service development manager. Carson previously served as director of air service development for Tampa International Airport. ... TSA announced that Carter Morris, AAAE’s senior vice president-transportation security policy, has been named to the agency’s Aviation Security Advisory Committee (ASAC). The committee is TSA’s sole federal advisory panel that gives the agency recommendations for improving aviation security methods, equipment and procedures. ... Aviation consulting firm Campbell-Hill Aviation Group said it has broadened its range of airline planning and air service development expertise with the addition of aviation executive Kevin Healy to its senior leadership team. Healy, who was senior vice president of marketing and planning at AirTran, has joined CampbellHill as its senior vice president. ... Port San Antonio has named Rick Crider, A.A.E., as its new airport general manager at Kelly Field. Crider most recently served as vice president of airport development and management services at RW Armstrong in Austin, Texas. Among his previous positions, he served as director of Rickenbacker International Airport in Columbus, Ohio, and chief executive officer/director of aviation of the Gainesville-Alachua County (Fla.) Regional Airport Authority. 8

San Francisco’s T2 achieves LEED Gold status.

•

Hydration Stations — Special tap-water hydration stations permit filling re-usable water bottles post-security. Eco-Friendly Places for Kids — Two children’s play areas that highlight the Bay Area’s natural ecosystem were crafted by local artists Walter Kitundu and Charles Sowers. Natural Light — Skylights and clerestories bring daylight into

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

•

the ticketing lobby and retail areas, providing a healthier working environment while significantly reducing electricity requirements during daylight hours. Cleaner Air — A displacement ventilation system uses filtered air to improve indoor air quality, while using 20 percent less energy. Car-Free Connection — T2

BWI has unveiled a terminal redevelopment program.

UPFRONT

BIRMINGHAM AIRPORT OFFERS VIEW OF THE PAST, FUTURE Birmingham-Shuttlesworth International has installed a 3-D display in the terminal observation area pre-security for passengers and greeters to enjoy. The display models the inside of an airplane cabin and allows passengers to sit in the airplane seats and view renderings of the terminal modernization through the windows. “We are extremely excited about the new terminal building and want to share with passengers what they can look forward to when the project is complete,” said Al Denson, A.A.E., president and CEO of the Birmingham Airport Authority. The airport also has installed a timeline wall mural commemorating the history and evolution of the facility. The timeline begins in the 1920s, before the airport was built, and planes were traveling to and from Robert’s Field. The timeline ends with renderings of the future terminal.

connects to the Bay Area Rapid Transit system via the airport’s AirTrain people mover system, so that employees and travelers alike can travel from the airport to the city on mass transit. • Zero Waste — Waste stations replace traditional garbage cans with easy-to-use compartments for composting, recyclables and trash. • Water Conservation — A dual plumbing system allows for reclaimed water from the airport’s water treatment facility to be used for toilets and other uses throughout the airport. T2’s plumbing fixtures use 40 percent less water than typical fixtures. • Paperless Ticketing — A paper-

•

less ticketing system throughout the terminal increases efficiency and saves trees. Energy Efficiency — Energy efficient lighting and machinery is designed to reduce energy use. Sustainable Building Materials — Sustainable building materials include terrazzo flooring with recycled glass chips, recycled-content carpet and innovative use of structural steel.

BWI Unveils Terminal Enhancement Program Baltimore-Washington International has unveiled a $100 million terminal expansion and enhancement program

that will be completed in the summer of 2013. The terminal upgrade began following the Nov. 16 move of AirTran from Concourse D to the Terminal A/B facility, home of Southwest. The upgrade initiative is designed to address near-term needs and accommodate long-term growth, according to airport officials. The program includes a number of components, including a new, expanded security checkpoint; a secure connector between concourses B and C with moving sidewalks and other passenger amenities; and an expanded and improved Concourse C facility with upgraded airline gate hold rooms and new food and retail space. “We are working to ensure that BWI Marshall remains the ‘Easy Come, Easy Go’ airport,” stated Executive Director Paul Wiedefeld, A.A.E. “We want to provide a high level of service for our customers while ensuring the opportunity for continued growth.”

FAA Fact Sheet Updates Airspace Redesign FAA has published a new fact sheet to update the status of the New York-New Jersey-Philadelphia Metropolitan Area Airspace Redesign Implementation. The document may be viewed at http://www.faa. gov/news/fact_sheets/news_story. cfm?newsId=13176.

New ATC Tower Dedicated at Memphis FAA in October dedicated the new $72.6 million air traffic control tower and radar approach control at Memphis International. The 336-foot-tall Memphis tower is equipped with state-of-theart NextGen technology, and the 850-square-foot tower cab has enough room to accommodate additional

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

UPFRONT

future air traffic control positions, FAA said. The 24,000-square-foot base building houses training rooms, administrative offices, and an expanded terminal radar approach control with space for future growth. The new facility has the latest seismic, security and air traffic simulation capabilities.

AMR Bankruptcy Poses ‘Minor’ Risk To Bonds AMR’s filing for Chapter 11 bankruptcy reorganization poses only minor immediate risks to most general airport revenue bonds, according to Fitch Ratings. However, credit concerns do exist for individual airports, particularly facilities where American Airlines operates major connecting hubs, the firm said. These are Dallas/Fort Worth International, Miami International and Chicago O’Hare International. Credit concerns may increase during the course of American’s bankruptcy proceedings should the reorganization process lead to operating decisions that reduce or reallocate the carrier’s schedule, Fitch said. The ratings firm said that American is expected to operate its full schedule and will need to fulfill obligations of its use and lease agreements at the various airports where it operates, although there may be some small amounts of pre-petition rents owed. According to Fitch, “This would expose airports with inadequate liquid reserves.” As bankruptcy courts generally allow an airline to continue making payments to the airports it serves, Fitch said it expects airports will continue to receive payments from American on a timely basis for the near term. However, an airline bankruptcy filing may allow for rejection of use and lease agreements at individual airports or result in changes through negotiations.

ALASKA AIRLINES INAUGURATES BIOFUEL-POWERED FLIGHTS Alaska Airlines inaugurated biofuel-powered passenger service in early November with two flights from Seattle to Washington, D.C., and Portland, Ore. Alaska and its sister carrier, Horizon Air, were scheduled to operate 75 select flights between Seattle and the two cities using a 20 percent blend of sustainable biofuel made from used cooking oil. Alaska Air Group predicted that the 20 percent certified biofuel blend it is using for the 75 flights will reduce greenhouse gas emissions by an estimated 10 percent, or the equivalent of taking 26 cars off the road for a year. If the company powered all of its flights with a 20 percent biofuel blend for one year, the annual emissions savings would represent the equivalent of taking nearly 64,000 cars off the road or providing electricity to 28,000 homes.

JetBlue Buys Slots At LaGuardia, Reagan JetBlue announced that it has completed an agreement to purchase two bundles of eight slot pairs, one at New York’s LaGuardia and the second at Reagan Washington National, recently made available in an FAA auction. The slot purchase will allow JetBlue to double its service at both airports in 2012, the carrier said. Scott Laurence, JetBlue’s vice presi-

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

dent of network planning and partnerships, stated, “We’re very excited to continue to invest in New York, as well as Washington Reagan National, a market that’s quickly proven to be a strong one for JetBlue after just one year of service. We look forward to bringing more low fares and welcoming more customers to these two popular airports.” The carrier said it will announce destinations and schedules for its new service in the coming months.

UPFRONT

DOT Holds Flight Diversion Forum DOT officials and airport and airline operators Nov. 30 discussed a series of steps to improve critical information-sharing during severe weather to help guide better decision-making about flight diversions. A fast-moving, late October snow storm in the Northeast that led dozens of domestic and international flights headed for New York to divert to other airports prompted the unprecedented meeting. AAAE staff and several AAAE airport members, including members of the AAAE Operations Safety and Planning Committee and the Large Hub Winter Operations Conference Committee, participated in the forum.

During several hours of discussions at DOT headquarters, participants debated five proposed FAA recommendations and suggested a number of ideas to help aviation stakeholders better understand the full context of flight diversion decisions. Separate discussion groups reviewed airport operations, airline operations and the customer experience, and then reconvened to share their observations. The original recommendations included developing an airport information Web page, increasing participation of smaller airports in strategic planning teleconferences, creating special data tags for diverted flights on air traffic controller screens, better coordination of FAA equipment outages, and improving

airport contingency plans. The participants indicated that all of the recommendations, except the data tag suggestion, could help airlines, airports and air traffic controllers work collaboratively during diversion situations to accommodate flights as smoothly and efficiently as possible. Some participants suggested that regional hotlines like one currently used to manage significant weather events affecting the Texas area could be expanded to other regions for airports, airlines and controllers to more effectively manage diverted flights. FAA said it would consider and refine the recommendations and then work with airline and airport operators to put them into effect as quickly as possible.

FEDEX EXPRESS SORT CENTER HAS LARGEST VEGETATED ROOF FedEx Express recently opened a new package sorting center at Chicago O’Hare that has the largest continuous vegetated roof at an airport in the U.S., the company said. At just under 175,000 square feet, the roof is easily visible from aircraft as they land at O’Hare. The recently opened building is also the largest green roof on a freestanding building in the greater Chicago area. FedEx noted that vegetated roofs benefit the environment by reducing air pollution; curbing stormwater runoff; extending the average life of a roof from 15-20 years to 40-50 years; lowering energy costs by 35 percent a year; and reducing airport noise. “The creation of the green roof space is a key component of going green across the city of Chicago, and at O’Hare and Midway International airports,” said Rosemarie Andolino, commissioner of the Chicago Department of Aviation. The FedEx Express facility is the latest in a number of initiatives to make O’Hare greener, such as building LEED certified airport facilities, recycling construction materials on the airfield, utilizing clean emission vehicles and construction equipment, installing energy efficient lighting, and even providing a habitat for honeybees with the nation’s first on-airport apiary, Andolino added.

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Airlines and Airports: 2012 AND BEYOND BY WILLIAM SWELBAR

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

he links between the economy and the airline industry are well documented. It used to be that when the U.S. sneezed, Europe caught a cold. The interdependencies between the two economies are clear. The question today is which side of the Atlantic is most prone to a bad economic cold? In order to gauge the direction of the U.S. economy, it seems we spend more time determining the health of Greece or Italy or Spain. Similarly, today’s economic indicators and the relative performance of the airline industry are a bit perplexing. Real GDP remains below 2007 levels. Household incomes are at 1996 levels. Consumer confidence is an oxymoron, recently hitting the lowest non-recession reading in its history. While manufacturing activity showed strength in the early half of 2011, it is now close to levels suggesting contraction of the sector might be around the corner. Despite the negative signals surrounding the economic indicators, we tend to rely upon for direction of U.S. airline revenues, the industry is performing admirably. Maybe even incredibly, given the economic headwinds it faces. At the heart of the industry’s performance are the positive results being realized from consolidation and a religious adherence to capacity discipline. The industry is performing very well, yet the consumer has little to no confidence in the direction of the economy. An example of the industry’s improved financial performance can be found by comparing financial results in 2008 and expected results in 2011. The U.S. airline industry yearns for its earnings to be relatively stable like those of corporate America; steady with minor ebbs and flows based on economic cycles (see graph, page 14). Instead, the airline industry follows a boom and bust pattern — mostly bust. Look at 2008 and, as oil ran to $147 per

barrel, the industry lost 17 cents on each dollar of revenue. In 2011, the industry is paying more for oil on average than in 2008, yet is expected to earn one penny for each dollar of revenue. This is a remarkable result, particularly given the negative economic underpinnings, the price of crude oil and the price to refine a barrel of crude into jet fuel. Ancillary fees have helped most airlines, but, in my opinion, are still secondary to consolidation and capacity discipline. The simple fact is today’s commercial air service airports desperately need a sustainable and profitable airline industry. Consolidation and capacity discipline are not necessarily music to an airport director’s ears. They imply either losing service or the realization that service retention is a best case scenario. After all, the airline industry is built on a growth model, but growing isn’t currently in its best interests. Let’s be clear; it’s not just smaller markets in the system facing cuts. Airports of all sizes are confronting that reality. As the industry transitions from a market share mindset to a strict profit ideology, air service recruitment takes on added complexities. The air service map as we have come to know it over the past 30 years, and its sustainability, is now being questioned. The cost of jet fuel is the primary catalyst causing the industry to cut capacity and exercise discipline. It’s also why network carriers are re-examining decades-old business practices of serving not only the largest airport markets, but the smallest as well. If not for the network carriers and their sweeping hub systems, most small and non-hub airports already would have been extinguished from the air transportation grid because the low-cost carriers have not invested in their systems to serve them. But the pressures on smaller community air service only begin with the price of jet fuel. Other factors include: 2. There are no aircraft of 50 seats

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

CORPORATE VS. AIRLINE PROFITS Graph 1" Corporate v. Airline Proﬁts" The Performance in 2011 vs. 2008 isSigniﬁcant Significant The Improvement Performance Improvement in 2011 v. 2008 Is ! $140!

Corporate Profits (%) $124.51

-5%! -10%!

Airline Proﬁts (%)!

2007!

2006!

2005!

2004!

2003!

2001!

2000!

1999!

1998!

1997!

1996!

Barrel Equivalent ! Cost of Jet Fuel /1!

1995!

1994!

1993!

1992!

1991!

-25%!

1990!

-20%!

2002!

-15%!

West Texas Intermediate plus the implicit crack spread

or less in the production pipeline [ATR produces a 48-seat turboprop aircraft]; 3. All regional flying contracts will come up for bid between now and 2020 and likely will not be renewed by the mainline carriers; 4. Low-cost carriers are finding profitable niches away from smaller airports; 5. A growing pilot shortage will hurt the regional carriers first as regional pilots will find work on the mainline; 6. Proposed FAA flight time/duty time regulations that put new limits on pilot flying hours will force regional carriers to hire more pilots to do the same amount of flying the sector is doing today; 7. Congress, in a questionable response to the Colgan crash, passed a law requiring 1,500 hours of training time for a commercial pilot; 8. Most manufacturers won’t produce commercial airplanes smaller than 100 seats as most airlines cannot achieve the desired economics at an affordable capital cost; 9. Negotiations between mainline pilots and management over new scope language is as emotional and contentious as it has ever been; and 10. Proposed tax increases are certain to punish the smallest of markets. These are just 10 reasons why the sustainability of today’s air service map is being reconsidered. There are many more, often the result of regional or geographic characteristics. But the fact remains, air service will always find economic vitality. If a community has strong economic and demographic underpinnings and is fortunate to be augmented with international ties, today’s network carriers 14

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

2010!

0%!

$120!

2011E!

5%!

$126.76

will continue to provide service. In the Midwest, airports $100! like Lansing and Toledo are struggling because the $80! markets they serve directly are suffering economically. In addition, there’s an alter$60! native airport for Lansing and Toledo flyers within a $40! reasonable drive. It’s called Detroit. Other examples of $20! slow-growing markets or markets that have lost traffic over the past 20 years are Sarasota/Bradenton, Fla.; Columbia, S.C.; Melbourne, Fla.; and Daytona Beach, Fla. They have one attribute in common with Toledo and Lansing and that is an airport with low-cost carrier service available within a drivable distance. Examples of fast-growing airports over the past two decades include Northwest Arkansas; Manchester, N.H.; St. Petersburg, Fla.; and Aspen, Colo. The attributes with fast-growing airports are clear: a strong business base; the presence of a low-cost carrier; a secondary airport within a larger metro area; and a strong year around leisure destination. These locations, though, still have challenges. What if the mix of carriers changes at an airport where service was once dominated by a low-cost carrier and that carrier reduces emphasis on the market? Can an airport truly serve the needs and wants of its immediate community with an Allegiant-only type service? The impending economic recovery likely will be uneven. As a result, air service losses probably will be uneven as well. I expect more air service loss in the Northeast and Midwest areas, where economies are weaker and alternative airports are more readily available, than in the Mountain and Western regions of the United States. Finally, when it comes to domestic service, the merged combination of Southwest and AirTran will greatly influence which markets grow at faster rates. The airport markets that survive the combination will have a larger network over which to travel and, as a result, those airports should fare better. A 2009!

10%!

2008!

15%!

William Swelbar is a research engineer with MIT International Center of Transportation. In addition, he serves as a director of Hawaiian Airlines Holdings, Inc. and authors the widely read airline industry blog www.swelblog.com.

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EDITORIAL BOARD

Economic Outlook Airport Directors Offer a Forecast for 2012

Several members of Airport Magazine’s Editorial Advisory Board offer their personal perspectives on the economic outlook for 2012. WILLIAM BARKHAUER, A.A.E., EXECUTIVE DIRECTOR, MORRISTOWN (N.J.) MUNICIPAL AIRPORT At MMU, we are somewhat less optimistic than we were a year ago at this time. High-end business aviation traffic, which is the lifeblood of our airport, continues to be depressed significantly over pre-recession levels. Many of our based corporate aircraft operators are flying less, or have, in some cases, reduced the size and/or number of aircraft in their fleets. Our transient operations are also down significantly. During the current downturn, our fuel sales and landing fee revenues bottomed-out in 2010. 2011 has brought some improvement in these important revenue streams, but not at the rate we had been hoping for. We also have seen a decline in the market value for hangars and airport real estate in general, and believe that any recovery in this area is likely to be very gradual and prolonged. Most past recessions have been temporary conditions, followed by a relatively robust recovery. In our business, and in the country at large, that is simply not happening this time, which suggests to me that new and different economic forces are at work. I am concerned that this particular downturn has resulted in some permanent systemic changes to the economic fundamentals of our segment of the airport industry. If where we are now is the “new normal,” it will be a very significant challenge for all of us in the years ahead. Finally, I am concerned about the constant bashing of “corporate jets”

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

and “corporate jet operators” that emanates from some of our elected leaders in Washington. It is very disheartening to see an industry that employs hundreds of thousands of people and contributes billions of dollars in positive economic impact to our country and economy turned into a political whipping boy.

tion and two more private projects in design, totaling more than 200,000 square feet. We expect traffic to continue to increase next year, but at a slower rate. Even if Allegiant adds no new destinations, traffic should increase by 11 percent as Allegiant removes the galleys and adds 16 more seats to each aircraft.

TIM DOLL, A.A.E., DIRECTOR, EUGENE (ORE.) AIRPORT

TODD MCNAMEE, A.A.E., DIRECTOR OF AIRPORTS, VENTURA COUNTY (CALIF.)

Eugene Airport is on track to have the best passenger year in the history of the airport. After 25 months of positive growth, our enplanements dipped in September compared with September 2010. As with passengers, Eugene Airport had experienced 23 months of positive growth in parking revenues. The airport is moving forward with an aggressive five-year CIP. However, we constantly monitor the local and national economy and are prepared to scale back as deemed necessary. Eugene Airport has implemented cuts in our operating budget since 2008 and has maintained existing airline rates for three years. This year we removed the budget cuts but are prepared to re-implement them if the economy starts to drop. The airport staff is cautiously optimistic that 2012 will be a good year for both passenger traffic and revenue. Our challenge is getting our airlines to add the capacity that the community needs.

The County of Ventura oversees both Oxnard and Camarillo airports. At Camarillo, operations have remained steady at approximately 150,000 annually. This is consistent with historical trends for the airport but down from our peak of 203,000 operations in 2002. Operational revenues are down due to vacancies in our business park and vacant land parcels. We also had to terminate a lease for a classic car storage facility development in the business park due to the developer being unable to obtain the necessary construction loan. We do continue to have strong demand for storage hangars and are considering constructing additional hangar inventory. At Oxnard airport, operations are down 30 percent and hovering around 60,000. We lost air service in June 2010 and have been working diligently to restore it. We recently completed a project that relocated a displaced threshold, resulting in 5,500 feet of landing distance from the previous 4,576 feet. We are hopeful this will help in our efforts to restore air service. The business park at Camarillo airport is the major contributor for operational revenues to both airports. We’ve historically offered lower rents than downtown and have enjoyed a very high occupancy rate. The weak economy has resulted in a high vacancy rate in downtown Camarillo, and property owners are offering extraordinarily low rents to have the facilities occupied. This is applying a great deal of pressure on our properties to compete in the weak commercial real estate market. For cost-saving measures to match our reduced revenues, we have not filled 10 percent of open positions and have eliminated others. We have focused facility maintenance to more critical items, and we balanced our non-AIP capital projects to keep spending in check. I’m an optimistic person, but I don’t see any real economic recovery occurring until we see sustained growth in the jobs market.

LYNN KUSY, C.M., EXECUTIVE DIRECTOR, PHOENIX-MESA GATEWAY AIRPORT We expect enplanements to approach 500,000 this year, up about 30 percent over 2010. Allegiant now serves 31 cities nonstop, including Las Vegas. Parking and rental car revenues are increasing with enplanements, but food and beverage and gifts are lagging behind that rate of growth. We are increasing signage to try to bring customers to the Copper Plate restaurant, Paradise Bakery and the gift shops. Terminal construction continues. We broke ground on another 30,000-square-foot addition in September. When completed in October 2012, this will give us 90,000 square feet, eight gates, and a second baggage belt. We expect to add another 8,000 square feet and two more gates, taking us to 10 gates, in 2013. That project is already funded. Our new parking lot is completed and opened Nov. 1 with 2,700 parking spaces. We expect to add more spaces to that lot in 2013. We also have a private 20,000-square-foot hangar under construc-

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

ROBERT OLISLAGERS, A.A.E., EXECUTIVE DIRECTOR, CENTENNIAL AIRPORT (COLO.)

We remain very conservative in our estimate of revenues for 2012. Although we experienced a very modest recovery in 2010 from the effects of the 2008-2009 recession, 2011 was flat from the outset, perhaps signaling yet another recession or something close to it. As a business airport with an international component, the global economic crisis is also likely to impact operations and, thus, revenues. For this reason, we are estimating a moderate decline in revenues from fuel sales. However, due to automatic escalators in lease fees, projections call for a modest increase in overall revenues, but it remains to be seen if these escalators will cause inflationary pressure in other areas. On the expense side, personnel costs continue to be a huge challenge. As to the broader outlook, although there appears to be plenty of capital on the sidelines, another challenge is the political partisanship and the inaction and uncertainty this is causing, which in turn is preventing non-grant [re]investment in the airport, and I presume others. Although there is interest in developing, no one wants to commit.

AL POLLARD, A.A.E., DIRECTOR, MARTIN STATE AIRPORT (MD.) Martin State Airport in Baltimore is cautiously optimistic about the year ahead, given the national and regional economic challenges facing our industry. We are tied to the economic pulse of the greater Baltimore area, and while certain segments are doing well financially, we remain optimistic that the trends that we are seeing in the region will continue. The manufacturing, construction and financial sectors are doing relatively well, and we have seen some increase in corporate aircraft activity as a result. We have made some tough financial decisions in recent years, reducing staffing levels in certain areas and delaying capital projects. We have adapted to the changes in the general aviation industry and learned 18

how to operate in the “newnorm.” We have seen aircraft operations increase by 11.5 percent in the last year, and continue our marketing efforts in various ways to attract domestic and international traffic. Fuel sales have been relatively flat for the most part, with some gains in the 100-LL segments of the market, while Jet-A fuel sales have fluctuated. We continue to make significant investments in maintaining the facility, in terms of pavement projects, fire suppression projects and lighting upgrades. We have no plans for any major construction in the next year. We have several acres available for hangar construction and continue to encourage third party investments in those facilities. We are concerned about the future of the corporate and general aviation industries, given the many challenges that exist today and the ones we see in the future. User fees continue to be an area of grave concern that will have a detrimental impact on corporate and general aviation as we know it today. The future of 100-LL fuel is another area of significant concern, as this type of fuel is likely to be phased out due to Environmental Protection Agency regulations associated with its lead content. We have managed our expenses and positioned ourselves to be profitable while delivering a high level of customer service. We continue to market our many services and amenities, and expect the year to be financially successful with increased aircraft operations.

We are concerned about the future of the corporate and general aviation industries given the many challenges that exist today and the ones we see in the future. User fees continue to be an area of grave concern that will have a detrimental impact on corporate and general aviation....

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

TORY RICHARDSON, A.A.E., EXECUTIVE DIRECTOR OF AIRPORTS, FORT WAYNE-ALLEN COUNTY (IND.) AIRPORT AUTHORITY We are looking forward to finishing 2011 on good terms and continuing that into 2012. We are just finishing our second year in which we have experienced some recovery in our passenger traffic. While not yet back to 2008 levels, we are closing the gap. Our biggest challenge to accomplishing this goal

is the lack of capacity serving our market. Our load factors are at record highs. The average airport load factor is running at 86 percent. Allegiant’s load factor at Fort Wayne is 95 percent. There simply isn’t enough capacity serving our market to get our passenger traffic numbers back to 2008 levels. Our freight activity is still lagging, and that is a concern. Our local economy is improving, and we are seeing strong recovery in jobs. However, we aren’t seeing that trend in our air freight numbers. With a strong manufacturing base, we would certainly feel better if the air freight numbers were trending positive. I expect that we’ll see our air freight numbers stabilizing in 2012 but remaining below our previous levels. Concession sales are holding strong, and we expect to see that continue in 2012. We just completed a remodeling project that included a complete makeover of our food and beverage concessions pre- and post-security. We also completed major changes to our gift shop. Construction plans for next year are moving forward. We are fortunate enough to have the ability to fund our most critical airfield projects and to get them designed now, so that construction can begin in the spring. We are moving forward with these projects and anticipating reimbursement through AIP. In summary, we are looking forward to stability in 2012. We are spending significant energy on maintaining our facilities and doing so while being fiscally responsible. We hope to continue seeing strong demand for air service, so that we can work with our airlines to add capacity at each appropriate opportunity.

STEVE SCHREIBER, DIRECTOR, PORTLAND (ORE.) INTERNATIONAL AIRPORT Travel at Portland International has been on the rise. Passenger growth in 2012 is forecast at 1.5 percent on a capacity growth of 1 percent. An estimated 13.8 million passengers are expected to travel through the airport in 2012. While this level is significantly lower than the peak of 15 million in 2008, it’s nearly 6 percent higher than the 12.9 million passengers in 2010. The growth is attributed to modest improvements in the global economy, as well as new and expanded air service, including Spirit Airlines’ new nonstop service to Las Vegas and Asiana Airlines’ new nonstop cargo service to Inchon, Korea. Longer term projections are for continued slow growth with the peak 2008 passenger levels not returning until 2015 or 2016.

In 2012, Portland International will be wrapping up an unprecedented five-year capital construction program — nearly $800 million, the largest in its history. This capital program included several large projects such as a new baggage screening system, the extension and rehabilitation of its two main runways, and airfield deicing system enhancements. In addition, during this time the airport completed its Airport Futures Master Plan. The master plan concluded Portland International is right sized for the foreseeable future. This means that facility expansion or new development will not be required in the near term. For the next decade, the capital program will focus on facility and pavement asset maintenance and preservation. In 2009, when signs of the recession started showing, early action was taken to ensure the airport remained cost-competitive. Aggressive cost reduction measures were implemented, including eliminating all discretionary materials and services costs, salary reductions, furloughs, and a reduction in force. To that end, continued cost containment measures have been in place as the airport has worked hard to address the challenges of a slow economy. Portland International has been working closely with its stakeholders, customers and business partners, focusing on developing creative solutions to operate more efficiently and effectively, and, where possible, to reduce costs and maximize revenues. Our concessions program, with operators and concepts focused on promoting the local community, anticipates increased sales in the areas of news and gift, as well as casual service restaurants and women’s apparel. The airport recently awarded contracts to new operators of the news and gifts locations and continuously searches for opportunities to showcase local businesses and products. Total sales are projected up 14 percent in 2012 over 2011. The majority of the growth is projected to come from post-security operations. Despite the recent large capital program, the economic recession and decline in passenger levels, the airport has been able to maintain a relatively flat cost structure over the past five years. Further, airline costs are forecast to remain relatively flat into the future. Achievement of a flat airline cost structure, in the midst of a large capital program, has been a result of creative solutions to operate more efficiently and effectively, continued cost containment measures, and development of programs to maximize revenues, as well as development of capital funding solutions that maximize grant resources, leverage PFCs and refund higher interest rate bonds. A AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Retaliation: 'Getting Even' Could Get Everyone in Trouble By Joseph E. Kalet

The first part of this article, published in the October/November 2011 issue of Airport Magazine, addressed the question, “What constitutes retaliation?” The legal answer is: any “materially adverse action.” However, the practical answer is also the lawyer’s standard answer: “It depends” on the circumstances. Just as it is human nature for a supervisor to want to “get even” with a subordinate who files a charge against the employer or supervisor, it is human nature for a jury to have a visceral reaction to evidence that a supervisor abused his position and mistreated a subordinate. Numerous cases on retaliation bear out this fact, and juries will render harsh verdicts in response to what they perceive as supervisory abuse. In addition, the liability for retaliation could extend to the supervisor. RECENT CASES Crawford v. Metro. Govt. of Nashville, 555 U.S. 271, 129 S.Ct. 846 (2009): The employer initiated an internal investigation into allegations of sexual harassment by the HR director; during an interview, the HR employee provided additional evidence of the HR director’s sexual harassment of her. The employer terminated the employee following the conclusion of the investigation, and the employee sued, claiming that the termination was in

retaliation for her providing testimony during the investigation. The employer argued that the employee did not engage in protected activity, since the employee did not initiate the investigation or otherwise file a charge. The court ruled that it is immaterial whether the employer or employee initiates the matter, so long as the nature of the activity is oppositional. In this case, the activity was oppositional and not unreasonable, and, therefore, the employer’s termination constituted retaliation.

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Thompson v. North American Stainless, 131 S.Ct. 863 (2011): The employee filed an Equal Employment Opportunity Commission (EEOC) charge against the employer, and shortly thereafter the employer terminated the employee’s fiancé who also worked for the employer. The fiancé sued, alleging retaliation; the employer countered that the fiancé had not engaged in protected activity and could not claim to be a victim of retaliation. The court ruled that the fiancé was within the “zone of protection” created by the employee’s protected activity, and, therefore, the fiancé’s termination was in retaliation for the employee’s filing of the EEOC charge. Staub v. Proctor Hospital, 131 S.Ct. 1186 (2011):

plaint also can be a verbal complaint.

DISMISSAL AND EFFECT As noted in Part I of this article, a fire fighter who claims to have been the victim of retaliation only needs to show (1) protected activity, (2) adverse action, and (3) a causal connection between the protected activity and the adverse action. Getting a retaliation case to a jury is much easier than getting a discrimination case to a jury. In many cases, the fire fighter who files a discrimination claim also may file a retaliation claim, whether this is the result of actual retaliation, perceived retaliation, or just to enhance the value of his case against the fire department.

Getting a retaliation case to a jury is much easier than getting a discrimination case to a jury. In many cases, the fire fighter who files a discrimination claim also may file a retaliation claim, whether this is the result of actual retaliation, perceived retaliation, or just to enhance the value of his case against the fire department. A hospital employee regularly took personal leave to fulfill his duties as a military reservist. Two supervisors who resented the employee’s use of leave for this purpose convinced the HR director to terminate the employee for fictitious violations of hospital policy. The employee sued the hospital under the Uniformed Services Employment and Re-employment Rights Act, alleging that his termination was in retaliation for his military duty. In response, the hospital argued that the HR director had no retaliatory animus, so there could be no retaliation for military duty. The court ruled that the HR director terminated the employee based on the supervisors’ recommendations, that the supervisors’ actions were motivated by retaliatory animus, and, therefore, the hospital is liable for the supervisors’ actions. Kasten v. Saint Gobain Performance Plastics, 131 S.Ct. 1325 (2011): The employee made verbal complaints about “compensable time” spent on the employer’s behalf, and the employer terminated the employee following the complaints. The employee sued under the Family and Medical Leave Act, alleging that the termination was in retaliation for his complaints about this pay practice. The employer argued that the act requires that a “filing” be a written complaint, but the Supreme Court disagreed, holding that a “filing” of a com22

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Universally, the courts have held that if the underlying discrimination claim is dismissed, the fire fighter can still maintain the retaliation claim. Whether retaliation occurred is independent of whether discrimination occurred.

TIMING, DOCUMENTATION VITAL Courts look to temporal proximity (i.e., the adverse action occurs close in time to the protected activity) as a factor in determining whether retaliation has occurred. Conner v. Schnuck Markets, Inc., 121 F.3d 1390 (10th Cir 1997). The closer in time to the protected activity, the greater the likelihood that it is connected to the protected activity. Close-in-time is not proof of retaliation, but is evidence of retaliation. Anderson v. Coors Brewing Co., 181 F.3d 1171 (10th Cir. 1999). The issue to be resolved is whether the decision to impose adverse action occurred before or after the protected activity took place. The timing of the decision to impose adverse action is crucial to an employer’s defense of a retaliation claim: Fire fighter Smith: I took FMLA leave and returned to work in a timely manner. Department terminated me when I returned to work, and this is retaliation. Q: Is this retaliation?

A: It depends. Fire Department: Smith requested FMLA leave after the department had decided to terminate him, but before the department was able to notify him of his termination. Department allowed him to take leave out of “good intentions,” and terminated him upon his return from FMLA leave. Court: Decision to terminate was made without knowledge of Smith’s intent to take FMLA leave and before Smith engaged in protected activity of requesting FMLA leave. No retaliation involved in this termination. “Adverse Action” has three elements: 1. Decision to take action; 2. Communicating that decision to employee; and 3. Implementing the decision. Once again, the timing of the decision to take action is the most important element in evaluating whether the adverse action was retaliation. A fire fighter who knows the rules can create the situation that will allow him to file a charge of retaliation. Using a basketball analogy, this is called “drawing the foul.” Provocation involves the following elements: • Member files a charge or engages in other protected activity; • Member engages in misconduct or provocative conduct; • Department imposes discipline for the misconduct/provocative behavior. When a member who has filed a charge engages in misconduct, the department has only two choices: tolerate the foolishness or discipline the employee. Since “one bad apple can spoil the whole barrel,” the department has no real choice: impose discipline and prepare for the retaliation charge. As with the timing issue, it is vitally important that the employer take the following steps: • Document the misconduct; • Warn the member to stop the misconduct (and document the warning); • Impose discipline for repeated infractions; and • Ensure that the discipline is appropriate and consistent. Fire officials cannot prevent a member from acting in a provocative manner but can document every step, up to and including the imposition of discipline. This will create the best legal defense available to defeat a claim of retaliation.

that regulate the workplace allow an employee to sue his/her supervisor personally. Of these few laws, FMLA is the most likely avenue for a fire official to be sued by a subordinate because firstand second-level supervisors frequently resolve FMLA issues without consulting with HR. FMLA defines “employer” to include “any person who acts, directly or indirectly, in the interest of an employer to any of the employees of such employer.” 29 U.S.C. Section 2611(4)(A). Thus, the FMLA allows a member to sue a fire official, and the courts have imposed personal liability on supervisors for violating a subordinate’s FMLA rights. However, the “perfect storm” involves a situation in which a fire official retaliates against a fire fighter for exercising his FMLA rights: Member: Chief, my wife is at the hospital taking care of my oldest child. Can I take leave to look after the rest of my kids who are at home? Chief: No, that’s not FMLA. Get a babysitter. And since you’re more interested in getting out of work than doing your job, you just earned yourself some mandatory overtime. The member’s request for leave constitutes an exercise of his rights under the FMLA [see Briones v. Genuine Parts Co., 225 F.Supp.2d 711 (E.D. La. 2002)]. The mandatory overtime assignment is in retaliation for the member’s request. Here, the member could sue the chief personally for retaliation, and would only have to show (1) exercise of FMLA rights, (2) adverse action, and (3) causal connection between the exercise of the FMLA rights and the adverse action. At the end of this drama, it is entirely possible that the chief will need to get out his checkbook and write a check to the member for this retaliation.

FINAL LESSONS First, when it comes to the FMLA, never act alone. Always consult someone, so you have someone to blame if it goes wrong. And second, if you are making decisions based on emotion (e.g., a desire to retaliate or to do something with “good intentions”), go lie down and wait for this feeling to pass. Then, get up and make the correct business decision for the fire department. A Joseph E. Kalet is associate general counsel of the Metropolitan Washington Airports Authority. He may be reached at JosephE.Kalet@MWAA.com. This article was adapted from his presentation to the ARFF Chiefs’ School

PERSONAL LIABILITY

held April 4-7, 2011, in Albuquerque, N.M. Opinions

Only a few of the 185 federal employment laws

expressed in this article are solely those of the author. AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

‘GREEN

REVOLUTION’ PLANTS SEED FOR

AIRPORT EVOLUTION By Cedric Curtis

‘S

ustainability” is that place where noble goals often clash with economic realities. Nowhere is this

more evident than at airports. Few would argue with the motivation to reduce the impact of infrastructure on the environment while simultaneously cutting operating costs, but this also must balance with tight budgets for capital improvements. As is so often the case, the devil is in the details. Environmental and social stewardship have become a crucial part of progressive municipal and federal government policies. Requirements increasingly have formalized “green” aspects of designing, building and operating airports. Along the way, airport operators have begun shifting their attitudes from grudging acceptance of the “green revolution” to actively demanding the efficiencies that can be found there. Some airports are moving boldly, while others take a more incremental approach. There’s no right answer, of course, because it depends so much on the airport, the project, the sustainability goals 24

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

and, yes, the budget. Nevertheless, virtually all airports now expect their A&E consultants to incorporate basic sustainable features into the design of their airport buildings, airfields and landsides and to advise them on how to obtain cost-benefit and life-cycle advantages, as well as funding or tax credits for these improvements. Numerous types of projects can target sustainability goals, with some providing remarkable bang for the buck. Among the most popular are: • Electrical master plans and lighting analyses; • Airfield environmental best practices; • Leadership in Energy and Environmental

Design (LEED) related features for buildings; and • Commissioning. At three airports — Fort Lauderdale, Orlando and Jacksonville — RS&H recently has developed strategies to balance present and future electrical power and lighting requirements in both public and operational areas. Fort Lauderdale International is planning major capital improvements, including new passenger terminals, baggage handling, passenger amenities and airside improvements that quickly will outstrip the capacity of its existing electri-

cal infrastructure. Therefore, RS&H has worked with the airport to create an electrical and communication master plan that included surveys of existing electrical use along with projections of future needs for the buildings, airfield and site. Inherent in this strategy are considerations for automation of controls and more efficient electrical elements such as HVAC systems, lighting, conveyors and more. Big improvements can be found in existing buildings. Energy rate analysis and energy audits can identify strategies that resulted in substantial yearly operating cost savings. At Orlando

GreenvilleSpartanburg terminal includes new sustainable elements.

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

GreenvilleSpartanburg’s LEED Goldcertified GA Terminal

International, for example, replacing existing metal halide fixtures with new induction fluorescent lighting in the baggage handling area will result in dramatic maintenance and operational savings. Analysis shows that, while the new lights have slightly higher initial costs, they are more energy efficient and have roughly five times the lifespan (100,000 hours versus 20,000 hours) of the existing lights. Daylight harvesting lighting systems at Jacksonville International’s new concourses can control and balance the building’s interior artificial lighting by turning them off during daylight hours, thus saving on energy costs. As designs of airfields fall under greater environmental scrutiny, there are a number of best practices that are becoming more standard. These include more material recycling, an emphasis on local sourcing and placement, reduction of emissions by better on-site routing for construction vehicles, and the use of alternate fuel vehicles on airside and landside. The use of energy efficient LED lighting for airfields also is becoming more common. Finally, the design of passenger terminals has continued to undergo the most radical shift in expectations about sustainability. Requirements by local, state and federal agencies are now commonplace for public facilities to attain some level of LEED certification from the U.S. Green Building Council, regardless of whether the project involves new facilities or major renovations. One of these LEED requirements, commission-

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

ing, is another service that airports increasingly are requesting. Project commissioning is the process of ensuring and documenting that all systems and components of a building are designed, installed, inspected, tested, operated and maintained according to the operational requirements and specifications of the owner. The commissioning process can be applied both to new buildings and to renovations or expansions of existing buildings and is applicable to all phases of the project — from design through construction and final building handover. RS&H has provided this service for years to the aerospace and defense industries and now sees it migrating into airports. At any given airport, the proper approach to sustainability might be something routine like HVAC modernization, or it might be something more unusual, such as rainwater harvesting at Greenville-Spartanburg’s LEED Gold-certified general aviation terminal, geothermal heating at the new Duluth (Minn.) International terminal now under construction, and solar voltaic projects at Florida’s Tallahassee and Gainesville airports. Airport sustainability doesn’t come in a onesize-fits-all package. Just as each airport is unique, so are both the challenges and opportunities they present. By taking a broad approach to the question, airports can find answers that work — for them and the environment. A Cedric Curtis is vice president-aviation for RS&H. He may be reached at cedric.curtis@rsandh.com.

SUCCESSFUL STRATEGIES TO ACHIEVE AIRPORT SUSTAINABILITY

By Stephen D. Culberson and Lisa M. Reznar

irports follow varied paths when embarking on a journey toward sustainability. The journey begins with an idea, an opportunity, or perhaps a regulatory, political or financial need. Initially, sustainability concepts may be incorporated into new development projects, such as a new building, to reduce pollutants released to the air or water in compliance with local or state goals or regulations. From this experience, an airport’s interpretation of sustainability may broaden — sustainability is fundamentally about changing the way we make decisions, from the day-to-day routine decisions to the long-term visionary decisions that promote future airport growth. Although journeys toward sustainability vary, themes emerging from successes to date emphasize the value of:

• •

A clear vision of intended sustainability results; Strong staff commitment to the pursuit of sustainability; • Airport leadership championing the effort; • Building on successes to promote momentum; and • The need to monitor and adjust programs to maintain alignment with evolving goals of the airport and its stakeholders. Sustainability programs should be rooted in a clear vision of implementing sustainability across the triple bottom line of environmental, economic and social considerations and guided by goals designed to achieve that vision. A sustainable development program may include goals designed to drive planning, design and construction decisions, such as minimizing environmental impacts and maximizing community benefits while doing AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Sustainability

2010

so in a fiscally responsible mancesses and promotes program management ner. Goals also can be centered momentum. programs expand on financial issues and factor in A challenge to achieving airport actions supportive of social responsustainability is the identification the integration sibility. of feasible and suitable initiatives of sustainability Sustainability management from among a rich and growing programs, in comparison, expand inventory of airport sustainability into all the integration of sustainability practices. A sustainability practice aspects of an into all aspects of an organization that is successful at one airport organization — sustainable decision-making may not work at another, possibly becomes the cultural norm. A a result of geography, scale (small — sustainable thorough understanding of an versus large airport), or simply difdecision-making airport’s organization, the envifering values — metrics that are ronment in which it operates, important to one airport may not becomes the and stakeholder interests form a be to another. Airports are lookcultural norm. foundation for development of ing for industry-defined metrics to sustainability goals, initiatives to evaluate their achievements and achieve those goals, and a plan to decision tools to make the “go susimplement the initiatives and track achievement. tainable” choice clear. Whether to guide sustainable development or For example, information concerning life-cycle management, identification of existing goals that costs and applicability of sustainability practices align with the concept of being sustainable is a under differing circumstances is scarce, although valuable strategy at a program’s outset. Most airresearch is ongoing in this area through efforts by ports have sustainability goals defined under the the Airport Cooperative Research Program, univerguise of smart business decision-making or envisities and airports themselves. While applications ronmental best practices that can be incorporated at individual airports are unique, lessons learned into a sustainability program. and case studies from others in the industry proSustainability efforts need visible leadership vide valuable insight, especially when evaluated in support and implementation by engaged and the context of a particular airport’s program. empowered airport staff. Senior management Airports are making impressive strides toward should emphasize the value of the program and sustainability, but airport sustainability won’t be encourage routine monitoring to track progress achieved overnight — it is a true journey, one each and measure achievements. Staff and other stakeairport must take both individually within the holders bear shared responsibility for program unique context of an airport’s setting and collectively implementation, so a monitoring program based by building upon the successes of others. The opporon appropriately defined metrics permits routine tunity to learn from successful strategies employed evaluation of goal achievement and the ability to by others and to share your successes to broaden the adjust the program, as needed, to improve results. industry’s collective experience is invaluable. Recognizing staff achievements based on measured Trailblazing efforts that emphasize this collabresults reinforces the importance of the program, orative approach include the Sustainable Aviation thereby encouraging continued participation and Guidance Alliance (SAGA), FAA’s Sustainable fostering innovation. Recognition builds on sucMaster Plan Pilot Program, and the AAAE and Chicago Department of Aviation’s Airports Going Green Conference. 2010 DELTA AIRPORT While as an industry we are trying CONSULTANTS, INC. Best Civil Engineering Firm To Work For to find our way toward achieving airport sustainability, one overarch Planning ing successful strategy is evident:  Environmental working together and learning from  Engineering each other is likely to be the one  Construction constant successful strategy in this Administration ever-evolving journey. A  Program Management  Architecture www.deltaairport.com

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Stephen D. Culberson and Lisa M. Reznar are directors at Ricondo & Associates, Inc. They may be reached at s_culberson@ricondo.com and l_reznar@ricondo.com.

Since the introduction of AAAEâ&#x20AC;&#x2122;s Interactive Employee Training (IET) system in 2000, airports have applauded its cost effectiveness and overall benefit to their internal training programs. More than 2 million training sessions have been completed by nearly 550,000 industry employees. Every airport has seen dramatic reductions in training costs and these costs continue to drop with each training session. The training message is consistent, the turnkey system is very user friendly, and the record-keeping is accurate and automatic. Join the 90 airports on the IET team today and realize the benefits of this patented training tool.

CINCINNATI/NO. KENTUCKY INTERNATIONAL

FIRST TO OBTAIN FEDERAL SAFETY ACT COVERAGE 30

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

Security Management Plan Receives Certification, Designation

Fostering Effective Technology (SAFETY) Act protection, which minimizes or eliminates future enterprise-threatening tort liability should a terrorist attack occur at their airports. In July 2011, Cincinnati/Northern Kentucky International became the first U.S. airport to apply for and receive SAFETY Act certification and designation for its self-titled “Airport Security Management Plan (ASMP),” which protects the airport, its passengers, employees and others from terrorist and criminal activities. Through this SAFETY Act award, DHS has opened the door for other airports to seek SAFETY Act coverage to protect themselves against tort liability in the event their security programs are implicated during a terrorist attack. This is significant because airports are not necessarily entitled to complete governmental immunity under state law, and no amount of insurance can protect an airport from the potential liability that could be incurred if an attack occurred on its premises. Cincinnati/Northern Kentucky International, which is run by the Kenton County Airport Board, designed its ASMP to meet and exceed the civil aviation security standards mandated for airports set forth by TSA under 49 CFR Part 1542. The airport’s multi-faceted security plan encompasses the use of physical and electronic security measures; the operations and training of airport police, security and rescue and fire fighting personnel; the operations of the airport emergency operations center; the selection and integration of technical security systems and procedures; and the development and implementation of airport security plans and planning documentation. Essentially all aspects of airport security developed and implemented at the airport have been covered under the SAFETY Act award. “We are pleased that DHS has evaluated our airport security management plan and determined it is appropriate for SAFETY Act coverage,” said Scott Gibbons, A.A.E., vice president of administration. “This benefit will allow us to continually evaluate and apply robust security measures to protect the airport from the threat of terrorism.”

By Raymond B. Biagini, Dana B. Pashkoff and Scott Gibbons

EXPANSIVE REACH

irports that invest in a comprehensive airport facility security program beyond the minimum regulatory requirements are now eligible for another benefit in addition to safety and compliance. These airports now can be awarded Support Anti-Terrorism by

The SAFETY Act, which was passed after the Sept. 11 terrorist attacks, eliminates or minimizes tort liability for sellers, providers and users of “Qualified Anti-Terrorism Technologies” (ATT). Since passage of the act in 2002, DHS has awarded hundreds of companies SAFETY Act protection for everything from security screening equipment

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

to vulnerability assessments and security system integration services. The SAFETY Act has been an effective tool in allowing companies to develop homeland security products and services without the fear of tort liability should these products and services be implicated during a terrorist attack. More recently, DHS has allowed the SAFETY Act to broaden its reach. DHS has awarded coverage to entities other than those companies that traditionally “sell” homeland security technologies. For example, DHS awarded coverage to a chemical company that implements comprehensive security plans internally to protect its own facilities. Next, recognizing that quasi-governmental agencies sometimes can be liable in the event of an act of terrorism, DHS awarded SAFETY Act coverage to the Port Authority of New York & New Jersey for its security-related activities. Now, with its first-of-its-kind award to Cincinnati/Northern Kentucky International, DHS has affirmed that airport authorities/owners also are clearly within the SAFETY Act purview.

LIABILITY PROTECTION Given that a terrorist event at an airport could lead to catastrophic liability for the owner/operator of the airport, the protections offered by the SAFETY Act are significant. The two levels of SAFETY Act coverage are known as “designation” and “certification.” Airports that obtain SAFETY Act “designation” coverage receive the following protections: • Elimination of punitive damages claims; • A requirement that such lawsuits be filed exclusively in federal court; and • A cap on liability damages in an amount specified in the SAFETY Act coverage decision, which is to be covered by terrorism insurance. If DHS also awards the airport the higher level “certification” coverage, the above protections apply, and the airport obtains a legal presumption of immediate dismissal from all third-party lawsuits arising out of an act of terrorism involving the technology. This presumption only can be overcome by a show of “clear and convincing” evidence that the seller acted “fraudulently or with willful misconduct” in submitting information to DHS during the SAFETY Act application process.

OBTAINING SAFETY ACT COVERAGE Airports seeking SAFETY Act coverage must complete and submit an application to DHS, which takes the department approximately 120 days to evaluate. The application requests technical, insurance and financial information from the applicant. All information submitted with the application is kept strictly confidential and exempt from public disclosure. The technical portion of the SAFETY Act appli32

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

cation primarily seeks a description about the ATT and how it is performed. For an airport, this would consist of describing its security program in detail, focusing on the mechanisms designed to protect the airport perimeter, air operations area, and other secured areas. It also would consist of a discussion regarding the hiring, training and oversight of the individuals who are charged with implementing the program. Airports should identify for DHS those elements of their security programs that exceed TSA’s minimum security requirements. Applicants also must provide evidence of the ATT’s efficacy, the policies and procedures governing the deployment of the ATT, and any safety hazards or risks associated with the use of the ATT. In the insurance section, applicants must provide information relating to their insurance policies that would respond to third-party claims arising out of an act of terrorism. Applicants also must provide details regarding the actual and projected revenues for the ATT. This information allows DHS to establish an appropriate liability cap on the seller’s damages should the seller be involved in a lawsuit arising from an act of terrorism.

SIGNIFICANT BENEFITS In short, this groundbreaking SAFETY Act award has two significant benefits. First, Cincinnati/ Northern Kentucky International has managed its own risk in the most protective manner, obtaining significant liability protection for its security planning. Second, this SAFETY award incentivizes all participating airports to exceed minimum federal regulatory requirements, thus bolstering their facilities against a terrorist event and enhancing homeland security for all U.S. and foreign travelers. A Raymond B. Biagini and Dana B. Pashkoff are attorneys at McKenna Long & Aldridge LLP and regularly counsel clients on all aspects of SAFETY Act coverage. Scott Gibbons, A.A.E., is vice president of administration at the Kenton County Airport Board. He may be reached at sgibbons@cvgairport.com. The authors worked together to prepare and submit Cincinnati/ Northern Kentucky’s SAFETY Act application.

Editor’s Note: G&T Conveyor Co. in August 2008 was awarded the contract from the Kenton County Airport Board for the inline baggage handling system design improvements at Cincinnati/Northern Kentucky International’s Concourse B. The scope of the project included installing 2,600 linear feet of conveyor belt and 250 drives, and remodeling the TSA break room to become the baggage handling system/ TSA control room. Additionally, G&T integrated the baggage handling system with four L3 6600 explosives detection screening machines. The project was completed in 2010. In April 2008, G&T received Safety Act certification from DHS. G&T is designated and certified as a Qualified AntiTerrorism Technology under the Safety Act and is one of a limited number of baggage handling systems companies to hold Safety Act designation and certification.

IRPORT MAGAZINE IN OCTOBER HOSTED A WEBINAR TITLED Case Studies and Innovative Approaches to Airport Land Development. The moderator was Rick Crider, A.A.E., airport general manager at Port San Antonioâ&#x20AC;&#x2122;s Kelly Field. Crider also

was principal investigator for the recently released Airport Cooperative Research Program (ACRP) Guidebook for Developing and Leasing Airport Property, which was sponsored by FAA.

Airport LAND DEVELOPMENT Making the Right Choice for the Present and the Future

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

In addition to Crider, webinar panelists were: • Randy Forister, A.A.E., senior director of development at Pittsburgh International Airport, who provided the perspective of the medium (formerly large) hub airport and the challenges of competing with development sites owned fee simple. • Monica Lombrana, A.A.E., director of El Paso International Airport, who offered the perspective of one of the larger small hub airports faced with redevelopment of onairport parks and assets. • Scott Smith, A.A.E., director, Lone Star Executive Airport (Texas), who provided

Rick Crider

the perspective of aggressive community investment in airport infrastructure (beyond state and federal involvement). The following information was excerpted from the webinar. Templates for development don’t necessarily work, Crider stated, adding, “Every community and airport is different.” He counseled airports to consider the following questions before committing to a development plan: • Does the project fit the stated goals of the airport master plan, the land use plan and the airport business plan? • Does it comply with community land use plans, zoning ordinances and other appli-

Randy Forister

•

• •

•

Monica Lombrana

Scott Smith

cable planning documents? Does it comply with, or is it in conflict with, the FAA-approved airport layout plan? Does the proposed use of the property violate any grant assurances? Does the project represent the highest and best use of the property? Have all of the potential stakeholders been identified and have the perspectives, concerns and resources (e.g., potential funding sources, marketing resources and development expertise) of community stakeholders been identified? Are plans in place to reach out to the community (e.g., public meetings, roundtable discussions and focus groups) planned to facilitate communication and dialogue?

Forister, who brings to his airport position experience as a real estate broker, described Pittsburgh International’s active involvement in developing nonaviation land to generate more revenue. The first decision must be to determine the airport’s role, he said, AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

“

An important part of land development is redevelopment of existing properties to maintain a competitive edge. which means deciding whether to lease or sell “as-is, where-is” land; lease or sell improved property; or lease completed buildings. Pittsburgh has focused its development activities on leasing/selling improved property, which involves acquiring and grading the sites, installing utilities and acquiring permits. “In our marketplace, that is a premium,” he explained. However, “the airport is the first priority,” Forister cautioned. “Preserve the ground you need to run the airport…” This may involve looking ahead 50 years rather than the typical 20 years in a master plan, he said. In the development process, Forister echoed Crider’s recommendation to bring stakeholders into the process as early as possible. “You may find supporters you didn’t know you had,” he said. In terms of funding the development, “You don’t need to carry all of the financial burden yourself,” Forister advised. “Do your homework, and find out exactly the funding you need. Don’t sell yourself short, but don’t ask for way more than you need.” Many types of state and local agencies have funding, he noted, and they should be approached. In addition, he suggested talking to state and local development agencies, always emphasizing the number of jobs that the project will create. Once the development area has been determined, “Stop thinking like an airport,” Forister advised. During construction, “Plan like a developer,” he said. ”Don’t build more than the market can handle…be cautious.” By adhering to a flexible plan, one large site can be converted into several small ones, he explained. Further, adopt “fair and reasonable” design standards for the site and insist on having them followed. Another issue to consider is having a wildlife hazard management plan for the property, he said. Marketing the project should begin in the planning phase, Forister said, adding, “Don’t build anything you cannot carry for a long period of time.” He noted that, “Markets and real estate have economic swings.” Join the local trade groups and be an active participant in them, he advised. “If you are out of sight, you are out of mind.” Lombrana’s airport gives first priority to airfield safety/ security projects, followed by improvements to aging infrastructure. Following these, the airport pursues nonaeronautical projects that provide the greatest return on investment. “We are landlords to over 200 businesses,” 36

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

”

she stated, including seven hotels. A second golf course, Butterfield Trail Golf Club, is a recent development venture and was built to attract a high-end business hotel that will offer conference facilities. El Paso International’s nearly 7,000 acres of land houses two fully developed industrial parks — Southern Industrial Park and Butterfield Trail Industrial Park. The latter property is the newer one and was designed for the maquiladora, or twin plant, manufacturing industry. It offers underground utilities, wide streets to handle large trucks, and immediate access to air, rail, and highway transportation. The airport also houses a Foreign Trade Zone to complement the industrial parks and to entice manufacturers to the area. Further, El Paso International has paid for the infrastructure for the new Global Reach Science and Technology Park. “We believe it’s the perfect place to serve the expansion of (neighboring) Fort Bliss,” Lombrana explained. As planned, the new science and technology park will capitalize on the community’s plans to expand into the defense and biomedical fields. She noted that in addition to the expansion of Fort Bliss, El Paso now has a four-year medical school, and El Paso Children’s Hospital will open in 2012. El Paso International also has invested $120 million in an air cargo center, which offers two buildings, ramps, roadways and a 1,000-foot extension of Runway 4-22. Lombrana pointed out that an important part of land development is redevelopment of existing properties to maintain a competitive edge. Since Southern Industrial Park is the airport’s oldest park, the airport is currently updating the area’s land use plan to ensure that it will return the greatest profit. Further, to revitalize the park and attract more services for its tenants, the airport will rehab the pavement, upgrade landscaping and install walking trails. In addition, the airport has commenced pavement rehabilitation and landscaping improvements in Butterfield Trail Industrial Park to attract new tenants. The value of El Paso’s non-aeronautical land development is apparent in the airport’s fiscal year 2011 estimated revenue sources. Lombrana shared the following figures: the airport’s aviation revenue totaled $12.9 million; non-aviation revenue totaled $21.9 mil-

lion; and total operating revenue totaled $34.7 million. Lone Star Executive Airport elected to pursue a publicprivate strategy to develop non-aeronautical land on the airport. Smith explained that the county government in the 1990s anticipated a continuing increase in the region’s population that would place a strain on infrastructure, including the airport. County officials determined to develop 500 available acres of airport land to maximize the amount of funding that would be available to improve the facility, recognizing that utilization of the facility would change from recreational flying to serving the needs of the business community. Most of the airport hangars were old, Smith said, and yielded low rent values because of their condition. Because the county owned the buildings and didn’t have the capital to invest in upgrading them, it was decided to sell off hangars through an RFP process and execute long-term ground leases. That action became a catalyst for private development. Hangar rents escalated from $90 to $175 per month, and the airport’s operating revenue steadily increased. The county’s determination to funnel public dol-

lars into infrastructure while private developers were responsible for hangar development resulted in a doubling of hangar space between 1996 and 2000, while the number of businesses on the airport increased from eight to 11. Further, targeting public money at infrastructure allowed the county to seek grants to upgrade both runways and make other needed improvements to meet the current and forecast capacity demands. The county was able to add its own funds to those of the Texas DOT to obtain the quality upgrade it desired. Smith also pointed out that opportunities exist for airports to tap into off-airport land development opportunities as well. He noted that the nearby city of Conroe has facilities adjacent to the airport, with business and technology parks under development, which could create more airport users. A Rick Crider may be contacted at rick.crider@portsanantonio. us; Randy Forister may be contacted at rforister@pitairport. com; Monica Lombrana may be contacted at monica.lombrana@elpasotexas.gov; Scott Smith may be contacted at scott. smith@mctx.org.

Trusted Whether your project is airside, landside, commercial, military, or GA, you can count on Kimley-Horn to provide the best in service and satisfaction. To learn more, contact aviation@kimley-horn.com or call Loy Warren at (972) 770-1376.

www.kimley-horn.com/aviation AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

THE AAAE TRANSPORTATION SECURITY CLEARINGHOUSE (TSC):

A Decade of Success Serving Airports

Photos by Bill Krumpelman, AAAE, of the clearinghouse and an airport badging office

RELIABILITY: Over the past decade, the TSC has processed 8 million aviation worker records successfully — three times as many as the Transportation Workers Identification Credential (TWIC) program. EFFICIENCY: The TSC has taken processing times from 52 days to a matter of minutes. COST-EFFECTIVENESS: Costs to airports and industry for background checks is one-third the cost imposed on other transportation workers. AIRPORT CONTROL: The TSC was established specifically to serve airports, which are both customers and owners of the clearinghouse. Prior to 9/11, aviation workers were required to undergo fingerprint-based criminal history records checks (CHRCs) conducted by the FBI in any instance in which they could not show a 10-year history of continuous employment. The checks were processed by the federal Office of Personnel Management (OPM) and routinely took weeks to complete, averaging more than 50 days for a prospective employee to receive background check results. Those delays kept airport and airline employees from their jobs for extended periods of time while they awaited required checks, imposing a heavy burden on airport operations and employees. Following 9/11, Congress required that all aviation workers undergo CHRCs within a year. Recognizing that this important mandate could not be met utilizing the OPM-run process in place at that time, AAAE created the TSC in partnership with the federal government to process the required background checks for aviation workers. The TSC established a high-speed, secure method to collect employee fingerprints for more than 500 airports and multiple airlines across the country for FBI checks, reducing processing times to a matter of hours rather than weeks and ensuring that the congressional mandate for worker checks was met. In addition to facilitating aviation worker CHRCs, the TSC has been instrumental in ensuring that a subsequent TSA mandate to conduct biographicbased Security Threat Assessments for workers in and around the aviation environment was completed in a timely manner without major disruptions to airport or aviation system operations. The TSC has built its unparalleled record of success at absolutely no cost to the federal government, a remarkable fact considering the hundreds of millions of dollars that the federal government has spent to build similar background check programs for port workers and hazardous material truckers. A 38

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

FOODBEVERAGERETAIL

John Wayne Airport’s New Terminal Adds Host of Restaurants and Shops

alifornia’s John Wayne Airport in November opened the 282,000-square-foot Terminal C and a host of new restaurants and shops offering a combination of Orange County and national brands. As part of its airport improvement program, the Orange County Board of Supervisors awarded new contracts for primary food and beverage (HMSHost), fast food and casual dining (McDonald’s USA, LLC and CKE Restaurants Inc.), news and gift (Hudson Group and ParadiesOC, LLC), and specialty concessions (Caterina’s, Creative Croissants, Subway and Vino Volo). The selected concessionaires invested more than $22 million to build new and improve existing facilities in the Thomas F. Riley Terminal, comprised of terminals A and B, and the recently opened Terminal C. Some outlets already have opened, while others were slated to begin operating in December and in 2012. When construction, which began earlier in 2011, is complete, the project will nearly double

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

CORPORATEOUTLOOK the concession space and add significantly more variety in dining and shopping options, airport officials said. The new Terminal C concessions total 23,589 square feet and existing terminals A and B gain a total of 28,796 square feet under the improvement program. Orange County-based or -themed restaurants include Zov’s, Anaheim Ducks Breakaway Bar & Grill, Javi’s, Hobie Sand Bar, Jerry’s Wood-Fired Dogs and Caterina’s. Opening in 2012 are Ruby’s Diner and Ruby’s Grab N’ Go, and Fresh Market by Laguna Culinary Arts. Other food and beverage options in the new terminal are La Tapenade Mediterranean Café, Ciao Gourmet Market, Vino Volo, California Pizza Kitchen, Subway, Carl’s Jr./Green Burrito, Pei Wei, Pinkberry, McDonald’s and McCafe (being remodeled in 2012); and Creative Croissants (operating at the airport since 1990). Retail, news and gift options include CNBC News Orange County, Discover Orange County/ Tech on the Go, Hudson News Newswall, Sunglass Hut/Rip Curl, CNN Newsstand Orange County, Beachfront News and InMotion Entertainment store, CNBC News Express, South

Coast News, and OC Travel Mart. The new concessions are part of the airport’s $543 million improvement program, which opened on schedule and within budget, airport officials said. Terminal C includes six new bridged aircraft gates, two new commuter terminals, additional security checkpoints, a new South Remain-OverNight aircraft parking area, a new parking structure and a central utility plant.

John Wayne Airport offers natural and local branded concessions.

• Airfield Analysis and Planning • Airport Business and Financial Services • Airspace Analysis and Planning • Credit Rating Support • Environmental Services • Forecasting • General Advisory Services • Land Use and Development Planning • Landside Planning • Management Support Services • Noise Analyses • Operations Research • Regulatory Assistance

Ricondo & ASSOCIATES, INC.

• Strategic Planning

From Great Companies Come Great Ideas

• Terminal and Facilities Planning

RICONDO & ASSOCIATES, INC., an Aviation Consultancy info@ricondo.com

www.ricondo.com •

an equal opportunity employer

AIRPORTMAGAZINE.NET | OCTOBER/NOVEMBER 2011 3873 - Centerlines half-page Ricondo ad.indd 1

1/19/2011 4:45:02 PM

Retail Briefs A partnership team led by travel retailer Hudson Group has received approval from Las Vegas McCarran International Airport and the Clark County Commission to develop space in the airport’s Concourse D rotunda into a specialty retail shopping mall. Six new retail stores will be built in the rotunda area, which is located in the area where passengers from the main terminal exit the airport tram. Three stores (Hugo Boss, Juicy Couture and Guess) will be placed at the outer edge of the rotunda. Kiosks in the center will house Kiehl’s skin and hair care products, a Tech on the Go electronics store and more. The new shops will be open within a year. ... The Chicago Department of Aviation (CDA) and HMSHost celebrated the official grand opening of a new Starbucks Coffee with a ribbon-cutting ceremony at O’Hare International. The new store features an artisan design concept and uses recycled materials and environmentally friendly fixtures that make it a model for airport coffee stores. “The sustainable materials used in the store’s design, such as reclaimed wood and locally sourced materials, reflect the work of HMSHost, Starbucks and the CDA to make O’Hare’s restaurants and stores as environmentally friendly as possible,” said CDA Commissioner Rosemarie Andolino. In addition, all Starbucks Coffee locations at O’Hare are now collecting coffee grounds for composting. ... Portland International Airport has begun offering access to the Thanks Again Rewards Program, which enables airport customers to automatically earn airline miles when they park, shop or dine at the airport using a registered debit or credit card. Airport visitors paying with a registered card earn 1 mile for every dollar spent. From Nov. 14, 2011 - Jan. 2,

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

2012, customers will earn 2 miles for every dollar spent. Thanks Again participating airline rewards programs include Alaska Airlines, American, Continental, Delta, US Airways and United. According to a statement from the airport, more than 160 airports nationwide participate in the program. ... Swarovski, a designer and producer of fashion jewelry and crystal décor objects, in partnership with Corliss Stone-Littles, LLC, a concessionaire specializing in airport retail operations, has opened a licensed boutique at Detroit Metropolitan Wayne County Airport. The opening is part of Swarovski’s plans to further expand its licensed boutique business by targeting airports, casinos and shopping centers. The 430-square-foot space will offer Swarovski’s full range of fashion jewelry and watches, as well as home accessories and décor objects. ... The Paradies Shops was awarded a 10-year contract at Portland (Maine) International Jetport. In addition to updating CNBC News and Portland Lighthouse Vending, Paradies is introducing Down East MarketPlace, a concept with mini-shops featuring local brands. News and magazines are represented in the Down East section, a partnership with Down East Magazine. Other specialty sections include jams, jellies, syrups and sauces from Stonewall Kitchen; eco-friendly totes and accessories from Sea Bags; fun apparel for the whole family from Cool as a Moose; and custom art from Sunshine Art Gallery and Shelby Crouse. ... Jedediah’s at the Airport, operator at Jackson Hole (Wyo.) Airport, recently opened its second full restaurant and bar location at Missoula (Mont.) International. The company specializes in food and beverage service at small hub airports.

MARKETSCAN Total Seat Capacity |

St. Louis-Lambert International Airport (STL) — 1Q 2001–1Q 2012

5000000

TWA

Southwest Airlines

4500000

American Airlines

4000000

Northwest Airlines Delta Air Lines

3500000

US Airways

3000000

United Airlines

Continental Airlines

2500000

America West Airlines

2000000

Air Canada

1500000 1000000 500000

20 12

20 11

20 10

20 09

20 08

20 07

20 06

20 05

20 04

20 03

20 02

20 01

Total Seat Capacity |

Minneapolis-St. Paul International Airport — 1Q 2006–1Q 2012

5000000 4500000 4000000 3500000

Northwest Airlines American Airlines

3000000

United Airlines Delta Air Lines

2500000

US Airways

Sun Country Airlines

2000000

Southwest Airlines AirTran Airways

1500000

Continental Airlines

1000000

Frontier Airlines

500000

Total Seat Capacity | 12000000

Hartsfield-Jackson Atlanta International Airport — 1Q 2006–1Q 2012

10000000

8000000

6000000

Delta Air Lines

AirTran Airways

American Airlines

US Airways

Southwest Airlines

United Airlines

Continental Airlines

Korean Air

Spirit Airlines

Air France

4000000

2000000

20 07 2Q 20 07 3Q 20 07 4Q 20 07 1Q 20 08 2Q 20 08 3Q 20 08 4Q 20 08 1Q 20 09 2Q 20 09 3Q 20 09 4Q 20 09 1Q 20 10 2Q 20 10 3Q 20 10 4Q 20 10 1Q 20 11 2Q 20 11 3Q 20 11 4Q 20 11 1Q 20 12

06 20

3Q 20

2Q 20

AIRPORTMAGAZINE.NET | DECEMBER 2011/JANUARY 2012

AIRPORTBILLBOARD

Cargo Facility Breaks Ground At Miami

assengers by airport TRAFFIC FOR OCTOBER 2011 Airport

2010

% Change

Akron-Canton (Ohio) Airport

148,113

2011

133,049

+10.2

Austin-Bergstrom International

793,640

769,997

+3.1

Bradley International (Conn.)

490,842

486,168

+1.0

53,274

53,218

+0.1

5,005,531

4,958,871

+0.9

46,394

+2.4

3,381,889

-4.7

Central Illinois Regional Dallas/Fort Worth International Fort Wayne (Ind.) International

47,502

Houston Bush Intercontinental

3,223,932

Indianapolis International Kansas City (Mo.) International

655,347

685,171

-4.4

896,247

880,994

+1.7

Los Angeles International

5,124,604

4,988,085

+2.74

Miami International

3,045,128

2,851,206

+6.8

Mineta San Jose (Calif.) International

688,963

713,828

-3.5

73,851

83,230

-11.3

Myrtle Beach (S.C.) International Norfolk (Va.) International Portland (Ore.) International

258,386

278,783

-7.3

1,132,636

1,117,465

+1.4

Quad Cities (Ill.) Airport

72,373

86,255

-16

Raleigh-Durham (N.C.) Int’l

825,173

823,705

+0.2

Richmond (Va.) International

280,951

307,191

-8.54

Savannah (Ga.)/Hilton Head Int’l

140,189

154,665

-9.4

Southwest Florida International

469,145

532,025

-11.8

Southwest Florida International

351,881

374,590

-6.1

34,049

31,730

+7.3

Stewart International (N.Y.)

DOMESTIC AND INTERNATIONAL FARES AIRLINES REPORTING CORPORATION

2010 DOMESTIC FARES 2010 INTERNATIONAL FARES 2011 DOMESTIC FARES 2011 INTERNATIONAL FARES

DOLLARS IN BILLIONS

4.0

3.0

2.5

2.0

Centurion Air Cargo has broken ground on its new global headquarters and cargo center at Miami International Airport. The new 800,000-square-foot cargo center for Centurion, one of the largest carriers of perishable goods between North, Central and South America, will house an international shipping and receiving hub that features dry and refrigerated warehouse areas and an exclusive ramp with space to park up to eight wide-body aircrafts such as the Boeing 747. The expansion is expected to add 200 jobs and $123 million of capital investment to the local economy, the company said. Aeroterm, a developer and manager of on-airport facilities, and Bristol Group, an investment and development firm specializing in industrial properties, have partnered with the Aerolog Group to develop and fund the cargo center, slated to open in 2012.

Skanska/Moss Win Airport Contract A joint venture of Skanska USA and Moss & Associates was awarded the $80 million contract to expand and renovate the Greenville-Spartanburg (S.C.) International Airport terminal. The multi-phase terminal improvement program consists of an overall expansion to the airport’s footprint and major renovations to the existing airport terminal. The project architect is RS&H. Work began in December 2011 and is slated to be completed in June 2014.

Baker Awarded Maryland Contract

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Michael Baker Jr., Inc. has been awarded a $6.5 million, seven-year contract by the Maryland Aviation Administration to perform architectural and engineering services at Baltimore Washington International and Martin State airports. Baker will provide airfield runway engineering, terminal and facility architectural improvements, landside project engineering, as well as a variety of secondary services related to lighting, stormwater, security, navigational aids, parking and other services.

t ve Sa he te Da !

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ANTN Digicast

www.antndigicast.com

Inside Back Cover

Astronics DME Corp.

www.astronics.com

Burns & McDonnell

www.burnsmcd.aero

Back Cover

CDM and Wilbur Smith Associates

www.cdm.com

Delta Airport Consultants, Inc.

www.deltaairport.com

Interactive Employee Training System (IET)

www.aaae.org/IET

Kimley-Horn and Associates, Inc.

www.kimleyhorn.com

Michael Baker Corp.

www.mbakercorp.com

Ricondo & Associates, Inc.

www.ricondo.com

RS&H

www.rsandh.com

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