airportconsulting winter 2010

Winter 2009/10

See PRIVATE InVEsTmEnT on page 16

ConsultingA Quarterly Publication of the Airport Consultants Council

page 10page 6page 4

OUT & ABOUT WITH ACC — SAGA PRESS CONFERENCE

ARE YOU ATTRACTING THE BEST CONSULTANTS?

SPECIAL FEATURE:

USTDA: OPENING AVIATION MARKETS OVERSEAS

We have all read articles about the shortfall in available funds for airport infrastructure projects in the next 10 years. According to

ACI-NA’s recent Capital Needs Survey, airport project needs are estimated to exceed $94 billion for federal fi scal years (FFY) 2009 – 2013, or approximately $19 billion per year, a 32-percent increase over the 2005 – 2009 period. While the industry is currently experiencing a downturn, it is expected to be short-lived. Where will the money to fund development projects come from?

Current federal and local resources fall short of meeting these needs. A new multi-year Federal Aviation Administration (FAA) re-authorization bill is mired in politics, and temporary extensions are fl at lining Airport

Improvement Program (AIP) funding at $3.5 billion. Discussions on increasing the Passenger Facility Charge beyond $4.50 per passenger are stalled and contentious, and the current credit crunch and global recession are creating severe limitations on bonds for small, medium and even some large airports.

With such traditional funding sources in question, U.S. airports, like their global counterparts, may increasingly turn to the private sector for additional funding. Might Public-Private Partnerships (PPP) and complete privatization play a greater role in funding U.S. airport development in the coming decades?

Airport PrivatizationIt’s important to fi rst understand what privati-zation is and the circumstances that typically

drive it. Simply put, airport privatization, like other infrastructure privatization, involves the development, fi nancing and operation of airports by private entities.

Public-Private Partnerships (PPP)The most prevalent type of airport privatization in the United States involves partial privatiza-tion, where specifi c facilities are developed, fi nanced and operated by private entities, but those facilities are typically located at publicly owned and operated airports. One example is International Terminal 4 at JFK International Airport in New York, operated by the Port Authority of New York and New Jersey.

Built in 2001, this $1.4 billion project was built, fi nanced and operated by JFK International

f i l l i n G a f U t U r e f U n D i n G G a P ?f i l l i n G a f U t U r e f U n D i n G G a P ?

PRIVATE INVESTMENT IN U.S. AIRPORTS

By Evan Futterman, President, Futterman Consulting, Inc. and Ginger Evans, Aviation Division Manager, Parsons

2 Consulting, Winter 2009/10

As we consider the present state and future trends in airport development, ACC and its members have a choice: watch events unfold and be acted upon, or be a proactive part of the solution and

influence the evolution of our business. As my year as ACC board chair draws to a close, I’m sure you know by now where I’m going with this discussion.

ACC, as an organization, is gaining momentum. In advancing one of our key goals — to be the “go to” organization on technical issues and for industry leaders and politicians — ACC’s ability to impact our industry’s future will grow even stronger. Already, the FAA and TSA come to ACC regularly for input and advice on key technical issues. ACI and AAAE reach out to partner with us on industry conferences and when taking positions on key industry legislation.

Looking to aviation’s future, change is inevitable. We have already seen what $150-per-barrel oil can do, as well as terrorist threats and major economic downturns. What lies ahead?

Being an eternal optimist, I see positive change. We are adapting to the energy crisis and seeking to reduce dependency on fossil fuels. As wind and solar energy, bio and synthetic fuels advance, they will transform our industry. With fuel costs being their biggest expense after labor, airlines are driven to be part of the solution, ultimately as a means of survival.

If we do not act fast enough, however, rising fuel costs will deal a severe blow to affordable flight. Since air travel is so critical to the health and well-being of our economy, we have all the motivation we need to succeed.

Airports, for their part, are making dramatic changes as well. To deal with reduced levels of traffic, many are cutting expenditures, staff and development programs, all while seeking new non-aeronautical revenues ever more aggressively. Airports are evolving into leaner, more cost-efficient organizations. While such change will help weather short-term economic challenges, more importantly, it will position airports to take advantage of a recovering economy with many, many more travelers in the years to come.

And this is exactly where ACC and its members come in. We are helping airports reduce costs and increase efficiency by conceptualizing and delivering cost-effective solutions, be they master plans that better utilize existing infrastructure, sustainable terminal and airfield designs, or more efficient, risk-sharing construction via project delivery types that include design-build and CM@R (Construction Manager at Risk). As trusted advisers, we are leading the way on sustainability initiatives, rewriting outdated circulars to embrace new technologies and design processes, and exploring ways to do more with less. We are clearly part of the solution.

Will we be satisfied with the progress we’ve already made? Of course not! As private and public firms seeking to build wealth for our shareholders and to retain and recruit the best talent, we will push even harder in our efforts to compete to win. And, in doing so, we will continue to deliver innovations in airport development.

It is clearer than ever before that airlines, airports and the airport development community need each other to be successful. ACC must continue to lead the effort to facilitate our common industry goals.

ACC’s Role in the Future of Airport Development

Evan Futterman

Futterman Consulting, Inc.

ACC 2009 Board of Directors Chair

E x E c u t i v E u P d a t E

Cover Story

1 Private Investment in U.S. Airports — Filling a Future Funding Gap?

By Evan Futterman, President, Futterman Consulting, Inc. and Ginger Evans, Aviation Division Manager, Parsons

Special Feature

4 – 5 USTDA: Opening Aviation Markets Overseas

By Leocadia I. Zak, Acting Director, U.S. Trade and Development Agency

Consultant Perspective

6 – 7 Are You Attracting the Best Consultants?

By T.J. Schulz, ACC Staff

A Quarterly Publication of the Airport Consultants Council

Winter 2009/10

3

Consulting

EDITORT.J. Schulz

AirportConsulting is published quarterly. The next issue will be distributed in March.

For advertising information, contact Emily VanderBush at 703-683-5900.

Please send your feedback, comments or suggestions to the editor at: Airport Consultants Council,

908 King Street, Suite 100, Alexandria, VA 22314, or e-mail [email protected].

©2009, ACC

AirportConsulting

ACC 2009 Board of Directors

Paula P. HochstetlerPresident

T.J. SchulzVice President

Sharon D. BrownDirector, Programs and Finance

Emily VanderBushCoordinator, Marketing and Membership

John B. ReynoldsCoordinator, Communications

ACC Staff

…bringing experts together

Inside This Issue

8 – 9 Member SpotlightsThis issue highlights ACC Executive W.D. Schock Company, Inc. and ACC Associate INET Airport Systems.

10 Out & About with ACC

11 Airport Planning, Design & Construction Symposium Preview

12 ACC 31st Annual Conference & Exposition

13 Call for Nominations Nominations are now being accepted for the 2010 ACC Aviation Award of Excellence

14 ACC Members

16 Cover Story(continued from page one)Private Investment in U.S. Airports

— Filling a Future Funding Gap?

19 Spotlight ACC Institute Upcoming ACC Training Events

20 After All...FAA’s Revised Airport Compliance Manual: A Good Resource For Consultants By Jack Corbett, Law Firm of Spiegel & McDiarmid LLP

CHAIREvan Futterman

Futterman Consulting, Inc.

VICE CHAIRRonald L. Peckham, P.E.

C&S Companies

SECRETARY/TREASURERTerry A. Ruhl, P.E.

CH2M HILL

IMMEDIATE PAST BOARD CHAIRMichael J. DeVoy, P.E.

RW Armstrong

BOARD OF DIRECTORSMichael R. Arnold, LEED AP

ESA Airports

Thomas B. DuffySafegate Airport Systems, Inc.

Michael K. Kluttz, P.E.Robert and Company

Carol Lurie, LEED AP, AICPVanasse Hangen Brustlin, Inc.

Enrique M. MelendezJacobs

A. Bradley MimsParsons Brinckerhoff

David G. Peshkin, P.E.Applied Pavement Technology, Inc.

Susan PredigerCAGE Inc.

www.ACConline.org

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t a B l E o F c o n t E n t s

Consulting, Winter 2009/104

USTDA Opening Aviation Markets Overseas

The current economic downturn has prompted many U.S. fi rms to consider

expansion opportunities abroad as a means to deal with the contraction of

the U.S. market. ACC members interested in entering the international arena

or increasing their presence in foreign markets should look at the programs

of the U.S. Trade and Development Agency (USTDA) as a means to expand

business. A number of ACC companies work with USTDA regularly and

additional partners from the ACC ranks are welcome.

The mission of the USTDA is to pro-mote infrastructure development and economic growth in emerging economies while creating opportu-

nities for the export of U.S.-manufactured goods and services and the creation of U.S. jobs. To accomplish these goals, the agency relies on the private sector to perform a num-ber of activities such as feasibility studies for proposed development projects; targeted and tailored technical assistance programs; training; reverse trade missions; and project due diligence. By performing such services, U.S. companies often position themselves to compete favorably for follow-on contracts associated with project implementation with the host country.

Aviation is a particularly important sector. In particular, USTDA focuses on promoting airport development, improved air traffi c control systems, aviation safety and security, and environmentally sound aviation practices. The value to U.S. fi rms of partnering with USTDA in this sector is best highlighted

by some ACC members’ comments in their own words:

“ Working with USTDA has introduced our fi rm to new clients and new markets world-wide. The initial work on a feasibility study or technical assistance program gives us a chance to show what we can do for a new client, potentially leading to follow-on work on the project.”

— BILL FULLERTON Senior Vice President The Louis Berger Group

“ USTDA was the catalyst for the expansion of our small transportation planning and consulting fi rm internationally by our participation in the full range of USTDA-funded opportunities, including desk studies, defi nitional missions, feasibility studies and technical assistance projects.”

—MONT Y GETT YS

Presidentmontgomery Consulting Group

By Leocadia I. Zak, Acting Director, U.S. Trade and Development Agencys P E c i a l F E a t u r E

How can I contact USTDA? More information about USTDA is available at www.ustda.gov. To contact USTDA’s program staff, call (703) 875-4357, or send an e-mail to your region of interest:

East Asia: [email protected]

Europe and Eurasia: [email protected]

Latin America and the Caribbean: [email protected]

Middle East and North Africa: [email protected]

South and Southeast Asia: [email protected]

Sub-Saharan Africa: [email protected]

How can I get involved? Business opportunities with USTDA’s grant recipients are competed on the Federal Business Opportunities website. Links to these postings are available on www.ustda.gov.

An easy way to track these announcements is to subscribe to USTDA’s biweekly eNewsletter. A free subscription is available on USTDA’s website.

www.ACConline.org 5

Coming from the small business perspec-tive, Ms. Gettys’ comment about USTDA illustrates an important fact worth noting: small businesses account for the majority of USTDA contracts to the private sector; and the services and expertise of these fi rms are vital to success.

Because of the priority placed on aviation infrastructure development as an engine of economic growth, USTDA offers numerous opportunities each year for ACC members to participate in important events the agency sponsors as a way to connect with both the domestic and foreign aviation communities.

For instance, USTDA recently established the U.S.-China Airport Environmental Partnership. As a fi rst step in a multi-year ef-

fort to support China’s effort to build “Green Airports,” USTDA sponsored a delegation led by the CAAC’s Airport Department to the United States on September 14 – 25, 2009 to examine U.S. best practices in sustainable airport development. USTDA welcomes ACC member involvement in the partnership to ensure that China has the best technical expertise available as they begin building 97 new “green” airports planned for develop-ment by 2020.

In addition, USTDA sponsored the U.S. and Sub-Saharan Africa: Partners in Aviation Conference on October 26 – 28, 2009 in Atlanta, Georgia. This conference brought ministers and civil aviation authority directors from 14 African countries together with U.S. industry to discuss African priority develop-

ment projects. The goal of the conference was to introduce U.S. industry to African decision-makers and open doors for future business opportunities in the burgeoning African aviation market. In December, USTDA will sponsor the second U.S.-India Aviation Summit in Washington, D.C. Both of these events are designed to provide direct access for U.S. fi rms to meet with the deci-sion makers about future procurement needs. Similar events are planned for 2010.

As USTDA continues to help project sponsors fi nd U.S.-based solutions to their development priorities, we would like to include more ACC members. We hope that you will explore these opportunities and partner with us in the future.


The process of selecting an airport consultant is a vital step in ensuring the overall success of a project. A good, efficient procurement pro-

gram facilitates participation by numerous firms and gives an airport access to the most qualified consultants. An inefficient process may drive consultants away from project advertisements and adversely affect the quality of projects. Airports may want to consider the following questions when reviewing their selection pro-cedures:

Is it timely and efficient?•Is it consistent from project to project?•What is the true cost of the process, in •terms of time and money?Does the process produce the most •qualified consultant?Can the process be improved?•

The ACC Procurement Committee has worked to collect best practices in consultant selection, and has presented these ideas at various Federal Aviation Administration (FAA) regional confer-ences and other aviation events. Below are some central themes that ACC emphasizes to ensure an effective procurement process.

CommunicationCommunication is a key factor that drives a successful procurement process. Communication extends both internally within the sponsor’s organization and externally in the consultant community. Internally, the sponsor should have a clear understanding of the specific goals and objectives of the selection process. This should be communicated among staff and revisited throughout the procurement, from inception to contract. Appropriate roles within the process should be detailed and understood among staff.

Effective communication between the spon-sor and consultants gives firms opportunities for creativity and provides a good baseline of understanding throughout procurement and scoping. Overall, airports should have a written document that is widely available to educate

firms on the specific airport procurement pro-cess. For each specific RFQ/RFP, identify and provide the needs within the project, including the scope, scheduling, etc.

Getting UnderwayBefore a sponsor issues an RFQ or RFP, define the specific service needs that will be required, whether they are planning, architectural/engi-neering, on-call, or other services. Develop a detailed project description that includes budget and schedule expectations.

The sponsor should then identify a selection committee of at least three members, and they should be free of any conflict of interest. It is good practice to have the technical staff (includ-ing the project manager) involved in the selection process since they are knowledgeable of the project’s technical requirements. An airport may want to consider having someone outside the organization involved in the panel — perhaps someone from another airport or a different division/agency within the city/county. A written code of conduct for the panel is recommended as well.

Once these features are in place, the sponsor should carefully define the selection criteria. Develop a scoring matrix that is transparent and emphasizes the sponsor’s strategy and service needs without bias to any one firm. Typical examples of criteria include:

Understanding of the project;•Qualifications and experience of key •personnel;Qualifications and recent experience •of the firm; andAbility to meet project schedules.•

Developing the RFQ/RFP is a critical component in the selection process. The project descrip-tion, scope, and selection criteria should be clearly detailed. An adequate timeframe is also crucial. Consultants should be given at least three weeks to respond to the RFQ/RFP. Most importantly, remember to avoid request for cost

c o n s u l t a n t P E r s P E c t i v E

Are You Attracting the Best Consultants?Best Practices for airPort selection Processes

By T.J. Schulz, ACC Staff

www.ACConline.org 7

information in the form of estimates, hours or rates. According to FAA Advisory Circular 150/5100-14 this is prohibited when Airport Improvement Program (AIP) funding is being used until the most qualifi ed fi rm is selected and negotiations begin.

Broad distribution of the RFQ/RFP will get the maximum number of fi rms participating in the solicitation. In addition to visibility on the airport website, circulation through newspapers, trade journals, and through the ACC Outlook weekly e-mail will increase exposure of the advertisement.

Selection ProcessThe RFQ/RFP has been released and submittals are in. What’s next?

As submittals are reviewed and fi rms are ranked according to their qualifi cations, the sponsor may want to conduct individual interviews with the top ranked fi rms. Interviews can be a critical part of the selection process, but can also be time consuming for all parties and expensive for consulting fi rms to conduct (see sidebar).

Use discretion when using interviews — if it is a simple, straightforward project, interviews may not be warranted. If the project is complicated, or if the top ranked fi rms are very close in scoring, interviews may be appropriate. Also, given the costs and time associated with interviews, do not short-list numerous fi rms. In most cases short-listing three fi rms is a good practice.

If interviews are scheduled, allow adequate time for the fi rms to prepare for each interview. Make sure the interview “rules” are well known and parameters of the interviews are set.

Upon completion of interviews, score them and select the top consultant. Notify all parties of the selection result in a timely manner. Also, allow the opportunity for fi rms to follow up and have an individual debrief. This may give

fi rms insight on future opportunities to work at the airport.

NegotiationsWhen entering into negotiations, strive to have them fi nalized within 30 days. A good selection process will lead to effi cient negotiations. The development of a scope and fee are important steps in the negotiation process.

SCOPING R ECOMMENDAT IONSAlong with effective communication, the scoping process between a sponsor and the top-ranked fi rm is a critical component of the overall suc-cess of a project. Scoping sets expectations for both the owner and consultant. Managing these expectations is fundamental to fostering a good working relationship and partnership. Overall, the more detailed the scope, the better, and make sure there are no hidden assumptions.

How to determine expectations? Consultants should speak to their clients, ask questions, fi gure out the overall project goals and objective, and what is important to the sponsor. Face to face meetings help this process, and facili-tated partnering sessions may be useful. It is incumbent upon the airport to let the consultant know all the stakeholders involved in the project and their respective (and sometimes differing) expectations.

The scope should be easy to follow and should also include the subconsultants’ scope. Identify any special circumstances, such as optional work items, night work, accelerated schedules, etc. The scope should also identify what services are not included.

F E E PR EPA R AT IONThe development of the fee should involve detailed information, including the specifi c number of meetings, how many (and who) of the consultant team will attend, etc. Develop a comprehensive spreadsheet to match the project scope. Be sure to clarify billing terms and address

multi-year projects, if necessary.

Projects funded through AIP require an indepen-dent fee estimate. Use a qualifi ed fi rm that does this type of work. Of course, the non-selected fi rms should not perform the fee estimate. Give the estimator the complete scope and blank spreadsheet without man hours.

ConclusionA good selection process delivers positive benefi ts. It provides the effi cient use of spon-sors’ and consultants’ time and minimizes or eliminates legal issues that may occur later in the process. In the end, the sponsor will obtain the most qualifi ed consultants and will be satisfi ed with the selection they ultimately make. Most importantly, following the proper selection procedures results in effective partnerships and a successful project.

For more information or additional resources check out the ACC on-line Library at www.ACConline.org/Content/NavigationMenu/Resources/ACCLibrary/default.htm

The cost of responding to an RFQ/RFP can be substantial for consulting firms, depending on the size and complexity of a project.

Responding to a Statement of Qualifications

Without interview > $5,000 »

With interview > $10,000 »

Developing Proposals

Without interview > $10,000 »

With interview > $20,000 »

Responding to large efforts can exceed $100,000!

Source: ACC Procurement Committee


Airport requirements change rapidly and often, but the need for more room to operate aircraft safely and effectively remains constant. Likewise, airport managers will

increasingly require more information, faster and more accurately, to enable them to be more effective and effi cient. Thanks to a recent strate-gic merger/acquisition, W.D. Schock Company (WDSCO) now has the increased capability to assist airport management to meet their chal-lenges. Even more exciting, the quality and value of the fi rm’s services has never been greater.

For more than 23 years, WDSCO has provided airports professional consulting and program management services. Primary services include noise attenuation for both residential and commercial structures, land acquisition and condemnation support services, relocation planning and assistance, aviation easement acquisition, purchase assurance and property management. In addition, WDSCO provides overall program administration for all of its primary services, including program policy and procedures development, community relations outreach, and FAA grant application assistance. The fi rm even extends its expertise to assist other clients such as highway departments of trans-portation (DOTs), utility/energy companies, public housing authorities, city redevelopment projects, and more.

WDSCO employs a staff of more than 65 full-time professionals, who bring a broad range of executive level airport and airline management expertise applicable to the unique operational needs of today’s airport managers. The fi rm is managed by a board of directors made up

of former airport directors, airline executives and state department administrators. This combined experience makes WDSCO a leader and innovator in its fi eld, especially in the implementation of airport Part 150 land use measures. The fi rm is recognized nationally by the Federal Aviation Administration (FAA) and the Department of Transportation (DOT) for its knowledge, extensive experience, and professional reputation.

In April 2009, WDSCO acquired GEO-Jobe GIS Consulting, Inc. (GEO-Jobe), a full-service Geo-graphic Information Systems (GIS) and Global Positioning Systems (GPS) consulting fi rm. Since 1999, GEO-Jobe has been the Southeast’s pre-mier provider of GIS custom applications and GPS mapping solutions. From basic mapping to full blown software development, GEO-Jobe implements successful GIS and GPS digital mapping applications for local governments, utility companies, public safety and emergency management agencies, universities, and now, airports. A technology-based fi rm, GEO-Jobe offers the tools and services to take airports through every step of a GIS implementation, in-cluding ArcGIS Server Implementation, custom software development, geodatabase design and migration, GIS programming, CAD to GIS data conversion, internet (web-based) mapping, GPS fi eld data collection, and GIS/GPS software/equipment instruction and training. The fi rm is an ESRI-authorized business partner, consultant, reseller and trainer, and an authorized Trimble Survey and GPS products dealer. In addition, WDSCO’s airport GIS services address all of the new FAA guidance and specifi cations for airport surveying, data collection and GIS data submission.

By integrating GEO-Jobe as the GIS Division of WDSCO, the fi rm has expanded its services to airports as well as enhanced the value of all of its primary services. Together, the two fi rms offer a broad range of experience in airport and aviation management and GIS/GPS application development. WDSCO now offers airports full-service GIS consulting and custom GIS/GPS software development with a focus on assisting airport operators with their airfi eld lighting, airport layout planning, capacity and capital planning, environmental assessments, facilities and property lease management, land acquisition, noise land inventory, noise monitoring and modeling, pavement/concrete management, security and risk monitoring and other day-to-day airport planning, information, and management activities.

WDSCO is headquartered in Nashville, Tennessee, and has offices located throughout the U.S. Please visit the company websites at www.wdschockco.com and www.geo-jobe.com.

Prepared by Michael J. Rowland, Director Marketing & Corporate Development

W.D. SCHOCK COMPANY, INC.

1420 Donelson Pike, Suite A-18Nashville, TN 37217Tel: (615) 399-0585Fax: (615) 365-1184E-mail: [email protected]: www.wdschockco.com

M E M B E r s P o t l i G H t a c c E x E c u t i v E M E M B E r

9www.ACConline.org

Each time a commercial airliner pulls into a gate, the aircraft will make two service connections: a 400Hz cable and a Pre-Conditioned Air (PCA) hose. For over 40 years,

these two ancillary pieces of ground support equipment have supplied grounded aircraft with electrical power and have provided conditioned air for the cabin interior.

INET has a proud history of being at the fore-front of new technology applications to increase effi ciency for 400Hz ground power systems and practical fi xed pre-conditioned air.

As a division of Teledyne Industries until 1992, the company pioneered the development of modern fi xed 400Hz ground power and cabin conditioning methods for commercial and mili-tary aircraft. Purchased by MagneTek, Inc. in 1992, the company extended its ramp system leadership to the integration of its equipment into passenger boarding bridges and remote digital monitoring/control systems.

In November 1994, the U.S. operation as well as its European subsidiary was purchased from MagneTek by the senior airport division management team, but reclaimed the original INET name. This transition was made while maintaining continuity of all key management,

technical, and marketing personnel. The INET Airport Systems Inc. of today is a team of expe-rienced experts dedicated to the supply, design, and construction of specialized airport systems centered around the aircraft parking position, yet continually innovating through selective global partnerships to expand its capabilities to total apron and airport operations.

With increased emphasis on energy conserva-tion via reduction of power consumption, more consultants and airports are insisting on central pre-conditioned air systems for any project in excess of ten gates. These gate systems can be integrated into the airport’s Central Utility Plant to provide even more energy effi ciencies. Data has concluded that the energy savings, lower maintenance costs, longer operational life, built-in redundancy, and LEED credits make the central 400 Hz and PCA systems the preferred alternative to point-of-use equipment.

Additionally, the Voluntary Airport Low Emission (VALE) Program has provided new funding opportunities which do not interfere with other entitlement programs, to provide necessary funding to airports for the purchase of “emission-reducing” types of equipment. Numerous studies have been conducted that demonstrate the advantages to both airports (lower emissions) and airlines (less fuel consump-

tion) to mandate the use of this equipment. INET is and has been at the forefront in provid-ing airports with the required equipment to implement this green initiative. Presently, INET Airport Systems is the only global company which manufactures and supplies either central motor generator or solid state 400Hz equipment and either central system or point-of-use pre-conditioned systems, in both fi xed and mobile equipment.

INET is a certifi ed MBE/ DBE contractor and is continually expanding its certifi cation status nationwide. So, when you are confronted with a systems integration challenge, contact INET Airport Systems for the solution.

Prepared by Tom Tatham, General Manager,INET Airport Systems, Inc.

INET AIRPORT SYSTEMS

4111 North Palm Street Fullerton, CA 92835

Tel: (714) 888-2700Fax: (714) 888-2727

E-mail: [email protected] web: www.inetas.com

a c c a s s o c i a t E M E M B E r M E M B E r s P o t l i G H t


4th Annual ACC/AAAE Information Technology at Airports Conference

More than 60 attendees were present at the 4th Annual

ACC/AAE Information Technology at Airports Conference in

Miami, FL. The conference featured IT case studies, trends and

discussion of IT hot topics such as Wayfinding, GIS, Biometrics

and CUPPS.

USTDA U.S. & Sub-Saharan Africa: Partners in Aviation Conference

ACC President Paula Hochstetler provided

remarks at a luncheon at the U.S. and

Sub-Saharan Africa: Partners in Aviation

Conference in Atlanta, Georgia. Developed

by the U.S. Trade and Development Agency

(USTDA), in cooperation with the U.S.

Department of Transportation, Federal Aviation

Administration (FAA), Transportation Security

Administration (TSA), the U.S. Department of

State, and the U.S. Commercial Service, the

conference brought together Sub-Saharan

Africa (SSA) aviation stakeholders with U.S.

aviation suppliers to strengthen strategic and

commercial relationships between the aviation

industries of SSA and the U.S.

o u t & a B o u t W i t H a c c

SAGA Press Conference

ACC President Paula

Hochstetler took part in a

press conference at the ACI

Annual Conference in Austin, Texas to announce the unveiling

of the Sustainable Aviation Resource Guide and Database.

The Sustainable Aviation Resource Guide, which includes

the database, was developed by the Sustainable Aviation

Guidance Alliance (SAGA), a coalition of aviation associations

that includes ACC. The searchable database includes over

960 individual sustainability practices. The well-attended

press conference addressed various aviation media outlets,

including Airport Improvement and Airport Business magazines,

and was followed by a demonstration of the database by ACC

members Carol Lurie with Vanasse Hangen Brustlin, Inc. and

Magda Pavlak with CDM, as well as Gene Peters with Ricondo

& Associates. For more information about this SAGA initiative,

visit www.airportsustainability.org.

Annual Conference in Austin, Texas to announce the unveiling

A new group has formed to support gays and lesbians in the airport industry. The Gays and

Lesbians in Aviation (GALA) aims to serve as a networking group for gay and lesbian aviation

professionals from airports, consultants, airlines, other businesses and organizations in airport

development. Prominent leaders including Elaine Roberts (Columbus), John Martin (San Francisco)

and Evan Futterman (Futterman Consulting) are founding members of the organization. If you are

interested in participating or learning more, e-mail [email protected].

Gays and Lesbians

in Aviation Group

Formed

11www.ACConline.orgwww.ACConline.org 11

FOR PROGRAM INFORMATIONContact T.J. Schulz, ACC, at (703) 683-5900, or e-mail [email protected].

FOR EXHIBIT AND SPONSORSHIP INFORMATIONContact Jason Glei, AAAE, at (703) 824-0500, Ext. 101, or e-mail [email protected].

FOR REGISTRATION AND HOTEL INFORMATIONContact Brian Snyder, CMP, AAAE, at (703) 824-0500, Ext. 174, or e-mail [email protected].

VISIT OUR WEB SITES FOR EVENT BROCHURE & UPDATES:

www.ACConline.org • www.aaaemeetings.org

Be sure to join your colleagues

at the preeminent airport technical

event of the year.event of the year.event of the year.

FEBRUARY 24 – 26, 2010 Omni Hotel at CNN Center // Atlanta , GA

PLENARY SESSION B: The Airline Perspective with: Delta Airlines, Air France and others.

PLENARY SESSION A: The Airport Perspective with: The City of Atlanta Department of Aviation, Port Authority of NY&NJ, Aspen-Pitkin County Airport and others.

TRACK A // Planning HOST: Damon Smith — Mead & Hunt [email protected]

A Whole New Airport Layout Plan — Airports GIS, eALPs, »and FAA ACs 150/5300-16,17 & 18 Land Use Issues/Controls — Beyond the RPZ and into the »Community — Be a Better NeighborAirspace Procedures & NEXTGEN — Prepare for Emerging »Technology OpportunitiesStakeholders — Planning is Not Just for Airport Sponsors — »Win Support with Education Planning for Wildlife Management and the Environment — »Plants & Animals Don’t Follow Orders

Track B // Terminal/LandsideHOST: Amy MacPhetres — Jacobs Consultancy [email protected]

Passenger or Customer? — Be the Traveler’s Choice »Innovations in Securi-IT-y »Where’s the Beef? Maximizing Revenue »Terminal Upgrade Speed Round »ACRP Innovations and Advancements in Terminal and »Landside Planning

Track C // Airside/EngineeringHOST: Chris Coons — RW Armstrong [email protected]

Unique Pavement Solutions »FAA AC 150/5300-16, 17 & 18 — Impacts to the Engineering »CommunityRunway Safety: How Technology Can Help »Did We Design for THAT? Flexibility in Airfi eld Design — »Balancing Planning Ahead vs. Addressing Today’s NeedsMoving Forward on the AOA »

Track D // PM/CMHOST: Tracie Blaser — Gresham Smith & Partners [email protected]

Construction in an Operational Airport / Terminal »New Directions in Project Defi nition / Project Delivery »Project Success and Clients — Working Together »Minimizing Change Orders — BIM Utilization »Stimulating Projects — Get on the Fast Track »

Track E // SustainabilityHOST: Suzanne Geckle — CH2M HILL [email protected]

Can Airports Meet LEED Goals? »Funding Green Initiatives »Lasting Passenger Friendly Sustainable Materials »Sustainable Airfi elds »IT Controls to Reduce Costs and Emissions »

SUPERTRACKS HOST: Don Bergin — Blast Defl ectors, Inc. [email protected]

Reconstructing, Renovating & Revitalizing in »Volatile Economic Times We’re All In This Together: USA / China »Collaboration

11


Amy E. Peters, Vice President, Conf. Dev. & Member ServicesEmail: [email protected]; www.aci-na.orgAirports Council International-North America (ACI-NA) is the largest of the six worldwide regions of Airports Coun-cil International (ACI), the authoritative voice of air carrier airports worldwide. ACI-NA airport members enplane 95% of all domestic and virtually all of the international airline passenger and air cargo traffic in North America.

Tom Kelty, New Business Development ManagerE-mail: [email protected]; www.adb-airfield.comADB Airfield Solutions (ADB) is the world’s leading airfield technology company on the ICAO and FAA markets pro-viding advanced, integrated and sustainable solutions for visual guidance. With a world wide presence for more than 60 years, ADB differentiates itself by offering an innova-tive portfolio and expertise which sets standards in safety, performance and quality that is supported by unparalleled levels of customer service. ADB is trusted as the preferred partner for airside operations.

Sonya Shackleford, Acting Business ManagerE-mail: [email protected]; www.amac-org.comAMAC is a national, non-profit, trade association dedicated to promoting the full participation of minority-owned, woman-owned and disadvantaged business enterprises in airport contracts and employment opportunities.

Steve Blue, Program Manager, Email: [email protected] Federal Aviation Administration’s Aeronautical Navi-gation Services Directorate and Federal Aviation Admin-istration Academy partnership program provides a full scope of instrument flight procedures training. This train-ing focuses on all aspects of flight procedures, covering everything from short overviews to detailed training on RNAV/RNP. Much of this training can be customized to accommodate specific needs of the state aviation/airport consultant community.

Chris Brooks, VP – Specialized MarketsEmail: [email protected]; www.flinttrading.comManufacturer and supplier of durable preformed thermo-plastic pavement markings for landside (PreMark) and airside (AirMark) application.

Claudio E. Manissero, Sales & Marketing ManagerE-mail: [email protected]; www.fmc.comFMC Corporation, Lithium Division, markets materials and expertise to mitigate Alkali Silica Reactivity (ASR) effects in pavements and concrete structures such as spalling, popouts, and misalignment due to expansion in concrete. In pavements ASR leads to FOD. Technologies can prevent this reaction in fresh concrete and mitigate the effects in hardened concrete.

Bob Fulkerson, Marketing & Sales ManagerE-mail: [email protected]; www.jbtc.comJBT AeroTech, Jetway Systems®, a business unit of JBT Cor-poration, is a world leader in the manufacture and supply of airport equipment. We provide integrated solutions for region-al airports or global hubs: Jetway Passenger Boarding Bridges, JetPower® 400 Hz converters, JetAire® Pre-Conditioned air unit, Potable Water and Baggage chute systems.

Jack Henderson, Reg. Sales Manager, Southern USE-mail: [email protected]; www.liber-tyairportsystems.comLiberty Airport Systems provides state-of-the-art, uniquely secure end-to-end airfield lighting systems for major hub and regional facilities. With over 200 years combined experience engineering and implementing airfield light-ing power and control systems, Liberty brings to bear an unmatched depth of working knowledge. Liberty Airport Systems produces turnkey airfield lighting systems of any size, as well as component systems including power, control and monitoring, and security. Lifecycle services follow our systems from design and implementation, through mainte-nance and advanced support, to growth management and expansion planning.

Ed Biggs, Sr. Market Manager – Aviation & AssemblyEmail: [email protected]; www.milliken.comMilliken & Company is the World’s most forward-thinking textile company. A global company, Milliken has modular carpet manufacturing located in the USA, England, Japan and Australia. MilliCare-The Total Contract Carpet Care system.

Mr. Gary S. Loff, VP Of SalesEmail: [email protected], www.superawos.com Potomac Aviation Technology Corporation provides the first truly affordable Automated Weather Observing Sys-tems (AWOS). Potomac Aviation designs and distributes the SuperAWOS, which is the only aviation and airport specific AWOS. Simpler to buy, install and maintain than any other AWOS, Potomac Aviation’s SuperAWOS provides real time weather including certified visibility and altimeter and automated UNICOM functions available at all times. Approved for all flight operations. AIP, State Grants eligible and on GSA Contract.

Charlotte Peed, Senior ConsultantE-mail: [email protected] Systems provides a full range of security inspec-tion solutions for Baggage and parcel Inspection, Cargo and Vehicle Inspection, Hold Baggage Screening, and People Screening. Rapiscan has installed over 60,000 products in over 50 countries at airports, government and corporate buildings, postal facilities, military zones, sea ports and border crossings.

Ms. Margaret Gochngbok, Regional Account ManagerE-mail: [email protected]; www. transoftsolutions.comTransoft Solutions develops and support innovative and timesaving CAD-based software for engineers, architects, and drafters for their civil and infrastructure design and planning needs. AeroTURN Pro 3.0 from Transoft Solu-tions has revolutionized the way in which airport engineers, planners and operators assess aircraft and service vehicle simulations, jet-blast envelopes, bridge to aircraft slope calculations, and aircraft docking simulations.

EXHIBITORS AS OF 10.31.09

ACC ANNUAL CONFERENC E COMMIT TEE

DIAMOND

PLATINUM

GOLD

SPONSORS AS OF 10.31.09

SILVER

ACC PLAYERS

Committee MembersH.D. Campbell, Campbell & Paris EngineersArmen DerHohannesian, Armen DerHohannesian & AssociatesMichael J. Devoy, RW ArmstrongEvan Futterman, Futterman Consulting, Inc.

ChairBrenda Tillmann, RW Armstrong

Vice ChairMike Floyd, Jacobs

Corey F. Knight, Barge, Waggoner, Sumner & Cannon, Inc. Daniel McSwain, AvTurf LLCEnrique Melendez, Jacobs (Board Liaison)

BIG THANKS to all the exhibitors, sponsors and ACC members for helping to make the ACC 31st Annual Conference & Exposition possible.

November 9 – 11, 2009 L A K E L A S V E G A S N E V A D A

CAGE INC.

13www.ACConline.org

The Airport Consultants Council (ACC) Aviation Award of Excellence recognizes the contributions of an individual, group, or organization to the airport and aviation industry.

While consultants are not eligible for the award, candidates whose contributions qualifying them for nomination were completed within two years of their nomination and who have subsequently become consultants will be eligible for consideration.

Past RecipientsPast recipients of the prestigious ACC Aviation Award of Excellence include:

Edmund S. “Kip” Hawley, Former TSA Administrator

Gina Marie Lindsey, Executive Director, Los Angeles World Airports

James Bennett, A.A.E., President and Chief Executive Officer, Metropolitan Washington Airports Authority

Frederick W. Smith, President & CEO, FedEx Corporation

Jeffrey P. Fegan, CEO, Dallas/Ft. Worth International Airport

James C. DeLong, AAE, former Director of Aviation, Louisville Airport Authority

Lydia Kennard, Former Executive Director, Los Angeles World Airports

Norman Y. Mineta, DOT Secretary

Bombardier Aerospace, Manufacturer of the CRJ Series Regional Jet

Bud Shuster, Chairman, House Committee on Transportation and Infrastructure

James L. Oberstar, Ranking Democratic Member, House Committee on Transportation and Infrastructure

Donald D. Engen, Director, National Air and Space Museum

Gordon Bethune, Chairman and CEO, Continental Airlines

Aviation Week Group, Publishers of Aviation Daily & Airports

Leonard L. Griggs, FAA Assistant Administrator for Airports

Herbert D. Kelleher, President, Chairman of the Board and CEO, Southwest Airlines

Federico F. Peña, Former Mayor, City of Denver

Samuel K. Skinner, DOT Secretary

Positions listed are those held at the time that the award was presented

the 2 010

ACC Aviation Award of Excellence

Call FOR NOMINATIONS

PLEASE submit YOUR NOMINATIONS by January 29, 2010

TO: Gloria Bender, ACC 2010 Awards Committee Chair, Phone: (817) 359-2954; Fax: (817) 359-2959E-mail: [email protected]

NominationsPlease use the following format when submitting nominations:

NOMINEE — Identify the individual with title, organization, contact information (address, phone, fax and e-mail)

NOMINATOR — Identify the individual submitting the nomination with title, organization and contact information

REASON/QUALIFICATIONS — Describe in 150 words or less the nominee’s contributions that warrant their selection for the award. Focus on the award purpose and selection criteria when describing the nominee’s contributions. Additional supporting materials are not required.

Award PresentationThe ACC Aviation Award of Excellence will be presented at the ACC 32nd Annual Conference & Exposition, November 8 – 10, 2010 at the Sawgrass Marriott Resort in Ponte Vedra Beach, Florida.

Selection CriteriaThe selection of the recipient is based upon the extent to which their contributions meet the following criteria:

■ Are significant, visionary and/or innovative;

■ Have advanced the airport and aviation industry and

■ Are a public service.

The Airport Consultants Council A N N O U N C ES …


New Members

14

a c c M E M B E r s

MR. WINFIELD (WIN) BEYEA has joined Landrum & Brown (L&B) as a Vice President in the Facilities and Operations Division. Most recently in a similar position with CH2M HILL, Beyea brings over 36 years of experience in airport master planning and terminal planning at over 100 airport projects throughout the U.S. and abroad. An aviation veteran, Win has worked extensively in Europe and the Pacifi c Rim, as well as throughout the United States. Additionally, JAMES G. WALSH, A.A.E. has joined L&B as Vice President of the fi rm’s Business and Commercial Planning Division out of the fi rm’s Washington, D.C. offi ce. Jim served as Deputy Executive Director and Chief Financial Offi cer at Baltimore Washington International Thurgood Marshall Airport (BWI) overseeing all fi nancial, commercial, marketing, public affairs, customer service and human resource operations and brings to L&B over 21 years of airport, airline and advisory experience.

MR. RON PECKHAM has been appointed to serve as chief executive offi cer of the C&S Companies. Peckham has served as president of the C&S Companies for the past year. Peckham joined C&S more than 25 years ago and besides executive positions, has served as service group manager for C&S’s airport services group, leading the growth of the fi rm’s airport business from just a few million dollars a year to well over $10 million.

MR. MARK KUTTRUS has been named a Senior Aviation Planner with Parsons Brinckerhoff (PB). Mr. Kuttrus has more than 20 years of experience in planning and project manage-ment for some of the busiest airports in the world, including major hub airports such as Baltimore/Washington International Thurgood Marshall, Hartsfi eld-Jackson Atlanta International, Minneapolis-St. Paul International/Wold-Chamberlain and Philadelphia International. He also conducted one of the fi rst pilot programs for a safety management system at Daytona Beach International Airport. In his new position, Mr. Kuttrus will work out of the fi rm’s Morrisville, North Carolina offi ce and be responsible for aviation planning work for PB’ s current clients as well as the overall growth of the fi rm’s aviation planning services.

On the Move

A PBS&J and RS&H team was recently selected by Broward County for the Fort Lauderdale-Hollywood International Airport (FLL) expansion of Runway 9R/27L project. The project, an ambitious, $810 million capital improvement effort, is signifi cant because it involves the complete reconstruction of the south runway at FLL, expanding it from 5,000 feet to over 8,000 feet in length. The complex project will span an active federal highway and railroad, require large amounts of fi ll, and the runway tunnel and taxiway bridges will be bid out as separate design-build projects. The team credits its success to a proactive pre-positioning approach and extensive experience with both Broward County and the industry.

team was recently selected by Broward County for the Fort Lauderdale-Hollywood International Airport (FLL) expansion of Runway 9R/27L project. The project, an ambitious, $810 million capital improvement effort, is signifi cant because it involves the complete reconstruction of the south runway at FLL, expanding it from 5,000 feet to over 8,000 feet in length. The complex project will span an active federal highway and railroad, require large amounts of fi ll, and the runway tunnel and taxiway bridges will be bid out as separate design-build projects. The team credits its success to a proactive pre-positioning approach and

RS&H team was recently selected by Broward County for the Fort Lauderdale-Hollywood International Airport (FLL) expansion of Runway 9R/27L project. The project, an ambitious, $810 million capital improvement effort, is

And the Winner Is…

Executive MemberEL-MANSUR ATELIER CO. Mr. Babetunde Oyekola17 Parakou Crescent Wuse IIAbuja, FCT NigeriaTel: +234 803 590-0122Email: [email protected] Web: www.elmansuratelier.comEl-Mansur Atelier Company joins ACC as an executive member. El-Mansur Atelier is a multi-disciplinary firm based in Nigeria, offering consultancy services in architecture, engineering and planning in the construction and aviation industries. Their unique approach and experience is particularly suited to challenging projects with tight budgets in the developing world.

Associate MembersBARICH, INC.Mr. Rick Beliotti, Vice President25 South Arizona Pl., Suite 200Chandler, AZ 85225Tel: (480) 361-4122Email: [email protected]: www.barich.net Barich, Inc. joins ACC as an Associate Member. Barich is an Information Technology Corporation pioneering key industry research and advance-ments within the air transportation industry, such as common use technologies. Many airports struggle with how to maximize use and return on investment of these technologies. Barich, Inc. understands airports and is dedicated to providing program and project management and infrastruc-ture design solutions that resolve these issues and further the mission of their clients.

FIVE STAR AIRPORT ALLIANCEMr. Mike Malkowski, President/CEO1625 W. Crosby Road, Ste. 100Carrollton, TX 75019Tel: (972) 389-6200Email: [email protected] Web: www.fivestaraa.com Five Star Airport Alliance (FSAA) is the largest privately held turnkey American owned and oper-ated airport baggage handling systems and termi-nal services provider in the United States. FSAA was formed to provide airports and airlines with a single source of contact for their systems design, product manufacturing, software/controls imple-mentation, installation and maintenance needs.

ACC Updates Between September and November 2009, ACC released e-mail supplements to this publication. These supplements are also available at www.ACConline.org.

LN-09-10: (SEPTEMBER 28, 2009)Congress Approves Three-Month Extension for FAA; Senate Leadership •Supports Action on FAA Reauthorization Bill This YearFY 2010 DOT/FAA Spending Bill Pending•

LN-09-11: (OCTOBER 22, 2009)Congress Approves Final FY 2010 DHS Appropriations Bill•

ACC UpdatesBetween September and November 2009, ACC released e-mail supplements to this ACC UpdatesBetween September and November 2009, ACC released e-mail supplements to this ACC Updatespublication. These supplements are also available at www.ACConline.org.

Legislative News

15www.ACConline.org 15www.ACConline.org

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PRIVATE InVEsTmEnT continued from page 1

Air Terminal, composed of airport operator Schiphol USA, real estate developer LCOR Inc. and investment banking firm Lehman Brothers. It replaced the old International Arrivals termi-nal and, to this day, is one of the nation’s largest private airport development projects.

There are similar examples at major airports across the country. According to the National Council for Public-Private Partnerships, there are six key ingredients for an effective PPP:

Political leadership;•Public-sector involvement; •A well-conceived plan; •A dedicated Income stream; •Communication with stakeholders; •andSelection of the right partner. •

Complete PrivatizationAlternatively, privatization can be complete, like the new airport in Branson, Mo., which opened to air traffic in May 2009 and is the nation’s first privately-funded commercial airport. The project was planned, designed, built and is being operated by a private developer (Branson Airport LLC) at a cost of $140 million. It was funded through the use of tax-exempt bonds and private equity. Because of the importance of air service to the local Branson economy and because the community is able to generate increased tax revenues from new tourists arriving by air, the airport receives $8 for each new deplaning pas-senger from the City of Branson, subject to an

annual cap. While still in its infancy, this airport privatization appears to be successful.

Overall, there have been and continue to be several opportunities for private investment to manifest themselves at public airports here in the U.S., including:

New airline- or alliance-specific •terminals;Partial flotation as PPP for part or all •of airport;New structured parking facilities;•Consolidated rental car facilities;•Cargo facilities; and•Hotel and conference facilities.•

Still, not all privatization efforts are suc-cessful, as demonstrated by the experience in Indianapolis. The Indianapolis Airports Authority issued a lease to BAA USA to privately operate Indianapolis International Airport. In just over 10 years, the lease was terminated and operations reverted back to the Authority since the arrangement was not generating enough revenue. Neither BAA USA nor the Airports Authority received the benefits they had anticipated.

FAA Privatization Program — Mixed ResultsMeanwhile, in 1997 the FAA established a pilot program to approve a limited number of airport privatizations. The program was created by Congress to explore privatization as a means of

generating access to various sources of private capital for airport improvement and develop-ment. The pilot program authorizes the FAA to permit up to five public airport sponsors to sell or lease an airport and to exempt the sponsor from certain federal requirements that could otherwise make privatization impractical. Private companies may own, manage, lease and develop public airports. In return, the owner or lease holder would be exempt from repayment of federal grants, return of property acquired with federal assistance, and from the obligation to use proceeds from the airport’s sale or lease exclusively for airport purposes.

The pilot program met with limited success for varying reasons.

Chicago Midway International Airport, Chicago IL > In 2006 a preliminary application was submit-ted. The winning bidder was unable to obtain financing. The solicitation was cancelled.

Niagara Falls International Airports, Niagara Falls, NY > In 2001 a preliminary application was submitted, then withdrawn.

Rafael Hernandez Airport, Aguadilla, PR > In 2001 a preliminary application was submitted, then withdrawn.

Stewart International Airport, Newburgh, NY > In 2000 an application was accepted, but the airport was subsequently acquired by PANYNC.

Airline consortiums have proven to be a suc-cessful business model in the common-use environment, where multiple airlines share facilities, equipment and services that directly affect their operation. Shared commodities may include common-use passenger terminals, airline operational areas, VIP lounges, baggage systems, IT systems, passenger loading bridges and other gate systems, ramp equipment, fuel systems, passenger service contracts and operations and maintenance contracts. The implementation of an airline consortium can benefit the airport by facilitating development, reducing costs, and providing uniform and con-sistent management of the airline operational systems.

Regardless of the exact scope and respon-sibilities, the airline consortium provides a central point of contact between the airport and the airlines. This generates relationships and fosters communications that are funda-mental to the consortium’s success. It has been shown that airline consortiums are an excellent mechanism for controlling budgets, reducing costs, exceeding performance requirements, and providing transparent financial and perfor-mance reporting.

An airline consortium is a legal entity that takes the form of a corporation, limited liabil-ity company (LLC) or limited partnership (LLP), depending on the local laws and the particular

One of the most successful public-private partnership approaches in the United States is an airline consortium, where the airlines manage key func-

tions at an airport facility with the consent and cooperation of the airport.

Under this approach, the airlines form a special purpose company – the airline consortium. The airport and airlines define scope and responsi-bilities for the consortium, and the consortium secures the services of an independent man-agement team to execute those responsibilities. This approach allows both the airport and air-lines to focus on their core business activities.

By Paul Demkovich, Vice President, AvAirPros

Airline Consortiums: A Public-Private Partnership Option

c o v E r s t o r y

www.ACConline.orgwww.ACConline.org 17

The pilot program has been less than successful due to a number of limitations documented by a 2004 FAA report:

Local governments are reluctant to •give up control of their airport; Airlines have traditionally opposed •privatization based on a perception that the loss of governmental control would raise costs; The public sector has access to tax •exempt and other low cost fi nancing options that may not be available to the private sector; and Other than Midway, these sample •airports were underutilized and the owner was looking to supplement funding for their capital needs.

Nevertheless, the FAA pilot program remains in effect for complete airport privatizations, and, as the economy grows, more applications could be expected. In fact, FAA recently gave approval to the Louis Armstrong International Airport to solicit bids from entities for a long-term lease

arrangement to operate the airport.

Domestic vs. International Privatization A handful of key factors have curtailed the need for privatization here in the United States, includ-ing access to capital to fund airport development projects and the availability of experienced, competent entities to operate complex and sophisticated enterprises like airports. In the U.S., wholesale privatization has not taken hold primarily because most airports are operated by governmental units or by authorities with good bond ratings. As mentioned earlier, these entities can issue tax-free bonds — the cheapest capital that can be obtained. Also, with so many major domestic airports, there is a bounty of talented career airport professionals who can effi ciently operate U.S. airports.

Internationally, many governmental units op-erating airports cannot issue tax-free bonds or have limited bonding capacity. They must turn to private markets for access to capital.

Many countries do not have national funding programs like our AIP program to help with funding. Further, with very few major airports in many countries, the availability of the diverse skill sets required to operate major airports may be limited. As such, privatization is more prevalent and has met with more success globally (see sidebar).

Moving ForwardMany airports have delayed projects due to the current global recession, but the need and place for private investment in airports will grow clearer as the industry emerges from these diffi cult economic times. The FAA predicts in its latest forecast that one billion passengers will fl y by 2021, and the capacity does not exist at airports to handle these travelers. Clearly, more resources will be needed to meet future needs.

A multi-year FAA reauthorization bill with increased AIP and PFC funding will provide a critical source of funding, but it will not be enough. While there have been successful models of airport privatization in the United States, they have primarily been in the form of various public-private partnership and concession ar-rangements. Meeting our future capital needs may require the industry to revisit privatization in the United States, or at least explore op-portunities to make privatization arrangements more pervasive and successful.

situation. During the formation process, the consortium adopts membership, officer and voting policies. To conduct business, the con-sortium will have the ability to hold a variety of contracts including leases, professional service agreements and operation and maintenance services contracts. The consortium may even enter into a project financing arrangement. The consortium will be required to collect fees and charges from the airlines that use its facilities, equipment and services. To achieve this, the consortium will have to establish its own rates and charges methodology.

1990 – 2000 2000 – 2008London City Airport Perth Airport

Athens International Airport Auckland Airport

Melbourne International Airport Bangalore International Airport

Rome International Airport Zurich Airport

Regions of Mexico Paris Airports

EX AMPLES OF INTERNATIONAL AIRPORT PRIVATIZ ATION

AIRLINE CONSORTIUMS IN OPERATION TODAY INCLUDE:

Atlanta » — Atlanta Airlines Terminal Corporation (AATC): ATL Central Passenger Terminal Complex O&M

Chicago » — CICA Terminal Equipment Consortium (CICA TEC): ORD International Terminal airline equipment O&M

Detroit » — Detroit Airlines North Terminal Consortium (DANTeC): DTW North Terminal airline equipment O&M

Los Angeles » — LAXTEC Corp.: LAX Tom Bradley International Terminal airline equipment O&M

Los Angeles » — LAX Shared Use Lounge Company (LAXSUL): LAX Tom Bradley VIP Lounge O&M

Chicago » — Midway Airlines Terminal Consortium (MATCO): MDW airline equipment O&M

San Francisco » — SFO Terminal Equipment Company (SFOTEC): SFO International Terminal airline equipment O&M

New York » — Terminal One Group Association (TOGA): JFK Terminal One O&M


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Looking Back…

Upcoming WEBINARS in 2010 include:

Safety Management Systems »

Pavement Design for Executives »

Sustainability at Airports »

Updates on Aviation Legislation and »Regulations — FAA & TSA

For more information e-mail T.J. Schulz, ACC: [email protected].

s P o t l i G H t a c c i n s t i t u t E

New!

For more information e-mail T.J. Schulz, ACC

LIVE ONLINE TRAINING Seminars for 2010the acc institute is enhancing training opportunities with new e-learning programs in the form of webinars and online training. acc members will soon enjoy more convenient access to excellent on-going training — by the experts, for the experts.

the 2009 ACI/ACC/AGC AIRPORT PROJECT DELIVERY SUMMIT in savannah, Ga had more than 60 participants. the program was well received and included substantial interaction among airport development experts.

the ACC AIRPORT PAVEMENT DESIGN EVALUATION WORKSHOP was held in Dallas in august with 31 enrollees. this course provided detailed instruction on changes made to faa’s design circulars.

the 4th annual A A AE/ACC IT AND SYSTEMS CONFERENCE was held on october 25 – 27 in Miami. More than 60 registered for the event and the program covered new it trends and the role of it in common use facilities.

Looking Ahead…ACC/ACI-NA/FAA Airport Planning Redefined

DECEMBER 7 – 9, 2009 // K ANSAS C IT Y, MOextending beyond the Master Plan advisory circular, this course provides invaluable insights that will enable those involved in planning airport improvements — from small near-term projects, to larger long-term projects — to be more effective and better prepared in today’s environment.

ACC/ACI-NA/FAA NEPA WorkshopDECEMBER 9 – 10, 2009 // K ANSAS C IT Y, MOthis updated course goes beyond the basics and will teach participants how to successfully plan and complete the nePa process for a variety of airport development actions.

was held on october 25 – 27 in Miami. More than 60 registered for the event and the program covered new it trends and the role of it was held on october 25 – 27 in Miami. More than 60 registered for the event and the program covered new it trends and the role of it was held on october 25 – 27 in Miami. More than 60 registered for the event and the program covered new it trends and the role of it

ACI/ACC/AGC AIRPORT PROJECT DELIVERY SUMMITin savannah, Ga had more than 60 participants. the program was well received and included substantial interaction among airport

ACC AIRPORT PAVEMENT DESIGN EVALUATION was held in Dallas in august with 31 enrollees.

this course provided detailed instruction on changes made to

A A AE/ACC IT AND SYSTEMS CONFERENCEwas held on october 25 – 27 in Miami. More than 60 registered for




in savannah, Ga had more than 60 participants. the program was

20092009200920092009

in savannah, Ga had more than 60 participants. the program was


The new FAA Airport Compliance Manual can

be found at http://faa.gov/airports//publications/

orders/compliance_5190_6/pdf.

On September 30th FAA’s Office of Airport Programs released the long-awaited revision of its FAA Airport Compliance Manual,designated FAA Order 5190.6B. This version, a massive 691 pages containing some 23 chapters and 28 appendices, replaces the original 83-page document issued exactly twenty years ago.

Technically, the Manual is a guidance document to help FAA personnel monitor compliance by airport sponsors with the contractual commitments (i.e. grant assurances) those public agencies have made in accepting federal airport development, noise abatement or planning grants, or in receiving federal real or personal property.

More practically, the Manual is a clear, accessible, comprehensive compendium of most of the various FAA airport program requirements that airport staffs have to fulfill. As such, it’s a valuable source of basic, descriptive information to familiarize airport managers — and their airport consultants — with the limitations Congress has imposed through the years on airports that are receiving federal grants or surplus property.

Helpful Overview of FAA RulesMany new topics are explained corresponding to the many new FAA airport programs and policies that have been added over the past two decades: details of Airport Revenue Diversion law and policy (1999 & 2008); current inter-pretations of Airport Rates and Charges Policy (1996); rules and regulations under the Airport Noise and Capacity Act (1990), describing what airport operators can (and mostly can’t) do to regulate aircraft operations for noise abate-ment; and opportunities for Airport Privatization (1996). Given the current weak budgets at many airports, some airport commissioners are ask-

ing whether a private for-profit company could operate all or certain functions of an airline-served airport more cost-effectively than public employees.

The revised Manual also describes many tradi-tional FAA requirements that are mandated by those 39 grant assurances: What does keeping an airport “open and available” mean? How are defensible “minimum standards” for commercial aeronautical users set? How and why does FAA currently review airport agreements with airlines and other aeronautical leases?

Airline Incentive Program Guidance Omitted The new Manual does have two noteworthy omissions. The revised version has only a few sentences of guidance about the incentive programs for new airline service that more airport sponsors are now adopting. FAA plans to issue a separate booklet on this topic, Air Carrier Incentive Program Guidebook — A Reference for Airport Sponsors, by the end of 2009. The requirements for airline-served airport certification (FAR Part 139 Regulation) are excluded because FAA’s primary leverage lies in threatening to lift the certificate, not withholding eligibility for further airport grants.

When An Airport’s Compliance is Challenged Lastly, the new document describes how FAA’s compliance program operates when an airport sponsor’s action is challenged. Airport managers — and some airport consultants — should know the basic protocol. Under the FAR Part 13 Regulations, almost any person can file an informal complaint with FAA alleging that an airport sponsor is violating its written federal commitments, and FAA’s regional staff must investigate. Since 1996, FAA has

also had a formal administrative complaint process solely for airport compliance issues (FAR Part 16 Regulation). As described in the Manual, an affected complainant (generally an FBO) can require FAA to make findings, reviewable by Federal Circuit Courts, as to whether, for example, an airport is guilty of

“unjust economic discrimination” against the complainant or has given an “exclusive right” to another aeronautical user at the airport.

FAA can rule on the reasonableness of air-port rates and charges imposed on airlines under Part 16 or, alternatively, an airline or airport can have the parent U.S. Department of Transportation make a judicially-reviewable formal determination in 120 days under the so-called DOT “rocket docket” (DOT Part 302 Regulation). While these formal processes require lawyers to prepare briefs, airport con-sultants often provide the factual materials that are the real “evidence” in those proceedings.

Suggestions for Airport Consultants Most airport consulting firms would be wise to print out a hard copy of the 300 pages of the new Manual, skipping the appendices, and letting relevant staff know where that loose-leaf binder will be kept. Employees who advise airport sponsors on matters at all connected to those federal contractual obligations ought to be encouraged to browse through its chapters, just for general familiarity with the content. Even though the Manual is in effect now, FAA will accept comments (for corrections and clarifications, not policy changes) until March 31, 2010.

FAA’s Revised Airport Compliance Manual:A Good Resource for Consultants

By Jack Corbett, Law Firm of Spiegel & McDiarmid LLP

a F t E r a l l

airportconsulting winter 2010

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