spring 2012 airportconsulting

Spring 2012

ConsultingA Publication of the Airport Consultants Council

See Privatization on page 16

Can airport privatization Be SuCCeSSful in the u.S.?

By Louis D. Wolinetz, Infrastructure Management Group, Inc.

Why has the privatization of airports been generating a lot of buzz at conferences and in journals? Certainly, one can look to the pro-

longed economic downturn, which has cit-ies and counties seeking infusions of cash. Regular reports from organizations such as the American Society of Civil Engineers show that America’s infrastructure is dangerously deteriorating. Meanwhile, in Washington, federal funding for airports and infrastructure is likely to be limited due to budgetary issues, leaving airports to identify local sources for capital invest-ments. Have conditions really changed so that airport privatization will be more suc-cessful than in the past?

Despite the excitement, examples of successful airport privatization remain elusive. Since its inception in 1997, the FAA Privatization Pilot Program has had only one success — the Stewart Airport program — and that lasted only nine of a planned 99 years. Branson Airport, developed with private funding outside of the typical grant programs, is reportedly struggling financially. And while optimism reigns in San Juan and other airports in the Pilot Program, all evidence shows that closing the deal will be a monumental task.

The disappointing results of airport privatization in the U.S. is not news — but there has been little examination of why that is the case, and what may be different in the future. In addition, discussion of

privatization in other infrastructure sectors can be instructive.

The Goals of PrivatizationAirport public-private partnerships (or P3s) typically come about for one of the following reasons, and each has its own unique challenges.

Cash Out: Airport sponsors may look for a one-time infusion of funds for other governmental purposes (e.g., Midway, San Juan). These monetizations can be politically controversial, as the public worries about losing control of a valuable asset. Pushback on these transactions have increased after the toll road deals for the

page 12

Photo review of ACC 33rD AnnuAl ACC ConferenCe & exPosition

page 6page 4sPeCiAl feAture: Assisting AirPorts with seCurity teChnology solutions

ConsultAnt PersPeCtive: foreCAsting 2012

# of Acquisitions

2839 46

56 60 6758 51

66 69

93

60 60

85

107

131

180

131

166158

196185

0

50

100

150

200

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

E20

12P

# of Firms Making Acquisitions # of Acquisitions

2 Consulting, Spring 2012

For me, every new year offers a time to focus on financial priorities — both as an individual and as an organization. If you do this at

work, you might start to think about the money your organization spends and how those expenses lead to improved success.

• Dotheseminarsandworkshopsactually improve your talent pool and your client offerings?

• Dotheconferencesgiveyounetworkingopportunities that solidify important connections?

• Dotheworkshopshelppavethewaywith lessons-learned?

• Doyouknowwhichvendorsofferthesolutions your business needs?

• Dothetradeassociationsrepresentyourinterests when it matters?

If you take a look at the expenses that are involved in each of these decisions, you’ll likely find that your firm supports a number of societies and associations. Of course, it’s not just your dues and registrations and travel expenses, but also your valuable labor time that comprises your costs. Is your organization investing wisely?

I certainly believe in ACC and its value. ACC has been a solid investment for

our firm over the years, yielding some key strategic teaming opportunities, great access to FAA staff, resolution of procurement issues and — perhaps more than anything else — membership has helped me build my professional network. Knowing who to call in this industry is, as they say, priceless!

I am proud of ACC and the opportunities it offers to our member firms and the industry as a whole.

• TheSymposium—heldeachwinterinpartnership with AAAE — has grown into a truly premier event where the tracked technical content is superb.

• TheSummerWorkshopSeriesandSecurity Capabilities Day (formerly the Security Technology Day) are for the deep thinkers and relationship builders. Those who join us in DC build relationships with FAA, TSA and dig deep into the issues affecting our projects and our industry.

• TheACCAnnualConference—heldeach fall — provides an opportunity for both executive and associate members to meet together and shore up relationships for business during the coming year.

• ACC’scommitteestructureprovidesan opportunity for many of your

staff to get involved. Not only are the committee members building their leadership skills, but they often have unprecedented access to decision-makers.

• TheACCInstitute’sseminars,workshops and webinars provide quality educational opportunities for both your new, as well as your seasoned staff.

Although the expression is a tired one, you really do get out of your investment what you put into it. Along these lines, I encourage you to give some serious consideration to getting more involved with ACC.

I will guarantee you that those who get involved with ACC will become more familiar with our industry and will rub shoulders with some of the best and brightest around. Attend a webinar; travel to a conference; join a committee. Your firm will be better for it — and the check that you write will be well invested!

Hope to see you soon!

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

Get invested!Courtney A. Beamon, P.E.

Delta Airport Consultants, Inc.

ACC 2012 Board of Directors Chair

3www.ACConline.org

STay currenT on acc newS

Cover Story

1 can airport Privatization Be Successful in the u.S.?

By Louis D. Wolinetz, Infrastructure Management Group, Inc.

Executive Update

2 Get Invested! By Coutney A. Beamon, P.E., Delta Airport Consultants, Inc.

Special Feature

4 – 5 aSSISTing airports with Security Technology Solutions

By Charles Chambers, National Safe Skies Alliance

Consultant Perspective

6 – 7 Forecasting 2012: analyzing the survey data from the eFcG ceo conference for engineering & consulting Firms

By Josh Lahre, Environmental Financial Consulting Group (EFCG)

A Publication of the Airport Consultants Council

Spring 2012

3

Consulting

AssistAnt Editor Editor John B. Reynolds T.J. Schulz

AirportConsulting is published three times per year in conjunction with ACC conferences. 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 email [email protected]. ©2012, ACC

AirportConsulting

ACC 2011 Board of Directors

Paula P. HochstetlerPresident

T.J. SchulzExecutive Vice President

Sharon D. BrownDirector, Programs and Finance

Emily VanderBushCoordinator, Marketing and Membership

John B. ReynoldsManager, Communications

ACC Staff

...delivering excellence in airport development

Inside This Issue

8 – 9 Member SpotlightsThis issue highlights ACC Executive Member Atkins and ACC Associate Member AlertEnterprise, Inc.

10 out & about with acc

acc 2011 committee Leadership

11 acc Goes Global

acc Global Business Summit

12 – 13 acc 33rD annual conference & exposition

acc / Faa /TSa Summer workshop Series

14 – 16 acc Members•OntheMove•NewMembers•AndtheWinnerIs…•ACCUpdates

16 – 17 cover Story(continued from page one)

18 acc events

19 Security Manufacturers coalition

acc/TSa Security capabilities Day

20 acc 34TH annual conference & exposition 2012

ChAirCourtney A. Beamon, P.E.Delta Airport Consultants, Inc.

ViCE ChAirAndy Platz, P.E.

Mead & Hunt, Inc.

sECrEtAry/trEAsurErDavid Peshkin, P.E.

Applied Pavement Technology, Inc.

immEdiAtE PAst BoArd ChAirTerry A. Ruhl, P.E.

CH2M HILL

BoArd of dirECtorsMichael R. Arnold, LEED AP

ESA Airports

Don BerginBlast Deflectors, Inc.

Roddy L. Boggus, NCARB, AIAParsons Brinckerhoff

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

Enrique M. MelendezParagon Project Resources, Inc.

A. Bradley MimsThe Ravens Group Inc.

Kevin Quan ESCO-Zodiac Aerospace

Marion Kromm White, AIA, NCARB, LEED AP

HOK

Solomon WongInterVISTAS

www.ACConline.org

Subscribe at www.ACConline.orgFollow ACC on Twitter @ACC_HQ

t a b l E o f c o n t E n t s


Figuring out how to help airports select and test AIP-eligible security technologies that address 49 CFR Part 1542 security requirements is a

challenge for airport security consultants and vendors, especially in a time of tight budgets. The airport Security System Integrated Support Testing (aSSIST) program offers a way to successfully meet this challenge. Specifically, the ASSIST Program provides a process under which consultants and vendors can facilitate the testing of security technologies in actual airport operating environments and help airports make smart procurement decisions.

ASSIST is a collaborative effort between all U.S. commercial airports, the Transportation Security Administration (TSA), the Federal Aviation Administration (FAA), Airport Consultants Council (ACC), Airports Council International-North America (ACI-NA), American Association of Airport Executives (AAAE), and National Safe Skies Alliance (Safe Skies). Safe Skies created ASSIST to help airport operators meet their security responsibilities using a transparent process to identify, select, and implement projects to help make our nation’s aviation security system more efficient and effective. The ASSIST Program projects test security technologies, systems, and processes that address 49 CFR Part 1542 requirements.

The ASSIST Project proposal process is streamlined, proposer-friendly, and implementation can be scheduled once a project is approved. ASSIST also brings as many technologies as feasible to the operational testing process. When testing is completed, Safe Skies prepares a report that the TSA makes available to all commercial airports on its ACO-200 Web Board. This public documentation provides an excellent way for information on specific security technology solutions to be broadly and quickly distributed across the entire U.S. commercial airport market.

aSSIST Program ParticipationThe ASSIST Program includes four (4) areas:

1) Security Solution Assessment at a Specific Airport

2) Security Solution Assessment at Safe Skies’ Facilities

3) Special Emphasis Perimeter Security Technology Assessment at CAT X Airports

4) Special Emphasis Perimeter Security Technology Assessment at CAT I, II, III, and IV Airports

To participate in the ASSIST Program, airports must (1) possess a TSA-approved

Airport Security Program; (2) be included in the FAA National Plan of Integrated Airport Systems (NPIAS); and (3) be eligible to receive FAA Airport Improvement Program funding.

Airports submit proposals to have security solutions assessed at their respective air-port locations. Consultants can play a key role by helping identify proposal ideas and in preparing proposals. Vendors can play a key role by providing technologies for test-ing. Proposals fall into two categories — Standard and Special. Standard Projects provide the opportunity to enhance securi-ty or find more efficient ways to meet secu-rity requirements. Special Projects provide the opportunity to address security issues that arise unexpectedly and for which an immediate test project would be helpful to enhance security. There is no limit on the number of Standard or Special Project proposals an airport may submit.

Safe Skies has two facilities — a Pre-operational Test Facility and a Perimeter Test Facility — at McGhee Tyson Airport that can host access control, biometrics, and perimeter protection testing as part of the ASSIST Program. The Pre-operational Test Facility allows for indoor testing in a simulated airport terminal environment of biometric and access control devices that may not be ready for operational deployment. The Perimeter Test Facility

By Charles Chambers, National Safe Skies Alliance

aSSiSting airports with Security technology Solutions

s P E c i a l f E a t u r E

5www.ACConline.orgwww.ACConline.org 5

exposes installed perimeter security devices to the unique elements of an airport environment, while constantly monitoring system performance from a command center, where all input is correlated with minute-to-minute weather and environmental data. Its plug-and-play configuration allows for the equipment being tested to be rapidly installed, evaluated, and removed. Safe Skies typically requests that equipment being tested at the Perimeter Test Facility be installed for a nine-month period to allow for testing in various weather conditions and temperatures. This affords a long-term look at nuisance alarm data, providing airports with more complete information when determining whether to add perimeter protection devices to their security network.

Safe Skies is coordinating a working group of CAT X airports to assess the enhancement capabilities of existing commercial-off-the-shelf perimeter security technologies and best practices established for airport perimeter protection. This group also provides a vehicle for these airports to share their perspectives, experiences, and subject matter expertise regarding perimeter security technologies and best practices for the mutual benefit of all airports. Category X airports will serve as test locations representing geographical and topographical differences.

Safe Skies is also coordinating a working group of CAT I, II, III, and IV airports to

assess the enhancement capability of existing commercial-off-the-shelf perimeter security technologies using best practices established for airport perimeter protection, with special emphasis placed on cost and relative value. In addition, this group provides a vehicle for these airports to share their perspectives, experiences, and subject matter expertise regarding perimeter security technologies and best practices for the mutual benefit of all airports. Airports from each category will serve as test locations representing geographi-cal and topographical differences.

Test Plans and reports Safe Skies will work with appropriate stakeholders to create Test Plans and con-duct the assessments. All Test Plans will be produced using an ISO 9001:2008 certified Quality Management System, and will be approved and overseen by a certified Project Management Professional (PMP). Final Reports will be provided to the TSA for posting on the TSA ACO-200 Web Board. A non-sensitive version of Final Reports will be made available to airport operators and airport consultants on the FAA website. Safe Skies will provide each participating vendor with the appropriate non-sensitive report.

The ASSIST Program is a valuable resource for airports, consultants, and vendors. The reports on technologies tested under the program are made available to all U.S. com-mercial airports, which can help companies

show value and expand their airport market presence. With ASSIST, consultants and vendors can quickly realize their security expertise, aviation system knowledge, and security technology solutions to help improve the nation’s aviation system.

For additional information on ASSIST or for an ASSIST proposal form, please visit www.ACConline.org.

FE

DERAL AVIATION

AD

MI N I S T R AT I O

N

AirPorT SECuriTy SySTEm inTEgrATED SuPPorT TESTing ASSIST

ACC is a valuable ASSIST partner

as the organization representing the

technical experts, with consultants

and vendors playing a pivotal role in

the ASSiST Program. Their knowledge

about what is happening in the airport

security arena, and at specific airports,

can be helpful to airports in developing

ASSiST Project proposals as well

as in identifying various security

technologies for testing.


The financial outlook for the engineering/consulting (“e/c”) industry in 2012 appears to be positive. The Environmental Financial Consulting Group’s (EFCG) annual CEO Conference in October

2011, included over 200 firms, representing $87 billion in revenues, $2.4 billion of which comes from the aviation and aerospace industry. While 200 firms may represent only a fraction of the total industry, this group comprises roughly 90 percent of the total industry revenues. Data gathered from surveys at the conference provide a unique perspective on the expected financial performance of e/c firms in 2012, by looking at two key indicators: growth and profitability.

Profitability & Growth Trends Profitability — Earnings Before Interest, Bonuses and Taxes, or EBIBT, divided by Net Revenues — is projected to be 11.5 percent at the median, which would be its second highest level over the last 17 years. In analyzing the histori-cal profitability data, we see two trends:

1) There has been an impressive improvement in profit-ability over the last 17 years, as the median has nearly doubled from 6.5 percent to 11.5 percent projected in 2012. How many other industries can say that median profits have nearly doubled over the same period?

2) Over the past few years, during which the economy reached century lows, median profitability for e/c firms remained strong, holding around 10.5 percent. An in-credible accomplishment, considering the significant ups and downs experienced by other industries.

Median internal growth (excluding the impact of acquisi-tions) for 2012 is projected to be six percent, as opposed to five percent in 2010, and zero percent in 2009. Given the uncertain economy, and slowdown in many sectors, six per-cent growth for the e/c industry is very strong. And, looking back on historical growth, the e/c industry has outgrown U.S. GDP in all but four of the last 20 years. Furthermore, the average growth rate for the e/c industry over this period was seven percent — 50 percent higher than the average U.S. GDP growth between four and five percent over the same period.

There are also three key trends currently taking place in the industry that will determine the strength of the e/c market in the coming year: diversification; continued merger & acquisition (“M&A”) activity; and international expansion.

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

forecasting 2012By: Josh Lahre, EFCG

FIG. 1 Diverse Definitions: Diversification, while important to (almost) all, can mean something different for different firms.

Source: EFCG Annual CEO Conference Surveys

Definitions of Diversification (# of ceo votes)

services/Business lines 102geography 60Clients 58Projects/Contracts 8staff 6

Diversification has become an increasingly “hot topic.” Two years ago, CEOs were asked to indicate how im-portant diversification was to their firm. An overwhelming 93 percent said it was “important,” with 78 percent saying it was “very important.” However, when the same group of CEOs were asked to define diversification, there was a wide range of answers. (Fig. 1) Since diversification is difficult to define, some of the key variables driving firms’ desire to di-versify were identified that apply to nearly all definitions. It is clear that while diversification may be a positive indicator, there are still financial pitfalls and discretion is necessary:1) Spread actuarial risk across a wider base: This leaves a

firm less susceptible to downturns in specific sectors. 2) Expand Markets: As some markets become saturated,

firms that desire high growth are sometimes forced to expand outside of their current services and/or geogra-phies. However, it can be difficult for a firm to grow in new sectors, thus the cost may outweigh the benefits of diversification.

3) Reduce Overhead: As a firm grows, its ability to spread overhead over a greater amount of revenues can lead to lower costs and higher profitability. (On the other hand, this may not always be true, as growth requires some increase to overhead, and moving into new markets may require an even greater increase.)

Analyzing the survey data from the EFCG CEO Conference for Engineering & Consulting Firms

77

International expansion by U.S. e/c firms continues. (Fig. 4) Much of this trend has come from the rising demand of emerging countries as their need for greater infrastructure grows, and the U.S. scaling back on projects (in both the private and public sectors) during poor economic conditions. To continue growth, firms are increasingly being forced to look outside of their current geographies for work opportunities.

These transactions are primarily being made by larger firms. When the survey data is broken down by revenue size, all of the firms with revenues greater than $1 billion expect to close at least one deal in 2012, compared to 72 percent of firms with revenues between $100 million and $1 billion. On the other hand, only 33 percent of firms with revenues less than $100 million expect to complete at least one acquisition.

However, when CEOs were asked if the consolidation has affected their firms positively or negatively, they provided some interesting results. (Fig. 3) Unsurprisingly, the largest firms (revenues greater than $1 billion) perceive the consolidation to be more positive than negative. Many of these firms rely on acquisitions to provide a significant portion of their annual growth and diversification. Perhaps more unexpected was the response from the smallest sized firms, those with revenues less than $25 million. These firms also perceive the consolidation to be more positive than negative. The remaining firms in between these two size groups were more evenly balanced between positive and negative perceptions, without any clear consensus.

www.ACConline.org

FIG. 4 Global expansion: Total revenues at the conference from international (non-u.S.) business have increased from 7 percent in 1995 to roughly 40 percent today. Furthermore, 60 percent of firms in 2011 reported plans to increase international operations over the next 5 years, while only 3 percent indicated plans to decrease.

FIG. 3 Friends or enemies: many smaller firms perceive mergers and acquisitions positively because they eliminate competition; others have found that clients can prefer to work with smaller, specialized, niche players, and have made the decision to remain as such.



u.s. international

2011 62% 38%

2005 74% 26%

2000 80% 20%

1995 93% 7%

Positive negative net>$1 Bil 53% 26% +27%$250 - $1 Bil 45% 40% +5%$100 - $250 MM 36% 45% -9%$25 - $100 MM 29% 35% -6%<$25 MM 48% 29% +19%

% of Total Revenues at EFCG Annual CEO Conferences from:

Has Industry Consolidation Been Positive or Negative? (By firm revenue size)

Josh Lahre ([email protected]) is an associate at EFCG, a 20-year old financial and strategic advisory firm, specializing in assisting engineering and consulting firms with peer benchmarking analyses, internal ownership transitions, recapitalization, valuations, and mergers and acquisitions www.efcg.com

Mergers and acquisitions continue to play a significant role in the growth of the e/c industry. (Fig. 2) The significant amount of activity raises fundamental questions: Who is doing all of these transactions? More importantly, what is the impact of this consolidation on the industry?.

FIG. 2 m&A: An uncertain economy briefly stalled a long stretch of increasing activity. Since 2009, however, the volume of transactions has come back and 2012 is projected to have the most deals completed in over a decade.


# of Acquisitions

2839 46

56 60 6758 51

66 69

93

60 60

85

107

131

180

131

166158

196185

0

50

100

150

200

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

E20

12P

# of Firms Making Acquisitions # of Acquisitions

Number of Acquisitions


ATkIns

482 South Keller RoadOrlando, FL 32810-6101 United States

Tel: (407) 647-7275Fax: (407) 740-8958

Email: [email protected]

Established in 1938, Atkins has become one of the largest international design and engineering consulting firms, with offices across the United

States, Europe, the Middle East, and Asia Pacific. Experience in the most vibrant markets in the world allows Atkins to deliver the best, most up-to-date technical solutions to clients’ infrastructure projects by sharing expertise and knowledge on a worldwide scale.

At the same time, Atkins understands the vital importance of being “local”— of having deep roots in the communities in which the company’s employees live and work. In the United States, Atkins’ experience and office network span the nation for more than half a century. Understanding of local requirements, practices, and culture allows true partnerships with our clients.

Atkins’ core transportation services in the U.S. highways and structures, tolls, aviation, and transit markets encompass engineering, planning, construction management, program management, environmental science, geomatics, architecture, emergency management, asset management, and information technologies. Atkins’ clients represent a mix of both the public and private sectors and include regional, state, and federal agencies; counties and municipalities; development companies; airports; toll road agencies; and contractors.

Atkins’ national aviation services group specializes in providing full-service consult-ing for airport airside, landside, and facility development. Dedicated to the planning and design of airfield projects, they have delivered thousands of projects all over the world. The company’s experience in planning, design, and construction services for the aviation industry spans more than half a century.

Atkins’ ongoing success is based on the rec-ognition that client satisfaction is paramount. Committed to helping lead the charge for a low-carbon economy, Atkins assists our clients in fulfilling the social and practical challenges of an environmentally conscious world.

Atkins is widely noted for the high caliber of their technical professionals and their comprehensive capabilities in key markets. This is reinforced by efforts to provide their professionals with an environment that promotes continuous learning and quality improvement and our goal of increasing diversity in both their workforce and leadership.

Prepared by Kelly Corace,Senior Proposal Coordinator,

Transportation

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 9

Since 9/11 airports have made great strides to secure their facilities through enhancements in perimeter intrusion detection, physical barriers, upgraded

video surveillance, and other security technolo-gies. Yet these enhancements focus on prevention of external threats, not the risk posed by insiders. The ever-increasing number of insider incidents at airports combined with documented intelligence studies show that insider activity cannot be ignored.

The complexity of managing access to highly secure restricted areas combined with the fact that many of the staffers working at airports are contractors or tenant employees who need to be authenticated, makes streamlining the upfront risk analysis all the more important.

Consider the following incidents that could have possibly been prevented with an AlertEnterprise solution:

• In 2008, an elevator mechanic was arrested for smuggling at least 17 illegal immigrants, including two with criminal records. He was suspected of being part of a larger smuggling ring that used him to gain access to restricted areas at a major U.S. airport. (Wikel, 2008).

• In September 2009, Najibullah Zazi, a 24-year-old Afghan immigrant and former airport shuttle-van driver, was arrested on federal terrorism conspiracy charges (Bliss & Blum, 2009).

• In 2010, a customs agent was accused of using his badge to smuggle guns and drug money in and out of the secured areas of the airport. There are too many siloed systems and

disconnected manual processes that provide the opportunity for risks to sneak in.

The Solution:

AlertEnterprise, the winner of the GSN Magazine Homeland Security Award for Best Logical and Physical Security Software Application, delivers a unified software solution to automate Airport Badging Office processes while ensuring security. AlertEnterprise also delivers Command and Control solution to enhance effectiveness for Airport Security Operations Centers.

For the Airport Badging Office, AlertEnterprise delivers next generation security convergence software to automate complex and error-prone manual processes. AlertEnterprise seam-lessly integrates multiple PACS and Surveillance Systems, HR Systems, Authentication Servers and Verification Systems to deliver Identity and Lifecycle Management across an entire enterprise landscape. AlertEnterprise automates on-boarding/off-boarding, badge creation and validation against identity databases, e.g., No-Fly List.

Additionally for the Airport Security Operations Center, AlertEnterprise l inks to Video Surveillance, Intrusion Detection, and other sensor systems to provide true security against insider threat, sabotage and acts of terrorism through unique situational intelligence and predictive analytics capabilities. AlertEnterprise additionally provides multi-regulatory compli-ance for TSA Security Directives, including 1542-04-08G and TSA 49 CFRs, and active policy enforcement for all regulations.

AlertEnterprise, Inc.4350 Starboard DriveFremont, CA 94538Tel: 510-440-0840Fax: 510-440-0841Email: [email protected]

Prepared by Pan Kamal

Vice President, Marketing

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


COMMITTEE CHAIR VICE-CHAIR

teChniCal

Engineering Nick RyanArora Engineers, Inc.

Doug SanderDelta Airport Consultants, Inc.

Environmental Skip JohnsonMichael Baker Jr., Inc.

Brad RolfBarnard Dunkelberg & Company

Information Technology & Systems

David KippRoss & Baruzzini, Inc.

Jim WillisThe JW Group, Inc.

PlanningMarc ChampignyThe Louis Berger Group, Inc.

Diana WasiukHarris Miller Miller Hanson Inc.

Safety & Security/ Security Capabilities Day

Cheryl VaukProductive Solutions

Larry StuddifordJacobs

Sustainability Suzanne Geckle CH2M HILL

Jane AhrensGresham, Smith and Partners

Terminal Carl NewthSyska Hennessy Group

Marion WhiteHOK

GOvernment affairs

Legislative & Regulatory

Brian Clark C&S Companies

Kevin DollioleUnison Consulting, Inc.

Project DeliverySteve CornellT.Y.Lin International/H.J. Ross

Knute RuggaardCH2M HILL

serviCes

ACC Institute Matt WenhamC&S Companies

Todd KnuckeyAtkins

Awards Tom Darmody HOK

Carol LurieVanasse Hangen Brustlin, Inc.

Globalization Mike DeVoyRW Armstrong

Dave StaderCH2M HILL

events

ACC/AAAE AirportPlanning, Design & Construction Symposium

Terry PalmerMagnusson Klemencic Associates, Inc.

J.J. Morton Kimley-Horn and Associates, Inc.

Summer Workshop Series

Monty Wade Applied Pavement Technology, Inc.

Damon Smith Mead & Hunt, Inc.

ACC Annual Conference

Pat AskewGensler

Greg CastoAvAirPros

OperatiOns

Marketing/Membership Kristin Shaw SITA

Nate MortensonSafegate Airport Systems, Inc.

NominatingCourtney BeamonDelta Airport Consultants, Inc.

Terry RuhlCH2M HILL

Past Board Chair Terry RuhlCH2M HILL

Ron PeckhamC&S Companies

Strategic Planning & Bylaws

Solomon WongInterVISTAS

Mary Ellen Eagan Harris Miller Miller & Hanson Inc.

2012 Committee leadership

o u t & a b o u t w i t h a c c

ACC at the 63rd Annual Wright Memorial Dinner

ACC and many of its members attended the Aero Club of washington’s 64th Annual wright Memorial Dinner in December. the dinner, “higher, faster, farther...” paid tribute to retired u.s. Air force lieutenant general and nAsA astronaut thomas Patten stafford“ for his pioneering achievements that have led the way to the moon, to greater international cooperation in space, and to a safer America.”

ACC spends a day at Capital Area Food Bank

As part of a continued sustainability effort, ACC staff spent a day in December packing donated food into boxes for underprivileged families at the Capital Area food Bank.

The Capital Area Food Bank is the largest, public non-profit hunger and nutrition education resource in the Washington, DC metropolitan area. The food bank and its network of partner agencies annually distribute nearly 30 million pounds of food

to more than 478,000 people.


December 3 – 4, 2012begins monday at 1 Pm Includes monday evening reception and all-day Tuesday.

WashIngTon, D.c.

2012 Global business summit

PRELIMINARY TOPICS

» Where to Start — Are U.S. Firms Welcome?

» Teaming for Success — The Global/Local Balance

» Lost in Translation — Knowing the Language and Culture

» Are You Worth It? — The Value Proposition

» Who Can You Trust? — Navigating Foreign Corruption

» How Much is Too Much? — The International Design Competion

» Know Before You Go — Safety, Security and Travel Logistics

» Understanding the System — Taxes and Legal Issues

» The ACC Global Airport Development Toolkit — Your Guide to Success

www.ACConline.org

SAVE THE DATE

SEE THE WORLD

aCC Goes GlobalThe ACC Globalization Committee organized and hosted the first annual ACC Global Business Summit in Washington DC on November 30, 2011. Industry leaders in public and private avia-tion industry participated with numerous ACC members and associates in thought provoking sessions related to various international markets and the unique considerations necessary when doing work overseas. The 50 attendees included firms who are entering the global marketplace, seasoned global experts who are interested in expanding their presence and network, and representatives from five industry organizations.

The focus of the ACC Global Business Summit was to answer the why, where, how, what and who of doing business in the global market place:

Why? Angela Gittens, the Director General of ACI-World set the tone for the rest of the day by providing insight into the current status of the global aviation industry. The growth in regions outside of North America and Europe is staggering, with nearly five percent and eight percent passenger traffic growth occurring in Asia and Latin America compared to less than three percent in North America in 2010. This growth signifies huge opportunities for our ACC Members.

Where? This was followed by a panel, led by Mike Arnold with ESA Airports, which provided valuable market data and personal experiences with some of the hottest global markets. An overview of major ACI regions was provided and then a focused presentation and discussion on Brazil and India followed.

hoW? Ron Peckham with C&S Companies led a panel focused on doing work globally. Topics included international risk management, legal issues and pitfalls, and cultures/customs. The in-triguing discussion provided numerous resources and contacts for supporting international project delivery and business development.

What? The luncheon keynote speaker, Dr. Alexander Ising with Hochtief, provided an overview of some of the differences associated with working in the global environment, includ-ing the effect of airport privatization. The first session in the afternoon included a panel of experts with extensive experience internationally that provided specific examples of the unique aspects of working in the global market. This panel was led by Vinnie Khera with Harris Miller Miller Hanson.

Who? The final session of the day was led by Belinda Hargrove with TransSolutions and focused on the U.S. Government Agency support available to U.S. companies looking to do work abroad. This included representatives from the U.S. Trade and Development Agency, U.S. Department of Commerce, and the Export-Import Bank.

a c c E v E n t s

(L to r) michael DeVoy with r.W. Armstrong and David Stader with CH2m HiLL served as the chairmen for the 2011 ACC global Business Summit.

(L to r) Andy Platz with mead & Hunt, inc. discusses the current state of global markets with Director-general of ACi-World, Angela gittens.

(L to r) Belinda Hargrove with TransSolutions; ray Ellis, Export-import Bank of the u.S.; Pat Kirwan, u.S. Department of Commerce; Henry Steingass, u.S. Trade and Development Agency; monty gettys, montgomery Consulting group, inc.

a c c E v E n t s P h o t o r E v i E w

… the theme at the 33rd annual aCC Conference & exposition held november 7 – 9, 2011 at Miramonte resort & Spa in palm Springs, California.


Staying Competitive in CritiCal timeS

( L to r) ACC Annual Conference Committee Chair Carol Lurie with Vanasse Hangen Brustlin, inc. and Vice Chair Carl newth with Syska Hennessy group enjoy the fruits of their labor.At the Annual membership

meeting, 2011 Board of Directors Chair Terry ruhl with CH2m HiLL

thinks of how his time as board chair at ACC will be remembered.

ACC and its members joined the Palm Springs Sustainability office, rolled up sleeves and donated some time and energy to clean up Palm Springs Creek (L) Don Bergin with Blast Deflectors, inc. shows off one of his better finds of the day.

The ‘innovations’ session allowed firms, in a relaxed atmosphere, to highlight how their product or technology is changing aviation. (L to r) James Pierce, L-3; Andrew goldsmith, rapiscan Systems; Kevin Peterson, SiTA; nate mortensen, Safegate Airport Systems; and moderator Faith Varwig, Faith group LLC.

Over 150 attendees gathered in the Coachella Valley to learn the keys to keeping their businesses efficient during critical economic conditions around the globe. The new ‘Innovations’ session offered a fresh view while Firm Forums continued to help similar firms find common solutions to common problems, and networking opportunities reinforced the value ACC events bring to the industry.

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Aviation Awardof Excellence

www.ACConline.org

ARLINGTON, VACrowne Plaza, washington national airport

FE

DERAL AVIATION

AD

MI N I S T R AT I O

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ACC / FAA / TSA

S u m m e r WorkShop S e r i e S

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> Faa r e au t hor i z at ion> aC uP dat e s> t s a F unding> seC ur i t y r egul at ions

JuLy 18 – 19, 2012

ACC/TSA SeCuriT y CApAbiliTieS DAy inDuSTry briefing > JuLy 17

ACC CommiT Tee meeTingS > JuLy 17

Roundtable discussions

2011 ACC Board of Directors Chair Terry ruhl (L), CH2m HiLL presents the 2011 Board Chair Award — given annually to an outstanding ACC board member — to Don Bergin (r) with Blast Deflectors, inc.

FAA Deputy Associate Administrator for

Airports Kate Lang (C) enjoys the scenery

with 2011 ACC Board of Directors Chair

Terry ruhl, CH2m HiLL (L) and ACC President Paula Hochstetler (r).

2011 ACC Awards Committee Chair

Pam Keidel-Adams (r) presents the 2011 ACC Aviation Award of Excellence to FAA

Deputy Associate Administrator for

Airports Kate Lang (L).


courTney a. BeaMon, P.e. has been named the new President of Delta Airport Consultants, Inc. Beamon has been with the firm for more than 15 years and is transition-ing from her former role as Vice President and Chief Financial Officer. With a Masters in Civil Engineering, an M.B.A., a private pilot’s license, and a background in communications, Courtney is excited to help the firm rise to a new level while maintaining its commitment to exemplary customer service. Beamon is also the 2012 ACC Board of Directors Chair.

Mr. cHarLeS cHaMBerS has joined the National Safe Skies Alliance (Safe Skies) as Senior Vice President & Chief Development Officer where he will oversee and direct the organization’s strategic development. His duties include working to strengthen and ex-pand the Aviation Security System Integrated Support Testing (ASSIST) Program for testing AIP-eligible security technologies at airports, as well as building and maintaining relation-ships with airports and industry partners. Chambers brings 25 years of diverse aviation-related experience to his work at Safe Skies, including serving as ACC’s board of directos chair in 2005. Prior to joining Safe Skies, Chambers served as Executive Vice President of Priva Technologies, Inc., which specializes in developing authentication security hard-ware and software. Charles was also Senior Vice President of Government Relations and Policy Analysis for InterVISTAS Consulting, Inc. where he assisted domestic and interna-tional aviation clients in meeting regulatory requirements and represented them before the Federal Government. Chambers also worked on the U.S. Senate Aviation Subcommittee staff under Senator John McCain and on the U.S. Government Accountability Office staff. Additionally, he has received several high-level appointments, including appointment as a Member of the Transportation Security Administration Aviation Security Advisory Committee and appointment as Chair of the Transportation Research Board Aviation Economics and Forecasting Committee.

ToM DeFanT Jr., PMP, has been named as-sociate vice president and project director in HNTB’s Philadelphia office. Prior to joining HNTB, Defant was a consultant serving as program director for program management services to the Philadelphia International Airport’s multi-billion dollar capital improve-ment program. Defant will be focused on

developing the firm’s aviation practice and continuing to expand HNTB’s presence in the Philadelphia area by developing both existing and new clients throughout the metropolitan area.

Mr. evan PFaHLer has joined the RS&H Aviation Program in the Los Angeles office. Mr. Pfahler brings to RS&H experience that includes managing airport master plans for some of the largest and most complex airports in the nation. Mr. Pfahler specializes in aspects of airport facilities analysis, including terminal capacity and geometry, airfield geometry and apron planning, cargo, general aviation, and airspace and operations planning and analysis. Mr. Pfahler has more than 12 years of experience in the management of airport master plans, site selection, and noise/environmental planning studies. His wide range of specialties is critical in assessing capacity balance among key facilities — especially his expertise with the National Environmental Policy Act and the California Environmental Quality Act. His experience includes: Los Angeles International Airport, San Diego International Airport, Minneapolis-St. Paul International Airport, Palm Springs International Airport, Anchorage International Airport, and LA/Ontario International Airports.

Mr. BrIan P. reeD, the RS&H current Senior Vice President and Director of the Aviation Program, will assume the position of CEO, effective July 31, 2012. Reed, Senior Vice President, Director of the Aviation Program and Board Member will complete his transition, assuming complete responsibility for day-to-day corporate leadership. As CEO, Mr. Reed will concentrate his focus on growth of the firm, while maintaining its current excellent client service. Reed served ACC board of directors chair in 2007.

Mr. DaMon SMITH, Pe, was promoted to Business Unit Leader of Northwest Aviation at Mead & Hunt. He is now a member of the Senior Management Group, managing staff in four offices who are working on projects in seven states. Smith is a senior airport plan-ning and design engineer in Mead & Hunt’s Vancouver (WA) office. Since 1997, he has led commercial, reliever and general aviation air-port improvement projects. Smith has formed a strong relationship with all of his clients, and thinks of himself as a member of their

14

airport team addressing development issues and challenges. Smith, an active member of ACC committees, said a personal goal is to develop the most respected and most experi-enced aviation staff in the Northwest.

Mr. JonaTHan PoPe has been named a Senior Engineering Manager in the New York office of Parsons Brinckerhoff. In his new position, Mr. Pope will manage Parsons Brinckerhoff’s aviation design and construction practice in the New York area and throughout the Northeast. Mr. Pope has over 30 years of experience managing large capital programs at airports. He has worked in a variety of roles on many large aviation projects such as Program Director for the Newark Liberty International Airport Terminal A Modernization Program, the Newark Liberty International Airport Redevelopment Program, and, while with Northwest Airlines, the development of the airline’s hub facilities at Detroit Metropolitan Wayne County Airport. As a consultant, he previously managed the planning, development and implementation of major capital projects for such clients as the City of Chicago Department of Aviation and the Metropolitan Washington Airports Authority.

Mr. wILLIaM P. MyerS, Pe, PMP, has been named Director of Transportation for the Northeast Region for Arora Engineers, Inc. Bill will be responsible for cultivating new and existing client relationships throughout the Northeast corridor. He will act as prac-tice leader for Program Management, and as such, will be responsible for the strategic growth of this market. Bill has over 40 years of progressive experience, including positions at the Port Authority of New York and New Jersey (PANYNJ), the U.S. Department of Transportation, and Prudential Securities. In his 26 year tenure with the PANYNJ, Bill served as Program Director of the Aviation Department, where he performed project management services for the Capital Design and Construction Program. He provided oversight and central coordination on capital programs at John F. Kennedy International Airport, Newark Liberty International Airport, LaGuardia Airport, Teterboro Airport, and Stewart International Airport totaling approximately $600 million in net capital expenditures annually.

On the Move

a c c m E m b E r s


EXECUTIVE MEMBERSBaLLanTIne avIaTIon conSuLTInG ServIceS, PLLcMr. richard D. yarnold, P.e., President66 Montrose AvenuePortland, Me 04103 united statestel: (207) 400-6037email: [email protected] Aviation Consulting Services is a small business professional limited liability company registered with the federal Central Contractor Registration (CCR) under DUNS No. 968378948. Mr. Richard D. Yarnold, P.E. has been providing airport design and construction expertise meeting the criteria for civilian (FAA) airports and military (DoD) airfields since 1987.

SuSTaInaBLe enGIneerInG GrouPMr. Manus McDevitt, Principal901 Deming way, suite 201Madison, wi 53717 united statestel: (608) 836-4488, fax: (608) 836-4477email: [email protected]: www.sustaineng.comSustainable Engineering Group specializes in commissioning of Net Zero Energy buildings, geothermal design, and energy studies. The firm has been involved with over 50 LEED projects across the nation.

ASSoCIATE MEMBERS aLerTenTerPrISe, Inc.Mr. Pan Kamal, vP of Marketing4350 starboard Dr.fremont, CA 94538 united statestel: (510) 440-0840email: [email protected]: www.alertenterprise.comAlertEnterprise delivers Situational Awareness through Incident Management, Reporting and Response and leverages multi-level workflow notification across all existing physical and logical systems. AlertEnterprise delivers secu-rity convergence software with powerful insider threat prevention and risk modeling capabilities to automate and streamline access management for on-boarding and off-boarding, among other critical areas.

FLex-o-LITeMr. Michael A. Boegerglobal Commercial Director50 Crestwood executive Drivesaint louis, Mo 63126 uniteD stAtestel: (314) 239-9183email: [email protected]: www.flexolite.comFlex-O-Lite is the leading global manufacturer and supplier of Glass Beads for Airport Markings including Type III, Type I and Type IV. Flex-O-Lite TIII airport beads exceed US Federal Specification

Mr. eDwarD MeLISky has joined RS&H as a Senior Environmental Planner. For over 20 years, Mr. Melisky served as a course developer/instructor, team leader, and special-ist with the Federal Aviation Administration (FAA), Office of Airports, Office of Airport Planning and Programming; and Airports Planning and Environmental Division. While with the FAA, he wrote FAA Order 5050.4B, the Order Preamble, and the Desk Reference for Airport Actions. Together, these documents describe how the FAA’s Office of Airports evaluates the environmental effects of airport projects to meet the requirements of the National Environmental Policy Act (NEPA) and 20 other federal environmental regulations. Mr. Melisky was also a member of the FAA team that wrote FAA Order 1050.1E, which describes FAA’s agency-wide instructions on meeting NEPA and other federal environmental requirements. Mr. Melisky has worked on numerous FAA teams preparing Environmental Impact Statements (EIS) for major airport development throughout the United States and has served as a course developer and instructor for training sessions of numerous Office of Airports Recurrent Environmental Training Courses and FAA/ACI/ACC Continuing Education Programs.

Mr. SaMueL J. conSoLe has joined Arora Engineers, Inc. as Practice Leader for GIS and Special Projects. Sam will be responsible for developing Arora’s new geographic informa-tion systems (GIS) department. As such, he will lead efforts for geospatial data analysis and systems integration. With over 25 years of related experience, he brings a deep level of knowledge to the position. Sam has held several key positions with the City of Philadelphia’s (City) Division of Aviation, for whom he worked from 1996 to 2011. He was the single point-of-contact for geospatial data management at Philadelphia International and Northeast Philadelphia airports. He served on the Mayor’s Office of Information Systems’ GIS Services Group and the GIS Managers Committee. Sam directed the airport system’s initiatives to establish a valid base plan and distributed map information system. He worked closely with FAA personnel, engineers, surveyors, contractors, airport sponsors, planners, managers, software experts, and technical writers. Sam also created the City’s Office of Emergency Management’s GIS program; his work was key in publishing a city-wide evacuation route study using modern mobile and web-based GIS applications.

New MembersTTB-1325 D, Type III and provide the highest level of marking visibility and safety. Flex-O-Lite provides technical support for customers around the world to ensure performance during instal-lation, and offers a turn key asset management program “AIRWIZE” that combines long term (5 year) maintenance service for airfield markings and rubber removal.

IMPLanT ScIenceS corPoraTIonMr. Marc gregorioDirector, federal Business Development600 research Drivewilmington, MA 018874438 united statestel: (301) 922-4271, fax: (301) 349-4823email: [email protected]: www.implantsciences.comImplant Sciences develops and manufactures explosives and narcotics trace detection systems. Using proven detection technologies, their high performance systems use no radioactive materials, and offer significant life-cycle cost savings. Implant Sciences products are deployed word-wide in Aviation, Mass Transit, Military Anti-Terrorism/Force Protection, Ports, Borders and Critical Infrastructure security application.

Mra aSSocIaTeS LLcMs. Marilyn r. Adams, President8015 Birnam wood DriveMclean, vA 22102 united statestel: (703) 231-7401email: [email protected] Communications offers professional editing and writing services and related consulting for reports, presentations, website content, speeches, press releases, books, etc. President Marylin Adams is a former USA Today aviation journalist now providing consulting to airports and other aviation sector clients. The business has applied for DBE status from the state of Virginia.

ScanTecH IBSMr. Chip starns, vice President75 fifth street, suite 430Atlanta, gA 30308 united statestel: (404) 526-6220, fax: (404) 526-6221email: [email protected]: www.scantechholdings.comScanTech IBS is a leading innovator of the most advanced X-Ray based checkpoint scanning sys-tems in the world: Sentinel™ checkpoint scanners and All Secure™ cargo and vehicle inspection systems. These systems are specifically designed to provide materially better and faster detection of hazardous and contraband materials at all public checkpoints.

SwanSon rInk, Inc.Mr. James J. luschesenior vice President1120 lincoln street, suite 1200Denver, Co 80203-2139 united statestel: (303) 832-2666, fax: (303) 832-7563email: [email protected]: www.rink.comSwanson Rink has a 60 year history providing innovative solutions for the aviation industry. This includes specific expertise in baggage handling systems, mechanical and electrical engineering, as well as telecom and security services that meet the needs of today’s highly secure and complex system requirements.


And the Winner Is…

GreSHaM, SMITH anD ParTnerS was recently selected as part of the Hardin Construction

design-build team to provide design services for the Main Terminal Interior Modernization

Program (MTM) at Tampa International Airport. Refurbishments will include moderniza-

tion of finishes throughout the public spaces of the Main Terminal, complete refurbishment

of the restrooms, new video walls and dynamic signs throughout the terminal and airside

facilities, a new United Service Organizations (USO) facility, new tourism kiosks and

other upgrades which are aimed at enhancing the experience of the travelling public.

Gresham, Smith and Partners will work with the Hillsborough County Aviation Authority

to ensure the new design supports TPA’s high-traffic environment, enhances technology

and, most importantly, improves the individual customer’s travel experience. The firm

will also coordinate with the Authority to maintain the terminal’s operational capacity

throughout the renovation process.

raPIScan SySTeMS, Inc. was awarded Best Innovator 2011/2012 for the Real Time

Tomography (RTT) system at the Airport Operators Association Annual Conference

in London. The RTT system was selected as the winner by the AOA Board due to the

dedication shown by the engineering team in taking this advanced technology, which has

been in development for many years starting at the University of Surrey in the late 1990s,

to today’s airports to meet their screening requirements. The RTT is a high speed, next

generation baggage screening detection system that enables airports to automatically inspect

checked passenger baggage for explosives and other potential threats. The system allows

airports to screen up to 1,800 bags per hour while delivering high resolution 3D images

to significantly improve the detection of potential threats and reducing delays in baggage

handling. The RTT exploits a technology called Computed Tomography (CT) that has

been traditionally used by hospitals to scan patients to create high resolution images

PRIVATIZATION continued from page 1

aCC updates Between october 2011 and February 2012, ACC released the following legislative alerts as email supplements to this publication. These alerts are also available at www.ACConline.org.

Chicago Skyway ($1.8 billion, 2005) and Indiana Toll Road ($3.8 billion, 2006), although Chicago has continued to be aggressive with parking and the proposed Midway Airport deals.

eCOnOmiC DevelOpment: Particularly for small and general aviation airports, private operators may bring expertise and capital to increase business opportunities (e.g., Stewart, Gwinnett County). These cases require significant community and political support, as the business case may not be obvious. In addition, residents may be concerned about increased activity near the airport.

stOp the BleeDinG: Privatizing a facility can stop the outflow of cash where airports are a drain on local resources. However, sponsors must be realistic about the ability to generate surpluses at the airport. Private companies don’t want to lose money either!

why P3s are DifficultThe path of airport privatizations is lit-tered with failed deals, from operating agreements at Allegheny Airport (near Pittsburgh) and Brown Field (in San Diego) in the 1990s through the collapse of the Midway Airport deal in 2009. More importantly, there are common threads

— like stakeholder opposition and incen-tivizing the privatization of profitable airports — that can be drawn from this shared history.

In most privatization projects, stakeholder opposition is expected. Employees and management may fear losing jobs or oppose work changes. Provisions to protect jobs can help, but not totally solve, this issue. At the same time, the local community often opposes privatization due to potential noise and other development impacts, although a concerted education campaign can alleviate many of the concerns.

Airport users, such as airlines, hangar owners or cargo operators, may be concerned about access or increasing fees. For example, in Ventura County,

Legislative NewsLn 11-14 (nov. 23, 2011)

• Obama Signs FY 2012 US DOT Appropriations Bill; AIP cut by $165 million

• FAA Authorization Update

Ln 12-01 (JAn 22, 2012)• Agreement on Labor Provision

May Clear Passage of FAA Reauthorization Bill

Ln 12-02 (JAn 31, 2012)• Agreement Reached on Four-year

FAA Reauthorization Bill

Ln 12-03 (FEb. 3, 2012)• House Passes FAA Reauthorization

Bill; Senate Consideration Possible on Monday

Ln 12-04 (FEb. 10, 2012)• ACC Summary of H.R. 658 — FAA

Modernization and Reform Act of 2012

Ln 12-05 (FEb. 14 2012)• Obama Administration Releases

FY2013 Budget Proposal

a c c m E m b E r s

17www.ACConline.org

c o v E r s t o r y

California hangar owners vigorously opposed the deal, which ultimately led to its demise. At the same time, majority-in-interest clauses require airline approval, which are difficult to secure.

One major challenge is the fact that there is little compelling reason to privatize profitable airports. Despite the economic downturn, large and medium commercial airports remain highly rated and have good access to the capital markets to fund infrastructure needs (in addition to grant funds and PFCs). Access to tax-exempt debt means public financing is usually cheaper in public hands.

In addition to access to capital, many private benefits are already being used at profitable airports. When BAA entered an agree-ment to design, build, lease, and manage a retail complex at Pittsburgh International Airport in 1992, it was able to more than double concessions revenue by designing the terminal and incentivizing vendors. Public airports have taken notice, and commonly hire shopping mall operators to handle con-cessions. Similarly, operating contracts for parking, janitorial service, baggage systems, terminal operation, and other services are now commonplace, providing much of the improved efficiency of private operation.

Most of the opportunity to earn money at U.S. airports is in the terminal and the land-side. With compensatory airline agreements much more common, airports are already incentivized to maximize these assets. And evidence shows they do — with up to 64 percent of revenue on average coming from parking, rental cars, and concessions.1

In theory, many airport revenues can be increased, but in practice it is more difficult. Long leases are common and need to be bought out or waited out. Also problematic is the fact that air carriers and tenants often require raising fees no faster than inflation.

SolutionsDespite these obstacles, there are some ways to effectively leverage private participation at airports.

1) T h I n k o u T s I D E T h E P I L o T P ro G r A M . Many of the benefits of P3s can be obtained without the complications of the pilot program. Operating contracts, facility projects, and integrated project delivery ap-proaches have much less red tape. Examples include the JFK Terminal 4 project and the Orlando-Sanford International Terminal development.

2) LEArn FroM oThEr sECTors. Toll road P3s have become increasingly popular. Some lessons from these deals include:

• Availability payments move con-struction, operation, and financing risk to the private sector while re-taining revenue risk (and reward) on the public side. Projects such as the Port of Miami Tunnel show this can bring private innovation, technology, and capital while retaining more public control of the assets. Airports can use this concept for facilities such as de-icing and automated people movers that have no natural revenue streams.

• It’s a partnership, not a privatization: major road projects often include public funds as well as private dol-lars. Examples include the I-495 high-occupancy toll lanes near Washington DC.

• Under-priced assets can be attractive. Politicians are typically loathe to charge market toll rates. Bringing in a private operator provides someone else to blame for rate increases that generate more value (and thus more payout).

3) F o C u s o n G r E E n F I E L D FACILITIEs. Private sector innovation is more powerful when embedded in the design of the facility — which is far easier to do for new construction. In addition, there are fewer embedded opponents and less transition issues.

4) FoCus on FACILIT IEs, noT En-TIrE AIrPorTs. Success has been seen at terminals at JFK Terminal 4 and the International Terminal at Orlando Sanford Airport. Similarly, parking garages, CONRAC facilities, cargo, and even ancillary facilities such as de-icing offer the opportunity to leverage private involvement without most of the headaches of a full privatization.

5) G E T C r E AT I v E . Phoenix-Mesa Gateway Airport had a need to ex-pand its terminal to meet demand from Allegiant Airlines, but had limited access to capital markets and a low tolerance for risk. The solution: Allegiant Airlines funded a $2 million addition to be repaid at $1 per enplaned passenger brought to the airport. Since the Airport earns more than $10.00 per passenger in non-airline revenue, there was zero risk.

Panama City, Florida engaged in two unique deals to build and service its new airport, opened in 2010. First, St. Joe donated a total of 14,000 acres of property (4,000 for the airport and 10,000 for required environmental mitigation) at a value of $42 million. Second, St. Joe entered a private agree-ment to provide revenue guarantees and marketing support that attracted Southwest Airlines, tripling traffic overnight.

6) ThInk MuLTIMoDAL . Innovative loan programs such as the Trans-portation Infrastructure Finance and Innovation Act (TIFIA) and the Railroad Rehabilitation & Improve-ment Financing (RRIF) can provide partial funding for rail/road/airport connections. TIFIA, in particular, works very well with P3s, as seen at the Warwick Intermodal Center at T.F. Green Airport in Providence and the Miami Intermodal Center.

7) MAkE ThE PITCh. Pension funds and other equity investors are looking for stakes in airport assets. With regular, annuity-style payouts, infrastructure is attractive when the deals can be made at reasonable cost.

1 Cartnell, sarah, Profits, Planes, and Policy: An Analysis of the Midway Airport Privatization and its implications for future Airport Privatizations in the u.s., April 24, 2009


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

upcoming events…

a c c E v E n t s

ACC EvEntS

July 17, 2012 aCC / tSa Security Capabilities Day arlington, va

July 18 – 19, 2012 aCC / faa / tSa Summer Workshop Series arlington, va

november 5 – 7, 2012 aCC 34th annual Conference & exposition Bonita Springs, fl

ACC InStItutE EvEntS

December 3 – 4, 2012 aCC Global Business Summit Washington, DC

More courses are anticipated. Stay tuned to www.acconline.org for updates.

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N o w ta k i N g r e s e r vat i o N s …

A D V E R T I S E H E R E


new Security Manufacturers Coalition launched ACC announced the creation of a new Security Manufacturers Coalition, which will focus on the unique issues facing the companies that manufacture security screening technology. Organized under ACC, the coalition provides a unified voice of security manufacturing firms that advocates its members’ U.S. and global aviation and related intermodal priorities to appropriate government agencies, elected officials and other influential industry participants.

The coalition is comprised of companies that manufacture security screening equipment that has been tested and certified to meet internationally-recognized standards. Its members provide security screening equipment

to a large number of public and private organiza-tions worldwide. To date the coalition includes American Science and Engineering, Analogic, Implant Sciences Corporation, L-3 Security & Detection Systems, Morpho Detection, Rapiscan Systems, Reveal Imaging Technologies, Inc. and Smiths Detection.

The coalition has identified four key priority issues to base its advocacy activities:

• Establish Department of Homeland Security (DHS) multi-year budgeting plans to foster cost-effective technology development and deployment;

• Increase transparency in DHS security tech-nology acquisition and deployment planning to drive innovation and investment in next generation detection capabilities;

• Foster the procurement of best performing technology; and

• Harmonize international technical standards and regulations.

For more information, contact the coalition director T.J. Schulz at 703-683-5900 or [email protected].

FOR MORE INFORMATION ABOUT ACC EVENTS, VISIT: ACConline.org

» TSA realignment: new programs, resource allocations & staff responsibilities

» Acquisition, contracting & small business impacts

Tuesday, July 17, 2012Industry BrIefIng > > >

wIll INClUdE:

T AIlOREd S pECIFICA l ly FOR INdU S T Ry

Arlington, VA Crowne Plaza, Washington National Airport

ACC/TSA SECURITy CApABIlITIES dAy

» Recapitalization & optimization updates: guidelines, projects & funding

» Future passenger & baggage screening technology requirements & their potential impacts

» TSA interface with industry (PGDS briefing, ACC Security Manufacturers Coalition, other)


p o S t r e C e S S i o n F l i g h t p l a n

A i r p o r T C o n S u lTA n T S C o u n C i l > > > d e l i v e r i n g e x c e l l e n c e i n a i r p o r t d e v e l o p m e n t

F O R A V I AT I O N L E A D E R S

NOVEMBER 5 – 7, 2012H yat t R e g en c y c o c o n u t P o i n t R e s o R t & s Pa , B o n i ta s P R i n g s , F L

spring 2012 airportconsulting

Documents