AIRPORT COMMERCIAL GROUND TRANSPORTATION FEES 2004

Size: px

Start display at page:

Download "AIRPORT COMMERCIAL GROUND TRANSPORTATION FEES 2004"

Janis Sullivan
5 years ago
Views:

1 AIRPORT GROUND TRANSPORTATION ASSOCIATION Phoenix, Arizona AIRPORT COMMERCIAL GROUND TRANSPORTATION FEES 2004 April 20, 2004 Presented by Joan Zatopek Leigh Fisher Associates

2 Presentation Outline! Why do Airports have an increased interest in non-airline revenues?! Why do Airports need a ground transportation policy?! What are the key elements of the policy?! What are the considerations in establishing fees?! What are the current trends in fees and managing ground transportation? 1

3 Why Do Airports Have an Increased Interest in Non-Airline Revenue?! Major U. S. airports are required to be self-supporting! Typical airport operating revenue sources: Airline rental and landing fees Other airport tenant and user fees and charges Federal grants Concession or privilege fees- inside and outside 2

4 Today Airports have an increased interest in ground transportation revenue because:! Non-airline revenues represent >43% of total revenues! Ground transportation/parking revenues represent >70% of non-airline revenue! CGT fees are about 1% to 2%! Airports wish to reduce airline fees and charges to: promote/attract low-cost carriers encourage new service/protect existing service relieve financially burdened airlines/ reduce cost per passenger! Ground transportation/parking revenues are often discretionary-no MII 3

5 Example Airline cost per enplaned passenger can range from $2.00-$

6 Non-Airline Revenues Account for 43% to 54% of Total Revenues 5

7 Ground Transportation, Rental Car and Parking are 70%-85% of all Non-Airline Revenues 6

8 Why do Airports Need a Ground Transportation Policy? Airports need a ground transportation policy to :! Formally establish the Airport s customer service goals and objectives! Clearly define the Airport s operating rules and regulations! Provide legally defensible basis for enforcement of rules and regulations! Allow Airport to preserve existing revenues and generate additional revenues 7

9 What are the Key Elements of the Policy?! Defined customer service levels and standards (maximum wait times, vehicle conditions, driver behavior)! Requirements for all companies doing business on the Airport enter into formal business arrangement (obtain Airport permit or license)! Measures to ensure safe and efficient use of roadways! Management and enforcement responsibilities, penalties for violations, and appeals process! Regulatory requirements such as ADA, clean fuel, licensing, insurance, etc. 8

10 Consideration in Establishing Business Arrangements/Fees! Which commercial services? exclusive concessionaires small parcel deliveries publicly owned vehicles (buses) out-of-town charters Pick-up and drop-offs others (casinos, major corporation)! Type of fees (permit, cost recovery, dwell time,privilege) all, some?! Basis of fees peer airports actual costs incurred by Airport? volume of airport-related business Per trip Per hotel room vehicle size/number of seats facilities used! Ability to monitor/enforce! Specific responsibilities for inspection, permitting, billing, etc! Enforcement 9

11 Access Fees sample calculations Cost allocation (x $1,000) Total Commercial Vehicles Private Vehicles Annual capital costs (a) $ 856 $ 378 $ 478 Annual O&M costs 1, Indirect costs TOTAL Annual Costs $ 2,826 $ 1,247 $ 1,579 TOTAL Annual Commercial Vehicle Traffic 1,926 Cost per trip 0.65 (a) Amortized total project cost of $7,010,

12 New Trends in Commercial Vehicles Fees! Fees Airports are Collecting! Ways Fees are Collected! Administration/Management of Commercial Vehicle 11

13 Fees that Airports are Collecting Charging for:! Excessive trips! Excessive dwell times! Hotel/motels offering public (non-guest) parking! Consolidated/non-consolidated services! Discounts for use of alternative fueled vehicles 12

14 Ways that Fees are Collected! AVI and debit cards that are part of the parking revenue control system! AVI and debit cards that are part of a toll road system! AVI for taxicabs? by vehicle? by driver?! Concession contracts/counter fees 13

15 Administration/Management of Commercial Vehicles! Use of third party to manage ground transportation operations! Use of third party or clearinghouse to collect fees! Vehicle inspection (level orange) - limousine and buses! Review fees that have not been revised in past 5 years 14

16 Conclusions! It s in the Airport s and commercial vehicle operators best interest to have a formal business agreement with the Airport.! Airport and commercial vehicle operators have a common goal of attracting and retaining passengers! New technologies are becoming more common place and will expedite the monitoring of trips and accurate collection of fees. 15

Annual Airport Finance and Administration Conference Innovative Funding Strategies. March 4, 2013 Destin, Florida Bonnie Deger Ossege

Annual Airport Finance and Administration Conference Innovative Funding Strategies March 4, 2013 Destin, Florida Bonnie Deger Ossege OVERVIEW Trends- Capital Improvement Programs Determine Your Airport