is in the Air FY 2015 Annual Report
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1 Change is in the Air FY 2015 Annual Report
2 table of contents A Letter to our Community A Letter to Our Community...3 Serving Our Community...4 Enhancing the Experience...6 Investing in Planning and Operations...8 Change is in the Air Preserving Our Heritage (LOU) Working with Neighbors...14 Developing the Zone Financial Report By any measure, Fiscal Year 2015 (July 1, 2014 through June 30, 2015) was a year of transformation with the evolution of International into an airport Also of note is a University of study of the economic impact of our airports during calendar year 2014, which revealed that the airports are the largest private employment center Fueling the Economy capable of handling the world s largest commercial cargo aircraft and the in the metro area. In fact, almost one in every 10 jobs in the Metropolitan our Leadership development of plans to renovate the Statistical Area is attributable passenger terminal to create new to airport-related services. customer experiences and a stronger community presence. (As evidence And finally, Phil Lynch, one of our of those plans, please note the Airport airports most ardent supporters and Authority s new logos unveiled in effective leaders, retired from the this report.) Regional Airport Authority s Board of Directors capping 27 years We are pleased to report that despite of service in a variety of roles. His industry-wide challenges, International Airport continues to rank passion for our airports and his commitment to clear, direct James S. Welch Jr. Chairman C.T. Skip Miller Executive Director as one of the world s foremost cargo communications to our community airports. As home to UPS s global air and business partners are among hub, the airport is the seventh busiest his most enduring legacies. cargo airport in the world and the third busiest in North America. Change will always be a part of our In addition, while the consolidation of the passenger airline industry industry. However, with the support of our community and employees, we are confident that we can James S. Welch Jr. Chairman continues to create obstacles to convert those challenges into attracting and retaining passenger new opportunities. air service, International remains the only airport in Kentucky that offers service by the four largest C.T. Skip Miller Executive Director airlines in the country American, Delta, Southwest and United. Le f t t o r i g h t: Airport Authority Board Vice Chair Phil Lynch, Mayor Greg Fischer, Airport Authority Board Chair Jim Welch, Congressman John Yarmuth and Executive Director Skip Miller celebrate the opening of Taxiway Alpha. 2 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 3
3 Serving Our Community Passenger Air Service During FY 2015, s air service market stabilized after nearly seven years of industry consolidation. Airlines experienced a return to profitability thanks to higher load factors and replacement of many smaller, firstgeneration regional jets with larger, more customer-friendly and efficient aircraft. For many communities, the mergers signaled a dramatic decline in airlines and service. Fortunately, our community was able to retain service from the four largest airlines in the country American, Delta, Southwest and United. In fact, International is the only airport in Kentucky that offers service on these four carriers, which together account for nearly 85 percent of the scheduled seats in the U.S. Our airline partners provide daily nonstop service to 20 top destinations including 16 of the 20 markets that local travelers visit most. With nonstop service to the largest international passenger hubs, travelers from International can connect to 135 international destinations in 66 countries on six continents at some of the lowest fares in the region 1. Also during the year, the Airport Authority Board and staff began working with Greater Inc. s newly formed Regional Air Coalition to explore how best to enhance air service. In addition, the airport formed the Travel Forum nine years ago to stay abreast of the region s most pressing air service needs. The forum meets quarterly and members include representatives of large and small companies, hotels, universities and travel agencies from around the region. Top 10 Domestic Destinations SDF Passengers FY 2015 (all nonstop service) Rank City 1 Chicago 2 New York 3 Baltimore 4 Orlando 5 Atlanta 6 Tampa Cargo Air Service During CY 2014, International Airport home to UPS s global air hub, Worldport retained its ranks as the seventh busiest cargo airport in the world and the third busiest in North America. Interesting facts about Worldport include: Record number of packages processed in a single day was 4 million, on December 23, Packages transit 155 miles of conveyor belts in the 5.2 million- Busiest Cargo Airports CY 2014 Rank City 1 hong Kong, China 2 Memphis, TN USA 3 Shanghai, China 4 incheon, South Korea 5 Anchorage, AK USA 7 Dallas square-foot-facility in an average 6 dubai, United Arab Emirates 8 Las Vegas 9 Washington, DC time of 13 minutes and are only touched twice by human hands. 7, KY USA 8 Tokyo, Japan 10 Denver 9 Frankfurt, Germany 10 Taipei, Taiwan 1 June 2015 Source: Airports Council International 4 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 5
4 Enhancing the Experience Advancing the goal of making our airports the airports of choice for travelers in our region is the top priority for the Airport Authority, and in FY 2015 we made progress in a number of areas. Supporting Our Community The week of the Kentucky Derby is the busiest time of year at International Airport as guests from around the world travel to our community. Departing guests were offered complimentary package wrap by volunteer Airport Ambassadors so that travelers could safely transport their liquid mementos especially Kentucky bourbon in their checked luggage. The Authority continued its connection to experts and visionaries in our community to help create ways to enhance travelers experiences and create a stronger community presence in International s passenger terminal. As a result of their hard work and creativity, more than $8 million in upgrades were approved by the Airport Authority Board of Directors. Those include new terrazzo flooring, carpet, wall treatments, and artwork throughout the terminal. In addition, new escalators, improved lighting systems, and new furnishings will be installed. Many of the renovations should be finished by Derby 2016, with final completion in Fall Ab o v e: FINANCE and ADMINISTRATION Oversees the Airport Authority s financial and administrative functions. Le f t t o r i g h t in t h e p a r k i n g s t r u c t u r e a t Lo u i s v il l e In t e r n a t i o n a l Ai r p o r t: Janet Barrow, human resources; Michael Burris, chief financial officer; Phyllis Baylor, purchasing; and Darrell Watson, property management At International, planning begins months in advance to ensure that the grounds and terminal are ready for those special guests. During Derby 2015, the terminal sported racehorse-themed decorations and more than 1,200 roses. In the airside rotunda, Derby greeters distributed 13,000 Ruth Hunt Woodford Reserve bourbon balls as musicians added to the ambiance. Year-round, our staff continues to work closely with community partners to plan for convention and special events. A crucial component of our hospitality is our volunteer Airport Ambassadors who greet and provide information on local attractions to travelers 365 days a year. In October 2014, the Ambassadors celebrated their tenth anniversary of service to more than a million airport guests. In the airside rotunda, guests can enjoy unique bourbons and spirits in the Bourbon Loft. Computer work stations with high-speed Internet access, Wi-Fi, flight information and multiple charging units also are available. Vo l u n t e e r Ai r p o r t Am b a s s a d o r s in t h e In f o r m a t i o n Bo o t h: Bud Fekete, Barbra Ayers and Mary Gayle Smith 6 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 7
5 Investing in Planning and Operations Operations For the second year in a row, experienced an unusually harsh winter as 20 inches of snow an entire season s worth fell between mid-february and early March. Temperatures averaged nearly 20 o F below normal with daytime highs at or below 25 o F and nighttime lows dipping below 0 o F. Despite those harsh conditions, the airport delivered on its commitment to keep the airfield open and available to its airline partners 24 hours a day, 365 days a year, as two snow teams alternated 12-hour shifts to continuously clear the snow and ice from runways and taxiways. Public Safety The Public Safety Department s cross-trained officers responded to more than 350 requests for medical assistance, 378 calls for law enforcement assistance and dispatched fire equipment 109 times to investigate situations from emergency alarms to car accidents. During FY 2015, the department retained its four fully certified TSA Explosive Detection Canine teams and handled approximately 100,000 phone calls ranging from requests for phone numbers to aircraft emergency alerts. Because aircraft emergencies don t always occur on airfields, the Public Safety Department taught the basics of aircraft rescue and firefighting to six nearby fire departments. In addition, classes were held for Fire Department s academy class, LMPD Explosive Devices Unit, Joint Emergency Services Unit, Jefferson County Fire Recruit Academy, Explorer Post, and the Air National Guard Fire Department. Specific fire extinguisher training was held for Atlantic Aviation (the fixed base operator at International Airport). OPERATIONS Oversees the Airport Authority s airfield operations, maintenance and public safety functions. Le f t to r i g h t w i t h airfield s n o w b r o o m: Tim Haizlip, maintenance; Suzanne Kimmons, operations; and Steve Petty, chief operations officer 8 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 9
6 Projects for our Future In October 2014, Taxiway Alpha, the parallel taxiway to the airport s West Runway, was completed. This taxiway allows the airport to handle the largest and newest long-range commercial cargo aircraft providing the most recent example of the Airport Authority s commitment to prepare for the future to help retain and attract aviation-related companies and jobs to our community. As completed, Taxiway Alpha is almost 2 miles long and 100 feet wide and cost approximately $40 million the FAA funded $37 million and the Authority $3.7 million. In addition, the airport dedicated almost $3 million to its ongoing pavement rehabilitation and airfield electrical upgrade programs. Specifically, 127 concrete panels were replaced on Taxiways Bravo and Foxtrot and on the West parallel Runway. Upgrades to the airfield electrical systems were made and select in-pavement light fixtures were replaced with energy-efficient LED fixtures. Runway is the airport s crosswind runway and one of the few remaining features of the old airfield. While it is not used as frequently as the two parallel runways, on rare occasions when winds shift to east-west, the crosswind runway may be the only one that meets the operational needs of certain aircraft. In spring 2015, work began on a $20 million project to improve the runway s safety areas to ensure that they will comply with current FAA standards by the end of December Runway construction Pavement rehabilitation 10 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 11
7 Preserving Our Heritage (LOU) Bowman Field clearly has changed since the start of the twentieth century when it was s first and only airport. However, it continues to play a vital role in the evolution of aviation in our community and region. Specifically: In addition, the airport hosts many community events including a number of Derby Festival events and the Aviation Museum of Kentucky s two-day aviation camp for children. In February, the Air+Space Academy, an aerospace education programming organization, established its national headquarters in Hangar 7 offering programs to schools that focus on science, technology, engineering and math. Bowman is the crucial, designated reliever airport for International giving smaller, general aviation aircraft a safe route away from larger, faster commercial aircraft. More aircraft are based at Bowman Field than any airport in Indiana or Kentucky connecting our community to the country s entire airspace system. PLANNING and ENGINEERING Oversees the Airport Authority s capital improvement and noise-mitigation programs. Le f t t o r i g h t a t Bo w m a n Fi e l d: Brian Sinnwell, chief planning officer; Cassie Menges, drafter; and Steve Tucker, engineer In addition, Bowman Field boasts a number of aviation-related businesses, including flight instruction; charters and sales; aircraft cleaning and refueling; and aircraft repair and maintenance. During FY 2015, improvements included asphalt pavement projects for the East T hangar area, Albert Near Street, and the Bowman Business Center Parking Lot. In addition, the Bowman Field Airport Area Safety Program began its fourth year of working to implement a project to manage objects that penetrate the FAA s contemporary airspace while minimizing the impact on surrounding neighborhoods. A preliminary draft Environmental Assessment with its Cultural Resources Evaluation component was submitted to the FAA. These documents were based on field work conducted by arborists, architectural historian teams, landscape designers, and planners in the residential and recreational areas near Bowman Field. In addition, the Historic and Cultural Resources evaluation (Section 106) process was initiated with a meeting of consulting parties. But Bowman Field is much more than an airfield. A number of other related businesses are located in the historic airport terminal including Le Relais, a restaurant offering fine dining with a 1940s art-deco theme and outside dining overseeing the airfield. 12 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 13
8 Working with Neighbors S SHELBY ST FET MINOMA AVE The QuieterHome Sound-Insulation Program 7 BELMAR DR PINDELL AVE In 2008, the LRAA moved forward with its QuieterHome sound-insulation program in the Preston Highway HARRISON AVE 6 READING RD ALEXANDER AVE corridor. This voluntary program provided (at no cost to eligible homeowners) customized, sound- PRESTON HWY 5 insulation treatments designed to reduce aircraft noise within the home. PACKARD AVE By the end of FY 2015, the Authority had either installed, constructed or contracted for sound-insulation MERHOFF ST 4 LOUISA AVE measures for the homes of the 542 LOCUST LN In the late 1980s, after reviewing numerous options, the Airport Authority chose to expand International Airport and build a new airfield on top of the old one. Today, the Community Noise Forum (comprised of designated representatives from airport stakeholders) meets every other month to monitor the progress families who chose to participate in the program representing almost 80 percent of all the eligible families in the Preston Highway corridor. 3 HESS LN AUDUBON PKWY However, that decision meant of the Noise Compatibility Program. changes and challenges for the airport and its neighbors. Some of the program s noise-reducing Community Award To develop solutions, the Noise Compatibility Study Group worked for four years to create a plan that would result in the least amount of aircraft noise over the fewest number of families. This led our community to embark on one of the largest aircraft noise residential acquisition measures are operational involving changes in air traffic procedures. Others more directly involve neighbors including the ongoing Voluntary Residential Relocation Program and the QuieterHome Sound-Insulation Program. At the end of FY 2015, 3,694 of Mary Rose Evans, Vice Chair of the Airport Authority Board, received the 2014 Community Noise Forum FlyQuiet Award for her contributions to improving the lives of airport neighbors by reducing aircraft noise over homes near International Airport. 2 FAYETTE AVE and relocation programs ever carried out in the United States. the 3,740 eligible families in noiseimpacted areas around International Airport had been relocated, leaving just 46 families eligible for relocation. In presenting the award, it was noted that, Evans exemplifies the meaning of a conscientious and concerned citizen. She has worked tirelessly to identify and resolve noise issues in an intelligent, persuasive and civil way. Legend Phase 1 Boundary Land Use QuieterHome Phase 2 Boundary Phase 3 Boundary Phase 4 Boundary Phase 6 Boundary Phase 7 Boundary Apartments Residential Phase 5 Boundary Sound-Insulation Program Phases BELMAR DR 1 MORGAN AVE Res 1 family Res 2 family Res Condo Master Lot FA Res Vacant Land 14 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 15
9 Developing the Zone In what was once a part of the Airport Authority s Voluntary Residential Relocation Program, the Renaissance Zone Corporation (LRZC) now promotes airport-compatible redevelopment in the Renaissance South Business Park. To stimulate this redevelopment, the LRZC has made public infrastructure improvements, formed the Renaissance South Business Park, consisting of approximately 680 acres, and established the Renaissance South Business Park Owner s Association. Since the park s inception, worldrenowned companies including UPS and Ford Motor Company have taken advantage of its superior location. While not on the airfield, it is within two miles of the south ends of International Airport s two parallel runways, two interstate highways, and a major rail line. Air Co m m e r c e Dr i v e Ex t e n s i o n Export Drive Mo lto Minors Lane Elementary Fo r d De r m o dy UPS Developments in FY 2015 include: Pa r i s Co n s e r vat i o n Ar e a In January 2014, Dermody Properties purchased 18 acres in the park and built a 315,000-square-foot warehouse/distribution facility. In November 2014, Molto Properties Outer Loop purchased 84 acres in the park, where the company is building two, 622,000-square-foot warehouse/ distribution facilities. Today, the LRZC has approximately 260 acres of prime commercial property on the market. 16 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 17
10 financial Report financial Report Statements of Net Position Years Ended June 30, 2015 and 2014 Component Unit Statements of Net Position continued Years Ended June 30, 2015 and 2014 Component Unit ASSETS Regional Airport Authority Renaissance Zone Corporation June 30, June 30, Current assets, unrestricted Cash and equivalents $ 11,501,975 $ 21,430,037 $ 4,196,229 $ 7,797,036 Investments, at amortized cost plus accrued interest 42,231,907 21,964,499 15,004,782 - Land held for sale ,710 1,605,855 Grants receivable 8,459,584 2,804, Fees and rentals receivable, net 4,309,346 4,364,409 5,070,045 4,617,817 Due from component unit 37,448 78, Supplies and prepaid expenses 1,161,707 1,091, ,731 Total unrestricted current assets 67,701,967 51,733,459 24,512,766 14,189,439 Current assets, restricted Cash and equivalents - 809, Cash and equivalents land fund 1,714,957 1,243, Total restricted current assets 1,714,957 2,052, Total current assets 69,416,924 53,786,279 24,512,766 14,189,439 Noncurrent assets, unrestricted Fees and rentals receivable, net - - 6,240,000 6,900,000 Capital assets not being depreciated 350,618, ,261,574 9,572,791 11,991,224 Depreciable capital assets, net 172,108, ,500,076 15,631,296 10,924,900 Unamortized loan costs - - 2,357,794 2,552,921 Total unrestricted noncurrent assets 522,726, ,761,650 33,801,881 32,369,045 Noncurrent assets, restricted Cash and equivalents PFC fund 3,301,277 3,373, Cash and equivalents 22,040,354 17,400, Investments PFC fund - 1,000, Investments, at amortized cost plus accrued interest 32,856,670 16,636, Total restricted noncurrent assets 58,198,301 38,410, Total noncurrent assets 580,924, ,172,456 33,801,881 32,369,045 Total assets $ 650,341,885 $ 605,958,735 $ 58,314,647 $ 46,558,484 DEFERRED OUTFLOWS OF RESOURCES Pension Authority contributions subsequent to the measurement date 1,279, Total assets and deferred outflows $ 651,621,186 $ 605,958,735 $ 58,314,647 $ 46,558,484 LIABILITIES Regional Airport Authority Renaissance Zone Corporation June 30, June 30, Current liabilities (payable from unrestricted current assets) Accounts payable $ 13,662,662 $ 7,681,152 $ 509,272 $ 741,339 Accounts payable - Authority ,448 78,846 Accrued expenses and other 1,283,290 1,153,751 11,916 19,594 Loans payable - - 3,733,022 1,469,692 Unearned income 1,642,105 1,275, ,000 Total unrestricted current liabilities 16,588,057 10,110,260 4,291,658 2,809,471 Current liabilities (payable from restricted current assets) Bonds payable 17,495, Accounts payable 1,194, , Accrued interest on bonds 4,494, , Total restricted current liabilities 23,183, , Total current liabilities 39,772,016 10,416,310 4,291,658 2,809,471 Long-term debt Bonds and loans payable 231,635, ,130,000 7,571,655 11,304,676 Other liabilities Deposit from UPS land option 7,819,551 7,819, Unamortized bond premium, net 13,076,864 14,764, Deposit from Commonwealth of Kentucky 2,524,824 2,524, Other liabilities - 83, Revolving coverage (payable from restricted assets) 4,300,000 4,300, Net pension liabilities 13,734, Total other liabilities 41,455,239 29,492, Total liabilities $ 312,862,255 $ 289,039,132 $ 11,863,313 $ 14,114,147 DEFERRED INFLOWS OF RESOURCES Pension Difference between projected and actual investment earnings 1,468, Total liabilities and deferred inflows $ 314,330,255 $ 289,039,132 $ 11,863,313 $ 14,114,147 NET POSITION Net investment in capital assets $ 252,329,047 $ 247,124,650 $ - $ - Restricted for debt service 47,305,155 26,588, Restricted for capital projects 8,285,068 9,402, Unrestricted net position 29,371,661 33,803,649 46,451,334 32,444,337 Total net position $ 337,290,931 $ 316,919,603 $ 46,451,334 $ 32,444,337 These statements are excerpts from the audited financial statements which are available upon request. 18 FY 2015 Annual Report Regional Airport Authority These statements are excerpts from the audited financial statements which are available upon request. FY 2015 Annual Report Regional Airport Authority 19
11 financial Report financial Report Statements of REVENUES, EXPENSES AND CHANGES IN NET position Years Ended June 30, 2015 and 2014 Component Unit Regional Airport Authority Renaissance Zone Corporation June 30, June 30, Statements of CASH FLOWS Years Ended June 30, 2015 and 2014 Regional Airport Authority Component Unit Renaissance Zone Corporation June 30, June 30, Operating revenues Rentals and concessions $ 45,416,065 $ 42,703,303 $ 1,576,829 $ 1,426,182 Landing and field use fees 19,852,543 19,592, TIF revenues - - 4,385,909 7,146,868 Land sales, net of cost - - 9,351,008 1,872,087 Total operating revenues 65,268,608 62,295,353 15,313,746 10,445,137 Operating expenses Operations and general maintenance 15,419,641 15,044, Administrative, general, planning and engineering 10,062,226 11,086, , ,673 Total operating and maintenance 25,481,867 26,130, , ,673 Major maintenance 6,979,543 4,954, Depreciation and amortization 23,887,870 23,046, , ,794 Total operating expenses 56,349,280 54,131,699 1,012,003 1,175,467 Operating income 8,919,328 8,163,654 14,301,743 9,269,670 Non-operating revenues (expenses) Investment earnings, net 788, ,210 12,708 1,669 Interest expense (7,301,171) (11,414,638) (307,454) (351,826) Passenger facility charges 6,590,600 6,625, Net gain/(loss) on disposal of assets (1,193,663) 138, Cost of bond issuance 40,807 (1,772,379) - - Other expenses - (59,517) - - Net non-operating revenues (expenses) (1,074,885) (6,132,892) (294,746) (350,157) income before capital contributions 7,844,443 2,030,762 14,006,997 8,919,513 Capital contributions 26,641,885 14,450, Change in net POSITION 34,486,328 16,481,211 14,006,997 8,919,513 Net position, beginning of year, previously stated 316,919, Restatement due to adoption of GASB 68 and 71 (Note 1) (14,115,000) Net position, beginning of year, as restated 302,804, ,438,392 32,444,337 23,524,824 Net POSITION, end of year $ 337,290,931 $ 316,919,603 $ 46,451,334 $ 32,444,337 CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 65,607,338 $ 62,206,473 $ - $ - Land sales, lease revenue, and TIF revenues ,223,126 11,828,336 Payments to suppliers (24,246,086) (23,214,581) (1,073,790) (70,315) Payments to employees (8,075,033) (7,662,449) - - Net cash flows provided by operating activities 33,286,219 31,329,443 15,149,336 11,758,021 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Capital contributions 20,986,712 14,078, Passenger facility charges 6,673,691 6,688, Acquisition and construction of capital assets (27,259,515) (19,182,363) (2,126,974) (3,959,133) Proceeds from sale of assets 61, , Proceeds from bonds and loans payable - 249,130, Principal paid on capital debt - (19,650,000) (1,469,691) (1,361,207) Proceeds from bond premium - 14,764, Payments to escrow from bond refunding - (301,900,000) - - Net borrowings from (repayment to) the Authority - - (41,398) (3,208,145) Interest paid on capital debt, net of capitalized interest (4,619,426) (12,036,015) (120,005) (153,130) Fees paid on bonds 40,807 (1,596,961) - - Net cash flows used for capital and related financing activities (4,115,851) (69,560,793) (3,758,068) (8,681,615) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from maturities of investments 78,386, ,728,330 9,502,553 8,193,619 Cash payments from (advances to) component unit 41,398 3,208, Purchase of investments (113,871,197) (74,521,692) (24,507,335) (5,293,003) Investment income 575, ,786 12,707 1,669 Net cash flows provided by (used for) investing activities (34,868,321) 31,000,569 (14,992,075) 2,902,285 Net increase (decrease) in cash and equivalents (5,697,953) (7,230,781) (3,600,807) 5,978,691 Cash and equivalents, beginning of year 44,256,516 51,487,297 7,797,036 1,818,345 Cash and equivalents, end of year $ 38,558,563 $ 44,256,516 $ 4,196,229 $ 7,797,036 These statements are excerpts from the audited financial statements which are available upon request. 20 FY 2015 Annual Report Regional Airport Authority These statements are excerpts from the audited financial statements which are available upon request. FY 2015 Annual Report Regional Airport Authority 21
12 Fueling the Economy our Leadership Our Board and Executive Director Total Annual Jobs (in thousands) The Airport Authority is an autonomous municipal corporation established by Kentucky statute. It is responsible for owning, operating International Airport (SDF) and Bowman Field (LOU) comprise the largest employment center among private operations in the metro area, according to a 2014 economic impact survey conducted by the University of s Department of Economics. According to the 2014 survey, on a recurring basis International and Bowman Field operations: Support more than 69,900 jobs Provide more than $2.6 billion in payroll Generate more than $8.1 billion in economic activity Produce more than $348.8 million in state and local taxes The airports fuel our economy by enabling passengers to connect easily to world destinations, helping retain and attract businesses, conventions and tourists. In fact, in FY 2015 International Airport offered affordable passenger service to 20 nonstop destinations including eight of the 10 busiest U.S. airports and eight of the top 10 international gateways Total Annual Payroll (in billions of dollars) and developing International Airport (SDF) and Bowman Field (LOU) making it the only multiple airport system in Kentucky. Much like a private corporation, the Authority is self-funded and derives operating revenue from a variety of user fees. The Authority does not receive local or state funding for the routine operations of either airport. An 11-member Board of Directors sets policy, approves the budget and hires the executive director, who serves as the organization s chief executive officer and governs the Authority. Board members serve four-year staggered terms without compensation. Charles T. Skip Miller is the executive director of the Regional Airport Authority and directs staff James S. Welch Jr. Chairman Dale Boden Evelyn Strange Mary Rose Evans Vice Chairman Earl F. Jones Jr. Gail L. Strange Jon Meyer Secretary/ Treasurer Elaine M. Musselman Steve E. Trager The Honorable Greg Fischer Mayor of Lesa Seibert In turn, these gateways provide convenient, one-stop service to 135 cities in 66 countries on six continents making it easy to access the majority of the world s population and business centers. Just a few of those destinations include Beijing, Buenos Aires, Sydney and Johannesburg 1. Also during 2014, International Airport, as home to UPS s global air hub, Worldport, retained its rankings as the seventh busiest cargo airport in the world and the third busiest in North America. 1 June 2015 Total Annual State and Local Taxes (in millions of dollars) who handles the day-to-day operations, maintenance and administration of International Airport (SDF) and Bowman Field (LOU). The Renaissance Zone Corporation s (LRZC) Board of Directors mirrors that of the Airport Authority s Board. In addition, Mr. Miller serves as president of the LRZC. C.T. Skip Miller Executive Director 22 FY 2015 Annual Report Regional Airport Authority FY 2015 Annual Report Regional Airport Authority 23
13 Questions? Fly.com PO Box 9129 KY (350/11-15) Printed on recycled paper
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