Aviation Organizational Chart. Aviation

Transcription

1 Aviation Organizational Chart Aviation 381

2 Aviation Summary Denver International Airport Actual Appropriated Recommended Revenue Facility Rentals $194,004,325 $190,100,000 $204,700,000 Concession Revenues 59,676,864 61,534,939 63,898,000 Parking Revenues 178,478, ,576, ,352,450 Car Rentals 65,308,527 66,855,988 68,940,000 Landing Fees 147,378, ,300, ,500,000 Aviation Fuel Tax 19,457,756 24,200,000 19,500,000 Hotel 3,205,350 37,470,000 43,612,413 Other Revenues 20,025,946 19,916,691 20,726,796 Passenger Facility Charges 106,006, ,400, ,048,800 Customer Facility Charges 18,597,856 35,000,000 20,000,000 Interest 40,648,169 23,069,000 26,031,409 Other Nonoperating Revenues 21,562,765 3,740,000 6,165,000 Total Aviation Revenues $874,351,273 $887,163,440 $938,474,868 Operating Expenditures Aviation Department Summary $375,119,156 $411,456,700 $429,972,252 Total $375,119,156 $411,456,700 $429,972,252 Expenditures Personnel Services 109,824,665 $116,360, ,467,946 Services and Supplies 214,876,103 $239,310, ,280,500 Internal Services & Misc. 50,418,388 $55,785,362 58,223,806 Total Operating Expenditures $375,119,156 $411,456,700 $429,972,252 Capital Equipment and Improvements Capital Equipment $6,215,693 $7,191,700 $8,072,707 Capital Improvements 40,045,264 40,125,000 40,125,000 Total Capital Equipment and Improvements $46,260,957 $47,316,700 $48,197,707 Debt Service Funds Airport Interest and Replacement $368,455,113 $369,231,915 $364,400,000 Total Debt Service Funds $368,455,113 $369,231,915 $364,400,000 Customer Facility Charge Capital Improvements $0 $35,000,000 $20,000,000 Total Customer Facility Charge $0 $35,000,000 $20,000,000 Hotel Operating Expenditures $2,762,024 $36,720,600 $33,544,619 Total Hotel $2,762,024 $36,720,600 $33,544,

3 0 Worldport Operating Expenditures $115,002 $1,000,000 $1,000,000 Total Worldport Fund $115,002 $1,000,000 $1,000,000 Concessions Joint Marketing Funds Operating Expenditures $2,160,263 $2,000,000 $3,000,000 Total Joint Concessions and Marketing Funds $2,160,263 $2,000,000 $3,000,000 Total Aviation Expenditures $794,872,515 $902,725,915 $900,114,578 Personnel Complement Aviation Department Summary 1, , , Total Personnel Complement 1, , ,

4 Aviation Denver International Airport Overview The Airport Enterprise Fund is in place to support the operation, maintenance, planning and development of Denver International Airport (DEN). DEN is the largest airport in the United States by size with 53 square miles of land. It is one of the busiest airports in the world, with approximately 54.0 million passengers traveling through in DEN serves over 170 domestic and international destinations and is known around the globe for its innovations in public art, operations, technology, service and management. It is also the primary economic engine for the state of Colorado, generating an estimated $26 billion in economic impact for the State each year. DEN has an established reputation for excellence. In 2016, DEN earned the distinction of being ranked No. 1 on the Skytrax list of the World s Best Regional Airports for North America and was also the top American airport on the World s Top 100 Airports ratings (moving up five spots from the 2015 rankings). This prestigious designation was recognized by passengers, who highlighted the airport s world-class staff, amenities and air services. Additionally, in USA Today s 10 Best Readers Choice 2016 travel awards, DEN was voted by readers as the No. 2 overall Best Airport for Dining with Elway s Steakhouse being named the No. 1 restaurant for Best Airport Local/Regional Dining. DEN was recognized by Airport Revenue News as having the Airport with the Best Customer Service among all large airports at the 2016 ARN Revenue Conference and Exhibition. Our concessions partner, Root Down, was also named the Best Chef-Driven, Local or Regional Restaurant during the awards ceremony. In April 2016, DEN was awarded the Balchen/Post award for excellence in snow and ice removal and maintaining operations in the large commercial airports category. In 2015, DEN was recognized by the Skifties Social Media Awards for Travel Brands as having the Most Effective Brand on Social Media for airports. DEN s goal is to be known as America s favorite connecting hub and the airport is well-positioned to address the challenge. DEN s strategic plan has ambitious goals interlinked with strategic objectives and performance measures to adapt to changes in the industry and to track and measure its success. Since DEN opened 21 years ago, air transport has evolved and airports are now competing for air service and business. This new strategic plan has positioned DEN to continue to excel and compete in this dynamic global industry. DEN s international nonstop destinations total 20 destinations in 8 countries, including the addition of Munich and Montreal in Operated by Lufthansa, the Munich flight is expected to have an economic impact of $80 million annually and could bring as many as 700 new jobs to the state. On the domestic front, Virgin America began operations at DEN in March 2016 to operate three daily, roundtrip flights from San Francisco to service the Denver area, dubbed Silicon Mountain because of its booming innovation economy. In late November 2015, the new 519-room Westin hotel and conference center opened at the airport. The construction project of the hotel and transit center has employed more than 4,000 people and brings new economic opportunities for the airport and downtown Denver, especially as new commuter rail service began to connect downtown Denver s Union Station and DEN in April The Hotel and Transit Center Project Team was awarded the Public Achievement Award to recognize their work with Minority and Women Owned Business Enterprises. The Aviation program is delivered through the following key divisions: The Executive Office is comprised of the Aviation Chief Executive Officer and five Executive Vice Presidents for External Affairs, Revenue Management, Finance, Operations, and DEN Real Estate as well as the airport s General Counsel. It includes the budget for City agencies that provide direct services relating to the operation of the airport: the City Attorney, City Auditor, Division of Small Business, and the Division of Workforce Development and Employee Services. The External Affairs Division includes the Communications and Customer Service Department that is responsible for the airport s strategic communications programs to reach and engage with the public, customers and employees. The Department is also responsible for art, marketing, promotions, special events and for the overall management of DEN s website, In addition, the Department houses the airport s call center, staffing of information booths, VIP services and customer relationship management. The Division also includes the Global Affairs Department that is responsible for outreach functions in government affairs and air service development. 384

5 0 The Revenue Management Division optimizes existing airport businesses and identifies and develops new business opportunities to support the airport s strategic objectives. The Division s portfolio includes airport businesses such as airline leases, rental cars, and parking, as well as commercial real estate development and production of natural resources. Revenue Management is charged with developing and monetizing all airport assets, including terminals, land and minerals. The Finance Division leads DEN s financial strategy and manages its financial operations. The Division is comprised of Accounting, Financial Planning and Analysis, Fiscal Policy, Internal Audit, Financial Risk and Analysis, and Business Management Services. Key responsibilities include financial analysis, capital planning and funding, rates and charges, budget planning and management, financial reporting, procurement and contracts, financial statement preparation, audits on key risk areas, debt issuance, risk management, safety, and investor relations. DEN s PEAK Performance process improvement professionals are also housed within the Finance division. The Operations Division includes several departments such as Technologies, Airport Infrastructure Management, Airport Operations, and Special Projects. The Administration Department, housing Human Resources and Employee Engagement and Diversity, is also in the Division. The Technologies Department provides data center, infrastructure, applications development, integration, maintenance, voice and data networks, radio, wireless, help desk support, passenger systems, information assurance, and project management services. These services are designed to ensure cost-effective operation and maintenance of the technology systems and infrastructure required to support DEN. The goal is also to provide an exceptional passenger experience for the traveling public in response to rising expectations for self-service and other technology-oriented options throughout the passenger experience. The Airport Infrastructure Management (AIM) Department safely and efficiently maintains all airport assets and manages environmental services. AIM strives to provide exceptional service to all DEN customers. This is accomplished through leading the repair and maintenance of airport facilities, airfield maintenance (including snow removal), electrical and technical maintenance, and fleet maintenance. The Department oversees planning and noise, development, and energy management. The Development Section is responsible for project management, coordination, construction of airfield and roadway projects and site development/survey, management of airport project design coordination, tenant development and engineering standards for the airport. The Environmental and Sustainability Section is responsible for overseeing all activities at DEN for compliance with environmental regulations and sustainable practices. The Airport Operations Department is responsible for the safe, efficient, and secure operation of the airfield, main terminal and concourses. Specifically, the Airfield Operations Section coordinates airfield construction and aircraft movement on the ramp in coordination with the FAA Tower, and has oversight of the Denver Fire Department units at DEN. The Airport Security Section is responsible for the management of the airport s security related compliance, badging, permitting functions, and is the primary liaison with the Denver Police, Transportation Security Administration, Federal Bureau of Investigation, and Customs and Border Protection. The Operations Support Section manages the airport s Communication Center, and plans and conducts emergency planning exercises in compliance with federal requirements. The Contracts Services Section manages the Automated Guideway Transit System (AGTS) and baggage handling system. The DEN Real Estate Division provides a road map for smart, sustainable, long-term, compatible growth of the airport for decades to come. At 53 square miles, DEN remains positioned for growth at incrementally low costs, which will help maintain a competitive cost structure for our carriers while keeping up with growing demand. The airport has the ability to double its runways and facilities to serve 100 million passengers a year, with an additional 9,000 acres available for commercial development. This land represents one of the most compelling real estate opportunities in the world. It will generate non-aviation revenue, thus reducing airline operating costs in Denver, increasing regional economic benefits and generating new passengers, all of which should result in more flights to more cities. 385

6 Vision America s favorite connecting hub, where the Rocky Mountains meet the world. It is a platform upon which we can grow our passenger base, strengthen and sustain our economic impact, and establish an improved place in the global market. DEN is a well-loved hometown airport, but we are expanding upon that popularity to become the preferred hub for connecting passengers. DEN travelers will feel more empowered to make the most of their time and to keep their lives moving during their travel journey by offering options that balance work and play and a unique experience that embraces both global sophistication and the spirit of the modern West. Mission DEN s mission is to operate at the highest standards of safety and security. This mission occurs while delivering consistent, outstanding service to our customers that delights, inspires, eases the pressures of travel and offers the highest levels of service and efficiency. Strategies DEN implemented a five year strategic plan to put into context a highly competitive global airport industry, define the airport s strategic priorities and establish quantifiable objectives for success. This plan helps DEN organize performance measures that support Mayor Hancock s vision We will deliver a world-class city where everyone matters. DEN s vision is to become, America s favorite connecting hub, where the Rocky Mountains meet the world. The vision is supported by seven strategic objectives and nine five-year goals. The objectives and the related goals are summarized below. Winning the Hearts of our Customers: DEN will reach a summit of efficiency and service to become a preferred hub for connecting passengers. DEN will remain a terrific hometown airport for local travelers, but our plan has DEN expanding upon that popularity to become the preferred hub for connecting passengers. DEN connecting passengers will effortlessly change planes and savor our airport environment, where they will be surprised and delighted by shopping and dining choices. This will be obtained through valuing the customer experience and constantly improving customer satisfaction scores. (Customer Experience) Partnering for Operational Excellence: Operational excellence requires a finely tuned facility, providing a wellchoreographed and seamless journey for airlines and passengers, whose needs are anticipated each step along the way. To achieve this level of excellence, DEN must partner with all businesses that impact airport performance and the passenger experience airlines, concessionaires, rental car companies, and others to collaboratively provide a seamless and consistent customer experience. (Customer Experience) Excelling in Financial Performance: DEN will excel in financial performance by managing its budget, strategically and judiciously funding capital projects, along with seeking new sources of airport revenue that do not come from or depend upon airline operations. Excellent fiscal policy means a good reputation in the financial community, resulting in high ratings and low interest rates for the airport's bonds. By promoting sources of non-airline revenue, which goes toward offsetting DEN's operating and maintenance costs, we will reduce the cost of operating at DEN, make DEN more competitive globally, and make it a more attractive investment for new air service. (Sustainability) Putting DEN on the World Map: Denver and Colorado are just emerging in the global consciousness. DEN has unparalleled potential to serve the airlines and their international clients business and leisure who will be discovering the area. The airport continues to partner with local organizations that promote Denver as a tourism and business destination, to seek viable new air service, and position itself as a connecting hub for both international and domestic flights. As part of the five-year plan, DEN plans to increase international passengers by 40 percent and secure service to over 200 destinations worldwide. (Jobs) 386

7 Maximizing our Real Estate: From the moment planners decided that our new airport should be big enough to meet the needs of a distant future, DEN has had an enviable aviation asset the ability to add capacity. This wealth of land positions the airport to develop commerce within its boundaries, creating dynamic enterprise zones. The overall vision for this development is called Airport City, and DEN's foray into large-scale commercial growth has already begun with a new on-airport hotel and open-air plaza, and a commuter rail station, with planning for urban development at new stations along the commuter rail corridor between downtown Denver and the airport. Aviation-related businesses, enterprises that rely on cargo flight and companies that simply need airport access will be interested in operating within Airport City. (Sustainability) Investing for Sustainability: DEN must optimize the potential of its tremendous asset to ensure not only short-term success but also long-term viability. By reducing waste, increasing efficiencies and implementing various environmental programs, DEN plans to improve its environmental impact and better prepare future generations for a clean, sustainable airport. Three restaurants on Concourse C are now compositing with an estimate 50% decrease in solid waste and the airport has also added 10 water bottle filling stations. (Sustainability) Inspiring Our Employees: DEN needs the power of employees to reach new heights in service and performance. The combination of each employee's daily contributions toward achieving our vision and the airport's assets and strengths can be a transformative force energy that will propel DEN to the forefront of international airports. Through better transparency and increased employee appreciation and engagement activities, DEN strives to become one of the top workplaces in Metro Denver. (Sustainability) Mission Level Metrics Actual Actual Actual Estimated Objective Total Number of Passengers 52,556,359 53,472,514 54,014,502 57,998,644 59,158,616 Total Number of Enplaned Passengers 26,285,307 26,736,684 27,018,929 28,999,322 29,579,308 Bond Ratings A+/A1 A+/A1 A+/A1 A+/A1 A+/A1 Gross Concession Revenue per Enplaned Passenger $11.22 $12.28 $12.43 $12.43 $12.55 Cost per Enplaned Passenger $11.95 $12.24 $11.68 $11.05 $11.32 Mission-Level Context Total Number of Passengers represents originating and destination passengers and transfers inbound and outbound. Total Number of Enplaned Passengers represents originating passengers and transfers outbound. Bond ratings are important to borrowing and interest rates. DEN received A+/A1 ratings from Standard and Poor s, Fitch and Moody s. Gross Concession Revenue per Enplaned Passenger is the per passenger amount spent while at DEN on concessions. Cost per Enplaned Passenger is the cost paid by airlines for the operating cost, debt service and amortization of the airport divided by the number of enplaned passengers annually. 387

8 Performance Measures Actual Actual Actual Estimated Objective Debt Service Coverage All Bonds (DSC) 183% 187% 184% 165% 165% Cost Per Enplaned Passenger (CPE) $11.95 $12.24 $11.68 $11.05 $11.32 Airside On-Time Performance 75% 76% 80% 81% 82% Total Solid Waste (in Tons) Total Destinations Performance Context Key Performance Indicators (KPIs) Debt Service Coverage (DSC) is the ratio of net revenues plus other available funds available for servicing senior and subordinate bond debt as defined in the Airport general bond ordinance. Cost per Enplaned Passenger is the cost paid by airlines for the operating cost, debt service and amortization of the airport divided by the number of enplaned passengers annually. Airside On-Time Performance is the monthly average on-time performance of both departures and arrivals. Total Solid Waste is the total tons of solid waste that is sent to the Denver landfill. Total Destinations is the number of destinations served by DEN with regularly scheduled service at some point during the year. Revenues 2015 Actuals Operating Revenues 2016 Appropriated 2017 Recommended $ Change % Change Facility Rentals 194,004, ,100, ,700,000 14,600, % Concessions Revenues 59,676,864 61,534,939 63,898,000 2,363, % Parking Revenues 178,478, ,576, ,352,450 12,775, % Car Rental Revenues 65,308,527 66,855,988 68,940,000 2,084, % Landing Fees 147,378, ,300, ,500,000 18,200, % Aviation Fuel Tax 19,457,756 24,200,000 19,500,000 (4,700,000) (19.4%) Hotel 3,205,350 37,470,000 43,612,413 6,142, % Other Sales and Charges 20,025,946 19,916,691 20,726, , % Non-Operating 687,535, ,954, ,229,659 52,275, % Passenger Facility Charges 106,006, ,400, ,048,800 8,648, % Customer Facility Charges 18,597,856 35,000,000 20,000,000 (15,000,000) (42.9%) Interest 40,648,169 23,069,000 26,031,409 2,962, % Other 21,562,765 3,740,000 6,165,000 2,425, % 186,815, ,209, ,245,209 (963,791) (0.6%) Total 874,351, ,163, ,474,868 51,311, % 388

9 Revenues Facility Rentals include revenue from the terminal, hangars, ramps, and other buildings. Rates are based on cost recovery of land, construction and associated indirect costs. Concessions include revenues from food and beverages, retail and service concessions. Parking includes public and employee parking revenues. Car Rental revenue includes car rental concession fees and facility, space and land rentals. Landing Fees are charged per 1,000-pound unit of aircraft landed weight and are calculated to cover airfield operating expenses net of nonairline airfield revenue. Fees are adjusted annually based on a cost recovery approach. Aviation Fuel Tax includes State and City fuel tax. The City aviation fuel tax is two cents per gallon of fuel sold at DEN. The City s General Fund also collects two cents per gallon. The State aviation fuel tax is based on a calculation using gallons sold and the cost per gallon. DEN receives 65 percent of the State aviation fuel taxes paid to the State of Colorado. Revenue has been decreasing due to decreases in oil prices. Hotel includes revenue from rooms, food and beverages, rentals and other miscellaneous income. Other operating revenues include oil and gas, ground transportation fees and other miscellaneous operating revenues. Passenger Facility Charges are revenues derived from a $4.50 per enplaned passenger fee. The revenues are used for debt service and capital projects that must be in accordance with FAA guidelines. Customer Facility Charges are daily fees charged on rental car contracts used for capital and major maintenance projects at the Car Rental Facilities. Interest revenues are generated by the cash balances in the various funds of the airport. The cash balances are invested by the City s Department of Finance. Interest revenue is decreasing as the airport spends down proceeds from its most recent bond issuance. Other non-operating revenues include land sales, insurance recovery, TSA grant income and other miscellaneous nonoperating revenues. 389

10 Budget Highlights Expenditures 2015 Actuals Expense Category 2016 Appropriated 2017 Recommended $ Change % Change Personnel Services 144,894, ,601, ,146,752 9,545, % Contractual Services 197,567, ,462, ,474,805 7,012, % Maintenance, Supplies & Materials 32,657,742 29,393,176 31,350,695 1,957, % Capital Equipment 6,215,693 7,191,700 8,072, , % Division 381,334, ,648, ,044,959 19,396, % Executive Office 8,126,469 9,331,234 10,731,619 1,400, % External Affairs 9,755,903 12,607,486 14,072,616 1,465, % Revenue Management 50,489,739 55,713,159 61,305,567 5,592, % Finance 30,659,645 37,820,078 36,390,013 (1,430,065) (3.8%) Operations 275,043, ,405, ,288,687 11,883, % DEN Real Estate 1,044,281 3,579,471 3,183,750 (395,721) (11.1%) 375,119, ,456, ,972,252 18,515, % Capital Equipment 6,215,693 7,191,700 8,072, , % 381,334, ,648, ,044,959 19,396, % Personnel Complement (FTEs) 2015 Actuals 2016 Appropriated 2017 Recommended FTE Change % Change Executive Office % External Affairs % Revenue Management % Finance % Operations % DEN Real Estate % 1,275 1,275 1, % Additional Budget Highlights Hotel $ % Actual Appropriated Recommended Change Change $ 2,762,024 $ 36,720,600 $ 33,544,619 $ (3,175,981) (8.6%) The Hotel Fund is for the operation and maintenance of the Westin Hotel that opened on November 19, Revenue and expenses for 2017 are based on estimates provided by hotel management. Operating revenues are estimated at $43,612,413 for a net operating and capital reserve income of $10,067,

11 Customer Facility Charge $ % Actual Appropriated Recommended Change Change $ 0.00 $ 35,000,000 $ 20,000,000 $(15,000,000) (42.9%) The Customer Facility Charge Fund is for capital and major maintenance projects at the Car Rental Facilities. Debt Service $ % Actual Appropriated Recommended Change Change $ 368,455,113 $ 369,231,915 $ 364,400,000 $ (4,831,915) (1.3%) The Debt Service Fund is for the payment of principal and interest on the airport s outstanding debt. Worldport $ % Actual Appropriated Recommended Change Change $ 115,002 $ 1,000,000 $ 1,000,000 $ % The Worldport Fund is for the operation and maintenance of the Worldport investment property purchased by the Airport in Concessions Joint Marketing Fund $ % Actual Appropriated Recommended Change Change $ 2,160,263 $ 2,000,000 $ 3,000,000 $1,000, % The Concession Joint Marketing Fund has been established for DEN s Concessions Program and is funded by capturing one percent of concession gross revenues. Uses of this fund inlcude marketing, training, customer service programs and the Premium Value Concessions Program for all DEN concessionaires. Capital Equipment and Improvements Fund $ % Actual Appropriated Recommended Change Change Capital Equipment $6,215,693 $ 7,191,700 $ 8,072,707 $ 881, % Net Revenue Deposit for Capital Improvements 40,000,000 40,000,000 40,000, % Stapleton Operations Costs 45, , , % $46,260,957 $47,316,700 $48,197,707 $ 881, % 391

12 Significant Budget Changes by Program Impact Description FTEs Dollars Aviation A net increase in revenues due to increases in passenger traffic and fees charged to airlines to cover operating costs. A net increase in personnel services due to merit increases and increased Police/Fire personnel costs. A net increase in services and supplies due to increased costs in top contracts up for bid, snow chemicals and solvents. A net increase for the Concessions Joint Marketing Fund due to increased passenger traffic. A net decrease in Customer Facility Charges due to the timing of a rate adjustment ,300, ,500, ,000, ,000, (15,000,000) Capital Equipment Item Quantity New/Replacement Paving Equipment 4 Replacement Sweeper 8 Replacement Commercial Trucks 23 New/Replacement Software Equipment 20 New/Replacement Software 5 New/Replacement Hardware 2 New/Replacement Vehicles 100 New/Replacement Tractors 6 New/Replacement Painting Equipment 1 New/Replacement Printer/Plotter/Scanner 2 Replacement Mower Broom 1 Replacement Fire Engine 1 Replacement Exercise Equipment 1 Replacement Sidewalk Paver 1 Replacement Skid Steer Box Plow 1 Replacement Traffic Control Vehicle 1 Replacement Pressure Washer 1 Replacement Liner 1 Replacement Electric Grinder 1 Replacement 392