Greater Orlando Aviation Authority Board Meeting. Wednesday, August 15, 2018

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1 Greater Orlando Aviation Authority Board Meeting Wednesday, August 15, 2018

3 AWARDS

APM/ITF BENEFITS North Terminal capacity relief

options o Accommodation for three separate rail

4 APM/ITF BENEFITS North Terminal capacity relief o o Remote check-in availability Passenger drop-off areas Additional parking options o 2,400-space Garage C Multimodal transportation options o Accommodation for three separate rail systems Flexibility for the future o South Terminal access

2018 COMMERCIAL SERVICE AIRPORT PROJECT OF THE YEAR

recognizes outstanding achievements in airport

factors o Contribute to the mobility of people and goods

o Demonstrate resourcefulness in planning o Positively

5 2018 COMMERCIAL SERVICE AIRPORT PROJECT OF THE YEAR South Airport Intermodal Terminal Facility Award recognizes outstanding achievements in airport aesthetics, safety and service Key project success factors o Contribute to the mobility of people and goods o Contribute to the well-being of people and communities o Demonstrate resourcefulness in planning o Positively contribute to the physical environment and aesthetic value o Display cost-effectiveness.

6 COMMERCIAL SERVICE PROJECT OF THE YEAR-ARCHITECTURAL South Airport Automated People Mover/Intermodal Terminal Facility

BEST PROJECTS AWARDS: AIRPORT/TRANSIT Best Project: South Airport

winning projects from across the Southeast, including Alabama,

Independent group of judges review, score and determine final

7 BEST PROJECTS AWARDS: AIRPORT/TRANSIT Best Project: South Airport APM Complex Award of Merit: Intermodal Terminal Facility 40 winning projects from across the Southeast, including Alabama, Florida, Georgia, North Carolina, South Carolina and Tennessee Independent group of judges review, score and determine final winners 90 entries submitted Winning projects will be profiled in print edition of ENR Southeast. ENR Southeast will honor each winning project at awards luncheon held this year at the Renaissance Orlando SeaWorld

8 TOP COMMUNITY IMPACT AWARD Orlando International Airport Expansion Overall project highlights o $4.27 billion Capital Improvement Plan o $2.15 billion South Terminal phase 1 o $1.3 billion South Airport APM/ITF Complex o 2,400-space parking garage C o Increased capacity & convenience at North Terminal Project stood out for scope, complexity and/or projected economic impact for the region.

9 KEY CONTRIBUTORS 136 SUBCONTRACTORS TO DATE 257 TOTAL AWARDS

11 Greater Orlando Aviation Authority Preliminary Budget FY 2019 Presentation to the Board August 15, 2018

12 Passenger Traffic History & Estimate Based on current data, the Authority expects to surpass 47 million passengers in October Average load factor over last 12 months: 87.0% Load Factor (%) Seats & Passengers (Millions) Load Factor (12-Month Avg) Seats Future Seats Passengers Conservative Estimate 87.0% LF Estimate Load Factor (Monthly) 36 0 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan Source: Innovata flight schedules and GOAA Airline Landing Reports. Updated July Based on currently filed flight schedules which may be subject to significant change.

13 Budget Objective The Budget Objective Provide Passengers with world class customer service The Orlando Experience during construction which is necessary to accommodate unprecedented growth while maintaining an affordable cost structure. The Result FY 2019 CPE is budgeted to be below FY 2018 levels

14 Budget Timeline Month Description February Preparation and Kickoff March/April May/June O&M and Revenue budgets Capital Requests (CIR s) Personnel Requests due from departments Senior Management reviews and prioritizes capital and staff requests Rates and Charges are calculated July Meeting with Participating Airlines August Preliminary presentation to the Board September Public Hearing with the City of Orlando Final adoption by the Board

15 Budget Comparisons Orlando International Airport (in thousands) Preliminary FY 2019 Adopted FY 2018 Gross Revenues $566,910 $518,254 Less Rail Station Revenue ($4,071) 0 Net Revenues $562,839 $518,254 Expenses O&M / O&M Reserve $330,504 $311,139 Debt Service GARB $106,617 $102,900 PFC Supported $30,934 $ 30,867 Available PFC Revenue ($30,934) ($ 30,867) Total Airport Requirement $437,121 $414,039 Remaining Revenues $125,718 $104,215 Debt Service Coverage Ratios: Senior Lien Debt 2.42x 2.17x All Indebtedness 2.25x 2.01x Cost Per Enplaned Passenger (CPE) $ 7.45 $ 7.75 CPE for Participating Airlines $ 6.40 $ 6.66

16 MCO s Cost per Enplaned Passenger is below the 25 th Percentile for Large Hubs CPE U.S. Large Hub Airports Newark NY JFK Miami NY Laguardia San Francisco Washington/Dulles Chicago/O'Hare Los Angeles Philadelphia Boston Washington/National Honolulu Dallas/Ft Worth Houston Denver Las Vegas Seattle Portland San Diego Baltimore Detroit Chicago/Midway Phoenix Minneapolis Orlando Tampa Fort Lauderdale Salt Lake City Charlotte Atlanta $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00 Sources: Various Official Statements, rating agency reports, FAA , and certain other sources. CPE is for FY 2017 actual. Compiled by: LeighFisher, July 2017.

17 Cost Centers Airfield Terminal Ground Transportation Other Buildings and Grounds Hotel Area provided for the landings, takeoffs, and taxiing of aircraft All landside facilities Airside Passenger Terminal facilities Airport parking facilities Rental Car facilities Commercial lane All other airport areas not identified elsewhere Hotel facility located in the landside terminal building

18 Budget to Budget Comparison Airfield Cost Center Preliminary FY 2019 Adopted FY 2018 Operation & Maintenance Expenses $35,749,000 $31,451,000 Debt Service - GARB $18,659,000 $11,148,000 Capital Expenditures Amortization $ 1,923,000 $ 1,069,000 Fuel System Revenues ($ 2,059,000) ($ 2,117,000) Net Airfield Requirement $54,272,000 $41,551,000 Landed Weight (1,000 lbs) 26,324,000 25,291,000 Landing Fee $ $

19 Budget to Budget Comparison Terminal Cost Center Preliminary FY 2019 Adopted FY 2018 Operation & Maintenance Expenses $192,726,000 $181,375,000 Debt Service - GARB $ 55,628,000 $ 65,265,000 Capital Expenditures Amortization $ 11,020,000 $ 4,491,000 Federal Inspection Services ($ 24,029,000) ($ 17,914,000) Airline Equipment ($ 5,951,000) ($ 5,347,000) Baggage System ($ 14,918,000) ($ 14,452,000) Other ($ 777,000) ($ 698,000) Net Terminal Requirement $213,699,000 $212,720,000 Rentable Space (SF) 1,483,000 1,480,000 Terminal Premises Rate/ Per Sq. Ft. $ $

20 FY 19 to FY 18 Rates and Charges Comparison Budget 2019 Budget 2018 Landing Fees per 1000/lbs $ $ Apron Fee per gate $50,568 $42,484 Terminal Premises Rate per sq. ft. $ $ Airline Equipment Charge per gate $63,987 $57,496 Inbound Baggage System Fee per deplaned passenger Outbound Baggage System Fee per enplaned passenger $ 1.19 $1.25 $ 1.24 $1.29 CPE for Participating Airlines $ 6.40 $6.66 Enplaned Passengers 23,596,000 22,327,000 Landed Weight 26,324,000 25,291,000

21 Preliminary Budgeted Revenues - Orlando International Airport $566,910

22 $ 2.2M Terminal Premises $12.7M Landing Revenue $ 0.7M Bag System Fee Revenue $ 2.4M Food & Beverage & Service Concessions $ 1.1M General Merchandise $ 1.4M FIS Facility Fee Major Changes in Revenue Overall Increase of $48.7M

23 $ 1.3M Other Buildings & Grounds $ 4.6M Hotel Revenue $10.3M Parking Revenue $ 3.1M Rental Car Revenue $ 3.0M Commercial Lane $ 4.1M Rail Station Major Changes in Revenue (Continued) $ 2.8M Non Operating Revenue

24 Preliminary Operation & Maintenance Fund Orlando International Airport $327,074

25 Major Changes in Expenditures Overall Increase of $20.6M $ 8.0M Other Professional Services $ 2.2M Management Contracts $ 2.5M Other Contractual Services $ 0.7M Legal Fees $ 0.5M Maintenance Contracts $ 6.2M Salaries & Benefits

Personnel Requests Airline Division Airfield Operations Planning Maintenance ARFF Information Technology Airline Division Airfield Operations

26 PERSONNEL REQUESTS Total Component Requests Airline Division 2 Airfield Operations 2 ARFF 3 Comm Center 3 Customer Service 1 Finance 4 Information Technology 2 Maintenance 1 Planning 2 Purchasing 5 Risk Management 1 Security 14 TOTAL 40 Security Risk Management Purchasing Personnel Requests Airline Division Airfield Operations Planning Maintenance ARFF Information Technology Airline Division Airfield Operations ARFF Comm Center Customer Service Finance Information Technology Maintenance Planning Purchasing Risk Management Security Comm Center Customer Service Finance

27 Community Partnerships Orlando International Airport Organization Amount Benefit United Arts of Central Florida, Inc. $50,000 Creates a unique, stress reducing experience during high traffic times Showcases the rich cultural diversity and artistic opportunities available in Central Florida Provides a world-class artistic experience for our passengers MetroPlan Orlando $25,000 Planning organization for Orange, Osceola, and Seminole counties Provides the forum for local elected officials, staff, and industry experts to work together to improve transportation options for Central Florida Orlando Economic Partnership $15,000 Collaboration of business and civic leaders committed to procuring a better tomorrow for Central Florida Supports International marketing efforts Provides leadership in coordinating activities with Cape Canaveral Port Authority Orlando/Orange County Convention & Visitors Bureau dba Visit Orlando $12,500 Official sales and marketing organization for Orlando and Orange County Shares data and information on passenger and visitor numbers, growth, and demographics Supports the Authority s efforts in air service development, especially in competitive international markets Associated Industries of Florida $15,000 Encourages and supports Florida business and industry. Addresses issues important to Florida s continued growth and prosperity in transportation, infrastructure, and economic development industries. Sponsors annual event promoting interaction with Chairman and or CEO and transportation industry leaders to discuss Florida transportation planning and MCO

28 Community Partnerships Orlando International Airport Organization Amount Benefit Kissimmee/Osceola Chamber of Commerce $6,000 Assists in outreach to businesses in Osceola County for support on issues related to Orlando International Airport Florida Chamber of Commerce, Inc. $4,040 Connects Florida s business community to global opportunities and leverages resources and investments to maintain and expand Florida s position as an international trade leader Hispanic Chamber of Commerce of Metro Orlando, Inc. African American Chamber of Commerce of Central Florida, Inc. Florida Tourism Industry Marketing Corporation dba Visit Florida $1,500 Provides the Authority access to members, the community and business events allowing an avenue for the Authority and partner airlines to market to the Hispanic community Assist in small business outreach enhancing the Authority s ability to meet DBE/MBE participation requirements $3,080 Network and train small businesses to encourage participation in local governmental contract opportunities enhancing the Authority s ability to meet DBE/MBE participation requirements $1,000 Official sales and marketing organization for Florida Promotes Florida domestically & internationally Provides the Authority a broader inbound destination marketing community Provides access to data used in the Authority s marketing and air service development programs

29 Preliminary Budget FY 2019 Orlando Executive Airport

30 Budget Comparisons Orlando Executive Airport Preliminary Preliminary Budget FY 2017 FY 2016 FY 2019 Adopted FY 2018 Revenues Aviation Related $ 723,000 $ 835,000 $ 671,000 $ 736,000 Commercial Properties 1,951,000 $ 2,550,000 1,902,000 $ 2,462,000 Other Revenue 45,000 $ 172,000 40,000 $ 78,000 Contribution from from Fund Fund Balance 128,000 $ 234, ,000 $ 240,000 $2,847,000 $2,826,000 Total Revenues $ 3,791,000 $ 3,516,000 Expenses Operations & Facilities $ 807,000 $ 802,000 Expenses Safety & Security 1,116,000 1,091,000 Operations & Facilities $ 1,446,000 $ 1,436,000 Administration 572, ,000 Safety Other & Expenses Security 352,000 $ 1,161, ,000 $ 1,134,000 Administration $2,847,000 $ 600,000 $2,826,000 $ 596,000 Other Expenses $ 384,000 $ 350,000 Capital Outlay and Improvements $ 200,000 $ 0 Total Expenses $ 3,791,000 $ 3,516,000

Preliminary Budgeted Revenues & Expenses Commercial

$3,791 Revenues 67% Maintenance $269 7% Expenses Other

Other Revenue $406 ($ In thousands) Aviation Related $835

31 Preliminary Budgeted Revenues & Expenses Commercial Properties $2,550 Orlando Executive Airport Annual Budget $3,791 Revenues 67% Maintenance $269 7% Expenses Other $388 10% Insurance $104 3% 11% 22% 35% 40% 5% Interest & Other Revenue $406 ($ In thousands) Aviation Related $835 Personnel $1,329 Capital Outlay $200 Contractual Services $1,501

32 Recommendations: It is respectfully requested that the Aviation Authority Board resolve to (1) adopt the resolution approving the preliminary budget (2) request Orlando City Council to conduct a public hearing on the preliminary budget within 10 days of receipt of the budget and (3) authorize an Aviation Authority Officer to execute any necessary documents.

33 QUESTIONS?

35 Greater Orlando Aviation Authority Board Meeting Wednesday, August 15, 2018

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