Airport/Airline Business Working Group September 9, 2012
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1 ACI Annual Airport/Airline Business Working Group September 9, 2012
2 Agenda Recap of the 2012 work plan 1. Continue to Coordinate with A4A 2. Update the ACI-NA Finance Committee Resource Center 3. Engage Airline Industry regarding Use of Consortiums: Update on ACRP A Guidebook for Airport-Airline Consortia by Theresia H. Schatz, TRB 4. Establish a Consistent Basis for Communicating with Airlines: Development of survey to catalogue and categorize airport existing airline agreement/ordinance terminology, methodologies and common practices BREAKING NEWS: New FAA Rates and Charges Policy Taskforce 2
3 1. Continue to Coordinate with A4A Continue to coordinate with A4A to improve communication and understanding between airports and airlines on topics of mutual interest Include airline representatives in panel discussions at the Economics and Finance Conference Have committee members reciprocate by participating at airline All Hands meeting Next Steps: Contact A4A regarding All Hands on Oct. 1-3 Ongoing engagement with airlines/a4a 3
4 2. Update the ACI-NA Finance Committee Resource Center Update the ACI-NA Finance Committee Resource Center for: Airline use and lease agreements Capital improvement program policies Any other policies or agreements that airport finance managers have found useful to make their airport more efficient and cost effective Inventory existing information Supplement with other existing databases Next Steps: Obtain missing agreements and identify process for annual confirmation/update of information in library 4
5 3. Engage Airline Industry Regarding Use of Consortiums Engage the airline industry regarding the use of airline consortiums to facilitate airline related operations at airports Identify conditions or environments where airlines feel consortiums may or may not provide benefits either financially or operationally Waiting for ACRP 01-21: A Guidebook for Airport-Airline Consortia to provide structure and areas to explore Next Steps: Continued dialogue with airlines and A4A 5
6 3. Engage Airline Industry Regarding Use of Consortiums ACRP Update A Guidebook for Airport-Airline Consortia Theresia H. Schatz, TRB 6
7 4. Establish Consistent Basis for Communicating with Airlines Problem Statement: When engaging airlines in negotiation regarding new or changed business terms, the airport operators ability to articulate alternative methods and practices for consideration is often hampered by their ability to identify other airports where those methods and practices are actually in use. Goal: Facilitate more productive discussions between airport operators and airlines by providing a more transparent view of the business terms in place at different airports across the industry. Attempted to develop ACRP problem statement, realized task better suited to survey, similar to earlier ACI MII Provisions Survey 7
8 4. Establish Consistent Basis for Communicating with Airlines: Revised Approach Using ACI s existing survey tools, create a searchable table that can be distributed to all airports and updated periodically Gather sufficient information on airport business terms and rates and charges for an airport operator to pursue due diligence at the level of depth appropriate to their situation: Feedback and areas of interested gathered from participants in breakout session at Economics Conference in Nashville Draft survey written and will be distributed by for comment within the Airline/Airport Working Group following Calgary Final survey will be distributed to all airports in 4Q2012 8
9 4. Establish Consistent Basis for Communicating with Airlines: Draft Survey 1. General airport information for sortation purposes Airport Size (passengers) Agreement Type Follow-up Contact Information 2. Non-rate Related Business Provisions Services provided by airline consortiums Gate-use protocols MII provisions 3. Rates and Charges Provisions Rate making methodology Revenue sharing Common-use charges Questions for Committee: One survey or two? How do we get you to respond? 9
10 4. Establish Consistent Basis for Communicating with Airlines: Next Steps Airport/Airline Working Group members refine survey Finalize questionnaire for distribution through existing ACI survey tools Solicit Working Group member volunteers for survey follow-up assignments Distribute survey Aggregate/format information Distribute survey results 10
11 New FAA Rates and Charges Policy FAA will reissue Rates and Charges Policy, incorporating: Vacated and challenged provisions from court cases 2008 amendments related to landing fees at congested airports Some sections have been edited, reworded, and supplemented since 1996 Policy FAA is likely to request comments on the policy in Spring 2013 and revisions to policy expected in late 2013 Comments, depending on FAA and ACI feedback, could include: If it was badly/unclearly worded in 1996, opportunity to fix now? Edited sections with unintended interpretations and consequences? 11
12 New FAA Rates and Charges Policy Airport/Airline Business Working Group coordinating with Legal Committee to gather and consolidate comments for ACI If you d like to help with the survey, gather comments for the FAA s new Rates and Charges Policy or have additional comments, please contact either: Ryan Yakubik ryakubik@lawa.org Or Liying Gu - LGu@aci-na.org 12
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