Advisory Committee For Aviation Consumer Protection Washington, DC
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1 The Impact Of Airline Mergers And Consolidation On Consumers And The Aviation Industry Advisory Committee For Aviation Consumer Protection Washington, DC October 29, 2014 Deborah McElroy Executive Vice President
2 Who We Are Airports Council International North America (ACI-NA) represents local, regional and state governing bodies that own and operate commercial airports in the United States and Canada. ACI-NA s 207 airport members operate 360 airports, enplaning more than 95 percent of the domestic and virtually all the international airline passenger and cargo traffic in North America.
3 Who We Are, Continued The mission of ACI-NA is to advocate policies and provide services that strengthen the ability of commercial airports to serve their passengers, customers and communities. ACI-NA works in collaboration with Airports Council International (ACI) to advocate for airport issues before the International Civil Aviation Organization.
4 Recent U.S. Mergers and Acquisitions United Airlines / Continental Airlines Pinnacle Airlines / Mesaba Airlines Skywest / Atlantic Southeast Airlines / ExpressJet Airlines TransStates Airlines / Compass Airlines US Airways / American Airlines Pinnacle Airlines / Delta Air Lines Delta Air Lines Acquires 49% Stake in Virgin Atlantic Republic Airways / Shuttle America US Airways / America West Skywest / Atlantic Southeast Airlines Pinnacle Delta Airlines / Colgan Air Airlines / Northwe st Airlines Republic Airlines Southwest / Midwest Airlines Republic Airlines / Frontier Airlines Airlines / AirTran Airways In the last few years, the United States has led the world in airline mergers and acquisitions. Source: Respective Airline SEC filings
5 Flight Capacity by Hub Sizes 2008 to % Change Year Over Year 2.0% 0.0% -2.0% -4.0% -6.0% -8.0% -10.0% -12.0% -14.0% -2.9% -3.9% -4.7% -5.1% -4.7% -6.8% -8.1% -6.5% -7.8% -11.6% 1.3% 0.6% 0.4% -0.5% -0.8% -0.7% -2.8% -2.3% -2.5% -3.8% -0.7% -1.8% -3.4% -3.8% -5.2% 0.0% -0.6% -0.9% -1.0% -2.0% -2.3% -4.2% -2.9% -3.9% -3.7% Large Medium Small None TOTAL While airports benefit from a healthy, successful airline industry, recent mergers and the resulting consolidated airline industry has significantly impacted airports of all sizes throughout the United States through reduced service and higher fares.
6 Airport Hubs: Traffic Trends 2014 versus % 3.5% 2.0% 0.0% -2.0% -4.0% -1.3% Flights Seats -4.2% -4.2% -3.1% -6.0% -8.0% -10.0% -12.0% -10.3% -10.8% -8.4% Large Medium Small Non-Hub All airports have seen reductions in flights over the last three years. Airports are focused on adding new service but are limited in the incentives that can be offered to airlines. Source: Diio Mi
7 Airport Priorities In a recent survey, ACI-NA asked U.S. airport directors to identify their most significant challenges. Nearly 45 percent indicated air service development was the single biggest challenge facing their airports right now because of airline consolidation. We also asked airport directors to look five years into the future. Nearly 40 percent again identified providing price and service competition for their communities as the single biggest challenge they expect to face over the next five years.
8 Airport Priorities, Continued An adjusted Passenger Facility Charge local user fee adjusted from $4.50 to $8.50 and indexed for inflation will assist airports in modernizing their facilities to accommodate increased competition. DOT may also want to consider modernizing the regulations on air service incentives.
9 Growing International Air Service The consolidated U.S. airline industry is growing its international network. U.S. airports are working with both domestic and foreign airlines for additional international flights. However, there have been a number of instances where staffing issues and CBP funding constraints resulted in the new service being denied by CBP. Additionally inadequate CBP staffing has led to delays in processing arriving international passengers, inconveniencing consumers.
10 Growing International Air Service, Continued Airports and airlines are installing Automated Passport Control (APC) to more efficiently process arriving international passengers. Additionally, ACI-NA and Airside Mobile developed the Mobile Passport Control (MPC) which is now being piloted in Atlanta. Additionally, some airports have signed agreements with CBP to pay for overtime expenses. However, given increasing international travel, increasing CBP staffing is an important consumer issue that should be addressed.
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Monthly Traffic Report il, 20 This Month Calendar Year to Date 20 20 %Chg 20 20 %Chg Total PDX Flight Operations * 21,262 20,818 2.1% 84,051 81,875 2.7% Military 354 419-15.5% 1,481 1,922-22.9% General
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January 218 Air Traffic Statistics Prepared by the Office of Marketing & Consumer Strategy This report includes only data submitted by airlines as of the date of publication: March 21, 218. Reports are
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Monthly Traffic Report This Month Calendar Year to Date 20 20 %Chg 20 20 %Chg Total PDX Flight Operations * 19,211,625 3.1% 233,993 228,949 2.2% Military 9 310-42.3% 3,520 4,144-15.1% General Aviation
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September 217 Air Traffic Statistics Prepared by the Office of Marketing & Consumer Strategy This report includes only data submitted by airlines as of the date of publication: November 15, 217. Reports
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T F Green Airport Monthly Airport Passenger Activity Summary December 2017 Calendar Year Basis Year Year Dec Dec Percent to Date to Date Percent 2017 2016 Change 2017 2016 Change Total Enplaned 175,889
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