A. Approval of the Greenville-Spartanburg Airport Commission July 8, 2013 Regular Meeting Minutes (document).

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1 AGENDA Greenville-Spartanburg Airport Commission Regular Meeting Greenville-Spartanburg International Airport Conference Room at Administrative Offices Monday, September 9, :00 a.m. * NOTE TO ALL PUBLIC ATTENDEES: The public may speak on any item on the agenda. There are request cards located outside the public seating area. These cards must be completed and presented to the Recording Secretary prior to the item being heard. Your comments will be addressed prior to the Airport Commission s discussion and you will have 5 minutes to address the Airport Commission. Thank you for your attention. I. CALL TO ORDER: II. CONSENT AGENDA: A. Approval of the Greenville-Spartanburg Airport Commission July 8, 2013 Regular Meeting Minutes (document). B. Approval of Airport Commission Meeting Dates/Times for Calendar Year 2014 (document). III. PRESENTATIONS: A. GSP 360 Beyond the Runway IV. NEW BUSINESS: A. Adoption of Commission Member Ethics Policy (document). B. Appointment to the Airport Environs Planning Commission (document). C. Approval of Terminal Improvement Program Pre-Core Budget and Authorization to Proceed with Work (document). D. Adoption of the Airport Arts Policy (document).

2 GREENVILLE-SPARTANBURG AIRPORT COMMISSION AGENDA Monday, September 9, 2013 Page 2 V. PRESIDENT/CEO REPORT: A. Aviation Industry Update. B. GSP Airport District Fiscal Year 2012/2013 Annual Audit. C. Update on Current Phasing of Terminal Improvement Project. VI. INFORMATION SECTION: (Staff presentations will not be made on these items. Staff will be available to address any questions the Commission may have.) A. July Traffic Report (documents). B. July Monthly Financial Report (document). C. September Development/Project Status Report (document). D. September 2013 Communications Status Report (document). E. Industry Presentation(s)/Article(s) of Interest (document). F. Potential Items for the Next Regular Scheduled Commission Meeting: Acceptance of Fiscal Year 2012/2013 Annual Audit Report. VII. COMMISSION MEMBER REPORTS: VIII. EXECUTIVE SESSION: The Airport Commission may hold an Executive Session for the purpose of receiving legal advice on various matters. IX. ADJOURNMENT. This agenda of the Greenville-Spartanburg Airport Commission is provided as a matter of convenience to the public. It is not the official agenda. Although every effort is made to provide complete and accurate information to this agenda, the Airport Commission does not warrant or guarantee its accuracy or completeness for any purpose. The agenda is subject to change before or at the Airport Commission meeting GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

3 GREENVILLE-SPARTANBURG AIRPORT COMMISSION MINUTES JULY 8, 2013 The Greenville-Spartanburg Airport Commission met on July 8, 2013 at 9:00 a.m. in the Greenville-Spartanburg Airport District Office Conference Room located at 2000 GSP Drive, Suite 1, Greer, SC MEMBERS PRESENT: Minor Shaw, Hank Ramella, Leland Burch, Valerie Miller, and Doug Smith via telephone. MEMBERS ABSENT: Bill Barnet STAFF AND LEGAL COUNSEL PRESENT: Dave Edwards President/CEO, Kevin Howell Vice President/COO, Jack Murrin Vice President Administration and Finance/CFO, Rosylin Weston Vice President Communications, Larry Estridge WCSR Firm, Wanda Jones Secretary and Bobby Welborn - Police Chief GUEST PRESENT: Nat King Jacobs/GSP, Jim Fair Greertoday.com, Bill Poovey GSA Business, Don Warren Skanska/Moss, Skip Johnson Baker, and Kevin Morris Baker CALL TO ORDER: Chair Minor Shaw called the meeting to order. CONSENT AGENDA: A. Approval of the Greenville-Spartanburg Airport Commission May 13, 2013 Regular Meeting Minutes: A motion was made, seconded, and unanimous vote received to approve the minutes from the May 13, 2013 Commission Meeting. B. Approval of the Greenville-Spartanburg Airport Commission May 29, 2013 Workshop Meeting Minutes: A motion was made, seconded, and unanimous vote received to approve the May 29, 2013 Workshop Meeting Minutes. C. Acceptance of Audit Committee Minutes: A motion was made, seconded, and unanimous vote received to accept the minutes from the Audit Committee. D. Approval to Negotiate and Execute Mutual Aid Agreements with the City of Greer, Greenville County and Spartanburg County for Law Enforcement Assistance:

4 Mr. Edwards commented that historically, the District has had mutual aid agreements with the various police and fire jurisdictions. These agreements provide for the mutual support of police and fire services when needed between the District and the respective jurisdictions. In addition, the execution of such mutual aid agreements opens up grant opportunities. GSP Airport District has received approximately $200,000 over the past two (2) years. Mr. Edwards respectfully requested that the Airport Commission resolve to approve (1) Staff to finalize mutual aid agreements with the City of Greer Police Department, Greenville County and Spartanburg County Sheriff s Departments and (2) authorize the President/CEO to execute said agreements subject to review by legal counsel. A motion was made, seconded, and unanimous vote received to approve the negotiation and execution of Mutual Aid Agreements with the City of Greer, Greenville County and Spartanburg County for Law Enforcement Assistance. PRESENTATIONS: A. Review Impacts of Southwest Airlines for the Community and GSP. Mr. Edwards stated the presentation was the request of Vice-Chair, Hank Ramella. Mr. Murrin will show the Commission how the District s investment in Southwest beginning service at GSP resulted in a positive return for the airport and the community. Mr. Murrin stated a $4.9 million dollar investment was made which composed of landing fees and space rental fees being waived along with a $1.1 million expense for the build-out of operational space and approximately $800 thousand in marketing support. An economic impact study was completed by the same company before Southwest began service and then again after Southwest had been in the market for over 12 months. The Economic Impact Study showed: % Diff Total Local Jobs 3,691 $9, % Total Local Income $112,014,138 $170,491, % Total Local Output $377,525,330 $817,119, % Total Tax Revenues $46,892,898 $112,549, % Mr. Murrin stated airfares have decreased and when comparing the average domestic airfare the gap between GSP and the average has decreased dramatically. Between 2007 and 2012, GSP has had a 12% increase in seats, and a 24% increase in Enplanements. Revenue Passenger Miles has increased 21% and the number of Available Seat Miles has increased about 10%.

5 Historically, GSP has grown 5% per year which is a great historical record. Between 2010 and 2012, GSP had a 47% increase in passenger traffic, which is the Southwest impact. This increase resulted in passenger enplanements being higher than the previous historical high with Independence Air. GSP had an increase of $5.4 million in bottom-line net income (88%) between 2010 and The answer to the question, was the $5 million dollar investment worth it Yes, the financial payback occurred in less than one year. The Commissioners stated the presentation was a great summary and it was important to see the impact of having brought Southwest Airlines to GSP and making sure Southwest stays successful in the community. Mr. Edwards stated GSP created an incentive for Southwest to help them get started and the investment of $5 million was well worth it for the airport and the community. B. Twenty-Year GSP Pro-Forma Update. Mr. Murrin stated this is the fourth (4) projection on the 20-year Pro-Forma. Original assumptions were based on seven (7) Southwest Airlines flights and the economy has changed therefore the forecast has changed. Staff is being conservative. From an investment standpoint as yields increase, GSP s historical average yield has been in excess of 3%. Staff has also assumed going forward twenty (20) years expenses would continue to increase 4% per year. All bonds have been paid off except for three (3) million which is the Rental Car Maintenance Facility; it is a non-callable bond. GSP reached a high point in our portfolio of $88 million on June 30, 2012, as of a few weeks ago the portfolio was at $77 million. Mr. Edwards stated that GSP is in really good shape financially and being able to deliver the new facilities for the future in a way that is financially sound is great. Staff feels good about the conservative estimates both on the investment side and the enplanement side. The Commission thanked Mr. Murrin for an excellent presentation. OLD BUSINESS: None. NEW BUSINESS: A. Approval of Resolution Supporting South Carolina Aviation Week. Mr. Edwards stated Governor Haley has identified August 19 th August 23 rd as Aviation Week in the State of South Carolina. Mr. Bill New of the Charleston International Airport is the current President of the South Carolina Aviation Association and has asked that GSP and others around the state to adopt a resolution supporting Aviation Week. Through our Communications Department,

6 GSP would market this through social media (twitter, Facebook, and GSP website). Mr. Edwards stated air travel is critically important for the State of South Carolina and he is pleased that the Governor has recognized that aviation is an important element in transportation. Mr. Edwards respectfully requested that the Airport Commission resolve to approve the proposed resolution supporting Aviation Week in South Carolina. A motion was made, seconded and unanimous vote received to approve the resolution supporting Aviation Week in South Carolina. PRESIDENT/CEO REPORT: A. Aviation Industry Report: Mr. Edwards stated the US Airways/American merger is still ongoing. Some states have come forward in opposition of the merger which revolves around the slots at the Reagan National Airport. Staff is keeping a close eye on the merger since it is critical for GSP to keep the service into Reagan in place. Mr. Edwards stated former Mayor Foxx of Charlotte was confirmed as the New Secretary of Transportation. Mr. Edwards will have a meeting with him in August as part of his role at ACI. Mr. Edwards briefly discussed the recent Asiana plane crash at San Francisco Airport. Mr. Edwards stated air travel is the safest in transportation and the industry does a good job in maintaining safety. The incident is very unfortunate but Mr. Edwards does not think it will have a lasting impact on the industry. B. GSP Marketing/Public Relations Awards Received from ACI-NA: Mr. Edwards stated at the June Marketing and JumpStart Conference this year that GSP received first place for Wingspan Elevating the Upstate and third place for Special Events for the GSP 50 th Anniversary Celebration. Mr. Edwards and the Commission thanked Ms. Weston and her team for a terrific job. C. Update on June 20, 2013 Southwest Airlines Meeting: Mr. Edwards discussed the meeting he had with Route Planning at Southwest Airlines. Mr. Edwards recapped that the Orlando MCO service will end in August and the Baltimore/Washington BWI service will go to one (1) flight in October. This is part of Southwest s right sizing of their entire network and trying to maximize aircraft utilization and profitability. Staff will be having another meeting soon to discuss marketing. The Southwest brand awareness continues to be important. Mr. Edwards pointed out, GSP would not be

7 successful without the other carriers at GSP and being respectful to them is important. From a financial cost perspective, Southwest may give back one gate to help reduce cost. Chair Shaw asked what is the time of the remaining BWI flight. Mr. Edwards stated it is an afternoon flight. Mr. Edwards stated Staff will be looking at airfare related items also. Everyone at the meeting was very positive and Southwest stated they want to be successful at GSP and are here for the long haul. D. Terminal Improvement Program Core/Concourse Project Cost Estimate Update: Mr. Edwards stated the initial cost estimate on 30% design looked good and in June, Mr. King led an value engineering effort where a potential $2 million in savings can be explored. In the monthly construction update, you may see some discussion of rain delay requests. Chair Shaw asked from a time standpoint, when the new baggage claim will be ready. Mr. Edwards stated approximately November 15 th. Around August 8 th more work will begin on the front curb area to prepare for the installation of the glass curtainwall. Skanska Moss has done a tremendous job of being non-impactful with the project to the traveling public; however, it will get impactful soon. Staff is trying to educate tenants and the public of what to expect especially when portions of the front curb shuts down. Chair Shaw commented let s do whatever it takes during construction to maintain a proper level of customer service, even if it means adding extra people. Mr. Edwards stated Staff will keep that in mind. Extra people were added for passenger assistance at the elevator. Mr. Edwards stated Police Staff will be managing the curbside and getting people educated about the cell phone lot. Mr. Ramella asked if the curtain wall will be visible as it is being installed. Mr. Edwards stated yes. Mr. Edwards informed the Commission of a new pilot program at the airport Fly and Shine. Fly and Shine is a company located in Greer called Precision Detailing. Management of Fly and Shine approached Staff about setting up an additional service at the airport to provide traveling passengers with the opportunity to have their car detailed while traveling. They offer a hand wash to a full detail with varying prices. Ms. Miller asked how it would work. Mr. Edwards explained people would be directed to the basement of Garage B by signage, leave their keys in a drop box, and fill out paperwork of the vehicle service they would like and upon return of the passenger they would be given a code in order to pick up their keys and car. Mr. Edwards stated research showed that other airports have been successful with this type of service and hopefully it will be long term at GSP.

8 Mr. Ramella stated he liked the open/closed signs in the garage. Mr. Edwards stated one of the challenges was being able to notify people when the Sky lot filled up and with the new signage it allows people to know what is full before entering the garage. Chair Shaw stated that as a customer service to the traveling public, as we are going into the next phase of the project, this may be a good time to look into valet parking, even if temporary. Mr. Edwards agreed to look into valet parking. Chair Shaw asked if customers were using the parking reservation system. Ms. Weston stated yes, it has its peaks and valleys, and Staff continues to hear positive comments concerning the reservation system. Chair Shaw asked if additional coverage has been added to the elevators in the garage. Mr. Edwards stated Staff wanted to wait until the Rental Car Centers were finished in the garage but will be looking into. Mr. Howell gave a brief update on the Daniel Fountain. The fountain was installed in 1970 and recently, Facilities has had numerous calls about the fountain not working. There was a budget item to rehabilitate the fountain which included relining the basin and replacing the pump. Mr. Howell showed pictures of the work being done. Mr. Edwards stated when complete there should be a significant reduction in water consumption. INFORMATION SECTION: Potential items for the next meeting on September 8, 2013: Approval of an Ethics policy for the Commission members. COMMISSION MEMBER REPORTS: None ADJOURNMENT: There being no further business, a motion was made, seconded and adopted to go into Executive Session to discuss legal and personnel matters at 11:15 am. It was announced no actions would be taken during the Executive Session. At the end of Executive Session, at approximately 1:00 p.m., the meeting was adjourned.

9 MEMORANDUM TO: FROM: Members of the Airport Commission David Edwards, President/CEO DATE: September 9, 2013 ITEM DESCRIPTION Consent Agenda Item B Approval of Airport Commission Meeting Dates/Times for Calendar Year 2014 BACKGROUND During Calendar Year 2013 the Airport Commission scheduled regular Commission meetings every other month during the year. The meetings have been held on the 2 nd Monday of the month at 9:00 a.m. ISSUES Staff recommends continuing to schedule the regular Airport Commission meeting every other month at 9:00 a.m. for Calendar Year The proposed meeting dates are as follows: ALTERNATIVES None recommended. January 27, 2014 March 17, 2014 May 12, 2014 July 14, 2014 September 22, 2014 November 10, GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

10 Greenville-Spartanburg Airport Commission Consent Agenda Item B Approval of Airport Commission Meeting Dates/Times for Calendar Year 2014 Page 2 FISCAL IMPACT None. RECOMMENDED ACTION It is respectfully requested that the Airport Commission resolve to approve the Airport Commission Meeting Dates/Times for Calendar Year 2014 as outlined above GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

11 MEMORANDUM TO: FROM: Members of the Airport Commission Kevin E. Howell, Vice President/COO DATE: September 9, 2013 ITEM DESCRIPTION Presentation Item A GSP360 Website Presentation BACKGROUND In November 2012, the Airport Commission adopted the Greenville-Spartanburg International Airport Land Use Planning & Development Study (Study). The final tasks for the Study, which had been branded GSP360 Beyond the Runway, included the development of a website and the graphic design for collateral marketing materials that will be used by Staff for marketing and development purposes. An overview of the GSP360 website will be provided to the Commission GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

12 MEMORANDUM TO: FROM: Members of the Airport Commission David Edwards, President/CEO DATE: September 9, 2013 ITEM DESCRIPTION New Business Item A Adoption of Greenville-Spartanburg Airport Commission Member Ethics Policy and Statement BACKGROUND Members of the Greenville-Spartanburg Airport Commission have a need to act ethically in carrying out their duties as Airport Commission members and therefore should have a formal adopted ethics policy and statement. ISSUES There is currently no formal ethics policy and statement specifically for Airport Commission Members. It was requested by several Airport Commission Members that Staff and Legal Counsel prepare an ethics policy and statement for adoption by the Airport Commission. ALTERNATIVES The Airport Commission could choose to revise the draft ethics policy and statement or determine that it is not necessary. FISCAL IMPACT None GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

13 Greenville-Spartanburg Airport Commission New Business Item A Adoption of Greenville-Spartanburg Airport Commission Member Ethics Policy and Statement Page 2 RECOMMENDED ACTION It is respectfully requested that the Airport Commission adopt the attached Ethics Policy and Statement for inclusion in the Administrative Policies and Procedures of the Greenville-Spartanburg Airport District. Attachment 2000 GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

14 New Business Item A Attachment Note Legal Counsel is currently finalizing the draft ethics policy and statement as well as reviewing SC State Ethics laws that may already be applicable. The actual draft policy and statement will be sent prior to the Commission Meeting on September 9, 2013.

15 MEMORANDUM TO: FROM: Members of the Airport Commission David Edwards, President/CEO DATE: September 9, 2013 ITEM DESCRIPTION New Business Item B Appointment of Airport Commission Member to Airport Environs Planning Commission BACKGROUND The Airport Environs Planning Commission is made up of nine (9) Board Members, two from Spartanburg County, two from Greenville County, two from the City of Greer, two from the Airport Commission and one from the Town of Duncan. Members are appointed for two-year terms. ISSUES The Airport Commission is responsible for appointing two Board Members to the Airport Environs Planning Commission. The terms are staggered therefore requiring an appointment every year. The Airport Commission has historically appointed one member from Greenville County and one member from Spartanburg County, with one of the two members being an Airport Commission member. The term for Jim Whitten representing the Airport Commission expires September 30, The Airport Commission needs to appoint or re-appoint an Airport Commission member to the Airport Environs Planning Commission. ALTERNATIVES The Airport Commission could decide to change its practice of appointing an Airport Commission member to the Airport Environs Planning Commission GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

16 Greenville-Spartanburg Airport Commission New Business Item B Appointment of Airport Commission Member to Airport Environs Planning Commission Page 2 FISCAL IMPACT None. RECOMMENDED ACTION It is respectfully requested that the Airport Commission resolve to reappoint Jim Whitten to the Airport Environs Planning Commission GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

17 MEMORANDUM TO: FROM: Members of the Airport Commission David N. Edwards, Jr., President/CEO DATE: September 9, 2013 ITEM DESCRIPTION New Business Item C Approval of Terminal Improvement Program Pre-Core Budget and Authorization to Proceed with Work BACKGROUND The next package of work for Terminal Improvement Program (TIP) is the Core/Concourse Package. The work included in this package is the complete renovation of the center core area including ticketing, baggage make-up and the Windows restaurant area, and the both the A & B Concourses. The initial work to being the Core/Concourse Package is being termed as the Pre-Core Package. ISSUES In order to allow the construction team to move seamlessly into the Core/Concourse Package work, there is some advanced work that needs to be accomplished to minimize the impact on the overall construction schedule. The Staff, Program Manager, Design Team, and Construction Team have identified that by moving forward with the Pre-Core Package, there will be an approximate $750,000 savings in general conditions costs due to a three (3) month savings of construction time. ALTERNATIVES The Commission could decide to delay moving forward with the Pre-Core Package and accomplished such work once the Enabling and Baggage Claim/South Bridge Packages are completed GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg:

18 GSP Airport Commission New Business Item C Approval of Terminal Improvement Program Pre-Core Budget and Authorization to Proceed with Work Page 2 FISCAL IMPACT The estimated budget for the Pre-Core Package is $4.245 million (see attachment). The overall TIP budget remains unchanged at $115 million as approved. RECOMMENDED ACTION It is respectfully requested that the Airport Commission (1) approve the Approval of Terminal Improvement Program Pre-Core Budget in the amount of $4.245 million; and (2) authorize the President/CEO to negotiate a final Component Guaranteed Maximum Price with Skanska/Moss (Construction Manager at Risk) for this phase of the project not-to-exceed $4.245 million and execute the necessary documents to complete the work. Attachment 2000 GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg:

19 CGMP Budget Estimate Terminal Improvement Program - Pre-Core Construction Package August 30, 2013 Item CGMP Amount Pre-Core Package Cost of Work BP Demo 22,945 BP Earthwork/Utilities 4,650 BP Landscape and Irrigation 4,000 BP Concrete 11,955 BP Unit Masonary 17,600 BP Structural and Misc Steel 624,800 BP Waterproofing/Roofing/Fireproofing/Stucco 10,950 BP Mechanical/Fire Protection/Plumbing/HVAC 1,174,600 BP Misc Architectural Finishes 50,000 BP Electrical 1,478,500 Sub-Total Pre-Core Package $ 3,400,000 Total Direct Cost of Work $ 3,400,000 Subguard % $ 45,900 $ 3,445,900 GCs - LS 7.69% $ 265,000 $ 3,710,900 CM Fee - 3.6% $ 133,592 $ 3,844,492 Contingency - 4.0% $ 137,836 $ 3,982,328 General Liability 0.80% $ 31,859 Building Permit 0.08% $ 3,211 CMR P&P Bond 0.63% $ 25,310 $ 4,042,708

20 Owner Reserve - 5.0% $ 202,135 Total Budget Estimate $ 4,244,843

21 MEMORANDUM TO: From: Members of the Airport Commission Rosylin Weston, V.P. Communications DATE: September 9, 2013 ITEM DESCRIPTION New Business Item D Approval of the Greenville-Spartanburg Airport District Arts Policy BACKGROUND The Arts Task Force was established to examine how the District positions the Arts Program moving forward and to establish arts guidelines. The Arts Policy was created in collaboration with the Airports Task Force which included GSP Airport Commissioners Valerie Miller, Doug Smith and Bill Barnet. ISSUES The WINGSPAN Program creates an opportunity for the District to enhance the customer experience by the strategic placement of art throughout the terminal. To achieve a consistent and organized approach to the acquisition of artwork, formal arts policy guidelines need to be established. Currently no guidelines exist. ALTERNATIVES None recommended. However, the Greenville-Spartanburg Airport Commission could decide to make revisions to the proposed arts policy GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

22 Greenville-Spartanburg Airport Commission New Business Agenda Item D Approval of Airport Arts Policy Page 2 FISCAL IMPACT None. RECOMMENDED ACTION It is respectfully requested that the Airport Commission resolve to approve the Greenville-Spartanburg Airport Arts Policy as attached GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

23 Organizational Policy & Procedure Section Art Policy Administrative SECTION ART POLICY Objective Method of Operation Definitions To enhance the Greenville-Spartanburg Airport District s (District) cultural composition by providing for an encouraging the exhibition of art in the terminal through public art displays, a changing art exhibit and performing arts space. The Art Advisory Council (AAC) shall be established for recommending public art displays to the Greenville-Spartanburg International Airport Commission (Commission) for review and final approval. Artist participating in the performing arts series and the rotating exhibits shall be screened and selected by the Greenville- Spartanburg Airport District Staff (Staff). Art Advisory Council (AAC) - The AAC is responsible for reviewing and recommending Artists for inclusion in the Greenville- Spartanburg International Airport (GSP) Arts Program including the public art displays. Staff will select and schedule artists participating in the performing arts series and the rotating exhibits. Artist - A person who has a reputation of Artistic excellence, as noted by peers, record of exhibitions, public commissions, sale of work(s), educational attainment or other means of recognition. Artwork Work designed by a professional Artist and produced by a professional artist for a public project or place or for private sale. Commission Opportunities Integrated or Site-Specific Artworks designed by Artists that directly respond to the special conditions of a given location or space. Public Art Display Works obtained specifically for GSP. The intent is to develop a vast collection of artworks that complement the terminal space and enhance the customer experience. These pieces could also serve to educate visitors about Upstate South Carolina.

24 Organizational Policy & Procedure Section Art Policy Administrative Rotating Exhibit These exhibits would include works from local and regional artists. The intent of this program would be to showcase the diversity of arts and culture within the Upstate Region. Rotating Exhibits would provide GSP with an opportunity to support the local arts community by offering a high profile venue for local artist to display their work. This space would also be available to display art works by local and regional school children. Performing Arts Series Provides a venue to recognize and celebrate local and regional talent of all cultures. In this space, visitors to the terminal will be entertained by a wide variety of artist on a regular basis. The Performing Arts Series would create atmosphere and ambiance within the terminal facilities at GSP. Deaccessioning To remove and sell a work of art from a museum or gallery s collection. Goals and Objectives Art Advisory Council (AAC) Use Public Art to enhance the identity of the Airport locally, regionally, nationally and internationally. Contribute to the visual character and texture of the airport. Recognize that GSP is a first-class airport and foster the creation of Artworks that further that image. Enhance the customer experience in public spaces. Utilize Public Art as a mechanize to convey the unique culture of the Upstate. Select works that recognize the diversity of those using the airport. Ensure opportunities for Artworks of varying scales, venues and media. Ensure opportunities to highlight local artist through the Rotating Exhibits Program and the Performing Arts Series. The AAC shall consist of seven (7) members as follows: One (1) member as appointed by the Commission.

25 Organizational Policy & Procedure Section Art Policy Administrative Three Representatives of the Spartanburg Arts community as nominated or recommended from the Spartanburg County Arts Commission. Three representatives of the Greenville Arts community as nominated or recommended from the Greenville County Arts Commission. Special attention shall be given to ensure that representation recognizes the cultural diversity of the Upstate Region. The GSP- AAC shall be supported by staff members of the District Communications Department. Responsibilities The AAC shall ensure adherence to the goals and objectives set forth in Arts in the Airport guidelines. Specifically they shall: Recommend to the Commission artist and artwork from qualified applicants. Take the lead in recommending artwork for the public displays. Assist staff in determining the placement of artwork in the public exhibits and the rotating exhibits. Serve in 24 month intervals with a maximum of 6 years of service per individual. Term limits do not apply to District Staff. The AAC will meet on an as needed basis with a standard meeting. notice of at least 30 days. Special meetings may be called with shorter meeting notice if necessary. If an appointed member resigns or becomes disassociated with the organization he/she represents, that member s organization shall appoint a new AAC member, who will serve the balance of the term. Artist Application 1. Requirements A. To be considered for the rotating exhibit, artist must submit at least three (3) and up to six (6) pieces of artwork and must include:

26 Organizational Policy & Procedure Section Art Policy Administrative a. A completed Artist Application form (See attachment A). b. A one page or less double spaced artist biography. c. A brief (50 words or less) description of each work submitted include retail value or sale price. d. A full-color photograph of each work submitted in a JPEG on a flash drive all work can be displayed on a single flash drive. B. Artist will be required to sign an artwork loan agreement (See attachment B) C. Applications are available on the GSP website at or at the District office. Completed applications may be submitted via USPS or by express mail service to 2000 GSP Drive Suite 1, Greer, SC Restrictions A. There is no limit to the number of times an Artist may apply however each new application must be a full application including all of the items listed above. B. An Artist may be selected for the rotating exhibit no more than once per calendar year. Artists who have work on display as a part of the public art display may also participate no more than once annually in the rotating exhibit and may participate in the performing arts series with no limitations. 3. Deadlines A. Rotating Exhibition dates will be determined by staff and posted or made otherwise available to the general public. B. Completed application packages must be received no later than five weeks prior to the opening of the exhibition.

27 Organizational Policy & Procedure Section Art Policy Administrative Artist & Artwork Selection General Criteria Acquisitions of artwork whether by commission, purchase, gift or other means should further the general goals and objectives of the GSP Art Program and meet the follow specific criteria: 1. Artist Selection A. Relevant experience The experience and professional record of the Artist(s) should provide convincing evidence of ability to successfully complete the project as proposed. B. The AAC reserves the right to request references relative to the Artist s work. C. The AAC shall review all completed applications submitted by Artists and recommend artist to participate in the acquisition of public art. 1. Artwork Selection Notification of Selection A. The AAC shall recommend works to the Commission to be displayed in the public art displays. Selections shall be based in part on: a. Artistic Merit The inherent quality and excellence of a proposed artwork together with the strength of the artist s concept and design capabilities are the program s highest priorities. b. Context Artwork must be compatible in scale, material, form and content with the intended display area. c. Originality/Innovation. d. Durability relative to theft, vandalism and the environment. e. Diversity Artwork will be sought from Artists of diverse ethnic and cultural identities and from local, regional, national and international artist. f. The decision to accept or deny an Artist or that Artist s work is not subject to appeal by the Artist. 1. Selected Artists will be notified within five (5) business days after the AAC has reviewed all application packages and the Commission has made its decision.

28 Organizational Policy & Procedure Section Art Policy Administrative 2. Artist must contact the GSP Communications department within seven (7) days of notification to confirm participation, the exhibit dates and arrange a date to install Artwork and sign the loan agreement (See Attachment) Failure to do so will result in forfeiture of selection and an alternate Artist will be selected. Preparation of Selected Artwork Displaying Artwork Selected Artwork must be appropriately prepared for display by the Artist. For Artwork in the rotating exhibition, the Artist should be prepared to cover the cost of transportation, storage if necessary, installation and any reasonable unforeseen circumstances. The Artist should also be prepared to provide a security locking mechanism for hanging works and stabilization for pedestal or showcase displays. 1. Location of Artwork will: A. Be designated by GSP staff. B. Be placed in the best possible location to allow viewing from multiple angles. C. Be sufficiently lighted. 2. Protection A. Insurance The District shall provide insurance coverage for the duration of each exhibit (See Attachment C). B. Staff shall conduct weekly inspections of the works found in the rotating exhibit and will record any damage. If any damage is found, the Artist will be immediately notified and an insurance claim filed. (See Attachment D&E). 3. Right of removal and/or relocation A. The District and/or the AAC reserve the right to remove and /or replace with notice but at its sole discretion, any artwork at any time for any reason.

29 Organizational Policy & Procedure Section Art Policy Administrative Delivery, Installation And Removal of Artwork Sale of Artwork B. Artwork removed must be retrieved by the artist within 72- hours of notice to remove. C. The District and/or the arts council reserve the right to relocate artwork within the terminal for any reason. Artists whose work is affected will be notified in writing. 1. The Artist, or designee, is responsible for delivering or having delivered all Artwork to the Communications Department at least 72 hours before the scheduled opening of the rotating exhibit. 2. Installation is to be completed by the Artist with the assistance of the Communications Department and/or the airport Facilities Department. The artist will be given a copy of the loan agreement once installation is completed. 3. The Artist, or designee, must reclaim all work within 72 hours after the close of the exhibit. Artist will inspect and sign for the return of all Artwork. This signed inspection is part of the loan agreement (See Attachment B). A. Artwork on display as part of the Rotating Exhibit may be available for sale to the general public. B. The Artist will establish the price of each piece of artwork and that price shall be displayed on a place card and/or promotional materials available to the general public. C. Potential buyers shall contact the Communications Department of the District to facilitate purchase. D. Buyers must sign a purchase agreement and pay cash, money order, check, debit or credit card (See Attachment F). E. The District will retain a 20% commission of the purchase price. This fee will be deposited into the general fund for the continued support/funding of the GSP Art Program.

30 Organizational Policy & Procedure Section Art Policy Administrative F. All purchased Artwork must remain on display until the conclusion of the rotating exhibit. G. At the conclusion of the exhibit, staff will ensure the delivery of all purchased pieces to the new owner(s). Local delivery shall take place within five (5) business days unless otherwise noted. If item is to be shipped, the buyer must: a. Arrange for pick-up and shipping b. If the District staff facilitates shipping, there will be an administrative fee of $25.00 H. If the Artwork is damaged while on display, the buyer shall have the right to cancel their purchase agreement (See Attachment F). I. The Artist shall receive a copy of the purchase agreement along with payment once the term has been shipped and received by the buyer. 1. While the Commission will always acquire objects for the public collection with the intent to keep those objects as permanent, it may become necessary from time to time to deaccess some pieces. Artwork may be recommended for Deaccession if one or more of the following criteria are met: A. The site where the Artwork is installed is being eliminated. B. The site is being altered and as such, the Artwork is no longer compatible. C. The security of the Artwork can no longer be reasonably guaranteed. D. The Artwork has become a danger to public safety. E. The cost of maintaining and or updating the Artwork s operating technology is cost prohibitive. F. Significant adverse reaction to the Artwork from the community has continued for an extended period of time (at least three years).

31 Organizational Policy & Procedure Section Art Policy Administrative G. The Artwork no longer functions or the appearance has fallen below an acceptable standard of public display according to the Commission. H. The Commission deems removal as necessary for whatever reason.

32 Artist Application Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) Artist Information Name: Date: Address: Street City State Zip County Primary Phone: Secondary Phone: Alternate Contact Person: Alternate s Phone: Artwork Information [Please list the FINISHED, FRAMED (if applicable size of the piece] Title of Work Dimensions Medium/Materials Retail Value For Sale? Artist Biography In order to be considered for Art in Airport, please be sure to attach: -One full-color photograph of each work listed above (JPEGs on CD; no more than 2MB each) -A brief (50 words or less) description of each work listed above -A current artist photograph head-shot only (JPEGs on CD; no more than 2MB) Attachment A

33 Artist Information Loan Agreement Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) Name: Date: Address: Primary Phone: Secondary Phone: Title of Work Dimensions Medium/Materials Retail Value Conditions Governing Loans 1. LOAN- Lender agrees to loan the objects described on the face of this Loan Agreement (Artwork) to the Greenville Spartanburg Airport District (Borrower) for the Borrower s Art in the Airport Program subject to and in accordance with the terms and conditions of this Agreement. 2. GENERAL The term of the loan shall commence when Artwork is received by the Borrower, and shall run for the period of time specified on the face of this agreement, plus a reasonable amount of time to return Artwork to the Lender. Parties may agree to extend the term of the loan in writing. The Borrower reserves the right to remove and or replace, at its sole discretion, any Artwork deemed offensive or inappropriate by the Borrower. If such removal occurs with the Artwork listed herein, the Lender will be notified. Artwork removed by the Borrower must be reclaimed by the Lender no later than 72-hours after notification of removal. The Borrower reserves the right to relocate Artwork within the terminal for any reason, including but not limited to viewing opportunity, terminal construction, and advertising space. If such relocation occurs with Artwork listed herein, the Lender will be notified. Attachment B Page 1

34 Loan Agreement, cont. Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) TRANSPORTATION AND INSTALLATION - The Lender shall be responsible for, bear all costs of and assume all risks for transportation of the Artwork to the Borrower. The Lender is responsible for unpacking and installing all Artwork at the time of delivery and will be responsible for the condition and safe handling of the artwork until the Artwork is installed. Artwork installed in gallery spaces shall be done so with the supervision, help and escort of the GSP Communications Department. Final responsibility of mounting and placing/hanging the artwork rests with the Lender or designee. The Lender agrees that the display methods, location and environment agreed upon for the artwork at the time of custody of transfer to the Borrower is acceptable for the duration of the loan. Care and custody of the Artwork will be transferred to the Borrower when the Artwork has been installed. The Lender is responsible for picking up the Artwork from the airport within 72-hours of the exhibit conclusion. The Borrower shall assume no risk or responsibility for providing materials or labor to pack the Artwork for transit. No Artwork on loan may be withdrawn by Lender for the duration of this agreement, unless agreed upon by both parties. 4. CARE and PRESERVATION - The Lender certifies the Artwork is in good condition at the time of installation. The Borrower shall conduct weekly inspections of Exhibits and should any damage be noted, the Borrower shall notify the Lender and fill necessary claims. 5. INSURANCE The Borrower will insure exhibited Artwork for the Insurance Value specified on the face of this agreement against all risks of physical loss or damage from any external cause until the Lender removes the Artwork from its installed location. The Greenville-Spartanburg Airport District s Insurance Policy contains the usual exclusions of loss or damage due to such causes as gradual deterioration, moths, vermin, war, invasion, hostilities, insurrection, confiscation by order of any government or public authority, risks of contraband or illegal transportation and/or trade. The Borrower will be responsible and liable for the Artwork only during the exhibit period. If requested, a certificate of insurance will be sent. If the Lender chooses to maintain his own insurance, the Borrower must be supplied with a certificate of insurance naming the Borrower as an additional assured, and a waiver of subrogation in favor of the Borrower. If the Lender shall fail to supply the Borrower with such a certificate, this loan agreement shall constitute a release of the Borrower from any liability in connection with the Artwork. The Borrower cannot accept responsibility for any error or deficiency in information furnished to the Lender s insurer or for any lapses in coverage. Damage claims made by the Lender must be submitted in writing to the Airport President/CEO within 24-hours of the return receipt of artwork by the Lender or designee. 6. PUBLICITY AND PHOTOGRAPHY Unless otherwise specified on the face of this Loan Agreement, it is understood that the Artwork may be photographed and reproduced in Greenville-Spartanburg Airport District printed materials, website, and for publicity purposes connected with this exhibition. In addition, the artwork may be photographed or videotaped for electronic media. Attachment B Page 2

35 Loan Agreement, cont. Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) SALES Airport District Staff will handle all sales of Artwork for the duration of the exhibit and shall notify the Lender of any sales transactions. The Borrower will retain a 20% commission on all Artwork sold while on display. Buyers shall remit payment to the Greenville-Spartanburg Airport District. The Lender will be issued a check for the remaining 80% less any applicable sales tax, which will be remitted to the South Carolina Department of Revenue by the Airport District. The Lender must complete a W-9 prior to receiving any sales payment from the Airport District. The Lender shall be responsible for all State and Federal income taxes. Artwork sold while on exhibit must remain on display for the duration of the specified loan period. The Lender is solely responsible for packaging artwork for shipping. 8. RETURN OF ARTWORK With the exception of an artwork sale, the Lender or designee must arrange to reclaim Artwork within 72-hours of the exhibit conclusion. The Artwork will be released to the Lender or designee upon completion of the release receipt at the expiration of the loan. Damage claims must be made in writing within 24-hours of the Artwork s return. If the Borrower is unable to contact the Lender, no special arrangements have been made for the return of the loaned Artwork, or the Lender fails to reclaim the Artwork at the designated time, the Borrower may continue to display the Artwork, or it may place the Artwork in storage at the Lender s risk and expense. Artwork left with the Borrower for a period of at least sixty (6) days after the exhibit has concluded will become the property of the Borrower. It is the responsibility of the Lender to contact the Borrower regarding any change of address, phone number or address. I have read and agree to the terms and conditions as stated on the pages of this LOAN AGREEMENT. Lender Signature: Date of Artwork Loan: Airport District Representative: Date: I certify the Artwork listed within this agreement is being returned without damage. Lender Signature: Date of Return: Airport District Representative Date: Attachment B Page 3

36 Insurance Value Log Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) Exhibit Number: Exhibit Dates: ID# Artwork Title Dimensions Medium/Materials Value Total Declared Value of Artwork Attachment C

37 Inspection Log Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) Exhibit Number: Exhibit Dates: Date Time Inspector Name Number of Pieces Damaged Damaged Artwork ID Numbers At the conclusion of the exhibit period, please return this form to the District Communications Department Attachment D

38 Damage Report Greenville-Spartanburg Airport District 2000 GSP Drive, Suite 1, Greenville, SC Ph: (864) fax: (864) Exhibit Number: Exhibit Dates: Inspection Information Inspector Name: Date: Damaged Artwork Number: Artist Name: Damage Description: Notification Record Artist Contacted On: Insurance Contacted On: Photographs Before Damage After Damage Attachment E

39 Purchase Agreement Greenville Spartanburg International Airport 2000 GSP Drive Suite 1 Greer, SC Purchaser Information Name: Shipping Address: Primary Phone: Secondary Phone: Artwork/Artist Information Title of the work(s) Artist Medium/Materials Sale Price Shipping information Subtotal: Company: Shipping: Phone Number: Tax: Weight/Dimensions: Handling Fee: Estimated Cost: Total Sale: CONDITIONS GOVERNING PURCHASE Items Buyer will make payment by check, money order or cash to the Greenville Spartanburg Airport District. Buyer understands the artwork is to remain on display for the entire exhibit period. 2. Buyer must arrange for pick-up and/or shipment of the artwork upon signing this purchase agreement. Pick-up and/or shipment will take place within five (5) business days of the exhibit conclusion. 3. Airport District is not responsible for the packaging of shipped artwork. 4. All sales are final. 5. Should the artwork be shipped, the buyer agrees to purchase insurance and pay a $15.00 handling fee charged by the District for delivery of the artwork to the third party shipper. 6. As a courtesy, Airport District will provide a shipping estimate to the Buyer. 7. The Airport District is not responsible for alterations to the shipping charges by the third party shipper. The Buyer agrees to pay all shipping fees, including any charges exceeding the shipping estimate. 8. The Airport District is not responsible for any damage to or lost or stolen artwork once the artwork is in the possession of the third party shipper. 9. Damage to artwork (listed above) occurring during the duration of the exhibit, and after payment has been received by the Airport District, gives the purchaser the right to withdrawal from this purchase agreement. 10. The Airport District shall refund such payment for the damaged piece should the buyer choose this option. 11. The buyer must pay all applicable sales taxes. 12. The Airport District retains the right utilize photos and/or any electronic reproduction of the artwork. Buyer Signature: Airport District Representative: Artwork Received: Date of Artwork Sale: Date: Date: Attachment F

40 MEMORANDUM TO: FROM: Members of Airport Commission David Edwards, President/CEO DATE: September 9, 2013 PRESIDENT/CEO SREPORT: A. Aviation Industry Update B. GSP Airport District Fiscal Year 2012/2013 Annual Audit C. Update on Current Phasing of Terminal Improvement Project GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

41 MEMORANDUM TO: FROM: Members of the Airport Commission David Edwards, President/CEO DATE: September 9, 2013 ITEM DESCRIPTION Information Section Item A July Traffic Report SUMMARY For July 2013 passenger traffic was down 1.5% over the same month in Cargo traffic was up 5.0% for July 2013 over July On a moving twelve month basis passenger is down slightly at 1.1%. On a national basis domestic passenger and cargo traffic numbers were not available. Providing a look forward into the service levels for the upcoming month is a schedule comparison for the month vs the same month last year including flights and seats by airline and non-stop market served. Attached is a copy of the detailed traffic report for July GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

42 Monthly Traffic Report Greenville-Spartanburg International Airport July 2013 Percentage Percentage Category Jul 2013 Jul 2012 Change *CYTD-2013 *CYTD-2012 Change *MOV *MOV Percentage Change Passenger Traffic Enplaned 83,247 84, % 523, ,927 Deplaned 81,874 82, % 515, ,910 Total 165, , % 1,039,016 1,065, % -2.5% -2.5% 918, , % 910, , % 1,829,495 1,850, % Cargo Traffic (Pounds) Mail Enplaned Deplaned Subtotal 0 0 #Num! 0 0 #Num! 0 0 #Num! #Num! #Div/0! #Div/0! #Num! -57.2% -57.2% Express Enplaned Deplaned Subtotal Freight Enplaned Deplaned Subtotal 4,738 3,687 8,425 5,127 1,487 6, % 147.9% 27.4% 2,677,305 1,967,823 2,192,771 2,231, % -11.8% 4,645,128 4,424, % 30,338 38,267 23,636 26,821 53,974 65,088 18,766,992 15,773,399 14,792,317 17,024,009 33,559,309 32,797, % -11.9% -17.1% 19.0% -13.1% 2.3% 54,791 91,466 45,745 50, , ,288 31,636,131 27,094,750 26,556,379 30,790,997 58,192,510 57,885, % -10.0% -29.3% 16.8% -13.8% 0.5% Total 4,653,553 4,431, % 33,613,366 32,862, % 58,293,129 58,028, % *CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months. Friday, August 30, 2013 Page 1 of 2

43 Monthly Traffic Report Greenville-Spartanburg International Airport July 2013 Percentage Percentage Category Jul 2013 Jul 2012 Change *CYTD-2013 *CYTD-2012 Change *MOV *MOV Percentage Change Aircraft Operations Airlines Commuter /Air Taxi 1,019 1,025 2,079 2, % -8.8% 6,578 14,601 6,894 15, % -7.0% 11,698 25,550 11,745 27, % -7.2% Subtotal 3,098 3, % 21,179 22, % 37,248 39, % General Aviation % 5,493 5, % 9,592 9, % Military % % 1,285 1, % Subtotal % 6,219 6, % 10,877 10, % Total 4,017 4, % 27,398 29, % 48,125 50, % Fuel Gallons 100LL Jet A (GA) Subtotal Jet A (A/L) Total 2,298 63, ,162 1,970 65, , % -3.6% 17, ,160 19, , % 11.8% 31, ,732 33, ,162 65,698 67, % 506, , % 881, , % 6.4% 5,951,795 5,983, % 10,611,303 10,936, % 1,004, , % 6,457,817 6,439, % 11,492,732 11,731, % -5.1% 11.5% *CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months. Friday, August 30, 2013 Page 2 of 2

44 Scheduled Airline Enplanements, Seats, and Load Factors Greenville-Spartanburg International Airport July 2013 Jul 2013 Jul 2012 Percentage Change *CYTD-2013 *CYTD-2012 Percentage Change Allegiant Air Enplanements 8,865 8, % 46,169 49, % Seats 9,450 9, % 49,350 54, % Load Factor 93.8% 90.0% 4.3% 93.6% 90.0% 4.0% American Airlines Enplanements 3,984 4, % 25,550 28, % Seats 4,500 4, % 30,108 33, % Load Factor 88.5% 92.4% -4.2% 84.9% 83.7% 1.4% Delta Air Lines Enplanements 26,287 25, % 164, , % Seats 34,277 30, % 218, , % Load Factor 76.7% 82.5% -7.0% 75.4% 77.7% -3.0% Southwest Airlines Enplanements 18,339 20, % 114, , % Seats 29,198 29, % 191, , % Load Factor 62.8% 68.1% -7.8% 59.7% 60.1% -0.7% Friday, August 30, 2013 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

45 Jul 2013 Jul 2012 Percentage Change *CYTD-2013 *CYTD-2012 Percentage Change United Airlines Enplanements 11,394 11, % 76,903 69, % Seats 14,100 16, % 103,327 95, % Load Factor 80.8% 72.0% 12.3% 74.4% 72.1% 3.3% US Airways Enplanements 14,190 14, % 94,139 98, % Seats 17,114 18, % 120, , % Load Factor 82.9% 79.5% 4.3% 78.0% 75.3% 3.5% Totals Enplanements Seats Load Factor 83,059 84, % 108, , % 76.5% 77.6% -1.4% 522, , % 713, , % 73.1% 72.8% 0.4% Friday, August 30, 2013 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

46 Monthly Enplanements By Year Greenville-Spartanburg International Airport Enplanements Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Blank) (Blank) (Blank) (Blank) (Blank) Friday, August 30, 2013

47 Monthly Seats By Year Greenville-Spartanburg International Airport Seats Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Blank) (Blank) (Blank) (Blank) (Blank) Friday, August 30, 2013

48 Monthly Load Factors By Year Greenville-Spartanburg International Airport 90.00% 80.00% 70.00% 60.00% Load Factor 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % 71.54% 73.71% 70.85% 75.28% 76.89% 77.94% 71.33% 72.47% 77.23% 73.56% 71.77% % 63.98% 72.13% 75.34% 76.59% 81.06% 77.53% 72.58% 73.06% 76.07% 72.56% 78.45% % 66.54% 73.95% 73.74% 76.10% 79.39% 76.49% (Blank) (Blank) (Blank) (Blank) (Blank) Friday, August 30, 2013

49 Total Monthly Passengers By Year Greenville-Spartanburg International Airport Total Passengers Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec (Blank) (Blank) (Blank) (Blank) (Blank) Friday, August 30, 2013

50 Scheduled Airline Market Shares (Enplanements) Greenville-Spartanburg International Airport Report Period From July 2013 Through July % 17% 22% 11% 5% 32% 0% Allegiant Air American Airlines Delta Air Lines Republic Southwest Airlines United Airlines US Airways Friday, August 30, 2013

51 Airline Flight Completions Greenville-Spartanburg International Airport July 2013 Airline Scheduled Flights Cancellations Due To Field Mechanical Weather Other Total Cancellations Percentage of Completed Flights Allegiant Air % American Airlines % Berry Aviation % Castle Aviation % Central Air Southwest % Delta Air Lines % Encore Air Cargo % Friday, August 30, 2013

52 Airline Scheduled Flights Cancellations Due To Field Mechanical Weather Other Total Cancellations Percentage of Completed Flights Federal Express % Freight Runners Express % IFL Group % McNeely Charter Service % Priority Air Charter % Republic % Republic Airlines % Royal Air Freight % Sioux Falls Aviation % Friday, August 30, 2013

53 Airline Scheduled Flights Cancellations Due To Field Mechanical Weather Other Total Cancellations Percentage of Completed Flights Southwest Airlines % United Airlines % UPS % US Airways % Total 1, % Friday, August 30, 2013

54 Schedule Airline Change Enhanced Report for Passenger (All) flights for GSP for travel October 2013 vs. October 2012 All flights, seats, and ASMs given are per week. Travel Period Oct 2013 Oct 2012 Diff Percent Diff Mktg Al Op Al Dest Dom/Int Flights Seats Flights Seats Flights Seats Flights Seats AA MQ DFW Dom 20 1, , % 0.0% DL 9E ATL Dom ,642 (10) (942) (41.7%) (57.4%) DL 9E CVG Dom (6) (300) (100.0%) (100.0%) DL 9E DTW Dom 25 1, % 38.9% DL 9E LGA Dom DL DL ATL Dom 34 4, , % 25.9% DL EV ATL Dom % 216.2% DL RP DTW Dom (1) (50) (14.3%) (14.3%) DL RP LGA Dom (6) (300) (50.0%) (50.0%) G4 G4 FLL Dom % 10.7% G4 G4 PGD Dom % 10.7% G4 G4 PIE Dom (2) (268) (50.0%) (44.7%) G4 G4 SFB Dom % 10.7% UA AX IAD Dom (7) (350) (100.0%) (100.0%) UA AX ORD Dom % 100.0% UA EV CLE Dom % 0.0% UA EV EWR Dom (6) (300) (31.6%) (31.6%) UA EV IAD Dom % 0.0% UA EV IAH Dom (7) (350) (41.2%) (41.2%) UA EV ORD Dom (12) (600) (63.2%) (63.2%) US 16 CLT Dom % 138.5% US 17 CLT Dom 26 1, ,194 (1) 106 (3.7%) 8.9% US RP DCA Dom (7) (350) (100.0%) (100.0%) US YV CLT Dom US ZW CLT Dom (11) (550) (61.1%) (61.1%) US ZW DCA Dom % 72.7% US ZW PHL Dom % 11.8% WN WN BNA Dom 7 1, % 0.6% WN WN BWI Dom 7 1, ,960 (7) (959) (50.0%) (48.9%) WN WN HOU Dom 7 1, % 4.4% WN WN MCO Dom (7) (959) (100.0%) (100.0%) WN WN MDW Dom 13 1, , % 0.0% TOTAL , ,836 (31) (2,000) (8.8%) (7.7%)

55 MEMORANDUM TO: FROM: Members of the Airport Commission Jack G. Murrin, VP of Administration & Finance/CFO DATE: September 9, 2013 ITEM DESCRIPTION Information Section Item B July Monthly Financial Report SUMMARY Operating Income was up by 2.03% when compared to the budget for Year-to-Date July Operating Expenses were down by 54.02% over the budgeted amount for the period. Net operating income was up 69.05% versus the budget through July For the period ending July 2013 which is 1 month of the fiscal year a total of about $1.60 million has been returned to the bottom line in operating income. Attached is a copy of the detailed financial report for July Please recognize that this is a preliminary report, unaudited, and only represents one month of activity resulting in variances from budget which can be quite volatile GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

56 July 31, 2013 FINANCIAL STATEMENT PACKAGE

57 GREENVILLE SPARTANBURG AIRPORT DISTRICT STATEMENT OF NET POSITION Current Month Current Month Current FY Prior FY 7/31/2013 7/31/2012 Assets Cash Accounts 6,740, ,857, Investments-Airport 72,123, ,473, Bond Trustee Assets 39, , Accounts Receivable 2,790, , Less: Reserve for Doubtful Accts - Net Accounts Receivable 2,790, , Inventory 225, , Prepaid Insurance 326, , Notes Receivable-RAC District Funds 2,419, ,605, Property, Plant & Equipment (PP&E) 267,922, ,357, Less: Accumulated Depreciation (132,150,672.77) (123,729,674.99) Net PP&E 135,771, ,628, TOTAL ASSETS 220,437, ,497, PLUS: Deferred Outflows of Resources Unamort Bond Underw, Insur, Legal Fees - 63, LESS: Liabilities Accounts Payable 3,010, , Revenue Bonds Payable 2,871, ,132, Benefit Liability 768, , TOTAL LIABILITIES 6,650, ,490, LESS: Deferred Inflows of Resources Deferred Revenues 2,419, ,605, TOTAL DEFERRED INFLOWS OF RESOURCES 2,419, ,605, NET POSITION Invested in Capital Assets, net of Related Debt 132,916, ,838, Restricted: A/P - Capital Projects - Restricted 23, , Contract Facility Charge 1,484, , Total Restricted: 1,507, , Unrestricted 76,942, ,802, TOTAL NET POSITION 211,367, ,465, Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

58 GREENVILLE SPARTANBURG AIRPORT DISTRICT PROFIT and LOSS STATEMENT FISCAL YEAR TO DATE July 31, 2013 July 31, 2013 Actual Budget Actual - Budget % Change INCOME Landing Area: Landing Fees 205, , (2,657.11) -1.28% (a) Aircraft Parking Fees 27, , (514.14) -1.85% FBO Into-Plane & Fuel Flowage 9, , % Subtotal Landing Area 241, , (2,570.62) -1.05% Space & Ground Rentals 657, , (995.44) -0.15% Auto Parking 682, , (11,747.51) -1.69% Commercial Ground Transportation 15, , , % Concessions: Advertising 28, , , % Food & Beverage 31, , , % Rental Car 260, , , % (b) Retail 33, , % Other (8.33) % Subtotal Concessions 353, , , % Expense Reimbursements 89, , (5,235.71) -5.55% Other Income 76, , , % Total Operating Income 2,116, ,074, , % EXPENSES Salary & Benefits 231, , (359,293.35) % (c) Professional Services (1,200.75) 33, (34,778.92) % (d) Promotional Activities 4, , (44,117.40) % (e) Administrative 44, , (27,742.54) % (f) Insurance 34, , % Contractual Services 42, , (94,072.25) % (g) Rentals & Leases - 4, (4,629.58) % Repairs & Maintenance 12, , (12,641.66) % Supplies & Equipment 19, , (38,639.70) % (h) Utilities 130, , , % Total Operating Expenses 519, ,129, (610,265.60) % NET OPERATING INCOME 1,597, , , % Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

59 Millions Millions GREENVILLE SPARTANBURG AIRPORT DISTRICT REVENUES AND EXPENSES TREND GRAPHS $2.5 Historical Operating Revenues (by Month by Year) $2.0 $ $1.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec $3.0 $2.5 Historical Operating Expenses (by Month by Year) $2.0 $1.5 $1.0 $ $0.0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

60 July 31, 2013 YTD ACTUAL VS YTD BUDGET FOOTNOTES (a) Landing Fees UNDER BUDGET $2, Charter activity under budget 2.8K (b) Rental Car OVER BUDGET $25, Conservative budgeting (c) Salary & Benefits UNDER BUDGET $359, Accrued one entire payroll plus one day booked back to June K; budgeted vacant positions as if employed entire year - Retirement expense 49K under budget-june 2013 expenses paid in July and booked back to June 2013 (d) Professional Services UNDER BUDGET $34, Consulting 22K under budget YTD-June 2013 expenses paid in July and booked back to June - Legal expenses 7K under budget YTD - Audit 5K over budget (e) Promotional Activities UNDER BUDGET $44, Advertising expense 33K under budget-june 2013 expenses paid in July and booked back to June 2013 (g) Contractual Services UNDER BUDGET $94, Parking Mgmt Agreement Expenses 45K under budget - Janitorial Services 31K under budget YTD - Nursery/landscaping 10K under budget YTD - Elevator & Escalator 9 under budget YTD (h) Supplies & Equipment UNDER BUDGET $38, Timing: June 2013 expenses that were paid in July were booked back to June; this will correct itself only at year end when accruals are booked back to June Note: Please recognize that this is a preliminary report, unaudited, and only represents one month of activity, resulting in variances which can be quite volatile. Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

61 Greenville-Spartanburg Airport District July 31, 2013 Issue Maturity Interest Cost Basis or EOM FMV Date Date Rate BOY FMV Par FMV Adj US Treasury UST T-Bill 4-wk 7/11/2013 8/8/ % 4,999, ,000, ,999, /25/2013 8/22/ % 4,999, ,000, ,999, UST T-Bill 13-wk 6/20/2013 9/19/ % 4,999, ,000, ,999, /20/2013 9/19/ % 4,999, ,000, ,999, /30/2013 8/29/ % 4,999, ,000, ,999, UST T-Bill 26-wk 4/18/ /17/ % 4,999, ,000, ,999, /2/ /3/ % 4,999, ,000, ,999, /5/2013 1/2/ % 4,997, ,000, ,998, /25/2013 1/23/ % 4,998, ,000, ,998, Subtotal-UST 44,993, ,000, $ 44,995, , SC Local Gov Inv Pool: Issue Cost Cumulative Date Basis Yield Balance 9/16/2011 2,000, ,000, /17/ ,000, ,000, Add: Life-to-date Interest % 54, Subtotal-UST $ 12,054, Capital Bank ICS: Issue Cost Cumulative Date Basis Yield Balance 9/20/2011 2,990, ,990, /18/ ,010, ,000, Add: Capital Bank Account 10, Add: YTD Interest % 62, Subtotal-UST $ 15,072, Total $ 72,123, US Treasury Investment Types T-Bill T-Note T-Bond Fed Ag Negotiable Debt Obligation Yes Yes Yes Yes Backed by Gov Full Faith/Credit Yes Yes Yes No Maturity < 1 yr 1-7 yrs 7+ yrs 1-5 yrs Coupon-Bearing No Yes Yes Yes Interest is paid at Maturity Semi-Ann Semi-Ann Semi-Ann State & Local Tax Exemption Yes Yes Yes Only FHLB (*) (*) Note: Since GSP is a political subdivision of SC, w e are tax-exempt from all taxes, including state and local. Blended yield = % Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

62 GREENVILLE SPARTANBURG AIRPORT DISTRICT Terminal Improvement Project through: 7/31/2013 FYE YTD FYE YTD FYE YTD FYE YTD FYE Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 Total Skanska $ 331,673 $ 9,238,515 $ 9,570,188 Jacobs $ 961,516 $ 964,589 $ 1,926,105 RS&H $ 2,916,235 $ 2,650,023 $ 5,566,258 TPM $ 29,212 $ 29,212 Tidewater Lumber $ 30,434 $ 159 $ 30,593 LPA $ 1,367,784 $ 1,367,784 Parsons Brincke $ 50,000 $ 50,000 RJ Design $ 65,350 $ 65,350 Michael M. Simpson $ 49,696 $ 49,696 Other $ 2,725 $ 86,472 $ 6,432 $ 95,629 Accruals $ 1,013,618 $ (1,092,892) $ (79,274) Total $ 115,215,000 $ 4,241,361 $ 15,516,480 $ (1,086,300) $ - $ - $ 18,671,541 Cumulative $ Spent $ 4,241,361 $ 19,757,841 $ 18,671,541 $ 18,671,541 $ 18,671,541 % of Budget spent 3.68% 17.15% 16.21% 16.21% 16.21% 16.21% TIP Public Relations Expenses through: 7/31/2013 FYE FYE FYE FYE FYE Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 Total Crawford Strategies $ 261,000 10,900 75,593 5,450 91,943 Launch Something $ 279,730 25,870 95,551 5, ,838 Total $ 540,730 36, ,143 10, ,781 Cumulative $ Spent $ 36,770 $ 207,913 $ 218,781 $ 218,781 $ 218,781 % of Budget spent 6.80% 38.45% 40.46% 40.46% 40.46% 40.46% RAC CFC Obligations through: 7/31/2013 FYE FYE FYE FYE FYE Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 Total Skanska 189,553 3,043,768 3,233,321 RS&H 218,800 41, ,616 Other 49,792 49,792 Total $ 3,495, ,353 3,135, ,543,729 Cumulative $ Spent $ 408,353 $ 3,543,729 $ 3,543,729 $ 3,543,729 $ 3,543,729 % of Budget spent 11.68% % % % % % Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

63 GREENVILLE SPARTANBURG AIRPORT DISTRICT Other Operating and Maintenance Reserve Funds FY $ Amount $ Amount Authorized Date Used YTD Emergency Repair/Replacement/Operations Fund $ 750,000 7/23/2013 $ 795 Trane Comfort Solutions-Screening Mechnical room replaced moter due to power failure 7/23/2013 $ 1,129 Trane Comfort Solutions-N. Baggage Make up replaced moter due to power failure 7/23/2013 $ 105 CC Dickson Co-Facilities AC repairs 7/23/2013 $ 4,100 Tankersley Brothers-Sewer line clogged E. side PGA $ 6,128 $ 743,872 Remaining Reserve Business Development Obligations/Incentives $ 600,000 $ - $ 600,000 Remaining Reserve Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

64 MEMORANDUM TO: FROM: Members of the Airport Commission Kevin Howell, Vice President / COO DATE: September 9, 2013 ITEM DESCRIPTION Information Section Item C September 2013 Development/Project Status Report SUMMARY Terminal Improvement Program: Status Construction is currently underway on the Enabling Package and the Bag Claim / South Bridge Package. Design completion of the Core and Concourse Package is ongoing. Project Budget $115,000, Estimated Completion Date January 2016 Enabling: During the period from July 1st to July 31th, the structural steel detailing continued on the North Wing structure, including metal decking, perimeter framing for building envelope and bracing. The steel framing was erected for the Concourse B addition, and the Concourse A addition continued to lag behind. The foundations for the South Concourse (A) addition progressed slowly with the completion of micropiles. Skanska- Moss has adequately replaced the defaulting concrete sub-contractor and engaged Zurich who insures the project against defaulting sub-contractors with our SubGuard program. No additional costs will be borne by the project due to the sub-contractor default. Concrete work has restarted on stairwell walls, and elevator shafts critical for the North Wing completion. HVAC rough-in work for the North Wing has begun with ductwork being installed from the ceiling structure. Rough in piping for the sprinkler system and plumbing system 2000 GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

65 Greenville-Spartanburg Airport Commission Information Section Item C September 2013 Project Status/Update Page 2 also began, including underground piping for the electrical room, ground floor restrooms, and communication systems. The ground floor slab continues to be postponed by the contractor due to incomplete underground work, and continued rain which has impacted the conditions at the site. The two tall monumental columns along the terminal front have been completed. The western overhead concrete beam has also been poured. Work continues on the installation of the first baggage claim unit installation, and associated renovation work in baggage claim included in the Enabling contract. The building envelop is beginning to be closed back in on the South in of the Terminal with CMU walls beginning to be replaced after completion of the first baggage tunnel. Progress on the storm sewer and electrical and communications duct bank work in the baggage make-up has reached around 90% complete with continued impacts to the airline operations being minimized. Installation and the continuation of duct-bank installation through the North Wing site continued through an open cut trench. Completion of the duct bank is critical to the rerouting of the new electrical service into the campus by Duke Energy, and the refeeding of all airport communications systems into the new MDF room, IDF rooms and electrical rooms prior to commencement of the Core structure next spring. The new backup generators were delivered and installed and work continues on the new emergency power distribution room. The new cooling towers were also installed on the roof of the North Wing structure. Bag Claim / South Bridge: The demolition contractor has progressed well on the Baggage Claim/South Bridge project and all major demolition is complete including the removal of the steel structure from the area where the new vertical transportation core will be. The elevator pit reported last period with ground water intrusion has progressed after the contractor installed several point wells to reduce ground water intrusion, and safety shoring of the pit walls in preparation for foundation work is being installed currently, with the pit about half way to its final depth. Foundation work for the new curtainwall system around the South end of the terminal and East face along the terminal roadway has progressed and preparation for new slab infill has taken place which should allow the project team to begin to close the baggage claim area back in next period. The concrete work for the new baggage claim device 2000 GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

66 Greenville-Spartanburg Airport Commission Information Section Item C September 2013 Project Status/Update Page 3 #3 was completed and installation of the second baggage claim devise was completed and the unit is being covered for protection. Mechanical and electrical work continues to progress on the duct-work installation in the existing baggage claim area, and work is continuing on the new vestibules into the South end of the Baggage Claim area. Design completion for the Core and Concourse Package continues. The 90% submittal is due from the design team in November. South Cargo Modernization Project: Status Design (Phase 1) Project Budget $3,000, Estimated Completion Date to be determined The South Cargo Modernization Project is a budgeted capital improvement project and includes general improvements to the South Cargo Building. A change to the overall scope of this project was approved by the Commission at the January Commission meeting. This change involves constructing a new tenant occupied cargo building on the North Cargo Apron adjacent to FedEx. The North Cargo Apron building will be referred to as Phase 1 of the overall Cargo Modernization Project. Staff is finalizing a scope and fee agreement with AVCON for the design of the Phase 1 building on the North Cargo Apron. The project schedule anticipates construction documents completed in November, bidding during the winter season and issuing a NTP for construction to start as early possible depending on weather and coordinating with the selected contractor. Facilities Building Expansion Project: Status Design Project Budget $2,575, Estimated Completion Date to be determined The Facilities Department Building Expansion Project is a budgeted capital improvement project and includes an expansion to the current equipment storage building and an addition of an administration building for the Facilities Department GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

67 Greenville-Spartanburg Airport Commission Information Section Item C September 2013 Project Status/Update Page 4 A project design kick-off meeting was held on August 22 with the WK Dickson & DP3 team. Construction documents should be completed this fall/early winter, allowing bidding to occur during the winter season and then a NTP for construction to start in early spring. Pavement Rehabilitation Project: Status Rehab Work is Underway in the Daily Surface Lot Project Budget $150, Estimated Completion Date September 2013 The Pavement Rehabilitation Project was a FY2013 budgeted capital improvement project to allow for the rehabilitation of various landside pavements on the campus. Phase 1 of the project included selective pavement replacement, crack sealing, seal coat and new pavement markings at the North Cargo Facility and Gateway Drive. The contractor for this task was Banks Brothers Asphalt. The first phase of work is complete and under budget. Work is now underway in the Daily Surface Lot with selective pavement replacement, seal coat, crack sealing and new pavement markings. This work will be completed in at least 3 phases and is dependent on weather and freeing up of current parking spaces as vehicles exit the lot and the rehab spaces are opened up. Completion is anticipated in September GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

68 MEMORANDUM TO: FROM: Members of the Airport Commission Rosylin Weston, Vice President - Communications DATE: September 9, 2013 Item Description Information Section Item D August 2013 Communications Report News Stories Broadcast, Print and Online: Upstate Business Journal A Peek at GSP Renovation Upstate Business Journal- GSP360 Aimed at Airport Development Opportunities WYFF TV Land Near GSP Airport to be Developed WYFF TV How Airline Merger Challenge Could Affect GSP FOX Carolina Major Construction Underway at GSP WSPA TV GSP360 Development News Release GSP360 Website Launch Website Statistics: WINGSPAN BLOG 460 Visitors 73% were new visitors There were 2 large spikes in blog visits, the water bottle filling station notice received 102 views and the construction update along with information about the Cell Phone Parking lot received 53 views. Elevatingtheupstate.com 08/01/13-08/22/ Visits 67% New Visitors Average Visit Duration 02:22 Minutes 94 Page visits Mobile Site Average Visit Duration 01:28 Minutes Mobile site 2000 GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

69 Greenville-Spartanburg Airport Commission Information Section Item D September 9, 2013 Communications Report Page 2 GSPAirport.com 08/01/13 08/22/13 44,467 Visits 63% New Visitors Average Page View per Visit 4.12 Pages Average Duration on-site 02:10 minutes 14,316 Mobile site visits Facebook Update: 08/01/13 08/22/13 410,280 People viewed content associated with the GSP Page 128 New Likes 17,106 People engaged with our page this includes clicking on a story Summer Madness Facebook Campaign: 06/24/13-08/30/13 This was a 10 week campaign designed to increase the number of GSP Facebook fans. To enter to win users had to like the GSP Facebook page and Share the Summer Madness posts with their friends. During the campaign 58,110 people saw the posts and a total of 33,013 people shared the post with their Facebook friends; the GSP fan/friends base increased by 506 as a result of this campaign. Terminal Advertising Program Update: Contract Renewals: Prettle Annual Renewal at $ per month Proposals Outstanding Fluor Wofford College Newly Signed Contracts Spartanburg Regional Medical Center Contract in review 2 year commitment to Cell Phone Lot sponsorship Total Expected Revenue - $27, GSP Drive, Suite 1 Greer, SC Greenville: Spartanburg: Fax:

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74 » Print This copy is for your personal, non-commercial use only. U.S. government, 2 airlines say open to settling merger fight Wed, Aug By Diane Bartz WASHINGTON, Aug 28 (Reuters) - American Airlines, US Airways and the U.S. Justice Department said on Wednesday they were open to settling a court fight over whether the two companies should be allowed to merge, but there was no sign of an imminent agreement. The Justice Department filed a lawsuit in mid-august, asking a federal court to block the deal, which would form the world's biggest air carrier. The government said the merger would lead to higher prices for customers, while the companies said it would make them more competitive and strengthen the market. In a document filed jointly by the Justice Department and the two companies on Wednesday, the government said it was "open to a settlement that addresses the anticompetitive harms posed by the merger but have not yet received any such proposal from the defendants." In its initial complaint, the department focused on Ronald Reagan National Airport, outside Washington, D.C., where the two companies own a combined 69 percent of takeoff and landing slots. It also listed more than 1,000 city pairs where the two airlines dominate the market. The two airlines said in the joint filing with the district court in Washington, D.C., that they had tried to settle the case before the complaint was filed "and continue to believe there ought to be a realistic possibility of settlement." Two sources told Reuters earlier this week that there had been little or nothing in the way of settlement discussions before the complaint was filed. A person familiar with the matter said that the companies had offered concessions to the Justice Department but declined to describe them. The two sides have been at loggerheads over a trial date. The Justice Department initially asked for a February trial and then amended that to March. The airlines asked for a November trial. The airlines complained about the proposed delay in a second filing on Wednesday in which they said that the Justice Department's proposed schedule would "place the merger at risk regardless of its competitive benefits." In the joint filing on Wednesday, the two sides asked the judge to resolve the dispute at an initial scheduling conference set for Friday. Companies generally push for expedited trials in merger challenges. Holding a deal together for months puts a strain on the parties because they are essentially in limbo, unable to merge and hampered in making independent long-range plans. The case at the U.S. District Court for the District of Columbia is No. 1:13-cv CKK. Thomson Reuters All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. This copy is for your personal, non-commercial use only.

75 For frequent fliers, airline loyalty is fleeting Charisse Jones, USA TODAY 6 a.m. EDT August 20, 2013 SHARE 52 CONNECT TWEET ( When it comes to airline loyalty programs, fliers may be a bit fickle. 55 (Photo: Mary Altaffer, AP) A new survey by the professional services firm Deloitte, found that 66% of business travelers were open to switching to another airline loyalty program even if they'd earned the elite status that gives them access to extra perks. Among corporate fliers, the most coveted of passengers because they often pay top dollar to fly at the last minute, only 40% fly at least ¾ of their miles on their "preferred'' carrier. And 72% of business travelers who fly at least 50,000 miles a year participated in at least two airline loyalty programs. "If you came and said I'd give you all the perks, plus two more if you switch airlines, they'd probably switch,'' said Adam Weissenberg, vice chairman and U.S. leader of Deloitte's travel, hospitality and leisure sector. American Airlines launched the first frequent flier program in Since then, the programs have become ubiquitous in the airline industry with hundreds of millions of members earning miles for the trips they take as well as for various purchases. But Weissenberg says that nowadays, no one program stands out as distinctive. "They've all become the same,'' he says. "There's nothing unique from one to another." COLUMN: Should you remain loyal to one airline? ( The overall flying experience has also deteriorated, he says, becoming known more for packed planes than great service. Even some of the perks that come with elite program status, like upgrades to premium cabins and roomier seats, are harder to come by as airlines offer those extras to other fliers for a price, and cut back on the overall number of seats they put in the air to better match demand. "If you're on crowded planes all the time (and) you have to pay for everything on the plane, that doesn't really inspire loyalty,'' Weissenberg says. Rather than comparing loyalty programs, he says, some passengers simply think "I'll just take the cheapest ticket that I can find.'' But Victoria Day, spokeswoman for Airlines For America, the trade group representing most major U.S. carriers, says that frequent flier programs continue to be a magnet for many fliers. "Many customers make their flying decisions solely based on loyalty, and the rewards afforded them for their business,'' Day says. "Airlines are continuously adapting to ensure their loyalty programs are offering products and services that matter most to their members, who are often their most loyal and valuable customers.'' FREQUENT FLIER AWARDS: Award-winning programs around the world ( Weissenberg says that airlines can keep program members coming back by offering more personalized perks, from a complimentary glass of red wine for the passenger who regularly orders one, to "a newspaper we know you like to read. Something customized to me as a traveler.'' Those personal touches will require airlines to invest more in staff training and systems that can better pinpoint, track and appeal to frequent fliers. But, Weissenberg says, "the airlines have an opportunity.'' READ MORE: Frequent flier programs go beyond free flights ( Steve Klein, a member of USA TODAY's road warrior panel, says that he stays true to American's frequent flier program, though he doesn't see much