14 C.F.R. Part 158. Passenger Facility Charge Program Logan International Airport. Public Notice

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1 14 C.F.R. Part 158 Passenger Facility Charge Program Logan International Airport Public Notice

2 Summary of Proposed 2018 PFC Application PFC Project Descriptions and Justifications PFC Financial Plan Class of Carriers Excluded from PFC Collection Requirement Next Steps 2

3 Proposed 2018 PFC Application C-00-BOS Five new impose and use projects to collect at the $4.50 PFC level $157.7 million additional collection authority requested as part of new PFC Application New estimated PFC charge effective date: May 1, 2026 New estimated PFC expiration date: March 1, 2028 Public comments should be submitted by Monday, March 12, 2018 by regular mail or at Massport intends to submit the new PFC Application to the FAA during Summer

4 PFC Project #54 Renovation and Improvements at Terminal B 4

5 Application C-00-BOS is Logan s 11 th application for Impose and Use Authority Proposed PFC Funding 1. PFC #66: Terminal B Gate Connector $ 28.5M 2. PFC #67: Group VI Aircraft Airfield Improvements $ 12.8M 3. PFC #69: Replace Runway 4R Approach Light Pier $ 14.1M 4. PFC #73: Terminal B Optimization $101.7M 5. PFC #74: Logan RIM Study $ 0.6M Total $157.7M Massport will request funding at the $4.50 PFC level Note: Proposed PFC funding includes PFC financing and interest costs 5

6 (1) PFC Project 66: Terminal B Gate Connector - $28.5M 6

7 (1) PFC Project 66: Terminal B Gate Connector - $28.5M 7

8 (1) PFC Project 66: Terminal B Gate Connector - $28.5M Scope: Post security concourse connector from Gates to the postsecure area connecting main security checkpoint Two lane checkpoint will be decommissioned Replacement of ceilings and duct distribution systems which serve the project area Project schedule is February 2017 to August 2018 Justification: Currently, the holdroom for Gates is not connected to the post security concourse, cutting these two gates off from the rest of post security Terminal B Allows the Authority to better match up the scarce supply of gates at Logan with the airlines demand for gates Current duct distribution system is 30 years old and failing Post security connectivity between all terminals fosters competition and improves customer service 8

9 (2) PFC Project 67: Group VI Aircraft Airfield Improvements - $12.8M Areas of pavement additions 9

10 (2) PFC Project 67: Group VI Aircraft Airfield Improvements - $12.8M Scope: Airfield improvements, including apron improvements at Terminal E, to accommodate Group VI aircraft Improve taxiways at turning movement locations Eliminate need for mandatory pavement inspections when a Group VI aircraft lands at Logan Improvements to taxiways, including guidance sign relocations, re-marking and lighting modifications Project schedule is November 2015 to May 2018 Justification: Allow Logan Airport to effectively and safely accommodate Group VI aircraft, including the A380 aircraft, while maintaining current capacity and enhancing airfield safety 10

11 (3) PFC Project 69: Replace Runway 4R Approach Light Pier - $14.1M 11

12 (3) PFC Project 69: Replace Runway 4R Approach Light Pier - $14.1M Scope: Existing timber light pier replaced with durable, non-flammable and reliable approach concrete light pier more suitable for marine environment Elevate light pier by approximately 3 feet as part of Massport s resiliency efforts Project schedule was May 2017 to September 2017 Justification: Supports lighting system for CAT III Runway allowing aircraft arrivals in very low visibility Concrete structure preserves airfield capacity by removing risk of pier being destroyed by fire. Pier is critical to continued operation of Runway 4R. The prior timber structure pier was constructed in 1955, reaching the end of its useful life, and was becoming difficult to maintain 12

13 (4) PFC Project 73: Terminal B Optimization - $101.7M 13

14 (4) PFC Project 73: Terminal B Optimization - $101.7M 14

15 (4) PFC Project 73: Terminal B Optimization - $101.7M Scope Includes a centralized 8 lane checkpoint and replaces 3 smaller checkpoints associated with the expansion of Pier B; larger ticket hall and holdrooms Post security concourse connector from Gates 1-3 to main Terminal New checkpoint will have 6 automated screening lanes (ASL) and 2 traditional lanes Airside improvements include the installation of new fuel pits Project schedule is February 2016 to December 2018 Justification: Terminal Optimization necessitated due to several factors Airline access to comparable facilities; promoting competition and increased customer service Current gate layouts do not support newer airline fleet mix design Eliminate inefficient passenger security processing with consolidated checkpoints and the addition of ASL s Mitigate Pier B inefficiencies due to isolated hold rooms (Gate B1, B2, B3) 15

16 (5) PFC Project 74: Runway Incursion Mitigation and Comprehensive Airfield Geometry Analysis (the Logan RIM Study ) - $574K 16

17 (5) PFC Project 74: Runway Incursion Mitigation and Comprehensive Airfield Geometry Analysis (the Logan RIM Study ) - $574K Scope Development of a RIM study and comprehensive airfield geometry analysis to address the FAA s runway incursion findings at Logan Airport and to address other key operational issues that Logan Airport may face with respect to airfield geometry This project is 75% funded through an AIP grant Project schedule is December 2016 to November 2018 Justification: To mitigate 4 hotspots identified by the FAA as airfield safety concerns to prevent incursions This project will provide Massport with an implementation plan to reduce the risk of runway incursions 17

18 PFC Project #39 Replacement of Marine 1 18

19 Dollars in thousands PFC Massport PFC Project No. and Title funding (a) Grants capital (b) Total 66: Terminal B Gate Connector $ 22,239 $ - $ 2,761 $ 25,000 67: Group VI Aircraft Airfield Improvements 10, ,000 69: Replace Runway 4R Approach Light Pier 11, ,025 73: Terminal B Optimization 42, , ,000 74: Logan RIM Study 449 1,346-1,795 Total $ 85,713 $ 1,346 $ 116,761 $ 203,820 (a) (b) Excludes PFC financing and interest costs Massport revenue bonds or internally generated capital 19

20 Dollars in thousands PFC-related PFC- PFC Commercial backed financing Total PFC Project No. and Title Paper Bonds Subtotal & interest PFCs 66: Terminal B Gate Connector $ 22,239 $ - $ 22,239 $ 6,227 $ 28,466 67: Group VI Aircraft Airfield Improvements 10,000-10,000 2,800 $ 12,800 69: Replace Runway 4R Approach Light Pier 11,025-11,025 3,087 $ 14,112 73: Terminal B Optimization - 42,000 42,000 59,708 $ 101,708 74: Logan RIM Study $ 574 Total $ 43,713 $ 42,000 $ 85,713 $ 71,948 $ 157,660 Note: The PFC financing and interest cost assumes Commercial Paper funding with an average annual interest rate of 3.5%, and an average term of 8 years. PFC-related Bonds are assumed to be financed over a 30 year term with a 6.0% interest rate. 20

21 $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 The expiration calculation estimates PFC revenues of $1.83B will be collected by FY28 Committed PFC Collections through ,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 $ (F)2019 (F)2020 (F)2021 (F)2022 (F)2023 (F)2024 (F)2025 (F)2026 (F)2027 (F)2028 (F) PFC Commitment Annual PFC Collections - 21

22 Roadway 164,065 12% Terminal A 195,331 15% Airfield 266,956 20% Terminal B 71,711 6% Terminal C 57,619 4% Other (Fireboat, Elevated Walkways) $127,531 10% Terminal E 436,344 33% Project costs only and excludes financing and interest costs 22

23 Airfield 2019 $32,900 2% Airfield 2018 $21,474 1% Airfield $266,956 17% Roadway $164,065 10% Terminal A $195,331 12% Terminal B $71,711 4% Terminal B 2018 $64,239 4% Terminal B Future $3, % Terminal C $57,619 4% Terminal C Future $43,433 3% Terminal E Future $3, % Other (Fireboat, Elevated Walkways) $127,531 8% Terminal E 2019 $129,000 8% Terminal E $436,344 27% Project costs only and excludes financing and interest costs 23

from this class In CY 2016, enplaned less than two-hundredths of 1% of total

24 Massport proposes to continue to exclude Non-Scheduled/On- Demand carriers from the requirement to collect a PFC High administrative burden of collecting PFCs from this class In CY 2016, enplaned less than two-hundredths of 1% of total enplanements at Logan Airport Exclusion approved by FAA in prior PFC Final Agency Decisions 24

25 PFC Project #50 Terminals C to E Connector 25

26 Add 5 new projects at the $4.50 level, authorizing $157,660,796 in additional PFC Impose and Use collection authority Increase total authorized PFC impose and use collection amount From $1,669.6 million to $1,827.2 million Extend PFC charge expiration date To March 1, 2028 Note: All figures including PFC financing and interest costs. Massport will seek to use debt financing in the most efficient way possible, to minimize financing and interest costs. 26

27 Provide public comments to Massport by Monday, March 12, submittals are acceptable Massport intends to submit the new PFC Application to the FAA during the Summer of

PUBLIC CONSULTATION. Projects Proposed to be Financed with Passenger Facility Charges. Proposed 2018 PFC Application C-00-BOS

PUBLIC CONSULTATION. Projects Proposed to be Financed with Passenger Facility Charges. Proposed 2018 PFC Application C-00-BOS PUBLIC CONSULTATION Projects Proposed to be Financed with Passenger Facility Charges Proposed 2018 PFC Application 18-11-C-00-BOS Boston-Logan International Airport Massachusetts Port Authority Boston,