Robert S. Bowen, Executive Director October 18, 2018
A Year of Change The last year will be remembered as a period when the airlines, bolstered by a growing national economy, moderate fuel prices and changing fleet plans, grew capacity at many airports across the country. How did Norfolk fare?
Key Airport Features 72 nd largest primary airport in the United States Primary airport serving Hampton Roads region of Virginia and northeast North Carolina Currently served by six airlines Daily, non stop service to 26 domestic destinations Covers 1,300 acres Two Active Runways Runway 5/23 Runway 14/32 Cargo Operations UPS FedEx
ORF Capacity Growth Surpassing National Average CY 2017 v. 2018 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 4.4% 3.3% U.S.* Departures 9.9% 6.1% ORF Seats Source: Aviation DataMiner *Airlines include Alaska, Allegiant, American, Delta, Frontier, JetBlue, Southwest, Spirit and United
ORF Capacity Growth Compared to U.S. Domestic Peers* CY 2017 v. 2018 Seat Growth 20.0% 15.0% 10.0% 5.0% 5.7% 12.8% 11.8% 18.2% 9.9% 8.5% 5.1% 9.9% 6.1% 16.0% 9% Avg. 0.0% 5.0% 10.0% 5.2% * Source: FAA and Aviation DataMiner Peers are defined as 5 cities higher and 5 cities lower than ORF ranked by total annual passengers.
ORF Historical Passenger Traffic 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Industry consolidation + Recession Begin Recovery Government Sequestration Resume Recovery Total Passengers
System Wide Growth Majors vs. Ultra Low Cost Carriers (ULCC) 20.0% 15.0% 10.0% CY 2017 v. 2018 13.3% 16.3% 5.0% 2.8% 3.6% 0.0% Majors Departures Seats ULCC Source: Aviation DataMiner *Major Airlines include Alaska, American, Delta, JetBlue, Southwest and United. ULCC Airlines include Allegiant, Frontier and Spirit.
Allegiant Air at ORF Trend: Allegiant Air began service to Norfolk in October 2017 with service to Tampa/St. Petersburg, FL and began service the following month to Orlando Sanford and Ft. Lauderdale. Seasonal summer 2018 service to Jacksonville, FL was also added. Allegiant is an ultra low cost carrier (ULCC) that provides affordable access to primarily leisure destinations.
American Airlines at ORF Trend: American provides nonstop service to popular northeast US destinations (Washington, New York and Philadelphia), and access to midwest, west, southeast and global destinations are provided by the hubs in Charlotte, Chicago O Hare, Dallas and Miami. American has increased seats at ORF by 5% in 2018.
Delta Air Lines at ORF Trend: Delta provides nonstop service to popular northeast US destinations (New York and Boston), and accesses midwest, west, southeast and global destinations via the hubs in Atlanta, Detroit, Minneapolis and New York JFK. Delta has increased seats at ORF by 9.8% in 2018.
Frontier Airlines at ORF Trend: Frontier inaugurated service in Norfolk on August 12 with service to Las Vegas, Orlando and Denver. New announced service to Phoenix and Tampa will begin November 12. Frontier is an ultra low cost carrier (ULCC) that provides affordable access to primarily leisure destinations.
Southwest Airlines at ORF Trend: Southwest Airlines continues to provide year round nonstop service to the Baltimore, Orlando and Chicago Midway focus cities, and has provided summer/fall weekend service to Denver since 2016. Southwest is presently focusing it s growth primarily in the California and Hawaii markets
United Airlines at ORF Trend: United provides northeast, midwest, southwest, western and global access via the hubs in Washington Dulles, Newark, Houston and Chicago O Hare. New daily nonstop service to Denver was added in June aiding westward flow. United has increased seats at ORF by 10.3% in 2018.
All Airlines at ORF Together, in November 2018, Allegiant, American, Delta, Frontier, Southwest and United Airlines will provide 2,180 departures representing 195,373 seats to 26 destination airports.
Air Service Development In a free market, the level of air service at a given community is solely the decision of the airlines. Norfolk Airport Authority staff, along with the assistance of nationally recognized air service consultants, regularly communicate and meet with incumbent and non incumbent airlines to advocate for improved air service at Norfolk International Airport. Aside from ready facilities, among the factors determining success in these endeavors are passenger demand, aircraft availability, airline strategy, global economy, competitive risk and comparatively better opportunities at hundreds of other U.S. airports. There are vastly more route opportunities presented annually to airlines by communities than there are aircraft fleets available to fill those opportunities. Airlines have to design route structures that will attain the highest and best return for their shareholders. That means picking and choosing where they will place high cost aircraft assets.
Facilities Update
Facilities Update Phase 3 Terminal Renovations Complete Common Use Ticketing Counter and Gate Improvements Complete Rental Car Return Relocation Nearing Completion
Rental Car Return Relocation Move return operations to Parking Garage A Return location will be Level 2 Customers and employees will not be exposed to precipitation Customers can quickly walk into the Arrivals Terminal and then to concourses all while inside Currently scheduled to be completed by the end of November 2018 $2.5 million Project Cost
Facilities Update Runways 5/23 and 14/32 Rehabilitation.
Runway 5/23 and Runway 14/32 Rehabilitation Runway 5/23: Replace all centerline lights Mill and overlay center 35 of asphalt Runway 14/32 Mill and overlay isolated pavement areas Sealcoat and restripe runway Will result in greatly improved pavement conditions $15 million Project Cost with Completion in November 2018
Runway 5/23 Standardization Project Update non standard Items such as: Blast pad and paved shoulder width Transverse grades Concrete ends of runway are reaching end of service life Rubbilize and overlay concrete ends with asphalt Will result in perpetual pavement that requires mill and overlay every 15 years $73 million Project Cost with FY2020 start
Facilities Update Projects to be Awarded General Aviation Customs Facility Alpha Concourse Extension Departures Elevators
General Aviation Customs Facility New Standalone Customs Facility for General Aviation 3,000 SF Building with expanded apron Construction to start early 2019 $3.5 million Project Cost
Facilities Update Projects Out To Bid Passenger Loading Bridge Replacement Business Center Projects in Development Parking Garage D General Airport Revenue Bond 2019
Garage D Design and Construction New 3,226 Space Structure Allows for closure of Employee Lot and Long Term East Makes up for spaces lost in moving rental car return operations to Garage A Design Started September 4th Estimated Construction Start July 1, 2019 Estimated Completion June 30, 2021 $76 million Project Cost
Master Plan Update
Airfield Planning Some airfield alternatives to be evaluated: Need for secondary and/or crosswind runways Evaluation of Runway 14 32 to serve as an ARC C III or a B II runway Reconstruction vs. Closing Runway 14 32 Long term reconstruction of Runway 5 23 Improvements to airfield geometry to meet FAA guidelines and design standards Impact of FAA NextGen on aircraft operations and procedures Evaluation of taxiway and apron demand Proposed relocation of VORTAC
Passenger Terminal Planning Some terminal concepts to be evaluated: Evaluation of terminal space programs, based on forecasted passenger volumes Terminal plans that offer operational flexibility and accommodate future expansion of the terminal complex Incorporating future technological improvements associated with airline and terminal operations Incorporation of sustainable design
Parking and Access Planning Parking and access alternatives to be evaluated: Consolidated Rental Car Service Facility Evaluate demand/capacity of Airport Parking Evaluate access roadways and circulation Signage and wayfinding Cashier plaza requirements Curbside circulation and capacity Curbside management plan Public vehicles, TNCs, taxis, limos, & courtesy shuttles Future Light Rail access
Land Use Planning Completion of an existing Land Use Study for land within the planning area and adjacent lands Identify any existing and proposed land use regulations that could impact development standards and potential noise impacts Identify deficiencies and/or surpluses in the amount of developable land for each land use category Prepare conceptual land use plans based on established goals and objectives General feasibility and potential benefits of alternative ground access, curbside, parking, and rental car options
Robert S. Bowen, Executive Director October 18, 2018