“Flight delays plague the nation’s aviation system,” Baer said. “As demand has risen, the FAA continues to advance research, but regrettably has fallen short on the implementation of solutions that would have helped to mitigate delays.”

According to Baer, aircraft delays threaten the nation’s economic recovery at a cost of more than $9 billion in U.S. productivity. The cost to the New York region alone: $2.6 billion a year.

Baer outlined a number of delay reduction initiatives in New York, including JFK’s reconstruction of the Bay Runway that will result in additional access points on taxiways that will improve aircraft queing, provide swifter departures and enable easier access from taxiways to terminal gates. At Newark, the Authority is preparing to launch a ground-based augmentation system (GBAS) that will allow planes to fly closer together and land faster without compromising safety.

“All of our delay reduction initiatives on the ground will deliver incremental improvements, reduce delays and ease congestion,” Baer said.

However, the FAA and DOT are “ultimately the most critical players in helping reduce delays,” Baer said, calling for the agencies to implement “widespread use of 21st-century satellite systems – aka NextGen.”

Baer made her case with the following points:

• NextGen won’t be cheap. Total FAA spending over the first 10 years is expected to range from $8 billion to $10 billion. Estimates through 2025 range from $15 billion to $22 billion. This does not include the cost to equip aircraft or modify airports.

• According to the Authority’s estimates, 40 million passengers in the New York area could be affected if there is no improvement in congestion, with a cumulative loss of economic activity: $130 billion.

“The cost of inaction is too great,” Baer said, citing the Port Authority’s national coalition – the National Alliance to Advance NextGen – as a major driver for funding for NextGen: the Administration’s budget includes a request for $1.1 billion, a 30 percent increase.

Baer also cited prospective initiatives that could total up to $8 billion in capital investments at the New York-area airports, backing the need to increase the passenger facility charge level to $7.

“The truth is, I wish I could operate my airports and complete all the necessary construction while paying the same wages and contractor fees as I did in 2000, but I can’t,” Baer said, adding that while the cost of construction is rising “stealthily,” the PFC level remains at $4.50.

“Absent additional funding from PFCs, I will not be able to deliver necessary projects that provide direct benefits for our customers, where we’ve seen a growing demand as the economy rebounds.”

There is growth down the road for the air cargo business and the new, tighter security rules may give a forward-thinking small airport an opportunity to land new business.

At the second day of the annual ACI-NA Air Cargo Conference, held last week in Seattle, Dave Brooks, American Airlines’ president of its cargo division, talked about state of the industry, the near-term outlook and his airlines’ long-term strategy.

Brooks sees a 5 to 7 percent growth down the road. IATA last week also issued an optimistic forecast. Growth in 2010 follows a 20 to 40 percent drop in cargo volume during 2009. Because of excess capacity in the market, cargo yields collapsed.

Facing the downturn in 2008 and 2009, Brooks said air freight carriers fell into two camps: those who panic would let the shipping rates drop to close to zero and put long-term strategy on ice; and those who do not panic choose to stay in the course on long-term strategy. Those who panicked are not the smaller player, but rather some substantial companies, he noted.

Brooks still sees too many planes chasing too few shipments.

To cut costs, cargo carriers have moved their cargo operation to off-airport in a number of airports. Brooks’ advice to airports is that airports should ensure visibility: “Don’t just show up at the lease meeting. Engage with various local cargo associations and communicate your priorities.”

Carriers and shippers are working to meet an August deadline to have 100 percent air cargo screened. Brooks sees some periodic delays and backups; however, he is confident that major players have done enough preparation to meet the mandate. He said airports should allow third-parties to set up screening facilities.

The approaching screening deadline can present an opportunity to smaller airports, Brooks said. If there are delays and backups at major gateway airports, Brooks said shippers may divert some cargo business to the smaller airports that are ready to step up to provide the security screening.

In the next few years, American Airlines intends to focus on business re-engineering and process improvement, and attracting market share by focusing on rewards program. The airline recently opened two cargo facilities, one in JFK and one in LAX. Brooks said they firmly believe that these investments will pay off in the next few years. Carriers will coordinate their network to compete.

In his message to airports, Brooks urged them make sure the legislators aware of the value of cargo to the local community and to emphasize the jobs created and maintained by the cargo operations.

Click here to read the article.

This is great news for airports as they convene in Seattle for the 2010 ACI-NA Air Cargo Conference to discuss the current air cargo commercial and policy landscape, the business of air cargo, and strategies to enhance air cargo revenue.

Click here to read more.

Based on security and operational needs, the TSA will deploy AIT units to the following airports:

• Boston Logan International (BOS)
• Charlotte Douglas International (CLT)
• Chicago O’Hare International (ORD)
• Cincinnati/Northern Kentucky International (CVG)
• Fort Lauderdale-Hollywood International (FFL)
• Kansas City International (MCI)
• Los Angeles International (LAX)
• Mineta San José International (SJC)
• Oakland International (OAK)
• Port Columbus International (CMH)
• San Diego International (SAN)

Advanced imaging technology is intended to screen passengers for metallic and non-metallic threats—including weapons, explosives and other substances hidden under clothing. According to the TSA, several factors are taken into consideration before AIT units are deployed:

1. Airport readiness
2. Checkpoint infrastructure
3. Ability to ensure privacy protections (e.g. capability to include separate, remotely located room for viewing images)

Click here for ACI-NA’s FAQs on the roles and responsibilities Of airports in aviation security. Click here to learn more from DHS.

On a related note, click here to view ACI-NA’s statement on the nomination of Robert A. Harding for TSA Assistant Secretary.

A year ago, it predicted that the annual growth rate would be 3.8 percent.

The FAA is now projecting that the annual U.S. passenger volume will hit the 1 billion mark in 2023. A year ago, that mark was projected to be reached by 2021. In the 2008 forecast, which was prepared before the spike in fuel prices, the 1 billion mark was projected to be reached by 2016.

This year’s forecast looks out to 2030 with a projection that 1.21 billion will be traveling U.S. airports at that time.

To put this potential congestion into perspective, the FAA calculates that 704 million flew in the U.S. last year.

See also Greg Principato’s blog on the forecast.

The FAA prepares the forecast in part so it can plan its workforce and facilities to meet the demands of growing traveling public. In its forecast book, the agency does not make an assessment of the airports preparation to meet these demands.

One element of intelligence within the forecast for airport planners is the projections of just who will be flying and the type of aircraft that will be used. The bottom line, the FAA projects that regional carriers will continue to fly an ever-increasing percentage of the U.S. passenger load and all of their new planes will be in the 70-90 seat category. Over the next 20 years, the forecast anticipates that all 50-set regional jets will be pulled from the fleet.

The FAA projects that the mainline carriers’ enplanements will decrease by 0.9 percent this year. This is a marked improvement over the past year when enplanements were projected to drop 9.5 percent in 2009. Over the next 20 years, mainline carriers (both network and low-cost) are projected to grow at an annual rate of 2.4 percent.

After a one-year decline in 2009, regional carriers are projected to continue on their growth curve. The FAA predicts the regional passenger enplanements will grow 4.6 percent this year and at an annual rate of 2.9 percent over the next 20 years.

The FAA is projecting that mainline aircraft will increase from 3,666 in 2009 to 5,342 in 2030. In the same timeframe, the FAA projects that the regional jet fleet will grow from 1,710 to 2,441.

And, remember the projections of 400 very light jets entering the market every year? These small personal jets were viewed as potentially “gnats” clogging the skies above major cities. The FAA now projects there will be 440 VLJs entering the U.S. fleet over the next three years and then just 216-a-year for the rest of the forecast period.

Rep. Richard E. Neal accepts ACI-NA Commissioners Congressional Leadership Award from Elsie Rast Stuart of Columbia (S.C.) Metropolitan Airport

In accepting the ACI-NA 2010 Commissioners Congressional Leadership Award, Rep. Richard E. Neal (D-MA) said he will continue to fight the battle for a permanent waiver of the Alternative Minimum Tax, which was eliminated for two years under the American Recovery and Reinvestment Act.

“I have fought the battle on AMT for more than a decade; I think it’s that important,” Rep. Neal said. “I want to make the AMT holiday for your constituents permanent.”

Along with the support of Rep. Neal on the House Ways and Means Committee and Sen. John Kerry (D-MA) on the Senate Finance Committee, ACI-NA’s three-year education and lobbying effort on the AMT has helped achieve a major goal in airport funding with the exemption of new private activity bonds from the AMT in 2009 and 2010. With the exemption, airports have had great success in finding buyers for the bonds and have had the ability to refund some existing bonds.

Airports across the country have taken advantage of the AMT holiday to fund the essential continuation of major infrastructure improvement projects at airports, from terminal renovations to runway improvements. These construction projects have resulted in the creation of thousands of jobs.

“The national subject that is in the foreground for all of us is creating jobs, and the quickest way to get those jobs created is based upon the work that you do,” Rep. Neal told airport directors in accepting his award. “When I hear people complain about airport congestion and then in the next breath they oppose any sort of expansion or growth, it’s inconsistent, and we need to call them on that.”

With airports relying on bonds to finance 53 percent of their capital construction needs for safety, security, and infrastructure projects, making the AMT waiver permanent will continue to be a top priority for ACI-NA in 2010.

In a presentation Wednesday morning to the ACI-NA/AAAE Spring Legislative Conference, Jarrod Thompson, a Republican staff member of the Senate Aviation Subcommittee, said there are several issues that the two bills – as currently written – differ dramatically, such as: hiking and indexing the PFC ceiling, setting new standards for airport rescue and fire fighting operations and permanently waiving the alternative minimum tax on airport bonds sales.. The Senate bill is tied up in the Senate Finance Committee. Thompson said that the committee has not resolved the future of the AMT waiver because it is not viewing the waiver on its merits, but instead is concerned about the loss in tax revenue.

While Senate support for the FAA reauthorization has enjoyed bipartisan support, Thompson said the tone the Senate may take in the conference meetings could be influenced by the outcome of the healthcare debate, fiscal spending-jobs creating bills and the upcoming elections.

Before Thompson spoke, three Democratic congressmen addressed the assembled airport directors with a similar message: the FAA reauthorization is a jobs bill. A multi-year FAA measure would provide funding for long-delayed airport capital improvements, the implementation of NextGen and improve airport security – all are certain job creators.

“When you visit your senators,” said U.S. Rep. Michael Michaud (D-Maine), “point out that the FAA reauthorization will create jobs.” Michaud is a member of the House Transportation and Infrastructure Committee.

A member of the U.S. Air Force Reserve, who has served four tours flying into Iran and Afghanistan, U.S. Rep. John Boccieri (D-Ohio) noted that the U.S. has invested more than $1 trillion in rebuilding airports in those two nations. It should, he said, be investing in making the airports here “safer and more efficient,” especially with the projected growth in passengers in the next 10 years.

In addition to urging that the Senate take quick action on the FAA bill, U.S. Rep. Dina Titus, a Las Vegas Democrat, praised the Administration for including additional TSA funding for more K-9 units, advance screening technology and hiring more behavioral screening specialists. “We need to spend less time patting down little grandmas and more time looking for those who match the terrorist profiles,” Titus said. She sits on both the House Transportation Committee and the Homeland Security Committee.

He noted that Homeland Security Secretary Janet Napolitano met recently with the leadership of both ACI-NA and AAAE to ensure that airports are involved in the development and implementation of TSA policies. Macias said they have formed a “working group” to improve and maintain open communications.

In addition, Macias said the department is working with the ACI-NA In-Depth Security Review Task Force to reduce inefficiencies by scrapping or revamping security directives that may no longer be needed or are in conflict with other directives. The fourth meeting of the group will be later this month in Orlando, he said.

In response to questions, Macias said that the funding to install 300 full body scanners this year will pay for some airport modifications needed to accommodate the new equipment. However, TSA won’t fund major capital improvement that could be needed to facilitate the installation.

As part of the ongoing review of security standards for general aviation, Macias said the recent targeted crash in Austin by a small plane into an IRS facility will be reviewed. “We are certainly studying that incident with the Homeland Security Institute for lessons that can be learned and how to keep the skies safe as we write that rule,” he said.

When asked what the biggest challenge for 2010 would be, Babbitt indicated that the economic environment would still pose significant difficulties for airports to maintain the efficacy of critical operations. “When traffic is down, airport revenue is down. Our concern is when people have to pare back because revenues drop, that they maintain the levels of safety that we expect. When people start cutting programs, we want to make sure that safety programs are not cut.”

Other issues discussed in this exclusive interview included NextGen implementation, changes to the current Aircraft Rescue Firefighting (ARFF) standards, and reductions in aviation greenhouse gas emissions.

Other stories featured in the March issue of Centerlines include:

• Revenue Arena: The Name of the Game in Parking
• LEEDing Green Terminal Design
• Policy Corner: AMT: It’s Déjà Vu All Over Again in 2010
• Safety Management System Pilot Programs

Click here for an advanced preview of the cover story. Click here to listen to a podcast of this interview.

ACI-NA says EPA should revisit the flawed analysis used as the basis for the proposal, which underestimates the rule’s associated costs and overestimates its environmental benefits. EPA also did not account for the safety and operational impacts of its proposal.

In a joint letter published in the “Departures” column of the March 1 issue of Aviation Daily, Greg and Jim stressed the significant impacts that a long-term FAA reauthorization bill would have on the economy. “Over the longer term, FAA reauthorization would create conditions for the next wave of economic growth. In the short term, the bill will immediately create good construction and technology jobs, giving local economies the jumpstart they need.”

The job pool in the U.S. airline industry has been shrinking steadily for a year and a half. In December, scheduled passenger airlines had 3.3% fewer workers than they did a year ago. It was the 18th consecutive month in which employment dropped from the previous year.

This concerns the Teamsters Union, as it has contracts that cover more than 64,000 airline employees. It’s also a big concern for ACI-NA. Airports are experiencing layoffs and furloughs. In the past year, 35 airports lost all service and almost 300 more are down to only one carrier.

“Both of us fear that much more will be lost if Congress doesn’t quickly summon the will to tackle the problems faced by our aviation system. It is important to remember this is a jobs generator that is already on the congressional “to do” list.”

Click here to view the letter published in Aviation Daily (paid subscription required).

In his testimony, Principato stressed that safety “is always an airport operator’s top priority,” and airports work to ensure that facilities are well-equipped to clear runway and airfield pavement in snow and ice conditions.

In addressing the environmental effects of deicing, Principato cited the Environmental Protection Agency’s development of new regulations to address runoff from airport and aircraft deicing operations. ACI-NA will submit extensive comments on EPA’s proposed rulemaking for Effluent Limitation Guidelines on Feb. 26.

Secretary Napolitano identified the following initiatives she wants DHS, TSA and the industry to work collaboratively to address:

• Deployment of Advanced Imaging Technology (AIT) to airports
• Using Explosive Trace Detection (ETD) to screen passengers’ palms
• Expanded use of TSA proprietary canines at airports

Principato led the industry dialogue by explaining that since security measures are implemented at airports, it is critical that DHS and TSA coordinate their initiatives with the industry. Given the global nature of the aviation industry, Principato applauded the Secretary’s efforts to work with other countries toward the development of uniform security standards and offered the assistance of ACI as the officially accredited airport representative to the International Civil Aviation Organization. The offer was accepted enthusiastically.

The Secretary was interested to hear about the impact of the enhanced security measures at Canadian airports and pledged to evaluate alternative procedures that minimize the operational impacts.

All participants recommended better communication with the industry and asked the Secretary to support ACI-NA’s In-Depth Security Review initiative to evaluate all airport Security Directives, identify outdated requirements for clarification and rescind those measures that are duplicative or no longer make sense given the evolution of the threat and/or countermeasures.

-Christopher Bidwell