Finance Committee Projects

 

The Finance Committee works on a multitude of projects which consist of the 2008 Airport Performance Benchmarking Survey sent out by ACI-NA twice a year, developing an online database system, planning the 2008 CFO Summit, identifying best practice management reporting metrics for monitoring capital project performance and cataloging expertise & airline experience of members to serve as a resource link for other committees.  Further development of these issues and more are handled by the three working groups of this committee:

  • Benchmarking/Metrics Working Group 
    Form 127 Update: FAA is in agreement with the changes to the Form 127 proposed by the committee leadership and airlines (ATA).  The new form is structured like GASB Statement of Revenues and Expenses. It includes two years of information with percentage changes and operating statistics among other information.  It separates passenger airline revenue from other aeronautical revenue which allows consistent calculation of cost per enplanement, a key performance indicator widely used by industry stakeholders.  The Benchmarking Working Group also provided improved definitions to FAA in early February.  FAA is currently looking into the proposed changes and obtaining internal approvals and OMB concurrence.  Once this is done, FAA needs to update software and online data entry application.  The goal is to complete by early 2009 so that it is applicable for all FY 2008 fiscal year end information.
     
    2008 ACI-NA Benchmarking Survey: The 2008 survey was launched in late March. Changes to various areas of last year’s survey was implemented such as including “functional” expense categories that allows comparisons of high level functional costs between airports such as airfield, terminals, grounds maintenance, police, fire, administration, etc.  Two training sessions were provided to participating airports, one of which took place in conjunction with the 2008 Airport Economics and Finance Conference on April 30.  Thirty members attended and Version 2 of the survey was released shortly thereafter with additional changes.  The second training session was an online collaboration conducted in late May.  The online training session will be provided every year to allow for more participation as this will reduce travel time as well as cost for members.  ACI-NA staff will be working on compiling the survey results and build a database for this survey.  Responses received before the 1st deadline – May 10 will be included in the first release and the final deadline is July 31st.  As of July, 35 airports have submitted their survey response. To view the Survey Form please click here: 2008 ACI-NA Airport Performance Benchmarking Survey
    Currently, the working group is recruiting volunteers to develop scope of work for the online database tool. This can assist staff with drafting RFP to go out for bid. The online survey tool would allow participating airports to respond to the survey request online, make any changes at any time, as well as extrapolate any necessary information for peer comparison, making the entire benchmarking process an easier experience.

    Performance Management:  The Working Group submitted a new Airport Cooperative Research Program (ACRP) problem statement in April to the Transportation Research Board, proposing research into the development of a comprehensive list of Benchmarks metrics for Airports.  This would be the second Phase of ACRP 01-06 on Performance Management.
    The Working Group agreed to add an additional focus to the Working Groups mission to begin focusing on best practices in performance management and strategic planning within the Airport industry with a special effort to support the development of ACRP 01-06.

  • Accounting/Budgeting/Financial Reporting Working Group: This working group pertains to issues that are related to airport-airline relationship, and use and lease agreements between airports and airlines. The working group works on identifying emerging trends and best practices relating to:
    o Discussions/negotiations between airports and airlines regarding capital project planning including capital projects consultation process;
    o Opportunities for airports to explore providing services historically provided by airlines;
    o Airline rate making methodologies, and enhancing and streamlining rates and charges consultation processes.
    The working group was further divided into seven task forces, each comprising 10-15 members, which allowed for a more focused collaboration within the working group with representatives from airports of different sizes as well associate members.

    Working group leadership recently had a meeting with IATA on transparency issues in airport rates and charges and performance benchmarking. As a result of this meeting, IATA representatives will be invited to discuss these issues further with a broad representation of airports at the upcoming CFO Summit.
    The working group also put together a session with the support from ATA to include both airport CFOs and airline corporate real estate directors at the 2008 Airport Economics and Finance Conference. The session covered what makes good consultation and the complexities in transparent rates and charges negotiations. Through the dialogue, the session also identified best practices of key elements of rates and charges packages for airline negotiations, annual budget process, capital program and benchmarking. The session was very well received by conference attendees. 
  • Airline Business/Airline Use Agreement Working Group:  This working group works to develop a standard industry best practice approach to providing statistical information to comply with GASB 44; develop a standard industry reporting structure; and obtain consistent application of PFC reporting requirements from airlines.  This group also identifies best practice management reporting metrics for monitoring capital project performance and PFC collection process.

    An Airport Cooperative Research Program(ACRP) problem statement was submitted in April to the Transportation Research Board, proposing research into the development of a handbook consisting of current best practices related to all phases of capital project management. This problem statement also includes the development of an IT application for easier access of the handbook by the airport industry. It will be reviewed by the TRB ACRP Oversight Committee in late July.

Also See: