AGENDA *NOTE TO ALL PUBLIC ATTENDEES · 09.01.2017 · recommendation for approval for parking....

AGENDA

Greenville-Spartanburg Airport Commission Regular Meeting Greenville-Spartanburg International Airport Conference Room C – Administrative

Offices Monday, January 9, 2017

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 November 21, 2016 Regular Meeting Minutes (document)

B. Acceptance of Audit Committee October 21, 2016 Meeting Minutes (document)

III. PRESENTATIONS:

A. Cargo Facility Requirements (document)

IV. OLD BUSINESS: None

V. NEW BUSINESS:

A. Approval of Public Parking and Rental Car Facility Recommendation (document)

B. Approval of a Budget Amendment for the Corporate and General Aviation Bulk Storage Hangar Project (document)

GREENVILLE-SPARTANBURG AIRPORT COMMISSION AGENDA Monday, January 9, 2017

VI. PRESIDENT/CEO REPORT:

A. Aviation Industry Update B. Customs Border Patrol (CBP) Reimbursable Agreement C. FBO Transition Update

VII. INFORMATION SECTION:

(Staff presentations will not be made on these items. Staff will be available to address any questions the Commission may have.)

A. November 2016 – Traffic Report (document) B. November 2016 – Financial Report (document) C. December 2016 – Development/Project Status Report (document) D. December 2016 – Communications Status Report (document) E. December 2016 – Commercial Business and Properties Report (document) F. December 2016 – OSHA Reportable Injury Report (document) G. Industry Presentation(s)/Article(s) of Interest (document) H. Potential Items for the Next Regular Scheduled Commission Meeting:

• Approval of Cargo Facility Recommendations • Investment Policy Borrowing Capacity Presentation

VIII. COMMISSION MEMBER REPORTS:

IX. EXECUTIVE SESSION:

The Airport Commission may hold an Executive Session for the purpose of receiving legal advice on various matters.

X. 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.

GREENVILLE-SPARTANBURG AIRPORT COMMISSION

MINUTES

November 21, 2016

The Greenville-Spartanburg Airport Commission met on November 21, 2016 at 9:00 a.m. in the Greenville-Spartanburg District Office Conference Room C located at 2000 GSP Drive, Suite 1, Greer, South Carolina 29651. The public and media were given proper notice of this meeting, under applicable law. This was a regular, non-emergency meeting. MEMBERS PRESENT: Minor Shaw, Hank Ramella, Bill Barnet, and Doug Smith, Leland Burch, Valerie Miller MEMBERS NOT PRESENT: None STAFF AND LEGAL COUNSEL PRESENT: David Edwards, President/CEO; Kevin Howell, Vice President Operations/COO; Jack Murrin, Vice President Administration and Finance/CFO; Scott Carr, Vice President Commercial Business and Properties (Environs Area Administrator); Nathan Garner, Director, Aviation Services; Kelly Wiggs, Aviation Services Supervisor; Betty O. Temple, WCSR; Stefanie Hyder, Executive Assistant/Recording Secretary.

GUESTS PRESENT: Alan Robinson, Cherry Bekaert, LLP; Mr. Van Heusen, public guest; Bob Montgomery, Spartanburg Herald Journal CALL TO ORDER: Chair Minor Shaw called the meeting to order at 9:00 a.m. CONSENT AGENDA: A motion was made, seconded, and unanimous vote received to approve the regular meeting minutes from the September 8, 2016 Commission Meeting.

PRESENTATIONS:

A. Retail Concessions and Parking Program Updates

Mr. Scott Carr, Vice President Commercial Business and Properties, provided an informational overview of the airport’s food, beverage, and retail concessions program.

As part of the overall Wingspan project, the airport opened new restaurants and stores in the Grand Hall area with a few others still under construction. In January 2015, MSC Branded Foods was assigned to OHM Concessions Group. The change in operators has led to an increase in sales, roughly 30%. Food and Beverage stores in Baggage Claim also saw an increase of 9% and the retail side for the Hudson stores on Concourses A and B experienced an increase of approximately 14%.

As a reminder, a centralized receiving and distribution facility (CRDF) will be online the first part of 2017. The contract was awarded to Bradford Airport Logistics earlier this year. All terminal bound deliveries will go through South Cargo for redistribution to tenants. The CRDF allows Staff to meet/address several TSA requirements, and free up both airside space as well as front terminal curb space.

Furthermore, Mr. Carr provided an update on the airport’s parking program. Currently we have just fewer than 5000 parking spaces. Mr. Kevin Howell, Vice President Operations/COO, is currently leading a $1.8 million overflow and cell phone parking lot expansion project which will generate an additional 425 economy lot spaces. In the interim, this will require shuttle bus transportation to the terminal.

As enplanements continue to grow year-over-year, the demand for parking services has continued to increase. Total parking space occupancy over last 9 months, comparing 2015 to 2016, reveals an increase in occupancy and closer to regularly breaking the 80% occupancy threshold. In conclusion, parking and rental car demand continues to grow steadily based on increased enplanements, parking facilities are routinely full on Tuesdays and Wednesdays, and rental car facilities are restrained based on ready return spaces. As a result, additional facilities will be needed to meet both current and future parking demand of the traveling public in the near future.

At the January 9, 2017 GSP Commission Meeting, Airport District Staff will present a recommendation for approval for parking. The three options include a new surface economy lot with a shuttle bus service and some interim rental car solutions in Garage A, a new surface economy lot with PRT service and interim rental car solutions in Garage A, or a new parking garage at the current daily lot location and a new rental car facility.

Mr. Carr further discussed new parking services/proposals to be offered in 2017 to include valet parking, a new software module that shows available spots, and a Park Assist program. Mr. Carr responded to questions of the Commission Staff.

District Staff requested that the Commission provide questions, comments, and/or requests for additional information related to the parking program prior to the next Commission meeting on January 9, 2017 when Staff will request approval of one of the parking recommendations.

OLD BUSINESS:

No old business

NEW BUSINESS:

A. Acceptance of Greenville-Spartanburg International Airport Financial Audit and Schedules of Expenditures for the Fiscal Years Ended June 30, 2016 and 2015, and Report of Independent Auditor

Mr. Bill Barnet opened the discussion regarding the results of the financial audit. The Audit Committee met on October 21, 2016 and was presented with the audit findings by Mr. Alan Robinson of Cherry Bakaert, LLP.

Bill Barnet turned the meeting over to Mr. Jack Murrin and Mr. Robinson of Cherry Bekaert, LLP. Mr. Robinson presented a summary of the results of June 30, 2016 Audited Financial Statements to the Commission. Cherry Bekaert presented and rendered an unmodified and clean audit report on the financial statements. They had no adjustments or corrections. Mr. Robinson stated that they also conducted special audits of three of the vendors. Mr. Robinson, again, presented the audit with an unmodified, clean opinion with no findings or adjustments to the financial records.

The two most significant items of focus this year were the ongoing construction projects and the liability that had to be recorded for the state pension. Management recorded a non-cash liability of which Mr. Robinson stated was about $11 million.

Mr. Robinson responded to questions of the Commission.

Mr. Barnet recommended, on behalf of the Audit Committee, that the Board approve and accept the audit report and results.

There was a motion to approve and accept the Financial Audit and Schedules of Expenditures for the Fiscal Years Ended June 30, 2016 and 2015, and the Report of Independent Auditor and unanimous vote was received.

B. Approval of Lease Terms for Alamo/National Rental Car Concession Agreement Amendment #1 and Associated Construction Project Funding

Alamo/National Rental Car is in need of additional space as their fleet continues to grow. The Airport District has negotiated the terms of a lease amendment to the existing Alamo/National Rental Car concessions agreement. This amendment will be for the construction and subsequent lease of an additional 30,000 square feet of pavement at their service facility. This area will be used to store rental cars.

Staff obtained a preliminary project cost estimate of $343,500. Staff did not identify any alternatives. The total estimated project cost of $343,500 will be covered by the Customer Facility Charge (CFC) Fund. The funds are restricted to rental car facility improvement projects and other operational related needs such as this proposed project.

Mr. Kevin Howell responded to questions of the Commission regarding the timeframe of this project including the bid timeline.

Mr. Carr respectfully requested the Airport Commission to (1) approve the lease agreement amendment terms, (2) authorize Staff to proceed with the project utilizing the CFC fund based on actual construction bids received, and (3) authorize the President/CEO to execute all necessary documents.

There was a motion to (1) approve the lease agreement amendment terms, (2) authorize Staff to proceed with the project utilizing the CFC fund based on actual construction bids received, and (3) authorize the President/CEO to execute all necessary documents. The motion was seconded and unanimous vote was received.

C. Approval of Lease Terms/Agreement for CenterPoint Properties Ground Lease

CenterPoint Properties has negotiated an agreement with ProTrans to construct a 230,256 square foot office and warehouse facility on approximately 20 acres of land at the GSP International Logistics Park (Tract B). ProTrans is a logistics company and currently located in Greer on Highway 14.

Staff negotiated ground lease terms with CenterPoint Properties. The lease terms include a base term of thirty years. There are two ten year option periods on that base year for a total of a fifty year lease agreement if executed. The lease premises are slightly over 20 acres. The ground rental rate is approximately $64,128.00 annually in Year 1. Rents will be adjusted annually by CPI. At the end of the base term and each option term, the Airport District has the right to conduct a fair market value reappraisal of the property. The tenant is responsible for maintenance, utilities, and insurance, as well as zoning, taxes and assessments. They do have the right to sublease and sign the agreement with the approval of the Airport District.

Mr. Scott Carr respectfully requested the Airport Commission to (1) approve the lease terms/agreement and (2) authorize the President/CEO to execute a lease agreement with CenterPoint Properties.

There was a motion to (1) approve the lease terms/agreement and (2) authorize the President/CEO to execute a lease agreement with CenterPoint Properties. The motion was seconded. Commissioner Doug Smith abstained from roll call vote.

PRESIDENT/CEO REPORT:

Aviation Industry Update: The industry is healthy with record profits on the airlines side. United Airlines is experiencing a strong turnaround in customer service and otherwise with the return of Mr. Oscar Munoz. Traffic continues to grow on a national basis. President-elect Donald Trump has a one trillion dollar infrastructure program that he wants to implement. President-elect Trump is also supportive of privatizing air traffic control. Mr. Edwards responded to Commission questions regarding the traffic report. He reported that seats are down, about a half point. GSP is still seeing a transition from Southwest; flying five flights per day to three flights per day. Southwest increases in frequency may become more likely in 2018.

PRT Update: Mr. David Edwards, President/CEO, and Mr. Kevin Howell visited PRT systems both in Masdar City, Abu Dhabi and Guadalajara, Mexico. They were very impressed with both systems. The system in Masdar City is operating services with what was developed as

a futuristic city with a college campus. The college is linked to MIT. The system in Mexico is in a test bed right now and funded by the Mexican government from a technology standpoint. They did not appear to be ready to have their first project outside of Mexico. Their actual first project will go under construction in January 2017 in Mexico. They will be better prepared to export their technology after construction. ULTra at Heathrow has now solidified their marketing and sales relationship with a firm so they are going to begin external sales and marketing. Staff will wait for systems to play out, but will look at GSP connectivity issues during the master plan process. Mr. David Edwards will be exploring other funding/grant opportunities in December. In looking at a 30 year useful life of the system, there is no question that financially PRT is a better decision than operating a shuttle bus, but a shuttle bus operation will likely be necessary in the interim.

Senator International Cargo Update: Staff is getting stronger with every Senator International cargo operation. Current challenges include staffing and turnover in the warehouse. The break side is much more labor intensive than anticipated. The current schedule includes two arrivals per week; Wednesday at 4 pm and Saturday at 5 pm.

Future Cargo Facility Requirements: There is a shortage of cargo related facilities to include both Apron space as well as cargo warehouse. The demand from Senator International has increased, along with overall demand in region.

In January, Staff expects to present recommendations on how the District should move forward regarding the construction of additional cargo facilities.

Mr. Kevin Howell provided a short, informal presentation highlighting the manpower and equipment needs, as well as the unloading and loading process of the Senator International operation. Senator International is experiencing challenges in moving out freight as well as in Customs.

Kevin Howell reiterated that demand is expected to grow in the near future and already exceeding capacity. Staff is currently researching temporary solutions for creating additional cargo working space and tying those ideas into the master plan. Staff will further conduct a financial analysis and look at AIP discretionary funding at the federal level. Kevin Howell noted cargo operations and patterns at Rickenbacker International Airport.

The Commission shared comments and concerns related to state support, stability, demand and return on investment.

Traffic: As additional information, Mr. Edwards noted that traffic was up 8.5% in September. Staff expects another strong month in October. Cargo was up approximately 20%.

Wingspan: The District expects Wingspan to be substantially complete by December 31, 2016 with a few exceptions. The North Fountain is not yet complete and is awaiting the

specialty granite. Skanska Moss should be completed with everything, including punch, by the end of February 2017.

Ribbon Cutting: The ribbon cutting event will likely be scheduled in February 2017.

COMMISSIONER’S REPORT:

Mr. Burch commented that the ACI-NA Annual World Conference/World General Assembly in Montreal, QC Canada September 23-28, 2016 was a good meeting.

Mr. Ramella noted that many are looking forward to the Commissioner’s meeting at GSP in April 2017.

PUBLIC COMMENT:

Mr. Edwards introduced Mr. Van Heusen who submitted a request for public comment to address the Commission to discuss the proration of the permit fee required by the airport when used by a limousine service. Mr. Edwards reminded the Commission that for all ground transportation operators, the Airport charges an annual permit/application fee of $275 in addition to $3.25 per trip. Historically, the Airport has not prorated that fee.

Mr. Van Heusen presented his case to the Commission and made recommendations regarding prorating the annual permit/application fee of $275.

Staff will look into Mr. Van Heusen’s recommendations.

EXECUTIVE SESSION:

There being no further business, a motion was made, seconded, and carried to go into Executive Session. The specific purpose of the executive session was to receive legal advice on various matters, specifically the Skanska Moss settlement agreement and a confidential project for property development.

ADJOURNMENT:

At approximately 12:19 p.m., public session resumed with no action being taken. The meeting was adjourned at 12:20 p.m. The next meeting is scheduled for January 9th at 9:00 a.m.

SIGNATURE OF PREPARER:

________________________________________ Stefanie Hyder

GREENVILLE-SPARTANBURG AIRPORT COMMISSION

AUDIT COMMITTEE MINUTES

OCTOBER 21, 2016

The Greenville-Spartanburg Airport Commission’s Audit Committee met at 12 p.m. in the Greenville-Spartanburg Airport District Office Conference Room C located at 2000 GSP Drive, Suite 1, Greer, South Carolina 29651.

COMMITTEE MEMBERS PRESENT: Bill Barnet (Chair), Minor Shaw, Valerie Miller

STAFF PRESENT: David Edwards, President/CEO; Jack Murrin, Vice President Administration and Finance/CFO; Stefanie Hyder, Executive Assistant/Recording Secretary.

EXTERNAL AUDIT REPRESENTATION: Alan Robinson, Audit Partner, Cherry Bekaert LLP

Mr. Barnet opened the meeting and welcomed all in attendance. Mr. Barnet turned the meeting over to Mr. Robinson.

Mr. Robinson presented the June 30, 2016 Audited Financial Statements to the Audit Committee.

Mr. Robinson presented a summary of the service deliverables. The Auditor’s responsibility was to plan and update activities, determine risks, express an opinion on the Commission’s financial statements, and communicate with the Audit Committee and Management.

The two most significant items of focus this year were the ongoing construction projects and the liability that had to be recorded for the state pension. Management recorded just over $10 million, non-cash. Mr. Robinson referenced a footnote on page 21 of the Report regarding new and upcoming accounting pronouncements. A discussion followed.

Mr. Robinson discussed the results of testing. Cherry Bekaert LLP examined 25 out of 340 construction invoices. Auditors reviewed approvals, adherence to policy, certifications, and sign offs. In aggregate, invoices totaled 86% of total additions for the current year.

Mr. Robinson mentioned that they also conducted three special audits that were deliverables in 2016. The first audit was on Hertz Rent-a-Car. Auditors obtained their monthly rental car contract, data, and recalculated the monthly revenue for a sample of months. There were no exceptions. Auditors also looked at Southwest Airlines. Fees tested are driven by landed weight. Auditors obtained independent verification. There was a thirteen-pound variance. A similar audit was conducted with US Air and American Airlines. There was a 3500-pound variance, but that was deemed not material.

Mr. Robinson referenced the letter, Significant Audit Findings, from Cherry Bekaert LLP that was addressed to the Commissioners of the Greenville-Spartanburg Airport District. This letter is a regulatory required communication. Cherry Bekaert LLP reported that they did not have any

findings. This letter further noted no difficulties encountered in performing the audit, as well as any corrected and uncorrected misstatements (the books were clean with no adjustments). The audit was on time and on budget, with no overruns or extra billings.

Mr. Robinson referenced the letter, Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.

Mr. Robinson referenced an additional letter, Report of Independent Auditor on Compliance for Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance, addressed to the Commissioners on page 37 of the Report. This is a unique requirement because the Airport receives federal funding. There were no exceptions.

Mr. Robinson noted the Schedule of Expenditures of Federal Awards on page 39 of the Report as well as the Schedule of Findings and Questioned Costs on page 41 of the Report. This is a mandatory report, but there were no findings. Mr. Robinson noted that the Auditee qualified as low risk Auditee this year.

During the meeting, the Commission discussed the idea of differentiating financial reporting between the District’s growing land business and the airport operations business. Mr. Robinson referred to the Statements of Revenues, Expenses, and Changes in Net Position on page 16 of the Report. Cherry Bakeart LLP condensed the entirety of the Profit and Loss statement into a one-page schedule. There are rules and levels of disclosure that must be followed and disclosure must be adequate. Mr. Robinson noted that the primary user of this information would probably be a bond underwriter.

At the conclusion of the meeting, Mr. Barnet opened the floor for questions and/or comments.

Mr. Barnet requested that the Audit Committee meet with Mr. Robinson alone.

The Audit Committee then met with Mr. Murrin and Mr. Edwards in separate, private sessions.

The Audit Committee adjourned the meeting at 12:51 pm.

SIGNATURE OF PREPARER: ______________________________________

Stefanie Hyder

2000 GSP Drive, Suite 1 ● Greer, SC 29651 ● Greenville: 864.877.7426 ● Spartanburg: 864.439.4476 ● Fax: 864.848.6225

www.gspairport.com

_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Kevin E. Howell, Vice President/COO DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – Presentation Item A Cargo Facility Requirements BACKGROUND A presentation of the airport’s cargo facilities will be provided. An informational overview of the current facilities versus future requirements, along with planning level cost estimates, will also be presented for Board discussion.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Scott C. Carr, A.A.E., Vice President – Commercial Business and Properties DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – New Business Item A Approval of Public Parking and Rental Car Facility Recommendation BACKGROUND The Airport District continues to see the need for additional public parking spaces as enplanements continue to steadily grow each year. Currently, parking facilities are routinely full 95% or more on Tuesday and Wednesday of each week. This creates passenger frustration in locating an available parking spot in a timely manner and decreases the airport’s ability to be the true airport of choice for travelers. In addition, as enplanements continue to grow, the current rental car counters and ready return spaces are becoming more congested and less efficient. This has led to an increase in customer service complaints as well as suggestions to the rental car companies, through their customer satisfaction surveys, that larger facilities capable of handling peak hour demand be considered. ISSUES The Airport District has examined the construction of a new economy surface parking lot east of the existing economy lot. In addition, the Airport District has evaluated and researched construction of a new Parking Garage C on the current daily lot location. Below are the current project cost estimates for each option:

• New Economy Surface Lot: $ 8,250,000 • New Parking Garage C: $40,000,000


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Greenville-Spartanburg Airport Commission New Business Item A Approval of Public Parking and Rental Car Facility Recommendation Page 2

The economy surface lot option would require the use of shuttle buses to provide passenger service to the terminal building. This service has an estimated annual operating cost of $800,000 in the first year of operation. These costs are based on having a total of four shuttle buses with the following schedule to service both the new and existing economy parking lots: WEEKDAYS & SUNDAY SATURDAYS 1 Bus – 12 a.m. – 4:30 a.m. 1 Bus – 12 a.m. – 4:30 a.m. 3 Buses – 4:30 a.m. – 12 a.m. 2 Buses – 4:30 a.m. – 12 a.m. In comparison to the vastly cheaper capital costs, the ongoing shuttle bus operation and maintenance (O&M) costs need to be taken into account in evaluating the true cost of this particular option. In addition, this option does not address rental car growth and long term facility needs other than some interim improvements at the current Parking Garage A location. Construction of a new Parking Garage C on the current daily parking lot site would provide customers with a short walk to the terminal building and would not require a shuttle bus. In addition, it would provide adequate space for a new rental car customer facility with approximately 13,500 square feet of total counter and office space, and a total of 750 ready return spaces. Based on forecasted enplanement growth at 1.5% annually, this option would address both the public parking and rental car needs for approximately the next 15 years. Please see the attached presentation, Public Parking and Rental Car Facility Recommendation, for additional details and information. ALTERNATIVES None recommended at this time FISCAL IMPACT The new economy surface parking lot option has an estimated project cost of $8,250,000, and projected annual debt service, O&M, and shuttle bus operation costs of $1,405,274.


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With this option, the additional 1,100 new parking spaces bring the total combined parking spaces to 6,488 (Public and Rental Car Ready Return Spaces). These new parking spaces, based on an 80% occupancy rate at $5 per day, generate incremental revenue in the amount of $1,606,000. This option is estimated to have the revenue to cover the annual debt service and O&M expenses by $200,726. The new Parking Garage C, with rental car facility option, is projected to cost $40,000,000 to construct. However, this cost would be split between the $15,000,000 associated with public parking and the $25,000,000 attributed to the rental car facilities. The rental car facility portion is Customer Facility Charge (CFC) eligible and would be covered by those fees. The total annual debt service and O&M costs of this option are estimated to be $2,757,995. However, the incremental revenue generated from the additional 652 public parking spaces, based on an 80% occupancy rate at $14 per day, is $3,054,028. In addition, the additional 364 rental car ready return spaces will generate an additional $387,123 annually. Increased rental car counter and office space will produce another $625,603 in annual revenue. To help defray the costs associated with the rental car facility portion of the project, a CFC increase from the current $4 per day to $5.50 is proposed. This will produce an additional $1,004,469 in annual revenue. The total increased annual revenue for all of these items is $5,071,224. Once the debt service and O&M expenses are deducted, the annual net revenue amount for this option is $2,313,229. This option provides total combined parking spaces of 6,404 (Public and Rental Car Ready Return Spaces) or 84 less than the new economy surface parking lot option. See enclosed Exhibit A – Parking Space, Expense, and Revenue Analysis. RECOMMENDED ACTION It is respectfully requested that the Airport Commission (1) approve the recommendation for the construction of Parking Garage C and new rental car facilities, (2) approve design of Parking Garage C and development of associated probable


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project cost estimates prior to bid, and (3) authorize the President/CEO to execute all required documents.

EXHIBIT A – PARKING SPACE, EXPENSE, AND REVENUE ANALYSIS

Already Add RAC PublicToday Approved (*) Subtotal Spaces Total Portion Parking Total

Gar A 1,071 1,071 1,071 386 1,457 Gar A-RAC 386 386 386 (386) - Gar B 1,505 1,505 1,505 1,505 Gar C - 750 750 Gar C-RAC - 750 750 Daily Lot 484 484 484 (484) - Econ Lot 1,517 425 1,942 1,100 3,042 1,942

4,963 425 5,388 1,100 6,488 364 652 6,404 Note (*) $1.8M cost; w ill require shuttle; additional cell phn parking, restroom, vending

TotalCost 8,250,000$ 25,000,000$ 15,000,000$ 40,000,000$ Amortized over 25 25 25Interest Rate 4.50% 4.50% 4.50%Mo Pymt 45,856$ 138,958$ 83,375$ 222,333$

Ann Debt Serv 550,274$ 1,667,497$ 1,000,498$ 2,667,996$ Add: Ann O&M 55,000$ 45,000$ 45,000$ 90,000$ Add: Shuttle 800,000$

1,405,274$ 1,712,497$ 1,045,498$ 2,757,996$ Cost per Spot 7,500$ 33,333$ 20,000$ 26,667$

Additional Revenue Projections:Add Spaces at 80% occup 4,400$ 8,367$

Annual Revenue IncreasesPublic Parking 1,606,000$ 3,054,028$ 3,054,028$ Incremental CFC revenue 1,004,469$ 1,004,469$ Additional RAC space rental 387,123$ 387,123$ Additional RAC Counters & Offices (10K sf) 625,603$ 625,603$

1,606,000$ 2,017,196$ 3,054,028$ 5,071,224$

Alternative A Alternative B

GSP – Important for Business and Economic Development

AIRPORT COMMISSION MEETING – PUBLIC PARKING AND RENTAL CAR FACILITY RECOMMENDATION JANUARY 9, 2017

gspairport.com January 9, 2017

PARKING FACILITY

OVERVIEW


PARKING FACILITY OVERVIEW

TOTAL CURRENT PARKING SPACES: 4,963 • Parking Spaces Breakdown by Facility:

• Garage A – 1,457 • Garage B – 1,505 • Daily Lot – 484 • Economy Lot – 1,517

• Parking Spaces Breakdown: • Total Public Parking Spaces: 4,577 • Total Rental Car Spaces: 386

TOTAL UPCOMING NEW PARKING SPACES • Overflow Parking & Cell Phone Lot Expansion Project

• Current Fiscal Year Project – $1,800,000 • Approximately 425 Economy Lot Spaces • Will Require Shuttle Bus Services to Terminal • Additional Cell Phone Lot Parking • Adds Restrooms & Vending to Cell Phone Lot

• Once Overflow Parking Project is Completed – 5,388 Total Spaces • Total Public Parking Spaces: 5,002 • Total Rental Car Spaces: 386





ECONOMY & OVERFLOW PARKING LOT – SHUTTLE BUS



0%

20%

40%

60%

80%

100%

120%

2014

2015

2016

TOTAL PARKING SPACE OCCUPANCY – YOY COMPARISON



PARKING SPACE OCCUPANCY BY LOT – YOY COMPARISON

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Garage A Garage B Daily Lot Economy Lot Total

2014

2015

2016

YEAR ENPLANEMENTS REQUIRED PARKING SPACES SURPLUS (SHORTFALL) 2016 1,014,998 5,075 -498 2017 1,030,223 5,159 -157 2018 1,045,676 5,244 -242 2019 1,061,361 5,330 -328 2020 1,077,282 5,418 -416 2021 1,093,441 5,508 -506 2022 1,109,843 5,599 -597 2023 1,126,490 5,691 -689 2024 1,143,388 5,785 -783 2025 1,160,539 5,880 -878 2026 1,177,947 5,977 -975 2027 1,195,616 6,076 -1,074 2028 1,213,550 6,176 -1,174 2029 1,231,753 6,278 -1,276 2030 1,250,230 6,382 -1,380



ESTIMATED FUTURE PUBLIC PARKING SPACE DEMAND

New Overflow Lot - 425 Spaces Added


RENTAL CAR FACILITY OVERVIEW

10 YEAR – HISTORICAL RENTAL CAR GROWTH

YEAR TRANSACTIONS % CHANGE GROSS REVENUE % CHANGE 2006 129,941 $20,547,234.80 2007 133,186 2.5% $20,798,397.60 1.2% 2008 124,411 -6.6% $20,213,393.38 -2.8% 2009 103,335 -16.9% $18,002,642.43 -10.9% 2010 108,301 4.8% $19,113,478.24 6.2% 2011 133,479 23.2% $24,702,480.10 29.2% 2012 161,168 20.7% $26,145,919.16 5.8% 2013 164,391 2.0% $27,684,483.50 5.9% 2014 170,931 4.0% $29,777,101.38 7.6% 2015 178,928 4.7% $30,355,482.84 1.9%

10 YEAR GROWTH 37.7% 47.7%



2016 – RENTAL CAR COMPANY MARKET SHARE

RENTAL CAR COMPANY CURRENT MARKET SHARE PERCENTAGE

ALAMO/NATIONAL 36% ENTERPRISE 18%

AVIS 21% HERTZ 25%

BUDGET 12%

TOTALS 100%



RENTAL CAR FACILITY DEMAND ANALYSIS ALAMO, NATIONAL, & ENTERPRISE SNAPSHOT: Total Vehicles in Fleet: Total Peak Vehicles in Fleet:

2012: 986 2012: 1,190

2016: 1,368 2016: 1,653 Difference: +382 Difference: +463 % Chg: 39% % Chg: 39%



RENTAL CAR FACILITY DEMAND ANALYSIS ALAMO, NATIONAL, & ENTERPRISE SNAPSHOT: Ready Return Spaces: Ready Return Spaces Needed:

2012: 148 2012: 148

2016: 148 2016: 282 (Based on Peak) Difference: 0 Difference: +134 % Chg: 0% % Chg: 91%



RENTAL CAR FACILITY DEMAND ANALYSIS ALAMO, NATIONAL, & ENTERPRISE SNAPSHOT: Rental Counter Work Stations: Rental Counter Work Stations Needed:

2012: 4 2012: 4

2016: 5 2016: 8 (Based on Peak) Difference: 1 Difference: 4 % Chg: 25% % Chg: 100%

PARKING & RENTAL CAR FACILITY CONCLUSIONS

• Parking and rental car demand continues to steadily grow YOY with increased enplanements.

• Current parking facilities are being routinely full on Tuesday & Wednesday.

• Rental car facilities are currently strained including available ready return spaces & rental car counters work stations.

• Long term plan needs to be adopted and implementation started in 2017.


CONCLUSIONS


PARKING FACILITY

EXPANSION OPTIONS


EXPANSION OPTIONS

PARKING & RENTAL CAR FACILITY OPTIONS • New surface economy lot with shuttle bus service with possible

PRT in the future & interim rental car solutions in Garage A. • New parking garage at current daily lot location with rental car

facility expansion incorporated into it.

PROJECT ASSUMPTIONS • Net New Public Parking Spaces: 1,100 • Net New Rental Car Spaces: 364 • Project Amortization Period: 25 Years • Loan Interest Rate: 4.5%


EXPANSION OPTIONS


PRT in the future & interim rental car solutions in Garage A.

ESTIMATED PROJECT & ANNUAL COSTS

• New Surface Parking Lot: $8,250,000 TOTAL ESTIMATED PROJECT COSTS: $8,250,000 • Annual Debt Service: $ 550,274 • Annual Facility O&M Costs: $ 55,000 • Annual Shuttle Bus O&M Costs: $ 800,000 TOTAL ESTIMATED ANNUAL COSTS: $1,405,274


EXPANSION OPTIONS


PRT in the future & interim rental car solutions in Garage A.

PROS: • Current daily price point of $5/Day is competitive with CLT and in line with what

non-business travelers want to pay. • Easily expandable in the future as demand warrants on adjacent available land.

CONS: • Not within walking distance of terminal building – Requires shuttle buses to be

leased/purchased & operated. Higher ongoing O&M costs than a parking garage. • Does not provide appropriately sized rental car counter & ready return spaces to

meet current and future demand.


EXPANSION OPTIONS

PARKING & RENTAL CAR FACILITY OPTIONS • New parking garage at current daily lot location with rental car


ESTIMATED PROJECT & ANNUAL COSTS

• New Parking Garage C: $40,000,000 TOTAL ESTIMATED PROJECT COSTS: $40,000,000 • Annual Debt Service: $2,667,996 • Annual Facility O&M Costs: $ 90,000 TOTAL ESTIMATED ANNUAL COSTS: $2,757,996


EXPANSION OPTIONS

PARKING & RENTAL CAR FACILITY OPTIONS • New parking garage at current daily lot location with rental car


PROS: • Provides passengers with close in parking option that’s easily walkable to the terminal

building. • Provides appropriately sized rental car counter & ready return space to meet both

current & future demand. • Lower O&M costs than a new surface economy lot with PRT or shuttle bus operations.

CONS: • Daily price point of $14/Day is more than many non-business travelers would like to

pay. • Capital cost is significantly higher than a new surface economy lot.


EXPANSION OPTIONS

STAFF RECOMMENDATION & JUSTIFICATION

• New parking garage at current daily lot location with rental car expansion incorporated into it.

• Addresses both issues of additional parking as well as rental car counter & ready return space needs for today and the future.

• Rental car companies are supportive of the idea from a conceptual discussion standpoint.

• CFC funding is available for build out of the new rental car facilities portion of the project (Approximately: $25,000,000).


EXPANSION OPTIONS


• PROPOSED CFC ADJUSTMENT:

• Current Fee: $4.00/Per Day • Adjusted Fee: $5.50/Per Day

• FORECASTED INCREMENTAL CFC REVENUE GENERATED:

• Year #1 - $1,004,469


EXPANSION OPTIONS

STAFF RECOMMENDATION & JUSTIFICATION NEW ECONOMY SURFACE PARKING LOT

PUBLIC

PARKING RENTAL CAR TOTAL Estimated Project Costs $8,250,000 NA $8,250,000

Annual Estimated Expenses (Debt Service, O&M, & Shuttle Bus) $1,405,274 NA $1,405,274

Annual Forecasted Revenue Increases $1,606,000 NA $1,606,000 Difference $200,726 NA $200,726

NEW PARKING GARAGE C

PUBLIC

PARKING RENTAL CAR TOTAL Estimated Project Costs $15,000,000 $25,000,000 $40,000,000

Annual Estimated Expenses (Debt Service & O&M) $1,045,498 $1,712,497 $2,757,995

Annual Forecasted Revenue Increases $3,054,028 $2,017,196 $5,071,224 Difference $2,008,530 $304,699 $2,313,229


EXPANSION OPTIONS

Historical & Forecasted CFC Fund Balance


EXPANSION OPTIONS


• SAMPLE PROJECT SCHEDULE: • Start Parking Garage C Design: June 2017 • Start Construction of New Overflow Parking Lot: June 2017 • New Overflow Parking Lot Completed: October 2017 • Start Construction of Parking Garage C: July 2018 • New Parking Garage C Completed: December 2019


QUESTIONS


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Kevin E. Howell, Vice President/COO DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION - New Business Item B Approval of a Budget Amendment for the Corporate and General Aviation Bulk Storage Hangar Project BACKGROUND On May 9, 2016, the Commission approved a combined project budget of $8,903,000 for the construction of a corporate hangar and bulk aircraft storage hangar. The combined hangars project was designed by the AVCON & McMillan Pazdan Smith design team. Construction bids were received on November 21, 2016. All bids received exceeded the original approved project budget. Staff worked with the project design team and the three (3) lowest bidders to identify possible revisions and value-engineering (VE) items for consideration. The three (3) lowest bidders submitted revised bid proposals on December 19, 2016. ISSUES While the revised December 19th bid proposals were lower than the original bids received on November 21st, the construction costs still exceeded the approved project budget. The May 9, 2016 approved combined project budget is summarized below.


www.gspairport.com

Greenville-Spartanburg Airport Commission New Business Item B Approval of a Budget Amendment for the Corporate and General Aviation Bulk Storage Hangar Project Page 2

Original Combined Hangars Project Budget (May 9, 2016) Corporate Hangar Design, Engineering, Testing & Contingency $466,000.00 Apron & Site Costs $587,000.00 Corporate Hangar Construction $1,800,000.00 Total Corporate Hangar Project Budget $2,853,000.00 Bulk Hangar Bulk Hangar Project Budget $5,250,000.00 Hangar Area Fire Protection/Water Supply Improvements Water Supply Tank/Pumps $800,000.00 Total Combined Project Budget $8,903,000.00

Base Bids Received November 21, 2016 Hogan $15,598,000 Roebuck $16,345,000 Walbridge $16,879,000 JM Cope $18,660,400

Revised Combined Project Budget (December 9, 2017) Design Costs $443,000.00 Hangar/Building Construction Costs $12,082,000 Apron Reconstruction Costs $1,187,042.50 CA/RPR Services (3% of construction costs) $398,071.28 Sub Total $14,110,113.78 Project Contingency (5% of construction costs) $663,452.13 Total Revised Project Budget $14,773,565.90


www.gspairport.com

Greenville-Spartanburg Airport Commission New Business Item B Approval of a Budget Amendment for the Corporate and General Aviation Bulk Storage Hangar Project Page 3

ALTERNATIVES The Commission may decide to not proceed with either the Corporate Hangar or Bulk Storage Hangar, or may elect to further reduce the scope of the combined project. However, without the proposed corporate hangar, the proposed corporate tenant will most likely relocate their operation elsewhere and without the additional bulk storage hangar, Cerulean FBO will be unable to accommodate additional aircraft at GSP. While project costs have increased, Staff recommends constructing both hangars at this time in order to take advantage of efficiencies on the contracting costs and project management side. For the reasons outlined above, Staff does not recommend any alternatives at this time. FISCAL IMPACT The Commission previously approved the $8,903,000 project budget and authorized Staff to utilize the TD Bank line of credit. Staff is requesting approval of a $5,870,565.90 increase to the project budget for the combined Corporate and General Aviation Bulk Storage Hangar Project. The combined hangars project will still be funded by the TD Bank line of credit. RECOMMENDED ACTION It is respectfully requested that the Airport Commission resolve to (1) approve a project budget increase of $5,870,565.90 for the combined Corporate and General Aviation Bulk Storage Hangar Project; (2) authorize Staff to proceed with the project utilizing the proposed line of credit financing; and (3) authorize the President/CEO to execute all necessary documents.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: David Edwards, President/CEO DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item A November 2016 - Traffic Report SUMMARY For November 2016, passenger traffic was strong at 4.6% over the same month in 2015. Cargo numbers for November 2016 were up at 48.4%. Load factors continue to be good with an overall average of 82.7%. A comparison of the North America National Passenger Traffic Growth Averages for 2016 to GSP’s Passenger Traffic Growth is depicted below:


www.gspaiport.com

Greenville-Spartanburg Airport Commission Information Section Item A November 2016 - Traffic Report Page 2

Attached are copies of the detailed traffic report for November 2016. Providing a look forward into the service levels for February 2017 is a schedule comparison for the month vs the same month last year, including flights and seats by airline and non-stop markets served. As such, flights are down at 7.5% and seats are off a bit off at minus 0.5%.

Nov 2016 Nov 2015Percentage

Change *CYTD-2016 *CYTD-2015Percentage

ChangeCategory *MOV12-2016 *MOV12-2015Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportNovember 2016

Passenger TrafficEnplanedDeplaned

89,42689,028

85,62384,942

933,362 893,665926,261 887,476

4.4%4.8%

Total 178,454 170,565 4.6% 1,859,623 1,781,141

4.4%4.4%

4.4%

1,014,9981,004,086

972,000963,086

2,019,084 1,935,086 4.3%

4.4%4.3%

Cargo Traffic (Pounds)

Express and Mail

Freight

Total

919,237905,891

2,022,9742,756,298

1,480505

2,260,2222,188,176

EnplanedDeplaned

EnplanedDeplaned

Subtotal

Subtotal

62010.6%179284.4%

-10.5%26.0%

4,779,272 4,448,398 7.4%

1,825,128 1,985 91846.0%

6,604,400 4,450,383 48.4%

8,210,6946,568,679

21,525,85623,157,175

24,46518,390

29,069,00024,919,929

8,211,6576,569,418

24,685,59825,715,054

29,27032,762

32,801,31527,542,267

27954.9%19951.9%

-24.7%-6.6%

-16.5%

23728.1%

7.9%

33461.0%35618.8%

-25.9%-7.1%

-17.2%

34386.9%

10.1%

44,683,031 53,988,929

14,779,373 42,855

59,463,353 54,031,832

50,400,652 60,343,582

14,781,075 62,032

65,182,676 60,405,662

Tuesday, December 27, 2016

*CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Page 1 of 2



ChangeCategory *MOV12-2016 *MOV12-2015Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportNovember 2016

Aircraft OperationsAirlinesCommuter/Air Taxi

SubtotalGeneralAviation

Military

Subtotal

1,577 1,160

823

1,275 1,819

702

122 102

2,852

Total

2,979

945 804

3,797 3,783

35.9%

-29.9%

-4.3%

17.2%

19.6%

17.5%

0.4%

15,860

15,722

1,678

12,132

18,447

1,221

13,186

20,282

1,263

16,978

17,520

1,764

30.7%

-14.8%

3.3%

-3.6%

37.4%

1.6%

2.9%

28.8%

-13.6%

3.1%

-4.3%

39.7%

1.1%

2.6%

31,582 30,579 34,498 33,468

8,144 8,450 8,746 9,136

9,822 9,671

41,404 40,250

10,510 10,399

45,008 43,867

Fuel Gallons100LLJet A (GA)

SubtotalJet A (A/L)

Total

54,7943,199

934,924

61,1132,528

928,418

642,16226,830

8,783,254

641,88035,857

8,893,043

689,04429,692

9,675,746

706,78739,075

9,956,068

57,993 63,641 -8.9% -1.3% -3.6%668,992 677,737 718,736 745,862

992,917 992,059 0.1% -1.2% -2.9%9,452,246 9,570,780 10,394,482 10,701,930

26.5%-10.3%

-25.2%0.0%

-24.0%-2.5%

0.7% -1.2% -2.8%


*CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Page 2 of 2

Scheduled Airline Enplanements, Seats, and Load FactorsGreenville-Spartanburg International AirportNovember 2016



Change

8,8406,6447,741

Allegiant AirEnplanementsSeatsLoad Factor

-7.1%14.2%

69.8% 85.8% -18.7%

63,69279,549

64,31277,645

80.1% 82.8%

-1.0%2.5%

-3.3%

6,172

28,67920,70825,229

American AirlinesEnplanementsSeatsLoad Factor

12.0%13.7%

80.9% 82.1% -1.5%

255,105312,542

66,51178,876

81.6% 84.3%

283.6%296.2%

-3.2%

23,188

39,19830,83234,757

Delta Air LinesEnplanementsSeatsLoad Factor

10.6%12.8%

87.0% 88.7% -1.9%

344,403396,414

321,421367,060

86.9% 87.6%

7.2%8.0%

-0.8%

34,115

12,22513,35319,312

Southwest AirlinesEnplanementsSeatsLoad Factor

-30.3%-36.7%

76.1% 69.1% 10.1%

107,154161,625

132,244187,717

66.3% 70.4%

-19.0%-13.9%

-5.9%

9,304

Tuesday, December 27, 2016 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.



Change

18,56913,72816,213

United AirlinesEnplanementsSeatsLoad Factor

17.8%14.5%

87.1% 84.7% 2.8%

154,099178,310

135,446160,315

86.4% 84.5%

13.8%11.2%

2.3%

16,167

88,946107,511

85,265103,252

EnplanementsSeatsLoad Factor

4.3%4.1%

82.7% 82.6% 0.2%

Totals924,453

1,128,440719,934871,613

28.4%29.5%

81.9% 82.6% -0.8%

Tuesday, December 27, 2016 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Monthly Enplanements By YearGreenville-Spartanburg International Airport

Enpl

anem

ents

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2014 ‐ 65785 ‐ 60862 ‐ 77715 ‐ 81592 ‐ 87611 ‐ 88079 ‐ 86553 ‐ 82866 ‐ 81045 ‐ 86164 ‐ 78958 ‐ 78335

2015 ‐ 67179 ‐ 60393 ‐ 74551 ‐ 81590 ‐ 86373 ‐ 87141 ‐ 88785 ‐ 85467 ‐ 83142 ‐ 93421 ‐ 85623 ‐ 81636

2016 ‐ 72305 ‐ 70290 ‐ 80039 ‐ 82515 ‐ 90484 ‐ 88648 ‐ 87590 ‐ 85939 ‐ 91129 ‐ 94997 ‐ 89426 ‐ (Blank)


Monthly Seats By YearGreenville-Spartanburg International Airport

Seat

s


20000

40000

60000

80000

100000

120000

2014 ‐ 88767 ‐ 77296 ‐ 94490 ‐ 96811 ‐ 100079 ‐ 98831 ‐ 97012 ‐ 96356 ‐ 95579 ‐ 101779 ‐ 98226 ‐ 92951

2015 ‐ 91860 ‐ 81527 ‐ 88868 ‐ 96494 ‐ 98516 ‐ 100519 ‐ 102048 ‐ 102920 ‐ 104568 ‐ 111284 ‐ 103747 ‐ 99099

2016 ‐ 92472 ‐ 86819 ‐ 100372 ‐ 97311 ‐ 106435 ‐ 105672 ‐ 106834 ‐ 108219 ‐ 112674 ‐ 111344 ‐ 107511 ‐ (Blank)


Monthly Load Factors By YearGreenville-Spartanburg International Airport

Load

Fac

tor

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2014 ‐ 74.11% ‐ 78.74% ‐ 82.25% ‐ 84.28% ‐ 87.54% ‐ 89.12% ‐ 89.22% ‐ 86.00% ‐ 84.79% ‐ 84.66% ‐ 80.38% ‐ 84.28%

2015 ‐ 73.13% ‐ 74.08% ‐ 83.89% ‐ 84.55% ‐ 87.67% ‐ 86.69% ‐ 87.00% ‐ 83.04% ‐ 79.51% ‐ 83.95% ‐ 82.53% ‐ 82.38%

2016 ‐ 78.19% ‐ 80.96% ‐ 79.74% ‐ 84.80% ‐ 85.01% ‐ 83.89% ‐ 81.99% ‐ 79.41% ‐ 80.88% ‐ 85.32% ‐ 83.18% ‐ (Blank)


Total Monthly Passengers By YearGreenville-Spartanburg International Airport

Tota

l Pas

seng

ers


20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2014 ‐ 131247 ‐ 119566 ‐ 154266 ‐ 161560 ‐ 174351 ‐ 173563 ‐ 172021 ‐ 166860 ‐ 160020 ‐ 171401 ‐ 158464 ‐ 153945

2015 ‐ 133961 ‐ 120469 ‐ 146714 ‐ 163861 ‐ 169796 ‐ 172977 ‐ 178967 ‐ 171614 ‐ 165873 ‐ 186344 ‐ 170565 ‐ 159461

2016 ‐ 144183 ‐ 139250 ‐ 159013 ‐ 165371 ‐ 179235 ‐ 174465 ‐ 172990 ‐ 177965 ‐ 179910 ‐ 188787 ‐ 178454 ‐ (Blank)


Scheduled Airline Market Shares (Enplanements)Greenville-Spartanburg International AirportReport Period From November 2016 Through November 2016

7%

26%

38%

10%

18%

Allegiant AirAmerican AirlinesDelta Air LinesSouthwest AirlinesUnited Airlines


Airline Flight CompletionsGreenville-Spartanburg International AirportNovember 2016

AirlineScheduled

FlightsCancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

Aeronaves 2 0 0 0 0 100.0%0

Air Atlanta Icelandic 9 0 0 0 0 100.0%0

Allegiant Air 48 0 0 0 0 106.3%0

American Airlines 456 0 3 4 0 98.5%7

Ameristar Jet Charter 1 0 0 0 0 100.0%0

Berry Aviation 1 0 0 0 0 100.0%0

Delta Air Lines 370 0 0 0 0 100.0%0


AirlineScheduled




Cancellations

Federal Express 44 0 0 0 0 100.0%0

IFL Group 1 0 0 0 0 100.0%0

Jet Blue 1 0 0 0 0 100.0%0

Royal Air Freight 2 0 0 0 0 100.0%0

Southwest Airlines 87 0 0 0 0 100.0%0

Sun Country Airlines 2 0 0 0 0 100.0%0

Swift Air, LLC 2 0 0 0 0 100.0%0

TSM 2 0 0 0 0 100.0%0

United Airlines 336 0 1 1 0 99.4%2


AirlineScheduled




Cancellations

UPS 33 0 0 0 0 100.0%0

Xtra Airways 4 0 0 0 0 100.0%0

Total 0 4 5 01,401 9 99.4%



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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Jack G. Murrin, VP of Administration & Finance/CFO DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item B November 2016 - Financial Report SUMMARY Operating Income was up by 6.92% when compared to the budget for Year-to-Date November 2016. Operating Expenses were down by 11.57% over the budgeted amount for the period. Net operating income was up 43.58% versus the budget through November 2016. For the period ending November 2016, which represents five (5) months of the fiscal year, a total of about $6.02 million has been returned to the bottom line in operating income. Attached is a copy of the detailed financial report for November 2016. Please recognize that this is a preliminary report, unaudited, and only represents five months of activity resulting in variances from budget which can be quite volatile.

November 30, 2016 FINANCIAL STATEMENT PACKAGE

GREENVILLE SPARTANBURG AIRPORT DISTRICT

STATEMENT OF NET POSITION

Current Month Current MonthCurrent FY Prior FY

11/30/2016 11/30/2015AssetsCash Accounts 7,015,773.31 3,458,787.60

Investments-Airport 11,863,610.26 31,447,203.87 Bond Trustee Assets 197,363.67 198,123.85

Accounts Receivable 208,915.39 416,952.22 Less: Reserve for Doubtful Accts -

Net Accounts Receivable 208,915.39 416,952.22

Inventory 168,471.20 146,921.04 Prepaid Insurance 298,410.44 198,582.49

Notes Receivable-RAC District Funds 1,721,180.31 1,943,734.66

Property, Plant & Equipment (PP&E) 353,295,213.65 319,991,822.32 Less: Accumulated Depreciation (129,585,246.02) (120,877,768.08)

Net PP&E 223,709,967.63 199,114,054.24 TOTAL ASSETS 245,183,692.21 236,924,359.97

PLUS: Deferred Outflows of ResourcesUnamort Bond Underw, Insur, Legal Fees 972,466.85 887,006.00

TOTAL DEFERRED OUTFLOWS OF RESOURCES 972,466.85 887,006.00

LESS: LiabilitiesAccounts Payable 1,098,460.54 1,230,455.26 TD Bank LOC 2,164,358.00 - Revenue Bonds Payable 2,015,693.77 2,344,787.12 SCRS Pension Liability 10,446,431.00 9,311,330.00 Benefit Liability 827,112.61 803,234.13

TOTAL LIABILITIES 16,552,055.92 13,689,806.51

LESS: Deferred Inflows of ResourcesDeferred Revenues 1,753,447.31 2,797,616.66

TOTAL DEFERRED INFLOWS OF RESOURCES 1,753,447.31 2,797,616.66

NET POSITIONInvested in Capital Assets, net of Related Debt 221,749,967.63 196,834,054.24

Restricted:A/P - Capital Projects - Restricted 141,669.90 133,336.73 Contract Facility Charge 2,114,780.29 2,081,054.27

Total Restricted: 2,256,450.19 2,214,391.00

Unrestricted 3,844,238.01 22,275,497.56 TOTAL NET POSITION 227,850,655.83 221,323,942.80

Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED


PROFIT and LOSS STATEMENT

November 30, 2016 November 30, 2016

Actual Budget Actual - Budget % Change

INCOMELanding Area:

Landing Fees 1,102,751.90 1,057,893.35 44,858.55 4.24% (a)Aircraft Parking Fees 165,342.50 156,857.25 8,485.25 5.41%FBO Into-Plane & Fuel Flowage 68,623.96 39,602.10 29,021.86 73.28%

Subtotal Landing Area 1,336,718.36 1,254,352.70 82,365.66 6.57%

Space & Ground Rentals 3,636,403.85 3,605,270.35 31,133.50 0.86% (b)Auto Parking 5,458,940.54 4,815,240.35 643,700.19 13.37% (c)Commercial Ground Transportation 65,687.69 56,250.00 9,437.69 16.78%

Concessions:Advertising 115,557.50 166,666.65 (51,109.15) -30.67% (d)Food & Beverage 137,051.07 154,437.50 (17,386.43) -11.26%Rental Car 1,439,555.42 1,314,536.70 125,018.72 9.51% (e)Retail 231,831.26 212,083.35 19,747.91 9.31%

Subtotal Concessions 1,923,995.25 1,847,724.20 76,271.05 4.13%

Expense Reimbursements 516,852.60 502,471.10 14,381.50 2.86%Other Income 438,680.43 430,050.75 8,629.68 2.01%

Total Operating Income 13,377,278.72 12,511,359.45 865,919.27 6.92%

EXPENSESSalary & Benefits 3,386,841.49 4,357,651.20 (970,809.71) -22.28% (f)Professional Services 256,444.20 304,270.85 (47,826.65) -15.72% (g)Promotional Activities 1,013,871.15 533,502.05 480,369.10 90.04% (h)Administrative 413,750.69 487,253.25 (73,502.56) -15.09% (i)Insurance 176,710.40 176,710.40 - 0.00%Contractual Services 796,745.29 1,102,889.60 (306,144.31) -27.76% (j)Rentals & Leases 28,083.30 76,280.45 (48,197.15) -63.18% (k)Repairs & Maintenance 295,360.90 241,217.90 54,143.00 22.45% (l)Supplies & Equipment 337,441.32 359,252.20 (21,810.88) -6.07%Utilities 649,754.57 678,024.30 (28,269.73) -4.17%

Total Operating Expenses 7,355,003.31 8,317,052.20 (962,048.89) -11.57%

NET OPERATING INCOME 6,022,275.41 4,194,307.25 1,827,968.16 43.58%- -

<--------------------------- FISCAL YEAR TO DATE -------------------------------->



REVENUES AND EXPENSES TREND GRAPHS

$1.3

$1.8

$2.3

$2.8

$3.3


Mill

ion

s

CY Historical Operating Revenues (by Month by Year)

2010

2011

2012

2013

2014

2015

2016

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0


Mill

ion

s

CY Historical Operating Expenses (by Month by Year)

2010

2011

2012

2013

2014

2015

2016


November 30, 2016

(a) Landing Fees OVER BUDGET $44,858.55 - Actual passenger airline landed weights are higher than budgeted landed weights

(b) Space & Ground Rentals OVER BUDGET $31,133.50 - American leasehold clean-up renovations 7.5K - American-Piedmont -Ops leasehold renovations 37.8K

(c) Auto Parking OVER BUDGET $643,700.19 - Increase in traffic and parking rates

(d) Advertising UNDER BUDGET $51,109.15 - Some advertising spots are unavailable currently due to construction

(e) Rental Car OVER BUDGET $125,018.72 - Increase in traffic

(f) Salary & Benefits UNDER BUDGET $970,809.71 - Timing: much of July's salary & benefits expense was related to June and therefore booked back to June

- Budgeted full year for FBO employees that won't be on payroll until Dec 2016

(g) Professional Services UNDER BUDGET $47,826.65 - Timing

(h) Promotional Activities OVER BUDGET $480,369.10 - Advertising expense 140K under budget YTD - Special Events expenses 80K under budget YTD - General marketing expenses 633K over budget YTD-Business Development expenses budgeted in prior year - Sponsorships expenses 67K over budget YTD

(i) Administrative UNDER BUDGET $73,502.56 - Dues & Subscriptions 45K under budget YTD - Corporate Function 25K under budget YTD

(j) Contractual Services UNDER BUDGET $306,144.31 - Management agreement expenses 170K under budget - (300K Centralized Distribution facility expenses not yet incurred) - Janitorial Services 78K under budget YTD - Nursery & Landscaping 17K under budget YTD - Elevator & Escalator 42K under budget YTD - Telephone Equipment 18K under budget YTD - Plants 13K under budget YTD

(k) Rentals & Leases UNDER BUDGET $48,197.15 - Timing: expenses should increase over the year

(l) Repairs & Maintenance OVER BUDGET $54,143.00 - Timing: - Projects-Unanticipated 32K under budget YTD - Equipment R&M 72K over budget YTD - Runways/Taxiways/Ramps 21K over budget

Note: Please recognize that this is a preliminary report, unaudited, and only representsFive month of activity, resulting in variances which can be quite volatile.

YTD ACTUAL VS YTD BUDGET FOOTNOTES


Issue Maturity Interest Cost Basis or EOM FMVDate Date Rate BOY FMV Par FMV Adj

US TreasuryUST T-Bill 4-wk 11/3/2016 12/1/2016 0.243% 4,999,066.65 5,000,000.00 4,999,066.65 -

11/3/2016 12/1/2016 0.243% 4,999,066.65 5,000,000.00 4,999,066.65 -

-

Subtotal-UST 9,998,133.30 10,000,000.00 9,998,133.30$ -

Weighted blended

yield = 0.2430%

Greenville-Spartanburg Airport DistrictNovember 30, 2016

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.



Terminal Improvement Project

cash basis cash basis cash basisthrough: 11/30/2016

FYE YTD FYE YTD FYE YTD FYE YTD FYE YTD FYEBudgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 Total

Skanska 9,570,188$ 35,931,932$ 22,815,954$ 31,914,360$ 3,341,305$ 103,573,738$ Baker (aka LPA) 1,367,784$ 2,742,449$ 765,298$ 1,051,980$ 241,458$ 6,168,970$

RS&H 2,916,235$ 2,650,023$ 5,566,258$ Jacobs 961,516$ 885,315$ 942,348$ 394,840$ 83,121$ 26,307$ 3,293,446$

Air-Transport IT Services 424,339$ 424,339$ RJ Design 65,350$ 220,050$ 285,400$

At&t 205,594$ 205,594$ A3 Communications 170,341$ 170,341$ Warco Construction 153,350$ 153,350$

G2 Secure Staff 8,508$ 85,979$ 31,889$ 126,376$ McGriff 32,890$ 51,436$ 84,326$

Project Link 42,509$ 27,799$ 70,307$ CDW Government 1,911$ 62,649$ 3,062$ 67,622$

Phoenix Mechanical 62,000$ 62,000$ Michael M. Simpson 49,696$ 9,957$ 59,653$

Parsons Brincke 50,000$ 50,000$ Tidewater Lumber 30,434$ 1,908$ 918$ 33,260$

I-SYS 31,277$ 31,277$ TPM 29,212$ 29,212$

Duke Energy 22,088$ 22,088$ Source Group 21,196$ 21,196$

Other 400$ 57,128$ 64,692$ 87,935$ 5,486$ 19,615$ 235,256$ Total 123,762,496$ 3,878,151$ 14,786,745$ 40,535,386$ 24,696,747$ 33,208,296$ 3,628,685$ 120,734,009$

Cumulative $ Spent 3,878,151$ 18,664,896$ 59,200,282$ 83,897,029$ 117,105,325$ 120,734,010$ % of Budget spent 3.13% 15.08% 47.83% 67.79% 94.62% 97.55% 97.55%

Construction 9,635,538$ 35,934,969$ 22,953,017$ 32,073,196$ 3,341,305$ 103,938,025$ Professional 3,877,751$ 5,002,818$ 3,667,600$ 993,082$ 1,135,100$ 267,765$ 14,944,116$

Owners Reserve 400$ 148,389$ 932,817$ 750,649$ 19,615$ 1,851,869$ Total -$ 3,878,151$ 14,786,745$ 40,535,385$ 24,696,747$ 33,208,296$ 3,628,685$ 120,734,010$

Cumulative $ Spent 3,878,151$ 18,664,896$ 59,200,281$ 83,897,028$ 117,105,325$ 120,734,010$

0$ 0$ 0$ (0)$ 0$ -$ (1)$

through: 11/30/2016FYE FYE FYE FYE FYE YTD FYE

Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 6/30/2017 TotalCrawford Strategies 261,000$ 10,900 61,157 75,948 76,776 60,253 21,800 306,834 Launch Something 279,730$ 25,870 90,133 23,045 20,604 10,146 - 169,798

Total 540,730$ 36,770 151,290 98,993 97,379 70,399 21,800 476,632

Cumulative $ Spent 36,770$ 188,060$ 287,053$ 384,433$ 454,832$ 476,632$ % of Budget spent 6.80% 34.78% 53.09% 71.10% 84.11% 88.15% 88.15%

TIP Public Relations Expenses



Other Operating and Maintenance Reserve Funds

FY $ Amount $ Amount

Authorized Date Used YTDEmergency Repair/Replacement/Operations Fund 750,000$

7/12/2016 3,000$ Barton Utilities Inc.11/30/2016 30,753$ GLF Construction Corp-Remove apron and replace drain box aprons w/12' reinforced concrete

33,753$ 716,247$ Remaining Reserve

Business Development Obligations/Incentives 600,000$

-$ 600,000$ Remaining Reserve


Procurement / Capital Acquisitions

Project/Item Description Date

Monthly $

Amount

Capital Improvements:GLF / Apron Rehab Phase II 11/1/2016 864,679 Jonscot General Contractors/ N Cargo Bldg. Project 11/7/2016 108,360 Michael Baker / FBO Hangar 2 Renovation 11/7/2016 67,189 Avcon / Apron Rehab 11/7/2016 47,845 Avcon / FBO Hangar Project Design 11/10/2016 85,588 Avcon / FBO Additional Hangar 11/10/2016 67,247 GLF / Apron Rehab 11/10/2016 385,635 Glyn Babb Paint Contractor / FBO Hangar Improv Phase I 11/10/2016 48,852 Michael Baker / FBO Hanger Water Supply 11/10/2016 23,129 Avcon / N Cargo UPS 11/17/2016 11,786 Avcon / FBO Hangar Project Design 11/17/2016 41,553 Avcon / FBO Additional Hangar 11/17/2016 32,649 Avcon / Terminal Apron Rehab Phase II 11/17/2016 34,403 Jonscot General Contractors/ AS Air Conditioning Cart 11/21/2016 20,867 Mecklenburg Roofing / RAC Roof Renovations 11/21/2016 22,592 Michael Baker / Parking Garage 11/21/2016 12,268

Equipment and Small Capital Outlays:Aeroservicios/ Commander Loader 11/7/2016 265,000 Clyde Machaines / Caster Bed Pallet Trailers 11/7/2016 228,400 Aero Specialties / GSE for the FBO 11/8/2016 251,370 In Plain Sight, LLC / Terminal Art 11/8/2016 16,600 Michael Krondl / Terminal Art Project 11/17/2016 23,261 SHI International Corp / FBO Printers and Copiers 11/17/2016 16,333 Joan Weissman / Terminal Art Project 11/17/2016 15,441 Vic Bailey Ford / OPS Truck 11/30/2016 32,331

Renewals and Replacements:WK Dickson / Airside Garden Rehab 11/21/2016 13,309 Landscape Forms / Airside Gardern Rehab 11/21/2016 14,215 Mavin Construction / Airside Garden Rehab 11/30/2016 304,845

Professional Service Projects:

Total Procurements/Capital Additions for the month 3,055,746$

November, 2016


www.gspairport.com

_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Kevin Howell, Vice President/COO DATE: January 9, 2017 ____________________________________________________________ ITEM DESCRIPTION – Information Section Item C December 2016 – Development/Project Status Report SUMMARY Terminal Improvement Program (TIP): Status – Project wrap-up continues on the Enabling Package and Bag Claim/South Bridge packages. The Core Phase construction is currently underway. Project Budget – $125,000,000 Estimated Completion Date – March 2017 Enabling: SKM continues to work on several completion items from the Enabling Phase. The contractor also continues to work on Enabling punchlist work and closeout simultaneously. On September 15, 2015, SKM requested the Owner complete the punchlist inspections for specific remaining areas of work. The Owner and CA Services Team completed these inspections and provided the punchlist reports to SKM. Some areas were not complete and not ready for inspection. SKM continues to work on the identified items. Bag Claim/South Bridge: The Bag Claim/South Bridge Phase continues to progress towards completion as SKM attempts to wrap up several completion and punchlist items simultaneously. On September 15, 2015, SKM requested the Owner complete the punchlist inspections for specific remaining areas of work. The Owner and CA Services Team completed these


www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item C December 2016 – Development/Project Status Report Page 2

inspections and provided the punchlist reports to SKM. Some areas were not complete and not ready for inspection. SKM continues to work on the identified items. Core & Concourse: During the month of December, SKM continued to work towards substantial completion for the Core and Concourse phase. Work primarily continued in the Grand Hall area near the down escalators, exit lane areas, administrative office area, and conference room space. The down escalators to both concourses were put into operation in early December. The adjacent stairs are expected to be in use in January after the handrails are complete. SKM is reporting all Core and Concourse phase work will be substantially complete by December 31 except the north fountain, airside garden terrace and signage.


www.gspairport.com


Core & Concourse Project Photos

A Concourse Down Escalator


www.gspairport.com


North Exit Lane – Advertising Display Cases


www.gspairport.com


Administrative Office Area


www.gspairport.com


Commission Boardroom


www.gspairport.com


District Administrative Offices – Reception Area


www.gspairport.com


TIP Core financial activity occurring through November 2016


www.gspairport.com


Apron Rehabilitation Project Phase 3: Status – Construction Phase Project Budget – $5,000,000 Estimated Completion Date – Fall 2017 The Apron Rehabilitation Project Phase 3 includes the Year 3 recommended items outlined in the 2012 LPA Apron Pavement Study. Year 3 priority items included rehabilitation of the A concourse concrete apron surfaces from the building to the new trench drain (Apron Rehab Phase 1), and from the new trench drain to the apron taxi lane. Project engineering is led by AVCON, Inc. GLF is the contractor for the project. Phase 1 of Phase 3 is complete and the project is currently in a shutdown mode for the winter until approximately March 1, 2017. Airside Garden Rehabilitation Project: Status – Closeout Phase Project Budget – $1,650,000 Estimated Completion Date – December 2016 The Airside Garden Rehabilitation Project is a budgeted FY16 capital project and includes the replacement of much of the landscape and hardscape surfaces in the airside garden. Other work includes repair/rehab of the airside fountains, irrigation system, and exterior lighting in the garden area. Work will follow the adopted Landscape Master Plan concepts. The design phase will be led by WK Dickson who is supported by Seamon Whiteside and several other specialty sub-consultants. The general contractor for this project is Mavin Construction. Mavin is supported by Shurburtt Group, Inc. for the landscape portion of the project. The contractor is currently working on punchlist and close out items. Consolidated Hangars Project: Status – Bidding Phase Project Budget – $8,903,000 Estimated Completion Date – TBD


www.gspairport.com


The Consolidated Hangars Project was approved in May 2016 and includes construction of a new Corporate Hangar and a new Bulk Storage Hangar. The design is led by AVCON along with McMillan Pazdan Smith. The project was bid on November 21, 2016. All bids exceeded the project budget and the project team has been working with the three lowest bidders on value-engineering (VE) and revising the scope to get the project closer to the original budget. A recommendation will be presented at the January Commission meeting. Emergency Call Station Project: Status – Construction Phase Budget – $200,000 Estimated Completion Date – April 2017 The Emergency Call Station Project involves the installation of emergency call stations in the Economy Lot, Daily Surface Lot, and at all levels of the two parking garages. A Request for Proposals (RFP) was produced with the assistance of Michael Baker International and the Faith Group. The contractor for this project is SDI. Field installation will start as soon as equipment arrives. 2102 GSP Drive Hangar Project (PSA MRO Hangar): Status – Construction Phase Budget – $1,600,000 Estimated Completion Date – April 2017 The 2102 GSP Drive Hangar Project includes the renovations and improvements necessary for the PSA MRO Hangar. Design is being led by Michael Baker International who is supported by several local area engineering firms. Cely Construction is the contractor for this project and is currently mobilizing and will begin work early in January. Airport Master Plan: Status – Contract Negotiation Project Budget – $1,000,000 Estimated Completion Date – 12 to 18 months


www.gspairport.com


The Airport Master Plan is a budgeted FY17 capital project. The last GSP Master Plan was conducted in 2003. An RFQ process was completed. McFarland Johnson was determined to be the first ranked firm/team. The scope and fee agreement is being finalized. Project kick-off is tentatively scheduled for January 2017.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Rosylin Weston, Vice President - Communications DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item D December 2016 – Communications Status Report News Stories Broadcast, Print and Online 12/01/16 – 12/28/16:

• WYFF TV – GSP Diaper Drive • WYFF TV – South Carolina Another ID to Travel • Fox Carolina – Special Delivery – GSP Staff donates thousands of diapers • Fox Carolina – School bands, music groups to perform at GSP during the holidays • Fox Carolina – Travelers see smooth Wednesday morning at GSP • WSPA – GSP Diaper Driver to benefit Diaper Bank of the Carolina • WSPA – CBS This Morning – GSP Poinsettia Tree highlighted as a part of a story

about Greenville, Joel Poinsett and the Poinsettia Plant

Community Relations/Social Media 12/01/16 – 12/28/16: • The Holiday Music Series kicked off on November 21st and ended on December

19th. This event was organized by GSP Public Relations Specialist, Courtney Gee. Eighteen area schools and organizations performed in half-hour blocks inside the terminal at baggage claim. The performances were well received by passengers and tenants and, as a result, Staff posted 24 videos to the various GSP Social Media sites. The post with the greatest reach (4,891) was the Hughes Middle School Orchestra performance.

• The GSP Airport District partnered again this year with the Spartanburg Salvation Army to provide Christmas for 24 area children. All of the District departments, as well as a number of airport tenants including airlines, TSA, rental car agencies, ABM Parking and G2 Secure Staff, each took and filled the Christmas wish list of a needy child. The airport hosted a pizza party for the children complete with a visit from Santa.

• The GSP Airport District was a sponsor of Ice on Main and Christmas in Greer.


www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item D December 2016 - Communications Status Report Page 2

Online Statistics 12/01/16 – 12/28/16: Elevatingtheupstate.com (Blog)

• 1,208 Sessions • Average session duration - :44 • Pages viewed per session - 2.03

GSPAirport.com

• 100,527 Sessions • Average time on page - 01:08 • Average number of pages viewed per session - 3:08

Top Twitter Posts/Followers

• Coming soon to GSP - Benefits Makeup kiosk! • Wanting to buy a gift made in Upstate, South Carolina? Check out our local gift

guide on today’s WINGSPAN post • 5,285 Followers

Facebook

• 9,986 people viewed videos • 8,392 Total Page Likes • 129,845 people engaged with our posts

Top Facebook Posts

• Senator International First Flight Video (6,841 people reached, 816 post clicks, 202 likes, comments and shares

• GSP Economic Impact Video • Visitors to Facebook have the ability to rate businesses that they visit using a

star system that ranges from 1 – 5 with 5 being the best. GSP has received an overall rating of 4 Stars. Here is an example of what customers are saying about GSP on Facebook:

5 Stars “I live in Chicago so my basis for comparison is O’Hare. Flying out of GSP yesterday was consistently eye opening. Driving the rental car (Avis) back to the airport was like we were driving to a park or something – uncrowded roads along landscaped grounds leading to a parking lot across the street from the terminal. Spotlessly clean terminal again with no crowd. When we approached the security checkpoint there was ONE person in line ahead of us. Everyone we encountered was super nice and helpful. GSP is a GEM of an Airport.” Karl Huf, December 28


www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item D December 2016 - Communications Status Report Page 3

4 Stars “I love that most of the time, the wait time is short, TSA is friendly. I wish there were a few places to eat, but I see with the growth, some spots are being put in. Also would be nice to have a shuttle from the parking lot.” Shelia Wilson, December 21 2 Stars “Convenient location and great size however, evening arrivals are a pain. Wait forever for Jet Bridge and as much as 30 plus minutes for luggage. I fly in and out of this airport a few times each month and I would rate it FIVE stars if only they’d address these deficiencies.” Sherry Laws, December 17

Instagram • 202 Followers with an increase of 22 since November 2016

Art Update 12/01/16 – 12/27/16: GSP Art Program Phase 2 was listed on Café and on the GSP website as of December 16th. The link to the RFP has also been sent to Jennifer Evins who has agreed to promote the RFP among local artists with connections to the Chapman Cultural Center. Other channels for local distribution are also being explored. The RFP will remain active until March 1, 2017.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Scott C. Carr, A.A.E., Vice President – Commercial Business and Properties DATE: January 9, 2017 ___________________________________________________________ ITEM DESCRIPTION – Information Section Item E December 2016 – Commercial Business and Properties Report SUMMARY Concessions Program Development – Grand Hall Phase: Status – Dunkin Donuts, Baskin Robbins, and Hudson and Tech-On-The-Go retail stores opened for business on October 29, 2016. Chick-Fil-A and DC3 Dawgs construction work is underway. A building permit for The Kitchen by Wolfgang Puck has been issued by Spartanburg County. The contractor is expected to begin work in January 2017. Project Budget – All facility costs are included in the overall $125,000,000 TIP and all tenant fit out costs are being covered by Hudson News Group and OHM Concessions Group. Estimated Completion Date – March 31, 2017 Concessions Program Development – New Concourse Satellite Seating Areas: Status – Construction at both concourse locations is approximately 90% complete. Project Budget – All costs are being covered by OHM Concessions Group. Estimated Completion Date – January 13, 2017 OHM Concessions Group recognized the need for additional seating at R.J. Rockers Flight Room and Thomas Creek Grill. To accomplish this, a satellite seating area is being added directly across from each restaurant on both concourses.


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Greenville-Spartanburg Airport Commission Information Section Item E December 2016 – Commercial Business and Properties Report Page 2

Centralized Receiving and Distribution Facility (CRDF) Project Status – UPS relocated to North Cargo Apron and BAL is preparing to begin construction in the former UPS leasehold space. Project Budget – All operational costs will be recovered through existing concessionaire and tenant lease agreements. Estimated Completion Date – February 17, 2017 Bradford Airport Logistics (BAL) will provide receiving and distribution services to all terminal building tenants. This primarily includes food, beverage, and retail deliveries, as well as pick up of returnable items such as empty beer kegs and outdated magazines. In addition, they will handle collection of used grease for the concessionaires. All terminal building FedEx and UPS packages, office supply deliveries, etc. for terminal building tenants will also be handled through the CRDF located at the South Cargo Building. This will remove delivery trucks from the limited space along the terminal building front curb, as well as eliminate the need for some of these vehicles to come airside to make their deliveries. AirIT – Flight Information Display System (FIDS), Gate Information Display System (GIDS), and Baggage Information Display System (BIDS) Installation Project Status – New FIDS, GIDS, and BIDS screens are currently being installed throughout the terminal building. Some are brand new while others are replacements. New flight information templates are being built by AirIT. FlightView is building their new template for the Live Air Traffic map as well as reconfiguring the automated airline data feeds. Project Budget – $303,362 Estimated Completion Date – January 13, 2017 The Airport District is transitioning to AirIT for all FIDS, GIDS, and BIDS. This will provide seamless integration with AirIT’s EASE software at each of the 13 gates for the GIDS, as well as place the BIDS and FIDS on the same software platform. AirIT – Paging Installation Project Status – All new speakers have been installed by the terminal building contractor. Staf is awaiting IED (paging subcontractor to AirIT) to schedule their onsite visit to begin installing the new headend paging equipment.


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Project Budget – $471,683 Estimated Completion Date – January 31, 2017 The Airport District is transitioning to AirIT and IED’s paging system. This will provide seamless integration with AirIT’s other software programs in use at the airport (i.e. EASE, BIDS, FIDS, GIDS, etc.) and place them on the same software platform. This will allow the airport to provide automated flight information announcements and other customer service enhancements for the benefit of the traveling public. Turner Broadcasting Network – CNN Airport Network Project: Status – Site walk-through completed on October 20, 2016. Contract negotiations are underway. Project Budget – All installation costs are being covered by Turner Broadcasting Network/CNN Airport Network. Estimated Completion Date – To Be Determined Turner Broadcasting Network is offering to install their CNN Airport Network product in the concourse hold rooms to help provide an additional level of customer service to the traveling public. Based on current negotiations, the Airport District would receive six minutes of advertising space each hour to either sell or use for marketing of the Airport. As an example, the current 30 second TV commercial that is running on WYFF, WSPA, and WLOS could air up to 12 times each hour in between CNN’s programming. Turner Broadcasting Network – Cartoon Network Project: Status – Discussions/negotiations are ongoing. Airport District network requirements are still under review. Project Budget – All installation costs would be covered by Turner Broadcasting Network/Cartoon Network. The Airport District would have to provide network bandwidth to support the live streaming capability required for multiple users which may result in an ongoing operational cost. Estimated Completion Date – To Be Determined Turner Broadcasting Network is exploring the idea of providing children with the Cartoon Network and other children’s programming via the Airport District’s WiFi network to any WiFi capable device (i.e. computers, smart phones, tablets). This would be free of charge and would help keep children occupied while waiting for their flight on the concourses.


www.gspairport.com


Hollycrest Bed & Biscuit – Pet Hotel Program: Status – Currently working on dual branded marketing materials but services are presently available to travelers. Hollycrest Bed & Biscuit is offering a discount if passengers show their GSP boarding passes. They are keeping track to measure success or usage of the program. Project Budget – All operational costs will be covered by the service provider. Estimated Completion Date – January 31, 2017 To help provide a full line of services to the traveling public, the Airport District has reached out to several local pet kennels regarding pet boarding services to passengers. Lyft – Transportation Network Company (TNC) Service: Status – TNC operating agreement awaiting execution by Lyft Project Budget – All operational costs will be covered by the service provider. Estimated Completion Date – March 31, 2017 Lyft is beginning to open up service in various communities throughout South Carolina. They recently started service in Charleston and have plans to expand into the Upstate, including at the airport, in first quarter of 2017. Valet Parking Program: Status – Currently reviewing proposals from various operators Project Budget – All operational costs will be covered by the selected operator. Estimated Completion Date – February 28, 2017 In order to better compete with surrounding airports, as well as meet the needs of the traveling public, the Airport District has met with a few valet parking operators. This will be a one year trial program to see how well the valet service is utilized and if they will be a customer. AT&T Wireless – Cell Phone Antenna Equipment Upgrade and Capacity Enhancement Project: Status – Plans and specifications were approved. AT&T has delayed work until Q2 2017. Project Budget – All costs are being covered by AT&T. Estimated Completion Date – May 31, 2017


www.gspairport.com


AT&T is in the process of upgrading the existing antenna equipment located on top of Parking Garage A. The project also includes an increase in network capacity to handle increased call volume in the area and reduce the number of dropped and failed calls. National Weather Service/Interior Renovation and Parking Lot Expansion Project: Status – The plans and specifications were approved. The Airport Environs Planning Commission application has been approved. Staff is awaiting the project schedule from National Weather Service’s contractor. Project Budget – All costs are being covered by the National Weather Service. Estimated Completion Date – To Be Determined The National Weather Service is in the process of developing plans and specifications for the renovation of the interior leasehold space in their building, as well as the creation of some additional parking lot space for their maintenance vehicles. FedEx – AT&T Network Based IP/VPN Remote Access (ANIRA) Installation Project: Status – Awaiting plans and specifications for review Project Budget – All costs are being covered by FedEx. Estimated Completion Date – To Be Determined FedEx is requesting to install a backup cellular system for their local data network to provide redundancy in the event that their wired data connection is interrupted. This project will be engineered and installed on behalf of FedEx by AT&T. FedEx – Customer Service Lobby Renovation and Exterior Signage Replacement Project: Status – Construction document comments have been submitted to the FedEx consultant for incorporation into the drawings. Staff is waiting on the project schedule from FedEx. Project Budget – All costs are being covered by FedEx. Estimated Completion Date – To Be Determined FedEx is proposing to completely renovate its customer service lobby with new millwork, carpeting, wall coverings, branding, etc. In addition, FedEx is planning to replace the exterior building signage with its updated branding.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Marsha Madore, Human Resources Director DATE: January 9, 2017 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item F December 2016 – OSHA Reportable Injury Report SUMMARY Monthly Activity as of December 31, 2016

• No OSHA Reportable Injuries 2016 Calendar Year-to-Date

• 5 OSHA Reportable Injuries 2 Year Historical Annual OSHA Report Submissions:

Calendar Year

Annual Average # Employees

Total Hours Worked by

all Employees

# OSHA Reportable

Work Related Injuries

# OSHA Reportable

Work Related

Illnesses

# Days away from

Work 2015 127 192,332 3 0 16 2014 124 202,496 6 0 81

12/30/16, 1)15 PMAirline Bag Fee Collections Reach Another New High | AviationPros.com

Page 1 of 6http://www.aviationpros.com/press_release/12286886/airline-bag-fee-collections-reach-another-new-high

! | Share " | Share # | Share $ | Share

With the U.S. Department of Transportation (DOT)

on Dec. 12, reporting more than $5.3 billion in

baggage and reservation change fees flowing to

airlines in the first nine months of 2016, the

American Association of Airport Executives (AAAE)

once again questioned the continued opposition of

U.S. airlines to updating an optional local airport

user fee known as the Passenger Facility Charge

(PFC) that finances the construction of terminal

projects, new runways and other airport

improvements.

“While the airlines have much to be jolly about this

holiday season with stockings overflowing with

billions in bag fees, they continue to say ‘Bah

Humbug’ when it comes to giving airports additional local flexibility to improve their facilities to better

serve passengers through an updated PFC program,” AAAE President and CEO Todd Hauptli said today.

“Airports are eager to bring joy to travelers, and we will be working to convince a new President and

Congress to remove the outdated federal restrictions on local PFCs that continue to limit necessary

airport development.”

According to data released today by the DOT’s Bureau of Transportation Statistics, airlines collected

more than $1.1 billion in baggage fees in the third quarter of 2016, setting another new record. The

carriers also raked in more than $730 million in reservation change and cancellation fees in the third

quarter. Those gains are on top of the record-level $3.8 billion in bag fees and $3 billion in reservation

cancellation and change fees that the airlines collected in 2015.

Since 2008, airlines have collected almost $28 billion in baggage fees and more than $22.3 billion extra

in ticket change and cancellation fees. That total of more than $50.2 billion in baggage and ticket

change fees does not include other airline ancillary charges such as pet transportation, sale of frequent

flyer award miles to airline business partners and standby passenger fees.

In comparison, last year airports collectively received about $3 billion from the PFC, which is an

optional charge that must be justified locally, imposed locally and used locally on FAA-approved

projects that enhance local airport facilities. The federal cap on the local PFC has not been adjusted

since 2000. The $3.8 billion in bag fees airlines collected in 2015 also exceeds the $3.35 billion the

federal government provided for airport grants at all eligible airports across the country in FY 2016

through the Airport Improvement Program.

Because bag fees are not taxed at the same 7.5 percent excise tax rate applied to base airline tickets,

the Airport and Airway Trust Fund lost more than $236 million in the first nine months of 2016. Since

2008, the $27.9 billion in bag fees that are not taxed have cost the Trust Fund almost $2.1 billion in

foregone revenue – money that could have paid for airport capital projects and air traffic control

modernization efforts.

Voice your opinion!

REQUEST MORE INFORMATIONREQUEST MORE INFORMATION

Dec 13 2016 12:04Posted by Peter

This article is flawed. It is using a figure of total ANCILLARY REVENUE (i.e,

non-ticket revenue). This revenue includes a huge amount beyond bag fees

and reservation change fees. In fact the largest proportion by far is "frequent

Airline Bag Fee Collections Reach

Another New High

Norwegian Air Launches Winter Charter

Season at MKE

BoI: Thailand Set to Become Asean Hub

Delaware North to Provide Free Meals to

Military this Holiday Season

New Restaurants &

Retail Coming to

AIRPORTS

AIRPORTS

AIRPORTS

AIRPORTS

AIRPORTS

AIRPORTS

12/30/16, 10)28 AMFAA Gets Ready to Roll out SMS | AviationPros.com

Page 1 of 8http://www.aviationpros.com/article/12276192/faa-gets-ready-to-roll-out-sms


In 2016, the FAA published a Supplemental Notice

of Proposed Rulemaking (SNPRM) proposing an

SMS requirement of certain certificated airports.

Under the proposal, these airports would develop

and implement processes and procedures to

proactively identify hazards and mitigate

unacceptable risk. In addition to safety risk

assessment and management, the proposal would

require these airports to also deploy confidential

hazard reporting systems, provide training and

orientation programs, and offer enhanced safety

communications. Together, these elements form the building blocks to support an organizational

culture that values safe practices.

According to Marcia Adams, a spokesperson for the FAA, a Safety Management System (SMS) is the

formal, top-down, organization-wide approach to managing safety risk and assuring the effectiveness

of safety risk controls. It includes systematic procedures, practices, and policies for the management of

safety risk.

“SMS is becoming a standard throughout the aviation industry worldwide,” she said. “It is recognized by

the International Civil Aviation Organization (ICAO), civil aviation authorities, airlines, airports, and air

traffic service providers as the next step in the evolution of safety in aviation. SMS is also becoming a

standard for the management of safety beyond aviation.”

Ken Ibold, national SMS discipline Lead for RS&H and an airport planner said nearly 300 airports in the

country may fall under this requirement.

“This is all about making safety a standard part of airport operations,” said Ibold. “Airports are already

highly regulated and are extremely safe environments. But the goal of the FAA programs is to

anticipate safety challenges before an accident happens rather than react to an accident by altering

processes in order to not let them happen again.”

Photo credit: RS&H

∠ ∠



He said Part 139 Airport Operators will be required to update their Airport

Certification Manual to address the elements of Safety Policy, Safety Risk Assessment, Safety Assurance

and Safety Promotion for operations within the movement and non-movement areas of the airport.

Ibold likes the mandate because of its business-like approach to managing risk.

“An SMS plan is intended to not only reduce the probability of aircraft accidents/incidents on the

airfield, but also help protect workers, passengers and visitors by creating a culture that values safe

practices,” Ibold said. “It can be designed to integrate into the safety programs that airports may

already have in place.”

Ibold said that SMS practices have long been present among other industries and has helped

companies identify safety hazards before they lead to injury or damage.

“The International Civil Aviation Organization, (ICAO) the international version of FAA has been working

on SMS since 2004,” he said. “Because the U.S. is a member state of ICAO, it has to follow their

standards. Thus, the U.S. is compelled to implement SMS.”

Although Ibold believes the FAA mandate is a worthy endeavor, he said the difficulty will be meeting

the requirements of the new rule while not sacrificing efficiency at the airports.

“The rules only say what you have to achieve but

not how,” he said. “It will be up to the airport as to

decide what processes and operations to put in

place to meet the FAA rule. Every airport is

different in terms of its operational environment.

As a result there is so much variance it would be

impossible to create a uniform template that

addresses the safety concerns of every airport.”

Ibold said the FAA is aware of that challenge and

has chosen to prescribe a methodology to

address airport safety issues rather than develop

a “one size fits all” plan.

“That strategy will mean that SMS will be individualized by each airport to address its own unique

needs,” he said.

Some airports, such as Portland International, are already out in front of the SMS rules. According to

Danny Garcia, senior manager, airside operations for Port of Portland, Portland International Airport,

SMS has been on his radar for some time. He said that PDX has worked diligently over the last five

years on safety risk management and its operational impact in order to capture both air traffic

organization and airport requirements of the FAA rule. “We are now having to document and

demonstrate it administratively, but we have always done the work,” Garcia said.

Still, he said that there are so many aspects to what the FAA is trying to regulate each airport will be a

remarkably unique challenge.

“The difficulty will be making a rule that applies to each airport’s individual environment,” said Garcia.

“The rule will have to be broad in nature so that each airport can have find out what works for them.”

Garcia said that establishing a timeline will be virtually impossible as his airport and he could never

fully implement an SMS in 36 months as it will require changes to the airport’s management and

organization structure.

“I appreciate that the FAA is shifting to a different format of a compliance structure that allows me to

determine how to best comply rather than give us a straight rules-based specific methodology,” he

said. “This gives me more latitude and at the same time more responsibility.”

Garcia believes it is the logical evolution of airport

operations to take on more responsibility for

regulations.

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“It is a good business practice to have the right

equipment and the right staff in place for safety,”

he said. ”I think the challenge will be demonstrating

to the inspector that we have all these processes

operating now.”

For Ibold and others in the industry, the question is

how the FAA will implement the new rules. Ibold

said a previous FAA initiative, FAA order 5200.11,

which addressed airfield construction projects, was

originally issued with an effective date then amended to phase in over four years with a schedule

contingent on airport size.

“The greater uncertainly will be how the FAA phases in implementation and to what degree,” he ask.

“Will the schedule require larger airports to implement first followed by smaller ones?”

According to Adams, that will all be worked out over the next 16 months.

“The FAA is implementing the principles of SMS both internally and externally,” she said. “Externally

we’ve supported numerous pilot studies to develop and implement SMS, participated in industry

research including projects by the Transportation Research Board’s Airports Cooperative Research

Program, and developed the SNPRM. The SNPRM comment period closed on September 12, 2016. The

agency now has 16 months to adjudicate the comments and determine whether it will pursue a final

rule.”

David Fleet, director of consulting of Faith Group in St. Louis, believes the new regulations provide an

opportunity for airports to derive more value from their operations.

“So often airports look to the do the minimum to

be in compliance,” he said. “SMS can serve as a

proactive business management practice not only

with the implementation of the new FAA rule, but

also for the entire operation.”

Fleet believes the four components of SMS –

safety policy, safety risk management, safety

assurance, and safety promotion, are very much

needed in the industry.

He said SMS is a proactive way to manage the

airport because it creates the triggers that better

enable you to use risk assessment. An example,

he said, is an airport getting larger aircraft. Risk

assessment provided by an SMS will help Operations understand what the impact will be on adjacent

gates, vehicle service roads, aircraft taxi routes, as well as any impact it may have on the ARFF index.

“Overall, SMS allows you to better assess risk while encouraging the use of inspections because now

you have the plans to make corrections,” Fleet said. “Proactive decisions are based on leading/lagging

indicators that point to better training and orientation on safety hazards.”

“The FAA traditionally has been a reactionary agency,” Fleet said, “making regulations to events that

have occurred already. This allows them to get in front of the risk curve.”

According to Fleet there were 31 airports that went through SMS pilot programs. He said that the FAA

has done a good job of exploring the potential impact of the new regulations.

“The airports that were selected for the studies indicate that SMS will deliver favorable results to them,”

he said, adding he also thinks that it is advantageous that the Advisory Circular and proposed rule will

leave it to the airports as to how they will develop their individual SMS.

Ibold believes many airports will want to seek outside guidance on the SMS implementation from

selected experts because the new rules will not include the FAA’s usual step-by-step requirements.

“There are not a lot of people who know how to do this and eventually the knowledge will catch up to



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*29 UAE Bound FlightsDiverted Due of Fog

Dec. 29--FUJAIRAH -- The Fujairah Police said via

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other airports in the country, and the facilities

and services at the airport are equipped to meet

the

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the demand,” Ibold said. “Consultants will need to examine the airport’s current processes and figure

out how those processes how do they already fulfill some of the requirement of SMS. Then they can

turn their efforts to fill in the gaps.”

Fleet adds that airports will need proper training, more open communication, integrated technology

systems and incentive programs to make SMS work, contributions he sees coming from the consulting

community as well.

Regardless of where airports are in the development of their native SMS, both Ibold and Fleet believe

implementation of the new rule with its guidance tools and periodic evaluations to ensure continued

will go a long way to making airports even safer.

“This will make safety an on-going priority.”

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12/30/16, 10)24 AMHow Digital Solutions will Help Design the Smart Airport of the Future

Page 1 of 9http://www.aviationpros.com/article/12281709/how-digital-solutions-will-help-design-the-smart-airport-of-the-future


Driven by the rising demands from increasingly

connected travellers, airport operators have more

recently invested heavily in digital technology to

improve passenger journeys.

The SITA Airport IT Trends Survey 2016

commissioned by the Airports Council International

(ACI), forecast projects an increase in global

revenues, pegged at $158 billion by the end of the

year. This robust financial picture has allowed for

generous budgets allocated for IT investments,

with current IT spend likely to exceed $9 billion.

Looking ahead to 2017, the global trend for healthy IT investment is expected to continue, with a

majority (58 percent) of airport operators’ CIOs anticipating even higher budgets to devote toward

improving passenger experience, while 29 percent expect no budget diminution.

Globally, throughout 2016, the majority of airport operators prioritised improving passenger

processing as their main IT expenditure, likely to remain the top priority, with two-thirds of airports

planning major IT developments in passenger self-service solutions. Over the next three years, 34

percent of airports are also planning major investments in digital technologies such as interactive

wayfinding and almost half (48 percent) will be implementing major programs for sensors such as

Bluetooth-enabled beacons.

What these priorities in IT spend indicate is that the concept of a “smart airport of the future” is rapidly

accelerating into the present and will soon evolve from dizzying concept to everyday reality. As the

changes to airport design become evermore hyper-connected and digitally-focused, passengers are

anticipated to welcome the increased levels of choice and control that a smart airport can offer:

“What is clear is that once a passenger starts to use self-service technology, such as kiosks, websites or

mobile devices, they have a high propensity to continue using self-service rather than returning to

human contact for that step of the journey.” – Francesco Violante, CEO of SITA.

Photo credit: SignStix

∠ ∠



In 2016, 85 percent of passengers reported a positive travel experience, (a 5 percent increase from

2015, and after considerable IT investments) with a noticeable rise in positive results where passengers

had the most control and choice in their journey (for example, where they could use self-service

options for steps such as booking, check-in or getting boarding passes.) Where there are currently

limited (or even zero) self-service options (such as security screening, passport control and baggage

collection), passengers reported higher levels of negativity.

The Bigger Picture

Although there is undeniably a real need for digital interaction through mobile devices like

smartphones, digital solutions on a larger scale will also be able to help shape the smart airport of the

future. Digital displays that have been interwoven with various technologies such as beacons and

interactive kiosks can help to create a seamlessly integrated passenger journey.

Interactive Kiosks

Interactive kiosks are among the most popular

technologies currently available in airports,

experiencing high levels of use and positive

reviews from travellers. Throughout 2016, 57

percent of passengers used kiosks to check-in, 18

percent for bag tagging, and 37 percent for

boarding and SITA’s latest ‘Airport Trends’ survey

revealed that 91 percent of passengers that have

used this kind of self-service technology stated

that they would do so again during future trips.

However, while passengers are open to the

concept of using interactive kiosks for various

tasks, the “ease of use” of the kiosk itself is highly

important. Kiosks that are easy to operate experience a surge of adoption, with 86 percent of

passengers being inclined to take advantage of the services they can provide, so long as the technology

is intuitive and simple to operate.

As a digital solution, the flexible nature of interactive kiosks suggests huge potential in the near future

for additional services independent of logistics. Currently, only 4 percent of airports globally offer

passengers the ability to download digital content from kiosks to their smart devices, but another 26

percent have confirmed plans to provide this service by 2019. This means that, in the near future,

passengers can expect to be able to download the latest films straight to their devices, or in-flight

magazines, prior to boarding, which suggests their greater use in smart airports of the future.

Beacons and real-time messages

“Beacon technology unlocks a world of opportunity for airports, with a clear view of who passengers

are, and where they are in the airport.” – Dave Bakker, SITA president, Europe.

For passengers and airports alike, Bluetooth-

enabled beacon technology will become a pivotal

tool in designing smart airports. A network of

sensor technology will be key in helping airports

assist their passengers through crucial points of

their journey, with real-time updates and

personalized messages helping to soothe

passenger pain points and anxieties. Passengers

say they are ready to embrace sensor technology.

Over 90 percent state that they would like

contextually-relevant information regarding flight

updates, bag collection updates and wayfinding

services delivered straight to their smartphones,




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while over 60 percent stated that they would actively rely on these services if they were readily

available.

Beacon adoption in airports has already gone mainstream – over half of airports expect to be using

beacons at check-in, bag-drop, security and in dwell areas by as soon as 2018, and over the next five

years, 74 percent of airports plan to trial context-aware, location-based technology. The integration of

beacons with digital signage systems can open a whole world of opportunity for airport operators and

commercial brands – from targeted ads for premium products as passengers walk through the duty

free area, or security procedure reminders as they travel through the airport itself. With all of the

options for beacon technology and with the technology itself already available, it is likely that the focus

of airport operators will be to consider how the existing technology can be used in relevant and

innovative ways.

Not only can beacons be integrated with mobile devices, but beacon technology can also be used in

combination with digital signage systems to provide a seamless travel experience for passengers. New

York’s JFK Airport has combined beacon technology with digital displays to keep their passengers

informed with up-to-date wait times for Security and Border Protection checkpoints; and have even

extended use to their indoor taxi queue. The beacon technology is used to anonymously and

unobtrusively monitor each passenger’s mobile device as they move through the airport, resulting in

accurate predictions for wait times at certain checkpoints. This digital solution also allows airport staff

to identify and prevent bottlenecks from escalating before they a reach crisis point, resulting in an

overall smoother and more pleasant experience for their passengers. Speaking to SITA, Gert-Jan de

Graaff, president and CEO of JFKIAT, said:

“We’re probably reaching 19.5 million passengers this year in total. It’s a big operation, which is why

we’re introducing innovations to enhance the operations of the building. This new system will help us

manage and eliminate problem spots within the facility, and sharing the processing time with our

travellers will provide them with peace of mind, so they may continue to expect a pleasant travel

experience. Additionally, data from travellers’ phones could eventually influence future airport design.”

American Airlines is another great example of the

use of beacon technology. Using a combination of

beacons, digital screens and a mobile app, AAL

has sought to personalize the experience of

members of their Admiral’s Club. On an opt-in

basis, as members of the club approach the

lounge, nearby beacons will signal the mobile

app, which will ask the passenger if they are

planning to enter the lounge. If the passenger

says yes, the app then communicates via the

beacons with digital screens installed for the

lounge attendants, which will alert them that this

particular passenger is headed to the lounge. The

attendants will be able to see a picture of the

passenger before they enter, as well as view relevant key messages to relay, such as flight updates. The

overall result of this trio of technology is that the lounge attendants can personally greet the passenger

by name as they enter the lounge, and immediately provide any useful or helpful information that they

may need. Jason Newton, American Airlines’ director of CRM, described this concept as “seamless

access,” and stated that the operator believes it will be an “industry first.”

Wayfinding

For passengers, easy and intuitive wayfinding is one of the most crucial factors feeding into a positive

travel experience. As Jim Harding, principal at Gresham Smith and Partners, says, “If the number one

goal is customer satisfaction, then wayfinding is huge.” Easy navigation is not only important to

passengers, but also to airlines: if passengers arrive too late to their gate due to poor directions and an

airline misses their slot for take-off, this is a costly blunder. Digital wayfinding solutions are one of the

most flexible solutions available for airport operators, as they can be easily updated and adjusted to

reflect real-time situations, including changes in location or flight times. By being able to offer the



correct information, at the time it is most needed, airport operators are able to ensure operations are

smooth and stress-free, thereby providing a more pleasant experience for all involved. Digital signage

also affords the opportunity for targeted content, increasing the opportunity for further revenue. One

example is the ability to promote a special offer in nearby restaurants or cafes for passengers if a flight

has been delayed.

Interactive wayfinding and identity management through the use of biometrics is a trend is set to

gather momentum – 34 percent of airports say they are planning major projects for these initiatives in

the near future. Furthermore, real-time assistance that is sent directly to passengers on their mobile

devices will be seen in the majority of airports by 2018; with more than half of airlines planning to

leverage beacon technology to provide important wayfinding information on a personalised, one-to-

one basis.

Baggage Collection

Although digital technology has enabled huge

advancements for many passenger processes,

baggage collection is still the one point of

frustration for many. Baggage collection remains

one of the largest barriers to an efficient and

streamlined passenger process. Indeed, baggage

collection topped the list of mobile services that

passengers would use regularly if they had access

to them; yet it currently has very little (if any)

options available for self-service. Perhaps not

coincidentally, baggage collection is also the area

where passengers experienced the fewest positive

emotions (according to SITA’s latest surveys) and so

it seems clear that this touchpoint would benefit

significantly from digital technologies.

According to SITA’s survey, 79 percent of respondents said that being able to receive live up-to-date

notifications of wait times would significantly improve their experience. Coming in at a close second

was the ability to report mishandled baggage (67 percent) and lastly, being able to see baggage

collection information such as belt number and wait time (65 percent). These huge numbers indicate

that there is a massive demand for digital solutions in this area and digital displays can easily soothe

and ease passenger irritation arisen through lack of communication. Vital information such as belt

numbers and wait times can be deployed and updated via a system of digital networks as a passenger

moves throughout the airport, and mishandled baggage claims could be easily and instantly reported

through interactive kiosks.

The Future is Now

Current and upcoming budget commitments to invest in digital technologies help ensure rapid

progress when it comes to designing “smart” airports that accommodate the hyper-connected nature

of today’s passengers. Passengers and airport operators alike are ready to actively embrace digital

technology for all aspects of the travel experience; whether that may be more self-service options to

increase speed and fluidity of the passenger journey, to interactive wayfinding or targeted advertising.

All of these features mean that the design of future airports will be structured to create journeys that

are as seamless and sleek as possible. Although most of the technology revolves around creating a

more streamlined passenger experience, with more touchpoints providing information, airports too

stand to benefit from these advances, with a higher likelihood of repeat customers and the opportunity

for increased revenues through up-sells and targeted advertising. Overall, the more opportunity for

digital interaction, the better the experience will be for both operators and passengers. With the

majority of airports recognising this, the smart airport of the future is set to very soon become the

smart airport of today.

SignStix is a member of the Digital Signage Federation, the only independent, not-for-profit trade

organization serving the digital signage industry. The DSF supports and promotes the common



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Faces of TSA: William

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*TSA On the Job:

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Passenger: BathroomDenial Preceded Couple'sOutburst During MSPFlight

Dec. 30--A defiant couple disrupted a Delta flight

Wednesday evening soon after it left

Minneapolis-St. Paul International Airport for Los

Angeles, causing an upheaval that forced the

airliner back to the Twin Cities. Police led the man

an

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NY/NJ Port AuthorityPrepares for HolidayWeekend

The Port Authority Police Department (PAPD) will

be employing increased security measures and

additional patrols across all Port Authority

facilities this holiday weekend to ensure the

safety and security of those using agency

airports, bridges...

December 30, 2016

From THE PORT AUTHORITY OF NEW YORK &

NEW JERSEY

PRESS RELEASE

business interests of worldwide digital signage, interactive technologies and digital out-of-home

network industries. To learn more, go to www.digitalsignagefederation.org

Libby Johnson is a Content Marketing Assistant for SignStix, an award-winning digital engagement

platform that allows users to effortlessly create innovative and memorable digital experiences with the

click of a button.

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12/30/16, 10)28 AMHow Mobility and IoT are Transforming the Travel Industry

Page 1 of 8http://www.aviationpros.com/article/12235118/how-mobility-and-iot-are-transforming-the-travel-industry


Smartphones and mobile apps are enabling tens of

millions of road warriors to remain connected and

productive as they travel the globe. Airlines are

offering consumer facing mobile apps with the

understanding that these apps will be the default

connection point for communicating with

passengers. An increasing number of airline and

travel services companies are rolling out mobile

apps for their own employees to improve the level

of service provided to global travelers.

Mobile Apps Transforming Travel

Mobile apps have taken the consumer world by storm, and businesses are following suit as the

enterprise mobility market is expected to reach $360 billion by 2020. Organizations are seeing mobile

as a tool not just for customer engagement, but for business process transformation as well. With its

high percentage of mobile workers, the travel industry has the potential to reap outsized benefits from

mobile apps.

Like many field services dominated industries, most workers in travel or transportation don’t have a

desk. With 71 percent of workers accessing enterprise data on mobile for at least two hours a week,

many businesses need to provide a way for 100 percent of their workers to securely access critical

enterprise systems on-the-go.

Enabling mobile workers is critical in the airline industry. Flight attendants, pilots, mechanics, ticket and

baggage agents and maintenance personnel are all tapping into mobile applications. According to the

2015 Airline IT Trends Survey by SITA, 55 percent of airline personnel use smartphones for work tasks,

and this will grow to 73 percent by 2018.

Mobile devices are critical pieces of technology not only to travelers, but also employees when used by staff tocoordinate duties.

Photo credit: Apperian

∠ ∠



Airline Apps for Employees

Alaska Airlines is a great example of an organization leveraging and seeking benefits from enterprise

mobility. With their powerful mobile ecosystem – the airline is seeing efficiencies across the company

including more on-time departures and arrivals, and better customer experiences. Alaska was the first

airline to equip its pilots with iPads, an innovative step the airline took to meet employee needs.

“People are our greatest asset,” says Derek Chan, enterprise mobility architect, Alaska Airlines. “Their

goal is customer service, so our mobility strategy revolves around our employees and what tools we

can provide that will help them serve the customers as best they can.”

Alaska Airlines is one example of a company in this industry implementing a mobility strategy. Using a

mobile application management and security company, Alaska Airlines has successfully secured its

enterprise mobile apps across more than 10,000 devices via a private, branded app store, boasting an

adoption rate of 70 percent across its workforce.

With large workforces spread across geographies, time zones and languages, mobile apps provide a

flexible method for reaching all types of employees in the travel industry. Whether they are located

inside terminals, on the jet ways, on the ground or in the air, using mobile devices issued to them by

the airline or using a personal, bring your own device (BYOD), organizations leverage a mobile

application management solution to enable these mobile workers with key data and information.

These apps are also critical for workers to

communicate and collaborate with colleagues in

a timely fashion. More so than many other

industries, there are significant time constraints

in making decisions that impact the schedules of

hundreds or thousands of travelers. Mobile apps

allow airlines to deliver information that can help

workers make better informed decisions to

minimize service disruptions.

With the requirements that come with working in

secure environments, it’s vital that mobile apps

are only available to authorized users.

Distributing apps via a public app store is not an

option. Instead, these apps should be pushed privately to users via enterprise mobile app catalogs.

These catalogs can authenticate users, and only present the specific apps that user needs and is

permitted to use.

Making Sense of IoT Data

Mobile apps are democratizing data for customers, putting data once limited to the airlines into the

hands of passengers via apps on their smartphones. As customers have easy access to an increasing

amount of data – flight status, seat assignments, check bag tracking – airlines will need to increase their

ability to make sense and intelligently deliver this data to employees. Providing employees with mobile

apps to interpret and act on this data will provide opportunities to head off potential service

disruptions, or deliver superior service by alerting passengers to potential issues with their travel plans.

In the near future, the flow of actionable data will expand significantly as the cost of connecting things

to the Internet is falling rapidly. Driven by the Internet of Things (IoT) revolution, airlines will

increasingly attach sensors to nearly everything that moves. Instead of tracking airplanes and engines

as is done today, airlines will track an increasing number of individual aircraft parts, service vehicles,

and people. Tracking ground crew can improve response times, but also alert workers to impending

dangers based on their location. For customers, sensors attached to bags could end the nightmare of

lost baggage, allowing airlines to quickly locate, route, and delivery missing baggage.

The primary window for viewing, understanding

and taking action on the data driven by IoT will be

the mobile app. Mobile workers will be the key



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actors that receive alerts about impending changes

in their environment and the processes around

them. They have the best opportunity to take

actions that create benefits as well as avoid or limit

potential losses.

Mobile Apps for AllEmployees

As the travel industry continues to advance with

airlines leveraging technology to improve service,

safety and speed of travel, it is clear that mobile apps are needed on both sides of the ticket counter.

For every capability that is deployed for passengers, there needs to be equal or greater visibility and

control of processes from mobile devices for all airline workers.

In an industry were competition is cutthroat, airlines that don’t effectively deliver mobile apps to their

employees will fall behind those that are putting actionable data in the hands of their employees. The

coming wave of IoT data will only magnify the impact on laggards as travelers will gravitate towards

airlines that provide better mobile experiences driven in large part by a mobilized workforce. The

degree of data that is available to passengers will increasingly be seen as a key determinant for loyalty.

Providing this beneficial data to passengers will require a connected workforce that is plugged in, and

can act on a broad set of IoT data, allowing the airline to deliver a safe and enjoyable travel experience

to millions of passengers.

Chris Hazelton is director of product marketing & strategy at Apperian.

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12/30/16, 1)24 PMNew Year, New Tech: An Airportʼs Guide to 2017 Connectivity Trends

Page 2 of 8http://www.aviationpros.com/article/12282176/new-year-new-tech-an-airports-guide-to-2017-connectivity-trends

Customer-Centric Philosophies Win Out

The Consumer Technology Association (CTA) found in a new survey that 97 percent of respondents are

using smartphones to enhance travel experiences. Additionally, almost half of respondents flagged

that they prefer a travel experience customized to their preferences and would be willing to share

personal information for travel providers to create a more tailored experience. These numbers don’t lie

and it’s clear that passengers want unique interactions and enrichment while passing through to reach

their final destination.

Focusing on the customer experience through technology will be more important than ever before. By

2020, Gartner predicts that 85 percent of business relationships will be managed by the customer

without any human interaction. Consumers appreciate the efficiency and speed of self-service tools

and desire self-help solutions and automation. Airports have made strides with feeding this demand

with deployments that include self-tagging baggage kiosks and mobile ticketing, but we’ve only

scratched the surface. Looking ahead, we can expect to see more airport concessionaires take

advantage of m-commerce and Wi-Fi advertising platforms to drive customers. There will also be a

proliferation of more personalization in apps such as location-based push notifications and serving

customers an automated “thank you” message after making a purchase.

Omni-channel customer support will also be key

because travelers are vaulting from one channel

to another. The human element of customer

service cannot be overlooked as it adds a

personal touch, but airports will more broadly

adopt communication strategies across SMS

texts, social media, online chats, voice and

general online knowledge libraries, such as an

FAQ web page.

Wi-Fi is Not One Size Fits All

Research from Ovum shows that 80 percent of

data consumption is on Wi-Fi. While major

airports have embraced Wi-Fi to better serve travelers and their crave for connectivity, we are entering

a new era of airport wireless that merges both free and paid models—not one over the other. The

growing trend is to offer passengers more choice and control and move away from Wi-Fi networks that

are a one size fits all approach. Airports will increasingly adopt new models that feature tiered classes

of Wi-Fi service because consumers have different needs when it comes to connectivity. This allows

airports to offer free Wi-Fi service to support email or casual Web browsing to one user, while offering

a premium class of service designed to address the needs of an enterprise user.

Boingo for example deploys tiered Wi-Fi networks at more than 20 airports, offering varying connection

speeds up to 50 Mbps. In a typical deployment, airports offer three popular classes of service with

different economic models: complimentary, supported by an ad platform; transactional for the

occasional tech-savvy traveler; and subscription for frequent business travelers who need the airport

to serve as an extension of their office. Prominent airports utilizing Boingo’s tiered approach include

Logan (Boston), O’Hare (Chicago), JFK (New York City), LaGuardia (New York City), and Newark.

Passpoint Adoption CreatesSeamless Connectivity

CNET recently provided readers with a step-by-step

guide for making public Wi-Fi convenient and

secure. While it has useful tips throughout, many

view them as time intensive and tedious. The good

news is seamless auto-authenticating Wi-Fi can be

achieved at airports through a much easier process

thanks to the revolutionary launch of Passpoint, a

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new technology that is now primed for the

spotlight.

Passpoint is a set of wireless protocols that enable seamless, secure, automatic Wi-Fi access, with no

user action needed. Passpoint networks have the power to fundamentally change the way travelers

connect to Wi-Fi, doing away with public Wi-Fi network log-ins and browser redirects, dramatically

improving the experience of connecting at an airport. Developed by a joint task force of leading

wireless industry trade groups and more than 75 of the world’s biggest wireless providers, including

AT&T, BT and Charter Spectrum (formerly known as Time Warner Cable), the Passpoint standards are

finally moving rapidly from years of lab testing to venues like airports, hotels and convention centers.

To create a truly ubiquitous connectivity experience for passengers—one that removes the headaches

of Wi-Fi log-ins and other frustrations—airports should plan for Passpoint adoption. Consumers with a

Passpoint profile installed on their device can enjoy an automatic connection from the moment they

enter the airport or step out of the cab.

Passpoint networks provide a WPA2 encrypted connection automatically, ensuring enterprise-level

security, with no additional software or Virtual Private Network (or VPNs) needed. With several IEEE

802.11 security features, Passpoint transforms the security position of devices connected to hotspots

with guaranteed mutual authentication and over-the-air encryption, as well as restricted peer-to-peer

traffic, helping to protect sensitive information such as passwords, bank account numbers and

personal information. Additionally, the end-to-end authentication protocols ensure unauthorized users

and mobile devices are filtered out, while also protecting authenticated mobile devices from

connecting to rogue—and potentially unsafe—hotspots. In short, travelers get connected faster to a

safer network—a game changer for today’s connectivity experience.

Today, airports including JFK, Midway (Chicago) and LAX have adopted Passpoint and in 2017 we will

see more follow suit.

Wi-Fi Offload Will AddressRoaming Challenges; DASExpands

To alleviate the ever-growing pressure mobile

broadband puts on existing cell towers that

service airports, more traffic will be offloaded

from cellular networks to Wi-Fi to provide the fast

and uninterrupted connectivity travelers have

come to expect. This will especially be an

important trend for addressing consumers’

growing concerns tied to the cost of domestic and

international roaming fees.

Airports will further adopt converged networks that enable Wi-Fi offload and fuel new monetization

opportunities through carrier agreements. When transfer between cellular and Wi-Fi is deployed, it can

be paid for by a primary service provider, like a wireless carrier or cable operator, as roaming onto Wi-

Fi networks can be more cost effective then moving customers onto roaming cellular towers. For

example, Charter Spectrum’s roaming agreement with Boingo gives millions of Charter customers

access to Boingo’s “Passpoint Secure” Wi-Fi networks, saving users on expensive data and roaming

charges.

Distributed Antenna Systems (DAS) have found a home in airports as more and more large venues turn

to the technology to boost coverage and complement Wi-Fi networks. DAS solutions solve capacity and

coverage issues by deploying hundreds of small antennae throughout the airport and integrating them

into a cohesive cellular network. These individual antennae can be turned up or down, easily adjusting

to provide additional capacity when it’s needed most, whether at the height of the holiday travel or low

season. A well-designed DAS setup can also limit interference, ensuring that all sectors of an airport

have equal access to cellular connectivity.

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*Passenger: BathroomDenial Preceded Couple'sOutburst During MSPFlightDecember 30, 2016

NEWS

NY/NJ Port AuthorityPrepares for HolidayWeekendDecember 30, 2016

From THE PORT AUTHORITY OF NEW YORK &

PRESS RELEASE

Key milestones for 5G will also surface, showcasing test deployments of connections that rely on

licensed and unlicensed technologies. These advancements will give airports a view into what they can

come to expect with 5G and what it means for their venue—truly converged networks that boast

higher speeds and capacity; lower latency than existing cellular systems; and greater flexibility.

Technology is ever changing, but airports that embrace connected traveler behaviors and plan for the

exponential mobile data growth of the future will stay ahead of the curve.

Scott Ewalt is the product and strategic customer experience lead for Boingo's global suite of retail

products and services. He oversees Boingo's “Customer 360” strategy, including customer care, the

implementation of CRM, and the integration of all customer touch points and engagements, including

social, chat, voice and email. He previously worked in customer acquisition for Move Inc., the operator

of Realtor.com, a News Corporation company, and as a media planner and buyer for MediaVest and

DavisElen Advertising.

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12/30/16, 1)14 PMSpecial Report: Trump Administration Could Have a Big Impact on Aviation

Page 1 of 7http://www.aviationpros.com/blog/12287289/special-report-trump-administration-could-have-a-big-impact-on-aviation


With President-Elect Donald Trump taking office in

January, transportation has surfaced as a major

area of concern for the incoming administration.

Trump said he wants to spend $1 trillion on U.S.

infrastructure needs during the next decade and

took his first steps towards creating his vision with

the appointment of Elaine Chao as secretary of

transportation.

While a lot of rhetoric is heating up on Capitol Hill

already, there are still a lot of questions as to how

transportation as a whole and the aviation sector will be impacted by the new administration.

“Elaine Chao, I think her focus will be on infrastructure and infrastructure is really going to turn on how

much money and how much authority Congress will give the administration to work in that space,” said

Katie Thomson, partner and chair of the transportation group for Morrison & Foerster. “And it’s exciting

because it sounds like something will be done, but the question is whether it’s going to be enough to

be a sustainable, lasting, meaningful investment in infrastructure from airports, aviation and

transportation all across the transportation sector.”

Many Unknowns

Thomson said Chao is the consummate Washington insider, but hasn’t spoken or written on

transportation issues since she left the U.S. Department of Transportation in the early 1990s, so it’s

hard to get a read on her personal policies might be in the sector, tough she’s generally inclined to

relieve regulatory burdens wherever possible, but she hasn’t signaled any areas in the past 25 years in

regards to aviation or airports.

“That actually could be a good thing because she may be open to creatively thinking about and

addressing issues,” Thomson said. “It could be a bad thing if she just decides that what the airports and

aviation are sort of on autopilot, so they’re good to go and really don’t require much attention.

Photo credit: By Unknown -Public Domain, https://commons.wikimedia.org/w/index.php?curid=344715



Thomson said she doesn’t see any significant regulation changes from Chao in the aviation space

because the Federal Aviation Administration (FAA) has been moving to safety management systems

(SMS) in a proactive gathering of data and risk assessment, which has been well received and bought

into by stakeholders.

Drone regulation needs additional regulation, Thomson said in order to integrate them into the

airspace.

“If we stop today, the economic and societal benefits of drones would never be fully recognized, so the

FAA has to figure out some way to move forward with that,” she said.

Thomson said she expects Chao to be receptive to FAA’s move away from prescriptive command and

control “you got to design it this way in order for it to be safe,” oversight to more performance-based

design standards allowing for greater flexibility in the regulated community.

“That’s just a smarter way of doing regulations, so that’s a trend that I expect to see continue,” she said.

Of the $1 trillion Trump has said he will spend on infrastructure, Thomson said the administration

hasn’t given any indication of where the money will come from or what it will fund, so there’s no clear

answer on how the aviation sector could change.

“It’s all in play and as I said, the president-elect

seems very sincere about making those

investments, but I think it’s going to be a bit of a

free-for-all as people fight over what this

infrastructure investment should look like, how

it’s going to be paid for, is it going to be private

investment, is it going to be public funding, is it

going to be some combination of the two and

where will it go,” she said.

Buy America requirements also face an unknown

future with the new administration. Trump’s

rhetoric on the campaign trail suggested a

strengthening of Buy America requirements for

federally funded projects, Thomson said, but because of the impact they have on a business

perspective, it’s also possible the policy will be eroded.

“Think it’s a question of what policies a Trump administration will actually pursue as opposed to what

he has said to-date,” Thomson said. “I do think there’s a possibility of strengthening of Buy America.

That certainly would be consistent with what the president-elect has said.

While grant allotments for sustainability efforts will be decided by Congress, Thomson said she expects

to see an erosion of efforts by DOT to make the transportation system more energy efficient and

environmentally friendly. However, she expects local governments already seeing payoffs from these

types of projects to continue these efforts despite a lack of federal support.

“It’s always nice to have the support of the federal government, but in this case there’s such a

groundswell of momentum that has taken place the last eight to 10 years that you really can’t just

rollback,” Thomson said.

Thomson said there the incoming administration has been silent on changes to the Passenger Facilities

Charge (PFC), but it depends if Congress sees them as a tax or a user fee. While airport interests

characterize the PFC as a user fee, a Republican Congress isn’t likely to increase any form of tax or user

fee, she said.

Air Traffic Could See Changes

Rep. Bill Schuster (R-PA), has signaled plans in the media to revive a bill for air traffic control

privatization in 2017. Chao hasn’t signaled her position on the issue yet to-date, but Thomson

anticipates that she will be supportive of commercialization of the air traffic control system.

Trump Administration

Could Have a Big

Impact on Aviation

CA: FAA Approves First Cranes for New

Rams Stadium

Abu Dhabi Airport Welcomes 1.9 Million

Passengers in November

CA: Smith: Closing in on the Return of the

Purple Heart Found at the Sonoma County

Airport

FlightServ to Open Jan.

1 at Trenton Mercer

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“My sense is this has the best chance it has ever

had to pass Congress and get signed into law,”

Thomson said. “I think it holds tremendous

promise, but again, I think the critical issues there

are going to be how do you spin it off and what is

the source of long-term funding for this new air

traffic control system going to look like.”

Trump has been very anti-trade, Thomson said, and

this could have a major impact on international

agreements for airlines. The federal government

has pursued open skies agreements for the past 20

years, but called by the administration to halt trade

agreements decimate these agreements and

international traffic.

“There seems to be this push to put international aviation in the same bucket with general trade, which

could undermine the open skies policies that have served the country so well to-date,” Thomson said. “I

think you’ll have to keep a close eye on that to see whether a Trump administration is going to push

(this effort).

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12/30/16, 10)23 AMToo many air passengers fly with phony support pets, critics say

Page 1 of 7http://www.aviationpros.com/news/12290368/too-many-air-passengers-fly-with-phony-support-pets-critics-say


Dec. 28--With the holiday travel season now here,

many air passengers are boarding the plane with

service dogs and emotional support animals -- a

practice that critics say is open to fraud.

How do airlines know whether these pets are true

service animals and not impostors wearing an

official-looking vest bought online for $39.99? The

answer is, they don't. Critics say many travelers

claim their pets are service or emotional support

animals because they don't want to pay for them to

travel.

While many of these animals are dogs, passengers have also gotten on board with birds, including a

peacock, cats and other animals.

Related stories:

"I see more violations than legitimate use of service dogs in public. A drastic majority of what I've

observed in airports is misuse of the service dog law," said Brian Skewis, executive officer of the

California State Board of Guide Dogs for the Blind, the only state agency in the nation that regulates

guide-dog schools and individual instructors.

Rod Haneline, chief programs and services officer for Leader Dogs for the Blind in Rochester, says he

too believes fraud is a problem.

"The law is so ambiguous the airlines don't know what side to come down on. Everyone is afraid of the

ramifications of not allowing someone equal access," Haneline said.

He said blind people fought hard to get public access for their dogs, and that right is "diluted" by a

proliferation of questionable service and support pets.

Deb Davis, community outreach manager for Paws with a Cause of Wayland, outside Grand Rapids,

said it's easy to spot the impostor service dogs: those carried in a purse, or those that growl, bark or

act aggressively. In other words, the pretenders often lack good public manners, she said.

"We know there is fraud because our clients see it very frequently when they travel," said Davis, whose

nonprofit annually places about 65 trained dogs with people who have a disability.

But it is such a vexing problem that not even a committee of experts appointed by the U.S. Department

of Transportation earlier this year could agree to a solution. It voted in November to discontinue

discussions because further talks seemed unlikely to reach a consensus.

The ACCESS Advisory Committee members included representatives of the airlines, aircraft

manufacturers, flight attendants and disability rights groups. At one point, some committee members

favored recognizing as service animals only dogs and miniature horses, which are the only animals

covered by the Americans with Disabilities Act.

Like dogs, miniature horses can be trained to do work or perform tasks for people with disabilities,

according to the ADA. They can be used as guides for blind people or to pull wheelchairs. These

animals, which can be house-trained, typically range in height from 24 to 34 inches at the shoulder and

weigh between 70 to 100 pounds. Businesses, nonprofits, government agencies and other entities

covered by the ADA must modify their policies to permit miniature horses where reasonable.

A DOT spokesperson said the department is now considering rewriting the rules for service and

emotional support animals on its own, but a timetable has not been set.



DOT said the rules would "address the concerns

that have been raised with the department

regarding the definition of a service animal"

under federal law, and "instances of passengers

falsely representing that their pets are service

animals in order to avoid pet fees that airlines

may charge for pets to travel in the aircraft

cabin."

DOT said U.S. carriers are required under the Air

Carrier Access Act to transport all service and

emotional support animals with a few exceptions,

such as snakes, ferrets, rodents and spiders.

Airlines must evaluate unusual animals such as

the miniature horses, pigs and monkeys on a case-by-case basis. A single passenger can have two or

more service animals.

Among the service and emotional support animals prohibited by Delta Air Lines, the largest carrier at

Detroit Metro Airport, are hedgehogs and farm poultry such as chickens or turkeys.

"It's the Wild West," Haneline said. "Animals are much more connected to our daily lives, and the last

thing people want to do is put their dog into a pet carrier and put them in the hold of an airplane. This

is kind of an easy way to (avoid that) without paying."

There are no federal standards that cover the registration, licensing or training of service or emotional

support animals and the schools and instructors who train them. There is also no requirement for the

animals to wear service animal vests or tags, which can be purchased easily online for varying prices.

According to DOT guidance to the airlines, harnesses, vests, capes and backpacks may identify an

animal as a service animal. But, "the absence of such equipment does not necessarily mean the animal

is not a service animal. Similarly, the presence of a harness or vest ... may not be sufficient evidence

that the animal is, in fact, a legitimate service animal."

In cases of emotional support animals, the airlines

can ask passengers to produce a letter from the

mental health professional who is treating them

attesting to the fact that they have a mental or

emotional disability and need the animal for air

travel or at their destination. Those letters are also

available for purchase online, in some cases for

less than $100, from web sites claiming to have

mental health professionals on staff.

In the case of service dogs, airlines can ask

passengers questions such as: What tasks or

functions does your animal perform for you? What

has it been trained to do for you? Describe how the

animal performs this task or function for you. They cannot ask travelers about their disability.

In response to questions from the Free Press, Delta issued this statement: "Delta complies with the Air

Carrier Access Act by allowing customers traveling with emotional support animals or service animals

to travel without charge in the cabin. We reserve the right to review each case and make every effort to

accommodate our customers' travel needs while also taking into consideration the health and safety of

other passengers."

Critics say the use of phony support pets hurts travelers with disabilities and their service dogs

Davis said clients traveling with legitimate service dogs have been bumped from their flights because

the airline couldn't accommodate all the animals people wanted to bring on board. "They can miss

connections, miss their flights."

Too Many Air Passengers Fly with Phony

Support Pets, Critics Say

Bishop International Airport Celebrates

Successful 2016

PennDOT Deputy Secretary Toby Fauver

named to U.S. DOT Air Service Work

Group

FL: Emirates Makes Fort Lauderdale Its

11th US Destination

FL: Allegiant Cancels Flights Out of, to

Orlando Sanford Airport

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And Paws-trained dogs confronted by a growling, aggressive dog posing as a service animal may feel so

threatened that they can no longer perform their tasks because "they're looking around each corner,

wondering where did that dog go."

Haneline, of Leader Dogs for the Blind, which trains as many as 200 dogs a year for people who are

blind or visually impaired, said the guide dog industry "fought long and hard to get equal access for our

clients to public accommodations all 50 states. When anyone can walk around with a service dog, you

dilute that."

Skewis said that until the entire disability community can get behind a solution, passengers will

continue to find ways to get their phony service or support pets into airline cabins.

"Everyone agrees there's a problem, but no one has a clear-cut solution," Skewis said.

Contact Jennifer Dixon: 313-223-4410 or [email protected]

Taking your pet on board

For passengers, the cost of a service-animal vest or emotional support letter can be less than paying to

fly with their pets.

Delta, the largest airline operating out of Detroit

Metro Airport, charges $125 to carry nonservice

dogs, cats or birds in the cabin. The only ones

allowed on board must be small enough to fit

under the seat and move around in their carrier.

A pet counts as one piece of carry-on luggage.

The cost of shipping a pet as cargo on Delta starts

at $75 and tops out at $250, depending on the

size of the crate. Delta and American Airlines will

not allow snub or pug-nosed dogs and cats as

cargo, due to their increased risk of developing

health issues. Short-nosed breeds of dogs are

more prone to respiratory problems and don't breathe as efficiently as dogs with normal-length

snouts. Southwest Airlines, another carrier at the airport, does not permit pets as checked baggage.

Copyright 2016 - Detroit Free Press

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