US airports have US$100 billion infrastructure need, says ACI-NA report

“America’s airports have real and significant unmet needs that threaten their ability to serve their passengers, grow their local economies, and create good paying jobs.

“The longer we delay, the more America’s airports will fall behind and our infrastructure needs will become even more expensive to fix.”

NORTH AMERICA. The above call to action was issued by Airports Council International-North America (ACI-NA) President and CEO Kevin Burke, last week, as the trade association released an in-depth study into the infrastructure needs of US airports.

The report said US airports have US$99.9 billion in infrastructure needs over the next four years to accommodate growth in traffic, the rehabilitation of existing facilities and support of aircraft innovation.

ACI-NA’s ‘Airport Infrastructure Needs: 2017-2021 indicated that infrastructure needs costs were up by +32% on the council’s previous estimate which was detailed in a 2015 report.

Specifically, it said, the infrastructure needs at large, medium, and small hub airports that enplane 99.8% of US passenger traffic have grown by nearly +42% in two years.

Some 63% of the increase in the required development work was attributed to passenger and cargo growth, with 30% due to the need to continually maintain a good state of repair for aging airport facilities.

Work to be done

ACI-NA said that large hub airports, which handle 72.6% of all enplanements, account for $60.4 billion of total airport infrastructure needs, while medium hubs (15.4% of enplanements) and small hubs (8.4%) account for $11.7 billion and $8.5 billion respectively.

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There were 100 airports that took part in the study, and they answered multiple questions from the council on the long-term needs of airports across the US.

Los Angeles International Airport (LAX), the second busiest gateway in the US,  was included in the survey. LAX is currently in the midst of a $14 billion modernisation programme and work includes major terminal renovations and a new Midfield Satellite Concourse, all of which was taken into account during the study.

Commenting on the research and its potential impact, Los Angeles World Airports CEO Deborah Flint said: “Airports of all sizes combined, have an investment need of $20 billion annually for improvements to modernise aging airfields and terminals, and relieve congestion and delays – all of which will significantly improve the passenger experience.”

ACI-NA noted that terminal projects now represent 54.1% of overall US airport infrastructure needs between now and 2021; landside projects represent 24.7% and airside work represents 21.1%.

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Call to remove the Federal cap on Passenger Facility Charge

The airports council said the US government can help the industry reach its average annual infrastructure funding needs without any new federal investment, but it would require a change of policy.

ACI-NA called for the removal of what it described as an “outdated federal cap on the local user fee known as the Passenger Facility Charge (PFC)”.  Eliminating this would restore the PFC’s lost purchasing power, the trade body said, and provide airports with the ability to set their own levels based on locally-determined needs.

Burke commented: “Local user fees are the most affordable and most responsible method for modernising our airport infrastructure.

“By giving airports the ability to meet their local infrastructure needs without relying on additional federal funding, airports will be well positioned to maintain their leadership in the global aviation system. Time is of the essence. We must act now to get Washington out of the way and eliminate the outdated federal restrictions that hold America’s airports back.”

Click here to read the full ACI-NA report on infrastructure needs, or read the summary in the below infographic

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IATA calls for Japan’s airports to assess infrastructure ahead of Olympic Games 2020

North America was not the only region where the spotlight was placed on airport infrastructure, last week.

The International Air Transport Association (IATA) called on Japan to prepare its international gateways for the 2020 Olympics and beyond.

In a speech delivered to the American Chamber of Commerce in Japan, IATA Director General and CEO Alexandre de Juniac urged Japanese airports to undertake extensive industry consultation in preparation for an expected increase in passenger traffic to the country.

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He called for airports to give attention to various efficiency measures including the continued roll-out of smart security and self-service technology in their terminals.

De Juniac welcomed the introduction of “low cost terminals” for airlines at Kansai and Narita Airports, but called for more economic regulation of airports to ensure a balance of public and commercial interests when charges are set.

The IATA said successful infrastructure planning will play a central role in the continued growth of tourism in Japan.

Japan has set the aggressive target of attracting 40 million international tourists in 2020 (2016: 24 million), and those visitors are expected to spend US$70 billion. The 2030 target is to attract 60 million overseas visitors with estimated tourism receipts of US$130 billion.

“The Olympics are an important milestone and an impetus to get things done. But it must be part of a long-term joined-up planning process focused on the big prize of welcoming 60 million visitors to Japan annually – and keeping Japanese businesses and people efficiently linked to the world,” explained de Junaic.

“To fully realise Japan’s aviation potential, we need joined-up thinking and a clear long-term vision. There is a lot at stake. A healthy aviation industry generates both economic and social benefits that help people live better lives. Aviation is, after all, the business of freedom.”

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