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The American Association of Airport Executives (AAAE) and Jacobs Consultancy, Inc. are pleased to present the Passenger Facility Charges (PFC) Workshop followed by the Rates and Charges Workshop presented by AAAE, Jacobs Consultancy, and Ricondo & Associates, Inc.
These timely and informative workshops are being held in the midst of declining airline traffic at most U.S. airports, a nationwide economic recession, turmoil in the credit markets, and the start of the Obama Administration. Also of importance are recent changes the Department of Transportation (DOT) has made to the Airport Rates and Charges Policy and the continuing delay of the FAA Reauthorization Bill. The workshops will provide attendees with time critical information and insight regarding potential changes to the PFC program under reauthorization; recent changes and potential changes to the rates and charges policy from DOT; potential new Federal administration programs (e.g., a possible infrastructure stimulus package) that may affect airports; updates regarding day-to-day management of PFC programs; recent trends in airline agreement negotiations; and implications from recent 3rd party airport financings. Attendees will have an opportunity to learn from other airports, as well as to hear engaging discussions with airline representatives, insightful presentations from Wall Street credit analysts and bankers, and the latest updates directly from DOT and FAA representatives and other policymakers.
This year promises to be a challenging year as many airports face the need to implement ongoing maintenance, safety/security, and other capital improvements in the midst of decreasing and uncertain passenger levels; airline financial struggles; uncertainty with the AIP program; and uncertainty and volatility in the credit markets. Airports now more than ever need to maximize revenues and utilize the flexibility PFC revenues can provide in a declining activity environment and provide a lower cost environment for their tenants. These workshops will arm attendees with the latest information shared by industry and government experts.
We invite you to attend both workshops described in more detail below. This year attendees of both PFC and Rates and Charges Workshops are privileged to a $50 registration fee discount ($25 off each workshop). To take advantage of this opportunity, please submit both registration forms together and mark the appropriate registration fee category.
We look forward to seeing you in Chicago!
Passenger Facility Charge (PFC) Workshop - April 14, 2009
As of December 2008, all large-hub airports impose a PFC, with 95% of small- and medium-hub airports imposing one as well. This one-day workshop will provide an update on potential changes to the PFC program, brainstorm how PFC revenues could be used in connection with airport capital programs, and provide real-world examples of how a myriad of airport operators have used PFC’s to meet their goals and objectives. PFCs continue to be one of the most important sources of project funding for airport operators and provide significant flexibility in ensuring airport financial stability.
The workshop will draw upon the expertise of FAA, airport operators, rating agency analysts, airline representatives, and others in the industry and will cover many issues, including:
- PFC Basics: What can PFCs be used for? How do you apply? Who needs to be consulted? When can an airport start collecting a PFC?
- On-going PFC Monitoring Requirements: How are airport operators managing their PFC programs? How do you use the new SOAR system? What do the auditors look for? How to close out an application?
- PFC-Backed Debt: What types of debt can PFCs be used for? How do you determine bond financing and interest costs? How do rating agencies and the finance community view PFC-supported debt and financing?
- FAA Reauthorization: What role will PFCs have in the upcoming FAA reauthorization legislation? Will the cap be raised?
- Airline Feedback: What do airlines think about PFCs? Would raising the cap help or hurt airline finances?
- PFC’s in the Real-World: How do other large-, medium-, and small-hub airports use their PFC revenues?
Airport professionals should not miss this special opportunity to learn how others are making the most of their PFC revenues. All sessions will be held at the Hotel Allegro. The PFC Workshop will begin at 9 a.m. and will end at approximately 5 p.m. on Tuesday, April 14. The full day of sessions will be followed by a networking reception, held in conjunction with the Rates and Charges Workshop, from 6-7 p.m. on Tuesday, April 14th.
Registration fees include all handouts, coffee breaks, one continental breakfast, one luncheon and the networking reception. Dress for this workshop is business casual.
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Rates and Charges Workshop - April 15 - 16, 2009
How can airport decision-makers take on financial challenges in new and more sophisticated ways and use rate-setting strategies as a tool in today’s turbulent economic environment? The U.S. economic recession, air carrier capacity reductions, fluctuating fuel prices, and the dramatic tightening of global credit markets, among other things, have all added complexity to airline rate-setting and negotiations. Squeezing more profit out of non-airline revenues is increasingly difficult as terminal concessionaires and rental car companies fight declines in passenger traffic, and strive to enhance their bottom line, and off-airport parking providers become more competitive.
All of these are key issues facing airport managers and aviation professionals. To help you make more informed decisions in this evolving context, the American Association of Airport Executives (AAAE), Jacobs Consultancy, and Ricondo & Associates, Inc. are pleased to offer our popular workshop on airport rate-setting and revenue development.
Airport managers must develop strategies for meeting these new challenges in ways that preserve the financial health of their airports. Among the factors that airport managers must consider are the impact on airline costs, the ability to make payments on airport debt and the need to develop financially viable and flexible plans for implementing capital improvements - all in the context of the evolving airline industry, federal laws and regulations and case law.
The program will include presentations from airport and airline representatives, bond rating agencies and underwriters, concessionaires, lawyers, consultants, and FAA officials. This workshop is designed to allow for maximum interaction between attendees and industry participants.
Tentative topics include:
- How can airports prepare for potential or additional airline service cuts?
- What is the current status of the airline industry and what does it mean for airports?
- How will the upcoming FAA reauthorization legislation affect my airport?
- What do low-fare airlines want from airports?
- How does my airline agreement compare with other airports?
- What are the prospects for airport privatization in the U.S., in light of the Chicago-Midway transaction?
- What are the implications/useful aspects of recent 3rd party airport financings?
- How does recent ratemaking litigation affect my airport?
- How can airports maximize federal funding and nonairline revenues?
- What rate-setting methodology makes the most sense for my airport?
This workshop will cover legal and regulatory structures, as well as practical implications of rates and charges policies. The status of airport financings and preparations for airline negotiations also will be explored. For those new to the industry or desiring a refresher course, fundamentals of rates and charges will be reviewed with actual case studies as illustrations. Veterans and novices alike will find valuable and timely information in the program.
All sessions will be held at the Hotel Allegro. The workshop will begin at 9:00 a.m. (with registration and the optional Airline Rate-Making 101 session starting at 8 a.m.) on Wednesday, April 15th, and will end at approximately noon on Thursday, April 16th. The networking reception, held in conjunction with the Passenger Facility Charge (PFC) Workshop, will be held from 6-7 p.m. on Tuesday, April 14th.
Registration fees include all handouts, networking reception, two continental breakfasts, one luncheon and coffee breaks. Dress for this workshop is business casual.
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