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General Information
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 and Ricondo & Associates, Inc.These timely and informative workshops are being held in the midst of consecutive annual declines in passenger traffic for most U.S. airports, a nationwide economic recession, dramatic changes in the financial system, and extreme pressure on both airport operators and airlines to cut costs and increase revenues. Also of importance are recent changes by the Department of Transportation (DOT) to the Airport Rates and Charges Policy, as well as the continued delay of the Federal Aviation Administration's (FAA) reauthorization bill. The workshops will provide attendees with time-critical information and insight regarding: changes to the PFC program; rates and charges methodologies and policy information from DOT; new federal administration programs as part of the American Reinvestment and Recovery Act (e.g., the Alternative Minimum Tax holiday and Build America Bonds); expectations regarding future passenger activity nationwide; and recent trends in airline agreement negotiations. The workshop will offer networking opportunities with other airport operators/staff; discussions with airline representatives and presentations from credit analysts and bankers. Attendees will be provided with the latest updates directly from DOT and FAA representatives and other policymakers.
This year promises to be a challenging one, as most airports are dealing with cost cutting; increases in airline rates and charges; ongoing maintenance, safety/security, and other needed capital improvements in the midst of uncertain passenger levels; airline financial struggles; uncertainty with the AIP program; and continued challenges related to credit markets. These workshops will arm attendees with the latest information shared by industry and government experts.
We invite you to attend both workshops which are described in more detail below. This year attendees of both PFC and Rates and Charges Workshops are eligible for 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 Washington, D.C.!
Passenger Facility Charge Workshop - April 13, 2010
Most airports now charge a PFC and most do so at the $4.50 level as of December 2009, more than 97% of small-, medium-, and large-hub airport operators charge a PFC and 85% do so at the $4.50 level. PFC collections are one of the single largest capital funding sources for airports nationwide, with more than $70 billion in collections approved by FAA.
Discussion surrounding PFCs has shifted from whether to charge and at what level to impose a PFC to how to best use PFCs to meet an airport's evolving capital needs. With the continued delay of the FAA reauthorization bill, this year's AAAE PFC Workshop will focus on how airports can:
- Incorporate PFCs into their capital programs strategically and maintain flexibility
- Use PFCs to weather the economic downturn and reduced airline service levels
- Utilize best practices in their PFC applications and program management
Veterans and novices alike will find valuable and timely information at this workshop. 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 in the following areas:
- PFC Program Overview: What can PFCs be used for? Who needs to be consulted? When can an airport start collecting a PFC?
- Case Studies: How have other airports used their PFC revenues?
- PFC Application Process: How to coordinate with FAA and airlines? What information is FAA looking for and how should it be organized?
- Federal Updates: Will FAA reauthorization ever happen? What are the potential changes to the PFC program?
- PFC Program Management: 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?
All workshop sessions will be held at the Westin Hotel, Washington, D.C. City Center. The PFC Workshop is a one-day session that will begin at 9:00 a.m. on Tuesday, April 13, (with registration opening at 8:00 a.m.) and end at approximately 5:30 pm. An additional PFC 101 session will be offered at 8:00 a.m. for those new to the PFC program. The networking reception, held in conjunction with the Rates and Charges Workshop and its attendees, will be held from 6-7 p.m. on Tuesday, April 13th.
Registration fees for the PFC Workshop include handouts, networking reception, breakfast, luncheon and breaks. Dress for this workshop is business casual.
Rates and Charges Workshop - April 14 - 15, 2010
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? Is the current downturn in passenger traffic part of a cycle or part of a more long-term shift in demand? The U.S. economic recession, air carrier capacity reductions, lower passenger demand, fluctuating fuel prices, and the tightening of credit markets, among other things, all have 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 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) 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, the ability to keep required reserve funds, and the need to develop financially viable plans for 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 executives, airline representatives, concessionaires, attorneys, consultants, and FAA officials. This workshop is designed to allow for maximum interaction between attendees and industry participants.
Tentative topics for Rates and Charges Workshop panels include:
- Is the current downturn in passenger traffic part of a cycle or a more long-term shift?
- How to prepare for the possibility that passenger traffic may recover slowly?
- What rate-setting methodology makes the most sense for my airport?
- How can my airport take advantage of current federal programs related to financings/bonds?
- How do governing documents (bond resolutions/indentures, airline agreements, rate ordinances, etc.) affect the various types of financial actions my airport might need to make in the midst of reduced passenger traffic?
- What is the current status of the airline industry and what does it mean for airports?
- How will FAA reauthorization legislation affect my airport?
- How will various types of airports (e.g., hubs, secondary hubs, origin-destination airports, smaller airports, international gateways) be affected differently by airline traffic trends?
- How does my airline agreement compare with other airports?
- How does recent rates and charges litigation affect my airport?
- How can airports maximize federal funding and nonairline revenues?
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 and interactive sessions. Veterans and novices alike will find valuable and timely information at this workshop.
All workshop sessions will be held at the Westin Hotel, Washington, D.C. City Center. The Rates and Charges Workshop will begin at 9:00 a.m. on Wednesday, April 14, (with registration opening at 8 a.m.) and will end at approximately Noon on Thursday, April 15th. The networking reception, held in conjunction with the Passenger Facility Charges (PFC) Workshop and its attendees, will be held from 6-7 p.m. on Tuesday, April 13th.
Registration fees for the Rates and Charges Workshop include handouts, networking reception, two breakfasts, one luncheon and breaks. Dress for this workshop is business casual.