____________________________________________________________

AGENDA

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

Wednesday, March 18, 2015 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 January 15, 2015 Regular Meeting Minutes (document).

III. PRESENTATIONS:

A. Fixed Base Operator (FBO) Presentation. IV. PRESIDENT/CEO REPORT:

A. Aviation Industry Update. B. Washington Legislative Conference Update. C. South Carolina DOT Meeting Update. D. CEO Meetings Update (BMW).

V. INFORMATION SECTION: (Staff presentations will not be made on these items. Staff will be available to address any

questions the Commission may have.)

A. January 2015 - Traffic Reports (documents). B. January 2015 - Monthly Financial Report (document). C. March 2015 - Development/Project Status Report (document). D. March 2015 – Communications Status Report (document).

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

www.gspairport.com

GREENVILLE-SPARTANBURG AIRPORT COMMISSION AGENDA Wednesday, March 18, 2015 Page 2

E. March 2015 – Properties and Development Report (document). F. March 2015 - OSHA Reportable Injury Report (document). G. Industry Presentation(s)/Article(s) of Interest (document). H. Potential Items for the Next Regular Scheduled Commission Meeting:

• 2015-2016 Budget Presentation • Social Media Presentation • Proposed Policy and Procedure Updates • Proposed Rules and Regulations Updates

VI. COMMISSION MEMBER REPORTS: VII. EXECUTIVE SESSION:

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

VIII. 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

JANUARY 15, 2015

The Greenville-Spartanburg Airport Commission met on January 15, 2015 at 9:00 a.m. in the Greenville-Spartanburg Airport District Office Conference Room C located at 2000 GSP Drive, Suite 1, Greer, SC 29651.

MEMBERS PRESENT: Minor Shaw, Leland Burch, Valerie Miller, Doug Smith, and Bill Barnet. Hank Ramella was present via conference call.

STAFF AND LEGAL COUNSEL PRESENT: Dave Edwards-President/CEO, Kevin Howell-Vice President/COO, Jack Murrin-Vice President Administration and Finance/CFO, Rosylin Weston-Vice President Communications, Scott Carr-Director of Properties and Development, Betty O. Temple-WCSR, and Wanda Jones-Executive Assistant.

GUESTS PRESENT: Doug Banez-InterVistas, David Dague-InterVistas, Robert Sullivan-InterVistas, Edward Shelswell-White-LexVolo, Peter Muller-PRT Consulting, and Dean Hatfield-Louis Berger.

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 November 24, 2014 Commission Meeting.

PRESENTATIONS:

A. Preliminary Personal Rapid Transit Feasibility Study.

Mr. Peter Muller from PRT Consulting presented the findings of the Preliminary Personal Rapid Transit Feasibility Study. Some of the problems that initiated the study were the lack of an Economy Lot Shuttle Service, the growing parking demand, and the fact that shuttle buses will not work well. Mr. Muller discussed that PRT is a small, driverless vehicle that operates on an exclusive guide way. The system is elevated and provides short wait times with non-stop travel. Mr. Burch asked how the system gets around traffic. Mr. Muller stated the system goes around the edge of the parking lot and is elevated so the automobiles would go underneath the system causing no issue. The stations are also elevated at the terminal so you would have stairs or an elevator. Chair Shaw asked if an off-site garage possibly was researched. Mr. Muller said no, but that it could be. Chair Shaw asked when researching the bus option if Proterra was

considered. Mr. Edwards stated that the Proterra platform does not work for the airport because of the size of the bus.

The 30-year life-cycle cost is $181 million. The PRT scenario breaks even at $6.40 daily rate. Mr. Muller stated that some supplemental revenue options include: advertising, passenger facility charges (which could generate $4 m/year), sponsorships, loans, grants, and future parking rate increases. The initial PRT implementation would consist of the following: .88 track miles with 5 stations, capital cost of $20.9 million, annual O&M cost $1.81 million, annual parking revenue $3.05 million, breaks even at $6.00 parking, 4% interest, advertising, grants, and PFC can be considered. Mr. Smith asked if the financial numbers are just for the economy lot. Mr. Muller stated yes, we are only picking up the economy lot revenue stream. Mr. Barnet asked what the life expectancy of the system is. Mr. Muller stated it is hard to say but probably about ten (10) to twelve (12) years. Mr. Smith asked if private investments were an option. Mr. Edwards stated yes; however, a private investor would want to charge more but it is worth exploring. Part of the next step is to meet with local companies to see if we can get them on-board.

In summary, Mr. Muller stated that a shuttle is needed to maintain a high level of service. PRT is preferred to bus because of the following reasons: higher level of service, similar life-cycle cost, obviates need for parking structure, higher revenue potential, no disruption of surface traffic, no on-site emissions, economic development opportunities, and the initial implementation breaks even at a $6 daily rate. Mr. Smith asked if there are any carbon or green credits. Mr. Muller stated yes. Mr. Smith stated he considers the carbon credits to be significant and would like for this to be researched. Mr. Burch asked for the build time. Mr. Muller stated once permits are obtained the build time would be approximately two (2) years.

Chair Shaw stated she would like to see this wrapped up into GSP’s overall master plan. The Commission all agreed to proceed to the next level of planning and design for a PRT system to be implemented at GSP.

B. Air Service Development 5-Year Strategic Plan Update. Mr. Edwards stated one of the components of the five-year Strategic Business Plan is Air Service Development. Mr. Edward Shelswell-White from LexVolo is leading the Marketing/Community Outreach portion with InterVistas leading the data research, market assessment and the leakage study. Mr. Edwards introduced the team. Mr. Edward Shelswell-White from LexVolo presented the Air Service Development 5-year Strategic Plan Update. Mr. Shelswell-White stated the objective is to identify a five-year strategy and annual tactical plans to increase passenger and

airline demand for GSP air service. Since July, GSP has completed a leakage study, market assessment, and passenger research. Mr. Shelswell-White stated that GSP is well served for the size of the market especially considering the proximity to Charlotte and Atlanta. The research objectives included passenger attitudes, perception, and preference towards GSP. Some of the key findings included: passengers love GSP and want to use it more. There are some barriers that cause people to choose alternate airports but there are areas in which GSP can act on things that can be controlled to improve airline results leading to a better view of GSP. The main barriers to increased use of GSP versus Atlanta and Charlotte include: fewer nonstop flights/destinations, fears of no control if/when the connecting flights cancel, and the perception that GSP is more expensive. Mr. Shelswell-White stated that LexVolo hired a company from Los Angeles, BrandIQ, to talk to customers at GSP to find out their existing attitudes and perceptions for GSP versus alternate airports. This will help GSP to understand what can be controlled and what the passengers care about and it also gives us something to measure. The key findings to date include: GSP can increase demand among passengers by: messaging the actual fare competitiveness with Charlotte and Atlanta, capitalizing on its ease-of-use, and adding features that target passenger’s values that Charlotte and Atlanta cannot easily offer. Mr. Shelswell-White stated that efforts need to be focused where we have more influence – example: More passenger demand for GSP can lead to more GSP flights. Mr. Shelswell-White discussed the recommended marketing strategies – increase passenger demand for GSP, elevate airlines’ expectations of GSP, and improve local Stakeholder satisfaction with GSP. An example is zip code targeting – focus on underperforming zip codes with high index of target households. Ms. Miller asked if there is a way to tell what percentages of passengers are using corporate travel. Ms. Miller stated corporate travel is very important since the employees cannot control it. Mr. Shelswell-White stated every market would be unique. Mr. Edwards stated he continues to have CEO meetings with companies in the Upstate and that most of the companies are leaving travel decisions up to the traveler. Mr. Smith stated that in the zip code slide there were no North Carolina zip codes. Mr. Shelswell-White stated the zip codes were from the catchment study. Ms. Miller asked why Anderson is 51.5% and Clemson is 60.2%. Mr. Edwards stated the airport has a very strong relationship with Clemson and that we message well to the students at Clemson and not so much to Anderson. Ms. Miller also asked if during the research that parking has been an issue. Mr. Shelswell-White stated from what he remembered most people stated how easy it is to park at GSP versus how hard it is to park at Charlotte. Ms. Miller stated the airport should be mentioning parking when advertising along with lower fares.

Mr. Shelswell-White discussed the marketing strategies, objectives, and goals.

C. Air Service Market Assessment and Leakage Study.

Mr. Richard Sullivan from InterVistas discussed the Market Assessment Study and the Leakage Study. Mr. Sullivan stated from an airline standpoint that the airlines are stable and financially strong. Delta is taking the lead and retiring most of the Regional Jets. Fuel is going in the right direction.

The Market Assessment shows a very well served market at GSP with 18 non-stop destinations, 3 major network carriers (United, Delta, and American), Southwest and Allegiant. The service at GSP is more robust than the average small hub airport. GSP traffic has been up since 2009 and, on average, fare and traffic growth has been out-performing the national average. The demand levels at GSP are high and the revenue levels are very good.

Mr. David Dague from InterVistas discussed the Leakage Study. The first step is to determine the catchment area. The GSP catchment area has a population of 1.4 million which is then drilled down to the zip code of the passenger. The 1.4 million population generated 2.9 million passengers. GSP Airport captures approximately 60% of the catchment area with 1.2 million using alternate airport. Of that 1.2 million, 27% are using Charlotte and 12% are using Atlanta.

New York and Denver is the largest leaked market via Charlotte and Atlanta. New York-LGA departing from Charlotte has 19 flights day, at GSP there are 2. The business traveler is looking for access that certainly may drive them to Charlotte. Markets are served multiple times by multiply airlines a day.

Leakage studies have been done in the past and the positive thing is the capture rate has increased which means there is more awareness of this market which includes: Southwest entry, the average fare increases significantly higher at Atlanta and Charlotte as compared to GSP, reduced non-stop service by Southwest/Air Tran from Atlanta, and high load factors at alternative airports.

GSP is located between the 1st (Atlanta) and the 8th (Charlotte) ranked U.S. Airports in terms of seat capacity. Not many airports in the U.S. have that unique situation and with GSP capturing 60% of the market it is admirable and compares favorably to similar airport across the county.

There are many challenges facing U.S. small hub markets, including GSP such as: capacity discipline limiting domestic expansion, airline consolidation reducing number of potential airline customers, evolving business models of low cost and ultra-low cost carriers favors the bigger market but is a disadvantage to small and medium hub markets. The competitive landscape in GSP service area remains robust and air service growth at Charlotte continues to offer multiple service options for the local business and leisure travelers.

Mr. Dague stated that GSP has a very good story to tell and opportunities must focus on incumbent air carriers first, growing the customer base of airlines at GSP is a priority. Chair Shaw stated it would be good to say what GSP’s leakage was before Southwest and what it is now. Mr. Edwards stated before Southwest it was 66% and now it is 40%. Mr. Barnet stated the things that he hears about are TSA lines and baggage issues and we need to identify the things that can be controlled that do not necessarily fall into this Strategic Business Plan. We have great pride in our airport and have to be sure we are tending to the needs of the users. The best speakers are those who use the airport.

Mr. Ramella asked if we were going into Executive Session and if he needed to remain on the line. Chair Shaw stated no to both questions.

D. Update on the Airport Environs Area Activity for 2014.

Mr. Carr presented the update on the Airport Environs Area. He gave a brief background that the Airport Environs Area was enacted in 1996, the Airport Environs Planning Commission was created and there are nine (9) voting members appointed by various political subdivisions. The purpose of the Airport Environs Area Zoning Ordinance is to assure that land uses surrounding the airport are compatible with airport operations. The Airport Environs Area has a Board of Zoning Appeals which consists of five (5) voting members appointed by Airport Environs Planning Commission.

Mr. Carr showed the zoning boundaries on a map and discussed the application process. In 2014, the following applications were submitted:

• 50 approved - 41% new construction vs 59% existing building change of use - 39% Spartanburg County vs 61% Greenville County

• 4 Denied - 2 residential and 2 churches

• 4 new cell phone tower applications submitted - All approved / 1 Greenville County and 3 Spartanburg County

Mr. Carr stated every year approximately 800 letters are sent out to remind property owners that they are in the Airport Environs Area. Upcoming will be an online submittal of Development Applications, Automated Notifications of Application Receipt, and communication with applicants via email vs. US Mail for a more timely correspondence and faster processing of applications. Mr. Smith asked if the Environs Ordinance was included in real property deeds. Mr. Smith stated in order to cut down on confusion and due diligence, it should be. Mr. Edwards stated that was a great idea.

NEW BUSINESS:

A. Approval of Project Funding for Apron Rehabilitation Project – Phase 2.

Mr. Howell stated that in 2012, the GSP Airport District completed the Airfield Pavement Evaluation and Analysis Project. Staff has been notified by the Federal Aviation Administration that the District is scheduled to receive $4,500,000 in FY2016 for 90% of the construction costs for Phase 2.

Mr. Howell respectfully requested that the Airport Commission resolve to approve project funding not to exceed $175,000 for design related expenses for the Apron Rehabilitation Project – Phase 2. A motion was made, seconded, and unanimous vote received to approve the $175,000 for design related to expenses for the Apron Rehabilitation Project – Phase 2.

PRESIDENT/CEO REPORT:

Mr. Edwards stated that things are going well with the Art Task Force with Request for Proposals going out this week. The Art Task Force will meet on March 19th and 20th to go over the applications. Over a hundred (100) are expected. If there is someone that you would like to receive the request, please get that name to Ms. Weston.

Mr. Howell is finalizing the Landscape Master Plan. Chair Shaw, Mr. Smith, and Mr. Burch will be on the Landscape Master Plan Task Force. A kick-off meeting will be held at the end of January or the first of February. This will be approximately a six (6) month project.

Mr. Edwards stated that the Airport District has accomplished sixteen (16) years with no negative findings for the FAA Part 139 Certification Inspection. The Commission applauded the staff for this major accomplishment.

Mr. Edwards passed out the five (5) year Strategic Business Plan to the Commissioners and stated staff will be using this for various speaking engagements and putting them in packages from an airline and development standpoint. The Strategic Business Plan is on the website.

ADJOURNMENT:

There being no further business, a motion was made, seconded, and approved to adjourn at 11:40 a.m.

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: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Presentation Item A FBO Analysis Presentation BACKGROUND A presentation was provided to the Commission at the November 24, 2014 meeting. That presentation reviewed the current Stevens FBO agreement and four options for future FBO services at GSP after the current Stevens agreement expires in 2016. The Commission directed Staff to conduct further investigation on two preferred options; FBO management agreement operations and airport self-run FBO operations. Since November, Staff has had discussions with several airports utilizing these types of FBO operations and conducted four site visits to meet with airport staff and observe the FBO operations of specific interest to the District. A presentation of Staff findings will provided to the Commission at the March 18, 2015 meeting.

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 Airport Commission FROM: David Edwards, President/CEO DATE: March 18, 2015

PRESIDENT/CEO’S REPORT: A. Aviation Industry Update. B. Washington Legislative Conference Update. C. South Carolina DOT Meeting Update. D. CEO Meetings Update (BMW).

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: David Edwards, President/CEO DATE: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item A January 2015 - Traffic Report SUMMARY Well, passenger traffic is off to a good start in 2015. For January 2015 passenger traffic was up 2.1% over the same month in 2014. Cargo traffic was down 15.1% for January 2015 over January 2014. Providing a look forward into the service levels, attached is a schedule comparison for the month vs the same month last year including flights and seats by airline and non-stop market served. While there were minor adjustments to seat capacity, the largest impact on flights and seats continues to be Southwest’s reduction of service to Nashville and the elimination of Cleveland service by United. As such flight capacity is down 2.0% and seats are down at 0.1%.

[This Area Intentionally Left Blank]

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

www.gspaiport.com

Greenville-Spartanburg Airport Commission Information Section Item A January 2014 Traffic Report Page 2

A comparison of the North America National Passenger Traffic Growth Averages for January 2015 to GSP’s Passenger Traffic Growth is depicted below: Attached are copies of the detailed traffic report for January 2015.

Jan 2015 Jan 2014Percentage

Change *CYTD-2015 *CYTD-2014Percentage

ChangeCategory *MOV12-2015 *MOV12-2014Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportJanuary 2015

Passenger Traffic

EnplanedDeplaned

67,17966,782

65,78565,462

67,179 65,78566,782 65,462

2.1%2.0%

Total 133,961 131,247 2.1% 133,961 131,247

2.1%2.0%

2.1%

956,959943,019

939,567931,755

1,899,978 1,871,322 1.5%

1.9%1.2%

Cargo Traffic (Pounds)

Express and Mail

Freight

Total

3,6374,188

2,444,5882,082,269

2,1642,929

2,975,0972,362,551

EnplanedDeplaned

EnplanedDeplaned

Subtotal

Subtotal

68.1%43.0%

-17.8%-11.9%

4,526,857 5,337,648 -15.2%

7,825 5,093 53.6%

4,534,682 5,342,741 -15.1%

3,6374,188

2,444,5882,082,269

2,1642,929

2,975,0972,362,551

1,449,2491,004,807

31,969,62126,116,611

44,86942,160

33,480,52125,508,446

3130.0%2283.3%

-4.5%2.4%

-1.5%

2719.8%

2.5%

68.1%43.0%

-17.8%-11.9%-15.2%

53.6%

-15.1%

4,526,857 5,337,648

7,825 5,093

4,534,682 5,342,741

58,086,232 58,988,967

2,454,056 87,029

60,540,288 59,076,079

Wednesday, March 11, 2015

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

Page 1 of 2

Jan 2015 Jan 2014Percentage

Change *CYTD-2015 *CYTD-2014Percentage

ChangeCategory *MOV12-2015 *MOV12-2014Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportJanuary 2015

Aircraft Operations

AirlinesCommuter/Air Taxi

Subtotal

GeneralAviation

Military

Subtotal

984 899

664

1,569 1,802

650

89 48

2,553

Total

2,701

753 698

3,306 3,399

9.5%

-12.9%

-5.5%

2.2%

85.4%

7.9%

-2.7%

984

1,569

89

899

1,802

48

11,822

24,789

1,098

11,706

22,706

962

9.5%

-12.9%

-5.5%

2.2%

85.4%

7.9%

-2.7%

-1.0%

-8.4%

-6.0%

-3.2%

-12.4%

-4.2%

-5.6%

2,553 2,701 34,412 36,611

664 650 8,994 9,293

753 698

3,306 3,399

9,956 10,391

44,368 47,002

Fuel Gallons

100LLJet A (GA)

Subtotal

Jet A (A/L)

Total

60,5892,886

765,693

45,6682,800

707,701

60,5892,886

765,693

45,6682,800

707,701

713,74043,833

9,897,915

792,57832,719

9,994,267

63,475 48,468 31.0% 31.0% -8.2%63,475 48,468 757,573 825,297

829,168 756,169 9.7% 9.7% -1.5%829,168 756,169 10,655,488 10,819,564

3.1%32.7%

3.1%32.7%

34.0%-9.9%

8.2% 8.2% -1.0%

Wednesday, March 11, 2015

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

Page 2 of 2

Scheduled Airline Enplanements, Seats, and Load FactorsGreenville-Spartanburg International AirportJanuary 2015

Jan 2015 Jan 2014Percentage

Change *CYTD-2015 *CYTD-2014Percentage

Change

7,5805,0686,461

Allegiant AirEnplanementsSeatsLoad Factor

14.8%17.3%

76.8% 78.4% -2.1%

5,8197,580

5,0686,461

76.8% 78.4%

14.8%17.3%-2.1%

5,819

4,8543,9344,250

American AirlinesEnplanementsSeatsLoad Factor

2.1%14.2%

82.8% 92.6% -10.6%

4,0184,854

3,9344,250

82.8% 92.6%

2.1%14.2%

-10.6%

4,018

31,12522,31628,336

Delta Air LinesEnplanementsSeatsLoad Factor

11.0%9.8%

79.6% 78.8% 1.1%

24,77131,125

22,31628,336

79.6% 78.8%

11.0%9.8%1.1%

24,771

16,59710,36818,941

Southwest AirlinesEnplanementsSeatsLoad Factor

-12.8%-12.4%

54.5% 54.7% -0.5%

9,04116,597

10,36818,941

54.5% 54.7%

-12.8%-12.4%-0.5%

9,041

Wednesday, March 11, 2015 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Jan 2015 Jan 2014Percentage

Change *CYTD-2015 *CYTD-2014Percentage

Change

12,8008,630

12,050

United AirlinesEnplanementsSeatsLoad Factor

-2.3%6.2%

65.9% 71.6% -8.0%

8,43312,800

8,63012,050

65.9% 71.6%

-2.3%6.2%

-8.0%

8,433

18,55615,44118,630

US AirwaysEnplanementsSeatsLoad Factor

-3.3%-0.4%

80.4% 82.9% -2.9%

14,92618,556

15,44118,630

80.4% 82.9%

-3.3%-0.4%-2.9%

14,926

67,00891,512

65,75788,668

EnplanementsSeatsLoad Factor

1.9%3.2%

73.2% 74.2% -1.3%

Totals67,00891,512

65,75788,668

1.9%3.2%

73.2% 74.2% -1.3%

Wednesday, March 11, 2015 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Monthly Enplanements By YearGreenville-Spartanburg International Airport

Enp

lane

men

ts

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

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2013 ‐ 63985 ‐ 62384 ‐ 77089 ‐ 76724 ‐ 85182 ‐ 85239 ‐ 84124 ‐ 80271 ‐ 78992 ‐ 86117 ‐ 76827 ‐ 80833

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

2015 ‐ 67179 ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)

Wednesday, March 11, 2015

Monthly Seats By YearGreenville-Spartanburg International Airport

Sea

ts

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

20000

40000

60000

80000

100000

120000

2013 ‐ 97356 ‐ 91291 ‐ 101741 ‐ 101609 ‐ 109279 ‐ 105334 ‐ 108837 ‐ 106408 ‐ 105415 ‐ 108888 ‐ 97388 ‐ 96755

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

2015 ‐ 91860 ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)

Wednesday, March 11, 2015

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

2013 ‐ 65.72% ‐ 68.34% ‐ 75.77% ‐ 75.51% ‐ 77.95% ‐ 80.92% ‐ 77.29% ‐ 75.44% ‐ 74.93% ‐ 79.09% ‐ 78.89% ‐ 83.54%

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% ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)

Wednesday, March 11, 2015

Total Monthly Passengers By YearGreenville-Spartanburg International Airport

Tota

l Pas

seng

ers

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

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2013 ‐ 126751 ‐ 124741 ‐ 153094 ‐ 153880 ‐ 168776 ‐ 167852 ‐ 166886 ‐ 162617 ‐ 155888 ‐ 174231 ‐ 153645 ‐ 158463

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

2015 ‐ 133961 ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)

Wednesday, March 11, 2015

Scheduled Airline Market Shares (Enplanements)Greenville-Spartanburg International AirportReport Period From January 2015 Through January 2015

9%6%

37%

13%

13%

22%Allegiant Air

American Airlines

Delta Air Lines

Southwest Airlines

United Airlines

US Airways

Wednesday, March 11, 2015

Airline Flight CompletionsGreenville-Spartanburg International AirportJanuary 2015

AirlineScheduled

Flights

Cancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

Aero Dynamics 1 0 0 0 0 100.0%0

Air Tribe 1 0 0 0 0 100.0%0

Allegiant Air 40 0 0 0 0 100.0%0

Alliance Air Charter 1 0 0 0 0 100.0%0

American Airlines 92 0 4 1 1 93.5%6

Ameristar Jet Charter 5 0 0 0 0 100.0%0

Berry Aviation 2 0 0 0 0 100.0%0

Wednesday, March 11, 2015

AirlineScheduled

Flights

Cancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

Delta Air Lines 360 0 0 0 0 100.0%0

Federal Express 42 0 0 0 0 100.0%0

IFL Group 10 0 0 0 0 100.0%0

National Airlines 1 0 0 0 0 100.0%0

Personas Y Pasquetes 1 0 0 0 0 100.0%0

Republic Airlines 4 0 0 0 0 100.0%0

Royal Air Freight 2 0 0 0 0 100.0%0

Southwest Airlines 117 0 0 0 0 100.0%0

United Airlines 221 0 0 0 2 99.1%2

Wednesday, March 11, 2015

AirlineScheduled

Flights

Cancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

UPS 34 0 0 0 0 100.0%0

US Airways 370 0 2 8 0 97.3%10

USA Jet 1 0 0 0 0 100.0%0

Xtra Airways 1 0 0 0 0 100.0%0

Total 0 6 9 31,306 18 98.6%

Wednesday, March 11, 2015

Schedule Weekly Summary Report for nonstop Passenger (All) flights from GSP for travel April 2015 vs. April 2014

All flights, seats, and ASMs given are per week.

Mktg Al Orig Dest Miles Ops/Week Seats Ops/Week Seats Ops/Week Seats Ops/Week SeatsAA GSP DFW 862 21 1,456 20 1,000 1 456 5.0% 45.6%DL GSP ATL 153 54 5,669 53 5,502 1 167 1.9% 3.0%DL GSP DTW 508 25 1,276 25 1,250 0 26 0.0% 2.1%DL GSP LGA 610 9 450 11 550 (2) (100) (18.2%) (18.2%)G4 GSP FLL 620 2 354 2 332 0 22 0.0% 6.6%G4 GSP PGD 550 0 0 2 332 (2) (332) (100.0%) (100.0%)G4 GSP PIE 482 2 354 4 664 (2) (310) (50.0%) (46.7%)G4 GSP SFB 426 3 509 2 354 1 155 50.0% 43.8%UA GSP CLE 450 0 0 5 250 (5) (250) (100.0%) (100.0%)UA GSP EWR 594 13 650 15 750 (2) (100) (13.3%) (13.3%)UA GSP IAD 383 20 1,400 21 1,050 (1) 350 (4.8%) 33.3%UA GSP IAH 838 12 600 9 437 3 163 33.3% 37.3%UA GSP ORD 577 20 1,000 20 1,000 0 0 0.0% 0.0%US GSP CLT 76 55 3,062 54 2,774 1 288 1.9% 10.4%US GSP DCA 396 13 650 13 650 0 0 0.0% 0.0%US GSP PHL 514 25 1,250 18 900 7 350 38.9% 38.9%WN GSP BNA 266 0 0 6 858 (6) (858) (100.0%) (100.0%)WN GSP BWI 425 7 959 7 1,001 0 (42) 0.0% (4.2%)WN GSP HOU 845 7 1,001 7 1,001 0 0 0.0% 0.0%WN GSP MDW 562 13 1,859 13 1,859 0 0 0.0% 0.0%

TOTAL 301 22,499 307 22,514 (6) (15) (2.0%) (0.1%)

Travel Period Apr 2015 Apr 2014 Diff Percent Diff

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: Jack G. Murrin, VP of Administration & Finance/CFO DATE: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item B January 2015 - Monthly Financial Report SUMMARY Operating Income was up by 7.14% when compared to the budget for Year-to-Date January 2015. Operating Expenses were down by 2.53% over the budgeted amount for the period. Net operating income was up 19.62% versus the budget through January 2015. For the period ending January 2015 which is 7 months of the fiscal year a total of about $7.59 million has been returned to the bottom line in operating income. Attached is a copy of the detailed financial report for January 2015. Please recognize that this is a preliminary report, unaudited, and only represents seven months of activity resulting in variances from budget which can be quite volatile.

January 31, 2015 FINANCIAL STATEMENT PACKAGE

GREENVILLE SPARTANBURG AIRPORT DISTRICT

STATEMENT OF NET POSITION

Current Month Current MonthCurrent FY Prior FY1/31/2015 1/31/2014

AssetsCash Accounts 14,366,023.58 10,079,119.07

Investments-Airport 31,292,238.37 56,145,285.63 Bond Trustee Assets 186,718.08 179,559.95

Accounts Receivable 291,793.62 235,053.24 Less: Reserve for Doubtful Accts -

Net Accounts Receivable 291,793.62 235,053.24

Inventory 171,494.74 171,561.42 Prepaid Insurance 254,645.13 118,888.83

Notes Receivable-RAC District Funds 2,120,315.66 2,322,062.01

Property, Plant & Equipment (PP&E) 291,066,033.38 256,187,768.21 Less: Accumulated Depreciation (112,413,931.05) (109,919,953.18)

Net PP&E 178,652,102.33 146,267,815.03 TOTAL ASSETS 227,335,331.51 215,519,345.18

LESS: LiabilitiesAccounts Payable 963,689.10 624,595.22 Revenue Bonds Payable 2,589,632.12 2,871,224.02 SCRS Pension Liability 7,118,066.00 - Benefit Liability 802,241.18 768,894.56

TOTAL LIABILITIES 11,473,628.40 4,264,713.80

LESS: Deferred Inflows of ResourcesDeferred Revenues 2,120,315.66 2,322,062.01

TOTAL DEFERRED INFLOWS OF RESOURCES 2,120,315.66 2,322,062.01

NET POSITIONInvested in Capital Assets, net of Related Debt 168,959,036.33 143,412,815.03

Restricted:A/P - Capital Projects - Restricted 172,085.96 163,335.93 Contract Facility Charge 1,463,246.29 2,146,328.44

Total Restricted: 1,635,332.25 2,309,664.37

Unrestricted 43,147,018.87 63,210,089.97 TOTAL NET POSITION 213,741,387.45 208,932,569.37

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

GREENVILLE SPARTANBURG AIRPORT DISTRICT

PROFIT and LOSS STATEMENT

January 31, 2015 January 31, 2015

Actual Budget Actual - Budget % Change

INCOMELanding Area:

Landing Fees 1,384,311.30 1,395,168.18 (10,856.88) -0.78%Aircraft Parking Fees 213,641.02 189,298.97 24,342.05 12.86%FBO Into-Plane & Fuel Flowage 67,703.09 59,409.42 8,293.67 13.96%

Subtotal Landing Area 1,665,655.41 1,643,876.57 21,778.84 1.32%

Space & Ground Rentals 4,744,012.04 4,721,419.36 22,592.68 0.48%Auto Parking 5,335,727.71 4,790,123.31 545,604.40 11.39% (a)Commercial Ground Transportation 91,059.29 98,818.79 (7,759.50) -7.85%

Concessions:Advertising 166,880.00 145,833.31 21,046.69 14.43%Food & Beverage 205,454.28 180,636.19 24,818.09 13.74%Rental Car 1,876,724.47 1,690,183.67 186,540.80 11.04% (b)Retail 261,274.58 211,750.00 49,524.58 23.39% (c)

Subtotal Concessions 2,510,333.33 2,228,403.17 281,930.16 12.65%

Expense Reimbursements 625,749.53 635,061.77 (9,312.24) -1.47%Other Income 602,119.26 418,853.68 183,265.58 43.75% (d)

Total Operating Income 15,574,656.57 14,536,556.65 1,038,099.92 7.14%

EXPENSESSalary & Benefits 4,198,277.69 4,375,604.38 (177,326.69) -4.05% (e)Professional Services 319,310.80 259,908.25 59,402.55 22.86% (f)Promotional Activities 414,573.21 413,172.06 1,401.15 0.34%Administrative 376,454.77 487,541.39 (111,086.62) -22.79% (g)Insurance 232,458.38 232,458.38 - 0.00%Contractual Services 949,269.11 1,095,674.02 (146,404.91) -13.36% (h)Rentals & Leases 16,431.45 32,509.19 (16,077.74) -49.46%Repairs & Maintenance 306,067.28 188,457.71 117,609.57 62.41% (i)Supplies & Equipment 331,886.89 402,191.51 (70,304.62) -17.48% (j)Utilities 839,455.53 703,525.27 135,930.26 19.32% (k)

Total Operating Expenses 7,984,185.11 8,191,042.16 (206,857.05) -2.53%

NET OPERATING INCOME 7,590,471.46 6,345,514.49 1,244,956.97 19.62%

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

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

January 31, 2015

(a) Auto Parking OVER BUDGET $545,604.40 - Conservative budgeting

(b) Rental Car OVER BUDGET $186,540.80 - Conservative budgeting

(c) Retail OVER BUDGET $49,524.58 - Conservative budgeting

(d) Other Income OVER BUDGET $183,265.58 - Ground handling (charter & non-tenant) 89K over budget YTD - AvSrvc warehousing income 15.7K under budget - Lease Income (Runion) 94K over budget - Charter equipment rental 20K over budget YTD

(e) Salary & Benefits UNDER BUDGET $177,326.69 - Timing: One entire payroll accrued back to prior FY - Retirement expense under budget-One month accrued back to prior FY

(f) Professional Services OVER BUDGET $59,402.55 - Consulting 99.5K over budget YTD-timing - Legal 21K under budget YTD-timing

(g) Administrative UNDER BUDGET $111,086.62 - Travel/Training 100K under budget-timing YTD - Dues & Subscriptions 18K under budget YTD - Corporate Function 8K over budget YTD

(h) Contractual Services UNDER BUDGET $146,404.91 - Parking Mgmt Agreement Expenses 80K under budget-One month accrued back to prior FY - Janitorial Services 58K under budget YTD - Computer-annual contracts 32K under budget YTD - Nursery & Landscaping 18K under budget YTD - Elevator & Escalator 29K over budget YTD

(i) Repairs & Maintenance OVER BUDGET $117,609.57 - Boarding bridges 14K over budget YTD - Building 21K over budget YTD (primarily the lobby fountain project) - Equipment R&M 8K under budget YTD - Runways/Taxiways/Ramps 16K under budget YTD - Security System 14K under budget YTD - Vehicles 9K under budget YTD - Projects-Unanticipated 109K over budget-Economy Parking Lot repairs

YTD ACTUAL VS YTD BUDGET FOOTNOTES

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

January 31, 2015 YTD ACTUAL VS YTD BUDGET FOOTNOTES

(j) Supplies & Equipment UNDER BUDGET $70,304.62 - Computer-Equip/Supplies 42K over budget (AirIt paper stock) - Computer-Software 12K under budget - Building 5K under budget - Heating & Air 5K under budget - Nursery & Landscaping 24K under budget - Fuel for vehicles 18K under budget - Paper 10K under budget - Snow Removal 12K under budget - Tires 21K under budget

(k) Utilities OVER BUDGET $135,930.26 - The budget included a credit for the terminal bldg due to the core

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

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

GREENVILLE SPARTANBURG AIRPORT DISTRICT

REVENUES AND EXPENSES TREND GRAPHS

$1.3

$1.5

$1.7

$1.9

$2.1

$2.3

$2.5

$2.7

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

Mill

ion

s

CY Historical Operating Revenues (by Month by Year)

2009

2010

2011

2012

2013

2014

2015

$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

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

Mill

ion

s

CY Historical Operating Expenses (by Month by Year)

2009

2010

2011

2012

2013

2014

2015

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

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

US TreasuryUST T-Bill 4-wk 1/8/2015 2/5/2015 0.010% 4,999,961.10 5,000,000.00 5,000,003.47 42.37

1/8/2015 2/5/2015 0.010% 4,999,961.10 5,000,000.00 5,000,003.47 42.37 1/15/2015 2/12/2015 0.015% 4,999,941.65 5,000,000.00 4,999,978.33 36.68 1/22/2015 2/19/2015 0.005% 4,999,980.55 5,000,000.00 4,999,965.69 (14.86) 1/29/2015 2/26/2015 0.020% 4,999,922.20 5,000,000.00 4,999,971.11 48.91

FRNs 1/31/2014 1/31/2016 0.045% 4,998,950.00 5,000,000.00 4,998,950.00 -

Subtotal-UST 29,998,716.60 30,000,000.00 29,998,872.08$ 155.48

Issue Cost CumulativeDate Basis Yield Balance

NBSC:UST T-Bill 1/20/2014 7/24/2014 1,262,000.00 1,262,000.00

8/22/2013 8/21/2014 724,000.00 1,986,000.00 in-transit adjmt to balance (561,217.00) 1,424,783.00

Subtotal-UST 1,424,783.00$

Issue Cost CumulativeDate Basis Yield Balance

Capital Bank ICS:9/20/2011 2,990,000.00 2,990,000.00

10/18/2011 12,010,000.00 15,000,000.00

Add: Base Capital Bank non-interest bearing account 10,000.00 Add: YTD Interest 90,787.70 0.1500%Less: Fees (215.00)

(15,100,572.70) Subtotal-UST -$

31,423,655.08$ Total

Weighted blended

yield = 0.0672%

January 31, 2015Greenville-Spartanburg Airport District

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

GREENVILLE SPARTANBURG AIRPORT DISTRICT

Terminal Improvement Project

cash basis cash basis cash basisthrough: 1/31/2015

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

Skanska 9,570,188$ 35,931,932$ 15,665,886$ 61,168,006$ RS&H 2,916,235$ 2,650,023$ 5,566,258$

Baker (aka LPA) 1,367,784$ 2,742,449$ 508,167$ 4,618,400$ Jacobs 961,516$ 885,315$ 942,348$ 368,317$ 3,157,495$

RJ Design 65,350$ 220,050$ 285,400$ At&t 205,594$ 205,594$

A3 Communications 170,341$ 170,341$ Air-Transport IT Services 424,339$ 424,339$

G2 Secure Staff 8,508$ 85,979$ 25,833$ 120,320$ CDW Government 1,911$ 62,649$ 3,062$ 67,622$

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

Parsons Brincke 50,000$ 50,000$ Project Link 42,509$ 26,596$ 69,105$

McGriff 32,890$ 51,436$ 84,326$ Tidewater Lumber 30,434$ 1,908$ 768$ 33,110$

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$ 62,128$ 184,347$ Total 123,762,496$ 3,878,151$ 14,786,745$ 40,535,386$ 17,229,808$ -$ 76,430,089$

Cumulative $ Spent 3,878,151$ 18,664,896$ 59,200,282$ 76,430,090$ 76,430,090$ % of Budget spent 3.13% 15.08% 47.83% 61.76% 61.76% 61.76%

Construction 9,635,538$ 35,934,969$ 15,802,949$ 61,373,456$ Professional 3,877,751$ 5,002,818$ 3,667,600$ 735,951$ 13,284,120$

Owners Reserve 400$ 148,389$ 932,817$ 690,909$ 1,772,514$ Total -$ 3,878,151$ 14,786,745$ 40,535,385$ 17,229,809$ -$ 76,430,090$

Cumulative $ Spent 3,878,151$ 18,664,896$ 59,200,281$ 76,430,090$ 76,430,090$

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

through: 1/31/2015FYE FYE FYE FYE FYE

Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 TotalCrawford Strategies 261,000$ 10,900 61,157 75,948 44,076 192,081 Launch Something 279,730$ 25,870 90,133 23,045 17,441 156,489

Total 540,730$ 36,770 151,290 98,993 61,517 - 348,570

Cumulative $ Spent 36,770$ 188,060$ 287,053$ 348,570$ 348,570$ % of Budget spent 6.80% 34.78% 53.09% 64.46% 64.46% 64.46%

through: 1/31/2015FYE FYE FYE FYE FYE

Budgeted 6/30/2012 6/30/2013 6/30/2014 6/30/2015 6/30/2016 Total189,553 3,055,535 25,862 3,270,950

RS&H 218,800 41,816 5,300 265,916 Other 56,558 56,558 Total 3,495,000$ 408,353 3,153,909 31,162 - - 3,593,424

Cumulative $ Spent 408,353$ 3,562,262$ 3,593,424$ 3,593,424$ 3,593,424$ % of Budget spent 11.68% 101.92% 102.82% 102.82% 102.82% 102.82%

TIP Public Relations Expenses

RAC CFC Obligations

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

GREENVILLE SPARTANBURG AIRPORT DISTRICT

Other Operating and Maintenance Reserve Funds

FY $ Amount $ Amount

Authorized Date Used YTDEmergency Repair/Replacement/Operations Fund 750,000$ 7/23/2014 1,962$ LPA Group-Economy Parking lot drainage issues

10/10/2014 8,745$ Michael Baker-Parking lot drainage issues11/24/2015 5,405$ Michael Baker-Economy lot11/25/2014 66,188$ Capitol Construction-Economy Parking Lot

82,300$ 667,700$ Remaining Reserve

Business Development Obligations/Incentives 600,000$

-$ 600,000$ Remaining Reserve

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

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 Howell, Vice President / COO DATE: March 18, 2015 ____________________________________________________________ ITEM DESCRIPTION – Information Section Item C March 2015 – 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 is currently underway with demolition tasks. Project Budget – $125,000,000.00 Estimated Completion Date – August 2016 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. 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. The interior front knee wall continues to progress as well as completion of interior and exterior wayfinding signage and interior paging speakers. Exterior tasks also continue; including glass and canopy completion and paging speakers and lighting located beneath all of the canopies. A Notice to Proceed (NTP) was issued to SKM for the Core effective October 31, 2014.

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item C March 2015 – Project Status/Update Page 2

SKM is currently working on demolition abatement in the central core area and is preparing to begin structural steel erection. South Cargo Modernization Project: Status – Construction Phase Project Budget – $3,000,000.00 Estimated Completion Date – June 2015 The South Cargo Modernization Project includes general improvements to a portion of the South Cargo Building. Design and Engineering is being led by the AVCON on-call team with architectural services being provided by McMillan Pazdan Smith. Clayton Construction is the general contractor. Demolition is currently underway. The project is scheduled to take 120 days and completion is expected by June. Facilities Building Expansion Project: Status – Construction Phase Project Budget – $2,575,000.00 Estimated Completion Date – June 2015 The Facilities Department Building Expansion Project includes construction of an additional building for equipment storage and an addition of an administrative building for the Facilities Department. This project is led by WK Dickson, one of the District’s on-call consulting teams. WK Dickson is supported by several local firms, including DP3 for architecture and Seamon Whiteside - Civil, Burdette - Electrical, Peritus – Mechanical and MMSA - Structural. The general contractor is Mavin Construction. Tasks underway include exterior sheathing and interior framing on the administrative building as well as mechanical/electrical/plumbing rough-in. The building slab for the equipment storage building has been poured and the new fuel farm location is underway. The project is on schedule for an early summer completion. Apron Rehabilitation Project Phase 1: Status – Wrap Up Phase Project Budget – $2,000,000.00

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item C March 2015 – Project Status/Update Page 3

Estimated Completion Date – Substantially Complete The Apron Rehabilitation Project Phase 1 includes the Year 1 recommended items outlined in the 2012 LPA Apron Pavement Study. Year 1 priority items included rehabilitation of the Terminal Apron trench drain and the General Aviation Apron taxilane near Stevens. This Project is substantially complete. The contractor has several completion and punchlist items to finish as well as final wrap-up and closeout items. Campus Landscape Master Plan: Status - Underway Project Budget - $200,000 Estimated Completion Date – August 2015 The GSP Campus Landscape Master Plan Project includes a tree assessment and tree survey, landscape buffer study, development of streetscape standards, campus signage review and recommendations, irrigation assessment, development of landscape design and maintenance guidelines and the development of a 5 year Landscape Capital Improvement Plan. Tasks underway include the tree survey and irrigation assessment. Apron Rehabilitation Project Phase 2: Status - Design Phase Project Budget - $4,500,000 Estimated Completion Date – December 2015 The Apron Rehabilitation Project Phase 2 includes the second year recommended items outlined in the 2012 LPA Apron Pavement Study. Phase 2 items include the reconstruction of the concrete apron pavements at the B Concourse from the terminal building to the new trench drain and from the trench drain to the terminal apron taxi lane. The design is currently approximately 50% complete and Staff will be reviewing a 60% deliverable with the engineering team very soon. The project schedule anticipates bidding in April 2015 and construction starting in early summer (dependent on final FAA AIP discretionary funding).

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: Rosylin Weston, Vice President - Communications DATE: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item D March 2015 – Communications Report News Stories Broadcast, Print and Online:

• Greer Today –“ GSP averaging $15 less per ticket than Atlanta or Charlotte” • UpstateBizSC- “ The Average Domestic Fare out of Greenville-Spartanburg International

Airport is lower than Regional Competitors for the Fifth Consecutive Quarter”

• Greenville News – “GSP ticket prices increase slightly in third quarter” • Spartanburg Herald-Journal–“GSP Airport ticket prices increased slightly” • WHNS Fox Carolina – “ Numerous flights cancelled at GSP due to weather” • Greenville News –“Closing, delays and road conditions” • WLOS-TV 13 – “Weather causes cancellations, delays at GSP International”

New Releases or Alerts:

• The Average Domestic Fare out of Greenville-Spartanburg International Airport is Lower than Regional Competitors for the Fifth Consecutive Quarter

Website Statistics: WINGSPAN BLOG 02/01/15-02/28/15

• 470 Visitors – 55% were new visitors • 804 pages were viewed by visitors to the blog. The largest spike came as a result of a

construction update and news about the average domestic fares out of GSP

GSPAirport.com 02/01/15 – 02/28/15 • 128,113 Sessions-75% were new visitors • Average Page View per Visit 3.59 Pages • Average Duration on-site 01:34 minutes • 37,072 Visits to Mobile Site

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item D March 2015 - Communications Report Page 2

Facebook 02/01/15-02/28/15 74 new Likes 899,920 people have seen content associated with the GSP Page. This is referred to as “Reach”.

• The Call to Artists was posted on the GSP website homepage. It was also posted on Facebook, Twitter and included in the weekly Blog. Other locations that posted as a result of seeing the GSP Social Media posts include SideArts Online Call to Artists, Forecast Public Art monthly newsletter, The Elizabeth Foundation for the Arts.

Renewals: Terminal Advertising Program Updates: Contract Renewals Crown Plaza at $250.00 per month for 1 year The Greenville Drive at $800.00 per month for 1 year Bosch Rexroth at $800.00 per month for 1 year Newly Installed Advertisement Gibbs Cancer Center column wraps – This installation increases revenue collected by $2,000.00 per month for this customer. Customer Service Complaints – Summary

• Too many cars parked curbside in front of the terminal waiting so there was no place for customer to actively load and unload.

• Waited too long for bags to arrive in baggage claim - The offending airlines US Air and American.

Thanks Again Rewards Program: 27 – Qualified Transactions $ 6,376.16 – Qualified transactions in dollars and cents $ 37.19 – Average amount per parking transaction

Happy Or Not 02/01/15-02/28/15 The Happy Or Not meters were strategically placed in the bathrooms on the A Concourse- and passengers were asked, Did the cleanliness of this bathroom meet your expectations? The customer was provided with 4 response options, Very Happy, Happy, Not Happy, and Very Unhappy.

• 5,791 Total Responses • 4,838 were Very Happy • 690 were Happy

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: Scott C. Carr, A.A.E., Director – Properties and Development DATE: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item E March 2015 – Properties and Development Report SUMMARY North Cargo Modernization Project: Status – Geotechnical work has been completed and design work is underway. Project Budget – $1,300,000 Estimated Completion Date – November 30, 2015 The Airport District is designing a shared use cargo facility. The facility is being designed to allow for long term flexible use and expandability in the future as demand warrants for UPS and other cargo tenants. In addition, the project consists of relocating UPS from the south cargo building and ramp to the north cargo ramp and constructing new facilities. The new leasehold area will be sized to handle up to two Boeing 767-300 aircraft simultaneously, loading and unloading of up to eight 53 foot tractor trailer trucks, and new administrative office and support space. Greer CPW – Victor Hill Road Electrical Substation Project: Status – Site preparation work has been completed and contractor bids were received. Project is presently waiting on the required FAA airspace study results while bids are being reviewed.

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item E March 2015 – Properties and Development Report Page 2

Project Budget – All costs are being covered by Greer CPW. Estimated Completion Date – September 30, 2015 The Airport District has leased 4.99 acres of property to Greer CPW for the construction of a new electrical substation. The facility will be located on Victor Hill Road south of J. Verne Smith Parkway. Concessions Program Development – Grand Hall Phase: Status – Currently working with both Hudson and MSE to finalize the plans for their respective food, beverage, and retail programs. 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 & MSE Branded Foods. Estimated Completion Date – July 31, 2016 As part of the Grand Hall, there will be several new food, beverage, and retail offerings available to the traveling public. These include at a minimum Baskin Robbins, Dunkin Donuts, Chick-fil-A, Tech on the Go, as well as a sit down restaurant and retail store that have yet to be named. Sprint Wireless – Cell Phone Antenna Equipment Upgrade & Capacity Enhancement Project: Status – New cabling and telecommunication equipment is in place. Waiting for new fiber optics line easement agreement to be finalized so that installation can begin. Project Budget – All costs are being covered by Sprint Wireless. Estimated Completion Date – To Be Determined Sprint Wireless 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. The project requires that a new fiber optics line be installed by Spirit Telecom. This new line will begin at the intersection of State Route 14 and GSP Drive and run along GSP Drive up to Parking Garage A.

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item E March 2015 – Properties and Development Report Page 3

National Weather Service / AT&T Fiber Installation Project: Status – Construction drawings are currently under review. Project Budget – All costs are being covered by AT&T. Estimated Completion Date – To Be Determined The National Weather Service is in the process of upgrading its equipment and needs additional high speed data capacity. AT&T is proposing to provide this additional data capacity via the installation of a new fiber optics line. This new line is proposed to begin at the intersection of State Route 14 and GSP Drive and run along GSP Drive up to an existing communications manhole located at the Airport Facility Department. Along GSP Drive, the fiber optics line would branch off at proposed manhole that would be installed adjacent to the National Weather Service to provide the required connectivity to their leasehold. FedEx – Apron Grounding Rod Installation Project: Status – Construction drawings are currently under review. Project Budget – All costs are being covered by FedEx. Estimated Completion Date – May 31, 2015 FedEx is proposing to install a grounding rod in the apron at their primary aircraft parking position. This will provide an added safety element for aircraft refueling and equipment servicing. FedEx – Customer Service Lobby Renovation & Exterior Signage Replacement Project: Status – Construction drawings are currently under review. Project Budget – All costs are being covered by FedEx. Estimated Completion Date – May 31, 2016 FedEx is proposing to completely renovate its customer service lobby with new millwork, carpeting, wall coverings, branding, etc. In addition, it is planning to replace the exterior building signage with its updated branding.

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item E March 2015 – Properties and Development Report Page 4

American & Southwest Airlines – Gate Realignment Project: Status – Awaiting electrical contractor schedule for relocation of the Southwest Airlines GSE charging stations from Gate A3 over to Gate A4. IT related work presently underway. Millwork relocation to be scheduled once IT related work is completed. Project Budget – All relocation costs will be covered by American & Southwest Airlines. Estimated Completion Date – April 30, 2015 Southwest Airlines presently operates off of Gates A3 and A4. They are consolidating their operation onto Gate A4. This will allow American Airlines to relocate from Gate A5 over to Gate A3. US Airways currently operates off of Gates A1 and A2. With American and US Airways merging into a single airline, this will permit the new American Airlines to have three contiguous gates. This will help maximize operational efficiency for the combined airline. AirIT – Gate Installation Project: Status – Contract with AirIT is currently being reviewed. The required network cabling to Gate A5 is presently being scheduled. Project Budget – $23,000 Estimated Completion Date – June 30, 2015 The Airport District is in the process of contracting with AirIT to extend their Extended Airline System Environment (EASE) from the temporary ticket counters and Gates A7, A9, and B1 to Gate A5. This will permit any airline to process passengers through this gate. As the upcoming concourse renovations begin, this will allow the Airport District to temporarily relocate airline gates that are impacted by construction activity. Following construction, this particular gate will be used as another “shared use gate” for airline off-schedule operations, charter flights, etc. Best Buy Express Kiosk: Status – Best Buy & Zoom Systems have approved a location adjacent to Gate B2. Presently, waiting on an installation date from Zoom Systems. Project Budget – All installation costs will be covered by Zoom Systems.

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

www.gspairport.com

Greenville-Spartanburg Airport Commission Information Section Item E March 2015 – Properties and Development Report Page 5

Estimated Completion Date – April 30, 2015 Based on the success of the Best Buy Express kiosk on Concourse A, Zoom Systems has approached Best Buy about installing one on Concourse B. The automated kiosk will sell a wide variety of electronics including earphones up to Apple IPad Minis. It will provide travelers with the added convenience of being able to purchase brand name items that they may have forgotten for their trip or make a last minute purchase of an item to enhance their journey. All items for sale in the kiosk are priced the same as those in Best Buy stores. In addition, all items can be returned with a receipt to any Best Buy store for an exchange or a refund. The kiosk will be located across from Gate B2. Automated Teller Machines: Status – NBSC has approved two locations with one located in Baggage Claim and another on Concourse A. Tentative installation date for both locations is March 16, 2015. Project Budget – All installation costs will be covered by NBSC. Completion Date – March 31, 2015 In October 2014, Bank of America elected not to relocate their ATM located in between the ticketing lobby and baggage claim to accommodate the terminal building construction. They removed their ATM on October 31, 2014. Since that time, the Airport District has worked with NBSC who handles our banking to install ATM’s inside the terminal building for employee and passenger convenience.

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: Marsha Madore, Human Resources Manager DATE: March 18, 2015 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item F March 2015 – OSHA Reportable Injury Report SUMMARY Monthly Activity as of February 28, 2015

• No OSHA Reportable Injuries 2015 Calendar Year-to-Date

• No 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 2014 124 233,977 6 0 81 2013 121 140,106 5 0 3

N A O T C O M F O R T F O O T W E A R

We Pay The Sales Tax, 4 Days Only! President's Day Sale, Ends 2/16.

N A O T C O M F O R T F O O T W E A R

We Pay The Sales Tax, 4 Days Only! President's Day Sale, Ends 2/16.

Home News Aircraft Jobs Airspace Images Cutaways Historic Air Shows Products

American continues regional fleet renewal with firstowned E175

American Airlines took delivery of its first owned Embraer 175 aircraft today, the first of 60 aircraft it willadd to its regional fleet through 2017.

The aircraft, registered N200NN and MSN 17000456, will be operated by Trans States-subsidiaryCompass Airlines beginning in March. It will be used to replace smaller regional jets as Americancontinues renewing its feeder fleet.

“The last few years really have been about restoring American Airlines to greatness and today really isthe culmination of a lot of those efforts,” says Kenji Hashimoto, senior vice-president of regional carriersat American, at the handover ceremony in Sao Jose dos Campos, Brazil, today. A “key effort” in thatprocess is fleet renewal, he says.

The 76-seat E175s are replacing small regional aircraft in the Fort Worth, Texas-based carrier’s feederfleet. It plans to replace one Bombardier Dash 8-100 and 21 Embraer ERJ-140s, with 21 BombardierCRJ900s and 29 E175s – including N200NN – this year, its latest fleet plan shows.

This comes after American removed two Dash 8-100s and 40 ERJ-140s, and added 25 CRJ900s and24 E175s to its regional fleet in 2014.

The mainline carrier is also updating its mainline fleet, including replacing older Boeing 767s BoeingMD-80s with new Airbus A321s and Boeing 787s.

American will place the first 20 of 60 E175s it has on firm order with Minneapolis-based Compass. Theremaining 40 will go to its Envoy subsidiary with deliveries beginning in November.

“I can’t think of two greater partners to represent American Airlines and [its] brand out to our customers-- Embraer and Compass,” says Hashimoto.

Embraer Commercial Aircraft president and chief executive Paulo Cesar Silva, American vice-presidentof fleet planning Peter Warlick and Compass parent Trans States president Rick Leach joined

Cookies on our websitecloseOur website uses cookies, which are small text files that are widely used in order to make websites work more effectively. To continue using our website and consent to the use of cookies, click away from this box or click 'Close'Find out about our cookies and how to change them

Search FlightglobalPrivacy & Cookies

Sign In/Register

Airlines Aircraft Leasing and Financing

By: EDWARD RUSSELL SAO PAULO

Source:

20:54 11 Feb 2015(12/02/15)

American seeks Alaska’s Los Angeles-MexicoCity authority

(12/01/15)American to introduce owned E175s at LAX

(23/12/14)

Envoy pilots approve contract guaranteeing themE175s

(08/12/14)Envoy and ALPA reach new agreement for E175s

(24/10/14)

American could speed up small regional jetretirements

(18/06/14)Compass to operate 20 E175s for American

More on this story:

Privacy and Cookies

News

Hashimoto at the ceremony.

The four executives at the delivery ceremony, first four from left to right: Hashimoto, Leach, Warlick and Silva

Flightglobal/Edward Russell

Silva highlights the nearly two-decade relationship between American and Embraer at the ceremony.Citing the order for 50 Embraer ERJ-145s that the carrier placed in 1997 as helping to rejuvenate whathe says was then a “broken company”.

“We would not be here now if it was not for American in 1997,” he says.

The E175 will enter service with Compass on flights to Denver International and HoustonIntercontinental airports from Los Angeles International airport on 29 March. Both routes are currentlyflown on Mesa Airlines-operated Bombardier CRJ900s.

Leach says that all 20 of the E175s at Compass will be based in Los Angeles.

“It builds on a strength we already have [there], it’s a natural transition for us,” he says.

American has 90 options for E175s from its December 2013 order. The airline continues to evaluate itsneed for regional aircraft, says Warlick, but he declines to comment further on its plans for the options.

Ads Powered with

Ads Powered with

Marketplace Recommendations

Marketplace Recommendations

Products & services

Best Selling Jet Engine

Delta TechOps offersfast, high quality, cost-

effective MROsolutions for your

CF34-3/-8 engines.

CF6 Time TestedEngine

30+ years ofexperience

maintaining CF6engines. Find out howwe can keep your fleet

moving

Best Selling Jet Engine

Delta TechOps offersfast, high quality, cost-

effective MROsolutions for your

CF34-3/-8 engines.

CF6 Time TestedEngine

30+ years ofexperience

maintaining CF6engines. Find out howwe can keep your fleet

moving

Analysis & research

News & alerts

Special reports

E- newsletters

RSS feeds

Blogs & comments

Advertiser information

News Aircraft | Aerospace | Aviation | Military | Business aviation | MRO | General aviation | Space | Airports | Engines and propulsion | Flight tests |

… part of Reed Business InformationCopyright © 2015

Jobs at RBIFlightglobal branding

About usContact usSitemap

DisclaimerTerms and conditionsPrivacy policy

channels Accidents and incidents | Flightglobal blogs | E-newsletters |

Data & research channels

Flightglobal dashboard | ACAS | MiliCAS | Ascend Fleets | Flightglobal Insight | ICAO | CapStats | Airport charges | Ascend Values | AviationExchange | Aircraft Ratings | Helicopter Fleets | Market Commentaries | FlightMaps Analytics | Industry resources

Jobs & training

Browse by job role | Career advice | Jobs by email | Jobs search | Recruiter services

Events & air shows

Airline Strategy Awards | Air shows | Conferences | Exhibitions | Flightglobal events

Travel

Calls grow louder for moreeffective airline regulation

The days of a freewheeling, lightly regulated airline industry, in which a carrier can

charge whatever fees and fares it pleases, may be nearing an end.

A confluence of events is pressuring government regulators to take action that,

depending on your point of view, will make air travel less expensive or interfere with a

free market, driving ticket prices higher.

Soaring airfares and passenger discontent are stoking the long-

dormant embers of regulation in Washington. Last week, they

resulted in a request by a prominent airline-traveler advocacy

organization for regulations limiting fees for changes and

cancellations in foreign air travel and to demands by a leading

business travel organization for the Department of

Transportation to investigate fuel surcharges. Together, those twin efforts could set the

stage for a serious and concerted push to rethink the government’s oversight of the

commercial aviation sector.

By Christopher Elliott Columnist February 19

Elliott is a consumer

advocate, journalist and co-

founder of the advocacy

group Travelers United. E-

mail him at chris@elliott.org.

View Archive

The latest plunge of the airline-regulation roller coaster is worth following, says Edward

Hasbrouck, an industry-watcher.

“Given how lax the DOT has been in policing its existing rules, such as those on fuel

surcharges, I expect DOT will argue that airlines can make these fees as high as they

like, as long as they are clearly disclosed,” he says.

That is, unless enough passengers speak up. And they might. This month, DOT issued

its 2014 airline report card, which showed service complaints had risen by 17.9 percent

last year, to 15,532, up from 13,176 a year before. Fliers haven’t been this unhappy with

airlines since 2001, when they filed 16,508 complaints with the government.

At the same time, North American airlines are expected to post a $11.9 billion profit for

2014, up from $5.8 billion a year before. Part of the reason is that the government

green-lighted several mergers — including between American Airlines and US Airways

— which reduced some competition. Another reason is the dramatic drop in fuel prices,

which so far hasn’t translated into lower fares.

Under those circumstances, it’s likelier that consumers will “support watchdog

organizations that advocate for them with agencies like DOT,” Hasbrouck says.

One of them is FlyersRights.org, the organization largely responsible for regulations

that limited the amount of time airlines could keep passengers waiting on a plane. Last

Wednesday, it asked regulators to make a rule imposing “reasonable regulations

limiting the extent of change and cancellation fees in foreign air transportation.” It also

asked authorities to reconsider its antitrust exemptions given to international airline

alliances.

Airlines charge between $200 and $750 to change a ticket, which FlyersRights.org

contends is unreasonable. It wants change fees capped at $100 unless an airline can

show higher costs.

“In most instances, the airline bears no burden from passengers changing flights,” says

Paul Hudson, FlyersRights.org’s president. “Quite the opposite.”

He notes that passengers typically have to pay the differential in price for the new flight

along with a hefty change fee. Yet the costs associated with shifting a passenger’s

electronic reservation from one flight to another are “minimal,” and the effect of

changing that passenger from what is typically a cheaper to a more expensive ticket,

coupled with a change fee, amounts to a windfall profit for the airline.

“As a result, such change fees end up being a profit source for airlines, not a reasonable

reaction to cover the actual costs,” he says.

A second initiative, launched last Tuesday by the Business Travel Coalition (BTC), urges

the government to investigate the sizable fuel surcharges on many itineraries, which it

claims violate a 2012 guidance that those surcharges must be tied to the actual cost of

jet fuel and that how they’re calculated must be explained to customers.

According to Kevin Mitchell, the BTC’s president, airline executives have said they plan

to keep high fuel surcharges because demand is high, and they price to demand, not to

costs. This, despite justifying the surcharges by citing rising jet fuel costs in the first

place.

“Why are U.S. airlines keeping fuel surcharges, and keeping them so high?” he asks.

“Because they can.”

Mitchell is hoping for quick enforcement action by the DOT. He says the agency

contacted him within “minutes” of receiving his e-mail, which could signal that they

know the time for action has come.

“This might suggest they know there is a problem and they could be poised to take

enforcement action,” he says. “All it would likely take to get airlines’ attention is one

enforcement action.”

Similarly, a proposed rule could force airlines to voluntarily reduce or cap their change

fees, and could even affect domestic ticket charges. In 1999, the last time airlines were

faced with a significant amount of re-regulation (a year when 20,495 consumers

complained to the government about bad airline service), they responded with a

voluntary program called “customers first,” a set of promises to treat their passengers

better.

Opponents of regulation contend that more rules would interfere with a free market and

increase ticket prices. Victoria Day, a spokeswoman for Airlines for America, a trade

organization for domestic airlines, called the DOT investigation “unnecessary.”

“Fuel is airlines’ largest and most volatile cost, and for more than four years, oil

averaged more than $100 a barrel,” she says. “For just four months fuel prices have

been lower and, not unexpectedly, are rising again. Individual carriers determine

whether to add fuel surcharges to international fares, and U.S. carriers comply with all

related rules.”

Perry Flint, a spokesman for the International Air Transport Association, a trade group,

has echoed those sentiments. When DOT reviews the FlyersRights.

org petition, he said, IATA is confident it “will conclude that the market is working and

that there is no basis for regulation in this area.”

Robert Poole, director of transportation policy for the Reason Foundation, a libertarian

think tank, admits he’s annoyed by high airline change fees.

“But my general impression is that the DOT should leave hands off, consistent with the

principles of the Airline Deregulation Act of 1978,” he says. “I’m worried that DOT

intervention regarding international change fees could be the beginning of a slippery

slope toward re-regulation.”

Elliott is a consumer advocate, journalist and co-founder of the advocacy group

Travelers United.

E-mail him at chris@elliott.org.

Read more from Travel:

Read past Navigator columns here