Agenda - Ohio Department of Transportation Schalk -17... · MAASTO Cincinnati, Ohio July 2011 1...

Federal AviationAdministration

1Presentation to Alan Yamamoto (Office of Sen. Inouye)

January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

1

Agenda

• Aviation Authorization Bill

• Economic issues and pressures

• Aviation forecasts

• NPIAS update

• Appropriation and authorization status



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

2

History of FAA authorizing legislation

Airport and

Airway

Improve-

ment Act

1982

1987

Airport and

Airway

Safety and

Capacity

Expansion

Act

Aviation

Safety and

Capacity

Expansion

Act

1990

1992

Airport and

Airway Safety,

Capacity, Noise

Improvement

and Intermodal

Transportation

Act

Federal

Aviation

Reauth.

Act

1996

2000

AIR-21

Vision 100

2003

2007

Authorization

expired

9/30/2007(followed by a

series of short-

term extensions)

You are

here

2011



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

3

Economic issues and pressures

• Economic environment

—Producers

—Consumers

—Taxpayers

—Investors

• Federal budget environment

• Airport and Airway Trust Fund (AATF) revenues



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

4

Economic issues and pressures (cont’d)

• Stakeholder concerns:

—Airport owners and operators

—Traveling public

—Neighboring communities

—Airlines and aviation user groups

—State aeronautical agencies

—Consultant community

—Contracting community

—Elected and appointed officials (Federal, state and local)

—Underwriters, rating agencies and bond insurers

—Other units within the FAA (e.g., Air Traffic Organization, Runway

Safety Office, Flight Standards, Flight Procedures, Policy Office, etc.)

—Other Federal agencies (e.g., FHWA, TSA, EPA, USACOE, etc.)

—Federal oversight units (GAO, OIG, OMB)



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

5

2011 Aerospace Forecast highlights

• Domestic enplanements on mainline and regional air carriers

increased from 630.8 million in 2009 to 635.3 million in 2010

(0.7%):

—Domestic mainline carrier enplanements dropped 0.7%

—Domestic regional carrier enplanements increased 5.0%.

• Total landings and takeoffs at FAA and contract towers were

down 3.2% from 2009:

—Air carrier activity decreased by 1.4%

—Commuter/air taxi activity decreased by 1.1%.

—General aviation activity decreased 5.1%.



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

6

2011 Aerospace Forecast highlights (cont’d)

• Total mainline air carrier and regional enplanements forecast to

increase from 712.6 million in 2010 to 1.27 billion in 2031

(average annual rate of 2.8%).

• Domestic enplanements projected to increase 3.0% in 2011 and

then grow an average of 2.5% per year during the remaining

20-year forecast period.

• International enplanements forecast to increase 7.8% in 2011 and

then grow an average of 4.3% per year for the rest of the period.

• Total system enplanements are expected to reach one billion in

2021, and in 20 years (by 2031):

—560 million more passengers on U.S. airlines, doubling RPMs.

—35% more tower operations

—61% more aircraft handled



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

7

2011 Aerospace Forecast highlights (cont’d)U.S. Commercial Air Carriers—System Enplanements by Fiscal Year



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

8

2011 Aerospace Forecast highlights (cont’d)

• The industry will continue its recovery in 2011 driven by growing

demand for air travel as the economy strengthens.

• Recovery in demand is modest as high unemployment continues to

constrain consumer spending on all items, including air travel.

• Major risk factors:

—Higher and more volatile energy prices

—Slower economic growth

—Capacity constraints at congested airports

—Airline consolidation

—Concerns about climate change and environmental impacts



January 14, 2011

Honolulu, Hawaii

Fluctuation is normal

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100

200

300

400

500

600

700

800

900

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60

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10

Total U.S. passenger enplanements, in millions, 1960-2010 (2010 estimated)

Northwest Mountain Region Conference

Seattle, Washington

April 2011



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

10

NPIAS snapshot as of September 30, 2010

Airport Type

Number of

Airports

% of U.S.

Enplanements Examples

Large Hub (>1.0% of all enplanements) 29 68.0% O’Hare, Midway, Detroit,

and Minneapolis

Medium Hub (0.25 - 1.0% of all enplanements) 37 20.0% Cleveland Hopkins or

Columbus

Small Hub (0.05 - 0.25% of all enplanements) 72 8.0% Akron-Canton or Dayton

Non-Hub (>10,000 enplanements, but less than

0.05% of all enplanements)

244 3.0% South Bend

Non-Primary Commercial Service (>2,500 enplanements and scheduled service)

121 0.1% Toledo

Relievers (>100 based aircraft or 25,000 annual

itinerant operations—other criteria apply as well)

269 0.0% OSU or Rickenbacker

General Aviation 2,560 0.0% Springfield

Existing NPIAS airports = 3,332 99.1%

+ Low Activity Landing Areas 16,402 0.9%

= Grand Total 16,732



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

11

NPIAS snapshot as of September 30, 2010 (cont’d)

• $52.2 billion of AIP-eligible infrastructure development for all

categories of airports over the next 5 years.

• This is an increase of 5% ($2.5 billion) over the last report issued

2 years ago.



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

In $ millions, with rescissions reflected

12

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

Authorized 2,025 2,970 2,161 2,214 2,280 2,347 2,410 2,475 3,200 3,300 3,400 3,458 3,520 3,587 3,700 3,515 3,515 3,515

Appropriated 1,800 1,690 1,450 1,450 1,460 1,700 1,950 1,896 3,195 3,300 3,400 3,380 3,472 3,515 3,515 3,515 3,515 3,515

FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10

AIP Authorization and Appropriation Levels

Historical Data Source: FAA, Office of Airport Planning and Programming (APP-520) records



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

13

American Recovery and Reinvestment Act

$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

Discretionary $1,100.00 $2,015.30

Nonprimary $338.60

State Apportionment $291.30

Cargo $93.50

Passenger $786.40

ARRA Regular AIP

Note: Total AIP Discretionary in FY-2008

included an unprecedented level of funds

(about $622 million) converted because

many sponsors elected to carry over their

Entitlements.

In $ millions for airport grants, compared to FY-2008 AIP



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011



January 14, 2011

Honolulu, Hawaii

15

Phased projects can drive increased

mobilization costs

Increased costs means less

infrastructure built

Delayed bidding can erode

competitive bid environment

Problems with material suppliers and

subcontractors

More grants to administer

Impacts of repeated short-term extensions

Uncertainty about entitlements and

carryover

Impacts to bid cycles

Difficulty planning

FAA

Contracting

community

Consulting

community

Airport

sponsors

State

aeronautical

agenciesImpact Categories

Increased phasing

Protracted construction

More potential construction impacts


Seattle, Washington

April 2011



January 14, 2011

Honolulu, Hawaii

16

Longer-term reauthorization status


Seattle, Washington

April 2011



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011

• Multiple audits currently underway by DOT Office of the Inspector

General (OIG), Government Accountability Office (GAO) and

others.

• Not limited to ARRA-funded projects.

• Focus on transparency, job reporting, compliance with all Federal

laws, audit and reporting compliance.

Increasing focus on accountability



January 14, 2011

Honolulu, Hawaii

MAASTO

Cincinnati, Ohio

July 2011


Agenda - Ohio Department of Transportation Schalk -17... · MAASTO Cincinnati, Ohio July 2011 1...

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