Kansas City Aviation Department Community Partner Update 1 KCI - - PowerPoint PPT Presentation

Kansas City Aviation Department

Community Partner Update

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Economic Impact Study – 41,625 Jobs and $5.02B Annual Impact Passenger Traffic is Increasing

• 14 consecutive months of year-over-year growth
• July 2015 – First million-passenger month since June 2008

Airlines are Choosing Kansas City

• Allegiant will become KCI’s third new airline in four years when

service begins November 2015 New Destinations since Summer 2014:

• Miami (MIA), Orange County (SNA), St. Pete/Clearwater (PIE),

Great Bend (GBD), Punta Gorda (PGD) and Orlando/Sanford (SFB) New Competition since Summer 2014

KCI Business Update

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Valet Parking Launched in September 2014 to Alleviate B Garage Demand

• 300 peak day customers

KCI Hangar Facility (MRO) is Fully Leased

• 500 employees

KCI Intermodal BusinessCentre is Expanding

• New spec building

MKC Investment is Paying Dividends

KCI Business Update

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Prior to the 1972 Charles B Wheeler Downtown Airport (MKC) was Kansas City’s commercial airport Trans World Airlines (TWA) influenced the planning of the Kansas City International Airport (MCI/KCI) in the 1960s, designing it to be a gateway to the world for supersonic aircraft KCI opened November 11, 1972 Do to a rapid increase in aircraft hijackings, the FAA mandated screening of airline passengers and carry-on bags on January 5, 1973 When KCI was designed/built there was no separation between secure and unsecure areas

KCI Terminal Facility History

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KCI Terminal Facility History

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Airport Funding

KCI Improvements are Funded by Airlines & Travelers

• City tax revenues do not, and will not, pay for airport operations,

maintenance & capital projects.

Airport Fees & Charges Stay at KCI

• Federal law prohibits diverting airport fees & charges for other City

purposes.

Airport Revenue Bonds

• Bonds are secured based only on airport fees & charges, passenger

facility charges & federal grants—not with city or state taxes.

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Terminal Improvement Program

1995: 1995: Airport Master Plan/approved by the FAA, the Terminal Improvement Program – TIP TIP was initiated. 1998 1998 - 2000: : Completed designs for construction/bid documents. Construction phasing determined with airline approval. 2000 2000 - 2004 2004: : TIP construction takes place in multiple phases in each of the three terminals. Prog

• gram Co

Costs tot

• tal

l $258 mi milli lion (today’s dollars = $420 million)

Terminal Improvement Program (TIP), 1995-2004 Included Complete Removal of Interior Down to Concrete Frame

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Airport Terminal Timeline

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Program Goals

Improving KCI Customer Convenience Affordability Efficiency Technology Right-Sized Flexibility Construct- ability

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KCI Forecast: Gate Requirements

Aircraft Operations (Arrivals and Departures) in 2030

5 10 15 20 25 30 35

4:50 5:20 5:50 6:20 6:50 7:20 7:50 8:20 8:50 9:20 9:50 10:20 10:50 11:20 11:50 12:20 12:50 13:20 13:50 14:20 14:50 15:20 15:50 16:20 16:50 17:20 17:50 18:20 18:50 19:20 19:50 20:20 20:50 21:20 21:50 22:20 22:50 23:20

KCI needs 35 gates in 2030. (30 currently leased)

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Airport Terminal Gate Comparison

40 20 30 34 33 32 63 35 105 144 176

20 40 60 80 100 120 140 160 180 IND Indianapolis DAL Dallas Love Field MSY New Orleans SMF Sacramento SJC San Jose AUS Austin STL

• St. Louis

KCI Kansas City/2025 DEN Denver (53 million pax) DFW Dallas Fort Worth (64 million pax) ORD Chicago (70 million pax)

Gates

Note: AUS and MSY gate counts reflect projects planned and currently under construction. KCI count reflects KCI’s future needs.

KCI Peer Airports – 7 to 13 million pax

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Existing Space/Terminal Requirements

Post-Security Space Undersized by Nearly One-Half Pre-Security Space Nearly 3x Amount Needed

Existing* Requirements Gates 29 35

Ticketing/Check-in 20,879 32,000 Security Checkpoint 29,951 18,640 Departure Lounges 100,281 81,600 Post-Security Departure Corridor 95,540 Post-Security Restrooms 4,949 11,200 Airline Club 2,500 International Arrivals 21,001 31,460 Concessions 60,097 70,660 Pre-Security Circulation, Restrooms, and Seating 156,283 58,200 Bag Claim 17,745 45,710 Baggage Makeup 72,761 82,080 Airline Operations/ATO/BSO 96,591 56,720 Non Public Spaces 91,955 49,450 Terminal Functions (HVAC, MEP) 101,357 117,200

Total Area 773,850 752,960

*Existing Terminals B&C

FUNCTION

Bag Claim Space Undersized by Nearly 2/3rds Non Public Space Oversized by Nearly 2x Amount Needed

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U.S. Airport Terminal Configurations

Kansas City Int’l Austin-Bergstrom Int’l Dallas Love Field Indianapolis Int’l John Wayne-Orange County Lambert-St Louis Int’l Louis Armstrong New Orleans Int’l Nashville Int’l Norman Y. Mineta San Jose Int’l Pittsburgh Int’l Port Columbus Int’l Raleigh-Durham Int’l Sacramento Int’l San Antonio Int’l Southwest Florida Int’l General Mitchell Int’l (Milwaukee) Metropolitan Oakland Int’l Portland Int’l William P Hobby (Houston) Detroit Metropolitan

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Overview of Terminal Planning Approach

KCAD and the airlines reviewed options identified in earlier studies, ideas from the Mayor’s Terminal Advisory Group, and public comments; then generated numerous new terminal alternatives to optimize the configurations

New Terminal | NT Major Renovation | MR

MR | OPTION A NT | OPTION A MR | OPTION B NT | OPTION B

Conceptual Site Plans

New Terminal: A New Terminal: B Major Renovation: A Major Renovation: B

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Major Renovation: Concept A

New two-level terminals and major concourse renovations at Terminals A and B Centralized ticketing, security and baggage in both terminals New two-level arrival and departure roadway 2 new garages

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Major Renovation: Concept B

A new centralized, two-level terminal with major renovation

• f existing A & B

concourses Consolidated ticketing, security and baggage New two-level arrival and departure roadway New central garage Renovation of 2 existing garages

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New Terminal: Concept A

New two-level terminal and concourses New two-level arrival and departure roadway New parking garage

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New Terminal: Concept B

New two-level terminal and concourses New two-level arrival and departure roadway New parking garage

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Facility Requirements: MR / NT

• MR Oversized by 21%
• NT Right-Sized

To Provide Future Expansion Capability:

• MR Oversized by 43%
• NT Only 8%

Requirements Major Renovation New Terminal Gates 35 35 35

Ticketing/Check-in 32,000 49,344 34,901 Security Checkpoint 18,640 21,693 18,654 Departure Lounges 81,600 92,859 82,395 Public Space/Departure Corridor 164,940 211,518 170,048 Airline Club 2,500 4,163 2,546 International Arrivals 31,460 40,003 34,106 Concessions 70,660 73,245 68,633 Bag Claim 45,710 50,641 45,401 Baggage Makeup 82,080 127,494 79,882 Airline Operations/ATO/BSO 56,720 66,814 52,961 Non Public Spaces 49,450 49,766 44,818 Terminal Functions 117,200 120,038 117,663

Total Area in Use (Square Feet) 752,960 907,578 752,008

Unassigned Space 143,165 21,542 Unbuilt Tug Drive Through 29,056 24,889 Undeveloped Space 12,929

Total Gross Area (Square Feet) 752,960 1,079,799 811,368

FUNCTION

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MR / NT Alternatives Evaluation

GOALS MAJOR RENOVATION (MR) NEW TERMINAL (NT)

Construct- ability More difficult and longer time to construct than NTs with far more passenger disruptions during construction Isolated site allows easier and shorter construction time than MR with less passenger disruptions Technology Some limitations on ability to include all new technologies All new technologies for all functions Right-Sized Requires more space than necessary due to its inefficient configuration and duplication of functions Avoids duplicate central processors, bag systems, concessions, moving walkways, parking garages Flexibility Existing concrete structure and circular configuration limits the flexibility of functional uses and expansion options New structure and layout provides better flexibility of spatial uses and more expansion potential Efficiency Less operationally efficient than NT due to airside, terminal, and landside operational constraints More efficient airside, terminal and landside operations than MR Customer Convenience Better than today’s terminals but less than NT More customerr conveniences for all passengers Affordability Higher capital and operating cost than NT Lower capital and operating cost than MR

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Airlines and KCAD concluded that major renovation alternatives presented significant shortfalls:

• Higher capital and ongoing operating cost
• Substandard operational performance
• More difficult and lengthy construction
• Limited options to improve customer convenience

Initial Findings:

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The Airline-Airport Affairs Committee unanimously proposed tabling further study of major renovation options The Airline-Airport Affairs Committee will continue to review and refine new terminal options

Airline Recommendation:

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Next Steps

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Refine New Terminal Options Final Presentation to City Council & Mayor

• Design & layout
• Cost estimations
• Airline agreement

KCAD Revenue has nearly doubled over the last 10 years

• $69M in 2004 to $125M in 2014

Rating agencies have recognized improved financial strength of the airport and responded with improved ratings KCAD Debt Schedule

KCAD Financial Summary

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$- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Debt Service (000,000)

Existing PFC Bonds Existing Sub. Lien Existing Senior Lien

KCI does NOT currently have 90 gates Airfares are NOT directly related to airport costs Convenience is a component, but not the entirety, of the overall guest experience at KCI We are NOT designing a facility that compares in size to Los Angeles (LAX), Atlanta (ATL) or Chicago (ORD)

Common Misconceptions

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Dallas Love Field – DAL Gates: 20 9.4M pax/yr Indianapolis – IND Gates: 40 7.4M pax/yr Saint Louis – STL Gates: 63 12.4M pax/yr Chicago – MDW Gates: 43 21.2M pax/yr

Peer Airports – Benchmark Comparisons

Non-Peer Airports – Benchmark Comparisons

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Chicago O’Hare – ORD Gates: 176 70.1M pax/yr Denver – DEN Gates: 105 53.5M pax/yr Dallas Fort Worth – DFW Gates: 144 63.5M pax/yr

Kansas City Aviation Department

Community Partner Update