Passenger Facility Charge Program Logan International Airport - - PowerPoint PPT Presentation

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Passenger Facility Charge Program Logan International Airport - - PowerPoint PPT Presentation

Jan 10, 2023 320 likes •700 views

14 C.F.R. Part 158 Passenger Facility Charge Program Logan International Airport Public Notice Summary of Proposed 2019 PFC Application PFC Project Descriptions and Justifications PFC Financial Plan Class of Carriers Excluded

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Passenger Facility Charge Program Logan International Airport Public Notice

14 C.F.R. Part 158

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 Summary of Proposed 2019 PFC Application  PFC Project Descriptions and Justifications  PFC Financial Plan  Class of Carriers Excluded from PFC Collection Requirement  Next Steps

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 New 2019 PFC Application – 19‐12‐C‐00‐BOS

  • Four new “impose and use” projects to collect at the $4.50 PFC level
  • $648.1 million additional collection authority requested as part of new

PFC Application

  • New estimated PFC expiration date: October 1, 2034

 Public comments should be submitted by October 4, 2019 by

regular mail or email at atenaglia@massport.com

 Massport intends to submit the new PFC Application to the FAA in

Fall 2019

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 Application 19‐12‐C‐00‐BOS is Logan’s 12th application for Impose and

Use Authority

  • 1. PFC #55: Resurface North Cargo Apron

$ 2.8M

  • 2. PFC #76: Taxiway C3 Pavement Rehab & New Bypass Taxiway

$ 8.6M

  • 3. PFC #79: Terminal C Optimization & B to C Connector

$ 97.6 M

  • 4. PFC #77: Terminal E Modernization

$539.1M Total $648.1M

Note: Including PFC financing and interest costs. Totals may not add due to rounding.

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(1) Resurface North Cargo Apron ‐ $2.8M

Source: Capital Programs, April 2019

PFC Debt Funded Capital Costs $2.5M PFC Funded Financing & Interest Costs $0.3M Total Expected PFC Costs $2.8M Massport Internal Capital $0.6M AIP Grant $4.4M Total $7.8M Total project costs (excluding financing & interest) $7.5M

Note: Including PFC financing and interest costs. Totals may not add due to rounding.

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 Scope:

  • Design and construction cost to rehabilitate the western portion of the

North Cargo apron

  • Mill and inlay of the top surface to restore the pavement (425,000 SF)
  • Partially funded with an FAA grant ($4.4 million)
  • Project schedule is April 2019 to December 2019

 Justification:

  • Pavement last rehabilitated in 1989 and has been exhibiting cracking,

rutting and signs of fatigue

  • The North Cargo apron serves as the main remain overnight parking

location at Logan and is vital to the Airport’s operation

  • Improves the surface condition and lessens the possibility of foreign object

debris (“FOD”)

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(1) Resurface North Cargo Apron ‐ $2.8M

Note: Including PFC financing and interest costs

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(2) Taxiway C3 Pavement Rehab & New Bypass Taxiway ‐ $8.6M

Source: Capital Programs, April 2019 Note: Including PFC financing and interest costs

PFC Debt Funded Capital Costs $7.5M PFC Funded Financing & Interest Costs $1.1M Total $8.6M Total project costs (excluding financing & interest) $7.5M

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 Scope:

  • Rehabilitate (i) the section of Taxiway C between Taxiway M and the edge
  • f, but not including, Runway 4R‐22L, and (ii) the section east of, but not

including, Runway 9‐27 up to the edge of, but not including, Runway 33L

  • Construct a new stub taxiway with 67,000 sqft. pavement added to the

airfield (Taxiway C1) extending from Taxiway C and connecting onto the edge of but not including Runway 33L

  • Project schedule is August 2017 to July 2019

 Justification:

  • Rehabilitated Taxiway C portions were last repaired in 1994
  • Rehabilitation improves pavement and lessens FOD possibility due to

below 70 Pavement Condition Index (“PCI”). Prior to this project, the PCI was less than 70.

  • Taxiway C1 construction was at the request of FAA air traffic controllers

and airlines

  • Taxiway C1 adding a reliever stub taxiway connector enhances the

Airport’s capacity and operational efficiency

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(2) Taxiway C3 Pavement Rehab & New Bypass Taxiway ‐ $8.6M

Note: Including PFC financing and interest costs

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Exterior Exterior

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(3) Terminal C Optimization & B to C Connector ‐ $97.6M

Source: Capital Programs, April 2019 New and Renovated Area New and Renovated Area Note: Including PFC financing and interest costs

PFC Debt Funded Capital Costs $40.3M PFC Funded Financing & Interest Costs $57.3M Total Expected PFC Costs $97.6M Massport Revenue Bonds $104.7M Massport Internal Capital $48.0M Total $250.3M Total project costs (excluding financing & interest) $193.0M

New gate

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 Scope:

  • Consolidate checkpoint and expand concourse
  • Connect corridor from Gates C40, C41, and C42 to Main Terminal C Pier C

and Terminal C Pier D to Terminal B Pier A

  • Right‐size holdrooms (adding 13,309 SF)
  • Project schedule is August 2019 to November 2021

 Justification:

  • Improve security checkpoint capacity for all Terminal C gates with a new

centralized checkpoint and an additional standard security screening lane plus five (5) modernized Automated Screening Lanes (“ASL”)

  • Provide direct access post‐security and increase interconnectivity across

Logan’s terminals by connecting Terminal B with Terminal C and within Terminal C. Eliminates rescreening of connecting passengers

  • Holdroom usability enhanced with ability to accommodate larger aircraft

and more passengers. Improves and expands capacity and comfort – this project increases and renovates holdroom space in the amount of 13,309 SF and 8,299 SF, respectively

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(3) Terminal C Optimization & B to C Connector ‐ $97.6M

Note: Including PFC financing and interest costs

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Source: Fennick McCredie Architecture, April 2019

Level 1 – Arrivals

(3) Terminal C Optimization & B to C Connector ‐ $97.6M

Note: Including PFC financing and interest costs

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Source: Fennick McCredie Architechture, April 2019

(3) Terminal C Optimization & B to C Connector ‐ $97.6M

Note: Including PFC financing and interest costs

Level 2 – Departures

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Source: Fennick McCredie Architechture, April 2019

Level 3 – Roof area Level 4

(3) Terminal C Optimization & B to C Connector ‐ $97.6M

Note: Including PFC financing and interest costs

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(4) Terminal E Modernization ‐ $539.1M

Exterior Exterior Cross section Cross section Central Hall connecting Concession/Retail to Holdroom Central Hall connecting Concession/Retail to Holdroom Sources: Capital Programs, April 2019 Note: Including PFC financing and interest costs

PFC Debt Funded Capital Costs $222.6M PFC Funded Financing & Interest Costs $316.5M Total Expected PFC Costs $539.1M Massport Revenue Bonds $457.3M Massport Internal Capital $0.1M Total $996.5M Total project costs (excluding financing & interest) $680.0M

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 Scope

  • Seven new gates
  • New security checkpoint (adding 19,023 SF) and upgraded CBP space
  • Optimized ticketing hall, additional baggage carousels (adding 34,918 SF) and

reconfiguration of the baggage claim hall

  • New holdroom spaces for new gates (adding 54,164 SF)
  • Additional vertical circulation (adding 23,976 SF)
  • New concession areas and airline club spaces (not PFC funded)
  • Project schedule is May 2019 to March 2023

 Justification:

  • International traffic has increased significantly at Logan (growth of 19.0%, 9.3%

and 5.3% in calendar years 2016, 2017 and 2018, respectively)

  • Combines new construction, renovations, and upgrades to the existing terminal to

create a unified terminal building in terms of passenger experience, terminal

  • perations and facilities
  • New gates support increasing passenger volume (particularly international)
  • Increases passenger security screening capacity by adding six (6) ASLs
  • Provides for more flexibility in aircraft that can be accommodated and will

increase gate processing at Terminal E

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(4) Terminal E Modernization ‐ $539.1M

Note: Including PFC financing and interest costs

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Source: AECOM, April 2019

Level 1 – Arrivals/Apron

(4) Terminal E Modernization ‐ $539.1M

Note: Including PFC financing and interest costs

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Level 2 – CBP

(4) Terminal E Modernization ‐ $539.1M

Source: AECOM, April 2019 Note: Including PFC financing and interest costs

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Level 3 – Departures

(4) Terminal E Modernization ‐ $539.1M

Source: AECOM, April 2019 Note: Including PFC financing and interest costs

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Level 4 – Club

(4) Terminal E Modernization ‐ $539.1M

Source: AECOM, April 2019 Note: Including PFC financing and interest costs

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(All figures in '000, except rates) Allocation Amounts Terminal B Terminal C Airfield Other Project funding PFCs (excluding financing cost) 40,316 $ 5,878 $ 34,438 $ ‐ $ ‐ $ Massport capital 19,637 115,047 10,000 8,000 GARBs 104,693 I&E and/or MR Funds 47,991 Total cost (excl. financing) 193,000 $ 25,516 $ 149,484 $ 10,000 $ 8,000 $ Annual capital charge for Massport capital funded portion (a) 12,994 $ 1,671 $ 9,791 $ 851 $ 681 $ Incremental M&O expenses (b) 859 257 602 ‐ ‐ Maintenance Reserve Fund recovery fee (c) 403 58.8 344.4 ‐ ‐ Total incremental annual costs in rate base 14,256 $ 1,987 $ 10,737 $ 851 $ 681 $ Units for rate calculations (in '000) (d) Existing rentable space (s.f.) 386 317 New build rentable space (s.f.) 9 28 395 345 25,754 rentable s.f. rentable s.f. thousand lbs Incremental airline cost per unit: 5.03 $ 31.09 $ 0.033 $ rate per s.f. rate per s.f. per '000 lbs

(a) Allocated based on share of Massport capital applied to project elements (net of PFCs). (b) Equals $13 per sq. ft. for new build space (77,575 s.f.) (c) Equals 1% of PFC‐financed capital cost. (d) Estimated additional square feet for the Terminal C Optimization and Terminal B to C Connector project is 77,575, of which 37,483 s.f. is estimated to be rented. Estimated rental space in Terminal B reflects existing FY19 Rates and Charges rentable square feet of 386,135 plus an estimated 9,161 rentable square feet added by the new project. Estimated rental space in Terminal C reflects existing FY19 Rates and Charges rentable square feet of 317,096 plus an estimated 28,322 rentable square feet added by the new project. FY 2019 budget landed weight used for landing fee calculation.

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(All figures in '000, except rates)

(a) Equals 1% of PFC‐financed capital cost. (b) Estimated space reflects existing FY19 Rates and Charges square feet of 709,082 s.f. plus an estimated 394,673 s.f. of new space added by the new project.

Units: Airfield (FY19 budget landed weight, '000 pounds) 25,754 Terminal E ('000 gross sq. ft.) ‐ after project (b) 1,104 Terminal E passengers (FY 2024, '000) Inbound international (FIS clearance) 3,102 Outbound international 2,395 Total passengers 5,496 Common check‐in passengers 2,129 Incremental fees and charges Incremental Terminal E sq. ft. rates Type I space (per sq. ft.) $22.74 Type II space (per sq. ft.) 22.74 Type III space (per sq. ft.) 22.74 Incremental Terminal E passenger fees International Inbound Fee $6.95 Outbound Passenger Fee 4.27 Inbound Domestic Passenger Fee 6.95 Check‐in Fee 4.03 Incremental landing fee per '000 pounds $0.176 Amount Project funding PFCs (excluding financing cost) 222,616 $ Massport capital GARBs 457,315 I&E and/or MR Funds 69 Total cost (excl. financing) 680,000 $ Incremental Terminal E cost base Annual capital charge for Massport share 41,536 $ Incremental M&O expenses 4,000 Maintenance Reserve Fund recovery fee (a) 2,226 Total incremental annual costs in airline rate base 47,762 $ Allocation to: Airfield 4,541 Terminal E 43,221 47,762 $

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(b) Equals 1% of PFC‐financed capital cost. (a) Incremental M&O expenses are expected to be minimal, and would be identical under any form of financing. (c) Budgeted scheduled airline landed weight for FY 2019.

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 Massport excludes Non‐Scheduled/On‐Demand carriers from the

requirement to collect a PFC

 High administrative burden of collecting PFCs from this class  In CY 2017, enplaned less than two‐hundredths of 1% of total

enplanements at Logan Airport

 Exclusion approved by FAA in prior PFC Final Agency Decisions

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Non‐scheduled/On‐demand Carrier CY 2017 enplanements Aero Jet Services LLC 53 Corporate Flight Alternatives, Inc. 15 Crow Executive Air, Inc. 7 East Coast Jets, Inc. 48 Meridian Air Group, Inc. 1 Priester Aviation LLC 12 Reliant Air Charter, Inc. 32 Ultimate Jetcharters LLC 94 Total 262

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 Add 4 new projects at the $4.50 level, authorizing $648,118,109 in

additional PFC “Impose and Use” collection authority

 Increase total authorized PFC impose and use collection amount

  • From $1.8 billion to $2.5 billion

 Extend PFC charge expiration date

  • To October 1, 2034

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Note: Including PFC financing and interest costs

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 Provide public comments to Massport by Friday, October 4, 2019

  • E‐mail submittals are acceptable (atenaglia@massport.com)

 Massport intends to submit the new PFC Application to the FAA

during the Fall 2019

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(a) Initiation and expiration dates as noted in the respective FAA Final Agency Decisions. Note: Impose and Use authority totals for each PFC Application do not reflect the impact of any proposed amendments that the Authority may request in the future, or any expected future PFC Applications beyond the 2019 PFC Application.

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 PFC program initiated in 1993  Approved to collect a $4.50 PFC

  • Since October 2005

 $1.8 billion in current PFC authorization*

  • As of June 30, 2019 $1.3 billion collected

 All current PFC projects are approved for both a “Impose” and “Use”

authority

 Approved for PFC use on both a pay‐as‐you‐go basis and leveraged

with debt

 Current estimated PFC expiration date: December 1, 2027

  • Before adding the 2019 PFC Application, and assuming the PFC initiation

and expiration dates reflected in the FAA Final Agency Decisions

* Including PFC financing and interest costs

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Initiation Expiration PFC Application # date date 10-06-C-00-BOS (a) 6/1/15 10/1/22 13-08-C-00-BOS 10/1/22 5/1/23 14-09-C-00-BOS 5/1/23 10/1/24 15-10-C-00-BOS 10/1/24 2/1/26 18-10-C-01-BOS 2/1/26 12/1/27 New 2019 Application 12/1/27 10/1/34 (a) Currently collecting PFCs under 10-06-C-00-BOS approvals.

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 Dates as acknowledged by FAA in Record of Decision letter dated

12/20/18

 Actual dates will vary depending on Logan passenger trends and percent

  • f passengers paying a PFC
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 Two forms of PFC funding

  • Pay‐as‐you‐go
  • Leveraging

 Two types of PFC leveraging

  • Commercial Paper (CP) interim source
  • Future PFC‐related bonds to be issued as Massport GARBs – direct

debt service offset

 Stand‐alone PFC Bonds previously issued were fully paid off in July

2017

Note: Massport reserves the right to modify its PFC Financial Plan in the future as needed to respond to changing conditions

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 Commercial Paper

  • CP issued as needed to fund PFC project costs
  • Legal pledge is Authority Net Revenues (not PFCs), but PFCs are the

source of interest and principal payments

  • Interest is paid from PFC Revenues
  • CP principal to be paid down with PFC Revenues when available

 Massport GARBs repaid with PFC Revenue

  • Bonds issued as needed to fund PFC project costs
  • Massport is proposing to fund $262.9 million PFC project costs in its

new 2019 PFC Application with debt in the form of Massport GARBs repaid with PFC Revenue. ($40.3M for Terminal C Optimization & B to C Connector project and $222.6M for Terminal E Modernization project)

  • In advance of the planned bond issuance, Massport may use PFC

related CP as an interim financing mechanism

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 PFC‐related Bonds

  • Annual interest rate of 6.0%
  • Bond term: 30 years
  • Massport GARBs with a direct debt service offset
  • Estimated issuance date: Summer 2020, Summer 2021 and Summer

2023

 PFC‐related Commercial Paper

  • Average annual interest rate of 3.5%
  • Average term outstanding: 4 years

 Massport may investigate alternative debt financing mechanisms  Massport will strive to minimize financing and interest costs

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PFC PLEDGED REVENUE FUND Debt service on GARBs repaid with PFC revenues under direct debt service offset structure Interest payments on PFC‐ related Commercial Paper PFC project costs pay‐as‐you‐go PFC‐related Commercial Paper principal repayment PFC Collections: $4.50 per Enplaned Passenger