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A Guidebook for Airport-Airline Consortiums (2014)

Chapter: Chapter 9 - Existing Consortiums

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Page 44
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
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Page 44
Page 45
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
×
Page 45
Page 46
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
×
Page 46
Page 47
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
×
Page 47
Page 48
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
×
Page 48
Page 49
Suggested Citation:"Chapter 9 - Existing Consortiums." National Academies of Sciences, Engineering, and Medicine. 2014. A Guidebook for Airport-Airline Consortiums. Washington, DC: The National Academies Press. doi: 10.17226/22319.
×
Page 49

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44 Research was conducted to develop basic data for all existing consortiums in the United States including acronym, name, location, size of airport by number of enplanements, consortium man- agement structure, consortium scope of services, annual operating budget, and form of business entity. Research methodology included a review of internal records, secretary of state databases and existing literature. Information gathering was also conducted through interviews and exchanges with representatives of various airlines, consortium operators, and the Airlines for America (A4A) (formerly Air Transport Association) trade organization. The number of enplaned passengers reported for each airport was acquired from a Federal Aviation Administration (FAA) website titled “Passenger Boarding (Enplanements) and All-Cargo Data for U.S. Airports.” Calendar year 2012 enplanements were used. ACRP Synthesis 31 found that consortiums may be categorized based upon their primary scope of responsibilities. The categories applied in that synthesis were Terminal Consortiums, Equipment Consortiums, Fuel Consortiums, and Other Consortiums. This report considers these same categories. Thirty-nine consortiums were found to be active in the United States. These consortiums are categorized in Table 2. Terminal Consortiums Terminal Consortiums are those that have significant operation and maintenance responsi- bility for an airport terminal or a large portion of an airport terminal facility. The basic data for the two terminal consortiums is provided in Table 3. The LAX TWO consortium was included in prior analyses as a Terminal Consortium. How- ever, since the departure of Northwest Airlines from the LAX TWO consortium (as a result of its merger with Delta Air Lines), the responsibility of terminal operations has been taken over by the City of Los Angeles. Further, the functional responsibilities of LAX TWO were re-assigned by the City of Los Angeles to the Tom Bradley International Terminal Equipment Company (TBITEC) consortium effective July 1, 2013. As a result, the LAX TWO consortium is no longer operating and is not included in this report. The South Terminal Corporation (STC) consortium was previously identified in some reports as an airline consortium at Logan International Airport (BOS). The STC was implemented at BOS to maintain a portion of Terminal B. However, the airport received complaints regarding the performance of the STC in public areas of the airport. As a result, the scope assigned to the C H A P T E R 9 Existing Consortiums

Existing Consortiums 45 STC was greatly reduced and the STC now provides limited functions to a single airline. There- fore, the STC is not included in this report. Equipment Consortiums Equipment Consortiums generally have maintenance and operations responsibility for equip- ment that is directly related to the operations of the airlines jointly using a particular airport terminal facility. Primary examples of airline equipment include inbound and outbound bag- gage handling systems, checked baggage inspection systems, passenger boarding bridges, and ancillary gate systems such as ground power, potable water, and pre-conditioned air. However, Equipment Consortiums may also have other maintenance responsibilities including custodial, common use electronic equipment, ramp cleaning, maintenance, and so forth. The basic data for the nine equipment consortiums is provided in Table 4. The LAX TWO consortium was included in prior lists as an Equipment Consortium. How- ever, the functional responsibilities of LAX TWO were re-assigned by the City of Los Angeles to the Tom Bradley International Terminal Equipment Company (TBITEC) consortium effective July 1, 2013. As a result, the LAX TWO consortium is no longer operating and is not included in this report. Terminal Consortiums 2 Equipment Consortiums 9 Fuel Consortiums 25 Other Consortiums 3 Total 39 Table 2. Number of consortiums by category. Airport Annual Consortium Form of Acronym Name Location Enplanements Scope of Services Budget Management Operating (Millions) (millions) Structure Entity 1 AATC Atlanta Airlines Terminal Corporation ATL 45.2 Maintenance and operation of the Central Passenger Terminal Complex including custodial, maintenance and engineering services for the terminal, concourses and ramp areas. Maintenance and operation of baggage handling system, passenger boarding bridges, GSE equipment, deicing storage facilities, employee parking and utilities. $65.1 Consortium Employees Corporation 2 TOGA Terminal One Group Association, L.P. JFK 17.1 Maintenance and operation of JFK Terminal One facilities including custodial, maintenance and engineering services for the terminal, concourses and ramp areas. Maintenance and operation of baggage handling system, passenger boarding bridges, GSE equipment, hydrant fueling storage & hydrant distribution, deicing storage facilities, and electronic systems infrastructure. Management of wheelchair and skycap services, retail concessions, food & beverage and advertising. $115.0 Operator Limited Partnership TERMINAL CONSORTIUMS Table 3. Terminal consortiums: basic data.

46 A Guidebook for Airport-Airline Consortiums Airport Annual Consortium Form of Acronym Name Location Enplanements Scope of Services Budget Management Operating (Millions) (millions) Structure Entity 1 CICA TEC CICA Terminal Equipment Consortium ORD 30.0 Maintenance and operation of International Terminal airline equipment, including baggage handling system, passenger boarding bridges, GSE equipment, hydrant fueling system, MUFIDS and CUTE equipment. Management of wheelchairs, skycap, baggage handling and common gate assignment services. $26.3 Operator Corporation 2 DANTeC Detroit Airlines North Terminal Consortium DTW 15.4 Maintenance and operation of North Terminal airline equipment including baggage handling system, passenger boarding bridges, GSE equipment, LAN network, CUTE, MUFIDS, building automation and elevator/escalator systems. Management of wheelchair, common gate management, ramp control and custodial services. $6.6 Operator Corporation 3 LAX6 LAX6 Consortium, LLC LAX 25.0 Maintenance and operation of LAX 6 airline equipment, including baggage handling system, passenger boarding bridges, CUTE and GSE equipment. Management of common gate assignment, custodial and exit hall security services. $4.9 Operator Limited Liability Company 4 MATCO Midway Airlines' Terminal Consortium MDW 9.3 Maintenance and operation of airline equipment, including baggage handling system, passenger boarding bridges, GSE equipment, fuel storage & hydrant distribution and FIDS/BIDS systems. Management of wheelchair, common gate management and FIS facility services. $9.4 Operator Corporation 5 ONT-TEC Ontario International Airport Terminal & Equipment Company, LLC ONT 2.1 Maintenance and operation of airline equipment, including baggage handling system, passenger boarding bridges and GSE equipment systems. Management of public and airline premise custodial services. $4.7 Operator Limited Liability Company 6 PAC Portland Airlines' Consortium, LLC PDX 7.1 Operation of baggage handling system, and management of airline premise custodial services. $2.0 Operator Limited Liability Company 7 SAAC San Antonio Airlines Consortium SAT 3.9 Maintenance and operation of airline equipment, including baggage handling system, passenger boarding bridges and GSE equipment systems. Management of public and airline premise custodial services. $3.0 Operator Corporation 8 SFOTEC San Francisco Terminal Equipment Company, LLC SFO 18.6 Maintenance and operation of International Terminal airline equipment including baggage handling system, passenger boarding bridges, GSE equipment, CUTE and MUFIDS systems. Management of wheelchair, common gate management and ramp control services. $10.0 Operator Limited Liability Company 9 TBITEC Tom Bradley International Terminal Equipment Company LAX 25.0 Maintenance and operation of LAX Tom Bradley International Terminal airline equipment, including baggage handling system, passenger boarding bridges, and GSE equipment. Management of wheelchair and public custodial services. $28.7 Operator Corporation EQUIPMENT CONSORTIUMS Table 4. Equipment consortiums: basic data.

Existing Consortiums 47 Ontario International Airport Terminal & Equipment Company, LLC (ONT-TEC) is a new consortium that began operations at ONT on July 1, 2013. The LAX Terminal Equity Corporation (LAXTEC) consortium was formerly included in prior reports as an Equipment Consortium. During 2011, LAXTEC changed its name to the Tom Bradley International Terminal Equipment Company (TBITEC). Also, on July 1, 2013, TBITEC expanded its functional responsibilities from the Tom Bradley International Terminal to include Terminal 2 at LAX. It can be noted that the Detroit Airlines North Terminal Consortium (DANTeC) and the San Antonio Airlines Consortium (SAAC) are the only consortiums known to have direct, although limited, airport involvement in the governance of the consortium and could, therefore, be defined as “airport-airline consortiums.” Please see Chapter 4, Business Entity Selection, for additional details of this arrangement. Fuel Consortiums Fuel Consortiums are those that have the primary responsibility of operating and maintaining aviation fuel systems. Primary examples of aviation fuel systems include fuel receiving equip- ment and facilities, fuel storage equipment and facilities, fuel distribution equipment and facili- ties, and fuel dispensing equipment and facilities. Aviation fuel control and monitoring systems may also be included. The basic data for the 25 fuel consortiums is provided in Table 5. Other Consortiums Other Consortiums are those that cannot be included in any of the other consortium catego- ries, since their scope is unrelated to responsibilities for the operation and maintenance of an airport terminal, airline equipment, or an aviation fuel system. The basic data for the three other consortiums is provided in Table 6. The Airlines Committee of Hawaii (ACH) consortium was originally formed to provide con- solidated and common representation for the airlines operating in Hawaii. Recently, the State allowed the ACH to commonly manage the state selected operation and maintenance contractor for the outbound baggage handling systems located at Honolulu and Kahului airports. However, documents that will serve to formalize these responsibilities are currently under negotiation. When these documents are complete, the ACH may be considered an Equipment Consortium.

Airport Annual Consortium Form of Acronym Name Location Enplanements Scope of Services Budget Management Operating (Millions) (millions) Structure Entity 1 ANCF Anchorage Fueling and Service Company ANC 2.2 Fuel system operation & maintenance $31.0 Operator Corporation 2 ATLECON ATLECON Fuel Corporation ATL 45.2 Fuel system operation & maintenance $2.9 Operator Corporation 3 BOSFUEL BOSFUEL Corporation BOS 12.9 Fuel system operation & maintenance $23.2 Operator Corporation 4 N/A Ft. Lauderdale Fuel Facilities LLC FLL 10.6 Fuel system operation & maintenance $2.9 Operator Limited Liability Company 5 HFFC Hawaii Fueling Facilities Corporation HNL ITO KOA 8.0 0.6 1.3 Fuel system operation & maintenance $12.9 Operator Corporation 6 N/A Hookers Point Fuel Facilities LLC HPT N/A Marine terminal aviation fuel receiving and storage $10.7 Operator Limited Liability Company 7 IADF IAD Fuels LLC IAD 9.1 Fuel system operation & maintenance $14.8 Operator Limited Liability Company 8 N/A Indianapolis Fuel Facilities LLC IND 3.6 Fuel system operation & maintenance $3.8 Operator Limited Liability Company 9 LASFUEL LASFUEL Corporation LAS 18.5 Fuel system operation & maintenance $10.0 Operator Corporation 10 LAXFUEL LAXFUEL Corporation LAX 25.0 Fuel system operation & maintenance $41.0 Operator Corporation 11 MEMFUEL MEMFUEL LLC MEM 3.4 Fuel system operation & maintenance To Be Determined Operator Limited Liability Company 12 N/A MCI Fuel Company LLC MCI 4.9 Fuel system operation & maintenance $1.6 Operator Limited Liability Company 13 OFFC Oakland Fuel Facilities Corporation OAK 4.9 Fuel system operation & maintenance $9.0 Operator Corporation 14 ONT ONTFUEL Corporation ONT 2.1 Fuel system operation & maintenance $2.0 Operator Corporation 15 MCO Orlando Fuel Facilities LLC MCO 15.6 Fuel system operation & maintenance $4.9 Operator Limited Liability Company 16 PFFC Portland Fueling Facilities Corporation PDX 7.1 Fuel system operation & maintenance $1.9 Operator Corporation 17 PFC PHL Fuel Facilities, LLC PHL 14.4 Fuel system operation & maintenance $3.9 Operator Limited Liability Company 18 AFFC Arizona Fueling Facilities Corporation PHX 19.2 Fuel system operation & maintenance $9.2 Operator Corporation 19 N/A PVD Fuel Facilities LLC PVD 1.8 Fuel system operation & maintenance $1.3 Operator Limited Liability Company 20 RFFC Reno Fueling Facilities Corporation RNO 1.7 Fuel system operation & maintenance $2.8 Operator Corporation 21 RSW RSW Fuel Company, LLC RSW 3.5 Fuel system operation & maintenance $3.2 Operator Limited Liability Company 22 SEA FUEL SeaTac Fuel Facilities, LLC SEA 15.5 Fuel system operation & maintenance $12.7 Operator Limited Liability Company 23 SFO FUEL SFO Fuel Company LLC SFO 18.6 Fuel system operation & maintenance $8.0 Operator Limited Liability Company 24 SJFC SJC Fuel Company LLC SJC 4.0 Fuel system operation & maintenance $7.3 Operator Limited Liability Company 25 N/A SNAFUEL Inc. SNA 4.3 Fuel system operation & maintenance $2.1 Operator Corporation FUEL CONSORTIUMS Table 5. Fuel consortiums: basic data.

Existing Consortiums 49 Airport Annual Consortium Form of Acronym Name Location Enplanements Scope of Services Budget Management Operating (Millions) (millions) Structure Entity 1 ACH Airlines Committee of Hawaii HNL 8.0 Airline Representation, Management of baggage handling systems operations and maintenance in HNL and OGG, SITA $3.0 Operator Corporation 2 DENCO Denver Consortium, LLC DEN 25.5 De-Icing material procurement >$0.1 Operator Limited Liability Company 3 LAXSUL LAX Shared Use Lounge Company, LLC LAX 25.0 Shared Use VIP Lounge development, operation & maintenance at LAX TBIT $5.0 Operator Limited Liability Company OTHER CONSORTIUMS Table 6. Other consortiums: basic data.

Next: Chapter 10 - Consortium Success Metrics »
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TRB’s Airport Cooperative Research Program (ACRP) Report 111: A Guidebook for Airport-Airline Consortiums provides decision-making guidance for airport operators and airline representatives who are responsible for agreements related to facilities, equipment, systems, and services and who may be interested in evaluating, advocating, or forming consortiums to provide needed services.

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