Policy and Planning Issues Roadmap Report (2019)

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Policy and Planning Issues Roadmap Report 8 The strategic themes, issues, and research topics investigated by Steer can be found in the following section. 3.1 Landside Connectivity Airport growth has changed over the last decade. Today with the increase in traffic, up gauging by many airlines, and consolidation into airport hubs and gateways, passenger-sensitive infrastructure, including terminals and especially landside connectivity, are challenging traditional conceptions of airport planning. Airport access, for example, is becoming a more acute challenge for many facilities – particularly airports with land constraints, like those close to large metropolitan centers, or those bordering water. Often these airports also find it challenging to integrate with larger regional transportation systems as these too face congestion and limited infrastructure. In these regions, any capacity development may be prohibitively expensive for the benefits delivered. Overarching Landside Challenge What is the future of master planning for ground transportation? Recent developments in changing mode shares and aviation growth have caused significant disruptions to airport ground transportation, including roadways and curbs. Airports need to be nimble and ready to adapt to market shifts. Master plans provide a strategic framework; however, their relevance for fast changing market shifts may be limited. Creative ways should be found to adapt and retain the relevancy of master plans. Given these changes, what are other appropriate frameworks for comprehensively setting strategic direction for ground transportation? Issues and Research Ideas Inventory For ground transportation, airport connectivity issues can broadly be classified into and their research topics. A table of these different issues and research topics can be found in Appendix C, Section 1. Issue 1: On-Airport Ground Transportation Management • Moving people around the airport campus (finding better ways to stage passengers and move them around the airport) – Airport People Movers (APMs) – Remove vehicles from airport roadways, helps with road and curb capacity 3 Strategic Themes

Policy and Planning Issues Roadmap Report 9 – Transportation Centers/Remote Terminals/Auxiliary Curbs (shift some ground transportation demand to other locations—can include ticketing, baggage screening and other functions. Possibility of co-locating with consolidated rental car centers and transit stations) • Landside Operations Control (better operating existing infrastructure) – Operational staffing (how best to manage roadways and curbs and direct vehicle movements as well as sending parking to the “right” areas) – Use of technologies, including directional signage and “vectoring” (spot anomalies on roadways); that allow operations staff to address challenges through proactive response efforts – Cooperation with other local and regional transportation agencies (how airport modes “plug-into” local transit, roadways and gateways, i.e., tunnels and bridges) Issue 2: First to Last Mile Strategies – Managing How Customers Reach the Airport • Mode Share Trends, including recent developments of TNCs, ridesharing and future of Connected Autonomous Vehicles (CAVs) – Challenges of forecasting future airport access modal splits – How can airports channel demand into more sustainable modes – for congestion, environment, modes consistent with local concerns (for example, the majority of TNC and pick-up and drop-off journeys to airports have four total trips whereas parkers make two trips to the airport) – What is the timeframe for the use of autonomous vehicles at airports (five to 10 years?) • Gateway constraints (i.e., tunnels, bridges, rails) – High Occupancy Vehicle (HOV) strategies – Decreasing single-person vehicle traffic and TNCs to help decongest gateways – Congestion Management – Alleviating congestion in the tunnels and on the bridges close to airports – Transportation Demand Management (TDM) – how can TDM help reduce congestion during construction and timing of ground “arrivals and departures” • Multi-jurisdictional surface transportation governance (what are the optimal ways airports should work with local and regional jurisdictions?)—note overlaps with Governance and Community Engagement below. – Multi-Modal/regional connectivity was cited in the Thought Leaders Forum as a topic of interest Issue 3: Parking Planning and Inventory Management • Capacity Planning – Uncertainty of forecasting future parking demand—how much do we need given drops in user demand, growth of TNCs and alternatives? – Hedging bets by building parking garages for multi-purposes (i.e., higher ceilings for offices, private vehicle pick-up/drop-off curbs and associated waiting areas, passenger ticketing and/or bag claim processing, wider bays for staging TNCs, pick-up and drop-offs) or multiple uses for surface lots • Customer Service Initiatives (provide trip time reliability at congested airports)

Policy and Planning Issues Roadmap Report 10 – Wayfinding, including parking guidance systems that direct parkers to preferred locations, including vacant spots – Reservation Systems that allow pre-booking of spots (web- or app-based), providing better customer service and generating Customer Relationship Management (CRM) data for airport use (i.e., pro-active communications, commercial offers) • Airport Revenue (addressing identified shortfalls in commercial revenue as number of parking transactions decline) – Challenge of off-airport parking operators competing against on-airport parking and providing capacity that land-constrained airports find challenging – Product Development (valet, “park and go” lots, in addition to traditional parking)— nexus with airport operations—pushing additional traffic to the “right” area consistent with congestion mitigation strategies – Parking discounting and yield forecasting (measuring customer willingness to pay and balancing utilization during peak, shoulders, and off-peak times). Goal to increase the per transaction return on parking and optimize facility utilization 3.2 Airside and Terminal Planning Over the last decade, airlines have become efficient at delivering more passengers per operation, with higher load factors, use of larger aircraft, and adding seats to existing aircraft. Even as these measures make hubs and gateways more efficient on the airside, growth in passenger traffic is increasing the challenges for airport planning and related policy issues. Issues and Research Ideas Inventory Airside and terminal planning issues can broadly be classified into the following three issues and their research topics. A table of these different issues and research topics can be found in Appendix C, Section C2. Issue 1: Environmental Impacts – Air Quality, Noise, and the Impact of Climate Change • Environmental Review Process – Aligning airside and terminal planning forecasts with policy foresight, including assessment of long-term policy risk. Examples include what benefits, if any, will improvements in air traffic control operation and technologies provide for airport capacity? How to consider these potential benefits in Purpose and Need statements for environmental impact statements? – Impact of Climate Change on project planning and review (e.g., engineering measures to protect against sea-level rise) • Airports Contribution to and Impact from Environment/Climate Change – Localized and global impact on climate from aviation activity (little airport control) and airport activity (significant airport control)—policies that fall under airport influence, including responsibilities such as ground transportation, power generation and water quality

Policy and Planning Issues Roadmap Report 11 Issue 2: Inclusive Planning with New Business and Policy Developments for Airports • Safety issues raised (may be for other research roadmaps) – Runway incursions – Planning for FAA mandated airfield design modifications to minimize incursion potential (i.e., Runway Incursion Mitigation Program [RIM]) – Foreign Object Debris (FOD) – Systems for detecting, increased operational surveillance – Drones – Uses by airports, including perimeter security and monitoring of wildlife as well as external users and their potential use near airports • Efficient design of the airfield to reduce runway occupancy time thereby increasing capacity • Spaceports operations and Impact of Airports’ Airspace (e.g., Front Range and Denver International Airport) • Safety Management Systems (SMS) and the application of management standards applied to third-party operators/vendors on the airfield (e.g., ground handlers) • Terminal planning with use of technology and shrinking of public areas – Smart building design to maximize space and efficiency in terminals – Use of beacons and other tracking and passenger guidance technologies – Ways to manage changing security and facilitation standards that alter airport space requirements – Connectivity of concourses given changing airline alliances, self-connects (passengers putting together two tickets back-to-back using services such as kiwi.com) – Biometrics and related impacts to airport operations and passenger processes in Check-In, security (premium services such as CLEAR and on-going Transportation Security Administration trials), boarding, and immigration, which was cited in the Thought Leaders Forum – Impact of new technology on airport jobs, identified as a topic of interest in the Thought Leaders Forum – Improved Passenger Amenities – Focus on walking distances and disabled access improvements (especially with ageing of travelers) Issue 3: Evolution of Air Traffic Management • Next steps in NextGen—what additional steps can be implemented? (Review and update previous ACRP studies) • Airport Collaborative Decision Making (A-CDM) – Use of A-CDM to improve operations and maximize capacity for both aircraft operations and passenger flows throughout the airport (build off ACRP Report 137, “Guidebook for Advancing Collaborative Decision Making (CDM) at Airports”). • Increase use of airport hardstands and remote parking positions as gates increasingly constrained (how are these issues managed at airports in Europe, Asia and the U.S.?) • Remote Air Traffic Control Towers and Technologies – Additional safety and Instrument Flight Rules (IFR) capacity for airports – Value to small airports – Use for larger airports, addressing “blind spots,” possibly obviating the need for new air traffic control towers or airport or airline operated ramp towers

Policy and Planning Issues Roadmap Report 12 3.3 Air Service Management Growth and changes in the distribution of traffic continue to challenge airports of all sizes. Some concerns relate to international and national policies (i.e., air service liberalization) and how they could impact airports, and some relate to how airports handle increases in operations and passengers. Background These are research topics that airports have discussed as concerns or where their leaders face uncertainties about the future of the industry. Often, they are cited as challenges where they will have to better understand the issues in order to predict how they will impact their airport (if at all). • International and national policies on air service freedoms (liberalization) – Continuing or easing of restrictions on airline ownership and control policies – Role of global airline alliances and joint ventures (JVs) – Anti-Trust and industry consolidation impacts – Some backlash to unfettered liberalization (i.e., U.S. big three network carriers pushing for government response to Gulf Carriers’ increases in traffic) – International Air Transport Association’s (IATA) Worldwide Scheduling Guidelines (WSG) and applications of rules to airports (Level 2: scheduling coordination, Level 3: slots and capacity allocation) Issues and Research Ideas Inventory Air service management issues can broadly be classified into three issues and their research topics. A table of these different issues and research topics can be found in Appendix C, Section C3. Issue 1: Congestion Management Each of these sub-research topics have been cited by large hub airports that are facing congestion and forecasts that make accommodating all demand more challenging. Which of these are potential strategies and which have proven effective in other settings? • Maximizing the airport’s assets – Off-peak scheduling (i.e., how does an airport facilitate “fill-in” traffic or find ways to incentivize more efficient use of its infrastructure) – Geographic diversity of service (assists with de-peaking—some Latin American services depart overnight) – Rates and Charges options (peak-period pricing/blended operation and weight-based charges allowed at congested airports) – Use of secondary airports in an airport system – Airport’s role in World Scheduling Guidelines (see above)

Policy and Planning Issues Roadmap Report 13 – Use of “declared capacities” in Europe for rates and charges and capacity allocation—are there lessons to be learned for U.S. airports and airlines? Issue 2: Airline Business Models and Their Impacts on Air Service How will airline business models evolve and what effects will changes have on air service? How should these changes impact airport air service strategies (if at all)? For issue such as Part 135 Operators (below), what does the recent experience suggest about their role in providing air service to new or existing markets? • Interlining, JVs • Cargo (new models of smaller all-freight carriers) • Fleet evolution • Pilot shortage • Labor scope clauses • Part 135 Operators (i.e., One Jet) – impact on airports, airlines and the aviation system overall • Self-Connecting Passenger Itineraries/Non-Interlined Connections (e.g., surveys to detect when passengers buy “back to back” tickets and whether or not airports should facilitate the growth of this segment? If so, how?) Issue 3: Air Service to Smaller Markets What are the most important trends to smaller markets (defined here as small hubs or below under the FAA’s hub criteria) for the future of their air service? • Decline of connectivity at small airports and what it means to airport management – Industry consolidation of commercial air carriers – Up gauging of airline fleets – The impacts of the retirement of 50-seat regional aircraft – Incentives, and what value are origin and destination flights to airports that are not hubs? • Essential Air Services (EAS) – what is the future? What airports will it address? 3.4 Airport Business Models The recently enacted FAA reauthorization bill is just the latest indicator of change, encouraging airports to re-examine their business models and utilize new mechanisms to fund and finance capacity as well as to reallocate risk in their management of facilities. In short, especially larger airports are looking more like their global counterparts with public resources constituting a lower proportion of their capital plans – whether direct, through Airport Improvement Program (AIP) funding, or federally authorized local revenues, through PFCs, and a tendency to look toward privatization or P3s models to find revenue, raise capital, and manage and allocate risk. Recent multi-billion transactions at airports serving the Los Angeles and New York markets are the latest indications of that movement but so are smaller “availability payment” or milestone payment P3s (e.g., Paine Field in Washington).

Policy and Planning Issues Roadmap Report 14 Background • Erosion of public airport model • Value of PFC and AIP programs are declining (and will further decline during the 2019-2023) FAA authorization • New sources of airport revenue • Airlines changing schedules and moving in and out of markets more regularly • Airport financial management is shifting more toward a commercial focus • Commercial focus is more market sensitive, leading to consideration of new models of risk sharing Issues and Research Ideas Inventory Airport business issues can broadly be classified into two issues and their associated research topics. A table of these different issues and research topics can be found in Appendix C, Section C4. Issue 1: Airport Financing • Value for Money (VFM) being used to establish the best way to deliver Capital Programs (more common in Canada and Europe)—examines different project delivery and financing models such as Design--Build (DB), privatization, and P3 mechanisms such as Construction Manager at Risk (CAMR) and Design-Build-Finance-Operate and Maintain (DBFOM) • Developing a P3 and financing handbook for airports and/or boards/stakeholders, with lessons learned from other airport systems and other infrastructure classes Issue 2: Airport Management • How are use and lease agreements between airlines and airports evolving? (shorter terms, more compensatory use and lease agreements and sometimes operating without a lease through rate-setting by ordinance) • Fixed-Based Operator (FBO) Management – Increase of scrutiny by GA users of airport pricing and access – Handbook of new models of management (proprietor, contract, or multiple FBOs, all within regulatory authorities) – Opportunity for airports to use their proprietor exemption to exclusively operate FBOs (i.e., Greenville–Spartanburg International Airport) • Flow Management – Aligning ground transportation, terminal and airfield constraints (supply) with customer (passenger and airline) movements – Identifying bottlenecks to allow for seamless movement of passengers and future growth – Should airports exercise more innovative pricing and incentives to improve management of terminals, including gates, and ground transportation movements (given tighter airfield regulation)? • Emerging technology and potential impacts on revenue [remote ATCs, Unmanned Aircraft Systems (UAS), wayfinding apps, BIM, etc.].

Policy and Planning Issues Roadmap Report 15 3.5 Governance and Community Engagement P3s and shifts in management approaches have the potential to significantly change how airports engage their communities – and change the way surrounding communities engage with the airport. While the Steer team recognizes a study (ACRP 01-42 “Guidance for Evaluating Airport Governance Structures”) will update the distribution of governance structures for U.S. airports, there are significant new developments within the policy and planning realm on this strategic theme. Issues and Research Ideas Inventory Airport governance and community engagement issues can broadly be classified into three issues, together with their associated research topics. A table of these different issues and research topics can be found in Appendix C, Section C5. Issue 1: Airports Are Increasingly Facing Multi-Jurisdictional Issues • With changes in ground transportation (see Topic 1 above) airports are being pushed into leading and participating in regional transportation planning and operations. • What are the right methods for facilitating intergovernmental cooperation spanning multiple jurisdictions? • What are the regulatory limitations relevant to airports contributing to off-airport projects that connect passengers to the airport? • How can airports reduce the externalities (i.e., congestion and pollution) from ground transportation? Issue 2: The Impact of Increasing Commercialization on Airport Governance • Similar in some ways to long term leases and bond indentures, P3s potentially tie up assets for two to three decades or more, removing control and perceptions of control from local and regional policymakers (especially in airports operated with boards that are traditionally more political) and for succeeding airport managers. How should these issues be managed? • In what ways might these developments shift the ways in which airports work with neighboring jurisdictions and communities? Issue 3: Community Relations • How are community expectations changing as airports grow and commercialize? • How are methods of engagement shifting? How should they shift? • Do the perceived value and economic impacts of the airport change with private operation and the use of P3s? How are these handled and measured in the U.S. and abroad? • How does the community’s role change, if at all, as airports and parts of airports are shifted from public to private management? • How are passenger amenities protected when an airport assigns management and operations of a facility to a third party (P3s)?