National Academies Press: OpenBook

The Future of Airport Finance (2024)

Chapter: Research Ideas

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Page 37
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
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Research Ideas

Ideas for ACRP research projects were discussed by participants throughout the 2-day event in panel discussions, during breaks, and in the breakout sessions. These research ideas are not complete problem statements, nor are they formally endorsed by the Insight Event Project Panel. Rather, they are ideas for research raised during the Insight Event and summarized in this section, organized by theme.

Managing in an Uncertain Environment

Idea 1: Forecast and management scenarios. Given these dynamic times and economic uncertainties, airport management would be advised to consider different approaches to forecasting sensitivities and financial scenarios.

Enhancing Revenue Generation

Idea 2: Rates and charges at general aviation airports. Airport managers are considering fees for landing and for using airport services, as well as different methods of collection. These ideas expand on traditional methods such as fuel flowage fees. New technologies are enabling cost-effective approaches.

Idea 3: Access charges for airport roadways and curbs. With the postpandemic recovery and the increase in commercial airline passengers per operation, airports are considering measures to allocate scarce landside capacity by pricing. This practice is commonplace in other parts of the world, such as the United Kingdom, Europe, and Australia. What technologies are they using? What are the best practices?

Idea 4: New revenue opportunities for airports. With available land and resources, as well as their proximity to airside infrastructure, airport management has recently been exploring partnerships on land development, cargo facilities, AAM, and other opportunities. What are the best practices in making airports land pad ready or development ready to encourage revenue generation?

Developing Innovative Business Models

Idea 5: Proprietor management under common use. While common use of terminal resources such as gates has grown in recent years at larger airports, it is now more prevalent at smaller, destination airports. What are airport management’s responsibilities under common use? What type of gate management systems make sense on a smaller scale? How are airports of various sizes managing today?

Idea 6: Rental car business models. What are alternatives to customer facility charges on rental cars? Given that transactions are down 25 percent to 30 percent, the

Page 38
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
×

daily charges imposed to fund rental car operations are increasingly under pressure. In addition, does privatizing or outsourcing rental car ownership and operations make sense for airports?

Funding Capital Programs

Idea 7: Long-term financing of airport assets. Given the expense and useful life of airport assets, airport management is exploring longer-term financing vehicles (more than 30 years, which is the typical period for an airport bond). The role of TIFIA/Build America Bonds as well as state and federal infrastructure banks could be part of this too.

Idea 8: Innovative state airport support programs. Airports are increasingly working with state policymakers to obtain support for airport capital programs, given the economic impact airports have in their surrounding regions. These go beyond distributing the proceeds from state fuel taxes to include general appropriation support.

Implementing Cost- and Time-Saving Strategies

Idea 9: Modular construction. DFW and other airports have employed innovative building methods to reduce the cost and time for new construction. What lessons learned are there for airports? Under what conditions are these practices appropriate?

Addressing Airport Workforce and Organizational Challenges

Idea 10: Workforce and organization. What future workforce models make sense, given the labor shortage, economic uncertainties, and airport challenges? Specifically, insourcing, outsourcing, and the role of technologies in responding to these challenges should be considered. The labor models employed will have important implications for the design of airport organizations. This topic could be the subject of a future Insight Event.

Advancing Environmental, Social, and Governance Strategies

Idea 11: Airport–airline partnerships on net-zero goals. What are the areas where airports and airlines can cooperate to reduce emissions toward the 2050 aspirational net-zero goal the industry has agreed to? How would these partnerships vary by airport size and whether an airport serves as an airline connecting hub?

Idea 12: ESG reporting/guide. How will ESG reporting work for airports? Is a template or approach conceived by ACI likely to provide definitive guidance for airports? How will (and how should) community views influence airport approaches toward the “S” and “G” in ESG? Given the discussions at the Insight Event, a coordinated game plan between ACRP and ACI (and ACI-NA) may be in order, considering ACI-NA’s approach is beginning and focuses on material risks and measures that lend themselves to

Page 39
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
×

susceptible benchmarking (e.g., financials). An ESG white paper is under development by ACRP, and another research project could be developed after publication of the white paper.

Idea 13: Energy needs across airports. What are the supply challenges for energy across airports? How should airports prioritize their energy use? What models for constructing new facilities are possible (e.g., PPPs)? What are the best practices in working with local energy providers and regulators?

Page 37
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
×
Page 37
Page 38
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
×
Page 38
Page 39
Suggested Citation:"Research Ideas." National Academies of Sciences, Engineering, and Medicine. 2024. The Future of Airport Finance. Washington, DC: The National Academies Press. doi: 10.17226/27510.
×
Page 39
Next: Appendix A: List of Attendees »
The Future of Airport Finance Get This Book
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As airport leaders look to the future, it is important to consider how airports will fund their operations and investments and balance the risks in providing services to their customers and users while maintaining sound balance sheets.

Transportation Insights 3: The Future of Airport Finance, from TRB's Airport Cooperative Research Program, provides a summary of an in-person discussion forum convened by ACRP for aviation leaders and stakeholders to identify new and emerging finance-related issues, explore their relevance to airport authorities, posit new strategies for funding capital and operating costs, and suggest ways the financial burden could be shared among the variety of customers, users, business partners, and stakeholders of airports.

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