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US strives to make infrastructure match
demand
Date Posted: 09-Sep-2016
Author: Ben Vogel
Publication: Jane's Airport Review
The United States remains a hive of activity as capacity pressures drive developments at
large and small airports alike
In Hartsfield-Jackson Atlanta International, already the busiest airport in the world by passenger
volume, a major USD6 billion programme called ATLNext aims to overhaul the domestic terminal
and concourses. By the mid-2030s, the airport will also include a hotel and - if demand dictates -
another concourse and a sixth runway.
Most of the engineering and construction is expected to take place between 2016 and 2024. Work
worth USD1 billion is expected to commence in 2017 alone, involving car parking facilities, five
new gates for Concourse T, preparations for a new 10-gate Concourse G, and other terminal
upgrades.
Selected ATLNext projects
Project Timeframe Estimated cost
Terminal modernisation 2016-2018 USD393 million
Concourse T extension 2016-2021 USD200 million
APM relocation 2016-2027 USD307 million
Car parking facilities (various) 2016-2027 USD922.6 million
Hotel/commercial complex 2016-2018 USD500 million
Taxiway replacements/upgrades 2016-2021 USD82 million
Runway pavement replacement 2021-2023 USD35 million
Miscellaneous airfield projects 2016-2035 USD310 million
Sixth runway 2023-2034 USD943 million
Cargo Building C 2012-2017 USD26 million
Cargo Buildings 2A/2B 2015-2018 USD157 million
Cargo Building 1 2017-2021 USD22 million
ARFF station upgrade 2016-2017 USD16.4 million
Source: Hartsfield-Jackson Atlanta International Airport
"At the pace at which passenger traffic is growing, at the pace at which the City of Atlanta is
growing, we know that we need an additional five gates on Concourse T," Hartsfield-Jackson
general manager Miguel Southwell said on 29 February during an industry day at the airport. "We
also know that we need an additional concourse, which we're calling Concourse G."
ATLNext is based on the airport master plan for Atlanta that was updated in 2014.
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The ATLNext plan includes new ticket counters in an upgraded domestic terminal. (Hartsfield-
Jackson Atlanta International Airport)
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Work is already underway on a large multi-storey car park next to the Georgia International
Convention Center, and concourse renovations are set to begin in late 2016.
Southwell added that a Concourse H may be required by 2029, but funding for it may be
unavailable. Hub carrier Delta is supporting the ATLNext, after it reaffirmed its commitment to the
airport with a new 20-year lease in April 2016. The airport also has access to Passenger Facility
Charge funds, airport bonds, commercial financing, and federal grants.
On 26 August 2016, for instance, the City of Atlanta announced USD15.26 million in fiscal year
2016 Airport Improvement Program (AIP) funds for taxiway rehabilitation.
O'Hare: A work in progress
Construction began in August 2016 of the new Runway 9C/27C at Chicago O'Hare, which was the
second-busiest US airport by passenger volume in 2015 (see infographic). The 3,427 m-long, 61
m-wide runway will be the second largest at O'Hare, and it forms a crucial part of the Chicago
Department of Aviation's (CDA's) USD1.3 billion modernisation programme at the airport.
Completion of the new runway is expected in 2020.
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Top 10 US airports by passengers, cargo volume, and aircraft movements - 2015 (IHS)
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Meanwhile, the City of Chicago is working with airline partners on expanding Terminal 5 (T5) at
O'Hare International Airport. Speaking on 15 July 2016, Mayor Rahm Emanuel announced that up
to nine gates will be added to T5 by 2019, bringing the total to 34. The USD300 million project will
be funded by passenger facility charges.
"In order to grow, innovate, and continue to provide excellent service in a dynamic global aviation
system, O'Hare needs to significantly expand and modernise," said CDA commissioner Ginger
Evans. "Working with our airline partners we are developing the best path forward."
United Airlines and American Airlines - the main carriers at O'Hare - both welcomed the
announcement. American Airlines is adding five new gates at O'Hare by 2018, in its first major
gate expansion at the airport since 1993.
Modernisation plans for O'Hare also include redevelopment of T2 into a new central terminal within
the existing complex, although a funding agreement must still be reached with airlines. Depending
on the outcome of these negotiations, amenities in the rebuilt T2 could include a new Customs and
Border Protection facility and a departure hall with additional space for passenger screening. The
revamped central terminal also could include new concourses to be constructed to the west as
airline passenger demand grows.
Los Angeles World Airports (LAWA), operator of Los Angeles International Airport, began its
USD8.5 billion LAX modernisation programme in 2006.
Among more than 20 projects in this programme, about 3,251 m² of extra floor space is being
added in a major overhaul and expansion of Terminal 1 (T1). Southwest Airlines is financing the
USD508 million project as the sole tenant in T1. The project began in September 2014 and
completion is expected in May 2018.
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Work includes replacing most terminal systems, and four remodelled gates will be added to the 10
in use today. All gates will be equipped with new passenger boarding bridges. A new baggage-
handling system will also be installed to include two new carousels that will be 30% larger than
those currently in use. Within the check-in area, self-tagging baggage check-in kiosks will be
installed. The equipment was developed in-house by Southwest. The use of such self-service
systems will reduce the traditional counter area by 60%.
Terminal 2 is undergoing a major upgrade, covering the ticket lobby, baggage screening, and
reclaim. New retail and commercial concessions are planned, and the electrical, mechanical, and
telecommunications infrastructure is being overhauled.
Looking further ahead, plans for an 11-gate Midfield Satellite Concourse (MSC) at Los Angeles
have moved into the design stage (Phase 1). The Los Angeles Board of Airport Commissioners
(BAC) previously awarded a USD961.2 million design-build contract to Turner/PCL, a joint venture
in association with Corgan/Gensler. Phase 2 (the actual construction phase) is expected to begin
in 2017 and will take three years, with completion scheduled for 2020.
The facility will be located 400 m west of the Tom Bradley International Terminal (TBIT) on a 36-
acre site that currently houses aircraft maintenance hangars. These will be demolished to make
room for the MSC.
PPP at LaGuardia
Private capital plays a major role in redevelopments at New York LaGuardia. A public-private
partnership (PPP) called LaGuardia Gateway Partners began managing and operating Terminal B
(the Central Terminal Building - CTB) in June 2016, as part of a 35-year lease agreement with the
Port Authority of New York and New Jersey (PANYNJ). Under the deal, LaGuardia Gateway
Partners will develop a new CTB, for completion by November 2017.
Meanwhile, Delta Air Lines is working with the PANYNJ on replacing Terminal C and D with a new
37-gate facility, to be connected with the CTB.
Delta is financing most of the USD4 billion project, with responsibility for construction and any cost
overruns. The PANYNJ on 21 July 2016 committed to invest up to USD600 million: USD200
million on new ramp areas and concourses in the new Delta terminal; USD185 million for
construction of an electrical substation to support the power requirements of the new building, plus
expansion of the East Garage and any temporary parking structures; and USD215 million on roads
and other supporting infrastructure.
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Key features of the new LaGuardia CTB include pedestrian bridges over the active taxi lanes with
sweeping views of the airfield and the Manhattan skyline beyond. (LaGuardia Gateway Partners)
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If the Federal Aviation Administration (FAA) approves the scheme, work would commence in 2017
for completion by 2024. The main area of the planned new terminal would open in 2020.
The Delta-PANYNJ deal includes plans to negotiate a lease with Delta for the new terminals until
2050. Terms and conditions are being finalised and it requires approval from the PANYNJ board of
commissioners, but it is expected to resemble existing terminal leases.
Overall, LaGuardia redevelopment projects are costing an estimated USD8 billion, with
approximately 80% funded by private finance and passenger fees.
Eventually the remodelled LaGuardia will be a "unified facility connecting Terminal B and the
Central Hall through to the redeveloped Terminal C and D, which will be located closer to the
Grand Central Parkway to increase airfield space and improve the efficiency of aircraft movements
into and within the terminal ramp area", according to the PANYNJ.
Development programmes are under way at other large US airports. For example, a new USD807
million terminal for New Orleans Louis Armstrong International is planned to open in March 2018;
and Salt Lake City is investing USD740 million in a North Concourse, as a parallel programme to
the 10-year, USD2.6 billion Terminal Redevelopment Program at the airport.
In Florida, a USD1.1 billion expansion and renovation programme at Orlando International is
underway. Aside from terminal improvements, work includes construction of a South Airport APM
Complex and Intermodal Transportation Facility, with a planned completion date of mid-2017.
Elsewhere in the state, Tampa International Airport expects to complete the first phase of a three-
stage development plan in late 2017. With investment of almost USD1 billion, the first phase
includes measures to decongest the main terminal, approach roads, and kerbsides. Around 4,645
m² of extra space is being added to the terminal building, to be filled mainly with retail
concessions.
Lower-tier growth
Development activity is not confined to large international airports. Plattsburgh International Airport
- which promotes itself as 'Montréal's US Airport' - is also on a growth trajectory and enjoyed
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backing from US presidential candidate Hillary Clinton, when she served as a senator for New
York State.
Formerly used by Strategic Air Command as Plattsburgh Air Force Base, the airfield and
associated facilities were transferred to commercial use in 1995, with the help of a special federal
grant under the FAA Military Airports Program. Plattsburgh International inherited a 3,657 m x 91
m concrete runway and 1.1 million m² apron. "The runway was left in good condition and it has
been maintained continuously," said Garry Douglas, president and CEO.
"In terms of air service development, we can attract low-cost airlines that cannot afford to base
themselves at the main Montreal airport," he noted to IHS Jane's . "We're unique - an airport on
the US side of the border acting as a secondary airport for a major Canadian city."
Today, Allegiant, PenAir, and Spirit serve destinations inside the United States from Plattsburgh.
"The first phase of our air service development was leisure travel to warm destinations." Full
capacity was reached rapidly in the small terminal. "We have actually had to hold off on some
demand, because airlines tend to cluster around peak hours."
A new USD65 million terminal is under construction, with completion expected by late 2016. It is
more than four times the size of the existing terminal, said Douglas. "The original terminal was
built with a notion of about 30,000 emplanements. We're now running at 150,000." The most
pessimistic FAA forecast for the next 10 years still predicts 350,000 emplanements.
Plattsburgh is also implementing airfield improvements with AIP aid (USD505,400 for runway
refurbishment, USD47,500 for installation of perimeter fencing, USD210,900 to upgrade the ARFF
station, and USD706,800 to remove obstructions on the airfield).
The new terminal, parts of which are already in use, features more check-in counters, larger
baggage-handling facilities, and more boarding bridges capable of hosting more than one large
aircraft simultaneously. The airport will have five contact gates, with room to expand with three
more. "As an ex-SAC base, we have the airfield infrastructure to handle large aircraft," Douglas
commented. "And here's the real part: we're going to put the 'International' in Plattsburgh
International Airport, with a new Federal Inspection Station [FIS] for CBP [US Customs and Border
Protection]."
The FIS facility will be open by mid-2017 as the final piece of the jigsaw in the terminal, helping
Plattsburgh to serve travel to the Caribbean. "We've had demand for that from the very beginning,"
said Douglas, who participated in a New York State trade mission to Cuba in 2015. "Cuba is the
number one vacation destination for the Montréal market …. When the time comes that it can be
done, it'll be done and it will be fabulously successful."
Even if Plattsburgh expands international services, Douglas insisted it would not compete directly
with Montréal-Pierre Elliot Trudeau. "We think there's room in the market for everybody. If we're as
successful as we ever hope to be, we'll still be a blip on the radar screen to an airport as massive
as Trudeau. We're just occupying a niche that needs to be filled."
Since 1995, Plattsburgh has developed into a location for international manufacturers, especially
US subsidiaries of Canada-based companies. "We've looked to create a cluster of transportation
equipment and aerospace companies," said Douglas. Hence Plattsburgh attracted rail
(Bombardier) and ground transportation (Volvo Bus subsidiaries Nova Bus and Prevost)
manufacturers. It recently added Norsk Titanium as its first aerospace component manufacturer.
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General aviation (GA) airports are exploring growth opportunities. At St Mary's County Regional
Airport in Maryland, for instance, a new hangar has been built to support a test site for unmanned
aerial vehicles (UAVs), and an AIP grant will help with runway and airfield infrastructure upgrades.
St Mary's County Regional Airport recently opened a UAV test hangar, and is adding new hangars
for corporate and GA aircraft. (S Hunt Aero LLC)
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The new 1,026 m² hangar for the University of Maryland Unmanned Aircraft Systems Test Site
was completed in November 2015 with office space, a research laboratory, and other support
facilities.
This was just part of an eight-building expansion programme at the airport being 100% funded by
S Hunt Aero LLC, including 9,290 m² of hangar space for up to 77 GA aircraft, as well as a second
building for corporate jets.
By mid-2016, 31 storage hangars and the UAS Test Site had been completed. Four more hangars
for GA aircraft, and two larger hangars (803 m² and 566 m²) for corporate jets, are on course for
completion by the end of the year.
St Mary's County accommodated about 100 aircraft in 2005 but now twice that number use the
airport, with about 42,000 annual takeoffs and landings. The 1,265 m Runway 11/29 is being
extended to 1,630 m with the help of a USD1.33 million AIP grant, announced on 5 August 2016.
Mississippi ambitions
Hancock County Port and Harbor Commission (HCPHC) has issued a request for proposals (RFP)
for insight and analysis on the creation of an aerospace and aviation cluster in Hancock County,
Mississippi.
The deadline for responses is 3 October 2016, and the successful bidder is expected to complete
work on the Aviation and Aerospace Cluster Optimization Plan by 31 May 2017.
Hancock County is home to several aviation facilities, including NASA's Stennis Space Center,
Stennis Airport, and Diamondhead Airfield. The strategy could also include Picayune Municipal
Airport in Pearl River County.
HCPHC is looking to develop, expand, and modernise Stennis Airport and the existing 'buffer
zone' outside the Stennis Space Center, as a driver for regional economic growth. The RFP
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demands that air traffic management factors are considered, including segregated airspace and
unmanned aerial vehicle operations.
The apron at Stennis Airport is already undergoing expansion: on 1 August 2016, the Mississippi
Department of Transportation issued a USD252,261 grant to construct a parking area for fuelling
vehicles and other ground support equipment, and almost USD675,000 is allocated for apron
development at the airport from the FAA Airport Improvement Program in fiscal year 2016.
Jackson aims to bounce back
Elsewhere in Mississippi, Jackson-Medgar Wiley Evers International faces challenges but plans
are in place to address them, said Dr Rosie Pridgen, chairman of the Jackson Municipal Airport
Authority (JMAA) Board of Commissioners.
The 'Strategic Plan 2021' for JMAA, released in March 2016 and written by transportation planning
consultancy Jacobsen Daniels, predicts a challenging period for Jackson-Medgar Wiley Evers. It
cited data from the FAA Terminal Area Forecast 2014, which predicted annual growth of less than
1% over the next five years. Military and GA operations at Hawkins Field (the other airport
operated by JMAA) meanwhile, are predicted to rise steadily from 2014 to 2030.
The airport processed about 55,000 commercial aircraft movements on its two 2,591 m x 46 m
runways in 2014, as well as about 27,000 military aircraft operations (it is a base for the 172nd
Airlift Wing of the Mississippi Air National Guard).
Total passenger volume was just over 1 million, and the airport handled more than 2,000 tonnes of
air freight.
Southwest Airlines withdrew from Jackson-Medgar Wiley Evers in 2014 as part of a realignment of
its business, and Strategic Plan 2021 acknowledges that the airport "remains vulnerable to the
instabilities within the airline industry, including changes to airfares, airline staffing, and mergers".
As airlines consolidate their services around fewer airports, "the risk of losing service continues to
be a significant threat to the Authority's economic stability and customer convenience".
Yet Pridgen remains optimistic, telling IHS Jane's that "we've been able to hold our own" despite
the withdrawal of Southwest. "We're recovering, and we're in the market to attract other low-cost
carriers into the Jackson area."
Today, Jackson-Medgar Wiley Evers hosts three carriers. American Eagle, Delta, and United
Express serve six US hub destinations. A fourth airline (Southern Airways Express) is due to
launch a non-stop service on 26 September 2016 to Memphis.
In particular, JMAA sees opportunities from development of the East Metro Corridor (EMC) road to
the east of the airport. Strategic Plan 2021 notes that it could "not only provide economic stimulus
through additional business activity but would likely result in utility improvements that could be
leveraged to facilitate additional investment in the surrounding communities".
With benefits from the EMC in mind, JMAA offers some tax incentives to attract companies to its
Aerospace Park, where about 750 acres of land around the airport is available for industrial
development. "This potential can be translated into land development options, improved tenant
services, enhanced customer experience, and employee engagement," according to Strategic
Plan 2021. If the hoped-for demand materialises, the Aerospace Park will evolve into the primary
source of revenue for JMAA.
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Jackson-Medgar Wiley Evers announced on 26 July that it plans to use at total of USD13.83
million in fiscal year 2016 AIP funding to rehabilitate Runway 16R/34L and its associated lighting;
taxiway and taxiway lighting repairs and upgrades; and wildlife hazard assessments. This is one of
the largest AIP totals to be earmarked for a US airport in fiscal year 2016.
"We're looking to expand the terminal to accommodate more concessions," added Pridgen. "We
also want to do PreCheck. At the moment we don't have enough screening lanes."
Consolidating airlines and security into a single location was deemed to provide the best
operational efficiency for JMAA, passengers, and tenants, while ensuring the airport can handle
future growth. "Consolidating resources will improve passenger convenience, ensure safe and
secure facilities, provide for self-sustaining revenue producing concessions, and reshape the
image of the terminal facility," according to Strategic Plan 2021.
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