Port of Seattle Commission
Audit Committee
January 11, 2011
Sea-Tac International Airport
Landing Fee Data Collection
Project
Background
2010
Airline
Self-Reported
Activity =
Honor System
Landing Fees
$64,960,000
International Facilities Use (FIS)
$4,270,000
Common Gate Revenues
$15,000,000
Common Baggage Sys Use
$1,800,000
Common Use Ticket Counters
$ 360,000
TOTAL
$86,390,000
History of
Inaccuracy/Inequity
Audit Rationale/Past Examples
Airline X Under-Reported FIS
Use: $3 M
Airline Y Under-Reported FIS
Use: $1.2M
Airline Z Over-Reported Gate
Use: $712K
Proactive identification of issues and
request for airline activity audits by
Aviation Operations.
Omission not Commission
No loss of revenues to the
Port due to residual nature of
airline rates and charges
mechanism.
Relatively small variances in
overall perspective.
However, no objective measure
to validate reporting
vulnerabilities.
2010 POS Commission Audit
Committee Area of Focus
2010 Airline Airport Affairs
Committee Approval for
Landing Fee Review of all
Carriers
Landing Fee Data
Collection
Consultant Selected via CPO
Process
Scope of Work
Analysis of two years of flight
data for 2008 and 2009
Review landings, aircraft
weights, fees paid for all
scheduled Signatory, Non-
Signatory, Cargo, Charter
Airlines.
Results presented to AAAC
December 9, 2010:
Numerous examples of airline
over and under-reporting.
Inconsistent reporting of non-
revenue flights and subsequent
question as to intent of
Signatory Lease and Operating
Agreement (SLOA).
ACI Survey shows 58% charge,
42% do not charge for non-revenue
flight activity.
Recommendations
Acknowledge but not reconcile
Airlines to report all Non-
Revenue Landings effective
April 2011 OR
Airlines may amend existing
agreement to waive non-
revenue flights with associated
consideration given to POS.
Collection of LFs for Non-
Revenue Landings per SLOA
paragraph 8.2.3.
Clarification of Non-Revenue
Landing Definition
Revised Monthly Reports and
Invoices (Split Out)
Recommendations
Proceed with Automated
Airline Activity Management
System CIP.
Allows independent airline
system reports and inquiries
Reduces manual transfer of data
(human error)
Improves airline cost equity
Replaces aging Data Systems
(Microsoft Access ‘95)
Decreases need for future audits
Assists in managing Airport
assets and resources
Integrates with future
technology projects
Recommendations
Collaborate with airlines in
addressing other Honor System
areas of concern through annual
audits or through automation:
International Facilities (FIS)
Remain Over Night Parking
Common Gate Parking
Common Ticket Counters
Baggage Systems
