Sea-Tac International Airport
Landing Fee Data Collection
Project
Port of Seattle Commission
Audit Committee
January 11, 2011

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, NonSignatory, Cargo, Charter
Airlines.

Results presented to AAAC
December 9, 2010:
 Numerous examples of airline

over and under-reporting.
 Inconsistent reporting of nonrevenue 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 nonrevenue flights with associated
consideration given to POS.
 Collection of LFs for NonRevenue 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