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Commission Briefing 1/25/2011Airline Realignment Program
Airline Realignment Program
Commission Briefing for Seattle-Tacoma International Airport
January 25, 2011
ITEM NO. 6b_supp_____________
DATE OF
MEETING January 25, 2011______
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Commission Briefing 1/25/2011Airline Realignment Program
Airline Industry Changes
The U.S. airline industry rapid evolutionary changes:
Corporate consolidation
Technological advancement
Restrained capacity
Renewed profitability
Recent U.S. airline consolidation:
Northwest Airlines and Delta Air Lines
Frontier Airlines, Midwest Airlines, and Republic Airlines
United Airlines and Continental Airlines
Southwest Airlines and Air Tran Airlines (Proposed)
At Seattle-Tacoma International Airport, several airlines have stated the desire of to
relocate and/or consolidate terminal facilities to achieve economic, operational,
and customer service objectives.
Further, Alaska Air Group has implemented a strategic plan to consolidate the
operations of Alaska Airlines and Horizon Air on the North Satellite and
Concourse C.
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Commission Briefing 1/25/2011Airline Realignment Program
One-Time Airline Realignment
The current Airline Signatory Lease and Operating Agreement (SLOA) anticipated
these changes and includes a provision for a one-time airline reallocation
It is now time to trigger this provision
Airlines directly impacted by this realignment include:
Air Tran, Alaska, American, Frontier,
Hawaiian, jetBlue, United and Virgin America
Airline notification of our intent to exercise this one-time airline reallocation
provision was made through a letter to the members of the Airline Airport
Affairs Committee (AAAC) on December 9, 2010
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Commission Briefing 1/25/2011Airline Realignment Program
One-Time Airline Realignment
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Commission Briefing 1/25/2011Airline Realignment Program
Airline Realignment Projects
A number of projects have emerged in order to complete this realignment:
Estimated Date
One-Time Reallocation Projects Estimated Cost of Authorization
Concourse D Common Use Environment $ 4,250,000 Jan-25-11
Passenger Loading Bridges $14,530,000 Feb-22-11
Baggage Modifications Currently $ 5,000,000 Feb-22-11
Reallocation Capital Improvements $ 6,110,000 TBD
Total: $24,895,000
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Commission Briefing 1/25/2011Airline Realignment Program
Airline Realignment Projects
Other projects that are connected to the Airline Realignment:
Estimated Date
One-Time Reallocation Projects Estimated Cost of Authorization
Projects “Linked” to realignment Approx $59,000,000 TBD
Includes North Satellite HVAC replacement
and Seismic Improvements for example
Projects “Related” to realignment Approx $13,000,000 TBD
Includes Airport wide Common Use Infrastructure
and Concourse C Improvements for example
“Future” projects related to realignment TBD TBD
Includes North Satellite Expansion or other
flow-through ticket counter improvements for example
Project planning, development, and airport approvals are underway
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Commission Briefing 1/25/2011Airline Realignment Program
Change Opportunities
With the implementation of the provisions of the One-Time Reallocation, the Airport is
in a position to assess the opportunities this will provide.
For instance, airlines continue to make technological advances in passenger and
baggage check-in and processing activities. This can and will have an impact on
how ticketing counters are arranged, staffed and configured.
Next steps include immediate planning tasks through the efforts of the recently hired
Campus Planner. The planner work plan includes:
Identifying ways realignment can be an opportunity to increase capacity.
Focusing on technology and process improvement in lieu of more costly capital expansion projects to
gain capacity.
Balancing capacity across all terminal functions based on new airline locations.
Quantifying supportable retail area on each concourse based on new airline locations.
Developing phasing strategies that minimize cost and operational disruption.
Positioning terminal for next generation processes that enhance flexibility and minimize cost of future
change.
Refining scope and cost assumptions.
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Commission Briefing 1/25/2011Airline Realignment Program
Airline Move Schedule
The airlines impacted by the moves are initiating planning and project
development to implement the moves associated with the airline realignment.
Current schedule for airline moves is:
Early 2012
Frontier relocates
jetBlue relocates
Air Tran counter relocate
Mid 2012
Continental counter relocates
Hawaiian relocates
American relocates
Late 2012/Early 2013
Air Tran gate relocates
Virgin America relocates
Continental gates relocate
United relocates
Alaska renovates North Satellite and Concourse C
