Airline Realignment Program
Commission Briefing for Seattle-Tacoma International Airport
1
ITEM NO. 7b supp .
DATE OF
MEETING September 12, 2011 .
Agenda
• Airline Industry Changes Drive Airline Moves
• Airline Moves and Schedule
• Realignment Program Elements:
o Realignment Capital Projects $32.7 million
o Linked Capital Projects $70+ million
o Expense Projects $20-25 million
Total Program: $122-130 million
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Airline Industry Changes
The U.S. airline industry continues to face evolutionary changes and consolidations.
At Seattle-Tacoma International Airport:
• Several airlines have stated desire to relocate and/or consolidate facilities
• Delta merged with Northwest and consolidated on the South Satellite as the first step in
consolidations. Now United and Continental are merging along with Southwest and AirTran.
• Alaska Air Group plans to consolidate their operations to the North Satellite and Concourse C
• The Airport has exercised the provision for a one-time airline reallocation as part of the Airline
Signatory Lease & Operating Agreement (SLOA) with a notice of intent issued on December 9,
2010
• Airlines directly impacted by this realignment include: AirTran, Frontier, jetBlue, Hawaiian,
American, Virgin America, Continental, United, and Alaska Air Group
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Airline Realignment Scope
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Airline Move Schedule
Late 2011
• AirTran relocates
• Continental ticket counter moves to United
Mid 2012
• Virgin America ticket counter moves
Mid 2013
• Frontier relocates
• jetBlue relocates
• American relocates
Late 2013
• Virgin America gates relocate
• Hawaiian relocates
• United/Continental relocates
• North Satellite and Concourse C renovation begins
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Airline Realignment Capital Projects
Date Remaining Est Date
Authorized Projects Authorized Amt Authorized Amt to Auth to Authorize
Concourse D Common Use Exp’n $ 4,250,000 Jan-25-11 0 N/A
Passenger Loading Bridges $ 6,700,000 Feb-22-11 $ 8,150,000 Nov 2011
Baggage Modifications $ 1,731,000 Mar-01-11 $ 3,604,000 Sept 2011
Exterior Gate Improvements $ 499,000 Jun-14-11 $ 2,151,000 Dec 2011
Airport Signage $ 238,000 Jun-14-11 $ 408,000 Jan 2012
Total: $13,418,000 Total: $14,313,000
Projects Remaining Est Amt to Est Date to Remaining Est Date
to be Authorized Authorize Authorize Amt to Auth to Auth
Misc. Building Improvements $ 560,000 Dec-06-11 $ 2,061,000* Nov 2011
CUSE at Ticket Counters, Gates $ 476,000 Jan 2012 $ 1,895,000 Aug 2012
Total: $1,036,000 Total: $ 3,956,000
Estimate Grand Total of all Authorizations and Remaining to Authorize: $ 32,723,000*
* Anticipate a future budget increase
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Related Projects
Linked Capital Projects $70+ million
North Satellite Improvements including Seismic, HVAC, club structure
Concourse C Improvements
North Checkpoint Reconfiguration
Estimated cost $70+ million
Expense Projects $20-25 million
Tenant improvements
Continued expenses incurred for the duration of the program into 2014
The current estimate for tenant improvements is approximately $20,000,000 to $25,000,000 and will
be finalized as individual airline agreements are reached
Future Capital Projects
North Satellite Expansion, ticket counter reconfigurations, technology improvements
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• Questions?
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