ITEM NO.
DATE OF
MEETING

7b supp

.

September 12, 2011

.

Airline Realignment Program
Commission Briefing for Seattle-Tacoma International Airport

1

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

Page 2

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

Page 3

Airline Realignment Scope

Page 4

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
Page 5

Airline Realignment Capital Projects
Authorized Projects
Authorized Amt
Concourse D Common Use Exp'n
$ 4,250,000
Passenger Loading Bridges
$ 6,700,000
Baggage Modifications
$ 1,731,000
Exterior Gate Improvements
$ 499,000
Airport Signage
$ 238,000
Total: $13,418,000

Projects Remaining
to be Authorized
Misc. Building Improvements
CUSE at Ticket Counters, Gates

Est Amt to
Authorize
$ 560,000
$ 476,000
Total: $1,036,000

Date
Remaining
Authorized
Amt to Auth
Jan-25-11
0
Feb-22-11
$ 8,150,000
Mar-01-11
$ 3,604,000
Jun-14-11
$ 2,151,000
Jun-14-11
$ 408,000
Total: $14,313,000

Est Date
to Authorize
N/A
Nov 2011
Sept 2011
Dec 2011
Jan 2012

Est Date to
Remaining
Authorize
Amt to Auth
Dec-06-11
$ 2,061,000*
Jan 2012
$ 1,895,000
Total: $ 3,956,000

Est Date
to Auth
Nov 2011
Aug 2012

Estimate Grand Total of all Authorizations and Remaining to Authorize: $ 32,723,000*
* Anticipate a future budget increase

Page 6

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

Page 7

• Questions?

Page 8