Huntsville International Airport Master Plan Update Public - PowerPoint PPT Presentation

Huntsville International Airport Master Plan Update Public Information Meeting June 28, 201 7

Agenda  Welcome and introductions  Master planning process  Inventory of existing conditions  Forecasts of aviation demand  Facility requirements  Project schedule  Next steps/ action items  Your thoughts 2 6/28/201 7

Master Planning Process HMC MCAA AA HMCAA AA Brief efing ng Brief efing ng HMCAA AA HMCAA AA Brief efing ng Brief efing ng 3 6/28/201 7

Inventory of Existing Conditions Huntsville International Airport

Inventory of Existing Conditions  Airport characteristics and local profile  Airport access, transportation, and parking  Landside facilities  Airfield facilities  Operational characteristics  Support facilities  Security and airspace  Utilities and infrastructure  Environmental factors 5 6/28/201 7

Project Study Area  Small-Hub Commercial Service Airport • 7,000 acres • Parallel runway system capable of handling large commercial aircraft • Interstate access  Jetplex Industrial Park • Over 2,882 acres available for immediate development • Foreign Trade Zone #83 • International Intermodal Center 6 6/28/201 7

Existing Airfield Facilties 7 6/28/201 7

Terminal Area Huntsville International Airport

HSV Terminal Developments  201 2- $25.9 million baggage claim expansion opens  201 0-201 2 AirTran service  SWA/ AirTran merger and loss of service to HSV  GLO service start Fall 201 6  Impact of mergers on direct flight destinations  Flights decreased  Total seats available increased Source: HMCAA Financial Statements 9 6/28/201 7

HSV Terminal Area  Robust and flexible terminal area • Land availability • Landside/ highway access • Airfield and apron capacity • Airspace clearances and ATCT views 1 0 6/28/201 7

Terminal Area 1 1 6/28/201 7

Terminal Building 1 2 6/28/201 7

Forecasts of Aviation Demand Huntsville International Airport

Importance of Forecasts  Develop a realistic assessment of market conditions and market performance  Address unique local conditions not fully considered in national and macro level forecast efforts  Provide a benchmark for comparing current facilities against a reasonable estimate of future demand to define future facility needs 1 4 6/28/201 7

Factors and Opportunities  Sharp fuel price increases after Hurricane Katrina damaged Gulf Coast refineries (August 2005)  Economic Recession (late 2000s)  Hurricane Matthew: airline cancellations and temporary aircraft relocations to HSV (October 201 6)  Local trends are important as they provide airport-specific information that may support the selection of preferred forecasts  Generation Air Transportation System (NextGen) initiatives 1 5 6/28/201 7

Industry Wide Development Trends  Airline Mergers • American/ US Airways (201 3) • SWA/ AirTran (201 1 ) • United/ Continental (201 0) • Delta/ Northwest (2008)  Airlines load factors highest in history (84.5+% 201 4-201 6)  Remote check-in options decrease on-site ticketing  Flights decreased in number  Total seats per flight higher 1 6 6/28/201 7

Historical Enplanements (1 990-201 6) Unadjust adjusted ed Term rminal inal Area ea Forecas ecast t Enplan anements ements 700,000 60 600, 0,00 000 500,000 400,000 300,000 200,000 100,000 0 1 7 6/28/201 7

Forecast Summary Passenger Enplanements Based Aircraft Aircraft Operations 1 8 6/28/201 7

Air Cargo Huntsville International Airport

Panalpina Overview  Panalpina supports 1 8 operations a week to/ from HSV  Occupies an on ramp facility at HSV  Huntsville is a closed operation  Panalpina does not board freight for other freight forwarders, with the 20 6/28/201 7

Top 25 Global Freight Forwarders Rank ank Pro rovider ider Rank ank Pro rovider ider 1 DHL Supply Chain & Global Forwarding 1 4 Pantos Logistics 2 Kuehne + Nagel 1 5 C.H. Robinson 3 DB Schenker Logistics 1 6 Hellmann Worldwide Logistics 4 Sinotrans 1 7 Damco 5 Panalpina 1 8 Kerry Logistics 6 Nippon Express 1 9 UTi Worldwide 7 CEVA Logistics 20 Yusen Logistics 8 Expeditors International of Washington 21 Toll Holdings 9 UPS Supply Chain Solutions 22 Geodis 1 0 SDV (Bolloré Group) 23 Logwin 1 1 DSV A/ S 24 Sankyu 1 2 Kintetsu World Express 25 BDP International 1 3 Agility Source: Armstrong & Associates, 201 5 21 6/28/201 7

Rail Overview  HMCAA operates an intermodal facility for Norfolk Southern Railway at HSV  CSX and NS provide a rail link between east coast ports  Interchanges with western rail carriers (UP and BNSF) providing service from both US coasts  FedEx, UPS and Amazon utilize rail intermodal today with expectations of expanding use in the future 22 6/28/201 7

Key Industry Sectors  Automotive  Cold Chain  Pharmaceutical  Aerospace  Live Animal Shipments  E-Commerce 23 6/28/201 7

Global E-Commerce  Fast Growing Industry Segment  According to e-Marketer, 1 5-1 6% year-over- year through 2020  Cross border retail volumes will increase at a rate of 25% between 201 5 and 2020, rising from $300 billion to $900 billion  Significant volumes of growth is occurring between U.S., China and Europe (Panalpina supports these lanes)  Establishing an e-commerce strategy will require a partnership between the airport, Panalpina, and major retailers to align efforts to capture business in HSV 24 6/28/201 7

Global Cargo Growth Projections The forecasts continue to favor air cargo growth:  The International Air Transport Association projects 4.1 % CAG (201 5-2020)  International market forecast specialist Sandler Research projects 5.97% growth each year (201 4-201 9)  The Boeing Company projects 4.2% CAG (201 5-2035)  Leading international market research firm Technavio projects 4.57% (201 6-2020) 25 6/28/201 7

High Growth Cargo Forecast (201 6-2036) HSV HSV 20 20-Yea ear Fo Forec ecast Ba st Base sed o d on n 5% 5% Gr Growth wth Rat Rate e Ac Across ss UPS/ S/ FedEx and Non FedEx and Non-Per ermi mitted tted Ca Carrier ers s and nd 8% 8% Gr Growth wth Rat Rate e fo for Panal nalpi pina na Tota To tal UPS/ S/ FedEx FedEx Panal nalpi pina na Non-Per ermi mitted tted Ca Carrier ers To Tota tal Al All Ca Carrier ers Yea ear (Poun (P unds ds) (P (Poun unds ds) (Poun (P unds ds) (P (Poun unds ds) 201 201 6 4,999,796 1 95,699,475 761 ,762 201 ,461 ,033 201 201 7 5,249,786 21 1 ,355,433 799,850 21 7,405,069 201 201 8 5,51 2,275 228,263,868 839,843 234,61 5,985 201 201 9 5,787,889 246,524,977 881 ,835 253,1 94,701 2020 2020 6,077,283 266,246,975 925,926 273,250,1 85 2021 2021 6,381 ,1 47 287,546,733 972,223 294,900,1 03 2022 2022 6,700,205 31 0,550,472 1 ,020,834 31 8,271 ,51 1 2023 2023 7,035,21 5 335,394,51 0 1 ,071 ,876 343,501 ,600 2024 2024 7,386,976 362,226,070 1 ,1 25,469 370,738,51 6 2025 2025 7,756,325 391 ,204,1 56 1 ,1 81 ,743 400,1 42,224 2026 2026 8,1 44,1 41 422,500,489 1 ,240,830 431 ,885,459 2027 2027 8,551 ,348 456,300,528 1 ,302,872 466,1 54,747 2028 2028 8,978,91 5 492,804,570 1 ,368,01 5 503,1 51 ,500 2029 2029 9,427,861 532,228,935 1 ,436,41 6 543,093,21 2 203 2030 9,899,254 574,807,250 1 ,508,237 586,21 4,741 2031 203 1 0,394,21 7 620,791 ,830 1 ,583,648 632,769,696 2032 2032 1 0,91 3,928 670,455,1 77 1 ,662,831 683,031 ,935 203 2033 1 1 ,459,624 724,091 ,591 1 ,745,972 737,297,1 87 203 2034 1 2,032,605 782,01 8,91 8 1 ,833,271 795,884,794 203 2035 1 2,634,235 844,580,432 1 ,924,935 859,1 39,602 2036 203 1 3,265,947 91 2,1 46,866 2,021 ,1 81 927,433,995 26 6/28/201 7

Forecast of Cargo Facilities  The new facilities Panalp alpina ina New Facili ilities ies Yea ear (Po Poun unds) shown indicate the 201 201 6 1 95,699,475 201 201 7 21 1 ,355,433 year in which a new 201 201 8 228,263,868 201 201 9 246,524,977 building will need to 2020 2020 266,246,975 2021 2021 287,546,733 be delivered for 2022 2022 Yes 31 0,550,472 2023 2023 335,394,51 0 occupancy in order to 2024 2024 362,226,070 2025 2025 391 ,204,1 56 support the 2026 2026 422,500,489 2027 2027 Yes 456,300,528 forecasted increase 2028 2028 492,804,570 2029 2029 532,228,935 in cargo volumes. 203 2030 574,807,250 203 2031 620,791 ,830 203 2032 670,455,1 77 203 2033 Yes 724,091 ,591 203 2034 782,01 8,91 8 203 2035 844,580,432 203 2036 91 2,1 46,866 27 6/28/201 7