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Maryland Aviation Commission
Overview of Maryland Aviation Administration Airport Activities and Accomplishments for 2009
The mission of the Maryland Aviation Administration (MAA) is to foster the vitality of aviation statewide and promote safe and efficient operations, economic viability and environmental stewardship. MAA operates two airports, Baltimore/Washington International Thurgood Marshall Airport (BWI Marshall) and Martin State Airport (MTN). In addition, MAA’s Office of Regional Aviation Assistance develops and regulates aviation activities at Maryland’s 36 public-use airports.
Baltimore/Washington International Thurgood Marshall Airport
Based on the most recent economic data, from Fiscal Year (FY) 2006, BWI Marshall supports 99,913 total jobs. The overall Airport activity produces an estimated $475 million in tax revenue for State and local governments and $165 million in federal tax revenue. Further, BWI Marshall produces $3.2 billion in personal wages and is responsible for $5.1 billion in business revenue for the State.
For FY 2009, more than 20.1 million passengers flew through BWI Marshall, a decrease of 5.7% compared to FY 2008. The Airport has, on average, more than 320 daily departures to 65 nonstop destinations. Cargo transport at BWI Marshall decreased 9.1% in FY 2009, with 219 million pounds of cargo, as large cargo operators such as FedEx and UPS continue to use their vast truck fleets to ship packages.
Facilities Development and Engineering
The MAA Capital Program continues to focus on System Preservation while maintaining our commitment to provide safe, secure and convenient airport facilities for passengers and airport tenants, consistent with Federal Aviation Administration (FAA) and Transportation Security Administration (TSA) regulatory standards at BWI Marshall and MTN airports. At BWI Marshall, airfield improvements continue, including the advancement of the $43.3 million C/D Concourse ramp reconstruction, which includes $15 million of American Recovery Reinvestment Act (ARRA) funding; the $11.2 million electrical lighting and duct system enhancements; and the $39.0 million reconfiguration of the D/E Concourse baggage screening and baggage make-up systems. The $5.3 million B/C Concourse Phase III ramp construction was completed in December. At MTN, $1.5 million for construction of Taxilane K to serve the Midfield Complex and replacement of a portion of the airfield stormwater drainage system was completed in September.
System Preservation initiatives completed at BWI Marshall included $6.1 million for utility reliability improvements to the sanitary sewer line; water line backflow preventors; computer room heating, ventilation and air conditioning; tenant paging; electric meters for loading bridges; and replacement of overhead lighting in the domestic terminal ticket lobby. Security enhancements totaling $3.8 million included the purchase of a driving simulator to provide classroom training for airfield vehicles on a BWI Marshall backdrop; additional interactive security training units and expansion of the security training area to accommodate the units; terminal portal access improvements; and replacement of a large section of the perimeter fence. Installation of a $1.3 million fourth 600,000-gallon glycol collection tank to recover airfield drainage during winter events was completed in November. On the landside, $1.7 million of routine repairs to the Hourly Garage included replacement of expansion joints; repair to damaged drainage structures and lighting; crack sealing; power washing of exterior walls; and new landscaping.
MAA continued planning for future environmental programs intended to reduce or eliminate BWI Marshall’s contribution to global warming. MAA prepared a baseline study identifying the 2006 levels of greenhouse gas emissions attributed to the Airport and developed a 2020 projection of these emissions. MAA is also continuing to assess measures necessary to achieve an overall “sustainable” airport operation. At the same time, MAA advanced its Compliance Focused Environmental Management System (CFEMS) efforts. The CFEMS provides for a continuous evaluation and implementation of environmental best management practices in all areas of airport operation and management.
Business Management and Administration
MAA revenues from food, beverage and retail concessions increased 0.5% to $10.5 million in FY 2009, while concession sales decreased 1.1% to $89 million. This seeming disparity is due to the higher percentage of revenue MAA receives on food and beverage sales. In addition, sales per enplaned passenger increased 4.7% in FY 2009 to $8.81, up from $8.41 in FY 2008. By comparison, total passengers decreased 5.7% for the same period. Participation by Disadvantaged Business Enterprises (DBE) in the concession program as of June 2009 was 29.5% overall, with food service DBE participation at 32.3% and retail at 25.6%.
BAA Maryland, Inc., the BWI Marshall master concession developer, continued its redevelopment of the Airport’s terminal concessions program. Several new restaurants and retail stores opened in the past year including a new Travelex Money Exchange kiosk, a second Subway location and a second Talie location. New restaurants and retail shops are scheduled to open in the coming months, including DuClaw Brewing Company, Dunkin’ Donuts, I Tech Experience, Zoom Electronics Vending and AeroClinic.
MAA and the major airlines engaged in negotiations for a new airline Use and Lease Agreement. The new agreement was executed by the signatory airlines effective July 1, 2009, for a five-year term through June 30, 2014. Several significant changes benefiting MAA were made in the new agreement, including an increased application of direct cost center accounting and capture of over $1 million per year for vacant airline space.
Marketing
MAA staff continues to work with airline staff to support their efforts to increase passengers on targeted routes. Initiatives include airline reservations staff briefings, gate promotions at both BWI Marshall and out-market airports, special events and targeted website advertising on the BWI Marshall website. With respect to agreements for cooperative marketing or fee waivers, no such agreements were entered into in FY 2009 and MAA continued its agreement with British Airways.
MAA launched a new parking marketing campaign called “You Choose” which ran during the Airport’s low-volume months, January through June. Both the Daily Garage and Express Lot showed increases in airport revenue per transaction (parking ticket) thus achieving the goals of the campaign. This campaign offered both the Express Lot and the Daily Garage for a $9 daily rate with a coupon valid for either lot.
BWI Marshall launched a new website in both English and Spanish, enhanced with real-time flight schedules, and expanded interactive capabilities to effectively market the BWI Marshall experience to travelers. New features include the Spanish version, an interactive Shop & Dine guide, Twitter, flickr, You Tube and paid advertising links.
Air Service Development
A combination of volatile fuel prices, the economic slowdown and capacity cuts at most major carriers combined to negatively impact passenger figures.
Southwest Airlines continues to operate the most flights at BWI Marshall, followed by AirTran and Delta. Southwest was operating 157 flights from BWI Marshall at the end of 2009 and AirTran grew from 45 to 55 flights during the year. Southwest added service from BWI Marshall to New York La Guardia, Boston and Milwaukee. Air Tran began service to Cancun, San Juan and Nassau, and enhanced their Los Angeles and Milwaukee services by changing the service from seasonal to year-round. New airlines this year are JetBlue, with service to Boston; and Cape Air with service to Lancaster and Hagerstown.
Retaining British Airways BWI Marshall-London Heathrow service remains a key objective. Of special interest to MAA is their ability to transport US government funded employees under an enhanced relationship with American Airlines, subject to pending US government approval. Reservations briefings and quarterly meetings with British Airways headquarters staff are ongoing.
Operations and Maintenance
BWI Marshall passed its annual FAR 139 Airport Certification Inspection with no repeat discrepancies. This inspection is conducted by the FAA to audit the Airport’s compliance with myriad federal regulations related to the operation of an airport.
MAA completed an initial energy audit of more than 8 million square feet of facilities at BWI Marshall and MTN Airports, including parking garages, the terminal building and remote outer buildings. The main objective of the audit was to identify and implement valuable energy conservation measures to reduce energy consumption and, in some cases, reduce maintenance requirements of the systems. Energy conservation measures studied during the audit included lighting, water and HVAC.
Design and installation are complete on an Airport-wide sub-metering system for BWI Marshall electrical substations, including distribution substations and electrical switchgears within the complex. This system provides the State additional monitoring and metering devices that will enhance MAA’s ability to measure and verify energy consumption.
Business Relations
BWI Marshall continues to develop the business relations program, which takes direct aim at building business partnerships, opening up lines of communication and enhancing the BWI Marshall presence and image within the business and civic community in the Baltimore/Washington metropolitan area. The BWI Marshall News Blast, which is sent to 19 different chambers of commerce with a combined membership of nearly 25,000 businesses, informs the recipients about positive issues affecting the Airport. MAA has developed an appreciation program to recognize businesses in and around BWI Marshall.
Martin State Airport
In FY 2009, MTN handled more than 72,000 aircraft operations in support of the Maryland Air National Guard, the Maryland State Police Aviation Division, Baltimore County Police Aviation, Baltimore City Police Aviation, and countless businesses in the Baltimore area. Fuel sales during the same period were 1.25 million gallons of Jet-A and 100-LL aviation fuel. Based aircraft declined from 297 to 284. MTN generated $7.9 million in revenues. In addition, Black & Decker constructed a new hangar to store their two corporate aircraft.
MAA has initiated an update to the Airport Noise Zone (ANZ) and Noise Abatement Plan (NAP) for Martin State Airport (MTN). This is the fourth update of the ANZ and NAP since being established in 1977. The ANZ serves as a land use tool, allowing MAA to control incompatible land development in areas close to the Airport. This is a public process and the MAA will establish an advisory committee comprised of community representatives, airport users and local government representatives to participate in the process. Once the update is completed, a public hearing will be held to provide the public an opportunity to comment. It is expected that the new ANZ for MTN will be certified in 2010.
Regional Aviation Assistance
Economic impact data from 2006 shows the Statewide general aviation industry in Maryland provides for 6,797 jobs and generates combined personal income in excess of $396 million, generates business revenue in excess of $501 million, and contributes to State and local taxes in excess of $40 million.
MAA’s Office of Regional Aviation Assistance continues to foster and develop aviation in Maryland by helping to provide airport infrastructure improvements to meet a wide variety of business (corporate/private) and personal (pleasure/recreational) needs. In FY 2009, $36.32 million was invested into Maryland’s airport infrastructure (excluding BWI Marshall and MTN). MAA provided $2.34 million in grants for airport improvements. The Federal Aviation Administration contributed $28.95 million and airport owners invested $4.99 million.
* Commission activities are for Calendar Year 2009 except as noted. Fiscal Year (FY) data is based on FY 2009 – July 1, 2008 through June 30, 2009.
Actions Taken by the Maryland Aviation Commission
- The Commission approved an amendment to COMAR 11.0.3.01.01 and 11.03.01.05 to require rental car company lessees to collect a Transportation Facility Charge, in order to recover the rental car company lessees’ costs of operating and maintaining the common shuttle bus maintenance facility and the Consolidated Rental Car Facility Compressed Natural Gas fleet.
- The Commission was regularly briefed on air service trends and air service marketing efforts.
- The Commission was briefed on current Airline Use and Lease Agreement between MAA and the airlines.
- In accordance with Section 5-201.1 of the Transportation Article, the Commission played a major role in selecting a new Executive Director.
Financial Results
Maryland Aviation Administration
Baltimore/Washington International Thurgood Marshall Airport
and Martin State Airport
Comparative Statement of Revenue, Expense and Income
($ Thousands)
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FY 2009 |
FY 2008 |
Difference |
% Change |
TTF Revenue and Expense |
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TTF Operating Revenue |
$181,580 |
$180,254 |
$1,326 |
0.7% |
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TTF Operating Expense |
$169,500 |
$177,122 |
($7,622) |
-4.3% |
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TTF Surplus/(Deficit) |
$12,080 |
$3,132 |
$8,948 |
285.6% |
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Non-TTF |
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Non-Operating Revenue |
$74,058 |
$80,111 |
($6,054) |
-7.6% |
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Non-TTF Debt Service |
$41,492 |
$40,741 |
$751 |
1.8% |
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Non-TTF Surplus/(Deficit) |
$32,566 |
$39,370 |
($6,805) |
-17.3% |
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Total MAA Surplus/(Deficit) |
$44,646 |
$42,503 |
$2,143 |
5.0% |
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Capital Program Expenditures |
$74,524 |
$94,113 |
($19,589) |
-20.8% |
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Enplanements (000's) |
10,066 |
10,662 |
(596) |
-5.6% |
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In FY 2009, the Maryland Aviation Administration Transportation Trust Fund (TTF) operating surplus totaled $12.1 million, an $8.9 million improvement over the FY 2008 TTF operating surplus of $3.1 million. TTF revenue increased $1.3 million and expenses decreased by $7.6 million. |
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FY09 BWI Marshall revenue increased $3.2 million. Increased landing fees and airline/FAA terminal rents were offset by enplanement-driven declines in public parking, food and beverage, and other concessions. In addition, other revenue declined as one-time reimbursements for prior period capital projects were more than offset by refunds to the airlines based on FY 2008 airline rate reconciliations. MTN revenue decreased $1.9 million due primarily to lower FBO fuel sales driven by lower fuel price and decreased aircraft operations. |
The $7.6 million decrease in TTF operating expense is the result of reductions made in contractual services and reduced MTN fuel expense, somewhat offset by higher snow supplies and HVAC equipment maintenance. |
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FY 2009 non-TTF revenue decreased approximately $6.1 million as a result of timing differences in the receipt of Passenger Facility Charges (PFC) and lower interest earnings. Non-TTF CFC and Parking debt service remained relatively flat, with higher PFC debt service due to an increase in principal payments per the debt service schedule. |
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Total FY 2009 MAA surplus is $44.6 million, an increase of approximately $2.1 million over FY 2008. Enplaned passengers decreased -5.6% over the same period. |
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Maryland Aviation Administration
Statement of Revenue
Fiscal Year Ending
June 30, 2009 and 2008 |
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FY 2009 |
FY 2008 |
Difference |
% Change |
BWI Operating Revenue (TTF) |
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Flight Activities |
$48,944,731 |
$41,031,627 |
$7,913,104 |
19.3% |
Rents & User Fees |
$55,279,462 |
$51,819,711 |
$3,459,751 |
6.7% |
Public Parking |
$29,676,170 |
$33,152,478 |
($3,476,308) |
-10.5% |
Rental Cars |
$16,405,490 |
$16,401,350 |
$4,140 |
0.0% |
Retail, Food & Beverage |
$10,450,264 |
$10,933,784 |
($483,520) |
-4.4% |
Other Passenger Concessions |
$3,842,251 |
$3,946,112 |
($103,861) |
-2.6% |
Non-Passenger Concessions |
$3,391,408 |
$4,298,622 |
($907,214) |
-21.1% |
Other Revenue |
$5,642,610 |
$8,834,595 |
($3,191,985) |
-36.1% |
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Total BWI Operating Revenue |
$173,632,386 |
$170,418,279 |
$3,214,107 |
1.9% |
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MTN Operating Revenue (TTF) |
$7,947,816 |
$9,836,027 |
($1,888,211) |
-19.2% |
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Total TTF Operating Revenue |
$181,580,202 |
$180,254,306 |
$1,325,896 |
0.7% |
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Non-Operating Revenue |
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Customer Facility Charges |
$11,753,710 |
$11,476,856 |
$276,854 |
2.4% |
Passenger Facility Charges |
$40,823,885 |
$45,599,638 |
($4,775,753) |
-10.5% |
Trustee Retained Parking Revenue |
$20,739,468 |
$20,725,973 |
$13,495 |
0.1% |
Interest Income |
$740,777 |
$2,308,967 |
($1,568,190) |
-67.9% |
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Total Non-Operating Revenue |
$74,057,840 |
$80,111,434 |
($6,053,594) |
-7.6% |
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Total MAA Revenue |
$255,638,042 |
$260,365,740 |
($4,727,698) |
-1.8% |
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Maryland Aviation Administration
Statement of Expense
Fiscal Years Ending
June 30, 2009 and 2008 |
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FY 2009 |
FY 2008 |
Difference |
% Change |
BWI Operating Expense (TTF) |
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Salaries and Wages |
$32,485,306 |
$32,327,296 |
$158,010 |
0.5% |
Technical and Special Fees |
$932,244 |
$1,710,460 |
($778,216) |
-45.5% |
Communications |
$1,208,160 |
$1,750,925 |
($542,765) |
-31.0% |
Travel |
$196,819 |
$484,097 |
($287,278) |
-59.3% |
Fuel and Utilities |
$14,780,202 |
$14,289,018 |
$491,184 |
3.4% |
Motor Vehicle Operations |
$2,678,618 |
$1,947,865 |
$730,753 |
37.5% |
Contractual Services |
$73,943,714 |
$78,870,906 |
($4,927,192) |
-6.2% |
Supplies and Materials |
$4,118,341 |
$3,431,231 |
$687,110 |
20.0% |
Replacement Equipment |
$335,780 |
$365,091 |
($29,311) |
-8.0% |
Additional Equipment |
$30,284 |
$387,344 |
($357,060) |
-92.2% |
Grants/Subsidies/Contributions |
$673,981 |
$665,832 |
$8,149 |
1.2% |
MEDCO and COPS Debt Service |
$20,474,077 |
$19,139,505 |
$1,334,572 |
7.0% |
Other Fixed Charges |
$1,837,185 |
$2,434,563 |
($597,378) |
-24.5% |
Land and Structures |
$8,013,235 |
$9,497,445 |
($1,484,210) |
-15.6% |
Total BWI Operating Expense |
$161,707,946 |
$167,301,577 |
($5,593,631) |
-3.3% |
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MTN Operating Expense (TTF) |
$7,792,119 |
$9,820,254 |
($2,028,135) |
-20.7% |
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Total TTF Operating Expense |
$169,500,065 |
$177,121,831 |
($7,621,766) |
-4.3% |
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Non-TTF Debt Service Expense |
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Passenger Facility Charge Backed Debt |
$11,682,442 |
$10,949,720 |
$732,722 |
6.7% |
Customer Facility Charge Backed Debt |
$9,070,361 |
$9,072,142 |
($1,781) |
0.0% |
Parking Debt |
$20,739,469 |
$20,719,219 |
$20,250 |
0.1% |
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Total Non-TTF Debt Service Expense |
$41,492,272 |
$40,741,081 |
$751,191 |
1.8% |
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Total MAA Expense |
$210,992,337 |
$217,862,912 |
($6,870,575) |
-3.2% |
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Regional Aviation |
$296,670 |
$293,835 |
$2,835 |
1.0% |
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Capital Program Expenditures |
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State Funds |
$26,149,243 |
$54,366,816 |
($28,217,573) |
-51.9% |
Federal Funds |
$1,574,623 |
$8,620,190 |
($7,045,567) |
-81.7% |
Other Financing |
$46,800,000 |
$31,126,100 |
$15,673,900 |
50.4% |
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Total Capital Program Expenditures |
$74,523,866 |
$94,113,105 |
($19,589,239) |
-20.8% |
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Note: Federally funded and other reimbursable security related expenses of $434,208 in FY 2007 and $279,945 in FY 2006 are not included in operating expenses shown above |
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Baltimore/Washington International Thurgood Marshall (BWI) and Martin State Airports
Aviation Activity
FY 2009 FY 2008 Difference % Change
BWI Domestic Passengers 19,647,878 20,754,977 -1,107,099 -5.3%
BWI International Passengers 455,565 566,275 -110,710 -19.6%
BWI Total Passengers* 20,103,443 21,321,252 -1,217,809 -5.7%
BWI Aircraft Operations 266,273 290,945 -24,672 -8.5%
MTN Aircraft Operations 72,168 81,190 -9,022 -11.1%
Passenger Activity Comparison
FY 2009
BWI Marshall Dulles Reagan National
Total Commercial Passengers 20,103,443 22,973,573 17,657,601
Percent Change over FY 2008 -5.7% -4.9% -3.7%
Total Regional Market: 2009 2008
60,734,617 63,807,379
NOTE: Statistical data is subject to change as subsequent information is received from airlines.
*Total Passengers include both enplaned and deplaned passengers.
Maryland Aviation Commission Costs for Fiscal Year 2009*
Technical and Special Fees |
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$9,600 |
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Travel Reimbursement to the Commissioners for Meetings and
research and site visits |
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$1,415 |
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Contractual Services:
Public Notice Advertisements for Commission Meetings
Printing – Meeting Transcripts
Food Services |
$ 626
$1,279
$1,230 |
$3,136
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Postage/Delivery/Communications |
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$ 248 |
Supplies |
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$ 39 |
Total Maryland Aviation Commission Cost |
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$14,438 |
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*Fiscal Year 2009: July 1, 2008 to June 30, 2009
Updated 2.12.10
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