Backup — original pdf

Backup

Regular Meeting of the Airport Advisory Commission December 8, 2020 Airport Advisory Commission to be held December 8, 2020 with Social Distancing Modifications Public comment will be allowed via telephone; no in-person input will be allowed. All speakers must register in advance (12/07/2020 by noon). All public comment will occur at the beginning of the meeting. To speak remotely at the December 8, 2020 Airport Advisory Commission Meeting, residents must: •Call or email the board liaison at (512) 530-6605 or ammie.calderon2@austintexas.gov no later than noon, (the day before the meeting). The information required is the speaker name, item number(s) they wish to speak on, whether they are for/against/neutral, and a telephone number or email address. •Once a request to speak has been called in or emailed to the board liaison, residents will receive either an email or phone call providing the telephone number to call on the day of the scheduled meeting. •Speakers must call in at least 15 minutes prior to meeting start in order to speak, late callers will not be accepted and will not be able to speak. •Speakers will be placed in a queue until their time to speak. •Handouts or other information may be emailed to ammie.calderon2@austintexas.gov by Noon the day before the scheduled meeting. This information will be provided to Board and Commission members in advance of the meeting. •If this meeting is broadcast live, residents may watch the meeting here: http://www.austintexas.gov/page/watch-atxn-live Reunión del Airport Advisory Commisson (December 8, 2020) La junta se llevará con modificaciones de distanciamiento social Se permitirán comentarios públicos por teléfono; no se permitirá ninguna entrada en persona. Todos los oradores deben registrarse con anticipación (12/7/2020 antes del mediodía). Todos los comentarios públicos se producirán al comienzo de la reunión. Para hablar de forma remota en la reunión, los residentes deben: • Llame o envíe un correo electrónico al enlace de la junta en (512) 530-6605 or ammie.calderon2@austintexas.gov a más tardar al mediodía (el día antes de la reunión). La 1información requerida es el nombre del orador, los números de artículo sobre los que desean hablar, si están a favor / en contra / neutrales, y un número de teléfono o dirección de correo electrónico. • Una vez que se haya llamado o enviado por correo electrónico una solicitud para hablar al enlace de la junta, los residentes recibirán un correo electrónico o una llamada telefónica con el número de teléfono para llamar el día de la reunión programada. • Los oradores deben llamar al menos 15 minutos antes del inicio de la reunión para poder hablar, no se aceptarán personas que llamen tarde y no podrán hablar. • Los oradores se colocarán en una fila hasta que llegue el momento de hablar. información pueden enviarse por correo electrónico a • Los ammie.calderon2@austintexas.gov antes del mediodía del día anterior a la reunión programada. Esta información se proporcionará a los miembros de la Junta y la Comisión antes de la reunión. • Si esta reunión se transmite en vivo, los residentes pueden ver la reunión aquí: http://www.austintexas.gov/page/watch-atxn-live folletos u otra 2 AIRPORT ADVISORY COMMISSION MEETING DECEMBER 8, 2020 5:30 PM VIA VIDEOCONFERENCING CURRENT BOARD MEMBERS: Eugene Sepulveda, Chair Scott Madole, Vice-Chair Vicky Sepulveda, Secretary Wendy Price Todd Michael Watry Ernest Saulmon Brian Stoller Billy Owens Frank Maldonado Jeremy Hendricks Jonathan Coon AGENDA CALL TO ORDER CITIZEN COMMUNICATION: GENERAL The first three (3) speakers who register to speak no later than noon the day before the meeting will be allowed a three-minute allotment to address their concerns regarding items not posted on the agenda. 1. APPROVAL OF MINUTES November 10, 2020 - Meeting 2. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS a) Chief Executive Officer’s Report (Prepared by Jacqueline Yaft, Chief Executive Officer) b) AUS October, 2020 Financial Results (Prepared by Rajeev Thomas, Deputy Chief – Finance) c) AUS Air Service Update (Prepared by Jamy Kazanoff, Air Service Development) 33. ACTION ITEMS a) Discuss and approve the establishment of the Airport Advisory Commission finance working group, the participating Board members, and delegating defined matter(s) for consideration and recommendation, pursuant to Section 2-1-2 of the City Code. 4. FOR RECOMMENDATION No Items 5. DEPARTMENT OF AVIATION VERBAL BRIEFINGS a) AUS Passenger Satisfaction Survey Results (Presented by Mandy McClendon – Program Manager, Public Information) b) Fiscal Year 2021 Forecast and Budget Update (Presented by Rajeev Thomas – Deputy Chief, Finance) c) Terminal Concessions Program Update (Presented by Mookie Patel – Chief, Business & Finance) a) Review of Commission Recommendations and Actions to discuss with appointing 6. NEW BUSINESS City Council Member b) Future Agenda Items c) Next scheduled meeting January 12, 2021 5:30 PM. 4ADJOURNMENT The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Tracy Thompson at (512) 530-5023. 5 AIRPORT ADVISORY COMMISSION ITEM 1. APPROVAL OF MINUTES NOVEMBER 10, 2 020 - MEETING 6 AIRPORT ADVISORY COMMISSION REGULAR MEETING MINUTES TUESDAY, NOVEMBER 10, 2020 The Airport Advisory Commission convened in a Virtual Regular Meeting on Tuesday, November 10, 2020. CALL TO ORDER Eugene Sepulveda, Chair called the Commission Meeting to order at 5:32 p.m. Billy Owens Wendy Price Todd Commission Members in Attendance: Eugene Sepulveda – Chair Scott Madole – Vice-Chair Vicky Sepulveda - Secretary Jeremy Hendricks Michael Watry Jonathan Coon Ernest Saulmon Brian Stoller Commission Members Absent: Frank Maldonado Aviation Staff in Attendance: Tracy Thompson Ammie Calderon Rajeev Thomas CITIZENS COMMUNICATIONS: Brian Long Jamy Kazanoff None 1. APPROVAL OF MINUTES a) The minutes from the meeting of September 28, 2020 were approved on Commission Member Hendricks’ motion, Commission Member Saulmon seconds on a vote. Motion passed on passed on a 9-0-0-2 vote. Commission Members Stoller, and Maldonado were absent at this vote. 72. DEPARTMENT OF AVIATION STAFF WRITTEN BRIEFINGS a) Chief Executive Officer’s Report (Prepared by Jacqueline Yaft, Chief Executive Officer) b) AUS September 2020 Financial Results (Prepared by Rajeev Thomas, Deputy Chief – Finance) c) AUS Air Service Update (Prepared by Jamy Kazanoff, Air Service Development) 3. ACTION ITEMS a) Discuss and approve a Regular Meeting Schedule for the Airport Advisory Commission for calendar year 2021. Meetings will be held virtually until such time as the City Clerk notifies the Department of Aviation that in-person meetings are authorized. The month following such notification, meetings will cease to be virtual and will be held in-person at Austin- Bergstrom International Airport, at 2716 Spirit of Texas Drive, Room No. 174-A, Austin, Texas. (Note: Once in-person meetings are authorized, the Airport Advisory Commission Meeting start time is subject to change as approved by the Airport Advisory Commission.) A motion to approve was made by Commission Member Hendricks’ motion, Commission Member Watry seconds on a vote. Motion passed on a 9-0-0-2 vote. Commission Members Stoller, and Maldonado were absent at this vote. b) Discuss and approve the establishment of the Airport Advisory Commission working group, the participating Board members, and delegating defined matter(s) for consideration and recommendation, pursuant to Section 2-1-2 of the City Code. A motion to approve was made by Commission Member E. Sepulveda’s motion, Commission Member Saulmon seconds on a vote. Motion passed on a 9-0-0-2 vote. Commission Members Stoller, and Maldonado were absent at this vote. c) Discuss and approve revisions to the Airport Advisory Commission Bylaws. A motion to approve was made by Commission Member Madole’s motion, Commission Member Saulmon seconds on a vote. Motion passed on a 9-0-0-2 vote. Commission Members Stoller, and Maldonado were absent at this vote. 84. FOR RECOMMENDATION No Items 5. DEPARTMENT OF AVIATION VERBAL BRIEFINGS a) Fiscal Year 2020 Year End Financial Recap (Presented by Rajeev Thomas – Deputy Chief, Finance) Commission Member V. Sepulveda requested an update on open and closed concessionaires since March 2020. b) Hilton Hotel Update (Presented by Tracy Thompson – Chief, Admin. & External Affairs and Rajeev Thomas, Deputy Chief – Finance) a) Review of Commission Recommendations and Actions to discuss with appointing City 6. NEW BUSINESS Council Member b) Future Agenda Items ADJOURNMENT The following items were presented for consideration; Update on the Food and Beverage Program, Update on the South Terminal Program, Update on the Airport Environmental Program, Update on Fiscal Year 2021 Financial Forecast, Update on COVID impacts on Airport Operations c) Next scheduled meeting December 8, 2020 at 5:30 p.m. Eugene Sepulveda, Chair adjourned the meeting at 7:09 p.m. The City of Austin is committed to compliance with the Americans with Disabilities Act. Reasonable modifications and equal access to communications will be provided upon request. Meeting locations are planned with wheelchair access. If requiring Sign Language Interpreters or alternative formats, please give notice at least 2 days before the meeting date. Please call Ammie Calderon, Aviation Department, at (512) 530-6605 for additional information; TTY users route through Relay Texas at 711. For more information on the Airport Advisory Commission, please contact Tracy Thompson at (512) 530-5023. 9AIRPORT ADVISORY COMMISSION MEETING 5:30 PM VIA VIDEOCONFERENCE 2021 MEETING DATES January 12, 2021 February 9, 2021 March 9, 2021 April 13, 2021 May 11, 2021 June 8, 2021 July 13, 2021 August 10, 2021 September 14, 2021 October 12, 2021 November 9, 2021 December 14, 2021 10 AIRPORT ADVISORY COMMISSION ITEM 2. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS a) Chief Executive Officer’s Report (Prepared by Jacqueline Yaft, Chief Executive Officer) 11 MEMORANDUM TO: Chair Eugene Sepulveda and Airport Advisory Commissioners FROM: Jacqueline Yaft, Chief Executive Officer, Department of Aviation DATE: December 8, 2020 SUBJECT: Austin-Bergstrom International Airport (AUS) Update To keep Airport Advisory Commission members apprised of updates from the Department of Aviation, we intend to share monthly updates with you. Please accept the following the memo as the latest update from Aviation staff. We thank you for your continued support, especially as AUS navigates the challenges we face due to the pandemic. Austin-Bergstrom International Airport remains as committed to the health and safety of passengers and employees as ever and we continue to implement health and safety protocols and make operational changes as we adapt to the pandemic. We look forward to providing you with regular updates of our operations. Update on Thanksgiving travel Around the Thanksgiving holiday, AUS saw some of its busiest days since the pandemic began. The Sunday following Thanksgiving saw the largest passenger volume since March 15, with 12,248 passengers going through our TSA checkpoints. The weekend prior to Thanksgiving saw multiple consecutive days of over 10,000 passengers for the first time since March. In addition to Sunday, November 29th, several of the days surrounding the Thanksgiving holiday were in the top five busiest we’ve seen since the pandemic severely cut back our passenger traffic. Of course, this increased demand around the holidays is not only a positive signal toward passenger confidence, but it also provides a much-needed boost to our non- aeronautical sources of revenue, such as concessions and parking. In fact, the AUS Blue Garage reached its full capacity on the November 27th. We anticipate that holiday travel will once again increase around the Christmas holiday. 12While this increase in travel is certainly positive for the airport, we continue to work with our partners, including Austin Public Health, to educate passengers about how to travel responsibly. No matter how many passengers come through our doors—whether 500 or 12,000—we take the same precautions daily to provide a safe, positive experience for our customers. AUS Travel Safely Survey Results Throughout September and October 2020, AUS conducted a survey to collect feedback from passengers who have traveled through AUS since the start of the COVID-19 pandemic. Over 790 responses were received from online surveys and in-person surveys. Survey responses indicate high levels of passenger confidence in AUS’s efforts to ensure a healthy and safe environment. Over 95% of respondents agreed that AUS is taking the necessary precautions to ensure the health and safety of passengers while nearly 80% indicated they feel that air travel is safe. The leading factors that respondents cited for feeling safe and confident in AUS were the cleanliness of AUS facilities, mask wearing by fellow passengers and staff and physical distancing between others. Over half of the respondents indicated they had plans to fly before the end of the year. The findings of this survey have been used to develop a social media campaign and other public-facing communication pieces and will be used to evaluate opportunities to provide additional services to passengers. COVID-19 Financial Impact The FY21 revised revenue outlook based on lower passenger forecast has been finalized. The FY21 revised expense forecast was also finalized with $5.4M reduction in expenses versus FY21 budget. The expense reduction measures that are currently in place will continue for the foreseeable future until passenger activity shows signs of a significant uptrend. Overtime, travel and training, office supplies, consulting, contracts and other discretionary items remain at a reduced level. All divisions did well managing and controlling expenses in FY20, and have been asked to continue to do so in FY21. Air Service The Department has issued Airport Use and Lease Agreement Amendments to all of the current Signatory Airlines providing the extension of the initial term of the agreement to align with the expiration of the FY21 budget year. This short extension was required to reflect the agreement with the Signatory Airlines that the Agreement expiration would extended as a result of the nine-gate expansion to the Barbara Jordan 13Terminal. The amendment future allows for an additional extension of the agreement by one year to expire 9/30/22. This additional extension would allow the Airport and Airlines to finalize the terms to be included in a new use and lease agreement for a stated, longer term. Should both parties need additional time to develop a new use and lease agreement or economic conditions still prevent the Signatory Airlines from signing long term agreements, then the Executive Director has the sole discretion to extend the existing agreement through 9/30/23. Both the City and the Signatory Airlines worked in cooperation to agree to the terms of the extension. As of this date, Southwest Airlines has executed the amendment document, and we have no reason to believe any other Signatory Airline will reject the terms at this time. Airport Concessions As passenger traffic continues to increase and state and local governments continue to modify guidelines for restaurant and retail business operations, AUS concessionaires are adjusting their hours of operations and are continuing to reopen some previously suspended venues based on actual and projected traffic flows and gate re-openings. Select concessions had limited availability on Thanksgiving Day. We continue to provide passengers with updated concession offerings and availability through AUS social media platforms, website and external newsletter. Airport Planning, Environmental and Maintenance AUS and Austin Energy continue to partner on the development of the solar panel array located on the top level of the Blue Garage. Construction and installation of over 6,500 solar panel modules has completed, and the top level of the garage has now opened, making over 620 parking spaces available for use. We anticipate the panels will be operational and will start to supply power to Austin Energy’s Community Solar program in January 2021. Current Airport Construction & Airport Expansion Program The East runway is now scheduled to reopen in early to mid-December, pending any unforeseen delays. All aircraft traffic will take off and land on the reopened runway as work begins on the West runway. The East runway will reopen as 17L-35R. The runways will both debut their new names at the same time upon completion and the reopening of the West runway. West runway construction is anticipated to last six months. 14Operations The AUS Safety Ambassador program was launched during the Thanksgiving holiday travel time. From November 18 through December 2, Department of Aviation staff who are not involved in daily terminal operational duties canvassed the terminal to remind passengers of following proper mask and physical distancing policies. ABIA Parking continues to offer special discounted rates for the Red and Blue Garages while Economy Parking and valet services are temporarily suspended. Tram service between the Blue Garage, rideshare/taxi pick-up and drop-off and the Barbara Jordan Terminal has resumed and will operate through the holidays until early January. Physical distancing measures are in place and passengers must wear masks while on the tram. The AUS Live and Instrumental music series has been postponed and will resume at a later date as all live music performances have been canceled in accordance with the Stage 4 risk-based guidelines from Austin Public Health. Status of Airport Advisory Commission Amended Bylaws The City Clerk’s Office indicated that the amended Bylaws for the AAC is not on the agenda for the next meeting of the Audit and Finance Committee for review and approval, but is slated to be on the agenda for the following meeting. Airport staff will provide updates as to the progress for the City Council approval as information is received. For up to date information on the Airport, please continue to check our website at www.austintexas.gov/airport. Please stay healthy and strong. 15 AIRPORT ADVISORY COMMISSION ITEM 2. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS b) AUS October, 2020 Financial Results (Prepared by Rajeev Thomas, Deputy Chief – Finance) 16 MEMORANDUM TO: Airport Advisory Commissioners FROM: Rajeev Thomas, Deputy Chief - Finance, Aviation Department DATE: December 1, 2020 SUBJECT: Austin-Bergstrom International Airport (AUS) Update COVID-19 Financial Impact and October 2020 Financial Results October’s passenger numbers were low compared to prior year, due to world- wide government restrictions on travel and virus resurgence across the country. AUS experienced a passenger decline of 67.7% in October compared to last year. October’s daily enplaned passengers averaged 8.1k, while October 2019 averaged 25.1k. Please find attached the October 2020 financial results for AUS. As you will see, October 2020 enplanements were 67.66% lower, or 526,573, below October 2019. Cargo volume increased 29.6% versus October 2019 due to five full months of Amazon service. Excluding mail and belly freight, cargo volume is up 48.0% over prior year October. Prior year cargo volume included Formula 1 cargo, and cargo volume excluding mail and belly freight has been trending upwards for the past five months Operating revenues decreased 37.5% over the prior year month or ($6.3M). Year to Date revenues are 1.9% lower or ($0.2M) below budget. The lower revenues were driven by lower landing weights (down 55%) as well as less parking and ground transportation services provided. Lower revenues are also a result of lower food, beverage, and retail concessions as well as rental car revenues and other rentals and fees. We remain vigilant on maximizing operational efficiencies and streamlining our budgets. Accordingly, October’s aviation related operating expenses were $0.4M 17favorable to the budget YTD, and 6.4% or $0.6M lower than prior YTD. The City of Austin allocated costs were in line with the airport’s budget and debt service costs were as forecasted. Overall, October 2020 net income was ($3.6M) versus $2.7M for October 2019. YTD net income is ($3.6M) and ($6.3M) lower than prior year due to lower revenue ($6.3M). Net income October YTD is $0.2M higher than budgeted. The Airport received $3.7M in Cares Act reimbursement funds for debt service in October; which is not reflected in the numbers above. Attachments: October 2020 - AAC Financial Report 18CITY OF AUSTIN AUSTIN-BERGSTROM INTERNATIONAL AIRPORT Airport Operating Fund 5070 Income Statement - For Internal Use Only Fiscal Year to Date for 1 Month(s) ended October 31, 2020 FY 2021 Amended Budget Budget Seasonalized 1 month(s) FY 2021 CYE CYE Seasonalized 1 month(s) Year to Date w/ Accruals Variance Fav (Unfav) % Variance Fav (Unfav) Variance Fav (Unfav) % Variance Fav (Unfav) Y-T-D to Budget Y-T-D to CYE 1,208,114 125,320,092 100,676 10,638,183 318,429 126,286,406 26,536 10,326,056 23,130 10,437,704 16,720,000 37,697,000 54,417,000 21,107,271 4,487,041 11,069,553 11,467,350 5,215,748 1,750,000 14,598,015 69,694,978 59,744,143 5,391,192 25,641,391 8,046,651 98,823,377 507 5,412,895 7,077,844 10,034,715 15,470,348 8,471,750 46,468,059 435,740 6,328,330 1,879,259 166,126 350,754 307,939 301,150 3,793,554 13,562,852 1,485,205 3,173,314 4,658,519 1,848,394 403,945 1,036,217 941,641 467,634 149,121 1,032,037 5,878,988 5,812,356 558,511 2,561,015 659,692 9,591,575 42 450,678 589,557 836,226 1,366,154 474,021 3,716,679 36,312 527,361 156,605 13,844 29,230 25,662 25,096 316,130 1,130,238 17,426,753 43,679,223 61,105,976 18,337,134 2,019,053 11,026,850 11,553,113 5,215,748 1,897,783 14,812,320 64,862,001 57,964,074 5,303,206 25,759,382 4,329,647 93,356,309 507 5,412,895 7,077,844 10,034,715 15,459,157 8,471,751 46,456,869 435,740 6,328,330 1,879,259 166,126 350,754 307,939 301,150 3,793,554 13,562,852 1,444,258 3,830,177 5,274,435 1,257,283 134,270 918,904 962,759 434,646 158,149 1,159,074 5,025,086 5,622,211 548,367 2,551,423 370,042 9,092,043 42 450,678 589,557 836,226 1,365,147 474,021 3,715,672 36,312 527,361 156,605 13,844 29,230 25,662 25,096 316,130 1,130,238 1,443,769 3,817,304 5,261,072 1,292,799 162,154 945,110 898,497 506,176 162,321 1,186,445 5,153,502 5,387,476 434,187 3,053,141 320,096 9,194,900 42 450,678 589,557 836,226 1,364,846 474,021 3,715,371 36,312 527,361 156,605 13,844 29,230 25,662 25,096 316,130 1,130,239 (41,436) 643,990 602,554 (555,595) (241,791) (91,107) (43,144) 38,542 13,201 154,408 (725,487) (77,546) (200,479) 424,881 124,324 (492,127) 339,596 396,675 0 0 0 0 1,308 0 1,308 (0) 0 (0) 0 0 (0) (0) 0 (1) (2.8%) 20.3% 12.9% (30.1%) (59.9%) (8.8%) (4.6%) 8.2% 8.9% 15.0% (12.3%) (77.0%) (1.9%) 7.3% 22.3% (19.2%) 51.5% 4.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% (0.0%) 0.0% (0.0%) 0.0% 0.0% (0.0%) (0.0%) 0.0% (0.0%) (489) (12,873) (13,362) 35,515 27,883 26,206 (64,262) 71,530 4,173 27,370 128,416 (3,405) 111,648 234,735 114,180 (501,718) 49,946 (102,857) 0 0 0 0 302 0 302 (0) 0 (0) 0 0 (0) (0) 0 (1) (0.0%) (0.3%) (0.3%) 2.8% 20.8% 2.9% (6.7%) 16.5% 2.6% 2.4% 2.6% (12.8%) 1.1% 4.2% 20.8% (19.7%) 13.5% (1.1%) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% (0.0%) 0.0% (0.0%) 0.0% 0.0% (0.0%) (0.0%) 0.0% (0.0%) 0 REVENUE AIRLINE REVENUE Landing Fees Terminal Rental & Other Fees TOTAL AIRLINE REVENUE NON-AIRLINE REVENUE Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees TOTAL NON-AIRLINE REVENUE Interest Income TOTAL REVENUE OPERATING REQUIREMENTS Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services GO Debt Service Fund 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money TOTAL Net Debt Service OTHER REQUIREMENTS Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll Additional Retirement Contribution CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund TOTAL OTHER REQUIREMENTS EXCESS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS TOTAL OPERATING EXPENSES Debt Service TOTAL REQUIREMENTS 158,854,288 14,438,491 153,376,030 13,937,953 14,040,509 397,982 2.8% (102,556) (0.7%) (33,534,196) (3,800,308) (27,089,624) (3,611,897) (3,602,805) 197,503 (5.2%) 9,092 (0.3%) CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) TOTAL CARES ACT REIMBURSEMENT 0 (30,950,446) (30,950,446) 0 (2,579,204) (2,579,204) 0 (30,950,446) (30,950,446) 0 (2,579,204) (2,579,204) 0 (3,715,328) (3,715,328) 0 1,136,124 1,136,124 N/A (44.0%) (44.0%) 0 1,136,124 1,136,124 N/A (44.0%) (44.0%) EXCESS (DEFICIT) OF TOTAL AFTER CARES ACT (2,583,750) (1,221,104) 3,860,822 (1,032,693) 112,523 1,333,627 (109.2%) 1,145,216 (110.9%) Note: Columns may not add to totals shown because of rounding ENPLANEMENTS October, 2020 (Month over Month) October, 2020 - Year-to-Date Passengers % Inc/(Dec) 251,734 251,734 -67.66% -67.66% 19AUSTIN-BERGSTROM INTERNATIONAL AIRPORT INCOME STATEMENT COMPARISON THIS YEAR VS. LAST YEAR CITY OF AUSTIN This month - This Year vs. Last Year FY21 (Oct 20) vs FY20 (Oct 19) Fiscal YTD - This Year vs. Last Year FY21 (Oct 20 - Oct 20) vs FY20 (Oct 19 - Oct 19) FY21 Oct-20 FY20 Oct-19 Fav (Unfav) $ Variance Fav (Unfav) % Variance FY21 YTD Oct-20 FY20 YTD Oct-19 Fav (Unfav) $ Variance Fav (Unfav) % Variance 23,130 10,437,704 129,013 16,699,133 23,130 10,437,704 129,013 16,699,133 1,443,769 3,817,304 5,261,072 1,259,119 162,154 945,110 898,497 506,176 162,321 1,220,125 5,153,502 5,387,476 434,187 3,053,141 320,096 9,194,900 42 450,678 589,557 836,226 1,364,846 474,021 3,715,371 36,312 527,361 156,605 13,844 29,230 0 25,662 25,096 316,130 1,130,239 3,072,429 4,349,241 7,421,670 3,799,182 667,041 1,429,559 1,094,916 491,081 265,805 1,400,866 9,148,450 5,956,672 467,712 2,252,636 1,147,650 9,824,670 0 451,300 589,623 788,116 892,266 165,650 2,886,955 38,282 479,138 151,494 29,543 0 283,342 17,126 26,436 283,281 1,308,641 (1,628,660) (531,938) (2,160,597) (2,540,064) (504,887) (484,449) (196,419) 15,095 (103,484) (180,742) (3,994,948) (105,882) (6,261,428) 569,197 33,524 (800,505) 827,554 629,770 (42) 622 66 (48,110) (472,580) (308,371) (828,415) 1,970 (48,223) (5,111) 15,699 (29,230) 283,342 (8,536) 1,340 (32,849) 178,403 (53.0%) (12.2%) (29.1%) (66.9%) (75.7%) (33.9%) (17.9%) 3.1% (38.9%) (12.9%) (43.7%) (82.1%) (37.5%) 9.6% 7.2% (35.5%) 72.1% 6.4% N/A 0.1% 0.0% (6.1%) (53.0%) (186.2%) (28.7%) 5.1% (10.1%) (3.4%) 53.1% N/A 100.0% (49.8%) 5.1% (11.6%) 13.6% 1,443,769 3,817,304 5,261,072 1,259,119 162,154 945,110 898,497 506,176 162,321 1,220,125 5,153,502 5,387,476 434,187 3,053,141 320,096 9,194,900 42 450,678 589,557 836,226 1,364,846 474,021 3,715,371 36,312 527,361 156,605 13,844 29,230 0 25,662 25,096 316,130 1,130,239 3,072,429 4,349,241 7,421,670 3,799,182 667,041 1,429,559 1,094,916 491,081 265,805 1,400,866 9,148,450 5,956,672 467,712 2,252,636 1,147,650 9,824,670 0 451,300 589,623 788,116 892,266 165,650 2,886,955 38,282 479,138 151,494 29,543 0 283,342 17,126 26,436 283,281 1,308,641 (1,628,660) (531,938) (2,160,597) (2,540,064) (504,887) (484,449) (196,419) 15,095 (103,484) (180,742) (3,994,948) (105,882) (6,261,428) 569,197 33,524 (800,505) 827,554 629,770 (42) 622 66 (48,110) (472,580) (308,371) (828,415) 1,970 (48,223) (5,111) 15,699 (29,230) 283,342 (8,536) 1,340 (32,849) 178,403 (53.0%) (12.2%) (29.1%) (66.9%) (75.7%) (33.9%) (17.9%) 3.1% (38.9%) (12.9%) (43.7%) (82.1%) (37.5%) 9.6% 7.2% (35.5%) 72.1% 6.4% N/A 0.1% 0.0% (6.1%) (53.0%) (186.2%) (28.7%) 5.1% (10.1%) (3.4%) 53.1% N/A 100.0% (49.8%) 5.1% (11.6%) 13.6% (3,602,805) 2,678,866 (6,281,671) (234.5%) (3,602,805) 2,678,866 (6,281,671) (234.5%) 0 (3,715,328) (3,715,328) 0 0 0 0 3,715,328 3,715,328 N/A N/A N/A 0 (3,715,328) (3,715,328) 0 0 0 0 3,715,328 3,715,328 N/A N/A N/A Airline Revenue Landing Fees Terminal Rental & Other Fees Total Airline Revenue Non-Airline Revenue Parking Ground Transportation for Hire Rental Cars Food & Beverage Retail Advertising Other Concessions, Rentals & Fees Total Non-Airline Revenue Interest Income Total Operating Revenue Operating Requirements Fac Mgmt, Ops and Airport Security Airport Planning and Development Support Services Business Services Total Operating Expense Debt Service GO Debt Service Fund 2013 Prosperity Bank Loan 2014 Bond Issuance 2017 Bond Issuance 2019 Refunding Bonds 2019 New Money Total Debt Service Other Requirements Workers' Compensation Citywide Administrative Support Communications & Technology Mgmt Accrued Payroll Additional Retirement Contribution Operating Reserve CTECC Trunked Radio Allocation Public Works Capital Projects Mgmt Fund Total Other Requirements SURPLUS (DEFICIT) OF TOTAL AVAILABLE FUNDS OVER TOTAL REQUIREMENTS CARES Act Reimbursement (Parking) CARES Act Reimbursement (Debt Service) Total CARES Act Total Requirements 14,040,509 14,020,266 (20,243) (0.1%) 14,040,509 14,020,266 (20,243) (0.1%) TOTAL SURPLUS (DEFICIT) AFTER CARES ACT 112,523 2,678,866 (2,566,343) (95.8%) $ 112,523 $ 2,678,866 $ (2,566,343) (95.8%) Note: Columns may not add to totals shown because of rounding 20 AIRPORT ADVISORY COMMISSION ITEM 2. DEPARTMENT OF AVIATION WRITTEN STAFF BRIEFINGS c) AUS Air Service Update (Prepared by Jamy Kazanoff, Air Service Development) 21December 2020 Air Service Snapshot After years of record growth, AUS was affected by carrier capacity (seats) cuts due to COVID-19. All carriers significantly reduced capacity at all U.S. airports in Spring 2020. Since then, carriers have slowly reinstated some capacity. The chart below shows the peak of capacity cuts: in May 2020, AUS monthly seat capacity was down 77% compared to May 2019. Year-over-year (YOY) capacity recovered slightly during the summer but since then has plateaued at down 50% to 60%. January 2021 schedules have not been adjusted downward by all carriers yet. Carriers will increase capacity about 9% in the second half of December compared earlier in the month for the holidays. The map provides a summary of service changes at AUS between December 2019 and December 2020. All AUS’s international destinations were suspended due to border closures or sharp drops in demand. Cancun and San Jose del Cabo have since been reinstated. Nine domestic markets were suspended during the spring lockdown and have been restored. Remaining domestic service suspensions include the following categories: Larger airports to which service is expected to be reinstated eventually (Philadelphia, Portland) • • Possible longer-term suspensions to secondary airports (Ontario in the L.A. Basin, Sanford in Orlando) • Possibly permanent suspensions (Lubbock, Taos) Allegiant has two new destinations compared to December 2019: Knoxville and Memphis. 22 Low cost and legacy carriers have similar December YOY results: low cost carrier seat capacity is down 52%, with legacy seat capacity down 54%. Frontier has the largest capacity decrease of the low cost carriers, down 64%, followed by Southwest and Spirit, each down 53% compared to December 2019. Of the legacy carriers, Alaska cut the most capacity, down 63% YOY. American and United are both down about 55%, and Delta is down 41%. AUS capacity market shares by airline in December 2020 are very similar to December 2019. WN- Southwest AA- American DL-Delta UA-United NK-Spirit B6- JetBlue AS-Alaska F9- Frontier G4- Allegiant NC means no change 12/1/2020 Jamy Kazanoff 23 AIRPORT ADVISORY COMMISSION ITEM 5. DEPARTMENT OF AVIATION VERBAL STAFF BRIEFINGS a) AUS Passenger Satisfaction Survey Results (Prepared by Mandy McClendon, Program Manager, Public Information) 24AUS Travel Safely Survey Summary of Passenger Feedback Throughout September 2020 and October 2020, Austin-Bergstrom International Airport conducted the AUS Travel Safely survey to collect feedback from passengers who have traveled through AUS since the start of the COVID-19 pandemic. This report summarizes input received from both the online survey and paper surveys that were provided to passengers in the terminal. Over 790 responses were received and analyzed to evaluate opportunities to help AUS create a new kind of travel experience. Disagree 4.9% How would you rate your overall satisfaction with your last experience at AUS? Overall Satisfaction Good 16% Very Good 36.5% Excellent 42% 0 A majority of passengers had positive feedback about their overall satisfaction levels. 5.5% of passengers rated their satisfaction level as either fair or poor. 250 500 The top 3 factors that help passengers feel safe are: A majority of passengers agree that "AUS is taking the necessary precautions to help ensure my health and safety while in the airport." Agree 95.1% Cleanliness of AUS facilities Passengers and employees wearing face masks Physical distancing by employees and other passengers 25AUS Travel Safely Survey Summary of Passenger Feedback According to passengers, the top health & safety features or protocols AUS should provide are: Hand sanitizer stations Clean restrooms Hand sanitizer stations can be found at every entrance and exit and throughout the terminal, before and after security. Our restrooms are cleaned every 90 minutes and deep-cleaned every night. Frequent cleaning of high touch areas Air filtration systems We have increased how often we clean high-touch areas throughout the day. An on-call disinfectant team is available around the clock for decontamination and deep-cleaning when necessary. We use robust air ventilation and filtering through our HVAC system to reduce virus transmission. There is a constant supply of fresh, outdoor air and up to 7 air changes per hour to filter and refresh indoor air. 79% of all respondents said they feel that flying is safe after traveling. More than 50% of respondents who were concerned about flying before their trip felt that flying is safe after they traveled. 52% of all respondents said they plan to fly again before the end of the year. 26 AIRPORT ADVISORY COMMISSION ITEM 5. DEPARTMENT OF AVIATION VERBAL STAFF BRIEFINGS b) Fiscal Year 2021 Forecast and Budget Update (Presented by Rajeev Thomas – Deputy Chief, Finance) 27AUS Fiscal Year 2021 Outlook 28CY20 Passenger Trend 1 29CY20 Passenger Trend 2 30FY21 STATS 3 31FY21 Forecasted Enplanements 4 32FY21 Forecasted Enplanements 5 3.7M enplanements forecasted for FY21 versus 5.76M in budget Thru 1st half of 2021, Moody’s expects 25-45% of 2019 volumes. AUS projections are 37% thru June 2021 33A4A estimate of passenger recovery AUS CY Forecast (48.4%) - 4.5M pax 6 34Moody’s CY21 forecast Moody’s: “With the high level of uncertainty, we have a larger range of outcomes for 2021 than we would typically project in our outlook. For the full year, we think enplanements will be 30% to 60% of 2019 volumes.” 7 35FY21 Business Travel effect Assuming 35%/65% business/leisure travel split for AUS Business travel effect (source: Forbes) Min - Decline Max - Decline % Decline 19% 36% Effect on FY21 enplanements (243,945) (462,212) FY21 Enplanement forecast = 3,668,352, business travel included 8 36FY21 OPEX FY21 BUD FY21 CYE FY20 ACT FY21 BUD v CYE B/(W) FY21 CYE v FY20 ACT B/(W) Airport Expenses: $98,823,377 $93,356,309 $99,453,068 $5,467,068 $6,096,759 • Airport expenses reduced by $5.5M vs FY21 Budget. FY21 expense outlook $6.1M less than FY20. City Allocations staying the same versus budget. • • 9 37FY21 REVENUES Revenue FY21 BUD FY21 CYE Variance Airline Revenue Non Airline Revenue Interest Total Revenue $54.4 $69.7 $1.2 $125.3 $61.1 $64.9 $0.3 $126.3 $6.7 ($4.8) ($0.9) $1.0 Terminal Rental rates better than budget Non Airline revenue decline due to lower passenger forecast Interest revenue down due to lower fed rates 10 38FY21 OUTLOOK Revenue FY21 BUD FY21 CYE Variance Airline Revenue Non Airline Revenue Interest Total Revenue Operating Expenses Operating Expenses - Aviation Operating Expenses - City Debt Service (Net of PFC) Total Requirements $54.4 $69.7 $1.2 $125.3 $98.8 $13.6 $46.5 $158.9 $61.1 $64.9 $0.3 $126.3 $93.4 $13.6 $46.5 $153.4 Net Income ($33.5) ($27.1) Enplanements 11 5,757,829 3,668,352 $6.7 ($4.8) ($0.9) $1.0 $5.5 $0.0 $0.0 $5.5 $6.4 • Non Airline revenue assumes MAG’s from concessions per the agreements. • Landing fee rate is held flat but might need to be raised if revenues are below estimates FY21 Budget: DSCR of 1.33 39CONRAC 12 40Current Outstanding Debt Summary _______________ Debt outstanding as of September 30, 2020. Debt service shown on a cash basis. 41Restructuring Options – Prelim estimates _______________ Assumes rates as of 12/3/20. Debt service shown on a cash basis. 4215 43