ALLEGHENY COUNTY AIRPORT AUTHORITY 2012 BUDGET PROPOSAL FORECASTS AIRLINE RATE REDUCTIONS
PITTSBURGH, PA (October 14, 2011) – The Allegheny County Airport Authority Board of Directors approved the 2012 budget today. The $92.5 million operating budget anticipates a reduction in airline rates while assuming passenger levels remain steady. For the airlines covered by the airport’s airline operating agreement, landing fees will be reduced by 2.84 percent, terminal lease rates decrease by 3.49 percent, and ramp fees decrease by 12.08 percent.
This budget funds the operations of Pittsburgh International Airport and Allegheny County Airport in West Mifflin. Both airports are 100 percent self-sustaining and receive no local tax dollars for funding.
“One of the key goals of my administration has been lowering the cost of operations at Pittsburgh International Airport in order to retain existing airlines and attract new carriers," said Allegheny County Executive Dan Onorato. "Thanks to our efforts in directing more than $100 million in gaming revenue to the airport, restructuring airport parking, and completing major developments on airport property, we are now able to offer significant reductions in airline rates, making Pittsburgh International Airport more competitive and attractive.”
“Reducing the rates helps to lower the airline’s cost of operating at Pittsburgh International Airport. We are fortunate to look ahead to 2012 with a positive forecast. This is made possible because the Airport Authority has better controlled costs and improved revenues. Financial rating agencies’ reports have been positive,” said Glenn R. Mahone, Chairman, Allegheny County Airport Authority.
Airlines at Pittsburgh International Airport provide passenger estimates to the Airport Authority as part of the budget planning process and the projections for passengers are likely to remain at 2011 levels of 4.2 million passengers.
In May 2012, the Authority will look forward to only six years left of long term debt, an important factor noted in reports of positive ratings from Fitch, Moody’s and Standard & Poor’s.
Much of the operating budget is based on aviation safety and security, regulatory issues as well as customer service efforts. The Airport Authority estimates that $7 million of the 2012 operating and maintenance budget is directly related to services that were once provided by the airlines, including the baggage system, the flight information systems, passenger boarding bridge maintenance, ramp snow removal, facility maintenance and common use kiosks. Many of the costs are also related to meeting federal regulations that are mandated by the Federal Aviation Administration and the Department of Homeland Security.
Airline Rates Drop in 2012
|Yearly Signatory Rates
|Landing Fee Rate/1,000 lbs.
||2.84 % decrease
|Terminal Fee Rate/square ft
||3.49 % decrease
|Ramp Fee Rate/lineal ft.
||12.08 % decrease
The Board of Directors also approved the 2012 capital budget of $35.7 million. Funding for the capital budget comes from airport revenues, some federal and state grants and financial loans. In the last five years, capital improvements have focused on rebuilding the infrastructure to keep the airport facilities top notch including new roofs and runway rehabilitation. Project highlights of the 2012 plan include rehabilitation to the people mover trains, replacing guard shacks around the perimeter, and replacing the jersey barriers with bollards on the landside curbs.