ACAA 2014 Budget Forecasts Steady Passenger Levels
October 16, 2013
ALLEGHENY COUNTY AIRPORT AUTHORITY 2014 BUDGET FORECASTS STEADY PASSENGER LEVELS
- RATES LOWERED TO 2008 LEVELS FOR AIRLINES
- COST PER ENPLANED PASSENGERS DROP BELOWS $14
PITTSBURGH, PA (October 16, 2013) – The Allegheny County Airport Authority Board of Directors approved the 2014 budget last week. The $ 95.8 million operating budget anticipates a significant decrease in airline rates while assuming passenger levels remain steady. The reductions were made possible in part by a portion of the lease bonus payment the Authority received from CONSOL Energy in exchange for the rights to drill for natural gas on airport land. The cost per enplaned passenger will drop from $14.11 to $13.92, which takes effect in January. This is in addition to a $0.55 reduction made in July. This rate is also the lowest for the airlines since 2008. For the airlines under the airport’s airline operating agreement, landing fees, ramp fees and terminal lease rates will decrease.
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 to contain costs at Pittsburgh International Airport in order to keep and grow more flights. We are reducing operating costs for airlines which will make the facility even more competitive and marketable,” said Fitzgerald. “Reducing our fees directly impacts the airlines’ cost and can contribute to improving air service in Pittsburgh.”
“We are fortunate to look ahead to 2014 with only a 2 percent increase to our operating budget. This is made possible because the Airport Authority has better controlled costs and improved revenues,” said David Minnotte, 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 enplaned passengers are likely to remain at 2013 levels of 4.1 million passengers.
Much of the operating budget is based on aviation safety and security, regulatory issues as well as customer service efforts. $7 million of the 2014 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 in 2013
|Yearly Signatory Rates
|Landing Fee Rate/1,000 lbs.
|Terminal Fee Rate/square ft
|Ramp Fee Rate/lineal ft.
|Cost Per Enplaned Passenger
The Board of Directors also approved the 2014 capital budget of $41.5 million. Funding for the capital budget comes from airport revenues, some federal and state grants and Authority-issued debt. 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.