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AIRPORTS COUNCIL INTERNATIONAL - NORTH AMERICA FALL BOARD OF DIRECTORS MEETINGS

SEPTEMBER 16, 2017 // FORT WORTH, TEXAS 2017 fa l l b o a r d m e e t i n g Table of Contents

ACTION ITEMS

Consent Agenda July 2017 Minutes...... 6 Membership Report...... 14

New Business 2017 and 2018 Downes Award...... 44 ACI World Governing Board Appointments...... 45

Financial Report FY 2017 Financial Review...... 46 Acceptance of FY 2017 Audit...... 52

REPORTS

Chair's Report...... 73

President and CEO's Report...... 75

Canadian Policy Council Report...... 77

U.S. Policy Council Report U.S. Policy Council Meeting Agenda...... 78 U.S. Policy Council Report...... 80 U.S. International Air Service Committee Report...... 85

Commissioners Report...... 89

WBP/Associates Report ...... 91

ACI World Report ...... 93

BOARD DISCUSSION Committee Discussions...... 123 Sustainability Task Group Report...... 125 Proposal to Establish ACI-NA Air Service Committee...... 127

2017 ACI-NA Fall Board Report 2 2 0 1 7 fa l l b o a r d m e e t i n g

Table of Contents

INFORMATION ONLY

North American Industry Metrics...... 129

Committee Reports Air Cargo...... 150 Business Diversity...... 152 Business Information Technology...... 156 Commercial Management...... 158 Environmental Affairs...... 160 Facilitation...... 168 Finance...... 172 Human Resources...... 175 Legal Affairs...... 178 Marketing and Communications...... 181 Operations and Technical Affairs...... 184 Public Safety and Security...... 188 Risk Management...... 192 Small Airports...... 194

Meetings and Conferences Report...... 197

2017 ACI-NA Fall Board Report 3 2 0 1 7 fa l l b o a r d m e e t i n g Agenda

September 16, 2017

I. ACTION ITEMS

A. Consent Agenda a. July 12, 2017 Minutes Bill Vanecek, Chair, ACI-NA

b. Membership Report Kevin Burke, ACI-NA President and CEO

B. New Business a. 2017 and 2018 Downes Award Bill Vanecek, Chair, ACI-NA b. ACI World Governing Board Appointments Bill Vanecek, Chair, ACI-NA c. ACI-NA Membership Survey Veronica Gerson, ACI-NA Senior Manager, Member Services

C. Financial Report a. FY 2017 Financial Review Rick Tucker, Chair, ACI-NA Board Finance Committee b. Acceptance of Fiscal 2017 Audit Chellie Cameron, Chair, ACI-NA Audit Committee

II. REPORTS

A. Chair’s Report Bill Vanecek, Chair, ACI-NA

B. President’s Report Kevin Burke, ACI-NA President and CEO

C. Canadian Airports Council Report Howard Eng, Chair, Canadian Policy Council

D. U.S. Policy Council Report a. U.S. Policy Council Meeting Agenda

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Agenda

b. U.S. Policy Council Report c. U.S. International Air Service Committee Report Rob Wigington, Chair, U.S. Policy Council

E. Commissioners’ Committee Report Leland Burch, Immediate Past Chair, ACI-NA Commissioners Committee

F. World Business Partners/Associates Report Susan Prediger, Immediate Past Chair, ACI-NA WBP/Associates Board

G. ACI World Report Angela Gittens, Director General, ACI World

III. BOARD DISCUSSION

A. Committee Discussions a. Facilitation Committee: Peter Gargiulo, Director, Strategy Management, Wayne County Airport Authority b. Business Information Technology: Rick Belliotti, Director, Innovation and Small Business Development, San Diego County Regional Airport Authority c. Human Resources Committee: Kurt Gering, Director of Talent, Culture & Capability, San Diego County Regional Airport Authority

B. Sustainability Task Group Report Melinda Pagliarello, Director, Environmental Affairs, ACI-NA

C. Proposal To Establish ACI-NA Air Service Committee Matt Cornelius, Vice President, Air Policy, ACI-NA

IV. INFORMATION ONLY

A. North American Aviation Metrics B. Committee Reports

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Monday, June 12, 2017 Paris, France

Attendees

Executive Committee:

William Vanecek, Chair (Buffalo, NY) Candace McGraw (Cincinnati-Northern Kentucky)* Maureen Riley, Immediate Past-Chair (Salt Lake City, UT) Howard Eng (Toronto, Ontario, Canada) Rick Tucker (Huntsville, AL) Robert Wigington (Nashville, TN)*

*Participated via Telephone for All Votes

Board:

Chellie Cameron (Philadelphia, PA) Charles Everett, Jr. (Allentown, PA) Bryant Francis (Oakland, CA) Mark Laroche (Ottawa, Ontario) Marily Mora (Reno-Tahoe, NV) Brian Ryks (Minneapolis, MN) R.J. Steenstra (Ft. McMurray, Alberta) Terry Slaybaugh (Dayton, OH)*

*Participated via Telephone for All Votes

Past Chairs:

Frank Miller (Glendale-Burbank-Pasadena, CA) Tom Ruth (Edmonton, Alberta, CA)

Guests:

Lew Bleiweis (Ashville N.C.)

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Joe Lopano (Tampa FL)

ACI-NA Staf:

Kevin Burke Debby McElroy Tom Devine Daniel-Robert Gooch Annie Russo Nancy Zimini

ACI World:

Angela Gittens

I. Action Items

ACI-NA Chair Bill Vanecek called the meeting to order at approximately 11:05 a.m. He noted that all votes would be deferred until later in the meeting once we have connected by telephone with Candace McGraw, Rob Wigington, and Terry Slaybaugh who were back in the United States, to ensure that there is a quorum for all votes. Chair Vanecek then called on CEO Kevin Burke to give the membership report.

A. Consent Agenda

Report on Membership – President & CEO Kevin Burke gave a brief update on the Membership. ACI-NA currently has 236 airport members, with six new members added since last November. We also have 411 associate members with 17 new members added since December.

B. New Business

a) Nominating Committee Report

Nominating Committee Chair Maureen Riley described the process used to select the Nominating Committee, as well as the new policies and procedures implemented at the request of the Executive Committee. These included a requirement for all Nominating Committee Members to sign a non-disclosure agreement, which all members did with no questions asked, and a written submission by the CEO as to the type of qualities that would be helpful for Executive Committee/Board members to possess in light of the direction the association would be moving in the next few years. Committee Chair Riley said that these measures were helpful as the Committee deliberated in Palm Springs on April 24 in conjunction with the Business of Airports conference. She said

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she was pleased to report that the Committee worked very cooperatively and that all votes of the Committee were unanimous. She then presented the slate of candidates selected by the Committee for information purposes, and said that the membership would vote on the slate at the Annual Conference, with one exception:

ACI-NA Vice Chair:

Lew Bleiweis (Asheville)

Category C/D Member to fill the remainder of an unexpired term that ends in 2019, to begin immediately upon approval by the Board of Directors:

Mike Landguth (Raleigh-Durham)

Category C/D Member Airport Board Member for a three-year term:

Lance Lyttle (Seattle) Brian Ryks (Minneapolis-St. Paul)

U.S. Policy Council At-Large Positions:

Large Hub –- Ricky Smith (Baltimore-Washington)(two-year term) Small Hub –- Jim Gill (Grand Rapids) (To fill the remaining two years of the unexpired term of Lew Bleiweis upon his election as ACI-NA Vice Chair)

Committee Chair Riley noted that the Board would need to vote on the Nomination of Mike Landguth to fill the remainder of the C/D seat formerly held by Tom Bosco, but that no other action is needed by the Board. Chair Vanecek said the Landguth nomination would be included in the votes the Board would take later in the meeting, and he thanked Nominating Committee Chair Riley for her presentation and her work as chair of the Committee.

b) 2016 Downes Award

Chair Vanecek said that the Downes Award Committee would like to give the award to two individuals this year. Chair Vanecek stated that while each of the individuals was deserving of the award, he felt strongly that the award should only be given to one person in any given year, so as not to dilute the value of ACI-NA’s most prestigious award. He said that other Board members had approached him with the same concern, and that he would therefore like to table the vote on the Downes Award and discuss it on a separate Board call that would be scheduled in

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the future. Other Board members agreed with this approach.

c) Proposed Bylaw Changes Relating to Selection of Canadian Board Members, Board Finance Committee Chair, and Elimination of Outdated Provisions

Chair Vanecek asked General Counsel Tom Devine to describe the proposed Bylaw changes. Mr. Devine stated that the proposed Bylaw changes would: (1) allow the Canadian Policy Board to select ACI-NA Board Members from Canadian airports and give it flexibility to determine the length of their Board terms; (2) Ensure that if there is not a representative on the Executive Committee from a Small/Non-Hub, Medium Hub or Large Hub airport, at the time the Board selects the Board Finance Committee (BFC) Chair, the Board shall select as BFC Chair a Director from an airport from an unrepresented Hub category; (3) Set a one-year term for BFC Chair, so the Board has the flexibility to implement the prior provision whenever necessary; and (4) eliminate some out-of-date provisions related to the transition to the new Executive Committee structure, which will be completed at the end of the Annual Conference.

Howard Eng stated that the Canadian Policy Council was supportive of the changes related to the selection of Canadian Board members.

Chair Vanecek asked if the Bylaws would still need to include the chart on the transition of the Executive Committee if the transition would be completed by the time the Bylaw changes were adopted. Mr. Devine replied that the chart still provided some useful information beyond FY 2017 regarding officers moving through the chairs, and identifying when a Canadian OR must next be selected as Vice Chair. Chair Vanecek said that because the transition would be completed in September, the chart could be dropped from the Bylaws, but could be used by the Members and Staff as a helpful standalone tool.

C. Financial Report

a. FY2017 Projected Year-Ending June 30, 2017 Results. Rick Tucker, Chair of the Board Finance Committee, discussed the highlights of the projected FY2017 year-end results, stating that we are projecting a year-end surplus of approximately $604K, without investment income. With projected investment income, the surplus is expected to be approximately $1.09 million. This is primarily due to non-dues revenues; conferences have outperformed expectations and ACI-NA staff has controlled expenses well.

b. FY 2018 Budget. Mr. Tucker reported that the proposed FY 2018 budget is a balanced budget, which takes a very conservative approach in managing revenues and expenses. Proposed year-end total revenue for FY 2018 is estimated to be $13.976 million, which is $690K more than the FY 2017 budget of $13.285 million

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due to: (1) an increase in U.S. airport dues and assessments ($188K) which includes the second half of the approved CY 2017 dues increase of 5% and half of the Board approved estimated CPI index (projected to be 2%); and (2) increases in conference revenues ($490K) due to expected increases in attendance and exhibit sales as well as holding the biannual Airports Canada Conference in this fiscal year.

Total expenses are estimated to be $14.0 million. Personnel expenses are up by $534K because of now being fully staffed in DC and the addition of a staff member in the Ottawa office. This also includes a 2% cost of living salary increase, annual promotions, and additional salary adjustments to bring staff in line with American Society of Association Executives (ASAE) standards to retain key executive staff. Administration and overhead expenses are $128K more than FY 2017 budget mainly due to the new member engagement tools being proposed. Also, conference expenses are estimated to be $325K more due to more events being held in FY 2018 and increased attendance.

Mr. Tucker further stated that staff’s recommendation for cash needed outside of the Operating Budget is $250K for continued FAA Reauthorization efforts and $200K for membership engagement tools. The net result is that the proposed FY2018 budget shows a net surplus of $11K.

II. Reports

A. Chair’s Report

Chair Vanecek stated that his report is in the Board materials, but he wanted to highlight a few points. On the U.S. side, he said it is always good to have an opportunity to convey your message directly to the President of the United States, which ACI-NA had the opportunity to do in the presence of the airlines. He also stated that ACI-NA staff had generated significant support from conservative groups for uncapping the PFC. In Canada, staffing for security personnel and overall CATSA reform remains a key focus.

B. President’s Report

CEO Kevin Burke observed that his full report was in the Board book, but wanted to emphasize a few points. The Washington, DC staff has made great strides on the legislative program and in seeking regulatory relief from FAA, particularly on land use reform. Similarly, the Ottawa office was doing great things in representing our Canadian airport members before the government.

He said the Ft. Worth Annual Conference was shaping up to exceed Montreal in terms of exhibit space rented, conference registrations, and revenue. The CEO of American Airlines will be a keynote speaker, along with the editor of Forbes.

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The efforts of airport members in talking to their Senators and Members of Congress have been tremendous. Chair Vanecek interjected that AAAE and ACI-NA are continuing to work well together, and that the A4A CEO Nick Calio had even reached out to Mr. Burke, which has never happened before. Mr. Burke stated that ACI-NA worked with the airlines on many issues, but obviously have a strong disagreement on PFCs.

Joe Lopano said that ACI-NA was light years ahead of where it was 4 years ago and that the staff was doing a wonderful job, which he thanked them for.

Chair Vanecek announced that ACI-NA had recently signed a new 5-year contract with Mr. Burke to continue as President and CEO.

C. Canadian Policy Council Report

CAC Chair Howard Eng said that his report was in the Board Book, and he only wanted to note that a new issue in Canada related to air travelers’ rights, which would be negotiated over the next couple of years.

D. U.S. Policy Council Report

Annie Russo gave the report in the absence of U.S. Policy Council Chair Rob Wigington. She provided an overview of the strategic efforts ACI-NA has planned and implemented, as well as future efforts the association will likely undertake in the ever-changing political environment that we operate in. She emphasized that ACI-NA’s efforts must be multi- pronged and multi-faceted, because fast moving events require rapid responses, and the groundwork has to be laid well in advance. She echoed the comments of Chair Vanecek and CEO Burke on the inroads made in convincing conservative organizations and representatives of the benefits of uncapping the PFC, and noted that it was critical for individual airports to contact their senators and representatives, because this really makes a difference in advancing airport priorities.

E. Commissioners’ Committee Report

Kevin Burke gave the report in the absence of Commissioners Committee Representative Leland Burch. He said that the Commissioners were an active group and that he had attended their terrific conference on April 2-4 in Greeneville, SC.

F. World Business Partners/Associates Report

Nancy Zimini gave the report in the absence of WBP/Associates Representative Susan Prediger. She said that:

• Of the 411 WBP/Associate members, 242 are World Business Partners, up by 10 from

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December; this is expected to generate $56K in additional revenues. • The WPB/Associates Board has worked with staff to create a WBP/Associates web page that provides one location for their Board to find information and documents. • WBP/Associates Chair Les Cappetta has encouraged members to join the Beyond the Runway (BTR) Coalition, which has resulted in 36 new members, for a total of 76 BTR Coalition members to date. • Upcoming projects include revision of the WBP/Associates Rules and Regulations, to provide, among other things, that the Vice Chair will automatically move into the Board Chair position beginning next year, and the Vice Chair will be elected by the existing WBP/Associates Board of Directors each year, rather than the newly-elected Board. • Upcoming events include a WBP/Associates breakfast session with airport directors at the Annual Conference in Ft. Worth.

III. Board Votes

When Candace McGraw, Rob Wigington, and Terry Slaybaugh were patched into the meeting via telephone, thus achieving a quorum for the meeting pursuant to Article 10, Section 7 of the ACI-NA Bylaws, the Board took the following actions:

A. A motion was made, seconded, and unanimously approved to approve the FY 2018 Budget as presented;

B. A motion was made, seconded, and unanimously approved to approve the proposed Bylaw changes as presented for submission to the membership for a vote at the Annual Conference in September, along with any necessary and appropriate conforming changes;

C. A motion was made, seconded, and unanimously approved to elect Mike Landguth of Raleigh-Durham to fill the remainder of the unexpired C/D Board term that was recently vacated.

D. A motion was made, seconded, and unanimously approved to approve the draft Minutes of the February Board meeting as presented.

IV. ACI World Report

Angela Gittens referred Board Members to her written report, which includes traffic statistics for 2016 through March 2017. In the first quarter, North America lags behind the world average in growth, primarily due to increased traffic between Asia and Europe and within Asia.

Ms. Gittens stated that, with the help of the World Economics Committee, let by Cindy Nichol of Portland, ACI was able to beat back an effort in ICAO by the U.S. delegation to prohibit cross- subsidization within airport networks. This was an odd position for the U.S. government to take, since it has long allowed American airports to cross subsidize within an airport system. She said that it is likely

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that A4A prodded the government to take that position, since it would benefit U.S. airlines overseas.

Ms. Gittens then addressed a number of security issues, including Smart Security, Landside Security, APEX in Security, screening of Insulin Pumps, Personal Electronic Devices, Global Aviation Security Plan, Annex 17, Training, Accountability, and Quality Control.

Ms. Gittens also reported on projects nearing completion, including NEXTT, unruly passengers, Human Trafficking, wildlife smuggling, and facilitation as related to security.

She further reported on the status of the arbitration with the former ASQ provider, which apparently believes that the decision of the arbitrator did not finally resolve the case.

Ms. Gittens also discussed slots; APEX in Safety; the Airport Carbon and Emissions Reporting Tool; ACI Training, with 21 courses planned in North America; and the current status of the ASQ program, which now has 336 airports, the largest group ever.

Ms. Gittens reported on a discussion by the ACI Europe Board concerning the aviation implications of Brexit, which generated considerable discussion among ACI-NA Board Members as well.

Ms. Gittens concluded by noting that the next WAGA meeting was in Mauritius in October.

V. North American Aviation Metrics

Chair Vanecek urged the Board members to review the report on the latest data and trends regarding various airline and general economic metrics.

VI. Adjournment

The Board meeting was adjourned at approximately 1:01p.m.

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AIRPORT MEMBERSHIP: See Attachment IBa for the latest list of Member Airports.

Dues Billing and Collections

The 2017 (calendar year) Airport Dues Invoices were sent in mid November 2016 (vs. October 2015) and since last reported in June:

Original Billing August 23, 2017

Affiliate Members 4 4 Limited Members 4 3 Participating Members 4 4 Regular Members 215 222 General Aviation Members 3 2 TOTALS 230 235

ACI-NA has 181 Regular U.S. member airports as of August 23, 2017. Total amounts collected as of this date are shown below:

2016 2017 Amount Collected Amount Collected (as of this time of year) Airport Membership Dues $4,161,697.50 $3,542,168 (Billed $4,482,332 - 5% inc. + CPI index) (Billed $3,845,009) International Air Service Dues $299,200 $288,400 (Billed $319,500) Voluntary Assessments Legal Center $272,250 $255,750 Regulatory & Policy Fund $542,228 $518,503 Legislative Assessment $1,191,798 $962,434 TOTALS $6,467,173 $5,567,255

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The 2017 Canadian Airport Dues Invoices were sent in December 2016 (vs. October 2015).

ACI-NA has 50 Canadian Airport members as of August 23, 2017. Total amounts collected as of this date are shown below (in CAD):

2016 2017 Amount Collected Amount Collected (CAD) (CAD) (as of this time of year) Airport Membership Dues $1,096,162 $1,012,000 (Billed $1,026,000)

New ACI-NA Airport Members: Regular Members

Iberia Parish Airport Authority Martha's Vineyard Airport Megan Gary Commission- Martha's Vineyard Office Manager Airport Iberia Parish Airport Authority Ms. Ann B. Crook, AAE 1404 Hangar Drive Airport Manager New Iberia, Louisiana 70560 Martha's Vineyard Airport Commission (337) 365-7202 Martha's Vineyard Airport [email protected] 71 Airport Road Vineyard Haven, MA 02568 (508) 693-7022 [email protected]

ACI-NA Airport Member Drops

Regular Member Aspen-Pitkin County Airport Aspen, CO

Regular Member Eugene Airport Eugene, OR

Regular Member Columbia Regional Airport Columbia, MO

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The dues structures for the various components are:

Regular Membership Dues Formula

All membership dues are formula-based and are a function of an airport’s passenger and cargo activity. The passenger and cargo levels are accounted for through the determination of an airport’s “traffic units” (TUs). For the determination of traffic units, a TU is assigned for each of the following: • Each enplaned passenger = 1TU • Each deplaned passenger = 1TU • Each 100 kilograms (220.46 lbs) on enplaned freight and mail = 1 TU • Each 100 kilograms (220.46 lbs) on deplaned freight and mail = 1 TU

Dues levels are based on total TUs at an airport for the year in which a full year of traffic data is available (i.e. 2017 membership dues are based on 2015 traffic data since the information is calculated in October/ November 2016 time period).

2015 Traffic Units (TUs) Dues Calculation 2017 Dues Amount Zero - 99,999 Flat Fee $840 100,000-299,999 Flat Fee $2,625 300,000-599,999 Flat Fee $3,938 600,000-999,999 Flat Fee $6,038 1,000,000-100,000,000 Formula * Varies by level of Traffic Unit 100,000,001+ Flat Fee $134,287 *Formula: Dues Amount = 11,499+.002TUs-(1.887E-11TUs)2+5.114e-20(TUs-1.885e7)3

General Aviation Dues Structure

2015 NPIAS Based Aircraft Dues Calculation 2017 Dues Amount Zero – 500 Flat Fee $800 501+ Flat Fee $2,500

International Air Service Dues Structure

2015 Enplaned International 2017 International Air Service Passengers Dues Amount 0-49,999 $2,300 50,000-99,999 $3,500 100,000-249,999 $7,000 250,000 and Above $9,000

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Legal Center Voluntary Assessment

2015 Total Passenger Levels 2017 Legal Center Assessment Class A Airports (0-99,999) $250 Class A Airports (100,000-999,999) $750 Class B Airports (1,000,000 – 4,900,000) $1,500 Class C Airports (4,900,001 – 19,500,000) $3,000 Class D1 Airports (19,500,001 – 58,000,000) $7,500 Class D2 Airports (58,000,001 + ) $7,500

Policy Fund Voluntary Assessment

2015 Total Passenger Levels 2017 Policy Fund Assessment Class A Airports (0-99,999) $250 Class A Airports (100,000-999,999) $750 Class B Airports (1,000,000 – 4,900,000) $3,500 Class C Airports (4,900,001 – 19,500,000) $7,500 Class D1 Airports (19,500,001 – 58,000,000) $15,000 Class D2 Airports (58,000,001 + ) $25,000

Legislative Assessment

2015 Enplaned Passenger Levels 2017 Legislative Assessment Class A Airports (0-99,999) $250 Class A Airports (100,000-999,999) $1,500 Class B Airports (1,000,000 – 4,900,000) $7,500 Class C Airports (4,900,001 – 19,500,000) $18,000 Class D1 Airports (19,500,001 – 58,000,000) $27,500 Class D2 Airports (58,000,001 + ) $30,000

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ACI-NA WORLD BUSINESS PARTNER & ASSOCIATE MEMBERSHIP See Attachment 1Bb for the latest World Business Partners and Associates roster.

Dues Billing and Collection

The 2017 ACI-North American World Business Partner and Associate Dues Invoices were mailed in December 2016:

Original Billing As of August 23, 2017 Platinum 15 15 Diamond 35 38 Gold 50 52 Silver 100 99 Airport Related Business 23 17 Small Business 93 97 Sole Proprietor 53 58 Government & Non-Profit 15 19 Affiliate 9 15 CAC Associate Member 1 1 TOTALS 394 411

Dues Billing and Collection as of August 23, 2017 are shown below:

2017 2016 WBP/Associate Dues WBP/Associate Dues (with 411 members) (as of this time of year - 401) Invoiced $1,711,023 $1,600,731 Collected $1,692,018 $1,595,328 Outstanding $19,005 $5,402 Percent Collected 99% 99%

ACI-NA World Business Partner & Associate Additions See Attachment lBc for the latest list of companies that submitted applications for membership since the last ACI-NA Board meeting.

ACI-NA World Business Partner & Associate Drops (0) The following members were dropped due to non-payment of 2017 membership dues:

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WBP/Associate Changes (1) Morpho Detection, Inc. is now Smiths Detection WSP| Brinkerhoff is now WSP

WBP/Associate Mergers (1) Lockheed Martin Acquired by Leidos Optosecurity been acquired by Vanderlande

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As of August 23, 2017 (235) Board of County Commissioners Palm Beach County Department of Airports 2017 REGULAR MEMBERS [222] West Palm Beach, FL

Aeroport de Quebec Inc. Boise Airport Jean Lesage International Airport Boise, ID Quebec, QC Canada Broward County Aviation Department Dania Beach, FL Aéroports de Montréal Dorval, QB Brown County Canada Austin Straubel International Airport Green Bay, WI Akron-Canton Airport North Canton, OH Brownsville South Padre Island International Airport Albany County Airport Authority Brownsville, TX Albany, NY Buffalo Niagara International Airport Allegheny County Airport Authority Buffalo, NY Pittsburgh International Airport Pittsburgh, PA Burbank-Glendale-Pasadena Airport Authority Burbank, CA Augusta Regional Airport Augusta, GA Burlington International Airport South Burlington, VT Bangor International Airport Bangor, ME Calgary Airport Authority Calgary, AB Barkley Regional Airport Authority Canada Barkley Regional Airport Paducah, KY Capital Region Airport Authority Lansing, MI Birmingham Airport Authority Birmingham, AL Capital Region Airport Commission Richmond, VA

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Central West Virginia Regional Airport City of Atlanta Department of Aviation Authority Hartsfield-Jackson Atlanta Int'l Airport Charleston, WV Atlanta, GA

Charles M. Schulz - Sonoma County Airport City of Austin Santa Rosa, CA Department of Aviation Austin, TX Charleston County Aviation Authority Charleston, SC City of Dallas Department of Aviation Dallas Love Field Charlotte Douglas International Airport Dallas, TX Charlotte, NC City of Dayton Department of Aviation Charlottesville - Albermarle Airport Dayton International Airport Charlottesville, VA Dayton, OH

Charlottetown Airport Authority Inc. City of Dubuque Charlottetown, PE Dubuque Regional Airport Canada Dubuque, IA

Chattanooga Metropolitan Airport Authority City of El Paso Chattanooga, TN El Paso International Airport El Paso, TX Chicago Department of Aviation Chicago, IL City of Fresno - Airports Fresno Yosemite International Airport Cincinnati/Northern Kentucky Intl. Airport Fresno, CA Cincinnati, OH City of Kelowna City and County of Denver Kelowna International Airport Denver International Airport Kelowna, BC Denver, CO Canada

City of Abbotsford City of Medicine Hat Abbotsford Airport Authority Medicine Hat Regional Airport Abbotsford, BC Medicine Hat, AB Canada Canada City of Naples Airport Authority City of Abilene Naples Municipal Airport Department of Aviation Naples, FL Abilene, TX City of Phoenix Aviation Department City of Albuquerque Aviation Department Sky Harbor International Airport Albuquerque, NM Phoenix, AZ

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City of Prince Albert Dallas/Fort Worth International Airport Prince Albert (Glass Field) Airport DFW Airport, TX Prince Albert, SK Canada Dane County Regional Airport Madison, WI City of Redding Airports Division Redding, CA Deer Lake Regional Airport Authority, Inc. Deer Lake, NL City of San Jose Airport Department Canada Norman Y. Mineta San Jose Intl. Airport San Jose, CA Des Moines Airport Authority Des Moines International Airport City of Sioux City Des Moines, IA Sioux Gateway Airport Sioux City, IA East Texas Regional Airport (Gregg County Airport) Clark County Department of Aviation Longview, TX McCarran International Airport Las Vegas, NV Edmonton Regional Airports Authority Edmonton International Airport, AB Cleveland Airport System Canada Cleveland Hopkins International Airport Cleveland, OH Elevate Airports Inc. Canadian Rockies International Airport Colorado Springs Airport Cranbrook, BC Colorado Springs, CO Canada

Columbia Metropolitan Airport Elmira Corning Regional Airport West Columbia, SC Horseheads, NY

Columbus Regional Airport Authority Erie Regional Airport Authority Columbus, OH Erie, PA

Comox Valley Airport Commission (CVAC) Evansville-Vanderburgh Airport Authority Comox, BC District Canada Evansville, IN

Concord Regional Airport Fairbanks International Airport Concord, NC Fairbanks, AK

Connecticut Airport Authority Flathead Municipal Airport Authority Newington, CT Glacier Park International Airport Kalispell, MT

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Fort Collins - Loveland Airport Greater Binghamton Airport Loveland, CO Johnson City, NY

Fort McMurray Airport Authority Greater London International Airport Authority Fort McMurray, AB London, ON Canada Canada

Fredericton International Airport Authority, Greater Moncton International Airport Inc. Authority Lincoln, NB Dieppe, NB Canada Canada

Ft. Wayne-Allen County Airport Authority Greater Orlando Aviation Authority Fort Wayne, IN Orlando, FL

Gander International Airport Authority Inc. Greater Toronto Airports Authority Gander, NL Toronto AMF, ON Canada Canada

Gerald R. Ford International Airport Board Greenville-Spartanburg Airport District Gerald R. Ford International Airport Greer, SC Grand Rapids, MI Gulfport-Biloxi Regional Airport Authority Gillette-Campbell County Airport Gulfport, MS Gillette, WY Hagerstown Regional Airport Goose Bay Airport Corporation Hagerstown, MD Happy Valley-Goose Bay, LB Canada Halifax International Airport Authority Halifax Stanfield International Airport Government of the Northwest Territories Enfield, NS DOT, Airports Division Canada Yellowknife, NT Canada Hamilton International Airport Limited Mount Hope, ON Government of Yukon Canada Aviation Branch Haines Junction, YK Harrisburg International Airport Canada Middletown, PA

Grand Junction Regional Airport Horry County Dept. of Airports Grand Junction, CO Myrtle Beach, SC

Greater Baton Rouge Airport District Houston Airport System Baton Rouge, LA Houston, TX

2017 ACI-NA Fall Board Report 23 m e m b e r s h i p r e p o r t ACI-NA Member Airports

Huntsville-Madison County Airport Authority Lehigh-Northampton Airport Authority Huntsville International Airport Allentown, PA Huntsville, AL Lexington-Fayette Urban County Airport Board Iberia Parish Airport Authority Blue Grass Airport New Iberia, Lousiana Lexington, KY

Indianapolis Airport Authority Lincoln Airport Authority Indianapolis International Airport Lincoln, NE Indianapolis, IN Little Rock Municipal Airport Commission Jackson Municipal Airport Authority Little Rock, AR Jackson, MS Long Beach Airport Jacksonville Aviation Authority (JAA) Long Beach, CA Jacksonville, FL Los Angeles World Airports John Wayne Airport Los Angeles, CA Orange County Costa Mesa, CA Louisville Regional Airport Authority Louisville, KY Juneau International Airport Juneau, AK Manchester - Boston Regional Airport Manchester, NH Kamloops Airport Ltd. Kamloops, BC Martha’s Vineyard Airport Commission Canada Martha’s Vineyard Airport Vineyard Haven, MA Kansas City Aviation Department Kansas City, MO Maryland Aviation Administration BWI Airport, MD Kern County Department of Airports Bakersfield, CA Massachusetts Port Authority Boston, MA Kingston Airport (Norman Rogers) Kingston, ON Memphis-Shelby County Airport Authority Canada Memphis International Airport Memphis, TN Lafayette Airport Commission Lafayette, LA Metropolitan Airport Authority of Peoria Peoria, IL Lee County Port Authority Southwest Florida International Airport Metropolitan Knoxville Airport Authority Fort Myers, FL McGhee Tyson Airport Knoxville, TN

2017 ACI-NA Fall Board Report 24 m e m b e r s h i p r e p o r t ACI-NA Member Airports

Metropolitan Nashville Airport Authority North Bay Jack Garland Airport Corporation Nashville, TN North Bay, ON Canada Metropolitan Washington Airports Authority Washington, DC North Peace Regional Airport Fort St. John, BC Milwaukee County Department of Canada Transportation Airports Division Northeast Florida Regional Airport Milwaukee, WI St. Augustine, FL

Minneapolis-St. Paul Metropolitan Airports Northwest Florida Beaches International Commission Airport Minneapolis, MN Panama City, FL

Mobile Airport Authority Oakland International Airport Mobile, AL Port of Oakland Oakland, CA Mohave County Airport Authority, Inc. Bullhead City, AZ Ogdensburg Bridge & Port Authority- Ogdensburg International Airport Monterey Peninsula Airport District Ogdensburg, NY Monterey, CA Oklahoma City Airport Trust Montgomery Regional Airport Oklahoma City, OK Montgomery, AL Omaha Airport Authority Montrose Regional Airport Omaha, NE Montrose, CO Ontario International Airport Authority Nanaimo Airport Commission Ontario, CA Cassidy, BC Canada Orlando Melbourne International Airport Melbourne, FL The Delaware River and Bay Authority New Castle, DE Oshawa Executive Airport Oshawa, ON New Orleans Aviation Board Canada Louis Armstrong New Orleans Intl. Airport New Orleans, LA Ottawa International Airport Authority Ottawa International Airport Norfolk Airport Authority Ottawa, ON Norfolk, VA Canada

2017 ACI-NA Fall Board Report 25 m e m b e r s h i p r e p o r t ACI-NA Member Airports

Palm Springs International Airport Prince George Airport Authority City of Palm Springs Department of Aviation Prince George Airport Palm Springs, CA Prince George, BC Canada Pease International Development Authority Portsmouth, NH Prince Rupert Airport Prince Rupert, BC Peninsula Airport Commission Canada Newport News, VA Punta Gorda Airport Pensacola International Airport Charlotte County Airport Authority Pensacola, FL Punta Gorda, FL

Philadelphia International Airport Raleigh-Durham Airport Authority Philadelphia, PA RDU Airport, NC

Phoenix-Mesa Gateway Airport Authority Red Deer Regional Airports Authority Mesa, AZ Penhold, AB Canada Piedmont Triad International Airport Greensboro, NC Regina Airport Authority Inc. Regina, SK Plattsburgh International Airport Canada Plattsburgh, NY Region of Waterloo International Airport Port Authority of New York and New Jersey Waterloo, ON New York, NY Canada

Port of Bellingham Reno-Tahoe Airport Authority Bellingham International Airport Reno, NV Bellingham, WA Rhode Island Airport Corporation Port of Pasco Warwick, RI Tri-Cities Airport Pasco, WA Roanoke Regional Airport Commission Roanoke-Blacksburg Regional Airport Port of Portland Roanoke, VA Portland International Airport Portland, OR Sacramento County Airport System Sacramento, CA Portland International Jetport Portland, ME Saint John Airport Inc. Saint John, NB Canada

2017 ACI-NA Fall Board Report 26 m e m b e r s h i p r e p o r t ACI-NA Member Airports

Salt Lake City Department of Airports Shreveport Airport Authority Salt Lake City, UT Shreveport, LA

San Antonio Airport System Sloulin Field International Airport San Antonio, TX Williston, ND

San Bernardino International Airport Authority Spokane International Airport San Bernardino, CA Spokane, WA

San Diego County Regional Airport Authority Springfield Airport Authority San Diego, CA Springfield, IL

San Francisco Airport Commission St. John's International Airport Authority San Francisco, CA St John's, NL Canada San Luis Obispo County Regional Airport San Luis Obispo, CA St. Louis Airport Authority Lambert-St. Louis International Airport Sanford Airport Authority St. Louis, MO Sanford, FL St. Pete-Clearwater International Airport Santa Barbara Municipal Clearwater, FL Goleta, CA Stephenville Airport Corporation Santa Maria Public Airport Stephenville, NF Santa Maria, CA Canada

Sarasota Manatee Airport Authority Stockton Metropolitan Airport Sarasota, FL Stockton, CA

Saskatoon Airport Authority Sudbury Airport Community Development Saskatoon, SK Corporation Canada Garson, ON Canada Sault Ste. Marie Airport Development Corporation Sydney Airport Authority Sault Ste. Marie, ON Reserve Mines, NS Canada Canada

Savannah Airport Commission Syracuse Hancock International Airport Savannah, GA Syracuse, NY

Seattle-Tacoma International Airport Tallahassee International Airport Seattle, WA Tallahassee, FL

2017 ACI-NA Fall Board Report 27 m e m b e r s h i p r e p o r t ACI-NA Member Airports

Tampa International Airport Tweed-New Haven Regional Airport Tampa, FL New Haven, CT

Ted Stevens Anchorage International Airport Vancouver Airport Authority Anchorage, AK Richmond, BC Canada Terrace-Kitimat Airport Society Terrace, BC Ventura County Department of Airports Canada Oxnard, CA

The Greater Asheville Regional Airport Victoria Airport Authority Authority Sidney, BC Fletcher, NC Canada

The South Jersey Transportation Authority Virgin Islands Port Authority Egg Harbor Township, NJ St. Thomas, U.S. Virgin Islands

Thunder Bay International Airports Authority Watertown International Airport Thunder Bay, ON Dexter, NY Canada Walla Walla Regional Airport Ports Toronto Port Walla Walla, WA Billy Bishop Toronto City Airport Toronto, ON Wayne County Airport Authority Canada Detroit, MI

Trail Regional Airport Wichita Airport Authority Trail, BC Wichita, KS Canada Wilkes-Barre/Scranton International Airport Trenton-Mercer Airport Avoca, PA West Trenton, NJ Winnipeg Airports Authority Inc. Tri-Cities Airport Authority Winnipeg, MB Blountville, TN Canada

Tucson Airport Authority Yuma County Airport Authority/Yuma Tucson International Airport International Airport Tucson, AZ Yuma, AZ

Tulsa Airport Authority Your Quick Gateway (Windsor) Inc. Tulsa, OK Windsor, ON Canada

2017 ACI-NA Fall Board Report 28 m e m b e r s h i p r e p o r t ACI-NA Member Airports

2017 PARTICIPATING MEMBERS [4] 2017 GENERAL AVIATION MEMBERS [2]

A.B. Won Pat Guam International Airport Centennial Airport Authority Englewood, CO Tamuning, Guam Fort Lauderdale Executive Airport Hawaii Department of Transportation Fort Lauderdale, FL Airports Division Honolulu, HI

Luis Munoz Marin International Airport San Juan, Puerto Rico

Miami-Dade County Aviation Department Miami, FL

2017 LIMITED MEMBERS [3]

Port San Antonio San Antonio, TX

San Bernardino International Airport Authority San Bernardino, CA

Snohomish County Airport Everett, WA

2017 AFFILIATE MEMBERS [4]

Aruba Airport Authority N.V. Oranjstead, Aruba

Bermuda Government Department of Airport Operations St. George's, Bermuda

Israel Airports Authority Tel Aviv, Israel

Nassau Airport Development Company Lynden Pindling International Airport Nassau, New Providence, Bahamas

2017 ACI-NA Fall Board Report 29 m e m b e r s h i p r e p o r t ACI-NA World Business Partner and Associate Members

As of August 23, 2017 (411 total) Hellmuth, Obata + Kassabaum (HOK Inc.) HNTB Corporation WORLD BUSINESS PARTNERS [236] Hojeij Branded Foods, Inc. HSS Platinum [15] Jacobs AECOM Kimley-Horn and Associates, Inc. Atlantic Aviation FBO, Inc. Lamar Alliance Airport Advertising Bombardier Transportation Landrum & Brown, Inc. Clear Channel Airports Leidos Delaware North Co. Travel Hosp. Serv. Inc. LeighFisher HMSHost Corporation Mead & Hunt, Inc. Hudson Group Mission Yogurt Inc. JFK International Air Terminal LLC Pacific Gateway OTG Management PGAL Paradies Lagardère Ricondo & Associates, Inc. Parsons Rockwell Collins Signature Flight Support Corporation RS&H Skanska USA Building, Inc. Stantec SSP America, Inc. The Marshall Retail Group World Duty Free Group, a Dufry Company TranSystems Corp. Vino Volo WSP Diamond [38] XpresSpa ABM Aviation Zodiac Arresting Systems ADB SAFEGATE Allied Universal Security Services Arconas Corporation Gold [52] Burns & McDonnell Airport Lounge Development Inc. C&S Companies Akal Security, Inc. CH2M ARUP CHA Consulting, Inc. ASL Chick-fil-A, Inc. AvPORTS -- An AFCO Company Chubb - Aviation Bags, Inc. CLEAR Bank of America Merrill Lynch Corgan Black Box Network Services Garver, LLC Boingo Wireless Gensler Citigroup Global Markets Inc.

2017 ACI-NA Fall Board Report 30 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

CNN Airport Network Silver [99] Coffman Associates, Inc. Ailevon Pacific Aviation Consulting Crawford, Murphy & Tilly, Inc. Airport Revenue News Faith Group LLC Alliiance Fraport USA, Inc. Anderson & Kreiger LLP Frasca & Associates, LLC Aronson Security Group GCR Inc. Arora Engineers, Inc. Global Elite Group Ascent Technology, Inc. Goldman, Sachs & Co. Avasant LLC Gresham, Smith and Partners Aviation Facilities Company, Inc. (AFCO) Hanson Professional Services Inc. Barnes & Thornburg, LLP Harris Bechtel Infrastructure Corporation Heery International, Inc. Birdi & Associates, Inc. HKS, Inc. Bradford Airport Logistics Ltd HMMH Brüel & Kjær EMS Inc. InterVISTAS Consulting Group Cobus Industries, LP Kaplan Kirsch & Rockwell LLP Com-Net Software Lea+Elliott, Inc. CONNICO Incorporated LEO A DALY Corvado Lyft, Inc. CP&Y, Inc. Making Projects Work, Inc. Customer Service Experts, Inc. McFarland-Johnson, Inc. Diio, LLC Moody's Investors Service Dunham Group, LLC Morgan Stanley EA Engineering, Science, and Tech., Inc., PBC PASSUR Aerospace Electronic Data, Inc. (EDI) Quantum Secure ESA Airports RDG Concessions, Inc. Esri Ross and Baruzzini, Inc. Euronet USA RW Block Consulting, Inc. Evans Airport Solutions SAAB Everbridge SDI Presence Evolv Technology ServiceTec International, Inc. Fish Construction, Inc. SNC-Lavalin Airports and Aviation Group Fitch Ratings SP Plus Corporation Foley & Lardner LLP Telos Identity Management Solutions, LLC Four Winds Interactive (Telos ID) GateKeeper Systems, Inc. Tetra Tech GE Aviation TransCore, Inc. Gemalto Turner Construction Ghafari Associates, LLC Unison Consulting Haley & Aldrich, Inc. Wells Fargo Securities HappyOrNot Americas, Inc Westfield Corporation HDR, Inc. Woolpert, Inc. Hill International, Inc. Hilltop Securities Inc. IBM

2017 ACI-NA Fall Board Report 31 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

Ice Miller LLP Subway® ICF International T.Y. Lin International Inspired Networks, Inc. TAL Global Corporation International Display Systems, Inc. The Walsh Group Jefferies LLC TransSolutions JENSEN HUGHES Tricopian LLC dba FuelRod Kennedy/Jenks Consultants Vanasse Hangen Brustlin, Inc. Kutak Rock LLP Verde GSE, Inc. L-3 Security & Detection Systems Walker Parking Consultants Leibowitz & Horton Apt Mgmt Consult. Inc. Woods Bagot Lemay Inc. LG Electronics Liesch, a Terracon Company Airport-Related Business [17] Logplan LLC Aeroterm M2P Consulting Inc. Airbus Americas, Inc. MarketPlace Development Airport Terminal Services Marchena and Graham, PA Analogic Corporation Materna Information & Communications Corp. Barich, Inc. Meyers Nave BKD CPAs & Advisors Milhouse Engineering and Construction CAGE Inc. Moog Sensor and Surveillance CI² Aviation, Inc. Morpho Trust USA Covenant Aviation Security, LLC Morrison Foerster LLP Fentress Architects Moye Consulting IP Design Group Nextbus J.P. Morgan OAG KB Environmental Sciences, Inc. O'Melveny & Myers LLP Kroll Bond Rating Agency (KBRA) Orrick, Herrington & Sutcliffe LLP NAV CANADA Page Yardi Systems, Inc. Park Assist Zuckert, Scoutt & Rasenberger Pavement Consultants Inc. Piper Jaffray Plante & Moran, PLLC WBP Affiliate Members [15] Provenzano Resources, Inc. Airbiz Public Financial Management, Inc. Amadeus Quantum Innovation Corporation Casper Airport Solutions RBC Capital Markets DFS Group L.P. S&P Global Ratings Ferrovial Aeropuertos S.A. Samuel A. Ramirez & Company, Inc. Genetec Inc. SAR Trilogy Management, LLC JCDecaux North America Schenkel & Shultz, Inc. Lyngsoe Systems A/S Spiegel & McDiarmid LLP SITA Info. Networking Computing USA Inc. Squire Patton Boggs (US) LLP Siths Detection Steer Davies Gleave Travelers Box LTD. Stites & Harbison, PLLC T-Systems North America Inc.

2017 ACI-NA Fall Board Report 32 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

UBM DY Consultants Unisys Corporation Ek & Molina Aviation Consulting Xovis AG Environmental Resource Solutions, Inc. FAAC International, Inc. ASSOCIATE MEMBERS [175] Fortbrand Services, Inc. Foster Pepper PLLC Small Business [97] General Medical Devices Inc., DBA AED ACA Associates, Inc. Professionals Access-IS (North America), inc. Gentrack ADK Executive Search Global Resource Management, Inc. (GRM) Advanced Application Design, Inc. GRA, Incorporated Agati Furniture Hi-Lite Airfield Services, LLC Airline Data Inc, formerly Data Base Products iinside Airport Business Magazine Indect USA Corporation Airport Improvement Magazine InnovAt International Inc. Airport Seating Alliance Innovative Technology Engineering AirProjects, Inc. Inspired Data Solutions, LLC Airside Mobile, Inc. Intellisoft, Inc. AlertEnterprise, Inc. JRD & Associates, Inc. Argus Consulting, Inc. JRM Consultants & Investigations Co. Art of Context JSM & Associates ASSA, Inc. The JW Group, Inc. Aviation Alliance, Inc Korn/Ferry International Aviation Safety Technologies, LLC (AST) LeJeune and Associates, LLC Aviation Security Consulting, Inc. Lewis, Longman & Walker, P.A. AviDel Consulting, LLC LexVolo LLC Backstrom McCarley Berry & Co., LLC "MAG USA (Manchester Airports Group USA)" Be Relax McCain Walls Bella Bagno, Inc. MicroSystems Automation Group (MSAG) BEUMER Corporation MJE Marketing Services Bickmore Nossaman, LLP Campbell-Hill Aviation Group, LLC Odgers Berndtson, LLC The Carriage Works, LLC OrgMetrics LLC Chrysalis Aviation Solutions Palazzo Concessions Clear Flight Solutions Parabit Systems, Inc. Conrac Solutions Project Delivery, LLC Parrish and Partners, LLC CooverClark & Associates, Inc. Planning Technology, Inc. COREY Airport Services ProDIGIQ, Inc. Corliss Stone-Littles, LLC The Quotient Group Departure Media Airport Advertising R.M. Chin & Associates, Inc. Dixon Hughes Goodman LLP Ramboll Environ US Corporation DKMG Consulting LLC Raymond James & Associates, Inc. Dormakaba Regali, Inc. DWU Consulting LLC RezPort, Inc.

2017 ACI-NA Fall Board Report 33 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

Screenflex Portable Room Dividers Sole Proprietor [58] Seabury Consulting now part of Accenture 1 Bottle Media SecurityPoint Media LLC AGD Associates LLC "Shade Saver Inc. dba/opticwash" Airport Concession Consultants, Inc. SI Partners, Inc. Airport Consulting, Inc. Skyroam Animer Consulting, LLC Snow Systems Aviation Alliances, LLC The Solution Design Group, Inc. Aviation Innovation, LLC SPA HERE, LLC Aviation Strategies & Trade Solutions, Inc. SSi, Inc. Avisin Aviation SureID Avius America LLC Synect AVK Consulting Team Eagle Ltd. AvMaSSI - Aviation & Marine Safety Solutions Thales USA, Inc. International, LLC Trillion Aviation Bureau Mijksenaar USA Inc. VDV Concessions, LLC BURRST Weir and Partners LLP Butterfly Consulting cismatica Conlee Consulting Government & Non-Profit [19] Decision Services International, LLC Air Line Pilots Association, International DeCosta Consulting, LLC Airport Consultants Council Displayed Technologies Airport Minority Advisory Council (AMAC) DTKJ Associates, LLC Aviation Safety Research Exstare Federal Services Group, LLC Bowling Green State University Aviation Studies FlyInStyle Program Foxstream Inc. International Association of Baggage System Freidheim Consulting Companies (IABSC) Futterman Consulting Inc. International Association of Airport Duty Free Grice Group, LLC Stores Howick Law, PLLC International Biometrics + Identity Association Hubpoint Strategic Advisors, LLC Las Vegas Convention and Visitor Authority Imagine Airport Ventures National Air Traffic Controllers Association Innovative Strategies National Safe Skies Alliance International Training Force National Terrazzo & Mosaic Association James M. Crites LLC New York City Economic Development K.R. Barker & Associates, LLC Corporation (NYCEDC) L Patrick Consulting PRIDE Industries Minute Suites Rocky Mountain Institute/Carbon War Room Newhouse & Associates Terminal One Group Association NFH Technology LLC Travelers Aid International Pueblo Technology Group, Inc. Virginia Department of Aviation Quadrex Aviation, LLC Washington Airports Task Force RHWalker Consulting, LLC Richard J. Leidl, P.C.

2017 ACI-NA Fall Board Report 34 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

Security Radar Integrators, Inc. Shapiro Communications Silvy Group Skyport Development Company SP Consulting, LLC Steven Baldwin Associates, LLC Studdiford Technical Solutions, LLC Synergy Consultants, Inc. Teresa Pineda Davidson Consulting, LLC b(TPD Consulting) Thyssen International Translytica, LLC Trinder Aviation & Aerospace Advocacy, PLLC V Squared Strategies LLC WJ Advisors, LLC. WJDunlay Consulting, LLC XIP Consulting, LLC

Canadian Associate Member [ 1 ] Atlantic Canada Airports Association

2017 ACI-NA Fall Board Report 35 m e m b e r s h i p r e p o r t New World Business Partner and Associate Members

As of August 23, 2017 (25 total) M2P Consulting, Inc. Mr. David Ploog World Business Partners [8] Managing Partner One Rockefeller Plaza Diamond [0] 11th Floor New York, NY 10020 Gold [0] Phone: (646) 756-2990 Email: [email protected] Silver [6] Website: www.m2p.net

HappyOrNot Americas, Inc M2P Creates value for airports by developing/ Mr. Todd Theisen implementing business solutions that look VP of Sales to the future. We focus on optimization and HappyOrNot Americas, Inc sustainability, transforming and organizations 491 Northpoint Parkway through digitization/IT expertise and real West Palm Beach, FL 33407 work functional, operational and managerial Phone: (408) 472-3248 experience in airports. M2P specialties include: Email: [email protected] public-private partnerships (PPP), strategic Website: www.happy-or-not.com planning, asset management, and advanced airport terminal processing. HappyOrNot® is the leader in instant customer and employee satisfaction reporting. We serve 4,000 companies across 117 countries and have Milhouse Engineering and Construction, Inc collected over a half billion feedbacks. Our Mr. John Plezbert intelligent service and data insight help you National Director of Program Management follow the journey cycle of arriving, departing Milhouse Engineering and Construction, Inc and transfer passengers to understand the 60 E. Van Buren Street, Suite 1501 passenger experience both live and historically. Chicago, IL 60605 Phone: (312) 924-4524 Email: [email protected] Website: http://milhouseinc.com

Milhouse is a MBE firm with extensive background in the Aviation Industry, including geometry, grading, utilities, and drainage; runway/taxiway lighting; airfield signage; pavement markings; site lighting structural

2017 ACI-NA Fall Board Report 36 m e m b e r s h i p r e p o r t New World Business Partner & Associate Members

design; roadway design; light rail, lift stations; contractors depend on Penhall for our safe, electrical and civil engineering services for air reliable, high-quality concrete expertise. Today, traffic control towers; as well as construction Penhall is the largest U.S. supplier of concrete phase services. services. Our capabilities and expertise span 41 locations in 18 states and Canada. With a world- Moog Sensor and Surveillance Systems class fleet and state-of-the art equipment, our Mr. Jeremy Hickman dedicated team has the technology and resources Business Development Mgr. to provide safe, high-quality, affordable Moog Sensor and Surveillance Systems concrete solutions for our customers—anytime, 6300 N. Wickham Road anywhere. Suite 130 #181 Melbourne, FL 32940 Quantum Innovation Corporation Phone: (321) 220-7800 Peter DiDomenica Email: [email protected] President Website: www.moogs3.com Quantum Innovation Corporation 4 Turning Leaf Lane Moog Sensor and Surveillance Systems Millbury, MA 01527 (formerly Quickset International) designs and Phone: (617) 799-0577 manufacturers physical security products in Email: [email protected] the USA for rugged environments. Deployed Website: www.quantuminnovationcorp.com on airports, military bases and other critical infrastructure sites, Moog security camera Quantum Innovation Corporation is a training systems are built to last, integrating high-quality and consulting firm that specializes in training day/low light cameras, thermal imaging, and airport personnel in prevention of terrorist acts, other sensors… When Performance Really criminal acts, and workplace violence. The firm Matters™ also provides consultation services to airports on threat assessment and mitigation and security Penhall Company systems designs for prevention and mitigation of Mr. Bill Bauman terrorist acts. National Account Manager, Airports 2750 E Main Airport Related Business [0] Grand Prairie, TX 75050 Phone: (817) 854-7170 Affiliate [2] Email: [email protected] Website: https://www.penhall.com/ UBM Ms. Ilona Cambron Penhall was founded in 1957 and has become Director, Air Service Development the largest and most trusted provider of concrete UBMi Princeton cutting, GPR scanning and X-Ray services in 308 Maple Street North America. We offer an extensive range of Plymouth, MI 48170 options to help customers from homeowners Phone: (734) 718-2878 to the largest industrial companies. Whether Email: [email protected] it's for grinding and grooving a highway, Website: http://www.asm-global.com/north- or construction equipment rental, concrete america/

2017 ACI-NA Fall Board Report 37 m e m b e r s h i p r e p o r t New World Business Partner & Associate Members

ASM was the first route development Associate Members [17] consultancy in the world and we have maintained our leading position in the aviation Small Business [12] industry – our clients rely on us to help them expand their air service networks. ASM offers Aviation Safety Technologies, LLC expert consultancy services, data and analytics Mr. Joe Vickers and route development training courses. The Managing Director aviation industry’s renowned Routes events were Aviation Safety Technologies, LLC first established by ASM in 1998 and our clients 222 S. Riverside Plaza, Suite 2800 benefit from this unique relationship. Routes Chicago, IL 60606 events bring together airlines and airports to Phone: (312) 768-7412 discuss new services and we personally represent Email: joe.vickers@aviationsafetytechnologies. many of our clients at these meetings. Clients com work with ASM to guide and support themselves Website: www.aviationsafetytechonologies.com through every step of the route development process: identifying potential new services, AST’s new services produce surface friction and preparing business cases and presentations, contamination reports for all weather conditions negotiating with airlines and ensuring new and airport treatment scenarios using real-time routes are sustainable. aircraft data and mobile surface sensors. AST eliminates subjectivity and provides actionable Smiths Detection intelligence, enabling operators to improve Ms. Jennifer A. Banks Herrmann safety, reliability, and the bottom line. Sr. Strategic Accts.Mgr., Aviation Security Smiths Detection FAAC International, Inc. 7151 Gateway Blvd Mr. Larry North Newark, CA 94560 Pedestrian Bus Dev. Mgr. Phone: (410) 474-0238 FAAC International, Inc. Email: [email protected] 3160 Murrell Road Website: www.smithsdetection.com Rockledge, FL 32955 We are the world’s leading experts in Phone: (321) 252-4841 safeguarding society, the military and borders Email: [email protected] from constantly evolving CBRNE threats. Website: www.magnetic-access.com/usa We’re renowned globally for our advanced technological solutions in explosives, illegal FAAC International has a 25-year history of weapons, contraband, toxic materials and success delivering pedestrian gates, turnstiles narcotics detection. Behind our comprehensive and related access control solutions. In addition range of solutions is a highly responsive service to pedestrian flow management, we offer a large and support team, working globally. So whatever variety of market leading vehicle flow solutions threats you face, rest assured you have all the including barriers, bollards and gate operators proven expertise, experience and back-up you (through both Magnetic Auto-control and FAAC need – all in one place. brands).

2017 ACI-NA Fall Board Report 38 m e m b e r s h i p r e p o r t New World Business Partner & Associate Members

General Medical Devices Inc., DBA AED leader provides best-in-class insights into Professionals passenger flow. Its visual analytics platform helps Ms. Julie Dini offline locations act upon data-driven insights. V.P. of Sales iinside leverages airport data sets to create 348 W. Colfax Street unprecedented correlations for airports, airlines Palatine, IL 60067 and retailers to improve non-aeronautical Phone: (847) 202-3233 revenue. Email: [email protected] Website: http://www.aedprofessionals.com/ Indect USA Corporation Mr. Dale Fowler AED Professionals provides a comprehensive President AED program that includes AED selection, AED Indect USA Corporation essential accessories, training and the required 106 Brookline St medical-oversight. We can assist in the selection Chestnut Hill, MA 02467 and purchase of appropriate defibrillator Phone: (310) 890-8599 devices, supplies and other defibrillator-related Email: [email protected] equipment to meet the unique needs of your Website: www.indectusa.com site. In addition, on many defibrillator models we provide Defibrillator Rebate. As a leader in Indect USA provides a range of solutions for all brands of AEDs we market, we also offer airports to manage their parking garages more solutions, tools, and expertise designed to help effectively. We have a range of sensors, signage you establish and maintain a successful AED and software for building systems to count cars program. We stock all AED-related accessories: and guide your customers quickly to a parking such as replacement batteries, additional space. defibrillation pads, AED carrying cases, and other supplies for immediate shipment. The Innovative Technology Engineering costs associated with each unit depend on the Patrick Geisler features the unit has. But overall costs balance Partner/Sr. System Engineering out. It's an individual preference which AED Innovative Technology Engineering Unit manufacturer you like. 16903 Red Oak Dr, Suite 160 Houston, TX 77090 iinside Phone: (832) 289-1098 Mr. Patrick Blattner Email: [email protected] Chief Product Officer Website: www.it-eng.com iinside 100 S. Chaparral Ct., Ste 260 Innovation Technology Engineering, LLC Anaheim, CA 92808 provides vendor-neutral design, engineering Phone: (714) 685-9776 ext 1024 and consulting services in the areas of IT special Email: [email protected] systems, telecommunications infrastructure Website: http://www.iinside.com and security systems to a diverse set of clients in the government, aviation, maritime, industrial, iinside provides the most comprehensive end- and education markets. Our highly skilled and to-end analytics suite for the travel market. This experienced staff leverages experience across indoor location-based, behavioral-analytics these industries to develop the right solutions for

2017 ACI-NA Fall Board Report 39 m e m b e r s h i p r e p o r t New World Business Partner & Associate Members

our clients. Our mission is to understand our Ride Systems clients operations, challenges, and requirements, Mr. Justin Rees so that we can effectively craft a unique and President/CEO functional design solution for each of our Ride Systems clients. From the assessment phase through 209 N. State St., Suite B design and into construction administration, Morgan, Utah 84050 our firm maintains its focus on the needs of the Phone: (435) 881-7550 client throughout the entire project life-cycle. Email: [email protected] Website: www.ridesystems.net While we often work directly with facility Owners, we also work well with Architectural/ Ride Systems supports airport shuttle operations Engineering teams in all-aspects of building with technology such as automatic vehicle and campus design. This includes but is not location (AVL) in real0time GPS. Employees limited to space planning, infrastructure or patrons using long-term parking or rental pathway coordination, and power and heat load car shuttles can easily view the vehicle location calculations. We ensure that the technology and and arrival estimates. Our automatic passenger systems required by the Owner are supported counting (APC) system makes ridership counts by the building systems and are incorporated simple. Reports can be generated by airport within the architectural design. leadership to help make important decisions regarding parking and transportation at the McCain Walls airport. We work with many airports both large Ms. Claudia Encinas and small across the U.S. Marketing Manager McCain Walls Snow Systems 2633 Progress Street Mr. Trevor Biebrach Vista, CA 92081 Vice President Phone: (760) 295-9094 Snow Systems Email: [email protected] 600 Wolf Street Website: www.mccainwalls.com Wheeling, IL 60090 Phone: (847) 947-1478 McCain Manufacturing was founded on the Email: [email protected] principal that quality manufacturing is only as Website: www.snowsystems.com good as the customer service that supports it, and it is as true now as ever. Large Snow and Ice removal company, Each day, we aspire to not just manufacture specializes in large properties. Over 300 pieces of quality goods but to make a difference. We heavy equipment owned and managed by Snow achieve this by honoring a set of core values in Systems. Our fleet is 100% dedicated to snow everything we do. Whether fabricating parts and ice management. for Fortune 500 companies or through our innovative brands, we are a team of passionate, positive, and proactive individuals. Together, we not only deliver products but help our customers create lasting impressions in their respective markets.

2017 ACI-NA Fall Board Report 40 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

SPA HERE VDV Concessions, LLC Mrs. Marisol Binn Ana McCune van de Velde President President SPA HERE VDV Concessions, LLC 34 W 65 Street 4390 Lohr Road New York, NY 10023 Ann Arbor, MI 48108 Phone: (646) 261-4752 Phone: (734) 718-2878 Email: [email protected] Email: [email protected] Website: http://spahere-airports.com/ Website: http://www.asm-global.com/north- america/ SPA HERE delivers therapeutic and relaxing spa and grooming services and wellness related retail VDV Concessions, LLC is an ACDBE/DBE products to travel in an environment designed firm, certified in food and beverage, retail and to eliminate external pressures and reduce stress consulting, currently conducting business in and fatigue. joint venture partnership with HMS Host and Areas in the USA. VDV is involved in operating The Carriage Works, LLC the concepts: Starbucks, Detroit, Michigan, and Ms. Lori Butler Mezza Mediterranean Grille, Detroit, Michigan VP, Sales & Marketing and it serves US brand representatives for Mezza The Carriage Works, LLC Mediterranean Grille. VDV is located in Ann 6600 Arnold Street Arbor, Michigan. Its Present, Anna McCune van Klamath Falls, OR 97603 de Velde brings to the firm more than 20 years Phone: (541) 882-0700 of news, gifts, and specialty experience as former Email: [email protected] chair of Paradies Metro Ventures companies. Website: www.carriageworks.com Sole Proprietor [4] More than 10,000 carts, kiosks and RMUs (retail merchandising units) have been designed 1 Bottle Media and manufactured by The Carriage Works Mr. Shane M. Bozzer over the last four decades. This body of work Founder demonstrates a rich history of high quality 1 Bottle Media craftsmanship. Today, The Carriage Works is 4027 Phillips Avenue pairing that quality focus and its manufacturing Burnaby, British Columbia V5A2X4 experience with a forward-looking approach Canada to design and an aggressive approach to Phone: (604) 616-9110 growing our business. Our manufacturing Email: [email protected] facility is located in Klamath Falls, Oregon, Website: www.1bottlemedia.com with employees drawn from a small town environment with a great history in wood 1 Bottle Media provides better accessibility to products. These employees, along with our public drinking water through our state of the clients, are the cornerstones of our success. We art multi-functional Hydra Kiosk. The 1 Bottle are dedicated to continually excelling in meeting Hydra Kiosk combines free UV filtered chilled our clients’ needs and improving our services. water on demand with large digital display and dual refilling chambers engineered specifically

2017 ACI-NA Fall Board Report 41 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

for high volume pedestrian venues around the representatives and engineering consultants, world. securing approvals through code compliance, guidelines and standards, design reviews Displayed Technologies for technical requirements, drawings and Mr. David Abbondanzio specifications review of technical design President proposals, preservation and sustainable Displayed Technologies concepts, quality control, organizational 6906 Hammond Ave structure, and team building, design consultants’ Dallas, Texas 75223 selection and proposals evaluation, and training Phone: (412) 657-2186 and mentoring advice. The business has various Email: [email protected] certifications such as, LDBE at MWAA, MWSB Website: www.displayedtech.com at RDU, EBENC, MWBE at MCO, among others. Displayed Technologies is a world leader in providing turn-key solutions proven to improve WJDunlay Consulting, LLC passenger experience for the transportation industry. Our unique systems aid passengers William J. Dunlay, Managing Member with imperative information while generating WJDunlay Consulting, LLC revenue for airports. Whether at the ticket 304 Paradise Drive counter, in the terminal or riding APM system, Tiburon, CA 94920 Displayed Technologies has the best solution. Phone: (650) 425-0671 Email: [email protected] Teresa Pineda Davidson Consulting LLC (TPD Website: In progress Consulting) Teresa P. Davidson, AIA, LEED AP WJDunlay Consulting, LLC, is a California, Owner Principal Single-member, limited liability company Teresa Pineda Davidson Consulting LLC (TPD (LLC), founded to provide airfield and airspace Consulting) planning and consulting services to airports; 616 E Street NW #811 other airport consulting firms, aviation industry Washington, DC 20004 organizations (eg. The TRB and ACRP); and Phone: (202) 577-8576 government aviation agencies (eg. FAA and Email: [email protected] NASA). Website: In progress Government & Non-Profit [1] Specializes on providing consulting services to design consultants and construction contractors, Bowling Green State University program and construction managers, airports, Mr. Russell W. Mills airlines, public and government agencies, retail Associate Professor concessionaires, and artists. Services include Bowling Green State University program/project management, planning and 124 Williams Hall design, complex programs execution, phasing Bowling Green, OH 43403 and tenant relocations, prepares bid solicitations; Phone: (419) 372-9183 design and contracts administration and Email: [email protected] management, coordination between program Website: https://www.bgsu.edu/

2017 ACI-NA Fall Board Report 42 m e m b e r s h i p r e p o r t ACI-NA World Business Partner & Associate Members

BGSU Aviation is an FAR Part 141 approved flight education and training program. Aviation majors choose from one of three specializations: Flight Technology and Operations (FTO), Aviation Management and Operations (AMO), o Aviation Engineering Technology (AET). Coursework in each specialization is complemented with business and liberal arts classes that differentiate BGSU’s program from other similar programs.

2017 ACI-NA Fall Board Report 43 n e w b u s i n e s s 2017 and 2018 Downes Award

At the ACI-NA Board Meeting on June 12, it was agreed to defer action on the Downes Award Committee recommendation that the award be given in 2017 to two individuals, Herb Kelleher (in person) and Sue Baer (posthumously), because several Board members expressed concerns about diluting the prestige of the award by presenting it to two people in the same year. Both candidates are very deserving and worthy of a “full” Downes Award.

After discussions with Downes Award Committee Chair Candace McGraw, a revised recommendation was proposed by the Committee:

The Board should approve the award of the 2017 Downes Award to Herb Kelleher and, at the same time, approve the 2018 award to Sue Baer.

On July 12, the Board voted via email and approved the recommendation from the Downes Award Committee.

2017 ACI-NA Fall Board Report 44 n e w b u s i n e s s ACI-NA Appointments to the ACI World Governing Board

The following ACI-NA Official Representative is recommended for nomination for an ACI-NA member of the ACI World Governing Board for 2018 - 2020:

• Candace McGraw, Cincinnati/Northern Kentucky International Airport, KY, United States

The following ACI-NA Official Representative is recommended for nomination for an ACI-NA Regional Advisor of the ACI World Governing Board for 2018:

• William Vanecek, Director of Aviation, Buffalo Niagara International Airport

2017 ACI-NA Fall Board Report 45 f i n a n c i a l r e p o r t Financial Report

I. INTRODUCTION

This section of the Board report contains results for the fiscal year ended June 30, 2017 (FY 2017). The following attachments accompany the Financial Report:

• Financial Dashboard for June 30, 2017 (Attachment 1) • Balance Sheet as of June 30, 2017 (Attachment 2) • FY 2017 year-end actual revenue and expenses compared with budget (Attachment 2) • FY 2017 draft of the audited financial statements for the years ended June 30, • 2017 and 2016 with Management Letter (Attachment 3)

II. FISCAL YEAR 2017 FINANCIAL RESULTS

The Board approved budget had a surplus of $33,193 (after transfer of $250K from reserves and $207.5K from Canadian Legacy Fund). Our FY2017 actual year-end operations resulted in a surplus of $807K without investment income and $1.396 million including investment income. The projections prepared in April showed a surplus of $604K which were based on third quarter results and did not include staff bonus pool of $500K. The actual surplus was $703K more than the projected surplus of $807K which is a difference of $203K. This amount added to the staff bonus pool of $500K totals the $703K.

REVENUE

Year-end total revenue was $14.855 million, which is $1.559 million more than the budget of $13.285 million.

This is due to following factors: • Dues Revenue and assessments were $472K more than budget due to dues increase effective January 1, 2017 and increased collection of Government and Legislative Affairs assessment as well as increase in World Business Partner membership. • Airports for the Future Program (AFF) revenue are estimated to be $110K which was not budgeted. These funds are restricted. • Note: The AFF revenue is comprised of voluntary contributions and 2016 was the final year of a four year restricted program. At the June 2016 Board meeting in Laguna Niguel, CA, it was recommended by the Executive Committee and approved by the Board to continue the AFF program through 2017. This allows ACI-NA to build a coalition of supporters for airport priorities in FAA Reauthorization. Furthermore, it will allow us to update the economic impact statistics for airports, our educational materials and talking

2017 ACI-NA Fall Board Report 46 f i n a n c i a l r e p o r t FY2017 Year End Results

points. As directed by the Board, all AFF contributions received from members are spent only for this educational program. • Annual Conference and other conference revenue totaled $934K more than budget • Annual Conference revenue is $397K more than budget due to increased attendance, exhibition and sponsorship sales. • Other conferences outperformed budget expectations by $537K due to increased attendance. The most profitable conferences were Business of Airports, Airports at Work and Jumpstart.

ACI World Supporting Services

Cost for ACI World supporting services came in $84K less than budget due to favorable exchange rates against the Canadian dollar and from rebates.

EXPENSES

• Overall Personnel Expenses exceeded the budget by $366K since staff bonuses are not budgeted. • Overall Operating Expenses will be $236K below budget due primarily to underspending on consulting expenses. • Overall Meeting Expenses will exceed budget expectations by $165K due to increased meeting attendance.

INVESTMENTS

• The interest and dividend income was budgeted at $128K and the actual was $152K. Overall, investment income (including interest, dividends and investment gains) was $589K which was $461K more than the budget of $128K.

III. AUDITED FINANCIAL STATEMENTS

• A preliminary draft of the audited financial statements for the years ended June 30, 2017 and 2016 accompanies this Financial Report. • The results of the audit will be presented by the Chair of the Audit Committee at the Annual General Membership Meeting.

2017 ACI-NA Fall Board Report 47 f i n a n c i a l r e p o r t Financial Dashboard

Attachment 1 Page 1

2017 ACI-NA Fall Board Report 48 f i n a n c i a l r e p o r t Financial Dashboard

Attachment 1 Page 2

HISTORICAL FINANCIAL PERFORMANCE (2012-2017) $15,000,000 Revenue $14,000,000 $13,000,000 Expenses $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY12 FY13 FY14 FY15 FY16 FY17 Proposed FY18

HISTORICAL US AIRPORTS DUES & ASSESSMENTS (2012-2017) $4,250,000 $4,000,000 FY12 $3,750,000 FY13 $3,500,000 FY14 $3,250,000 FY15 $3,000,000 FY16 $2,750,000 FY17 $2,500,000 $2,250,000 Proposed FY18 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Regular Dues 62% IAS 5% Legal 5% Policy 10% Legislative 18%

HISTORICAL SOURCES OF REVENUE $7,500,000 $7,250,000 FY12 $7,000,000 $6,750,000 FY13 $6,500,000 FY14 $6,250,000 $6,000,000 FY15 $5,750,000 $5,500,000 FY16 $5,250,000 FY17 $5,000,000 $4,750,000 Proposed FY18 $4,500,000 $4,250,000 $4,000,000 $3,750,000 $3,500,000 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 2017 ACI-NA$0 Fall Board Report 49 ($250,000) Apt Dues & Asmts 52% WBP/Asso Dues 10% Apts For The Future 2% Annual Conf 16% Other Confs 16% Investments 2% Other: Adv. etc. 1% ($500,000)

HISTORICAL EXPENSES $6,250,000 $6,000,000 FY12 $5,750,000 $5,500,000 FY13 $5,250,000 FY14 $5,000,000 $4,750,000 FY15 $4,500,000 $4,250,000 FY16 $4,000,000 FY17 $3,750,000 $3,500,000 Proposed FY18 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Comp/Payroll Taxes 39% Retirement Plan 2% Emplee Benefits 4% Admin/Overhd Exp 31% Meeting Exps 16% Pymts to ACI World 8% Attachment 1 Page 2

HISTORICAL FINANCIAL PERFORMANCE (2012-2017) $15,000,000 Revenue $14,000,000 $13,000,000 Expenses $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 FY12 FY13 FY14 FY15 FY16 FY17 Proposed FY18

HISTORICAL US AIRPORTS DUES & ASSESSMENTS (2012-2017) $4,250,000 $4,000,000 FY12 $3,750,000 FY13 $3,500,000 FY14 $3,250,000 FY15 $3,000,000 FY16 $2,750,000 FY17 $2,500,000 $2,250,000 Proposed FY18 $2,000,000f i n a n c i a l r e p o r t $1,750,000 $1,500,000 $1,250,000Financial Dashboard $1,000,000 $750,000 $500,000 $250,000 $0 Regular Dues 62% IAS 5% Legal 5% Policy 10% Legislative 18%

HISTORICAL SOURCES OF REVENUE $7,500,000 $7,250,000 FY12 $7,000,000 $6,750,000 FY13 $6,500,000 FY14 $6,250,000 $6,000,000 FY15 $5,750,000 $5,500,000 FY16 $5,250,000 FY17 $5,000,000 $4,750,000 Proposed FY18 $4,500,000 $4,250,000 $4,000,000 $3,750,000 $3,500,000 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 ($250,000) Apt Dues & Asmts 52% WBP/Asso Dues 10% Apts For The Future 2% Annual Conf 16% Other Confs 16% Investments 2% Other: Adv. etc. 1% ($500,000)

HISTORICAL EXPENSES $6,250,000 $6,000,000 FY12 $5,750,000 $5,500,000 FY13 $5,250,000 FY14 $5,000,000 $4,750,000 FY15 $4,500,000 $4,250,000 FY16 $4,000,000 FY17 $3,750,000 $3,500,000 Proposed FY18 $3,250,000 $3,000,000 $2,750,000 $2,500,000 $2,250,000 $2,000,000 $1,750,000 $1,500,000 $1,250,000 $1,000,000 $750,000 $500,000 $250,000 $0 Comp/Payroll Taxes 39% Retirement Plan 2% Emplee Benefits 4% Admin/Overhd Exp 31% Meeting Exps 16% Pymts to ACI World 8%

2017 ACI-NA Fall Board Report 50 f i n a n c i a l r e p o r t Statement of Financial Position AIRPORTS COUNCIL INTERNATIONAL - NA Attachment 2 STATEMENTS OF FINANCIAL POSITION Page 1 06/30/2017 FY 2017 FY 2016 Change ASSETS

CURRENT ASSETS Cash 7,414,396 6,277,835 1,136,562 Certificate of Deposit 287,809 403,430 (115,621) Accounts Receivable, Net 153,609 143,364 10,245 Accrued Investment Income 17,107 15,276 1,831 Prepaid Expenses 460,211 447,377 12,835

Total Current Assets 8,333,132 7,287,281 1,045,851

Investments 7,126,398 6,588,645 537,754 Property and Equipment, Net 715,640 657,098 58,542 Deposits 3,706 3,706 -

TOTAL ASSETS 16,178,876 14,536,729 1,642,147 - - - LIABILITIES AND NET ASSETS

CURRENT LIABILITIES Accounts Payable and Accrued Expenses 1,538,216 1,700,507 (162,290) Deferred Revenue 5,838,530 5,488,503 350,027 Security Deposit - Sub Tenant 780 - 780 Deferred Rent - Current 86,629 86,629 (0)

Total Current Liabilities 7,464,156 7,275,639 188,517

LONG TERM LIABILITIES Deferred Rent and Lease Incentive - Net of Current Portion 741,844 834,263 (92,419)

Total Long Term Liabilities 741,844 834,263 (92,419)

TOTAL LIABILITIES 8,205,999 8,109,901 96,098

NET ASSETS Unrestricted 7,735,220 6,174,754 1,560,466 Temporarily Restricted 237,657 252,074 (14,417)

Total Net Assets 7,972,877 6,426,828 1,546,049

TOTAL LIABILITIES AND NET ASSETS 16,178,876 14,536,729 1,642,147 - (0) 0

2017 ACI-NA Fall Board Report 51 f i n a n c i a l r e p o r t Audit Report

7910 WOODMONT AVENUE 1901 L STREET, NW SUITE 500 SUITE 750 BETHESDA, MD 20814 WASHINGTON, DC 20036 (T) 301.986.0600 (T) 202.822.0717 (F) 301.986.0432 (F) 202.822.0739

MRL DATE

To the Audit Committee North American Region of the Airports Council International

We have audited the financial statements of the North American Region of the Airports Council International (ACI-NA) for the year ended June 30, 2017, and have issued our report thereon dated MRL DATE. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information to the Audit Committee in our conference call about planning matters on August 23, 2017. Professional standards also require that we communicate to you the following information related to our audit.

Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by ACI-NA are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2017. We noted no transactions entered into by ACI-NA during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period.

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the financial statements were:PRELIMINARY DRAFT • Depreciation of property and equipment • Allocation of functionalSUBJECT expenses TO CHANGE • Deferred revenue

We evaluated the key factors and assumptions used to develop the above estimates in determining that they are reasonable in relation to the financial statements taken as a whole. Certain- FORfinancial statementREVIEW disclosures AND are particularly DISCUSSION sensitive because of their ONLY significance - to financial statement users. The most sensitive disclosures affecting the financial statements were: • The disclosure of the leasing arrangements in Note 10 to the financial statements which is based on the lease agreements; • The disclosure of the defined benefit pension plan in Note 11 to the financial statements which is based on actuarial calculations. The financial statement disclosures are neutral, consistent, and clear

COUNCILOR, BUCHANAN & MITCHELL, P.C. – CPAs AND BUSINESS ADVISORS www.cbmcpa.com

2017 ACI-NA Fall Board Report 52 f i n a n c i a l r e p o r t Audit Report

The Audit Committee North American Region of the Airports Council International MRL DATE Page 2 of 3

Difficulties Encountered in Performing the Audit

• We encountered no difficulties in dealing with management in performing and completing our audit.

Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. The misstatements detected as a result of audit procedures that were corrected by management are attached.

Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit.

Management Representations We have requested certain representations from management that are included in the management representation letter dated MRL DATE.

Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to ACI-NA’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To ourPRELIMINARY knowledge, there were no such DRAFT consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with managementSUBJECT each year prior toTO retention CHANGE as ACI-NA’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention.

This information is intended solely for the use of the Audit Committee, the Board of Directors and management of ACI-NA and is not intended to be and should not be used by anyone other than these specified- FOR parties. REVIEW AND DISCUSSION ONLY -

Very truly yours,

Councilor, Buchanan & Mitchell, P.C.

2017 ACI-NA Fall Board Report 53 f i n a n c i a l r e p o r t Audit Report

The Audit Committee North American Region of the Airports Council International MRL DATE Page 3 of 3

Account Description Debit Credit

Adjusting Journal Entries JE # 1 PBC- To book CAD office expenses

5110-61-000 Telephone 280.00 5730-61-000 Representation & Promotion 4,091.00 2010-00-000 Accounts Payable 4,371.00 Total 4,371.00 4,371.00

Adjusting Journal Entries JE # 2 To correct deferred dues and dues revenue

2200-00-000 D/R - Airport Member Dues 44,550.00 2232-00-000 D/R - Legal Affairs 1,125.00 4055-80-920 Policy/Reg. Affairs Assessment Revenue 6,125.00 4060-80-930 Govt/Legislative Assessment Revenue 15,375.00 2231-00-000 D/R - Govt/Leg Affairs 15,375.00 2233-00-000 D/R - Policy/Regulatory Affairs 6,125.00 4010-80-000 Airport Member Dues 44,550.00 4050-80-900 Legal Center Assessment Revenue 1,125.00 Total 67,175.00 67,175.00

Adjusting Journal Entries JE # 3 PBC- to record additional expense report

5190-61-000 Miscellaneous Expense 22.00 5710-61-830 Travel 711.00 5710-61-875 Travel 774.00 5720-61-830 LodgingPRELIMINARY DRAFT158.00 5720-61-875 Lodging 251.00 5740-61-401 Business Meals 24.00 5740-61-830 Business Meals 237.00 5740-61-875 Business MealsSUBJECT TO CHANGE83.00 2010-61-000 Accounts Payable 2,260.00 Total 2,260.00 2,260.00

- FOR REVIEW AND DISCUSSION ONLY -

2017 ACI-NA Fall Board Report 54 f i n a n c i a l r e p o r t Audit Report

NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

FINANCIAL STATEMENTS

JUNE 30, 2017 AND 2016

PRELIMINARY DRAFT

SUBJECT TO CHANGE

- FOR REVIEW AND DISCUSSION ONLY -

MHV DRAFT - 1 8/28/2017

2017 ACI-NA Fall Board Report 55 f i n a n c i a l r e p o r t Audit Report

NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

TABLE OF CONTENTS JUNE 30, 2017 AND 2016

Pages

Independent Auditors’ Report ...... 3

Financial Statements

Statements of Financial Position ...... 4

Statements of Activities ...... 5-6

Statements of Changes in Net Assets ...... 7

Statements of Cash Flows ...... 8

Notes to Financial Statements ...... 9-18

PRELIMINARY DRAFT

SUBJECT TO CHANGE

- FOR REVIEW AND DISCUSSION ONLY -

2017 ACI-NA Fall Board Report 56

MHV DRAFT - 1 8/28/2017 f i n a n c i a l r e p o r t Audit Report

7910 WOODMONT AVENUE 1901 L STREET, NW SUITE 500 SUITE 750 BETHESDA, MD 20814 WASHINGTON, DC 20036 (T) 301.986.0600 (T) 202.822.0717 (F) 301.986.0432 (F) 202.822.0739

Independent Auditors’ Report

To the Board of Directors North American Region of the Airports Council International Washington, D.C.

We have audited the accompanying financial statements of the North American Region of the Airports Council International (ACI-NA), which comprise the statements of financial position as of June 30, 2017 and 2016, and the related statements of activities, changes in net assets, and cash flows for the years then ended, and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing anPRELIMINARY opinion on the effectiveness of the entity’s DRAFT internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. SUBJECT TO CHANGE We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our -opinion, FOR the financial REVIEW statements referred AND to above present DISCUSSION fairly, in all material respects, theONLY financial position - of the ACI-NA as of June 30, 2017 and 2016, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Washington, D.C. Certified Public Accountants MRL DATE

MHV COUNCILOR, BUCHANAN & MITCHELL,DRAFT P.C. - 1 – CPAs AND BUSINESS ADVISORS 8/28/2017 www.cbmcpa.com 2017 ACI-NA Fall Board Report 57 f i n a n c i a l r e p o r t Audit Report

NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

STATEMENTS OF FINANCIAL POSITION AS OF JUNE 30, 2017 AND 2016

2017 2016 Assets

Current Assets Cash and Cash Equivalents $ 7,414,396 $ 6,277,835 Certificates of Deposit 287,809 403,430 Accounts Receivable, Net 153,590 143,349 Accrued Investment Interest 17,107 15,276 Prepaid Expenses 465,370 447,376

Total Current Assets 8,338,272 7,287,266

Investments 7,126,398 6,588,645 Property and Equipment, Net 715,639 657,097 Deposits 3,706 3,706 Investment for Deferred Compensation 79,815 46,902

Total Assets $ 16,263,830 $ 14,583,616

Liabilities and Net Assets

Current Liabilities Accounts Payable and Accrued Expenses $ 1,212,610 $ 1,368,083 Accrued Vacation 333,787 332,410 Deferred Revenue 5,814,355 5,488,504 Deferred Rent and Lease Incentive 86,629 86,629

Total Current Liabilities 7,447,381 7,275,626 Deferred CompensationPRELIMINARY Payable DRAFT 79,815 46,902 Deferred Rent and Lease Incentive, Net of Current Portion 741,844 834,263 Total Liabilities SUBJECT TO CHANGE 8,269,040 8,156,791 Net Assets Unrestricted 7,607,959 6,189,168 Temporarily Restricted 386,831 237,657 Total- FOR Net Assets REVIEW AND DISCUSSION 7,994,790 ONLY 6,426,825 - Total Liabilities and Net Assets $ 16,263,830 $ 14,583,616

See accompanying Notes to Financial Statements.

- 4 - MHV DRAFT - 1 8/28/2017 2017 ACI-NA Fall Board Report 58 f i n a n c i a l r e p o r t Audit Report

NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2017

Temporarily Unrestricted Restricted Total Revenue and Support Airport Membership Dues $ 4,108,075 $ - $ 4,108,075 Canadian Airport Dues 757,540 - 757,540 International Air Service Membership Dues 320,300 - 320,300 Government and Legislative Affairs 1,287,040 - 1,287,040 Policy and Regulatory Affairs 591,795 - 591,795 Legal Center 291,541 - 291,541 World Business Partner Membership Dues 1,355,826 - 1,355,826 Associate Membership Dues 205,950 - 205,950 Airports for the Future Contributions - 259,359 259,359 Annual Conference and Exhibition 2,687,010 - 2,687,010 Conferences and Meetings 2,923,674 - 2,923,674 Publications 103,390 - 103,390 Other Income 136,908 - 136,908 Net Assets Released from Restrictions 110,185 (110,185) - Total Revenue and Support 14,879,234 149,174 15,028,408 Expenses Program Services Conferences and Meetings 2,965,111 - 2,965,111 Annual Conference and Exhibition 2,557,024 - 2,557,024 Government and Legislative Affairs 1,438,848 - 1,438,848 Airports for the Future 110,185 - 110,185 Policy and Regulatory Affairs 509,774 - 509,774 Security 885,286 - 885,286 Economic Affairs 777,116 - 777,116 Legal Center 191,930 - 191,930 Environmental Affairs 249,628 - 249,628 International Air Service 164,288 - 164,288 Operations and Technical Affairs 438,321 - 438,321 Innovative Business SolutionPRELIMINARY DRAFT 37,492 - 37,492 Total Program Expenses 10,325,003 - 10,325,003 Supporting Services Management and General SUBJECT TO 2,991,572 CHANGE - 2,991,572 ACI World Office 733,273 - 733,273

Total Supporting Services 3,724,845 - 3,724,845

Total Expenses 14,049,848 - 14,049,848

Change in Net Assets from Operations 829,386 149,174 978,560 Investment- FOR Income REVIEW AND DISCUSSION 589,405 - ONLY 589,405 -

Change in Net Assets 1,418,791 149,174 1,567,965 Net Assets, Beginning of Year 6,189,168 237,657 6,426,825 Net Assets, End of Year $ 7,607,959 $ 386,831 $ 7,994,790

See accompanying Notes to Financial Statements.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2016

Temporarily Unrestricted Restricted Total Revenue and Support Airport Membership Dues $ 3,849,357 $ - $ 3,849,357 Canadian Airport Dues 835,101 - 835,101 International Air Service Membership Dues 312,546 - 312,546 Government and Legislative Affairs 1,008,141 - 1,008,141 Policy and Regulatory Affairs 551,325 - 551,325 Legal Center 281,822 - 281,822 World Business Partner Membership Dues 1,379,731 - 1,379,731 Associate Membership Dues 189,608 - 189,608 Airports for the Future Contributions - 165,440 165,440 Annual Conference and Exhibition 2,306,834 - 2,306,834 Conferences and Meetings 2,579,723 - 2,579,723 Publications 82,175 - 82,175 Other (Loss) 100,012 - 100,012 Net Assets Released from Restrictions 179,857 (179,857) - Total Revenue and Support 13,656,232 (14,417) 13,641,815 Expenses Program Services Conferences and Meetings 2,904,034 - 2,904,034 Annual Conference and Exhibition 1,976,941 - 1,976,941 Government and Legislative Affairs 1,576,492 - 1,576,492 Airports for the Future 161,875 - 161,875 Policy and Regulatory Affairs 608,858 - 608,858 Security 839,488 - 839,488 Economic Affairs 571,311 - 571,311 Legal Center 133,533 - 133,533 Environmental Affairs 216,634 - 216,634 International Air Service 150,858 - 150,858 Operations and Technical Affairs 390,450 - 390,450 Innovative Business SolutionPRELIMINARY DRAFT 9,576 - 9,576 Total Program Expenses 9,540,050 - 9,540,050 Supporting Services Management and General 3,325,448 - 3,325,448 ACI World Office SUBJECT TO 747,126 CHANGE - 747,126 Total Supporting Services 4,072,574 - 4,072,574 Total Expenses 13,612,624 - 13,612,624 Change in Net Assets from Operations 43,608 (14,417) 29,191 Investment Loss (80,098) - (80,098) Excess- Pension FOR Liability REVIEW Adjustment AND DISCUSSION (556,269) -ONLY (556,269) - Defined Benefit Termination Expense (226,844) - (226,844) Change in Net Assets (819,603) (14,417) (834,020) Net Assets, Beginning of Year 7,008,771 252,074 7,260,845 Net Assets, End of Year $ 6,189,168 $ 237,657 $ 6,426,825

See accompanying Notes to Financial Statements.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

STATEMENTS OF CHANGES IN NET ASSETS FOR THE YEARS ENDED JUNE 30, 2017 AND 2016

Board Designated Temporarily For the Year Ended June 30, 2017 Unrestricted Unrestricted Restricted Total

Net Assets, Beginning of Year $ 5,918,613 $ 270,555 $ 237,657 $ 6,426,825 Change in Net Assets, Unrestricted 1,308,606 - - 1,308,606 Decrease in Currency Exchange Rate (491) 491 - - Contributions - - 259,359 259,359 Net Assets Released from Restrictions 110,185 - (110,185) -

Net Assets, End of Year $ 7,336,913 $ 271,046 $ 386,831 $ 7,994,790

Board Designated Temporarily For the Year Ended June 30, 2016 Unrestricted Unrestricted Restricted Total

Net Assets, Beginning of Year $ 6,709,883 $ 298,888 $ 252,074 $ 7,260,845 Change in Net Assets, Unrestricted (974,760) (24,700) - (999,460) Decrease in Currency Exchange Rate 3,633 (3,633) - - Contributions - - 165,440 165,440 Net Assets Released from Restrictions 179,857 - (179,857) -

Net Assets, End of Year $ 5,918,613 $ 270,555 $ 237,657 $ 6,426,825

PRELIMINARY DRAFT

SUBJECT TO CHANGE

- FOR REVIEW AND DISCUSSION ONLY -

See accompanying Notes to Financial Statements.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED JUNE 30, 2017 AND 2016

2017 2016

Cash Flows from Operating Activities Change in Net Assets $ 1,567,965 $ (834,020) Adjustments to Reconcile Change in Net Assets to Net Cash Provided by Operating Activities Depreciation and Amortization 188,516 154,151 Unrealized Gains on Investments (380,859) (108,050) Realized (Gains) Losses on Investments (55,993) 317,476 (Increase) Decrease in Assets Accounts Receivable (10,241) (36,455) Accrued Investment Interest (1,831) 13,208 Prepaid Expenses (17,994) (19,032) Investment for Deferred Compensation (32,913) (32,238) Net Accrued Pension Benefit Asset - 556,269 Increase (Decrease) in Liabilities Accounts Payable and Accrued Expenses (155,473) 398,387 Accrued Vacation 1,377 27,426 Deferred Revenue 325,851 290,039 Deferred Rent and Lease Incentive (92,419) (76,543) Deferred Compensation Payable 32,913 32,238

Net Cash Provided by Operating Activities 1,368,899 682,856

Cash Flows from Investing Activities Purchases of Property and Equipment (247,058) (20,424) Purchases of Investments (948,482) (4,505,074) Proceeds from Sales of Investments 847,581 4,868,898 Purchase of Certificate of Deposit - (153,430) Proceeds from Redemption of Certificate of Deposit 115,621 - PRELIMINARY DRAFT Net Cash (Used in) Provided by Investing Activities (232,338) 189,970

Net Increase in Cash and Cash Equivalents 1,136,561 872,826 Cash and Cash Equivalents, BeginningSUBJECT of Year TO CHANGE 6,277,835 5,405,009

Cash and Cash Equivalents, End of Year $ 7,414,396 $ 6,277,835

- FOR REVIEW AND DISCUSSION ONLY -

See accompanying Notes to Financial Statements.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization

The North American Region of the Airports Council International (ACI-NA), a nonprofit organization, facilitates the exchange of information to its members and their representatives in order to promote competitive, efficient, and safe air transportation. ACI-NA represents the collective interests of its members before a variety of government and industry organizations as well as other entities. ACI-NA’s primary source of funding is membership dues and conference revenue.

Tax Status

ACI-NA is a nonprofit organization and is exempt from the payment of taxes on income other than net unrelated business income under Section 501(c)(6) of the Internal Revenue Code. No provision for income taxes is required for the years ended June 30, 2017 and 2016, as ACI-NA had no significant net unrelated business income.

ACI-NA believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are material to the financial statements.

ACI-NA’s Form 990, Return of Organization Exempt from Income Tax, Form 990-T, Exempt Organization Business Income Tax Return and the District of Columbia’s Corporation Franchise Tax Return are subject to examination by the taxing authorities, generally for three years after filing.

Basis of Accounting

The financial statements of ACI-NA have been prepared on the accrual basis of accounting. Consequently, revenue is recognized when earned and expenses when incurred. PRELIMINARY DRAFT Basis of Presentation

ACI-NA is required to report information regarding its financial position and activities according to three classes SUBJECTof net assets; unrestricted TO net assets, CHANGE temporarily restricted net assets, and permanently restricted net assets. ACI-NA has no permanently restricted net assets.

Cash and Cash Equivalents

ACI-NA considers all demand deposits and money market funds to be cash and cash -equivalents, FOR excludingREVIEW amounts held AND in investments. DISCUSSION ONLY - Investments

Investments are recorded in the financial statements at fair value based on quoted market prices.

Certificates of Deposit

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Accounts Receivable

Accounts receivable consists primarily of conference related fees, joint conference net revenue, expense reimbursements from other organizations, and advertising fees related to the publication of Centerlines. As of June 30, 2017 and 2016, all accounts receivable are due within one year. Accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a provision for bad debt expense and an adjustment to a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Changes in the valuation allowance have not been material to the financial statements. As of June 30, 2017 and 2016, the valuation allowance was approximately $15,000 and $18,000, respectively.

Property and Equipment

Acquisitions of property and equipment in excess of $500 are recorded at cost and are depreciated over the estimated useful lives of the respective assets, using the straight-line method with no salvage value. Leasehold improvements are recorded at cost and are amortized over the shorter of the useful life or the remaining lease term using the straight-line method. Expenditures for major repairs and improvements are capitalized; expenditures for minor repairs and maintenance costs are expensed when incurred.

Revenue Recognition

Membership dues and assessments are deferred upon receipt and are recognized as revenue ratably over the period to which the dues relate. Conference, contest, and exhibition revenues are recorded as deferred revenue upon receipt and are recognized as revenue in the period in which the event PRELIMINARYoccurs. DRAFT

Contributions that are restricted by the donor are reported as increases in unrestricted net assets if the restrictions expire in the reporting period in which the revenue is recognized. All other donor restricted contributionsSUBJECT are reported TO as increases CHANGE in temporarily or permanently restricted net assets, depending on the nature of the restrictions. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statements of activities as net assets released from restrictions.

-Estimates FOR REVIEW AND DISCUSSION ONLY -

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Functional Allocation of Expenses

The costs of providing the various programs and other activities have been summarized on a functional basis in the accompanying statements of activities. Accordingly, certain costs have been allocated among the programs and supporting services benefited.

Reclassifications

Certain 2016 amounts have been reclassified for comparative purposes.

2. INVESTMENT INCOME (LOSS)

For the years ended June 30, 2017 and 2016, investment income (loss), including interest earned on cash and cash equivalents, consisted of the following: Description 2017 2016 Interest and Dividends $ 152,553 $ 129,328 Realized Gains (Losses) on Investments 55,993 (317,476) Unrealized Gains on Investments 380,859 108,050 Net Investment Income (Loss) $ 589,405 $ (80,098)

Expenses relating to investment revenues, including custodial fees and investment advisory fees, for the years ended June 30, 2017 and 2016, totaled approximately $48,000 and $56,000, respectively.

3. PROPERTY AND EQUIPMENT

ACI-NA held the following property and equipment as of June 30, 2017 and 2016: Description PRELIMINARY DRAFT 2017 2016 Furniture and Equipment $ 1,322,528 $ 1,078,820 Leasehold Improvements 795,284 791,934 Total Property and EquipmentSUBJECT TO CHANGE 2,117,812 1,870,754 Less Accumulated Depreciation and Amortization (1,402,173) (1,213,657) Property and Equipment, Net $ 715,639 $ 657,097

4. -C ONCENTRATIONSFOR REVIEW AND DISCUSSION ONLY - ACI-NA’s cash and cash equivalents are comprised of amounts held in accounts at financial institutions. While the amounts at times exceeded the amounts guaranteed by governmental agencies and, therefore, are subject to some risk, ACI-NA has not experienced nor does it anticipate any loss of funds.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

5. FAIR VALUE MEASUREMENTS

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels as follows:

Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets;

Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability other than quoted prices, either directly or indirectly, including inputs in markets that are not considered to be active;

Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement. The inputs to the determination of fair value require significant management judgment.

The following presents ACI-NA’s investments measured at fair value as of June 30, 2017:

Description Level 1 Level 2 Level 3 Total

Cash and Cash Equivalents $ 180,152 $ - $ - $ 180,152

Debt Securities and Bond Mutual Funds Debt Securities - 1,669,442 - 1,669,442 Bond Mutual Funds 918,690 - - 918,690

Total Debt Securities and Bond Mutual Fund Investments 918,690 1,669,442 - 2,588,132

Equity Mutual Funds U.S. Large Cap 1,846,769 - - 1,846,769 U.S. Mid Cap 539,626 - - 539,626 U.S. Small Cap 311,725 - - 311,725 Developed International 842,352 - - 842,352 Emerging Markets PRELIMINARY 214,023 DRAFT - - 214,023 Equity REITS 88,009 - - 88,009

Total Equity Mutual Funds 3,842,504 - - 3,842,504 Alternative Investment Mutual FundsSUBJECT 515,610 TO CHANGE - - 515,610 Total Investments at Fair Value 5,456,956 1,669,442 - 7,126,398

Deferred Compensation Investment Money Market 30,050 - - 30,050 Other Mutual Funds 49,765 - - 49,765 - FORTotal Deferred REVIEW Compensation Investment AND DISCUSSION79,815 - ONLY - 79,815 - Total Assets at Fair Value $ 5,536,771 $ 1,669,442 $ - $ 7,206,213

Deferred Compensation Liability $ 79,815 $ - $ - $ 79,815 Total Liabilities at Fair Value $ 79,815 $ - $ - $ 79,815

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

5. FAIR VALUE MEASUREMENTS (CONTINUED) The following presents ACI-NA’s investments measured at fair value as of June 30, 2016:

Description Level 1 Level 2 Level 3 Total

Cash and Cash Equivalents $ 113,460 $ - $ - $ 113,460 Debt Securities and Bond Mutual Funds Debt Securities - 1,530,272 - 1,530,272 Bond Mutual Funds 1,141,429 - - 1,141,429

Total Debt Securities and Bond Mutual Fund Investments 1,141,429 1,530,272 - 2,671,701

Equity Securities and Mutual Funds Equity Mutual Funds U.S. Large Cap 1,597,958 - - 1,597,958 U.S. Mid Cap 487,738 - - 487,738 U.S. Small Cap 245,487 - - 245,487 Developed International 711,691 - - 711,691 Emerging Markets 141,495 - - 141,495 Equity REITS 93,969 - - 93,969

Total Equity Mutual Funds 3,278,338 - - 3,278,338

Alternative Investment Mutual Funds 525,146 - - 525,146 Total Investments 5,058,373 1,530,272 - 6,588,645

Deferred Compensation Investment Other Mutual Funds 46,902 - - 46,902 Total Assets at Fair Value $ 5,105,275 $ 1,530,272 $ - $ 6,635,547

Deferred Compensation Liability $ 46,902 $ - $ - $ 46,902 Total Liabilities at Fair Value $ 46,902 $ - $ - $ 46,902

ACI-NA’s Level 2 investments are valued based on readily available pricing sources for comparable investments.PRELIMINARY DRAFT 6. DEFERRED REVENUE As of June 30, 2017 and 2016SUBJECT, deferred revenue wasTO comprised CHANGE of the following: Description 2017 2016 Membership Dues and Assessments $ 4,117,425 $ 4,085,274 Conferences, Contests, and Annual Exhibitions 1,696,930 1,403,230 Total Deferred Revenue $ 5,814,355 $ 5,488,504 - FOR REVIEW AND DISCUSSION ONLY - 7. TEMPORARILY RESTRICTED NET ASSETS As of June 30, 2017 and 2016, temporarily restricted net assets were available for the following purposes: Description 2017 2016 Airports for the Future $ 386,831 $ 237,657 Total Temporarily Restricted Net Assets $ 386,831 $ 237,657

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

7. TEMPORARILY RESTRICTED NET ASSETS (CONTINUED) Net assets were released from restrictions for the years ended June 30, 2017 and 2016, as follows: Description 2017 2016 Airports for the Future $ 110,185 $ 161,875 Strategic Research Security Subcommittee - 15,635 Hazard Analysis - 2,347 Total Released from Restrictions $ 110,185 $ 179,857

8. COMMITMENTS ACI-NA has entered into several agreements with hotels to provide accommodations for its meetings and conventions that are to be held through October 2018. Many of the agreements contain a clause whereby ACI-NA is liable for liquidated damages in the event of cancellation. At June 30, 2017, management of ACI-NA has estimated that the maximum possible amount of liquidated damages is approximately $1,458,000. In March 2016, ACI-NA entered into a two year non-cancelable service contract with a company to provide local area network management administration. The contract was effective July 1, 2016. The remaining commitment as of June 30, 2017 is approximately $136,000. Management does not believe any cancellation under these contracts will occur.

9. EMPLOYMENT AGREEMENTS During 2017, ACI-NA entered into an employment agreement (the Agreement) with its President. If the President is terminated for any reason other than cause, as defined in the Agreement, ACI-NA must continue to pay salary and all benefits for a period of time as described in the Agreement. The Agreement was effective July 1, 2017 and continues until June 30, 2022. As of June 30, 2017PRELIMINARY, ACI-NA has employment agreements DRAFT (the Agreements) with four Ottawa, Ontario office employees. If an employee is terminated for any reason other than cause, ACI- NA must continue to pay salary and all benefits for a period of time as described in the Agreements. SUBJECT TO CHANGE 10. LEASING ARRANGEMENTS ACI-NA leases office equipment under a non-cancelable operating lease. The lease expires in March 2021. Office equipment is also leased on-site at some conferences. Equipment lease expense for the years ended June 30, 2017 and 2016, totaled approximately $18,000 and $21,000, -respectively. FOR REVIEW AND DISCUSSION ONLY - Future minimum payments under non-cancelable equipment operating leases are as follows: For the Years Ending June 30, 2018 $ 12,252 2019 12,252 2020 12,252 2021 9,189 Total Future Minimum Lease Payments $ 45,945

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

10. LEASING ARRANGEMENTS (CONTINUED)

ACI-NA leases office space in Washington, D.C. under an operating lease that expires on November 30, 2022. The lease includes an option to renew the lease for an additional five years if notice is given by November 30, 2021. Under the terms of the lease the base rent increases annually based on scheduled increases provided for in the lease. The lessor provided lease incentives totaling $907,200. Under accounting principles generally accepted in the United States of America (GAAP) all rental payments, including fixed rent increases, are recognized on a straight-line basis over the term of the lease. Lease incentives are amortized over the life of the lease on a straight-line basis as an offset to rent expense. The difference between the GAAP rent expense and the required lease payments, as well as any unamortized lease incentives, are reflected as deferred rent in the accompanying statements of financial position. Rent expense for the years ended June 30, 2017 and 2016, totaled approximately $551,000 and $577,000, respectively.

In addition ACI-NA is also required to maintain an irrevocable letter of credit in lieu of a security deposit of $250,000. The letter of credit is secured by a certificate of deposit in the same amount.

Future minimum lease rental payments for the Washington, D.C. office space are as follows:

For the Years Ending June 30, 2018 $ 646,299 2019 662,427 2020 679,029 2021 696,004 2022 713,452 Thereafter 304,064 Total Future Minimum Lease Payments $ 3,701,275

11. DEFINED BENEFITPRELIMINARY PENSION PLAN DRAFT The defined benefit plan was terminated effective September 30, 2014. Certain participants received lump sum payments and a group annuity contract for all remaining benefit obligations was purchasedSUBJECT in November 2015. TO CHANGE The following tables set forth the defined benefit pension plan’s funded status and principal assumptions as of and for the year ended June 30, 2016: Change in Benefit Obligation

- BenefitFOR Obligation REVIEW at Beginning of Year AND DISCUSSION ONLY$ 2,833,523 - Interest Cost 45,171 Actuarial Loss 677,088 Settlements (3,490,805) Benefits Paid (64,977)

Benefit Obligation at End of Year $ -

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

11. DEFINED BENEFIT PENSION PLAN (CONTINUED)

Change in Plan Assets

Fair Value of Plan Assets at Beginning of Year $ 3,389,792 Actual Return on Plan Assets (51,721) Settlements (3,490,805) Employer Contributions 226,935 Administrative Expenses (9,224) Benefits Paid (64,977)

Fair Value of Plan Assets at End of Year $ -

Funded Status $ -

Components of Net Periodic Benefit Cost

Net Periodic Benefit Cost Interest Cost $ 45,171 Expected Return on Plan Assets (96,274) Recognized Net Actuarial Loss 3,641

Net Periodic Benefit Cost $ (47,462)

Other Changes in Plan Assets and Benefit Obligations Recognized in Statements of Activities

Net Loss $ 834,216 Recognized Net Actuarial Loss (3,641)

Total Recognized in Changes in Unrestricted Net Assets $ 830,575 Total Recognized in Net Periodic Benefit Cost and Unrestricted Net Assets $ 783,113

Amounts ExpectedPRELIMINARY to be Recognized in Net Periodic Cost inDRAFT the Coming Year

Loss Recognition N/A

Weighted-Average AssumptionsSUBJECT for Net Periodic Cost as TO of June 30,CHANGE 2016

Discount Rate 3.95% Expected Return on Plan Assets 7.00% Salary Increase N/A Corridor 10.00% Average Future Life Expectancy 17.66 - FOR REVIEW AND DISCUSSION ONLY -

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

12. DEFERRED COMPENSATION PLAN

During 2014, ACI-NA adopted a nonqualified deferred 457(f) compensation plan (the 457 Plan) for a key employee. The 457 Plan requires that ACI-NA establish and maintain a book entry account on behalf of the employee for all contributions, deferrals and investment experience related to the 457 Plan. ACI-NA is not liable for any specific investment success nor is it required to restore any loss of principal that may occur due to market conditions. Under current law, such funds remain the asset of ACI-NA and, as such, are subject to the creditors of ACI-NA. The amount accrued under the 457 Plan for each of the years ended June 30, 2017 and 2016 was $15,000 and $30,000, respectively, and is included in the accompanying statements of financial position as a component of accounts payable and accrued expenses.

13. DEFINED CONTRIBUTION RETIREMENT PLANS

ACI-NA maintains a defined contribution retirement plan (the Plan) for its Washington, D.C. office employees that provides for a safe harbor contribution of 3% of each eligible participant’s plan defined compensation that is 100% vested immediately. The 3% safe harbor contributions at June 30, 2017 and 2016, are included in the accompanying statements of financial position as a component of accounts payable and accrued expenses.

The Plan also provides for a discretionary profit sharing contribution based on plan defined compensation for eligible employees employed on the last day of the plan year.

ACI-NA maintains a defined contribution retirement plan for its Ottawa, Ontario office employees. The individual employment agreements provide for annual contributions ranging from 6% to 9% of base salary.

Pension expense for all of the defined contribution retirement plans for the years ended June 30, 2017 andPRELIMINARY 2016, totaled approximately $307,000 DRAFT and $326,000 , respectively. 14. BOARD DESIGNATED UNRESTRICTED NET ASSETS

During the year ended June 30, 2013, the board of directors designated the net assets transferred from CAC to SUBJECTACI-NA as the Canadian TO Legacy CHANGE fund. Since the fund balance is the result of an internal designation and is not donor restricted, it is classified and reported as unrestricted net assets.

15. RELATED PARTY TRANSACTIONS

-ACI FOR World Office REVIEW AND DISCUSSION ONLY -

ACI-NA is one of the five regional organizations which participate in the worldwide organization, Airports Council International (ACI World Office), headquartered in Montreal, Canada. ACI-NA shares in the funding of the worldwide headquarters through quarterly dues payments. Amounts paid to ACI World Office under this arrangement during the years ended June 30, 2017 and 2016, totaled approximately $591,000 and $602,000, respectively.

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NORTH AMERICAN REGION OF THE AIRPORTS COUNCIL INTERNATIONAL

NOTES TO FINANCIAL STATEMENTS JUNE 30, 2017 AND 2016

15. RELATED PARTY TRANSACTIONS (CONTINUED)

Effective January 1, 2005, ACI-NA entered into an associate membership dues sharing arrangement with ACI World Office. The arrangement provides for a consolidation of certain ACI-NA associate dues categories with ACI World Business Partner dues. The World Business Partner dues sharing expense for the years ended June 30, 2017 and 2016, was approximately $137,000 and $141,000, respectively.

ACI-NA intends to make a $5,000 annual calendar year contribution to ACI World Office’s Fund for Developing Nations Airports. The purpose of the fund is to offer, upon request, assistance for training and human resources development to airports in developing nations. Fund for Developing Nations Airports contribution for the years ended June 30, 2017 and 2016, was $5,000.

For the years ended June 30, 2017 and 2016, ACI World Office Supporting Services expense consisted of the following: Description 2017 2016 ACI World Office Dues $ 591,037 $ 601,583 ACI World Business Partner Dues Sharing Expense 137,236 140,543 Fund for Developing Nations Airports Contribution 5,000 5,000 Total $ 733,273 $ 747,126

ACI-NA Political Action Committee

ACI-NA established a Political Action Committee (ACIPAC) in 1998. ACI-NA’s financial statements do not include the financial activities of ACIPAC. For ACIPAC’s fiscal year ended December 31, 2016, ACIPAC had receipts of approximately $33,000 and disbursements of approximately $24,000. For the fiscal year ended December 31, 2015, ACIPAC had receipts of approximately $35PRELIMINARY,000 and disbursements of approximately DRAFT $49,000 . ACIPAC’s cash balance as of December 31, 2016 and 2015, was approximately $44,000 and $35,000, respectively.

16. SUBSEQUENT EVENTS SUBJECT TO CHANGE Subsequent events were evaluated through MRL DATE, which is the date the financial statements were available to be issued.

- FOR REVIEW AND DISCUSSION ONLY -

- 18 - MHV DRAFT - 1 8/28/2017

2017 ACI-NA Fall Board Report 72 l e a d e r s h i p r e p o r t Chair's Report

The past year has gone by quickly and the industry has much to be proud of. Those achievements are largely due to the support of ACI-NA’s airport and World Business Partners/Associate and I am very grateful for your assistance. Any association, even one with a talented and committed staff like ACI-NA, is only as strong as the members’ commitment to our shared goals.

Last year in Montreal when I became Chair I outlined my goals for our organization including raising awareness about the significant infrastructure needs of North American airports and the need for a solution to ensure we can keep up with the demands of our passengers and airlines, as well as remain competitive in the global marketplace. Also on the need for additional federal staffing resources to ensure passengers are efficiently processed through airport security checkpoints and international arrivals facilities in the United States and Canada.

In the United States, ACI-NA took a bold step in late July to oppose the House Transportation & Infrastructure Committee FAA Reauthorization bill for one simple reason – it would not allow airports to fund critically needed infrastructure projects over the next five years. Given that the bill only contained a minor boost in AIP funding and did not include an increase to the PFC user fee, there really was no other choice. But that decision helped bolster the Senate Appropriations Committee’s decision to include and approve their FY2018 THUD bill that would allow airports to raise their PFCs on originating passengers up to $8.50 and increased AIP funding to $3.6 billion next year.

I also want to recognize Les Cappetta, Chair of the WBP/Associates Board, for his work to significantly increase industry participation in the Beyond The Runway Coalition. This group of industry allies provided additional support to secure passage of the legislation. We’re not done yet and the path forward for this legislation - and that for funding the entire U.S. government – is unclear. But I am very proud of the work of our industry in making progress on this important U.S. initiative.

In Canada the Ottawa Office has been working for years to gain access to funding for the 21 privately operated National Airports System airports. This includes the six smallest NAS airports who have been seeking access to infrastructure funding already available to their non-NAS airport counterparts of a similar size. I am pleased to report that over the summer, Transport Minister Marc Garneau announced that all NAS airports are eligible to submit expressions of interest for projects under the National Trade Corridors Fund. It was great news that the six airports that were previously ineligible were included in this new government program.

Work continues on ensuring the resources necessary to ensure the federal staffing necessary for airport security and international arrival screening on both sides of the border, my second goal. In the U.S. the outcome of federal funding bills will determine if additional resources will be provided to both TSA and

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CBP. In Canada the news is better as the Ottawa office has made progress working with the Departments of Transport and Finance resulting in the Government considering several potential models for the restructuring of CATSA. While there is not agreement on which option is best, and the CAC is not taking a position on the options, a list of nine objectives that should be met regardless of the direction that government ultimately takes has been submitted to the Government.

While being Chair has kept me very busy, it has been rewarding to work with the staff in Washington, DC and Ottawa on our advocacy for airport priorities in North America. I have enjoyed attending the association’s many conferences and talking with our airport and WBP/Associate members about how ACI-NA can help them be even more successful. It has been great to collaborate with my friend and colleague Scott Brockman, AAAE’s Chair, especially recently when the two associations worked together to establish a fund to help airport workers affected by the devastating impacts of Hurricane Harvey.

But I would be lying if I didn’t say that the highlight of my tenure as Chair was being able to represent our industry, along with Kevin Burke, several airport directors and some airline CEOs, in a meeting at the White House with President Trump. While we have not yet achieved the objectives we set out at that meeting – an uncapped PFC and less federal regulation - I am confident that under the leadership of incoming Chair Candace McGraw and the 2018 Board, we will continue to make progress.

Thank you again for your support. I look forward to working with you on issues of importance for U.S. and Canadian airports in my new role as Immediate Past Chair.

William R. Vanecek Chair ACI-NA Director of Aviation Buffalo Niagara International Airport

2017 ACI-NA Fall Board Report 74 l e a d e r s h i p r e p o r t President and CEO's Report

Welcome to Fort Worth for the 2017 ACI-NA Annual Conference and Exhibition. As the industry’s premier event, our conference provides the airport industry with the opportunity to meet and forge strong partnerships for the betterment of the industry. We are also very proud of our position as the largest “for airports, by airports” event in the world. Thank you for your continued support of this conference – and all of ACI-NA’s educational and professional development events. The learning and networking opportunities offered at these signature conferences results in a stronger, more efficient airport industry.

Since my last report to you, your association continues to remain mission-focused on our work to advance the industry, especially in the areas of infrastructure, passenger facilitation, and industry collaboration. While there is no doubt we have begun making significant progress to provide airports with the tools and resources they need to modernize their infrastructure, our progress is because airports are loudly and directly sharing their stories with their elected officials.

In the United States, Congress is beginning to come around to airport infrastructure needs despite age- old and inaccurate airline rhetoric. In fact, the Senate Appropriations Committee just delivered two key wins for passengers and airports by modernizing the local Passenger Facility Charge (PFC) user fee and increasing funding for the Airport Improvement Program (AIP). This is a very big “first step” in achieving airport priorities, but we need we have much more work ahead of us.

Airports played a vital role on Capitol Hill in securing those wins by supplying members of Congress with actual project examples that speak directly to airport needs. We must continue to impress upon Capitol Hill that airports have significant infrastructure needs that require additional funding.

In Canada, your team at the Canadian Airports Council has been successful in its work with the Government of Canada to provide National Airport System (NAS) airports the opportunity to apply for funding to support more efficient transportation corridors. In particular, the National Trade Corridors Fund will provide Canadian airports with less than 600,000 passengers annually the ability to apply for federal funding to improve safety infrastructure at their airports.

In addition to modernizing airport infrastructure, we have remained fully committed to enhancing passenger facilitation at our member airports. Last year in Montreal, I spoke about our focus on the need for collaboration to develop new tools and resources to keep our members ahead of the curve. You may recall that I touted the success of our Mobile Passport Control app that had reached more than one million downloads. I am pleased to report that Mobile Passport continues to be a success. The app has now expanded to 24 airports and one cruise port. Mobile Passport has been downloaded by nearly 2.5 million users, providing significant relief for limited CBP staffing resources at airports

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Through our work on Mobile Passport, our relationship with Customs has never been stronger. Additionally, we continue to build upon our excellent relationship with TSA and CATSA to provide seamless and expeditious security screening while maintaining the safety and security of the traveling public.

I am excited that we continue to be forward thinking in providing you vital intelligence. We are building on the successful work of the cross-functional taskforce we established a few years ago to help address TNC issues with a new group to solve the new challenges we are facing in this area, including revenue management, information technology, capital planning, and development. I look forward to sharing the results from this group with you in the future.

Members continually tell us that our committees are a valuable resource when it comes to solving industry challenges. The feedback we receive from members helps us ensure we are meeting – or exceeding – member expectations. Earlier this summer, ACI-NA conducted our biennial Membership Satisfaction Survey. I am so pleased to report that 95 percent of our members think we’re doing a great job. Even though we improved that number by 5 percent since 2015, we can always do more and do better.

Our organization is stronger when our members remain engaged. Thank you for your continued participation in your trade association. I hope your time here in Fort Worth is fruitful. Be sure to mark your calendars to attend the 2018 CEO Forum and Winter Board Meeting in Palm Beach Gardens, FL, from February 7 – 9, 2018.

Please feel free to contact me with any questions you might have or if I can be of assistance to you or your respective teams.

Kevin M. Burke President and CEO ACI-NA

2017 ACI-NA Fall Board Report 76 c a n a d i a n a i r p o r t s c o u n c i l Canadian Airports Council Report

Canada’s Airports and Air Transport Sector Face Busy Fall Government Session

For the third year in a row, this summer has seen an unusual level of engagement with the federal government on items of consequence to Canada’s airports.

Canadian Air Transport Screening Authority (CATSA)

You may recall that Transport Minister Garneau last November announced a series of air transport policy initiatives, including a commitment on CATSA to make it accountable to a service level standard. While this wasn’t followed up with funding or concrete commitments in the spring 2016 Federal Budget, as was expected, in early June government reinitiated work on the file by starting consultations with airports and other industry stakeholders on ways to restructure the organization.

Since June the CAC has been working on this with the Departments of Transport and Finance. Government has been considering several potential models for the restructuring of CATSA, which is currently a government owned corporation with no control over funding or service levels. Being considered are keeping the service within government, albeit with reforms on funding and a service level standard, transitioning it outside of government to a corporation that would operate on a not for profit basis, or delegated delivery in which airports would take over delivery of screening within their airports.

While the CAC is not endorsing any particular model, its Screening Working Group has developed nine objectives that should be met regardless of the direction that government ultimately takes. It is expected that the government will indicate this direction after a key internal meeting later this fall.

C-49 Legislation

In two weeks, the CAC (and other transport organizations) will appear before the House of Commons Standing Committee on Transport on legislation to enable Part 1 of government’s transport policy work announced last November. This includes legislative language in the following areas:

• Air Travellers Rights Regime – Focuses on air carriers and their responsabilities in the event of disruptions like delayed/cancelled flights and missing/damaged baggage • CATSA Cost Recovery – allows airports not designated for CATSA screening to buy into the program and for designated airports to supplement baseline services. • Foreign Ownership for airlines – Raises the foreign ownership limit from 25% to 49% • Airline Joint Ventures – New rules for how they are considered.

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The CAC will provide general comments, in particular on traveller experience generally, but also on CATSA and foreign ownership.

On CATSA, while the additional flexibility is welcome, unless the current efforts to secure a service standard and fix funding come to a positive outcome, there is a concern that this provision would allow government to set an insufficient service standard or none at all, leaving airports to backstop the underfunding.

Small Airport Infrastructure Funding

One long standing advocacy goal that yielded positive results early in the summer was the government’s new National Transportation and Trade Corridors Fund.

This is the first national fund to be open to Canada’s 21 privately operated National Airports System airports. This includes the six smallest NAS airports who have led a multi-year campaign for access to infrastructure funding already available to non-NAS airports of a similar size.

Airport Policies

In addition to CATSA, key decisions are expected from government on a number of other areas, which are collectively being characterized as “Airport Policies.” While details are being held very close pending cabinet discussion/decisions, this tranche of work would be “Part 2” of the work launched last November and could include developments in one or several of the following new areas:

• Airport ownership • Airport rent • Airport governance/economic oversight • Arrivals Duty Free

The CAC has not taken a position on airport ownership, but there has been interaction on the other files over the years to varying degrees. As these files have the potential to impact Canada’s airports in important ways, the CAC is monitoring timelines and developments very closely.

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ACI-NA U.S. Policy Council Meeting ACI-NA Annual Conference Fort Worth Convention Center Saturday, September 16, 2017 8:30 AM -11:45 AM Room: 201A

AGENDA

AIRPORTS ONLY: 8:30 AM – 8:35 AM WELCOME AND INTRODUCTIONS Rob Wigington, Chair, ACI-NA U.S. Policy Council Kevin Burke, President and CEO, ACI-NA

8:35 AM – 9:05 AM PUBLIC PRIVATE PARTNERSHIPS AND ASSET RECYCLING Rob Wigington, Chair, ACI-NA U.S. Policy Council Kevin Burke, President and CEO, ACI-NA Debby McElroy, Executive Vice President, ACI-NA Annie Russo, Vice President, Government and Political Affairs, ACI-NA

9:05 AM – 9:30 AM AIRPORT GROUND TRANSPORTATION ISSUES Tom Devine, General Counsel, ACI-NA Annie Russo, Vice President, Government and Political Affairs, ACI-NA

OPEN SESSION: 9:30 AM – 9:45 AM THE LEGISLATIVE ROAD AHEAD Annie Russo, Vice President, Government and Political Affairs, ACI-NA Steve Palmer, Vice President, Van Scoyoc and Associates

9:45 AM- 10:05 AM INTERNATIONAL AIR SERVICE Kevin Burke, President and CEO, ACI-NA Matt Cornelius, Vice President, Air Policy, ACI-NA

10:05 AM- 10:35 AM BREAK

10:35 AM- 11:00 AM IMPROVING INTERNATIONAL ARRIVALS Matt Cornelius, Vice President, Air Policy, ACI-NA Greg Cota, Senior Director, Government and Political Affairs, ACI-NA

11:00 AM – 11:15 AM SCOPE OF MANDATORY INTERLINING POLICY Matt Cornelius, Vice President, Air Policy, ACI-NA

11:15 AM – 11:30 AM PROGRESS ON THE VOLUNTARY POLLUTION REDUCTION PROGRAM Melinda Pagliarello, Director of Environmental Affairs, ACI-NA Chad Leqve, Manager-Director, Environment Department, Minneapolis-St Paul Metropolitan Airports Commission Dean Mericas, Ph.D., Senior Aviation Consultant, Environmental Compliance, Mead & Hunt

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Leadership

Chair: Rob Wigington Nashville, TN Immediate Past Chair: Joe Lopano Tampa, FL Committee Secretary: Annie Russo ACI-NA

Mission Statement

The U.S. Policy Council is the policy making body for federal government programs, legislation, and regulations affecting airport operators. The Council sets ACI-NA's government relations activities to represent and advocate the interests of U.S. airports before Congress and the administration, particularly the Department of Transportation (DOT), Federal Aviation Administration (FAA), and Department of Homeland Security (DHS). The Council’s Subcommittee on Political Affairs brings together airport government affairs professionals and airport directors from small, medium and large hub airports to provide recommendations on lobbying and tactics to achieve ACI-NA’s legislative goals.

Accomplishments Since Last Report

Appropriations

In two major wins for the airport industry, the Senate’s Fiscal Year 2018 Transportation-HUD (THUD) Appropriations Bill would allow airports to raise their PFCs on originating passengers up to $8.50, and would increase AIP funding to $3.6 billion next year. The bill also calls for large hubs to forego all of their AIP entitlement dollars, which would then cycle back into the Small Airports Fund. The Senate Appropriations Committee unanimously approved the bill in late July.

Committee leaders have long expressed their support for increasing airport infrastructure funding options. They urged the airport industry to oppose any legislation that did not benefit the entire airport system, and they were pleased to learn of ACI-NA’s opposition to the House FAA reauthorization bill due to a lack of infrastructure funding for airports.

The committee included these PFC and AIP provisions in their bill to provide greater flexibility for airports to make much-needed capacity improvements, and they asked the entire airport community to support these provisions against a barrage of negative attacks from the airlines. The airport industry stepped up big time, and no senators offered an amendment to strip the PFC and AIP provisions from the bill.

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U.S. Government Affairs

ACI-NA’s Beyond the Runway Coalition also provided additional support and justification for the committee’s action. The coalition brings together a wide variety of industry stakeholders seeking to ensure that airports have the resources they need to remain competitive and thriving economic engines in their communities. Members of the coalition sent a letter of support to the Appropriations Committee and organized additional letters of support from the Transportation Construction Coalition (TCC) and the Highway Materials Group and a positive blog post from the Competitive Enterprise Institute, a libertarian think-tank.

While under regular legislative order the next step for the THUD bill would be Senate floor consideration, it is unlikely to follow that path this year because Congress has not yet approved a budget resolution and the prospects of approving all appropriations bills before the end of the fiscal year on September 30 are dim. The House has approved its own version of the THUD bill, and it is most likely that the two Appropriations Committees will negotiate a final, omnibus spending bill that includes funding for all of the federal government.

FAA Reauthorization

In late June the House Transportation & Infrastructure Committee and the Senate Commerce Committee both advanced separate FAA reauthorization proposals. Neither bill adjusted the PFC, but some airport priorities were included in each bill. Most notably, the Senate bill increased AIP funding, removed FAA approval for many airport land-use decisions, and expanded AIP and PFC eligibility for public-area security projects. The House bill included a slight boost in AIP funding.

The House bill does allow airports to impose a $4.50 PFC under the same standards as a $3.00 or lower PFC, and provides a streamlined process for imposing PFCs at small hubs, medium hubs, and large hubs as currently provided at non-hubs. However, the controversial proposal to spin-off ATC from the FAA dominated the public debate over the House bill. This has so far kept the bill from coming to the House floor and the lack of any real commitment to address airport funding in the bill pushed ACI-NA to publicly oppose the House bill in July. ACI-NA took great time and care in making this decision and in ensuring the messaging of our opposition is strictly focused on the lack of airport infrastructure funding. That fundamental issue has been and will remain the top FAA reauthorization priority for ACI-NA. The Senate bill is not without its own controversy. The Commerce Committee’s approval came after a prolonged debate and party-line vote on an amendment by Chairman John Thune (R-SD) to expand the types of training that can be credited toward the federal 1,500 hour requirement for commercial airline first officers, subject to FAA approval. Ranking Member Bill Nelson (D-FL) relayed Minority Leader Chuck Schumer’s (D-NY) strong opposition to the Thune amendment, saying that he will use whatever parliamentary tactics he has to stop the FAA bill from moving forward unless the provision is removed or substantially altered. The bill has not reached the Senate floor yet, though we understand senators have had some informal conversations about resolving the dispute.

H.R. 1265, The Investing in America: Rebuilding America’s Airport Infrastructure Act

On March 1, 2017, House Transportation Committee Ranking Member Peter DeFazio (D-OR) and Representative Thomas Massie (R-KY) introduced a bill that uncaps the PFC (H.R. 1265) with the

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help and support of ACI-NA. Since that time, ACI-NA has been working to gain cosponsors and stakeholder support of the legislation. One of the largest developments since the last report in June was that conservative heavyweight group Heritage Action officially endorsed the bill leading up to the House markup of the FAA reauthorization bill.

During the House Transportation Committee’s FAA reauthorization markup, H.R. 1265 was unfortunately not offered as an amendment. Heritage Action’s announcement that they would support H.R. 1265 if it were offered as an amendment helped garner support among Members on the Committee. In fact, the House T&I Committee Republicans held a whip count on the issue and ACI-NA has been told by several sources that the count came back in our favor. Yet despite all of our collective efforts, there was significant pressure applied to our supporters on the Committee to withhold the amendment from the markup. As you can imagine, this decision came down to the wire. Although this is not the outcome we desired, we will be reevaluating the House strategy moving forward. Congressman Massie has asked the airport industry for help weighing in with their Members of Congress to get more Republican Cosponsors for H.R. 1265. Ranking Member DeFazio also remains committed to helping push for an adjustment to the PFC.

Building Additional Support for Airport Priorities

ACI-NA has continued to work with Beyond the Runway (BTR) Coalition members to ensure continued engagement on airport priorities. In late June, the BTR Coalition sent a letter in support of the Massie DeFazio bill being included as an amendment to the House FAA reauthorization proposal. This letter included 20 signatories. BTR members Sheet Metal and Air Conditioning National Association (SMACNA) and Building America’s Future also sent their own letters to members of the House Committee on Transportation and Infrastructure. Additionally, the TCC sent a letter in support using much of the same language as the BTR Coalition letter, giving the BTR Coalition’s work an incredible boost.

Additionally, the BTR Coalition sent a letter to the Senate Commerce Committee in late June urging that language modernizing the PFC and increasing AIP funding be included in the Senate FAA reauthorization bill. This letter included 16 signatories.

In late July, the BTR Coalition sent a letter in support of the Senate THUD Appropriations Bill that included a $4 increase to the PFC and increased AIP funding. This letter had 39 signatories, including BTR Coalition members and nonmembers. Additionally, the TCC and Highway Materials Group (HMG) sent their own letters of support using BTR Coalition language.

Municipal Bonds and AMT Relief

ACI-NA has completed a new white paper that outlines the importance of municipal bonds in airport financing and offers suggestions to policy makers on improving the utility of municipal bonds for airports. With Tax Reform a top priority for House and Senate Leadership as well as the Trump administration, this new paper will help inform tax policy makers on ACI-NA’s positions.

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ACI-NA also continues to work closely with the Municipal Bonds for America (MBFA) Coalition and the Public Finance Network (PFN). We worked with MBFA and PFN to submit comments to the Senate Finance Committee in support of municipal and private activity bonds in July. ACI-NA also endorsed S.1229, the Move America Act which was introduced by Senators John Hoeven (R-ND) and Ron Wyden (D-OR) that would remove the AMT from PABs.

In our ongoing work for municipal financing, ACI-NA continues to support the Government Financial Officers Association (GFOA) on their efforts to enact legislation classifying Municipal Securities as High Quality Liquid Assets in order to keep demand for the municipal bond high, thus keeping the interest costs of issuance low. ACI-NA officially endorsed HR 1624, The Municipal Finance Support Act, legislation that directs the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (OCC) to classify all investment grade, liquid and readily marketable municipal securities as High Quality Liquid Assets (HQLA). This legislation was marked up and passed by the House Financial Services Committee in July.

Security/Facilitation

With the late July appointment of DHS Secretary John Kelly as White House Chief of Staff, DHS and its component agencies faced another high-level leadership vacancy. Both the DHS and CBP are operating with acting heads, though the Trump administration has nominated current CBP acting commissioner Kevin McAleenan to lead CBP. In early August, the Senate confirmed retired Coast Guard Vice Admiral David Pekoske to lead the TSA.

Security

In July the House approved H.R. 2825, the DHS Authorization Act, a bill to update programs and offices throughout DHS and its component agencies, including the TSA. This is the first measure to reauthorize DHS programs since the department was created 15 years ago. The bill has moved to the Senate for its consideration.

The bill includes provisions to ensure that TSA continues to staff exits lanes, maintains 30 VIPR teams, reimburses airports for providing local law enforcement officers to support checkpoint screening operations, and continues the Innovation Task Force — all programs that ACI-NA successfully worked to protect after the Trump administration proposed reducing or eliminating them in its Fiscal Year 2018 budget request. ACI-NA also worked closely with the bill’s sponsors to clarify the bill’s requirements and minimize the operational impact of these provisions on airport operators.

The Senate Commerce Committee is drafting its own TSA authorization bill to update programs and activities at the agency, which is expected to be released in September. ACI-NA has met with drafters of the bill to share our organization’s security policy priorities and discuss the state of security at airports around the globe.

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Facilitation

Before the August break, bills to bolster border security were introduced in both the House and the Senate. They call for building additional physical barriers along the southern border, adding more CBP officers and Border Patrol agents, and fully implementing a biometric entry-exit system.

Specifically, the bills would require CBP to have at least 27,725 officers – 5,000 more than today – at the ports-of-entry by September 30, 2021, which would fulfill the staffing level called for in CBP’s current workforce staffing model. The bills also would streamline the hiring process for military veterans and law enforcement personnel and provide additional incentives for current CBP officers to stay on the job.

Additionally, CBP would have to deploy a biometric-exit system at 15 airports within 18 months and at all airports within five years. The bills also call for airports to provide and maintain space for CBP to conduct its biometric-exit program.

The House bill, though, adds an additional requirement for airports to provide CBP with equipment to conduct its biometric exit program. ACI-NA is working with the House sponsors to remove this costly unfunded mandate from their bill, which is expected to be considered by the House Homeland Security Committee in mid-September.

ACI-NA PAC Activity

ACI-NA PAC will host its annual PAC Luncheon at the ACI-NA Annual Conference and Exhibition on Monday, September 18, 2017, in Fort Worth, TX.

ACI-NA PAC has made political contributions this summer to House T&I Ranking Member Peter DeFazio (D-OR) and House Aviation Subcommittee Ranking Member Rick Larsen (D-WA).

Board Requested Activities

None at this time.

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Leadership

Chair: Molly Waits Houston, TX Vice Chair: Bryan Dietz Pittsburgh, PA Immediate Past Chair: Jamy Kazanoff Austin, TX Board Liaison: Michael Landguth Raleigh, NC Committee Secretary: Matt Cornelius ACI-NA

Mission Statement

The ACI-NA U.S. International Air Service Program, which is funded by a special assessment on participating U.S. airports, promotes the interests of those airports with respect to international air service and airport proprietary rights in U.S. international agreements and relations. The agreements help to determine international combination and all-cargo air services and foreign airline rights at U.S. airports. The Program keeps airports apprised of developments in U.S. international aviation and participates as a member of the U.S. delegations that negotiate the agreements. The Program develops and advocates agreed positions on international aviation issues when not precluded by competing airport interests. In addition, the Program plans and holds the annual International Aviation Issues Seminar.

Accomplishments Since Last Report

Gulf Carrier Debate: ACI-NA President and CEO Meets with U.S. Secretary of State

Since President Trump has taken office, the “big 3” U.S. carriers (American, Delta and United) have re-ignited the allegations of unfair competitive practices by the “Gulf 3” (Emirates, Etihad and Qatar). The big 3 are seeking to open the air services agreements between the U.S. and the United Arab Emirates (U.A.E.) and Qatar.

ACI-NA has coordinated with the U.S. Airlines for Open Skies (FedEx, Atlas Air, JetBlue and Hawaiian) coalition to produce a letter highlighting the benefits of open skies agreements and underscoring the existing Federal law for adjudicating allegations of unfair competitive practices.

ACI-NA President and CEO Kevin Burke took part in a meeting of CEOs representing the coalition partners with Secretary of State Rex Tillerson in early August to underscore the coalition’s perspective on protecting open skies agreements. The meeting was productive and the Secretary indicated there was an ongoing interagency review of the situation and that the government may take action. The CEOs of the

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big 3 U.S. carriers met with the Secretary on August 30.

United Kingdom (U.K.): ACI-NA President and CEO Meets with U.K. Secretary of State for Transport; U.S. and U.K. Hold Informal Scoping Discussions on Post-Brexit Agreement

The U.K. Secretary of State for Transport, Chris Grayling, met with ACI-NA President and CEO Kevin Burke in Washington, D.C. in late July. The Right Honorable Chris Grayling shared the U.K.’s desire to mitigate any disruption to the transatlantic commercial air service marketplace as a result of Brexit. He also emphasized the importance of engagement with stakeholders in the process. Mr. Burke concurred and highlighted the importance of open service between the U.K. and the U.S. after Brexit occurs.

Representatives of the U.S. State Department (State) and the U.S. Department of Transportation (DOT) met with representatives of the U.K. Department for Transport (DfT) in mid-August in Washington, D.C. for an informal scoping discussion on the next air service agreement between the U.S. and the U.K. anticipating the exit of the U.K. from the European Union on April 1, 2019 (post-Brexit).

The goal of the meeting was to understand from the U.K. their plan to establish air service agreements with various countries – most notably with the European Union (E.U.) post-Brexit; to clarify objectives for both the U.S. and the U.K. for a post-Brexit aviation relationship; to give the U.K. an understanding of U.S. legal requirements for air carrier operations; to express the U.S.’s desire to ‘clean-up’ the air service agreements with British overseas territories; and to walk through the U.S. and U.K. open skies model texts to perhaps identify areas of disagreement.

The U.S. reported the DfT lacked clarity and knowledge of their competencies and their positions, providing the U.S. with only an aggressive timetable for completion of an agreement and the need for the agreement to include liberal ownership and control provisions. The DfT hoped to begin negotiations immediately and conclude an agreement by December 2017. The U.S. agreed it will not begin negotiations until the DfT can provide more clarity around its position and achieves some progress in negotiating an air services agreement with the E.U. The two sides scheduled a video conference in September to continue the dialogue but not to begin negotiations.

European Union: U.S. and E.U. Celebrate 10th Anniversary of Open Skies and Hold 20th Joint Committee Meeting in Washington, D.C.

Representatives of the E.U. traveled to Washington this July to help the U.S. celebrate the 25th anniversary of its first open skies agreement (the Netherlands) as well as the 10th anniversary of the E.U. – U.S. Air Transport Agreement (open skies). The anniversaries were marked with a special session at the State Department with multiple keynote speakers lauding the success of the policy of open skies.

After the celebration, the group kicked off the 20th Joint Committee meeting. Among the highlights of the meeting include Article 21 (extension of benefits for the E.U.), wet leasing and discussions on legislative updates for the E.U. and the U.S. On Article 21, the E.U. furthered its contention that it has satisfied the requirements of the provisions and is now entitled to the expansion of benefits as set forth in the agreement. The U.S. believes the E.U. has not gone far enough to meet the requirements. On the issue

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of wet leasing, the two sides are close to beginning negotiations based on a mandate recently received from the E.C. The U.S. DOT again cautioned the Europeans that the negotiations should move swiftly because the DOT’s benevolence in granting waivers to European carriers may run out in the near future.

There was much discussion about the changes in the security and visa requirements over the past nine months. The E.U. was very vocal about the need to work collaboratively as early efforts by the administration caused concerns among the E.U. and its member states.

Air Transport Regulatory Panel (ATRP) 14th Meeting

In July, the ATRP held its 14th meeting in Montreal to tackle the lack of progress on creating a Multilateral Air Services Agreement (MASA) and other issues including potential passenger rights standards. Despite the lack of progress on the MASA and significant fundamental disagreements between many states, the ATRP will continue to attempt to create an agreement. Smaller groups will be formed to work on the core areas of disagreement.

European Union: U.S. DOT Issues Show Cause Order Granting Norwegian Air U.K., Limited a Foreign Air Carrier Permit

Just after the Joint Committee meeting, the U.S. DOT issued a show cause order tentatively granting Norwegian Air U.K., Limited (NAUK) a Foreign Air Carrier Permit. Since the order was issued, many industry parties have filed objections and letters of support for the issuance of the permit. The case is very similar to the Norwegian Air International application and it is likely the DOT will issue a final order permanently granting the permit.

Upcoming Actions and Events

None at this time.

Potential Concerns and Issues

The U.S. will continue informal talks with the U.K. to understand their position dealing with future aviation agreements after leaving the E.U. ACI-NA is coordinating with relevant government agencies and its airport association colleagues in the U.K. and the E.U. to ensure U.S. airport operator positions are properly represented and communicated.

The frequencies available for combination carrier services under the existing U.S. – China Air Services Agreement is just short of its limit for Zone 1 (Beijing, Shanghai and Guangzhou) points for U.S. carriers and believed to be near the limit for Chinese carriers. ACI-NA is monitoring U.S. – China relations and waiting for the opportunity to press for restarting negotiations for more frequencies.

ACI-NA will continue to monitor ongoing U.S. government interagency review of the Gulf 3 carrier situation and advocate continued support for liberalized air service agreements and the proper adjudication of complaints under recognized processes.

2017 ACI-NA Fall Board Report 87 u . s . p o l i c y b o a r d r e p o r t U.S. International Affairs

ACI-NA will continue to monitor aviation relations with the European Union, China, Cuba, Japan, and Mexico and participate in consultations as appropriate. It also will continue to monitor U.S. visa wait times and policies, Visa Waiver Program (tightening of requirements, problems with some countries’ implementation of requirements), and, if possible, the negotiations on trade agreements with respect to aviation issues.

ACI-NA will continue to monitor aviation relations with the European Union, China, Cuba, Japan, and Mexico and participate in consultations as appropriate. It also will continue to monitor U.S. visa wait times and policies, Visa Waiver Program (tightening of requirements, problems with some countries’ implementation of requirements), Open Skies/Gulf carrier debate and, if possible, the negotiations on trade agreements with respect to aviation issues.

Board-Requested Activities Update

None at this time.

2017 ACI-NA Fall Board Report 88 commissioners r e p o r t Commissioners

Leadership

Chair: Betty Fletcher Huntsville, AL Vice Chair: Lois Wooten Savannah, GA Immediate Past Chair: Leland Burch Greer, SC Board Liaison: Bill Vanecek Buffalo, NY Committee Secretary: Hannah Giltner ACI-NA

Mission Statement

The Commissioners Committee is made up of representatives from among the more than 400 airport Board Members, Commissioners, and Trustees who serve on aviation boards, commissions, councils, and authorities, and who set policy for and oversee the management of their airport organizations. The main mission of the Committee is to share information and expertise from among their peers, to promote the discussion and formation of policy positions in the support of aviation, and to provide training and educational opportunities for its members.

Accomplishments Since the Last Report

• The Commissioners Committee has had one Committee Call that focused on updating the term limit length and succession plan for the Committee.

ACI-NA Commissioners Scholarship Program

• The Commissioners Committee’s Scholarship Subcommittee has committed to maintaining the current scholarship requirements this year, continuing with awarding one annual scholarship of up to $5,000. The next scholarship will be awarded in the Spring of 2018.

Succession Plan

• The Committee continues to explore the option of moving to a two year term for the Commissioners Committee Chair and plans on voting on the change at their next meeting in Fort Worth, TX on Sunday, September 17, 2017 at the ACI-NA Annual Conference and Exhibition.

Upcoming Events

2017 ACI-NA Fall Board Report 89 commissioners r e p o r t

Commissioners

• The next Commissioners Committee meeting will be held in conjunction with the ACI-NA Annual Conference in Fort Worth, TX on Sunday, September 17, 2017. The next ACI-NA/ AAAE Commissioners Conference will take place on May 6-8, 2018 in Las Vegas, NV.

Potential Concerns and Issues

The Commissioners Committee is actively seeking more Committee Liaison participation to ensure the Commissioners are aware of the work of other ACI-NA committees.

Board-Requested Activities

None at this time

2017 ACI-NA Fall Board Report 90 a s s o c i at e s r e p o r t WBP/Associates Board of Directors Report

Leadership

Chair: Les Cappetta Aviation Alliances, LLC Vice Chair: Benjamin DeCosta DeCosta Consulting Immediate Past Chair: Susan Prediger SP Consulting Board Liaison: Maureen Riley Committee Secretary: Veronica Gerson ACI-NA

Mission Statement

The mission of the World Business Partners (WBP)/Associates of Airports Council International – North America (ACI-NA) is: 1. To support the mission of ACI-NA and the Airports Council International (ACI); 2. To increase the involvement of WBP/Associates in the airport industry; 3. To serve as a resource for Airport Members of ACI-NA and ACI and to provide and exchange information relative to improving airport management, operation, development, sustainability, financing, marketing, safety, security and maintenance; 4. To enhance opportunities for business development by WBP/Associate Members with Airport Members of ACI-NA and with other WBP/Associate Members; and 5. To serve as a resource and provide advice and independent input with respect to positions and practices adopted or under consideration by ACI-NA and to promote, support and serve as an advocate for positions and practices that will advance the safe, secure and efficient operation of the North American and international aviation system.

Accomplishments Since Last Report

• The WBP/Associates Board has worked with ACI-NA staff to activate the WBP/Associates webpage on the ACI-NA website.

• Les Cappetta, Chair, has led a push to encourage members to join the Beyond the Runway Coalition (BRC). Due to his leadership, we have had 36 new members join, resulting in a total of 76 BRC members.

Upcoming Actions and Events

• The WBP/Associates Board will host a session with Airport Directors at the ACI-NA/World

2017 ACI-NA Fall Board Report 91 a s s o c i at e s r e p o r t WBP/Associates Board of Directors Report

Annual Conference in Fort Worth, Texas in September. This roundtable breakfast session will be held on Tuesday, September 19, 2017 from 7:30 am - 9:00 am.

• The WBP/Associates Board, along with ACI-NA staff, are reviewing proposed revisions to the Board’s Rules and Regulations. This will reflect changes to clarify the transition of the Vice- Chair to the Chair position and update the requirements for the Chair role, which would continue to be elected annually through the current year’s Board members vs. those newly elected.

Potential Concerns and Issues and Board-Requested Activities Update

• The WBP/Associates Board would like to discuss how/when it is determined that certain meetings are listed as Airports Only

• The WBP/Associates Board would like to discuss the status of Challenge 2025

Board-Requested Activities

None

2017 ACI-NA Fall Board Report 92 a c i w o r l d ACI World Report

ACI-NA Board Report Fort Worth, TX September 16 2017

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2017 ACI-NA Fall Board Report 93 a c i w o r l d ACI World Report

Promoting airport interests at ICAO (Safety)

Taxiway naming • Aim is to reduce incursion risk, by assisting pilots with wayfinding and understanding of Tower instructions • We are working with IFALPA and the ICAO ADO Panel • Airports would have no obligation to implement until next major redevelopment, and only after full consultation • Next step – formal review by ICAO Safety KPIs • We intend to collect worldwide data (same data set for all regions) for an annual publication. No data would be published for individual airports • Pilot programme in 2017 to collect 4 years of data (2013-2016; calendar year) • ACI Regional offices to promote the pilot program with their member airports • Data will be consolidated at the end of Jan 2018 and initial results will be discussed by STSC in February 2018

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2017 ACI-NA Fall Board Report 94 a c i w o r l d ACI World Report

Promoting airport interests at ICAO (Safety)

Airport planning and design • ACI contributing to re-writing of ICAO manual on Master Planning, for 2018 Subject to be added include: Stakeholder Collaboration, Surface Access, Airport City Development, Passengers with Reduced Mobility, etc. Performance-based Safety Regulation • ACI supports performance-based regulation, using data that reflects the current performance of aircraft • Can be applied to both operations and design (see ACI resolution #6, 2015, and ACI WP for ICAO Assembly 2016) • Aerodrome operators should have the flexibility to mitigate risk in different ways, by applying a safety assessment process consistent with SMS practices. 2020 planned amendments to Annex 14 Major change to Obstacle Limitation Surfaces under study: • Will use approach speed – based on aircraft approach performances • Obstacle Free Surfaces (compulsory) • Obstacle Evaluation Surfaces (any infringement requires an aeronautical study) 3

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Promoting airport interests at ICAO (Safety)

Ground Handling • ACI “template” for license agreement from airport operator to ground handler • Structure and content of a Ground Handling License • Explanations on tendering process, best practices on licensing and service provision • Review by committee in Feb 2018 • Presentation to the ACI Board in June 2018 Other issues • Land Use Planning – Resolution drafted for the WGB in October • Wildlife – ACI leading ICAO group to re-write ICAO’s guidance manual on wildlife hazard • Drones – New ACI group with focus on prevention/mitigation of “nuisance” drone hazard

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2017 ACI-NA Fall Board Report 96 a c i w o r l d ACI World Report

Promoting airport interests at ICAO (Security)

• The US and UK ban on portable electronic devices continues to be a top issue. ACI has supported the interests of airports including: • Advocating for better sharing of information and coordination among States and with industry to understand options for alternative measures • Participation of ACI in a new AVSEC Panel Task Force on concealed explosives • Gathering and sharing of information with regard to impacts • Proposals (through Smart Security) for alternative technologies • Contributed to development of guidance material for inclusion in the ICAO Security Manual to be published Sept 2017 • Continued contribution to the development of new ICAO Global Aviation Security Plan (GASeP) • Participating in Secretariat Study Group on Cyber Security

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Promoting airport interests at ICAO (Economics)

ICAO Airport Economic Panel (AEP-ANSEP/6) and upcoming steps

Cross-subsidization • Support to recognize the benefits of airport networks in ICAO’s material • WG on determining safeguards to ensure compliance of cross-subsidies practices with the ICAO framework – ACI is part of the WG

Revision of the Airport Economics Manual (Doc 9562) • WG on a comprehensive review of Doc 9562, first meeting planned in Q1 2018 in GVA • ACI identifies the interpretation of the cost-relatedness principle and market power assessments as priorities, and is coordinating with the Regions and the WESC to refine and define key areas of revision

ICAO Aero Tariffs platform • ACI continues to support the development of the ICAO platform to: a) retrieve schemes of charges; b) estimate turn around costs at airports; and c) run benchmarks • First webinar to members planned for LAC on September 22 2017, other Regions to follow 6

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ACI Economics publications:

- Airport Economics Report and Key Performance Indicators

- World Airport Traffic Report and Dataset (September 18 2017)

- World Airport Traffic Forecasts (November 1 2017)

- ACI Policy Brief on airport networks and the sustainability of small airports (October 17 2017)

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Collaboration with IATA

Security Continued partnership to advance technologies and innovation at the security checkpoint • Phase 1 implementation phase, including automated lanes, parallel divesting, checkpoint configuration, centralized image processing • Phase 2 emphasis on screening technologies to address PEDs issue, open technologies, use of data, differentiated screening • Held US workshop in March in Washington DC – well received • Continued cooperation with TSA Innovation Task Force including ongoing trials in Boston

Strategic review of the IATA World Slot Guidelines (WSG) • Strategic review of the WSG launched in June 2017 in Kuala Lumpur • Revision supervised by a management group and carried by for task forces focusing on: a) airport levels; b) historic determination; c) slot performance monitoring; and, d) access to congested airports. • Airport operators from all regions active in the task forces 8

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Promoting airport excellence: ACI Safety Handbooks

Upcoming handbooks:

▪ 2017: Managing operations during construction

▪ 2017: Rescue and fire fighting

▪ 2018: Airfield Maintenance and Asset Management

▪ 2018 : A-CDM Primer

▪ 2018: Aerodrome Certification Guide

▪ 2019: Adverse Weather Operations 9

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Promoting airport excellence: Safety events

• ACI Safety Forum, Port Louis, Mauritius, October 16 • ICAO Remotely Piloted Aircraft Systems Symposium, Montreal, September 19-21, • ICAO Global Runway Safety, Lima, Peru, November 20-22 • ICAO Global Air Navigation Industry Symposium and Safety and Air Navigation Implementation Symposium, Montreal, 11-15 December

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Promoting airport excellence: APEX in Safety

• 14 safety reviews confirmed for 2017; upcoming: • Lubumbashi, Democratic Republic of Congo (Oct.) (New member) • Kinshasa, Democratic Republic of Congo (Oct.) (New member) • Guadalajara, Mexico (Sept.) • Hahn, Germany (Oct.) (New member) • Santos Dumont (Rio de Janeiro), Brazil (Dec.)

• APEX can provide assistance to US airports for SMS implementation

• Regional APEX objectives to be set in 2018 between ACI World and NA

• Pilot in Environment to be conducted in Mauritius, week preceding WAGA

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2017 ACI-NA Fall Board Report 103 a c i w o r l d ACI World Report

Thank you to our North American Safety Partners: • Aéroport international Jean-Lesage de Québec • Aéroports de Montréal • Allegheny County Airport Authority • City of Atlanta, Department of Aviation • City of San Antonio-Department of Aviation • Edmonton Airports • Federal Aviation Administration (Technical Assistance Agreement) • Greater Toronto Airports Authority • Halifax International Airport Authority • Long Beach Airport • Miami-Dade Aviation Department • Ottawa International Airport Authority • Port of Oakland • Port of Seattle, SEA-TAC Airport • Sacramento County Department of Airports (Sacramento County Airport System) • Salt Lake City Department of Airports • San Diego County Regional Airport Authority • San Francisco International Airport • Sarasota Manatee Airport Authority • Savannah Airport Commission • Vancouver Airport Authority • Billy-Bishop Airport, Toronto • Hamilton International Airport 12

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Promoting airport excellence: APEX in Security

• Emphasis on capacity building at ICAO and globally • Presented on assistance including APEX at UN Security Council Counter Terrorism Committee in June 2017 • APEX pilots conducted in Zambia (July) and Indonesia (August) • European Commission will sponsor reviews in Africa • Ongoing partnership with Australian Office of Transport Security for Asia Pacific Region • Seeking Hosts and Security Partners • Official launch of programme: October 17 2017 at ACI Africa/World Annual General Assembly, Conference and Exhibition In Mauritius

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Promoting airport excellence: Security

• Handbook on Landside Security (end 2017) • Handbook on Quality Management (end 2018) • Training • 3 new courses • Management of Airport Security (in collaboration with ICAO) (Oct. 2017) • Airport Security Operations • Airport Security Quality Management (end 2017) • E-learning certificate to be available (end 2017) • Events • Support Airport Exchange (Oman, December 6 2017) • ICAO Aviation Security Symposium (Montreal, September 12–15 2017)

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Promoting airport excellence: Environment

• ACERT version 5.0 launched with new Software License Agreement • APEX in Environment Task Force established by the ENV Committee (WENSC) developing material for first pilot – looking for interested airports to host a first pilot review • Upcoming DNA in Environment trainings: – LAC - Miami, September 20-21 2017 – Africa – Mauritius, October 19-20 2017 • ACI World Environment Standing Committee to convene in Mauritius on October 12-14, providing support for the Africa region to develop their independent Environment Committee – Observers are welcome to join the meeting • Event to support: ICAO Seminar on Green Airports, November 29-30 2017

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Promoting airport excellence: Training ▪ 2018 NA plan: ▪ 21 courses to be scheduled ▪ Course topics: ▪ AELP ▪ AMPAP mandatory courses ▪ Safety Management Systems (FAA) ▪ Airport Communications and Public Relations ▪ Revenue generation ▪ Customer service management

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Thank you to our Hosts:

NA training centre

NA training venues

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2017 ACI-NA Fall Board Report 109 a c i w o r l d ACI World Report

Promoting airport excellence: ACI Developing Nations Assistance (DNA) programme

2018 plan • Delivery of at least 14 seminars • 1 Emergency exercise to be hosted in April 2018 by HJAIA • Continuing to subsidize APEX programmes • Fundraising campaign in progress • Creation on an endowment fund • 501 (c)3 status via CIFAL Atlanta UNITAR

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Promoting airport excellence: ASQ Total # participating airports in ASQ Departure Main: 315 (up from 283 at the end of 2016) - Asia Pacific: 99 (+19) - Europe: 109 (+2) - Africa: 22 (+ 5) - Middle East: 11 (+1) - North America: 47 (+3) - LAC: 27 (+5)

Total # participating airports in ASQ Departure Regional: 26 (up from 20 at the end of 2016): - Asia Pacific: 0 - Europe: 14 (+1) - Africa: 8 (+3) - Middle East: 0 - North America: 0 - LAC: 4 (-2)

Total # participating airports in ASQ Departure Unique: 2 (up from 2 at the end of 2016) - North America: 1 - Europe: 1

The total Airports in the ASQ Departure programme: 343 (up from 305 at end of 2016)

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Promoting airport excellence: ASQ

• New Employee Survey for Customer Experience and new Arrivals Survey • New ASQ product bundling rebates (savings of up to 5%) • ASQ departure participation fee increase in 2018 (Main, Regional and Unique) • New mandatory fieldwork training certification as of Q4 2018 – included in 2018 ASQ fees • ASQ services and products invoicing in Canadian Dollars • Publications : • Airport Cleanliness. ASQ Best Practice Report – August 2017 • Do cultural differences influence the way airports should deliver Customer experience? Research report - September 2017 • Upcoming Forum: Detroit, 2-4 October

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Promoting airport excellence: Facilitation Baggage Tracking • IATA’s “Resolution 753” aims to track checked baggage from drop-off to delivery. An Annex to the ACI-IATA general collaboration MoU has been signed. Biometric Identity Management (Smart Identity) • ACI Smart Identity task force working closely with IATA’s One ID working group to produce guidance documents on the Identity Management of passenger process during the completed airport journey using Biometrics technology. Business Continuity • Joint Facilitation and IT task force working to produce documents defining guidance for airports during times of operational disruption.

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Promoting airport excellence: Airport IT

Airport Beacons – Common registry • MoU to be executed with SITA to develop and launch an Industry Beacons Registry • MoU currently under review. Registry is expected to launch in Q4 2017

Airport Digital Transformation • Airport Digital Task Force produced a whitepaper on Airport Digital Transformation. This document is now available on ACI’s website. • A survey to identify airports to identify case studies has been produced and results will complement the whitepaper.

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Promoting airport excellence: Airport IT

Aviation Community Recommended Information Services (ACRIS) • New ACRIS Recommended Practice has been developed and produced (July 2017) • An ACRIS toolkit will be available in Dec. 2017. This will include: Executive, technical and use case presentations, logo and tag line, promotional pamphlets and generic wording for RFPs inclusion. ACI training materials planned for 2018. • ACI presently working on a list of all worldwide airport projects using ACRIS web services. Available on ACI website by November 2017.

One Community, One Data Exchange Standard

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Promoting airport excellence: IT

Airport IT Security Benchmarking tool 1. Helps airport prevent Cyber-attack 2. Supports IT cybersecurity business plans and related IT internal budget approvals. 3. Prioritizes cybersecurity related IT projects within your organization. 4. Establishes a cybersecurity program based on a recognized international framework for cybersecurity -- ISO 27002. 5. Benchmarks cybersecurity maturity level with other airports. 6. Provides airport the opportunity to be part of a useful network, the ACI Airport Cybersecurity Community. 7. Supplements established cybersecurity programs within the organization. 8. Helps educate airport stakeholders about Cybersecurity.

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Upcoming 2017 ACI World Events

• October 3–4: Air Transport Action Group Summit, Geneva • October 16–18: ACI Africa/World Annual Assembly, Conference & Exhibition, Mauritius • November 1–3: Trinity Forum, Bangkok, Thailand • December 5–7, ACI Europe/Asia Pacific/World Airports Exchange, Muscat, Oman

2018 ACI World Events

• April 9–11: ACI 10th Annual Airport Economics & Finance Conference & Exhibition, London • June 18–20: 28th ACI World Annual General Assembly and 28th ACI Europe General Assembly, Congress and Exhibition, Brussels

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Passenger trends by month: NA vs

10.0 Global Average 9.4 9.0

8.0 7.3 7.6 6.3 7.0 6.5 7.1 6.0 5.7 5.6 6.0 5.0 5.0 5.1 3.8 3.5 5.8 4.0 3.7 3.7 3.7 3.4 3.0 2.3 % from year change previous 2.5 3.1 2.0 2.2 2.8

1.0 0.7 0.0 JUL 2016 AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN 2017 North America Global Average

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2017 ACI-NA Fall Board Report 118 a c i w o r l d ACI World Report

Passenger trends by period – NA vs. World

7.1% 6.6% 6.0%

3.4% 3.3% 3.2%

JUN 2017 YTD JUN 2017 YE JUN 2017 NAM World

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2017 ACI-NA Fall Board Report 119 a c i w o r l d ACI World Report

Passenger growth by region – Year to date June 2017 vs. 2016

10.6% 9.4% 9.0% 8.1% 7.2% 6.6% 6.5%

5.2% 5.1%

3.8% 3.5% 3.3%

1.2%

-0.4% Africa Asia-Pacific Europe Latin America- Middle East North America World Caribbean Jun 2017 year-to-date growth 2016 Annual year-over-year growth

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NA 2016 final passenger volume 120 rankings

100

80

60

) 40

20 (millions

0 Passengers Passengers

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2017 ACI-NA Fall Board Report 121 a c i w o r l d ACI World Report

NA 2016 final rankings by cargo volume 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Cargo (millions, metric tonnes) Cargo

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2017 ACI-NA Fall Board Report 122 b o a r d d i s c u s s i o n Committee Discussion

FACILITATION COMMITTEE

Mission Statement: The ACI-NA Human Resources Committee provides a forum where the aviation community can collaborate on strategic initiatives with a goal of optimizing Human Capital. The Committee’s objective is to be the aviation community’s HR resource.

Peter Gargiulo, Director, Strategy Management, Wayne County Airport Authority: Peter is Director of Strategy Management for the Wayne County Airport Authority, operator of Detroit Metropolitan and Willow Run Airports. In this role, Peter is responsible for developing and maintaining the Authority’s strategic focus on increasing customer satisfaction and operational efficiency. He also works closely with the Authority’s senior management, facilitating the development, implementation, and evaluation of new initiatives to meet the dynamic demands of the stakeholders at one of the world’s busiest passenger airports.

Prior to joining the Airport Authority in 2005, Peter spent more than ten years working inside the diverse operational environments of companies such as GTE, AlliedSignal (now Honeywell), and Ford Motor Company. He holds a Bachelor’s degree in Economics from the University of Michigan, a Master’s in Business Administration from Wayne State University, and is an accredited International Airport Professional (IAP).

Peter currently serves as Vice Chair of the International Air Transport Association’s (IATA) Passenger Facilitation Working Group, collaborating with representatives from airlines, airports, and governments around the globe to improve passengers’ international journeys. He has served on the Board of Directors for the Airport Minority Advisory Council (AMAC) as co-Chair of the Aviation and Professional Development Committee and as an Executive Committee member of the global IAP Community of Practice Board, serving as Chair of the Communications and Programs Committee.

BUSINESS INFORMATION TECHNOLOGY COMMITTEE

Mission Statement: The Business Information Technology (BIT) Committee allows members with airport-related information technology responsibilities, services and products to network, communicate, share data, conduct research and remain current with the latest technological developments. The committee examines new and emerging technologies for their applicability to airport systems, and examines how existing systems can be improved to better serve the internal airport system as well as the needs of our customers.

Committee focus areas include: airport information management systems, cybersecurity, operations automation systems, private and public communication services, computer networking, intranet and internet, system design and application of new technology. Members prepare congressional testimony, respond to regulatory proposals and develop national and international policies for airport operators. The

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Committee is represented on industry and government task forces on communications and information technologies.

Rick Belliotti, Director, Innovation and Small Business Development, San Diego County Regional Airport Authority: Rick Belliotti is an experienced manager and entrepreneur who has worked in organizations of all sizes. His experience extends from software development to business development, to inspirational leadership of staff. Rick is very active in the Aviation industry, supporting and participating in initiatives from International Air Transport Association (IATA), and Airports Council International (ACI). Rick serves on several key management groups and committees, and participated in the creation of standards and policies, as well as conducting research for the industry. He is particularly passionate about opening the aviation industry up to new businesses, providing opportunity for small business participation, and finding innovation to enhance customer experience, revenue, or cost reduction. The key focus of his career is to make the aviation industry better for the passenger by improving how innovation is used to meet their needs, the needs of the industry, and to drive revenue growth through adding value to the experience at airports.

HUMAN RESOURCES COMMITTEE

Mission Statement: The ACI-NA Human Resources Committee provides a forum where the aviation community can collaborate on strategic initiatives with a goal of optimizing Human Capital. The Committee’s objective is to be the aviation community’s HR resource.

Kurt Gering, Director of Talent Culture & Capability, San Diego County Regional Airport Authority: Kurt serves as the Director of Talent Culture & Capability at San Diego International Airport (SAN). With over 15 years of experience in organizational development, he has expertise in workforce planning, performance management, individual development, and succession planning. He holds certification as a Senior Professional in Human Resources (SPHR-CA) and Human Capital Strategist. Prior to joining SAN, Kurt served as Vice President of Organizational Development & Training at GreatCall, Inc., a wireless health and safety services company, and as Director of the Master of Science in Executive Leadership at the University of San Diego.

In the community, Kurt currently serves as Board Chair for Open Discovery Institute, teaches in the University of California San Diego Extension HR Certificate Program, and has been a volunteer with Big Brothers Big Sisters of San Diego County. He enjoys dressage, cooking and going to the cinema. He holds a M.B.A from the University of San Diego and a M.Ed. from the University of Minnesota.

2017 ACI-NA Fall Board Report 124 b o a r d d i s c u s s i o n Sustainability Task Group Report

Background

In February 2017, the Executive Committee approved the ACI-NA Sustainability Policy. The Sustainability Policy identified five near and mid-term actions that ACI-NA would undertake:

• Continue alignment with the aviation industry on the shared target of achieving carbon-neutral growth from 2020, by maintaining existing ACI-NA environmental policy commitments, and promote and enhance programs (such as Airport Carbon Accreditation) that will help airports meet those policy commitments;

• Continue implementation and refinement of sustainable conferencing initiatives;

• Develop and enhance partnerships with organizations within the Aviation sector (such as FAA, Transport Canada, ATAG, A4A, and others) and outside the sector [such as USGBC, Institute for Sustainable Infrastructure (ISI), and the Global Reporting Initiative (GRI)] to enhance the resources available to airports as they seek to achieve their sustainability goals;

• In the near-term, create a cross-discipline sustainability Task Group (inclusive of members from multiple ACI-NA committees), with a mid-term goal of creating a full Sustainability Committee. The Task Group (and subsequently the Committee) will be tasked with developing initiatives and conference programming to address the following key issues:

• Coordinate internally on ACI-NA activities that contribute towards our economic, operational, social and environmental sustainability. • Directly engage with government agencies to advocate for grant and incentive programs that address key airport sustainability priorities; • Develop recommendations for addressing issues of climate resilience at airports and in surrounding communities; • Create a new sustainability benchmarking effort that synthesizes existing ACI-NA data from members on environmental, social, operational, and economic indicators; • Assist ACI-NA to identify relevant reporting elements for a periodic organizational sustainability report.

• Create periodic sustainability progress reports in line with accepted industry frameworks, addressing actions taken by ACI-NA to respond to material issues and to support industry sustainability goals.

2017 ACI-NA Fall Board Report 125 b o a r d d i s c u s s i o n Proposal to Establish ACI-NA Air Service Committee

Following approval by the Executive Committee at the 2017 Winter Board Meeting, the Sustainability Working Group and ACI-NA staff are working to begin implementing these near and mid-term action items.

Current

Efforts have been focused on forming the cross-committee Sustainability Task Group. This group will be focused on: 1) developing a Work Plan; and 2) through the Work Plan determining a recommendation of whether the group continue to work as a cross-committee Task Group, or if a recommendation will be made to the Executive Committee that a Committee structure would be more effective.

Twelve volunteers from six committees (Human Resources, Communications/ Marketing, Environmental, Finance, Ops Tech, and Commercial Management) have stepped forward for this Task Group. A chair (from outside of the Environmental Affairs Committee) needs to be identified. The plan is to convene the Task Group through the fall and provide the ACI-NA Board with a progress report at the Winter Meeting.

2017 ACI-NA Fall Board Report 126 b o a r d d i s c u s s i o n Proposal to Establish ACI-NA Air Service Committee

Background

Since the separation of the Marketing and Communications/Jumpstart Conference in 2015, the Marketing and Communications (MarCom) Steering Group formed an Air Service Core Working Group to guide member activities on issues related to Air Service Development. This group consists of 10-12 members that plan JumpStart and the Data Seminar Conference - with a dotted line of communication to the MarCom Steering Group.

The Air Service Core Working Group does not have a formalized structure like other Committees/ Steering Groups and the process is difficult for new members to become involved in this working group. There is no nomination process, thus preventing the working group to be transparent to the ACI-NA membership. Currently, ACI-NA staff rotates working group members every year to ensure there is a diverse representation and based on member interest.

At this year’s JumpStart® Air Service Development Conference, several members approached ACI-NA staff about formally transforming the Air Service Core Working Group into a full Air Service Committee. ACI-NA staff communicated about the idea with the leadership of the Air Service Core Working Group and the Marketing and Communications Steering Group, all of whom supported the idea.

Creating an Air Service Committee will allow ACI-NA to have a formalized structure for addressing and discussing air service development issues and trends. The committee structure will be transparent to the ACI-NA membership and can enable better participation by the full membership.

Proposal

The Air Service Committee would follow the structure as other ACI-NA Committees.

The committee distribution list will be open to all ACI-NA members and committee members will receive ACI-NA notices related to Air Service and other related committee activities.

There will be an Air Service Steering Group (leadership) - nominated by the Air Service Committee with specific term limits. This will include a diverse range of different sized airports and WBP/associate members.

The Air Service Steering Group will follow a similar structure of the Commercial Management and Business Information Technology Steering Groups. The proposal is to have a MarCom Liaison (who will serve on the Air Service Steering Group) and will participate on the MarCom Steering Group calls. The

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MarCom Steering Group will also work with the Air Service Steering Group to plan educational sessions related to air service at the MarCom Conference.

In addition, the Air Service Steering Group will be able to explore other avenues besides conference planning, such as develop new ideas that can enhance membership value in respect to air service awareness and become a policy/regulatory resource for ACI-NA in air service.

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Industry Update

ACI-NA Board of Directors Meeting

September 16, 2017 Fort Worth, TX

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Economic Indicator Review

The near term (6 – 12 months) economic prospects are generally positive and steady for the North American airlines:

• U.S. and Canadian GDP have remained positive, albeit with steady, marginal growth rates.

• Jet fuel and the crack spread have seen little increase, giving airlines a boost to financial performance from declining expenses.

• Challenges remain from external factors such as concerns about additional terrorist attacks, uncertainty surrounding Brexit, recessions in Russia and Brazil, as well as political unrest

Even though profitability of U.S. airlines might fall in the near term due to rising energy prices and higher labor costs, increasing air travel demand and airfares rising at a slower rate than inflation are likely to result in a profitable aviation industry in the long term. Over the past two years, Canadian airlines benefitted from lower fuel prices and a weaker Canadian dollar. While fuel prices have begun to creep upwards and the Canadian dollar has strengthened, this reversal in trend is not expected to threaten the profitability of the industry as demand will continue to grow.

2

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U.S. & Canadian GDP Annual Growth

U.S.* Canada** 5%

4%

3%

2%

1%

0%

-1% Change from Q2 2016 U.S.: 2.2% -2% Change from Q2 2016 Canada: 3.7% -3%

-4%

-5% 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017 2Q2017

U.S. GDP annual growth increased from 1.2% in 2016Q2 to 2.2% in 2017Q2. The annual growth rate for the 2017Q2 was driven by personal consumption expenditures and exports, but also offset by decreased private residential/inventory investment, and slowed nonresidential fixed investment. Growth in the Canadian economy was mainly due to household final consumption expenditures and exports of goods.

Note: annual growth rate is the change over the same quarter of the previous year *United States real GDP based on 2009 chained dollar value Source: Bureau of Economic Analysis (BEA), 08/30/2017 **Canada real GDP based on 2007 chained dollar value Statistics Canada, 08/30/2017 Trading Economics, 08/30//2017 3

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U.S. & Canadian Unemployment Rate

U.S. Canada 10%

9%

8%

7%

6%

5%

4%

The U.S. unemployment rate fell to 4.3% in July 2017, matching a 16-year low touched in May. Involuntary part time workers saw little change from April 2017. In Canada, the unemployment rate declined to 6.3%, the lowest unemployment rate since October 2008. Employment rose in Ontario and Manitoba, while it declined in Alberta, Newfoundland and Labrador as well as in Prince Edward Island.

4 Source: Trading Economics, 08/28/2017

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Crude and Jet Fuel Prices

Jet Crude Crack Jet Forecast Crude Forecast Crack Forecast 170 160 150 140 130 120 Forecast by EIA as of 110 08/08/17 100 90 80 70 60 50

U.S. Dollars Barrel per Dollars U.S. 40 30 20 10 0

Crude oil prices rose as Saudi Arabia announced a cap on its crude oil exports in August. However, Libya and Nigeria, two other OPEC members, continue to increase crude oil production, a contributing factor in keeping prices near $50 per barrel. There are concerns that global inventories will not be reduced as quickly as expected. 2017 and 2018 are expected to have more supply growth, leading to a lower forecast of crude oil prices in the coming months. Source: EIA, 08/28/2017 5

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U.S. Aviation Traffic January – May 2016 vs. 2017

Jan–May 2016 Jan-May 2017 Change Total Passengers 369.5 million 382.1 million 3.4%

Domestic Passengers 286.8 million 294.5 million 2.7%

International Passengers 82.7 million 87.3 million 5.9%

Flights (thousands) 3,950.2 3,959.3 0.2%

Available Seat Miles 655.7 billion 693.7 billion 5.8%

Avg. Load Factor 80.43 percent 80.69 percent +0.26pts.

Avg. Flight Stage Length* 807.5 miles 815.6 miles 1.0%

In 2017 from January to May, total passenger traffic grew by 3.4% compared to the same period in 2016, with a greater increase in international traffic compared to domestic traffic. Available Seat Miles increased by 5.8% while Flights only increased by 0.2%. This is indicative of the continued upgauging strategy by airlines. Load Factor and Average Flight Stage Length both increased, by 0.26 pts and 1.0% respectively.

*U.S. Air Carriers only 6 Source: BTS T-100 Segment data, 08/28/2017

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Canadian Passenger Traffic

Domestic International + Transborder 14

12 Millions

10

8

6

4

2

0

Based on ACI World estimates from the Big 8 Canada airports*, Canadian traffic grew 7.8% in 2017Q2 compared with 2016Q2. Domestic traffic grew 7.4% while international and transborder traffic grew 8.2%. In the 12 months ending June 2017, domestic traffic increased by 11.6% over the 12 months leading to June 2016. This strong growth signals a recovery in the domestic Canadian market.

* Big 8 Canada airports: YYZ, YVR, YUL, YYC, YEG, YOW, YWG, YHZ Source: ACI World – PaxFlash 7

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Passenger Traffic by ACI Region: YTD June 2016 vs. 2017

10% 9.0%

8.1% 8% 7.2%

6% 5.1%

4% 3.5% 3.3%

2%

0% EUR ASP MEA LAC AFR NAM

Europe was the region with the largest growth in June 2017, followed by Asia Pacific and the Middle East. The growth in Europe was driven by the strengthening of economies in the region as well as continued expansions by long-haul low-cost carriers. Africa has seen a 12-year high in traffic growth, which was largely driven by the Asian, American and European markets.

Source: ACI World – Pax Flash 8

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Freight Traffic by ACI Region: YTD June 2016 vs. 2017

14.0% 12.7%

12.0%

10.1% 10.0% 9.0%

8.0%

6.7% 6.6%

6.0% 4.8%

4.0%

2.0%

0.0% AFR ASP EUR NAM MEA LAC

Global air freight traffic grew 8.4% in the first half of 2017. The half-year performance of 2017 has been the strongest since air cargo’s rebound from the global financial crisis in 2010. Africa and Asia Pacific are leading the growth in freight traffic, which has been boosted by increased trade between Africa and Asia, especially China.

Source: ACI World – Freight Flash 9

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Flight Schedules Review

Flight schedules filed for September 2017 reflect positive growth: • U.S. and Canadian airports are seeing increases in seats while flights remain relatively stable • Major airlines in North America are adding seats however not all are adding flights. • Alaska, JetBlue, Southwest, Spirit and WestJet are adding the most flights. • American, Delta and United are decreasing flights but increasing seats, indicative of continued upgauging of services to larger aircraft. • Strong growth in international flights at Medium, Small and Non-hub U.S. airports • Norwegian Air International is driving most of the growth, utilizing single-aisle aircraft with greater range to fly from Europe to smaller airports in the U.S. • U.S. overseas territories in the Caribbean and Pacific will have more international flights. Flight schedules filed for December 2017 reflect strong growth: • U.S. and Canadian airports will have more flights and seats compared to December 2016 • American, Delta, United, Air Canada and Alaska are adding the most flights. • Chicago O’Hare has the greatest increase in flights as hub carriers United and American aggressively expand to compete for market share. • Seattle is another competitive market, with both hub carriers Delta and Alaska adding the most flights to Seattle. • Stronger growth of international flights at Canadian airports • Air Canada continues expanding from its hubs with additional frequencies and new intercontinental destinations such as Taipei, Melbourne and Mumbai. 10

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North America Capacity: Change in Scheduled Flights and Seats September 2016 vs. September 2017

Flights Seats 7%

6.1% 6%

4.9% 5% 4.6% 4.1% 4%

3.1% 2.9% 3%

2.2% 2%

1% 0.5% 0.5%

0% -0.2%

-1% Large Medium Small Non-Hub Canada

11 Source: Diio Mi, 08/16/2017

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North America Capacity: Change in Scheduled Domestic and International Flights: September 2016 vs. September 2017

Domestic International 19.1% 20%

15.9%

15%

10% 8.3%

5% 3.7% 3.5% 3.0% 1.8%

0.1% 0% -0.3% -0.5%

-5% Large Medium Small Non-Hub Canada

12 Source: Diio Mi, 08/16/2017

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North America Capacity: Change in Scheduled Flights and Seats December 2016 vs. December 2017

Flights Seats 8%

7.1% 7% 6.5% 6.6%

6%

5% 4.8% 4.6%

3.9% 4% 3.7% 3.4% 3.4% 3.0% 3%

2%

1%

0% Large Medium Small Non-Hub Canada

13 Source: Diio Mi, 08/16/2017

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North America Capacity: Change in Scheduled Domestic and International Flights: December 2016 vs. December 2017

Domestic International 7%

6.3%

6% 5.6%

5.0% 5% 4.6%

4.0% 4%

3.1%

3% 2.7% 2.5%

2%

1%

0.1% 0.0% 0% Large Medium Small Non-Hub Canada

14 Source: Diio Mi, 08/16/2017

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World Capacity: Change in Scheduled Flights and Seats Q4 2016 vs. Q4 2017

Flights Seats 9% 8.6%

8% 7.7% 7.3%

7% 6.4%

6% 5.4%

5% 4.5% 4.2% 4.3% 4%

3% 2.3% 2.2% 2%

1% 0.6% 0.2% 0% MEA ASP LAC AFR NAM EUR

15 Source: Diio Mi, 08/31/2017

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Top 40 Airports Ranked by Seat Capacity Change Q4 2016 vs. Q4 2017

Rank Airport YOY Region Rank Airport YOY Region Rank Airport YOY Region

1 BCN 13.1% EUR 15 TPE 5.5% ASP 29 LHR 2.6% EUR

2 DEL 10.3% ASP 16 TPE 5.5% ASP 30 LAX 2.5% NAM

3 CGK 10.0% ASP 17 LGW 5.3% EUR 31 PVG 2.5% ASP

4 FRA 9.4% EUR 18 MAD 5.2% EUR 32 PEK 1.8% ASP

5 SIN 8.9% ASP 19 HKG 4.6% ASP 33 CTU 1.1% ASP

6 KUL 7.9% ASP 20 CDG 4.6% EUR 34 HND 0.7% ASP

7 AMS 7.8% EUR 21 YYZ 4.0% NAM 35 ATL 0.3% NAM

8 IST 7.4% EUR 22 CAN 3.9% ASP 36 LAS 0.1% NAM

9 SFO 7.3% NAM 23 MIA 3.4% NAM 37 DEN 0.1% NAM

10 MUC 6.2% EUR 24 DFW 3.4% NAM 38 KMG (0.6%) ASP 11 ICN 6.1% ASP 25 SYD 3.4% ASP 39 PHX (1.0%) NAM 12 BKK 6.0% ASP 26 ORD 3.4% NAM 40 DXB (1.3%) MEA 13 SZX 5.7% ASP 27 JFK 3.2% NAM

14 SEA 5.5% NAM 28 CLT 3.0% NAM

Source: Diio Mi, 08/31/2017 16 Top 40 Airports from ACI 2016 World Air Traffic Report

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Average U.S. Airfare and Percent Change Year over Year

Avg. U.S. Dom Fare % Change YoY $450 20%

$400 15%

$350 10%

$300 5%

$250 0%

$200 -5%

$150 -10%

$100 -15%

$50 -20%

$0 -25% 1Q2007 2Q2007 3Q2007 4Q2007 1Q2008 2Q2008 3Q2008 4Q2008 1Q2009 2Q2009 3Q2009 4Q2009 1Q2010 2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013 3Q2013 4Q2013 1Q2014 2Q2014 3Q2014 4Q2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 2Q2016 3Q2016 4Q2016 1Q2017

Fares for the first quarter of 2017 decreased 2.6% year over year with the average domestic fare decreasing to $352. Airline revenue from ticket sales decreased to 73.7% for the first quarter of 2017, compared to 87.6% in 1995. The decrease is due to airlines unbundling services that were previously included in the airfare. Conversely, there has been an increase in ancillary revenue.

Note: Unadjusted for inflation 17 Source: BTS, 08/28/2017

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Average Canadian Domestic Airfares (10 Major Cities)

4th quarter 2015 (CAD) 4th quarter 2016 (CAD) Change Calgary 165.80 156.70 -5.5% Edmonton* N/A N/A N/A

Halifax 164.50 151.90 -7.7%

Montréal 172.70 158.50 -8.2%

Ottawa 161.60 150.50 -6.9%

Regina 164.60 162.10 -1.5%

Saskatoon 151.50 147.50 -2.6%

Toronto 200.70 189.50 -5.6%

Vancouver 164.50 183.50 -5.9%

Winnipeg 195.00 178.20 -3.2%

Canada 174.40 163.80 -6.1%

* Data for Edmonton suppressed to meet the confidentiality requirements of the Statistics Act 18 Source: Statistics Canada, 08/29/2017

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U.S. Airline Ancillary Revenue 2007- 2017 (Q1)

Reservation Change Fees Miscellaneous Operating Revenues* Baggage Fee $3.5 +11.7% +3.3% $3.0 +4.5% +8.2% Millions $1.03 +13.4% -0.9% $0.98 $2.5 $0.87 +14.4% $0.79 +6.6% $0.80 $0.80 $2.0 +58.9% $0.78 $0.77 $1.5 $0.59 $1.51 $1.59 +63.9% $1.26 $1.27 $0.12 $1.16 $1.08 $1.0 $0.90 $0.68 $0.67 $0.10 $0.68 $0.5 $0.41 $0.76 $0.74 $0.59 $0.55 $0.60 $0.62 $0.69 $0.73 $0.72 $0.21 $0.38 $0.0 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012 Q1 2013 Q1 2014 Q1 2015 Q1 2016 Q1 2017 Note: * Includes fees paid to carriers for collection of PFC fee, transportation of pets/animals, frequent flyer related programs, WiFi, food and beverages, and others Overall, ancillary revenue increased 3.3% in Q1 2017 from the same period last year. Reservation Change Fees decreased while Miscellaneous Operating Revenues and Baggage Fees increased year-over-year. Over the past decade, Baggage Fees have increased more than tenfold as airlines began charging for checked bags on domestic flights in 2008.

19 Source: BTS, 08/30/2017

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North American Airlines Finances – Net Profit/Loss Q2 2016 vs. Q2 2017

Carrier Q2 2016 Q2 2017 $260 million $296 million

$60.8 million $48.5 million

$950 million $803 million

$1546 million $1224 million

$79.6 million $80.4 million

$181 million $211 million

$820 million $746 million

$73 million $78 million

$588 million $818 million

CAD 186 million CAD 300 million

CAD 36.7 million CAD 48.4 million

Most major airlines in North America recorded increased profits in 2017Q2. American Airlines saw decreased profits because of the rising fuel costs and employee benefit costs which contributed to an 11% increase in its operating expenses. For Canada, both Air Canada and WestJet had improved profits In 2017Q2. Air Canada delivered an excellent unit cost performance, and a huge increase in net cash flows. At the same time, WestJet experienced increased domestic travel and more demand for transborder and international travels. 20 Source: Airlines’ Quarterly Results Releases

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Special thanks to Diio Mi, BEA, DOT, Statistics Canada, FAA, and BTS for their contributions to this presentation.

For comments or questions, please contact:

Liying Gu or Ashley Sng ACI-NA (202) 293-8500

[email protected] [email protected]

2017 ACI-NA Fall Board Report 149 c o m m i t t e e r e p o r t Air Cargo

Leadership

Chair: Andy Lyall Halifax, NS Vice Chair: Bryan Schreiber Columbus, OH Associate Representative: Douglas Bañez Hubpoint Immediate Past Chair: John Parrott Anchorage, AK Emeritus Member: Dan Muscatello Landrum & Brown Committee Secretary: Ashley Sng ACI-NA Board Liaison: Tom Ruth Edmonton

Mission Statement

The Air Cargo Committee is committed to advancing the industry's understanding and knowledge of air cargo economics and practices. Its focus is to assist airport operators in the management of existing air cargo resources, maximization of potential air cargo opportunities and the enhancement of air cargo revenues, in addition to providing a forum to discuss cargo-related security issues and develop concerns in the air cargo industry.

Accomplishments Since the Last Report

Air Cargo Committee Meeting Planning

For the Air Cargo Committee Meeting at the ACI-NA Annual Conference, the Steering Group has decided to have three primary areas of focus; the first will address the regional air cargo community in Texas; the second will address current and future working group projects; the third will address air cargo industry issues. The Committee leadership has been working closely with Milton De La Paz from DFW to identify and invite speakers. In addition to DFW, we will have representatives from American Airlines Cargo and AirLogistix to provide their perspectives and experiences on driving air cargo business in Texas. In a break with tradition, the leadership has moved the Air Cargo Committee Meeting to the morning to minimize conflicts with other concurrent meetings to allow for greater participation from attending airports. The session “Driving Air Cargo Business in Texas” will begin with presentations from each speaker, followed by an interactive Q&A and discussion. After the morning break and Working Group updates, the next session will establish an agenda of new projects for the Committee in 2018 and then put together teams and timetables to address them. This restructuring of the agenda will allow the afternoon discussion to cover, in roundtable format, key emerging air cargo industry issues.

2017 ACI-NA Fall Board Report 150 c o m m i t t e e r e p o r t Air Cargo

Media Collaboration Group

A key objective of the Committee has been to broaden the understanding of the ongoing challenges that confront airports of every size in dealing with the evolving aspects of the air cargo industry. As an element of this effort, the Air Cargo Committee entered into an agreement to work with Geoffrey Arend, the editor of Flying Typers, to put together a structured way of communicating airport perspectives. Five very well-received airport articles were published in the initial effort in 2016 and the Committee aims to produce a second round this year. Since the start of 2017, Flying Typers has published a follow-up article from Atlanta (“Atlanta EZ TruckPass Standard of the World”) and a new article from Halifax (“Halifax Air Gateway Drives Growth”).

Engaging Next Generation of Air Cargo Professionals – Cross Committee Collaboration

• Bryan Schreiber will have a draft presentation focused on the benefits of outreach with for the group to review in Fort Worth. • After review and input the presentation will be distributed to Committee members and member airports to use. • The plan is to invite college students to the 2018 Air Cargo Conference in Austin from colleges in the area. • The next step is to assemble a database of educational institution contacts with the help of the members, followed by an outreach plan.

Air Cargo Data Working Group

The Air Cargo Data Working group is assembling summaries of its findings to date. The Working Group also plans to produce a glossary of air cargo data terms - including sources and explanations of commonly used terms.

2018 Air Cargo Conference Planning

ACI-NA continues its partnership with the Airforwarders Association (AfA), the Air and Expedited Motor Carrier Associations (AEMCA), and the Express Delivery & Logistics Association (XLA) in organizing the 2018 Air Cargo Conference in Austin, TX on February 18-20. The Planning Committee held its first kickoff meeting for the 2018 event on August 7. Session topics are under consideration and will be finalized over the next several months to ensure the most current and relevant focus for our membership. More details will be discussed during monthly planning calls over the rest of the year but we have a clear goal of expanding airport focused sessions for Austin. We will also be evaluating our continuing partnership as we move forward.

Upcoming Actions and Events

Air Cargo Committee Meeting

The Air Cargo Committee will hold a pre-conference meeting on Sunday September 17th during the 2017 ACI-NA Annual Conference and Exhibition in Fort Worth, TX.

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2018 Air Cargo Conference

The 2018 Air Cargo Conference will be held on February 18-20 in Austin, TX, in partnership with AfA, AEMCA and XLA.

Media Collaboration Group

Articles that have been published will be made available to the Air Cargo Committee as well as new articles as they are written.

Potential Concerns and Issues

None at this time.

Board Requested Activities

None at this time.

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Leadership

Chair: Shannetta Griffin Columbus, OH Vice Chair: Angela Martin Baltimore, MD Immediate Past Chair: Michael Baldwin Dallas/Ft. Worth, TX Board Liaison: Monica Lombraña El Paso, TX Committee Secretary: Debby McElroy ACI-NA

Mission Statement

The Business Diversity Committee (BDC) is committed to developing proactive outreach and educational programs that provide a forum to discuss diversity issues and promoting best practices. The Committee monitors changes in legislation, regulatory requirements, and business practices affecting disadvantaged business enterprises (“DBE”), airport concessions disadvantaged business enterprises (“ACDBE”) and female, minority and small (F/M/S) businesses at airports. It contributes to ACI-NA policy recommendations on DBE/ACDBE/F/M/S business issues, as well as, promotes successful airport DBE/ACDBE/F/M/S/ business programs. The BDC is further committed to demonstrating that diversity is a good business practice in that it promotes supplier competition and helps develop an airport business environment and workforce that is reflective of the community in which it operates.

Accomplishments Since the Last Report

Promote The Benefits Of Inclusion To All ACI-NA Committees

The Committee continues to identify opportunities to work in partnership with other ACI-NA Committees to promote the benefit of diversity and inclusion for the airport industry. Successful collaborations in 2017 include the Commercial Management Committee, Human Resources Committee and Operations and Technical Affairs Committee.

Continued Monitoring of FAA and DOT Guidance and Reports

The Business Diversity Committee continues to discuss issues of concern with FAA and DOT, including the definition of an airport concession and car rental goal setting.

• In December 2016, the Committee sent a letter to DOT and FAA confirming that the term “concessions” in 49 CFR Part 23 refers only to businesses that serve the traveling public. We

2017 ACI-NA Fall Board Report 153 c o m m i t t e e r e p o r t Business Diversity

understand that FAA is in agreement with the ACI-NA position and the Office of the Chief Counsel is now drafting public guidance.

• A Task Force was formed in May 2017 to address continuing challenges with setting goals for car rentals as well as the difficult with obtaining consistent, timely information from car rental companies on their DBE contracting. Work is underway for a standardized form that would be provided to airports to assist in gathering this data. The Task Force is also working with FAA to schedule a webinar to provide additional guidance on developing and reporting on car rental goals.

Development of Inclusion and Diversity White Paper

Under the leadership of Chair Shannetta Griffin, the Committee continues the development of a White Paper discussing the need for adequate airport funding as well as the benefits of inclusion in airport contracting.

Continue To Promote And Administer The “ACI-NA Inclusion Champions” Awards

Nominations for the 2018 Inclusion Champions Awards will be opened in January; the awards will be presented at the 2018 Business of Airports Conference on June 13 in Portland, Oregon.

Develop ACRP Problem Statement On the Benefits & Costs of the DBE &ACDBE Program

In August, ACI-NA was informed that the problem statement developed in partnership with members of the ACI-NA Finance Committee on the benefits and the costs of the FAA/DOT DBE and ACDBE programs received funding for 2018. The proposal was slightly changed to add elements of another DBE problem statement submission, but the Committee’s specific research objective – “develop a guidebook to help airport practitioners identify and quantify benefits, costs and the economic impact of business diversity programs” - was retained. Committee members will be encouraged to submit nominations to serve on the project panel.

Provide Additional Educational Opportunities

The Committee is working with FAA to develop pertinent webinars to assist airport and associate members on regulatory and compliance issues.

Maintain Active Discourse with Government and Regulatory Agencies and Associated Airport Advocacy Organizations

The Committee continues to work with FAA and DOT officials, as well as representatives from the Airport Minority Advisory Council, on issues impacting inclusion and diversity in all areas of airport operations. Many Committee members also work with the Conference of Minority Transportation Officials (COMTO) and AAAE.

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Conference Plans

The Committee will develop a “business diversity track” of sessions for the 2018 Business of Airports Conference.

Election of 2018 Steering Group

The Committee participation plan allows a Steering Group consisting of up to 22 members. The Chair and Vice Chair serve for two-year terms. In October 2017 nominations for two small airport member positions (three-year terms) and the Vice Chair position will be solicited for the 2018 Steering Group. The election will be held in November.

Upcoming Events

The Business Diversity Committee will meet during the 2017 ACI-NA Annual Conference on September 17 in Ft. Worth, Texas and during the ACI-NA Business of Airports Conference on June 11, 2018 in Portland, Oregon.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Rick Belliotti San Diego, CA Vice Chair: Ian Law San Francisco, CA Immediate Past Chair: Dave Wilson Seattle, WA Board Liaison: Kelly Fredericks Committee Secretary: Aneil Patel ACI-NA

Mission Statement

The Business Information Technology (BIT) Committee allows members with airport-related information technology responsibilities, services and products to network, communicate, share data, conduct research and remain current with the latest technological developments. The committee examines new and emerging technologies for their applicability to airport systems, and examines how existing systems can be improved to better serve the internal airport system as well as the needs of our customers.

Committee focus areas include: airport information management systems, cybersecurity, operations automation systems, private and public communication services, computer networking, intranet and internet, system design and application of new technology. Members prepare congressional testimony, respond to regulatory proposals and develop national and international policies for airport operators. The Committee is represented on industry and government task forces on communications and information technologies.

Accomplishments Since the Last Report

• The Business Information Technology Committee drafted a guidance paper for airports regarding IATA Resolution 753 that requires all IATA members maintain an accurate inventory of baggage by monitoring the acquisition and delivery of baggage by 2018.

• Steering Group members and staff reviewed an Airport Digital Transformation white paper and survey developed by ACI World. The document gave a variety of resources and implementation steps for airports to embrace digital transformation. Digital transformation is about business transformation in a digital world. It is both the implementation of new technologies, as well as the integration of existing technologies, processes and services to deliver an improved experience to stakeholders. Digital transformation provides a seamless flow through the airport,

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achieved through the integration of systems and services, including partners such as airlines, security, customs, and concessions.

Upcoming Actions and Events

• The BIT Committee will be holding a two-day pre-conference workshop, September 16-17, prior to the 2017 ACI-NA Annual Conference & Exhibition in Fort Worth, TX.

• Staff will participate in the upcoming ACI World and IATA meetings/webinars. Topics for discussion will focus on Airport Technology, Fast Travel (future of passenger travel), Common Use, and Biometrics.

• Steering Group members and staff will create a Future of Common Use Working Group. The working group will include airports, airlines, strategic partners, and Airlines for America. The goal is to provide stakeholders with flexibility in a common use environment. During three face-to-face meetings over the past 18 months the group has created a set of peripherals that would consist of a minimum set of business requirements and developed six overarching focus areas:

• Consistency • Remote Troubleshooting and Diagnostics • Flexibility and Innovation • Branding • Upgrade Ability • Communication

• The next step is to expand on the focus areas with input from all stakeholders and develop a guidance paper for the industry.

Potential Concerns and Issues

• Staff will continue to liaise with the ACI-NA Facilitation Committee on topics pertaining to technology of arriving and departing international passengers.

• Staff continues to monitor government regulation on cybersecurity.

• Staff continues to monitor the impact on airports of IATA Resolution 753.

Board Requested Activities

None at this time.

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Leadership

Chair: David Kellerman Cincinnati, OH Vice Chair: Amy Snyder Boise, ID Second Vice Chair Eric L. Johnson Minneapolis, MN Immediate Past Chair: Randy W. Goodman Houston, TX Associate Representative: Joe Waller Pacific Gateway Concessions Board Liaison: Brian D. Ryks Minneapolis, MN Committee Secretary: Qinya Pang ACI-NA

Mission Statement

The Commercial Management Committee serves as a forum to share ideas and exchange information among fellow airport concessions and commercial properties professionals, as well as to identify the best commercial practices at airports. The committee focuses on landside management issues such as ground transportation, parking and car rentals. It also concentrates on issues relating to concessions and commercialization; as well as tracking trends and best practices. Annually, the committee completes a work plan of projects that will benefit the airport industry as it relates to concessions and commercial properties matters. In addition, the group assists ACI-NA with the coordination of the annual ACI-NA Excellence in Airport Concessions Awards. Finally, it provides the ACI-NA Board and other council committees with input regarding concession and commercial property issues, and assists in coordination of selected initiatives.

Accomplishments Since the Last Report

Concessions Benchmarking Working Group

• The working group improved the Annual Concessions Benchmarking Survey to collect important airport concession data with the goal to build a more comprehensive database of key industry measures.

• The survey was disseminated to the membership in June. It consisted of three parts: (1) general information on an airport’s concession program; (2) information on the food and beverage program; and (3) information on duty free, news/gift and specialty retail program.

• Once the survey is completed, airports will be able to do trend analysis with six years of data. The survey results are expected to be completed by November and will be presented

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via a webinar to the entire Commercial Management Committee. The 2017 Concessions Benchmarking interactive database will also be launched in November.

Upcoming Actions and Events

• The Commercial Management Committee Steering Group will meet during the 2017 ACI-NA Annual Conference & Exhibition in Fort Worth, TX.

• Staff recently established a cross committee TNC Operations and Related Airport Revenues Working Group with members from the Commercial Management, Finance, Legal Affairs, Operations & Technical Affairs, and Small Airports Committees. The working group will address new and evolving issues with TNCs and the potential deployment of autonomous vehicles. The initial objectives of the working group will include:

• Frequent conference calls to provide a forum for members to share information; • Updating the ACI-NA Resource Center with new TNC agreements; • Creating a discussion forum (Listserv) specifically for TNC/ground transportation related topics; and • Providing webinars and educational forums for the Working Group to share information with ACI-NA member airports.

• Steering Group members will work on the 2018 Airport Concessions Awards by refining the submission criteria, and developing a comprehensive marketing plan.

• Staff is planning for the 2018 ACI-NA Business of Airports Conference. The Conference will be held on June 11-13, 2018 in Portland, OR at the Marriott Downtown Waterfront.

Potential Concerns and Issues

None at this time.

Board Requested Activities

None at this time.

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Leadership

Full Committee Chair: Rob Hough Edmonton, AB U.S. Chair: Kevin Gurchak Pittsburgh, PA U.S. Vice Chair: Ellen Lindblad Ft. Myers, FL Canadian Chair: Tara Hull Winnipeg, MB Canadian Vice Chair: Derek Gray Toronto, ON Immediate Past Chair: Bryan Wagoner Detroit, MI Board Liaison: Rob Wigington Nashville, TN Committee Secretary: Melinda Pagliarello ACI-NA ACI-NA Canadian Staff: Josee Curry ACI-NA

Mission Statement

The ACI-NA Environmental Affairs Committee is responsible for developing ACI-NA policy proposals on noise, air quality, water quality, regulated materials, wildlife, and national environmental protection. It provides a forum for the exchange of practices and experiences among senior environmental specialists at airports and the companies that serve them. Committee members work with federal regulators, aviation industry groups, and international policy makers to develop statutory and regulatory proposals governing the environment affecting airports. The Committee provides information and guidance for airport operators in the development of all aspects of environmental management programs. The Committee is represented at the National Academy of Science Transportation Research Board, the International Civil Aviation Organization, the FAA R&D Advisory Committee, the FAA Environmental Center of Excellence and other industry and other government sponsored organizations with a focus on the environment.

Accomplishments Since Last Report

Air Quality

Volkswagen Settlement

ACI-NA staff continued to monitor the progress of this program, coordinate with other stakeholders groups including the FAA, A4A, and NASAO, and share information with members. Additional individual states have made available fund administration plans, but as the trustee is still not in place, there has been little other activity.

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Airport Carbon Accreditation

Air Quality chair, Kris Russell, DFW, along with Derek Gray, YYZ, continued to provide support to airports as they pursue ACA certification, particularly as airports need help navigating challenges dues to differences between the North American and European systems, as well as differences between ACA and other recognized sustainability reporting programs, such as Global Reporting Initiative (GRI) and Carbon Disclosure Program (CDP).

ACI-NA staff is actively engaging with ACI Europe and the ACA Administrator, WSP, in order to manage and improve the program in a way that is beneficial to airport members. As of Aug 29, there were 24 active ACA accredited airports.

Air Quality Newsletter

The Air Quality WG leadership has undertaken an effort to develop a newsletter. The first publication is expected around the time of the Annual Conference.

Water Quality

Industry Voluntary Deicing Pollution Reduction Program

The Committee continues to work with Program partners to implement the Voluntary Pollution Reduction Program. ACI-NA and our program partners have completed the data collection, which showed that together airports and airlines achieved the goal of a 20% improvement in the BOD Management Capacity Index value from 2005 – 2017. A draft of the Phase II Report has been prepared and is under review with the Program Partners and participating airports. The program is on target to conclude in late 2017.

Waters of the US

The Water Quality working group is coordinating ACI-NA’s response to the EPA and U.S. Army Corps proposed rule “Definition of ‘Waters of the United States’ – Recodification of Pre-Existing Rules. The first step of the process reverts to the pre-2015 definition of Waters of the United States. ACI-NA plans to submit comments supporting this action and referencing our comments from 2014 that raised concerns about the 2015 definition. The second phase of the process will work to again clarify the definition – the majority of ACI-NA’s activity on this item will be during the second phase.

AFFF/PFAS

The Water Quality Working Group is overseeing a session during the Environmental Workshop at the Annual conference with topics including Aqueous Film Forming Foam (AFFF) used in fire-fighting sources, risk identification and reduction, and remediation challenges and strategies for land that has been exposed AFFF contamination of the perfluorochemicals, PFAS and PFOA.

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NEPA

NEPA Developments

The NEPA Working group and ACI-NA staff continue to monitor developments with the CEQ guidance on climate change being rescinded, agency reviews of the Obama administration regulations, and legislative moves to scale back NEPA. Also being monitored is the FAA review of possibly reducing the level of NEPA review on non-aeronautical land use. ACI-NA staff is tracking this (ACI-NA lead on non- aeronautical land use NEPA review is Legal Affairs).

NEPA & Planning Workshop

The NEPA WG has assisted in developing the agenda for the workshop, to be held Nov 29-Dec 1, 2017 in Arlington, VA, and is currently working on identifying session leads and speakers.

Noise

FAA Noise Research

Work on FAA’s noise annoyance study continues and is in the review and summary phase. This study will update the science surrounding the relationship between aviation noise and annoyance, and will look at the metric used to measure noise (Day-Night Average, or DNL).

After the survey results are analyzed, the FAA still plans to release the data in 2017. FAA staff has told ACI-NA that they are not providing advance information to any organizations (including Congress). The Federal Register publication will be the first that any of the interested groups will receive information on the results of the survey results. The Noise Working Group will develop an approach for reacting to and sharing those results.

Policy work, such as determining if the current noise threshold for significant aviation noise impacts (i.e. DNL 65 dB) should be changed is planned to be undertaken in 2018. ACI-NA staff and the working group members will continue to follow this issue, and are coordinating with FAA to have a representative present at the Noise Conference in October to discuss the survey results to the extent possible. As appropriate we will also update the noise policy white paper, which was shared with FAA in 2016.

Sound Insulation Funding

The FAA’s guidance and decisions on funding for sound insulation programs has been shifting in the last few years. The Noise WG has identified a need to address the changes and convey the impacts to the Office of Airports. Following the Noise Conference, the WG will review the appropriate approach for undertaking preparation of a white paper, with the intention of sharing it with FAA.

City of Phoenix Lawsuit vs FAA PBN Paths

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On Aug 29th, the US District Court of Appeals released its decision finding in favor of the City of Phoenix. The Noise WG will follow the implications both in this case specifically for Phoenix, as well as the broader implications for airports. Discussions are anticipated at the Annual Conference, the Noise Conference, and potentially during a Noise Working Group call.

ACI-NA/ AAAE Noise Conference

The Noise WG is working with the planning committee for the Noise Conference that will be held in Savannah, October 11-13, 2017. The agenda and speakers are set. As of Aug 29, there are approximately 80 people registered (130 was the final registration last year).

Community Engagement

ACI-NA staff, in response to FAA’s request, provided comments on draft information sheets related to: 1) Community Roundtables; and 2) Roundtables compared to Part 150 efforts.

Land Use

Reduced Regulations

Per the Administration’s direction to reduce regulations, the FAA is reviewing guidance and requirements related to NEPA review requirements for non-aeronautical use on airport property. The Land Use Working Group is working with the NEPA Working Group in tracking this.

Waste Management

Signage Standardization

The Waste Management Working Group continues to work on an effort to review the various signage used for waste and recycling collection across North American airports, and possibly propose a method for standardization.

Sustainability

ACI-NA Sustainability Policy Statement

Following approval by the Executive Committee at the 2017 Winter Board Meeting, the Sustainability Working Group and ACI-NA staff are working to begin implementing the near and mid-term action items identified in the Sustainability Policy Statement, in order to continue supporting members’ efforts to advance sustainability across the airport industry in our region. Work is continuing on forming a cross-committee Sustainability Task Group. This group will be focused on: 1) developing a Work Plan; and 2) through the Work Plan development determining a recommendation of whether the group continue to work as a Task Group, or if a recommendation will be made to the Executive Committee that a Committee structure would be more effective. Twelve volunteers have stepped forward for this Task

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Group. A chair (from outside of the Environmental Affairs Committee) needs to be identified.

Sustainability Research and Newsletter

The Sustainability Working Group held a follow-up educational webinar for members in June with the Institute for Sustainable Infrastructure on their sustainable infrastructure rating system, Envision. Over 80 people dialed into the call, which featured Envision projects at Detroit, Nashville, and San Diego airports.

The Sustainability Working Group continues to liaise with the U.S. Green Building Council (USGBC), and is considering working with them for other opportunities to develop alternative compliance pathways (ACP) for airports in the coming year. The Sustainability WG is also beginning a conversation with the Carbon Disclosure Project (CDP). The CDP is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Some member airports are currently working with CDP, and are interested in how to align the greenhouse gas (GHG) emissions reports prepared for CDP with the GHG inventories required under the Airport Carbon Accreditation.

The latest airport initiatives and sustainability projects continue to be reflected in the ACI-NA Sustainability Newsletter, which is published 3-4 times per year. The last edition was published during Airports@Work, and the next edition is scheduled to be issued prior to the Annual Conference.

Sustainable Conference Guidelines

ACI-NA staff and members of the Committee continue to work with the conference and marketing teams to implement the Guidelines, with an ultimate goal of producing a sustainability report for future Annual Conferences. Work is underway to identify and establish benchmarking categories to be used in future reporting.

Carbon Offset Sponsorship

The Carbon Offset Sponsorship developed as part of the Sustainable Conference Guidelines has been expanded to cover Airports@Work, and will be offered for the 2017 Annual Conference & Exhibition as well. C&S sponsored the Carbon Offset for the 2017 Annual Conference, offsetting the entire conference attendee’s travel through purchases of TX Wind Power via the Good Traveler program.

Sustainable Aviation Guidance Alliance Task Force

The Committee continues to monitor progress of the transfer of the SAGA Database from ACRP and the ACI-NA server to its new permanent home with Dallas-Ft. Worth International Airport.

Committee Engagement

The Committee’s commitment to increasing young professional (YP) and new member participation continues with the election of several new members to the steering group this past fall. In addition,

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the committee continues to post all committee calls and meetings on the public committee calendar to encourage participation; solicitation of content for the Sustainability and Air Quality newsletters; encouragement of members to apply for open positions on the steering group and participate on the working groups.

Environmental Awards Acheivement Awards

The nomination period for 2018 awards will be open in October 2017.

Canadian Caucus Highlights

Activities of the Canadian Caucus of the Environmental Affairs Committee are included in the Canadian Airports Council section of the Board Report.

ACI World

ACI-NA staff continues to coordinate activities with the ACI World Environment Standing Committee (WESC); including joining their monthly conference calls and annual meetings. Due to scheduling conflicts with the Noise Conference, ACI-NA staff will not be able to attend the next meeting of the WESC in Mauritius in October 2017. However, ACI-NA members and staff are helping to plan the meeting agenda. WESC action items include briefing notes / memos on topics such as noise curfews, climate adaptation, greenhouse gas emissions inventories, and the emerging water quality issues associated with a certain class of chemical compounds (PFOS/PFOA) found in fire-fighting foam (AFFF). ACI-NA staff and members continue to work with ACI World on a number of CAEP/11 working groups.

ICAO Committee on Aviation and Environmental Protection (CAEP)

The Carbon Offset Reduction Scheme from International Aviation (CORSIA) – FAA continues to work on the technical elements of the framework of a Global Market-Based Measure to reduce carbon emissions from international aviation. The CAEP Steering Group will be focusing on the technical elements of CORSIA during the Sept 11-15 meetings. U.S. involvement remains unclear, however any airlines that fly to Europe will be subject to CORSIA. ACI-NA staff is working with both the FAA and ACI World on briefings, so that airport managers can understand what the airlines are working with. ACI-NA and our industry partners (IATA, A4A, manufacturers) have been supportive of both CORSIA and the CO2 emissions standards for aircraft engines.

ACI-NA staff and several members participate on several ICAO CAEP Working Groups (WG2 – Operations and WG-3 Emissions) on issues including aircraft noise and PBN, emissions (particulate matter and NOx), climate adaptation, “Eco-Airport Toolkits”, and community engagement and updating environmental guidance documents. ACI-NA staff participated in person at the CAEP WG2 meetings in Stockholm, in June 2017, contributing particularly to work on: PBN and community engagement; operational changes in the airport vicinity to reduce noise impacts; eco-Airport toolkit; and synthesis of airport approaches to climate adaptation.

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Upcoming Actions and Events

Airport Carbon Accreditation Program

• 24 airports in the U.S. and Canada have thus far achieved accreditation, including the first at Level 3+ Carbon Neutrality (DFW), and three at Level 3 – Optimization. • The ACA pilot program for multi-site certification for airport owners/operators with multiple facilities is continuing. • ACI-NA staff and members participate on the Airport Carbon Accreditation Advisory Board and Task Force. Staff and members will be working with participating airports to address ways that ACA can better align with other programs, such as Envision and CDP. • ACI-NA staff is actively engaging with ACI Europe and the ACA Administrator, WSP, in order to manage and improve the program administration in a way that is beneficial to airport members.

2017 Environmental Conferences (remaining)

• Environmental Affairs Committee Workshop in conjunction with the ACI-NA Annual Conference & Exhibition in Fort Worth, TX, September 16-17th, 2017. • ACI-NA / AAAE Airport Noise Conference in Savannah, GA from October 17-19th, 2017. This will build on the successful first joint noise conference hosted by both organizations last year. • ACI-NA/ ACC Airport Planning and NEPA Workshop in Washington, D.C. in December 2017.

2018 Environmental Conferences

• Airports@Work, New Orleans, LA March 12-15, 2018. • Environmental Affairs Committee Workshop in conjunction with the ACI-NA Annual Conference & Exhibition in Nashville, TN September 29-30th, 2018. • ACI-NA / AAAE Airport Noise Conference TBD.

Potential Concerns and Issues

Noise

The Committee continues to track the FAA’s Noise Research Roadmap very closely, and plans to be very engaged in policy discussions once the research on the noise annoyance study is complete. FAA Office of Environment and Energy reports that work is on track to complete the study and analysis by fall 2017. We have heard that the results for the individual airports will be released in November or December. The fact that the results will be published in the Federal Register without any advance coordination will require that we be more reactive than we would otherwise like. The Noise WG will develop in advance as completely as possible an approach for response.

FAA continues to plan to engage in the related policy work in 2018. The impact of the current

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Administration and the change in FAA administrator (expected January 2018) on this process remains unknown. ACI-NA staff has concerns that pressure from Members of Congress and community groups may affect the agency’s decision making process – either resulting in limited stakeholder opportunity for input or pressure to lower the noise threshold regardless of research results. This will remain a top area of interest and concern for the Committee for the remainder of the year.

Community and Stakeholder Engagement

FAA has made important progress in improving community involvement, communication and engagement over the past year with the publication of the Community Involvement Manual (AEE), the Community Involvement Plan (ATO) and the Community Involvement draft Advisory Circular (Office of Airports). FAA is also working to implement suggestions from the NextGen Advisory Committee’s PBN Blueprint task group. However, we are hearing from members, particularly in Florida, that more work is needed to ensure implementation of changes at the regional and local levels. ACI-NA members and staff will remain engaged with the NAC and FAA staff to track progress and educate members. Waters of the U.S.

The second step of the planned process, which will work to again clarify the definition, may become a significant effort. We have good consulting support in place with Barnes & Thornburg, and will monitor the requirements.

Board Requested Activities

None at this time.

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Leadership

Chair: Dan Foster Minneapolis, MN Vice Chair: Charles Goedken Seattle, WA Immediate Past Chair: Saba Abashawl Houston, TX Board Liaison: Mario Diaz Houston, TX Committee Secretary: Matt Cornelius ACI-NA

Mission Statement

The Facilitation Committee addresses issues related to the facilitation of international travel and trade including the improvement of government and industry approaches. Members of the Committee focus on travel documentation and other requirements, international cargo and passenger inspections, programs, regulations, and fees, inspection facilities, technology, customer service and the interrelationship between facilitation and security. The Committee develops and advocates legislative and regulatory positions on these issues. The Committee interacts with government organizations including U.S. Customs and Border Protection (CBP), Department of Homeland Security Science & Technology Directorate (DHS S&T), State Department’s Bureau of Consular Affairs, and Centers for Disease Control and Prevention. Staff and some committee members serve on the CBP User Fee Advisory Committee and on delegations to ICAO.

Accomplishments since Last Report

ACI-NA CEO meets with Acting CBP Commissioner to discuss Airport Technical Design Standards (ATDS) Concerns

In response to a letter ACI-NA President and CEO Kevin Burke sent Acting Commissioner McAleenan in April, the two met with their senior staffs to address airport concerns with the ATDS. These concerns included the document’s prohibition on commercial advertising, requiring airports to provide parking for CBP personal vehicle parking, not including clear flexibility for facility size, requiring separate technological systems and no formal involvement for airports in further ATDS revisions.

The meeting was very productive and CBP agreed to consider some positive suggestions from ACI-NA on solutions to airport concerns. These solutions are currently under legal review and ACI-NA staff continues to communicate with CBP staff on the final adjudication of the solution.

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ACI-NA staff coordinated the review of the Preclearance Facility Design Standards (PFDS) for Canadian airport members. Several Canadian airports provided CBP with a number of suggestions and they shared the document with Transport Canada. The document is near completion and staff and members continue to try to inject changes.

Best Practices Tours & Document Revision

The committee completed its seventh best practice tour of airport FIS facilities at Hartsfield-Jackson Atlanta International Airport (ATL) in July. The tours are aimed at allowing airport members, airlines, CBP headquarters personnel and local CBP management to review facilities and procedures to identify local best practices that can be shared around the system. During 2016 and 2017, the group visited Chicago O’Hare International Airport (ORD), John F. Kennedy International Airport (JFK), Los Angeles International Airport (LAX), Miami International Airport (MIA), San Francisco International Airport (SFO) and Washington Dulles International Airport (IAD).

The committee worked with the Passenger Facilitation Council of Airlines for America (A4A) to develop and submit a paper outlining the shared vision of best practices in international arrivals to CBP. The paper was sent to Todd Hoffman, Executive Director of the Admissibility and Passenger Processing division of the Office of Field Operations. CBP is working on a response to the paper.

Biometric Exit Program Testing

CBP has been testing biometric exit equipment at multiple airports. The purpose of the tests has been to validate the back-end approach and to understand how the equipment can interface with existing airline and airport operations. CBP’s approach to implementation has been shaped largely through the feedback from this committee and the airlines. During the past two months CBP has conducted eight operational tests of various biometric equipment at ATL, Boston Logan International Airport (BOS), ORD, George Bush Houston Intercontinental Airport (IAH), Houston Hobby International Airport (HOU), JFK, LAX, and MIA. Delta Air Lines and JetBlue Airways have been conducting their own test of biometric equipment which will send data to CBP at JFK, ATL, and BOS. CBP has yet to determine the full cost for the equipment, how the program and equipment will be funded, an operational plan, protocols for handling law enforcement triggers, and implications for staffing.

Mobile Passport Control (MPC) Continues Expansion in 2017

“Mobile Passport,” the mobile app developed by Airside Mobile under a partnership led by ACI-NA staff working with CBP, has been operational since August 2014. Usage continues to increase and system reliability has been exceptional. In 2015, over 180,000 passengers have used MPC to clear into the United States, with over 86 percent of users receiving a “confirmed receipt”. By the end of August 2017, more than 2.5 million passengers have used MPC to clear into the U.S. In the month of July, 2017 over 300,000 passengers were cleared into the U.S. using MPC.

Deployment of the app has rapidly increased with 24 airports in the program by the end of May 2017. MPC is now available at:

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1. Hartsfield-Jackson Atlanta International Airport (ATL) 2. Baltimore/Washington International Airport (BWI) 3. Boston-Logan International Airport (BOS) 4. Chicago-O’Hare International Airport (ORD) 5. Dallas/Fort-Worth International Airport (DFW) 6. Denver International Airport (DEN) 7. Fort-Lauderdale/Hollywood International Airport (FLL) 8. Houston George Bush Intercontinental Airport (IAH) 9. Houston Hobby International Airport (HOU) 10. Los Angeles International Airport (LAX) 11. Miami International Airport (MIA) 12. Minneapolis/St. Paul International Airport (MSP) 13. New York/John F. Kennedy International Airport (JFK) 14. Newark Liberty International Airport (EWR) 15. Orlando International Airport (MCO) 16. Raleigh-Durham International Airport (RDU) 17. Mineta San Jose International Airport (SJC) 18. Phoenix Sky Harbor International Airport (PHX) 19. Sacramento International Airport (SMF) 20. San Diego International Airport (SAN) 21. Seattle-Tacoma International Airport (SEA) 22. San Francisco International Airport (SFO) 23. Tampa International Airport (TPA) 24. Washington Dulles International Airport (IAD)

CBP is also working to deploy its own scanning equipment, replacing the IER-602 scanners purchased by airports in the initial phase of the program. The CBP system will eventually enable more dynamic interaction with travelers using the MPC system.

In addition, ACI-NA continues to push CBP to expand MPC to Canadian U.S. preclearance locations. CBP has overcome concerns from the Canadian government and now they are trying to solve a technical issue in order to confirm the location of the MPC user.

Upcoming Actions and Events

• The committee has planned three additional best practices tours with the A4A Passenger Facilitation Council and CBP headquarters staff for September 2017. The group will travel to DFW, HOU, and IAH in the remainder of 2017.

• The committee has planned to meet with the A4A Passenger Facilitation Council and CBP headquarters staff prior to the ACI-NA International Aviation Issues Seminar in December 2017.

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Potential Concerns and Issues

As traffic levels continue to increase, CBP staffing levels remain flat. Airports of all sizes are feeling impacts from the limited staffing levels. Airports are also now experiencing reduced and denied landing rights for international flights due to staffing problems. ACI-NA has revised the committee legislative priorities and will be engaging this more aggressive approach to advocate for additional appropriations and allocations to support staffing at existing facilities.

Monitor developments and the expansion of the Reimbursable Services Program (RSPs) (Section 559/560/481 program) as legislation now allows for an unlimited number of airports to participate. In the first round of applications under the new legislation, 18 airport or terminal operators representing 30 airport terminals were tentatively selected for inclusion in the RSP.

Continue to monitor developments and provide input to CBP related to their revision of the ATDS. Work with CBP headquarters staff to bridge the gap between the existing ATDS and future versions for projects under design or construction today.

Monitor CBP’s expansion of biometric exit trials and operational tests to ensure no impact to airport operations, financial performance or entry process staffing levels. Coordinate with A4A, IATA and other relevant industry groups to ensure interoperability and standardization of biometric technology.

Work with CBP to improve the MPC process to eliminate paper processes, create dynamic electronic receipts and minimize inspection points. Also work to advance the MPC program at U.S. preclearance locations in Canada.

Ensure CBP delivers required levels of staffing and resources to User Fee Agreement airports.

Monitor and document CBP technology infrastructure performance to further support resources and investment.

Monitor CBP’s Preclearance expansion plans and mitigate any negative impacts to airports in the U.S. and Canada.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Andy Rountree Washington, DC Vice Chair: Randy Bush Columbus, OH Second Vice Chair: Catherine Kloepfer Winnipeg, Canada Immediate Past Chair: Dave Armstrong Spokane, WA Associate Representative: Sharon Sarmiento Unison Consulting Board Liaison: Chellie Cameron Philadelphia, PA Committee Secretary: Liying Gu ACI-NA

Mission Statement

The ACI-NA Finance Committee supports the ACI-NA strategic initiative to develop a long-term funding strategy for airports to achieve financial autonomy in the face of government policy and regulatory creep, by enhancing the ability of airports to continue necessary infrastructure improvements and communicating the significant economic impact of airports (job creation and contribution to GDP).

Accomplishments Since Last Report

11th Annual Airport CFO Summit

The 11th Annual Airport CFO Summit, hosted by the Nashville International Airport, was held in Nashville on July 20-21, 2017, with 46 airport attendees. The Summit covered key issues facing the airport CFOs, such as controlling capital development costs, business models of ground transportation, innovative ways to deploy a Customer Facility Charge, impact of CFO input on succession and staffing strategy, combatting regulatory over-reach and introducing legislative reform, and strategies to influence air service incentives.

Airport Bond Issue Paper

Members of the Finance Committee contributed to an issue paper titled “Financing and Funding America’s Commercial Airports: The Impacts of Current Congressional Tax Reform Proposals and Proposed Options,” written by an outside consultant. This effort was spearheaded by the ACI-NA Government Affairs team. Members of the Finance Committee provided expert input and developed financial models to quantify the potential impact of changes in various tax policies on airport bond issues.

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Accounting/Financing Working Group

Comments on Standard & Poor’s Proposed Criteria for U.S. and Canadian Not-For-Profit Transportation Infrastructure Enterprises (TIEs): On July 18 Standard & Poor’s issued a request for comments on proposed changes to its methodology for assigning ratings and related credit products to U.S. and Canadian TIEs (not-for-profit airports, ports, toll facilities, or parking systems), and for debt secured by specific revenue streams tied to special facility projects or by demand tied to transportation infrastructure. If adopted, the proposed criteria will supersede existing criteria for rating debt issued by U.S. and Canadian TIEs, including airport revenue bonds, airport multi-tenant special facilities bonds, stand-alone passenger facility charge debt, and parking revenue bonds.

The Finance Committee formed a task force, led by Bill Case of the PFM Group and Max Underwood of DFW International Airport, to draft comments for ACI-NA. The comments, which were filed on September 1, focus on two concerns shared by most airports: • Application of a single set of criteria on different TIEs, considering that airport profiles differ from other TIEs; and • Transparency of the proposed holistic analysis that follows the application of the rating criteria

Airport/Airline Business Working Group

Airport Business Term Survey: The working group is discussing changes to the survey questions that need to be made prior to the survey launch in early October. The working group is also planning a webinar in late September to present a summary of the 2016-2017 survey findings. The webinar will also include a panel discussion on use and lease agreement negotiations, with airports sharing experience and lessons learned from recent negotiations.

Financial Implications of FAA Matters Working Group

Inputs to FAA Reauthorization: This working group has communicated regularly with the ACI-NA Governmental Affairs Committee regarding overall strategy, status of FAA reauthorization, and specific initiatives to be carried out by the ACI-NA Finance Committee Steering Group and working groups relating to FAA reauthorization. The ACI-NA staff completed an analysis to quantify incremental revenue from raising the PFC to $8.50 and imposing it on originating passengers only.

Strategic Planning and Performance Management Working Group

Annual ACI-NA Financial Benchmarking Survey: This working group has been conducting the Annual ACI-NA Airport Financial Benchmarking Survey since 2007. This survey, which currently tracks approximately 590 data elements, has proven to be a valuable tool for airports in evaluating their operational and financial performance. A total of 92 airports (27 U.S. large hubs, 22 U.S. medium hubs, 26 U.S. small hubs, 7 U.S. non-hub airports, and 10 Canadian airports) responded to the 2017 survey. The final results will be presented at the ACI-NA Annual Conference in Fort Worth on September 17 and in a webinar to be conducted in November. The webinar will feature real examples of how airports utilize benchmarking data for strategic planning.

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Upcoming Actions and Events

• The Finance Committee will meet during the 2017 Annual Conference in Fort Worth, TX, on Sep.17, 2017.

• The Finance Committee Steering Group will meet at DCA on January 11, 2018, to develop 2018 work plan.

Potential Concerns and Issues

None at this time.

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Leadership

Chair: Kurt Gering San Diego, CA Vice Chair: Rosa Beckett Jacksonville, FL Immediate Past Chair: Christine Santiago Las Vegas, NV Board Liaison: Bryant Francis Oakland, CA Associate Representative: Gale LaRoche ADK Canadian Airport Representative: Kirstan Jewel Edmonton, Canada Committee Secretaries: Nancy Zimini ACI-NA Ashley Sng ACI-NA

Mission Statement

The ACI-NA Human Resources Committee provides a forum where the aviation community can collaborate on strategic initiatives with a goal of optimizing Human Capital. The Committee’s objective is to be the aviation community’s HR resource.

Accomplishments Since Last Report

Compensation & Benefits Working Group

The working group is continuing to review and refine the current position descriptions found in the Compensation & Benefits Benchmarking Survey. As part of that process the group is looking at integrating a leveling matrix structure that clearly articulates the level of authority, degree of responsibility for others, typical credentials, and educational requirements for each of the 111 positions. This leveling matrix would allow for more effective and accurate job matching by survey participants and assure more accurate industry benchmarking. In addition, the group is initiating discussions with Western Management Group (WMG) and other survey data providers to better understand the future of compensation survey strategy and tools. With the emergence of crowd-sourced data analytics, new and innovative tools are allowing for more real-time market-based benchmarking. Providers like Pay Scale are being discussed and how this will impact the future of employer-driven surveys like the ACI-NA survey managed by WMG.

Workforce Planning Working Group

The working group has been focusing on a variety of programs to develop talent pipelines and future

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leaders within airports. Externally this effort is focused on developing outreach and marketing campaigns that help to educate the broader community that “airports offer exciting and rewarding careers.” The emphasis is on providing information on the wide range of jobs available within the aviation industry; one tangible example of this outreach is the ability for airports to post available internship positions on the ACI-NA website. Internally the focus is on talent development, which is being coordinated with ACI World’s Global Training programs, to create an awareness of the development and resources/tools that airports already have available to them. Please see the following three related items for additional information:

• Internship Page: This webpage is to provide additional educational content to students who are exploring employment opportunities at airports. Additional details can be found at http://aci- na.org/airport-internships. The working group is also developing another component which targets high schools that sponsor aviation clubs.

• Airport Pathway Program: Continued work in developing a program to assist airports in their recruitment activities and an additional talent pool resource is ongoing. This is a co-university and airport partnership program that introduces students to the airport industry via summer internships.

• Executive Leadership Exchange Program: The goal of this program is to develop the competencies needed at each level with an eye in grooming employees from within the organization to fill executive and management positions. Developing the criteria to qualify candidates, the approval process, and creating a pool of airports/organizations that have the need or can host candidates is currently underway. This is to provide hands-on training to candidates that may not have an opportunity at their local airports due to such projects not currently being conducted in order to gain the competencies to get them to the next level.

• Edge4Vets Program: This program concentrates on returning service members back into the civilian job market. As previously reported, the Edge4Vets pilot program recently conducted at Los Angeles World Airports (LAWA) was successful with seven (7) individuals being hired as a result. Endorsed by their CEO, their Executive Committee and the Mayor, this program is now being expanded at LAWA. The next pilot program will be conducted at Houston this fall as well as several South Carolina airports which will be focus on supporting smaller regional airports in a pilot program.

Upcoming Actions and Events

ACI-NA Excellence in Visionary Leadership Award Program

Now in its second year, solicitation for Award nominees was distributed and the evaluation of submissions is underway. This year’s winner will be presented with the Award at the Board and Commissioners Dinner during the ACI-NA Annual Conference in Fort Worth. As a reminder, this Award recognizes an Airport President/CEO that best exemplifies the following: relationship management, consultation, leadership & navigation, communication, global and cultural effectiveness,

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ethical practice, critical evaluation and business acumen.

2018 Business of Airports Conference

Planning for this conference is underway; it will be held in Portland, Oregon, June 11-13, 2018. The HR Committee continues to address timely issues, largely focusing on workforce planning. Topics include (a) workforce fluidity, e.g., welcoming Generation Z to the workforce; (b) how to create a positive “employer brand”; (c) the changing role and perception of HR, e.g., people analytics and making sense of social media as an effective HR tool; (d) inspiring an engaged workforce; and (e) looking at how recognition can fuel engagement.

Potential Concerns and Issues

None at this time.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Pierre Gagnon Montreal, QB Vice Chair: Ann Morgan Reno/Tahoe, NV Immediate Past Chair: Ray Ilgunas Los Angeles, CA Board Liaison: Candace McGraw Cincinatti, OH Committee Secretary: Tom Devine ACI-NA

Mission Statement

The Legal Affairs Committee provides airport attorneys with a forum to exchange information about new developments in case law, statutes and regulations affecting airports. The Committee also monitors pending airport litigation. Through its steering group, recommendations are made to the ACI-NA Board and Executive Committee regarding requests that ACI-NA file "friend of the court" briefs at the appellate stage of cases in federal and state court, where those cases are likely to have significant implications for U.S. airports. The Committee reviews and edits draft briefs prior to filing. In addition, the Committee drafts and edits comments filed in proceedings pending before administrative agencies of the federal government, and assists ACI-NA in informal discussions with those federal agencies. The Committee, through the ACI-NA staff, conducts surveys for the benefit of member airports on various airport agreements and practices, and maintains for the use of its members, sample language for various airport legal documents, e.g., policies, RFP's, minimum standards, easements, contract clauses, etc. The Legal Affairs Committee also responds to requests from the ACI-NA Executive Committee, Board of Directors, and other ACI-NA Departments for information regarding legal issues affecting airports, and plans conferences for its members, as well as provides speakers to other ACI-NA committees on a variety of airport legal issues.

Accomplishments Since Last Report

Committee members and the General Counsel have been involved in a number of activities:

• Update to Prior Report: Previously, the Committee oversaw the drafting and filing of an ACI- NA amicus brief in the 10th Circuit in support of Denver’s appeal of a preliminary injunction related to its regulation governing demonstrations at Denver International Airport. Tim Filer of Associate Member Foster Pepper drafted the brief, which emphasized the need to recognize the flexibility that airports are given under applicable First Amendment standards in establishing rules for demonstrations because they are not public forums. Denver has requested that ACI-

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NA participate in the oral argument before the 10th Circuit on September 26, to provide the court with information on the implications for airports across the nation of unduly constraining their ability to regulate demonstrations in their terminal. Mr. Filer will argue on behalf of ACI- NA after consultations with ACI-NA’s General Counsel.

• Update to Prior Report: Previously, the Legal Committee spearheaded an effort to draft and file ACI-NA comments in opposition to an IRS proposal to revise the standards for determining what entities qualified as “political subdivisions” for purposes of issuing tax exempt bonds. The issue arose once again under the Trump Administration Executive Order on regulatory relief. The Treasury Department identified the proposed rule as one that warranted consideration for withdrawal, and solicited comments from the public. Building on the points we made in ACI- NA’s original submission to the IRS, the Legal Committee took the lead in drafting a submission that supported withdrawal of the IRS proposal and tied our position into the Administration’s stated goals of providing regulatory relief.

• The General Counsel has continued to work on ACI-NA initiatives for relaxing FAA restrictions on air service incentives and the use of non-aeronautical airport land. This effort included work with the Government Affairs team and Denver to refine our proposals that resulted in the inclusion of the Sullivan-Gardner amendment in the Senate FAA Reauthorization bill that was reported out by the Commerce Committee. The General Counsel has also followed up to review and revise further refinements that may help facilitate acceptance of ACI-NA’s land use initiatives in the House bill.

• The General Counsel continues to represent ACI-NA in an RTCA Drone Advisory Committee Task Force on Governmental Roles in regulating drones when our primary representative, Chris Oswald, is unavailable to do so.

• The General Counsel and Legal Committee Members participate in other aviation legal forums to enhance the visibility of airport legal issues, including ACRP Legal panels, the ABA Air and Space Law Forum, and the Federal Bar Association’s Transportation and Transportation Security Law Section.

• The Committee has monitored/reviewed legal developments of importance to airports, such as the court case on the Travel Ban, a court of appeals decision overturning FAA’s order on new flight paths in the Phoenix metroplex, a court of appeals decision upholding LAWA’s labor peace requirement for agreements at the airport, and a recent AOPA informal Part 13 complaint against three airports concerning pricing for aviation fuel and ramp use.

Assistance to Airports

ACI-NA Legal Affairs Committee members have provided useful advice and input on a number of issues of importance to ACI-NA member airports. A typical means of doing so has been through ACI-NA’s solicitation of relevant information from other airport lawyers by circulating individual inquiries to the full Committee or to Steering Group members. Inquiries since the last Board report have included

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such matters/issues as CBP’s request to an airport for a no cost lease, a proposed on-airport marijuana processing facility, airport administrative appeal procedures for security violations, curbside valet parking agreements, and airport policies on conflicts of interest for consultants.

Coordination with Regulators

General Airport Legal Issues

ACI-NA legal staff has consulted with federal regulators and government agencies, and maintained legal contacts within various offices of the DOT, FAA, Government Accountability Office, and TSA, among others, to ensure that airport legal interests are understood and that agency officials have access to airport legal professionals on relevant issues.

Assistance Provided to the Board

• Nominating Committee matters. • Bylaw Revision issues. • Board Meetings and other matters.

Recent and Upcoming Meetings and Events

The Steering Group met on July 14 in Chicago to plan the Fall Legal Workshop that is being held September 16 and 17 in Ft. Worth, in conjunction with the Annual Conference and Exhibition. The Steering Group also met on Friday, September 15. The next Steering Group meeting is tentatively set for January 19 in Austin, Texas.

Potential Concerns and Issues

Reviewing/revising airport regulations for demonstrations in the social media era when such demonstrations could arise very quickly; dealing with violent incidents and their aftermath at airports; public private partnership opportunities and challenges; labor peace/living wage issues; drones; understanding airport obligations under various civil rights and disabilities laws; burdens imposed on airports by FAA and TSA; AOPA’s attempts to get FAA to further regulate airport-FBO relations; aggressive approaches by airlines in use and lease agreement matter; P3 projects at airports; responsibilities and liabilities of airports with respect to tenants’ contractors operating on airport; noise issues; fueling issues; and federal constraints on airports that impede the effective use of airport resources.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Brad Martin Boston, MA Vice Chair: Krista Kealey Ottawa, ON Immediate Past Chair: Justin Meyer Kansas City, MO Board Liaison: Marily Mora Reno, NV Committee Secretary: Scott Elmore ACI-NA

Mission Statement

The ACI-NA Marketing and Communications Committee provides professional support and educational opportunities for ACI-NA members in air service and business development, marketing, public affairs, customer service and community relations. The Committee develops aviation-related educational and policy programs for ACI-NA members. The Committee identifies issues and promotes public awareness of airports as economic generators for their communities.

Accomplishments Since Last Report

ACI-NA provided media visibility and social media support surrounding FAA reauthorization. Specifically, ACI-NA generated supportive messaging following the Senate Appropriations Committee inclusion of a modernized Passenger Facility Charge (PFC) user fee and an increase in funding for the Airport Improvement Program (AIP) in their Fiscal Year 2018 Transportation, Housing and Urban Development, and Related Agencies (THUD) Appropriations Act.

ACI-NA assisted in developing crisis communications messaging in response to Hurricane Harvey and Hurricane Irma.

ACI-NA is media outreach surround Mobile Passport Control reaching the milestone of more than 2 million downloads.

ACI-NA has partnered with Airport Business magazine to contribute a running column in the magazine. The second column appeared in August 2017.

ACI-NA monitored and assisted members during a social media campaign aimed at the airport industry associations and airports related to television broadcasts in airport terminals.

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Media Relations

Since the last Board report, ACI-NA issued 8 news releases and statements. These statements advocated industry positions on political appointments, airport infrastructure, passenger facilitation, and ACI-NA conferences.

In support of ACI-NA’s FAA reauthorization priorities, ACI-NA continues to successfully share infrastructure related messaging. ACI-NA conducted in-person media briefings The Hill, Roll Call/CQ and the Politico Editorial Board.

In support of ACI-NA’s airport priorities, we conducted a media interview ARN on the expanding Beyond the Runway Coalition. The coalition has helped ACI-NA amplify our message on airport priorities to policy makers on Capitol Hill.

ACI-NA participated in an on-camera with Scripps Network. The interview focused on the importance of funding for airport security including the Law Enforcement Reimbursement Program (LEO).

ACI-NA conducted a media call with the New York Times on airline consolidation and the resulting effects on air service development for airports.

Social Media

We currently have 12,000 Twitter followers (increase of 332) and 3,207 fans on our Facebook page (increase of 130).

The CAC currently has 2,668 followers on Twitter (increase of 47).

Website Metrics (June 1, 2017– August 31, 2017)

• 34,608 users visited the site • Total of 163,691 pageviews • 60.9 percent returning visitors • Average pages per session was 2.07, with the average session duration lasting 2 minutes and 32 seconds. • 15.15 percent of all users accessed the site via a mobile device/tablet • 84 percent of all users came from North America

Top Five Pges Visited

1. Homepage (29,152 pageviews) 2. Jobs Section (11,746) 3. All Conferences (10,085) 4. Press Releases (5,622) 5. RFPs section (4,851))

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Upcoming Actions and Events

• 2018 ACI-NA Marketing and Communications Conference, November 6-8, 2017, St. Louis, MO

Steering Group

• The steering group is actively planning the 2017 ACI-NA Marketing and Communications Conference, set to be held November 6-8, in St. Louis. The conference will feature the 2017 ACI-NA Excellence in Airport Marketing, Communications, and Customer Service Awards and the Ted Bushelman Legacy Award for Creativity and Excellence.

• The steering group continues to work in partnership with the Facilitation Committee to develop a tool kit to help communicate the international arrivals process and eligibility requirements/ options for arriving passengers before entering the FIS.

Working Groups

Customer Service Working Group

The CSWG will begin planning the ACI-NA/AAAE Airport Customer Experience Symposium on October 11, 2017, with a planning meeting at the AAAE offices. The 2018 conference will be held in Dallas, TX.

Media Relations Working Group

The group is in the final stages of developing an initial Airport 101 tool kit. Airport 101 will incorporate a media directory of all ACI-NA airport communicators. The tool will be provided to airports, the regulatory agencies, and airline communicators. In addition to recently completed industry talking points on key issues like security and noise.

Air Service Working Group

The 2017 JumpStart that took place in Providence, RI hosted 30 airlines, 50 tables, more than 80 airline delegates, and 200 airports for more than 1,300 one-on-one meetings. The group has begun planning for the 2018 Air Service Data Conference as well as the 2018 JumpStart Conference. The group has also played a leading role in guiding the discussion of a stand-a-lone Air Service Committee (see report).

Potential Concerns and Issues

None at this time.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Patrick Neville Tortonto, ON Vice Chair: Peter Higgins Salt Lake City, UT Immediate Past Chair: Emily Underhill Fort Meyers, FL Board Liaison: Charles Everett New York, NY Committee Secretary: Chris Oswald ACI-NA

Mission Statement

The ACI-NA Operations & Technical Affairs Committee is the forum for the discussion and development of policies and programs that relate to airport safety, planning, design, operations and maintenance. Members of the Committee focus their efforts on: airfield and ramp safety; terminal, apron, airfield and roadway design; satellite navigation and enhancements to system capacity; impacts of new large aircraft; winter operations; airspace obstruction evaluation and control; pavement design, construction and maintenance; signage; lighting; airfield markings; airport maintenance systems; and airport safety technology research and development. Staff and committee members produce legislative recommendations, respond to regulatory proposals, interface with industry/government working groups and task forces, and serve as industry representatives to a variety of aviation organizations including the FAA Research, Engineering and Development Advisory Committee, National Academy of Science Transportation Research Board, and the International Civil Aviation Organization (ICAO).

Accomplishments Since Last Report

Industry Meetings/Conferences

In August, the Committee—in concert with the American Association of Airport Executives—held a 1½ -day workshop regarding airport safety management systems (SMS). Workshop sessions covered topics such as “How to Get Started on Your SMS Program”, “Safety Assurance—Making Your Safety Data Work for You”, and “Living in the Real World—The Legal and Insurance Aspects of SMS”. Held in Minneapolis, the conference attracted over 80 attendees from commercial airports of all sizes.

Committee members from both the U.S. and Canada as well as ACI-NA staff participated in a two-day seminar hosted by the FAA in Washington DC regarding runway condition reporting procedures that were introduced by the FAA during the 2016-2017 winter season. The seminar provided a mechanism for airport operators, airlines, and the FAA to share remaining concerns about the new condition reporting

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requirements, clarify areas of confusion, and identify areas for improvement in the 2017-2018 winter season.

Regulatory Issues and Advisory Circular Reviews

The Committee contributed to ACI-NA’s proposals to simplify and reform airport regulations in the United States and, via ACI-NA staff, have been commenting on a variety of regulatory reform proposals put forward by the broader aviation industry via the FAA’s Aviation Rulemaking Advisory Committee (ARAC).

The Committee also continued to work with the FAA on guidance regarding community outreach projects during airport planning processes.

Select committee members and ACI-NA staff have been active in the FAA’s Drone Advisory Committee (DAC) Subcommittee and have been ensuring that airport interests are incorporated into DAC tasking letters to industry regarding (1) the division of roles and responsibilities for drone regulation and enforcement, (2) by what means drones will be able to gain access to certain types of controlled airspace, including airspace over or near airports, and (3) the level and allocation of federal resources needed to ensure drone operations occur safely, securely, efficiently, and without adverse impacts to manned aircraft.

Participation in NextGen Development

The Committee also continued to support members and ACI-NA staff involved with several industry working groups organized by the NextGen Advisory Committee regarding improved processes for (1) planning & implementing performance-based navigation (PBN) procedures, (2) prioritizing NextGen surface management, PBN, and multiple runway operations (MRO) capabilities, and (3) developing performance metrics to assess NextGen performance.

ACI-NA successfully advocated for the addition of NextGen Working Group co-chair Roy Furhmann (MSP) to the NextGen Advisory Committee Working Subcommittee, increasing airport participation in this important body.

ACI-NA and four airport members—the Port Authority of New York and New Jersey, Broward County Aviation Department, the Clark County Department of Aviation, and Dallas/Fort Worth International Airport—are continuing to work with the FAA and select airline partners to implement airport collaborative decision making (A-CDM) programs at U.S. airports.

Canadian Subcommittee Highlights

Activities of the Canadian Operations, Safety, and Technical Affairs and Planning, Development, and Infrastructure subcommittees are included in the Canadian Airports Council section of the Board Report.

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Support for ACI-NA and ACI World Initiatives

The Committee continues to actively support the ACI-NA Government Affairs Department’s efforts on Capitol Hill. Specific issues with which the Committee has been involved include SMS, airport planning, airport sustainability, NextGen, FAA reauthorization (including possible air traffic commercialization and UAS issues), and airfield safety.

ACI-NA staff continues to represent members in key U.S. safety forums, including the Commercial Aviation Safety Team (CAST) and the FAA Runway Safety Council. In these forums, we provide airport subject matter expertise and represent member interests.

The Committee’s involvement in the ACI World Safety & Technical Standing Committee (STSC) continues and several North American representatives—Alan Black (DFW), Karl Brochu (YUL), Tom Duffy (Safegate/ADB), Jo Lary (Pavement Consultants, Inc.), Paul Meyer (ATL), Chris Oswald (ACI-NA) and Brett Patterson (YVR) are active participants. The Committee is gearing up to support the STSC’s effort to develop airport safety benchmarking data.

Strategic Plan Review

The Committee Steering Group continued its strategic planning effort—with a day-long workshop in Minneapolis on August 10. The purpose of the review is to reassess the Committee’s mission, goals, priorities and work efforts. The August 10 meeting concluded with the prioritization of elements for a 3 year work plan which is being presented to the full committee in Fort Worth.

Upcoming Actions and Events

Upcoming Conferences and Workshops

The Committee and its Planning & Development Working Group is currently developing the technical program for the 2017 ACI-NA/ACC Airport Planning and NEPA Workshop which will take place in Arlington, VA from November 29-December 1.

Planning activities have also commenced for the 2018 Airports@Work meeting in New Orleans, LA in March 2018 and the 2018 Construction Strategy Summit in late Spring in the Northeast US.

Regulatory Actions

The Committee will continue to monitor progress regarding NextGen, SMS, and FAA regulatory reform initiatives, with the last item being a shared responsibility with the Legal Affairs and Environmental Affairs committees.

Support for ACI World Initiatives

The Committee will continue to assist ACI World with the development of Airport Collaborative

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Decision Making, Safety Key Performance Indicators, Aircraft Rescue and Firefighting handbooks, among others.

Potential Concerns and Issues

In the U.S., the Committee continues to be interested in how Trump Administration priorities regarding infrastructure investment and regulatory review will impact airport development, construction, and certification requirements. With respect to infrastructure, the Committee stands ready to support the Board with information and expertise regarding alternative project delivery approaches—including public-private partnerships, assessments of development project needs, and regulations regarding airport development, design, construction and operation that are worthy of reconsideration.

Related to the prior point, the Committee will be assisting the Board with development and finalization of its report and recommendations regarding the infrastructure initiatives of the ACI-NA Challenge 2025 intiative.

We do foresee FAA action on airport SMS regulations in the first or second quarter of CY2018 and will update the Board in our Winter report regarding the likely timeline for new SMS requirements.

As we continue our work on our strategic plan, we do expect to ask the Board to review modifications to our mission statement and work plan going into the new calendar year.

Board-Requested Activities Update

No activities at this time, but as noted above, the Committee will be supporting Challenge 2025 initiatives regarding infrastructure in the coming four months.

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Leadership

Chair: Douglas Mansel Oakland, CA Vice Chair: Michele R. Freadman Boston, MA Second Vice Chair: Shawna M. Larson Phoenix, AZ Immediate Past Chair: Frank Capello Fort Lauderdale, FL Board Liaison: Kelly Fredericks Ontario, CA Committee Secretary: Christopher R. Bidwell ACI-NA Sean Cusson ACI-NA

Mission Statement

The Public Safety and Security (PS&S) Committee’s mission is to enhance the safety and security of airports by providing recommendations to industry and government for aviation safety and security policies, identifying best practices in aviation safety and security, and identifying and/or developing educational and technological resources that help accomplish airport safety and security objectives.

Accomplishments Since Last Report

Discussion with TSA Administrator Pekoske

ACI-NA President and CEO Kevin Burke and Christopher Bidwell participated in a discussion with TSA Administrator David Pekoske and raised topics of importance to airports. ACI-NA stressed the need to coordinate closely with airports on aviation security initiatives.

Enhanced Security Measures

Through ongoing dialogue with the Department of Homeland Security (DHS), including then-Secretary John Kelly, and TSA, ACI-NA advocated for risk-based, multi-layered measures which could be implemented at the last point of departure airports rather than a wholesale ban on electronics on flights to the United States. In addition, ACI-NA and the PS&S Committee stressed that the requirement for U.S. airports to assist in the screening of checked bags on covered flights upon arrival adversely impacts airport operations and unnecessarily drains limited airport and TSA resources.

In order to respond to evolving threats to civil aviation, then-Secretary Kelly announced requirements for domestic aircraft operators and foreign air carriers to conduct enhanced screening of personnel

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electronic devices (PEDs) at last point of departure airports. Although a majority of the security measures did not directly impact Canadian airports, ACI-NA continues to work with DHS and TSA to ensure the application of enhanced measures at preclearance airports is limited to responding to identified vulnerabilities that are not addressed by existing security procedures.

Public Area Security

Although TSA previously released the Public Area Security National Framework, which contains recommendations to enhance security in public spaces at airports, the agency has stressed the importance of a continued focus on public area security. In discussing the topic with TSA, ACI-NA and representatives of the PS&S Committee committed to participate in future Public Area Security Summits. In addition, the PS&S Committee constituted a Terminal/Landside Crisis Response Task Force, which developed a report containing considerations for airports in responding to and managing terminal security incidents.

Enhanced Accessible Property Screening

Following the completion of a pilot program conducted at 10 airports, TSA announced a plan to expand enhanced accessible property screening procedures at all U.S. airports. As occurred during the pilot, TSA is positioning officers in front of X-ray machines to assist passengers and advise what items will need to be removed for separate screening. Passengers in standard lanes will be asked to remove electronics larger than a cell phone from their carry-on baggage and place them in a bin. In some cases, passengers may be advised to place other carry-on items in a separate bin for X-ray screening. The enhanced measures do not apply to passengers in TSA Pre✓® screening lanes. TSA developed a phased deployment strategy for Federal Security Directors, so enhanced accessible property screening could be rolled out at individual checkpoint lanes, with full implementation by May 2018.

TSA Innovation Task Force Technology Initiatives

Last year, the Department of Homeland Security (DHS) approved an urgent operational need (UON), granting TSA the authority to deploy Automated Screening Lanes (ASLs) at the top 20 airports, plus Chicago Midway. In accordance with the UON, plans for ASL deployments must be completed by September 30, 2017 and the deployment of systems must be completed by January 30, 2017. To date, more than 71 ASLs, purchased by airports and airlines, have been deployed to Hartsfield–Jackson Atlanta International Airport, Newark Liberty International Airport, John F. Kennedy International Airport, McCarran International Airport, Los Angeles International Airport and Chicago O'Hare International Airport. Although the systems are still being tested, TSA reports up to a 29.4 percent efficiency gain for dual checkpoint lanes outfitted with ASLs. With the approval for the use of systems integrated with Smiths Detection X-ray systems, ASL deployments are planned at twelve additional airports.

Since TSA has not received funding for the procurement of ASLs, it is relying on airports and airlines to purchase the systems along with a two-year warranty to bridge the gap in funding the agency needs in order to maintain existing and to deploy new systems.

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The TSA Innovation Task Force, in partnership with American Airlines, Boston Logan International Airport and Phoenix Sky Harbor International Airport, is conducting computed tomography (CT) checkpoint screening demonstrations at security checkpoints. Although more expensive than the dual view X-ray systems currently in place, CT, once approved by TSA for deployment at checkpoints, has the potential detection capability so that travelers may be allowed to leave laptops and liquids in their carry- on bags.

TSA Outcome-Focused Compliance Initiative

PS&S Leadership and Committee members continue to participate on the TSA Compliance Advisory Group (CAG), to provide input on the transition to and roll out of Outcome-Focused Compliance (OFC), a program designed to enhance security through self-assessments, collaborative compliance and risk mitigation.

Although TSA inspectors will continue to conduct inspections, the new approach will be risk-based and focused on improving security through coordinating efforts with airports and other regulated entities. TSA inspectors will not immediately resort to writing and sending Letters of Investigation upon discovery of an alleged security violation. Instead, they will work closely with airports to mitigate the areas of greatest risk. Each of the applicable security regulations governing airports has been mapped to a risk score which will be used to direct inspection activities/work plans, and to determine the appropriate course of action. Security violation data will be shared with the airport to increase situational awareness and provide informed decision-making. Joint testing and auditing is one of the program tenets. Initiatives to mitigate security vulnerabilities will be developed collaboratively between TSA and airports, specifically focusing on the root cause(s) of apparent violations/vulnerabilities and the effectiveness of solutions and countermeasures. Special training on root cause analysis has been provided to Transportation Security Inspectors and an overview of this training will be provided to airports.

The program, which is modeled after the Federal Aviation Administration’s collaborative compliance model, is on track for implementation on October 1. Federal Security Directors and Assistant Federal Security Directors for Inspection have received training on the OFC program and have been directed to provide training to airport representatives. In addition to the materials provided by the agency in response to an ACI-NA request, TSA committed to disseminate additional information about the program.

REAL ID

In accordance with the Department of Homeland Security REAL ID enforcement timeframe, TSA, on January 22, 2018, will only accept driver’s licenses and identification cards from compliant states and from noncompliant states with an extension. Passengers over 18 years old presenting identification from a non-compliant state will be required to present an alternate form of identification. DHS recently approved Minnesota, Missouri, and Oregon for extensions. Currently, 26 states are in full compliance with REAL ID. On October 10, DHS plans to review the progress of 30 states with extensions toward becoming compliant with REAL ID requirements. Each year, DHS makes the requirements for obtaining an extension more stringent.

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Canadian Caucus Highlights

Activities of the Canadian Airports Council (CAC) Security Committee are included in the Canadian Airports Council section of the Board Report.

ACI/CAC Staff Coordination

In order to strategically coordinate on global security and facilitation initiatives, ACI-NA continues to host monthly conference calls with security and facilitation staff from CAC, ACI World, ACI Europe, and ACI Asia-Pacific to ensure that issues of mutual concern are identified, prioritized and addressed by the appropriate association representative. The calls have been particularly helpful in coordinating alternative strategies to the potential expansion of the electronics ban and on various International Civil Aviation Organization (ICAO) initiatives.

Upcoming Actions and Events

The PS&S Committee is planning the Fall 2017 PS&S Conference in Arlington, VA, where the Committee will meet jointly with the Airlines for America Security Council. The conference will include the participation of senior officials from DHS and TSA, including TSA Administrator David Pekoske.

Potential Concerns and Issues

None at this time.

Board-Requested Activities Update

None at this time.

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Leadership

Chair: Trisha Sqrow Dallas/Fort Worth Vice Chair: Frank Rivera Boston, MA Second Vice Chair: Catrina Gilbert Atlanta, GA Immediate Past Chair: Desmond DeMoss Oakland, CA Associate Representative: Jerry Ruth Chubb USA Board Liaison: Terry Slaybaugh Dayton, OH Committee Secretary: Ashley Sng ACI-NA

Mission Statement

The Risk Management Committee serves as the forum for discussing airport risk management issues including loss control and prevention, airport insurance agreements, regulatory requirements, and Enterprise Risk Management, as well as airport safety issues and other important insurance-related topics. It also works towards developing and enhancing the ACI-NA Airport Insurance Program.

Accomplishments Since the Last Report

2017 Risk Management Conference Planning

The 2018 Risk Management Conference will be held in New Orleans, LA, from January 10-12, 2018 and will follow the same format as previous years in providing a pre-conference workshop and two full days of educational and networking opportunities along with a lunch keynote speaker. The 2017 conference workshop focused on integrating Enterprise Risk Management and Safety Management System programs and was highly successful. For 2018, the workshop topic is Crisis Risk Management. The Planning Committee has shortlisted topics based on suggestions from previous conferences and a survey sent in June. The topics will be covered during the general, insurance and safety sessions.

Airport Owners and Operators General Liability Insurance Limits Working Group

The Committee proposes research on the appropriate limit of liability an airport should procure as part of its Airport Owners & Operators General Liability insurance program. The completed project will provide comparative data to inform airport decision makers. Scott Gibbons has drafted a framework and has distributed a short survey to the Risk Management Committee on enplanements, largest and most common passenger aircraft utilizing the airport, and current liability limits etc.

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Certificate of Insurance (COI) Tracking Working Group

Risk Management Units are tasked with ensuring tenants, vendors, contractors, and service providers (“vendors”) are compliant with contractual insurance requirements. It is important to ensure that each vendor is compliant with their respective insurance requirements to avoid the need to utilize airport insurance policies. The strategy is an important element to keeping exposure to claims low and thereby keeping the cost of insurance down. Since there is no “one size fits all” approach, the working group will explore strategies to strengthen current programs as well as evaluate the pros and cons of self-administration vs. outsourcing. Frank Rivera has shared the first draft of the COI Working Group document with the Steering Group.

Benchmarking Working Group

The Working Group would like to take an active role in the collection and distribution of industry metrics and data to Committee members, such as information from insurance carriers, Risk Information Management System, etc. Tracy Meyer has compiled a list of issues for the Steering Group to review and comment for consistency among airports.

Upcoming Actions and Events

ACI-NA Annual Conference

The Steering Group has organized an educational session that outlines how an airport’s risk management function can play a role in crisis management/preparedness. The session, titled “Risk Management: Planning Before a Crisis Occurs”, will be moderated by Michael Yip, Vice President of Risk Management, Dallas/Fort Worth International Airport and will feature three speakers; Michael Nonnemacher will share pre-planning lessons learned from the active shooter event at Fort Lauderdale International Airport, Roxanne LeBlanc will talk about a cyber-attack at Fort McMurray Airport, and Matt Barkett will speak about best practices for overall crisis management.

2018 Risk Management Conference

The Planning Committee will be finalizing the agenda topics and will begin reaching out to potential speakers. The conference will be held in New Orleans, LA, from January 10-12, 2018.

Potential Concerns and Issues

None at this time.

Board Requested Activities

None at this time.

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Leadership

Chair: Greg Kelly Savannah, GA Vice Chair: Terrence Slaybaugh Dayton, OH Immediate Past Chair: Bob Mattingly Sarasota, FL (retired) Board Liaison: Rick Tucker Huntsville, AL Committee Secretary: Paul Eubanks ACI-NA

Mission Statement

ACI-NA’s members range from the busiest airports in the world to those providing services to some of the smaller communities in North America. ACI-NA’s Small Airports Committee provides a single forum to address all of the issues and concern faced by smaller commercial service and general aviation airports in North America with a special emphasis on the development of programs and policies to assist airports with limited resources. Airport funding, regulatory flexibility, small business impacts, and market development are some of the more relevant topics on the Committee’s agenda

Accomplishments Since Last Report

JumpStart Air Service Development Program Committee Meeting

In conjunction with the ACI-NA JumpStart Air Service Development Conference, the ACI-NA Small Airports Committee held a Committee meeting on Sunday, June 4 in Providence, RI.

The meeting, which was attended by 60+ members, included presentations and discussion pertaining to FAA Reauthorization, Challenge 2025, DOT Small Community Air Service Working Group, Wisconsin Fly Local Initiatives at both Green Bay and Madison airports, law enforcement officer challenges at Syracuse, Des Moines airport terminal project update, operational challenges at seasonal airports including Nantucket, ultra-low cost carriers operating at small and non-hub airports, as well as solicitation for a new Vice Chair Candidate (to be announced at the Fort Worth Committee meeting).

Air Service Incentives and Regulatory Reform

The Committee continues to support ACI-NA General Counsel, Tom Devine, and his on-going efforts to work with FAA/DOT officials on proposed air service incentive initiatives, as well as proposed reforms of DOT/FAA regulations pertaining to the development and disposition of non-aeronautical airport land.

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The Committee has worked with Regional Air Service Alliance (RASA) to ensure that PFC modernization messaging is consistent with ACI-NA/AAAE messaging.

The Committee has reviewed the Vision 2025 Air Service task force recommendations and has agreed that it meets the Air Service priorities of the committee.

The committee has reviewed the ongoing work of the Vision 2025 “new Airport Business Model” task force and has provided and will continue to provide input.

Upcoming Actions and Events

• The Committee has begun work to develop 2017/18 FAA Reauthorization objectives, to provide to the U.S. Policy Council for their consideration.

• In conjunction with the CEO Forum and Winter Board of Directors Meeting, the Committee will next meet in Palm Beach, Florida on Thursday, February 8, 2018.

• The Committee is working aggressively to increase membership and active participation.

• The Committee is working with the Regional Air Service Alliance (RASA) to support small community air service objectives and to address concerns.

• The Committee will build liaisons with the newly established Large and Medium Airport Committees.

• The Committee will work with its members to determine what the Committees’ position will be regarding ATC reform, to provide to the U.S. Policy Council for their consideration.

• The Committee will be reviewing the offsite ATCT solution study as a potential technology to help non-towered or limited tower airports.

• The Committee will begin looking at the potential impact of driverless cars on airport operations and revenue.

• The Committee will explore partnering with AAAE’s Air Service Committee for collaboration on common issues.

• The Committee will solicit for and nominate its next Vice Chair.

Potential Concerns and Issues

• The top issue for the Committee remains addressing air service concerns amongst its members. The Committee will be aggressively pursuing solutions to this problem. The Committee fully supports the air service efforts of the Challenge 2025 project.

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• The Committee wants to see a greater effort made in pursuit of airport regulatory modernization that will allow the use of airline revenue for air service development.

• The Committee wants to ensure that any PFC modernization plan protects small and non-hub airport funding.

• The Committee is concerned about instances of retaliation by the legacy carriers on airports who establish alternative rate structures for the ULCC’s and other low volume carriers.

• The Committee is concerned about PFC related language that was included in the DOT Improving Air Service to Small Communities Working Group report expressing concern about an uncapped PFC as being inconsistent with ACI-NA/AAAE’s position.

• The Committee supports a more aggressive approach directed at addressing and supporting potential solutions for the pilot shortage issue.

• The Committee would like to see closure on the Vision 2025 initiative so that the task force recommendations can be integrated in to ACI-NA’s list of priorities as soon as possible.

Board-Requested Activities Update

None at this time.

2017 ACI-NA Fall Board Report 196 e d u c at i o n & e v e n t s Meetings and Conferences Report

ACI-NA Meetings and Conferences Team

• Dee Clemmons, VP, Meetings, Education and Partnerships • Lori Jackson, Director of Conferences • Caitlin Sloan, Manager Conferences • Cristina Seminario, Senior Meetings Coordinator • Randi Ayala, Meetings and Office Services Coordinator

4,927 4,917 868 14 INDIVIDUALS REGISTERED GLOBAL TRAINING HOURS STUDENTS ENROLLED GLOBAL TRAINING COURSES TO ATTEND EVENTS TO DATE DELIVERED IN NORTH AMERICA IN ONLINE COURSES DELIVERED IN NORTH AMERICA

2017 ACI-NA ANNUAL CONFERENCE AND EXHIBITION

289.5 173 121 41 SOLD BOOTHS EXHIBITING COMPANIES EXHIBITING MEMBERS FIRST TIME EXHIBITORS

Events Conducted Since the Last Board Report:

Event Dates Location Airport Collaborative: Crisis Management Workshop June 27 - 28, 2017 Herndon, VA Business of Airlines Workshop for Airport Decision Makers July 17 - 19, 2017 Seattle, WA AAAE/ACI-NA Airport Summer Fly-In July 24 - 26, 2017 Washington, DC 2017 ACI-NA/AAAE Airport Safety Management Systems August 8 - 9, 2017 Minneapolis, MN Workshop

Please see the attached industry calendar of events at the end of this section for the complete list of upcoming ACI-NA and industry events.

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