Richmond International Airport (RIC)
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Richmond International Airport (RIC) Hanover County Board of Supervisors Update July 22, 2020 1 The Capital Region Airport Commission An Example of Multi-Jurisdictional Cooperation • Created by an act of the Virginia General Assembly in 1975, the Commission is the owner and operator of Richmond International Airport (RIC). • 14 Members appointed by four participating jurisdictions. • Current Hanover members: • Aubrey M. Stanley, immediate past Chair • Wayne T. Hazzard – Vice Chair • New President & CEO: Perry J. Miller, AAE, IAP 2 In the News - Record Passenger Numbers - New Routes, Expanding Nonstop Access 3 Recapping 2019, RIC’s Best Year Ever Momentum Carried into 2020 with January, February Traffic Records • 2019 Passengers: 4.38 million. [ALL-TIME RECORD] • 2019 Cargo: 140.0 million pounds. [BEST IN TWO DECADES] • 2019 Operations: 106,000. [STEADY GROWTH DESPITE CONSOLIDATION] • Seven major passenger air carriers. • Three major cargo air carriers. • Annual economic impact: $2.1B and nearly 16,000 jobs across the Richmond Region.1 • 2,600 current badgeholders.2 • 200 direct Commission employees.3 4 1 Virginia Department of Aviation (2017). 2 RIC Badging & Operations. 3 CRAC Finance. 1978 1990 2000 Present Northwest Northwest Northwest Republic Delta Delta Delta Western (Delta receives Europe and Shuttle, United Pan Am acquires Pacific and Asia) United United United Continental Continental Continental Texas Int’l Morris Air Eastern AirTran Muse Air Frontier Southwest Southwest Southwest ATA ATA ATA American American American Air Cal Reno Air Ozark TWA TWA TWA Allegheny USAir US Airways Piedmont Trump Shuttle Source: Campbell-Hill Aviation Group. PSA America West America West RIC’s Nonstop Service Map with Latest Additions Tampa (TPA) & Orlando (MCO) Weekend Service 6 Infrastructure Improvements - Concourse A Extension - Concourse B Checkpoint Expansion - Expansion Plan for Parking (ready when needed) 7 $28.5M Concourse A Extension Will Add Six New Gates RIC Grows to Accommodate Future Airline Demand 8 Concourse B Checkpoint Expansion Underway 50% Increase in Screening Lanes, Operational Flexibility for Growth 9 Future Plans for North Garage Vertical Expansion Not Needed in the Near Term, but Ready and Available if Supported by Demand FUTURE THREE- LEVEL EXPANSION 10 Part II: COVID-19 Strikes WHO Declares Pandemic - Travel Restrictions Enacted - Thousands of Aircraft Parked - Commercial Aviation Hits the “Pause” Button 11 The COVID-19 Pandemic Had an Immediate Impact Timing: It Arrived Just as Local Universities Started Spring Break The Richmond Experience • RIC’s busiest day of 2020 was March 6th with nearly 16,000 travelers. • Two weeks later, March 20th, the count was only 4,000. • On April 14th, less than 500 passengers (combined arrivals and departures) traveled through the terminal. • At the lowest point, RIC’s public parking facilities – nearly 11,000 spaces all told – held 243 cars. U.S. Domestic Summary • U.S. traffic in March dropped 50% vs. a year earlier. • In April, domestic traffic decreased approximately 96% YOY. • On April 14th, TSA screened 87,000 passengers at U.S. airports. One year earlier, more than 2.2 million were screened. 12 TSA Total U.S. Travelers Throughput Checkpoint Travel Numbers for 2020 and 2019 X 13 More than 60% of the World’s Fleet Parked at Peak As the Industry Goes into a “State of Hibernation” • Prior to COVID-19, global commercial aviation had a hull count of about 24,000 aircraft. • At the peak, 16,400 jetliners were parked. • Some have been retired and will never return to revenue service. 14 The Impact of COVID-19 on Commercial Aviation with Ripple Effects across the Travel Industry • The International Air Transport Association (IATA) predicts that airlines will lose $84.3 billion in 2020, financially “the worst year in the history of aviation.” • $230 million daily loss • $37.54 loss per passenger • -20% net profit margin • CARES Act relief to airlines amounts to $50 billion in the form of grants and loans secured by equity interest. • By the same legislation, $10 billion in grant relief was set aside for airports. Virginia airports anticipate $300 million; RIC expects to receive $18.8 million. • The downturn in activity has had a detrimental impact across the spectrum of Travel and Tourism. • Hotels, restaurants, and retail report closures, big losses. • Hertz files Chapter 11 bankruptcy protection. 15 Ready for Your Next Journey - Passengers and Their Air Travel Expectations - Electrostatic Cleaning & Disinfecting Systems - The Commission’s Financial Outlook - RIC’s Newest Arrival 16 Passengers and Their Air Travel Expectations Recent Industry Research* Suggests Clear Concerns and Preferences RESEARCH FOCUS • Health Measures • Passenger Touchpoints • Mitigation Strategies • Concessions & Services • Airport Trust *Survey conducted by Airports Council International – North America (ACI-NA). 17 Key Findings: Health Measures HEALTH MEASURES • Passengers want Airports to mandate and observe social distancing. • Passengers believe they and others should provide their own facial coverings if required for their trip. • Passengers want restrooms and public areas cleaned at least once every 30-60 minutes. 18 Key Findings: Mitigation Strategies TOP 4 MITIGATION STRATEGIES Touchless Hand Sanitizer Limit Seating Physical Distancing Technology 19 Key Findings: Airport Trust AIRPORT TRUST • Passengers trust airports to take the necessary precautions to protect health and safety. • Passengers overwhelmingly feel comforted by the sight of airport workers wearing personal protective equipment like masks and gloves. • Passengers want airports to follow the same public health guidelines regardless of local requirements. 20 Building Services Responds to the COVID-19 Threat Clorox Total 360 and Protexus Systems Deployed to Facility and Vehicle Service • The Clorox Total 360 Electrostatic system covers up to 18,000 sqft per hour. • Used nightly in the terminal. • Also available by request. • Tenant office spaces, including TSA. • The Protexus Handheld Sprayer uses a touchless electrostatic spray that “wraps around” surfaces and objects in 360°. • Provides three times more coverage in the same amount of time than spray bottles, buckets, and rags. • Ideal for vehicles and small treatment areas. 21 The Commission’s Financial Picture • FY21 Operating Revenue Plan: $43.8 million. • Original FY20 Operating Revenue Plan: $52.6 million. • FY21 Operating Expense Plan: $25.5 million. • Original FY20 Operating Expense Plan: $28.1 million. • Revenues and expenses are being closely monitored across the board. • The Commission’s Plan of Finance was recently updated. • First draw of federal CARES Act relief funding, $4.4 million, received this month. 22 RIC Welcomes Our Newest Arrival: Amazon Air Richmond Gateway Operations Starting with Twice-Daily, Seven Days/Week Service 23 RIC Has Taken Extraordinary Steps to Support Your Next Trip Questions? 24 We move people, business, and commerce to advance the Richmond region..