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THE COMMUNITY OF BUSINESSTM

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BUSINESS AN ERNANDO ALLEY JOURNAL SLOS ANGELES • GLENDALEF • SANTA CLARITA VALLEY • BURBANK • CONEJO VALLEY • SIMI VALLEY V• SAN FERNANDO • CALABASAS • AGOURA HILLS • ANTELOPE VALLEY

THE COMMUNITY OF BUSINESSTM

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Supplement to the San Diego Business Journal Page A2 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A3 San Diego International Airport

Photo courtesy of San Diego International Airport

INTRODUCTION tion. The goal is to continue to meet “Aviation is a part of San Diego’s the region’s growing passenger de- As National Aviation History DNA and history. The airport is the mands through at least 2035. Month, November is a time for re- membering the great achievements centerpiece.” Reaching capacity will constrain of manned ight. No aviation story Thella F. Bowens, president and CEO of the San Diego growth but it doesn’t mean the air- would be complete without a discus- County Regional Airport Authority port will close. Jerry Sanders, pres- sion of the dreams that took wing at ident & CEO of the San Diego Re- the San Diego International Airport single-runway commercial airport in • Sent commercial carriers to 61 gional Chamber of Commerce and (SAN). the U.S. and home to the world’s rst nonstop destinations. San Diego’s former mayor, says the “You can’t have an aviation month airport likely will continue operating LEED Platinum certi ed commercial • Transported 172,160 tons of cargo without celebrating San Diego’s role,” airport terminal. and mail. for many years beyond 2035, thanks said Thella F. Bowens, president and Operated by the Airport Authority, to careful planning. CEO of the San Diego County Re- Bowens places the airport’s annual in 2014 the airport: Sanders said the Airport Authori- gional Airport Authority. “Aviation is economic impact on the region at $9 • Supported an average of 525 ty is making use “of every single inch a part of San Diego’s DNA and histo- billion. Faced with land constraints, operations daily. ry. The airport is the centerpiece.” the Airport Authority is moving for- they have.” Charles Lindbergh and other • Served just under 18.8 million ward with a series of improvements early pioneers of ight in San Diego passengers, a new record. to maximize e ciencies, said Keith couldn’t have envisioned the modern • Was served by 24 passenger Wilschetz, the Airport Authority’s facility that has become the busiest carriers and ve cargo carriers. director of planning and noise mitiga-

Continued on page A4 Page A4 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A3 The Early Days

AVIATION PIONEERS Transatlantic ight soloist Charles Lindbergh wasn’t the region’s rst renowned pilot. In the 1880s John J. Montgomery, a native of Yuba City, made manned ights using gliders on Otay Mesa. He transformed his family farm into an aeronautical laborato- ry, building models of the xed-wing gliders he later developed into full- size airplanes. Montgomery lost his Photo courtesy of the San Diego Air & Space Museum life in a glider crash in 1911. In January 1925 the chamber Another local aviation pioneer committee called for an airport to was Glenn Hammond Curtiss, who be built adjacent to and south of the brought his dream of ight to North Marine base and the proposal became Island. In 1907 he was one of just part of the city’s master plan. The city seven Americans who had own a settled on a tidelands area north of powered aircraft. He came to San Laurel Street. Diego in 1910 and created the rst successful seaplane ight in 1911. The goal was to have Photo courtesy San Diego Air & Space Museum Curtiss demonstrated to the U.S. 1928 dedication ceremony of Lindbergh Field. Navy the importance and versatility an airport that could airport rating in the nation on of aircraft on Feb. 17, 1911 when accommodate seaplanes Feb. 10, 1928. Following construction, he took o from the cruiser USS the rst airplane landed at San Pennsylvania and landed safely on near the downtown Diego Municipal Airport-Lindbergh San Diego Bay. He later established business district. Field, on Aug. 15, 1928. A dedication an aviation school on North Island. ceremony took place the following day. ESTABLISHING AN AIRPORT Many who saw their future in aviation came to San Diego, attracted by its year-round good ying weather. North Island’s Rockwell Field was

Many who saw their EARLY DAYS OF COMMERCIAL AVIATION future in aviation came In the early days of ight, one to San Diego, attracted of the key roles for airplanes was Photo courtesy of the San Diego Air & Space Museum by its year-round good delivering mail. On May 15, 1918, In August 1924 the Chamber of the rst air mail route in the U.S. was Commerce’s aviation committee called ying weather. established between New York City on the city to build a facility to accom- and Washington, D.C., with a stop at modate airmail operations, commercial Philadelphia. The airmail service was Lindbergh agreed to lend his name ights, and aerial tourism. The goal was started with the cooperation of the to a San Diego airport. On June 13, to have an airport that could accommo- War Department, which furnished 1927, the San Diego City Council date seaplanes near the downtown busi- pilots and aircraft for the Post O ce authorized a bond issue of $650,000. ness district. The Marine Corps, which Department. The U.S. Department of Commerce had a base on nearby Dutch Flats, also Photo courtesy of the San Diego Air & Space Museum The cooperation of the War awarded San Diego the rst AAA Charles Lindbergh. was pushing for an airport. Continued on page A5

Douglas DC-3

Known for its versatility, rugged reliability travel industry by cutting typical and economy, the DC-3 took its rst ight on coast-to-coast ight time across the December 17, 1936, 607 planes were produced up U.S. from 25 hours to just 17. to 1950. A “tail dragger,” the DC-3 has rugged Considered perhaps the most important landing gear with big struts that can touch down Almost 80 years after its international airliner in history, the DC-3 was safely on any type of runway. introduction, a few hundred DC-3s and is still used in every imaginable role from Early U.S. airlines ordered over 400 DC-3s, are estimated to still be ying worldwide. passenger, to freight, to troop transport, to glider paving the way for the modern American air- Called the “Gooney Bird,” the DC-3 is the tug, to skydiver shuttle, to ambulance. travel industry, quickly replacing trains as the plane of choice for the likes of James Bond and With two powerful propeller engines, at a favored means of long-distance travel across Indiana Jones. Pilots say the DC-3 is as near as cruising speed of 207 mph, it revolutionized the the U.S. humans will get to growing wings.

Sources: Wikipedia; www.boeing.com; The Lore of Flight, Time-Life Books, 1970; Carl Stattin, retired captain, American Airlines Photo: copyright © Boeing November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A5 Continued from page A4

Photo courtesy of the San Diego Air & Space Museum Ryan Aeronautical Company was one of several aircraft manufacturers at San Diego’s airport.

viability of the aviation industry. On training civilians as well as Army Air President Calvin Coolidge changed the course of June 1, 1930, a San Diego-Los Angeles Corps cadets. airmail route began. His company became Ryan aviation on Feb. 2, 1925 when he signed the Airlines Inc. when it was reorganized Kelly Act into law. This transferred responsibility of MAKING HISTORY: transporting mail from the Post O ce RYAN AIRCRAFT to private contractors. T. Claude Ryan established the Ryan Flying School in September 1922 near the Santa Fe Depot train Department was maintained until the course of aviation on Feb. 2, 1925 station. He used his rst airplane, August 12, 1918, when the Post O ce when he signed the Kelly Act into a surplus Army Curtiss JN-4, to took over the entire operation of the law. This transferred responsibility of carry passengers, o er sightseeing Photo courtesy of the San Diego Air & Space Museum route, furnishing its own equipment transporting mail from the Post O ce trips, and teach ying. He ran Ryan Air Building. and personnel. to private contractors. Private carriers one of the rst government- Continued on page A7 President Calvin Coolidge changed increased the visibility and commercial approved ying schools,

Lockheed Constellation (Connie)

The Constellation, or “Connie,” is a four- the rst pressurized airliner in widespread use, engine, propeller airliner built by Lockheed Corp. the Connie helped to usher in a ordable and from 1943 to1958. comfortable air travel. At higher altitudes with Lockheed built 856 in numerous models, all pressurization, it ew 375 mph, faster than a with the same triple-tail design and dolphin- Japanese Zero ghter, at an altitude of 24,000 ft., shaped fuselage. decreasing en-route ight time. Allied Powers Europe Built at the request of Howard Hughes, the TWA started transatlantic service in February (SHAPE) commander in the 1950s be- Connie was a 62–95 passenger transcontinental 1946 and in June 1947 Pan Am launched the rst- fore he became president and others as Air Force airliner with a range of 3,500 miles. Its features ever scheduled, round-the-world service with One while he was president. included hydraulically boosted controls and a de- their “Clipper America.” The advent of jet airlines rendered the piston- icing system on wing and tail leading edges. As Dwight D. Eisenhower used three Constella- engined Constellation obsolete but it continued to tions during his role as Supreme Headquarters y domestic routes and later carried freight. Sources: Wikipedia; historynet.com; The Lore of Flight, Time-Life Books, 1970; Carl Stattin, retired captain, American Airlines Photo courtesy of Lockheed Martin Page A6 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015

Celebrating NATIONAL AVIATION HISTORY MONTH and the San Diego International Airport Where Dreams Become Reality

sandiego.org November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A7 Continued from page A5 In 1969, Ryan’s company was sold and became known as Teledyne-Ryan Aeronautical Co.

Ryan helped lay the groundwork for the San Diego aviation industry to succeed during the Great Depression. The city became known as the “Air Capital of the West” throughout the remainder of the 20th century.

LINDBERGH’S HISTORIC FLIGHT The future of the aviation industry Photo courtesy of the San Diego Air & Space Museum First landing on Lindbergh Field , August 18,1928. was uncertain following World War I. Because manufacturers had poor in 1924 to begin operating the rst safety records, airline companies had year-round, scheduled airline service di culty obtaining liability insurance. in the U.S. from Dutch Flats Air eld. The Air Commerce Act of 1926 Around the same time, Ryan began provided a regulatory framework for manufacturing airplanes with partner the industry, establishing guidelines Frank Mahoney. for the design and operation of airports. It also required the licensing A version of the Ryan of aircraft and pilots. M-2 mail plane that was modi ed to hold more fuel later became the Spirit of St. Louis, Photo courtesy of the San Diego Air & Space Museum the aircraft that Ryan Airlines manufacturing building located on the southeastern edge of Lindbergh Field. Lindbergh ew across established the Ryan Aeronautical At its peak of operation during the Atlantic. Corporation, building and selling World War II, the Ryan plant Photo courtesy of the San Diego Air & Space Museum aircraft engines. employed 8,500 workers and had an The industry got a boost when The rm changed its name to annual production valued at more The pair created the Ryan M-1 the Ryan Aeronautical Co. in 1934. than $55 million. The company airmail pilot and reserve Army Monoplane airmail carrier. A version Ryan Aeronautical signed a 50-year reprised its military contributions Captain Charles Lindbergh arrived in of the Ryan M-2 mail plane that lease, starting in 1939, on land at during the Korean War. San Diego by train to visit the Ryan was modi ed to hold more fuel later the southeastern edge of Lindbergh Ryan helped lay the groundwork aircraft factory. He was impressed became the Spirit of St. Louis, the Field, along North Harbor Drive. The for the San Diego aviation industry to with the Ryan M-1’s safety record aircraft that Lindbergh ew across Ryan plant was one of several aircraft succeed during the Great Depression. and came to purchase an aircraft for the Atlantic. manufacturers at San Diego’s airport The city became known as the his historic solo ight from New York Lindbergh’s success made Ryan that contributed to World “Air Capital of the West” to Paris. and Mahoney famous. Ryan sold the War II aircraft production in throughout the remainder company to Mahoney in 1926 and the 1940s. of the 20th century. Continued on page A8

Boeing 707

In its rst year of service with Pan Am, the narrow-bodied, four-engine jet sleek Boeing 707 changed the way we y and see airliner. Versions of the aircraft the world. have a capacity of 140 to 219 passengers Hugely popular in its heyday, the Frank Sinatra so admired the 707 that and a range of 2,500 to 5,750 slogan went: “If it ain’t Boeing, he bought one for himself, which was later nautical miles. I’m not going.” Its popularity led purchased by John Travolta. With a swept- to rapid developments in airport terminals, Synonymous with the new jet age, the 707 wing design runways, airline catering, baggage handling, had a design that led to the Boeing 747 Jum- with podded engines, it was the rst jetliner to reservations system and other air transport bo Jet and the era of mass air travel. Powered be commercially successful, establishing Boeing infrastructure. by Pratt & Whitney JT3C turbojet engines, as one of the largest manufacturers of passenger the Boeing 707 is a midsized, long-range, aircraft.

Sources: Wikipedia; www.bbc.com; The Lore of Flight, Time-Life Books, 1970; Carl Stattin, retired captain, American Airlines Photo: copyright © Boeing Page A8 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A7 The idea was to create an aircraft with a durable engine that could hold enough fuel to make the Atlantic crossing. A Wright J-5-C Whirlwind engine was chosen for the task and the Ryan-Mahoney team completed their work in 60 days.

Lindbergh took o from San Diego on May 10, 1927. He traveled to St. Louis, then to New York’s Long Island. From there he ew nonstop to Paris.

The San Diego International Airport traces its historical roots to the Dutch Flats airstrip in what’s now known as the Midway district. It’s here that Lindbergh tested his aircraft, dubbed the Spirit of St. Louis. Photo courtesy of the San Diego Air & Space Museum Today, visitors to San Diego In- San Diego Corps of Engineers expands the Lindbergh Airport to accommodate large bombers in 1942. ternational Airport’s Terminal 2 baggage area can see a full-scale repro- CONSOLIDATED duction of the Spirit of St. Louis. AIRCRAFT COMPANY Lindbergh took o from San Diego on May 10, 1927. He traveled San Diego’s reputation as a center to St. Louis, then to New York’s Long for aircraft manufacturing continued Island. From there he ew nonstop to to grow after Lindbergh’s ight. Paris. In 1934 Reuben H. Fleet decided to relocate his Consolidated Aircraft Co. to San Diego from Bu alo, New York. An aviation pioneer who learned to y at North Island Naval Air Station in 1917, Fleet made the move after being assured that the San Diego City Council would lease him a factory site for just $1 per year. The plant opened in 1935 on Paci c Highway and soon became the city’s largest civilian employer.

In 1934 Reuben H. Fleet decided to relocate his Consolidated Aircraft Company to San Diego Photo courtesy of the San Diego Air & Space Museum Photo courtesy of the San Diego Air & Space Museum Administration building at Lindbergh Field. Ground-breaking ceremony. from Bu alo, New York. Continued on page A10

Boeing 737

The Boeing 737 is a short-to-medium-range airlines, ying to 1,200 twinjet, narrow-body airliner that developed destinations in 190 countries. into a family of 10 passenger models with a With more than 10,000 aircraft capacity of 85 to 215 passengers. ordered, more than 7,000 delivered Originally envisioned in 1964, the initial and more than 4,500 still in service, 737-100 made its rst ight in April 1967 and at any given time there are 1,250 airborne accumulated entered airline service in February 1968 with worldwide. In 2006 on average, somewhere more than 296 million Lufthansa. in the world, a 737 took o or landed every hours in the air. The 737 It has been the most widely sold and ve seconds. represents more than 24 commonly own airliner family since its Since entering service in 1968, the 737 percent of the worldwide eet of introduction. has carried more than 12 billion passengers large commercial jet liners. Southwest The 737 is operated by more than 500 more than 65 billion nautical miles, and has Airlines uses exclusively Boeing 737s.

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donovanssteakhouse.com | Reservations 877-698-6666 | Events email: [email protected] Page A10 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A8 World War II to the Jet Age

Photo courtesy of the San Diego Air & Space Museum Convair, R3Y-1, “Tradewind,” and crew. WARTIME GROWTH U.S. Army Air Corps took charge in 1942, and engineers improved With the arrival of World War the airport to accommodate large II, San Diego’s population soared. At bombers that were manufactured the war’s peak, 1,500 families were at local factories. The local defense moving to the city every week. industry operated 24 hours a day. The military transformed San New facilities were added to house Diego’s municipal airport into a and repair military aircraft in 1944. modern transportation facility. The By using dredged ll, engineers The military transformed San Diego’s municipal airport into a modern transportation facility. The U.S. Army Air Corps took charge in 1942, and engineers improved the airport to accommodate large bombers that were

manufactured at local factories. Photo courtesy of the San Diego Air & Space Museum Continued on page A11

Boeing 777

The Boeing 777 is a family of long- range, wide-body, twin-engine jet airliners. The world’s largest twinjet, it has a seating capacity for 314 to 451 passengers and minimal customer input. wide-body airliner, and was Boeing’s most a range of 5,235 to 8,555 nautical miles. The rst commercial aircraft designed lucrative model in the 2000s. Referred to as the “Triple Seven,” it was entirely by computer, it allowed engineers The rst commercial ight took place developed in consultation with eight major to assemble a virtual aircraft, in simulation, on June 7, 1995, from London’s Heathrow airlines that contributed to the design process, to check for interference and verify that the Airport to Dulles International Airport near known as the “Working Together” group. This thousands of parts t properly—thus reducing Washington, D.C. was a departure from industry practice, where costly rework. manufacturers typically designed aircraft with It has received more orders than any other

Sources: Wikipedia; www.boeing.com; Carl Stattin, retired captain, American Airlines Photo: copyright © Boeing November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A11 Continued from page A10

Photo courtesy of the San Diego Air & Space Museum Photo courtesy of the San Diego Air & Space Museum Pacific Southwest Airlines was headquartered in San Diego. added 450 acres to the airport. London has an economic impact of One of the key roles for the airport The recent introduction of about $50 million each year. during the war was serving as a repair Joe Terzi, president and CEO of the facility for Pacific Fleet aircraft and international jetliners that can land San Diego Tourism Authority, said the advanced flight training. The airport and takeoff on shorter runways recent introduction of international was also the departure point for thou- jetliners that can land and takeoff on sands of locally built military aircraft. (such as the Boeing 787 Dreamliner) shorter runways (such as the Boeing In 1943 the merger of Con- promises to bring more such 787 Dreamliner) promises to bring solidated Aircraft Co. and Vultee more such flights to San Diego. These Aircraft Co. (Convair) created the flights to San Diego. aircraft will make San Diego more largest aircraft manufacturing com- Joe Terzi, president and CEO of the San Diego Tourism Authority competitive with Los Angeles and San pany in the U.S. Francisco, he added. world’s friendliest airline.” The Because the city isn’t an airline hub, THE POST-WAR YEARS founder was Kenneth Friedkin, passengers are not just passing THE 1960s - who had begun flying during the through, he said. San Diego is their DAWN OF THE JET AGE When World War II ended, it left Depression. He was president of PSA destination. behind a much larger airport. An until his death in 1962. Today the airport brings in “about In 1961 the terminal underwent an extended 8,750-foot runway prepared On May 11, 1952 a new $9 billion annually in economic im- 8,000-square-foot expansion to mod- the airport for the Jet Age even before administration building was dedicated pact to the region’s economy,” said ernize the baggage facility and create airlines began offering jet service. and a new terminal replaced the Thella F. Bowens, president and CEO office space for additional airlines. Three major airlines — American, original structure on Pacific Highway. of the San Diego County Region- In 1962 the San Diego Unified Port Western and United — served Five scheduled airlines provided al Airport Authority. “Visitors who District became the airport’s operator, the airport in 1946, scheduling 70 flights and carried about 1,000 come to San Diego by air spend about succeeding the Harbor Department. 26 daily flights. The main airport passengers each day. Nonscheduled $2.3 billion each year in this region. The airport received official designa- buildings were at the northeast carriers provided an additional Each domestic flight brings in an tion as an International Airport Port end of the air field. That year, the 994 flights carrying about 20,000 average of $19,200 into this region. of Entry. Harbor Department Commission passengers annually. Each international flight brings in To accommodate growth, the ter- authorized plans for a $500,000 around $89,300.” Mark Cafferty, pres- minal was relocated to the Harbor new administration building on the A TOURIST DESTINATION ident & CEO of San Diego Regional Drive side of the airfield. A bond is- southwest side. Economic Development Corp. said sue in 1964 provided funds for a new San Diego had been a popular nonstop international flights are very terminal that was completed in March U.S. tourist destination ever since the beneficial to San Diego. British Air- 1967. It was dedicated by Gov. Ronald When World War II community staged a 1915 exposition Reagan. ways’ direct flight to San Diego from Continued on page A13 ended, it left behind a at Balboa Park to celebrate the completion of the Panama Canal. much larger airport. In the 1950s an increasing number An extended 8,750-foot of scheduled flights made it easier for tourists to visit the city. The runway prepared the great climate, scenic beaches, and airport for the the strategic location between Los Angeles and the U.S.-Mexico border, Jet Age even before made the city a popular vacation spot. airlines began offering In the early 1960s passenger travel increased. Airlines offered additional jet service. domestic and international business travel. They also began offering In 1949, Pacific Southwest Airlines packaged holiday tours. (PSA) made its debut in San Diego, Today, the impact of the airport on operating until 1988. Headquartered tourism is huge, said Jerry Sanders, here, it was the first large discount president & CEO of the San Diego Photo courtesy of the San Diego Air & Space Museum airline in the U.S., calling itself “the Regional Chamber of Commerce. 1967 dedication by Gov. Ronald Reagan. Page A12 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A13 Continued from page A11 Years of Expansion: 1970-2000

Photo courtesy of San Diego International Airport

1970s BRING GROWTH There also were modi cations made to International Airport changed often As jetliners grew larger, the main aviation, ground transportation, and in the 1980s. As rising fuel costs cut runway had to be expanded. By 1981 As the 1970s began, San Diego was pedestrian tra c ow. into airline pro ts, commuter airlines it incorporated a 700-foot concrete ex- California’s second largest city. Its in- As the 1970s began, major airlines became more important. Four began tension and a 300-foot asphalt overrun, ternational airport served a growing serving the airport included American, operating, along with nine scheduled providing a total length of 9,400 feet. region of nearly 1.4 million people. Delta, Hughes AirWest, National Air- carriers. Passenger tra c rose by 98 percent In 1990 a second oor addition over lines, PSA, Western, and United. As the East Terminal’s West Rotunda between 1970 and 1979. There also the decade drew to a close, service was were huge gains in air freight, air ex- MORE CHANGES IN was built at a cost of $10.5 million. In added by Republic and TWA. There press, and airmail. THE 1980s AND 1990s 1997 the East Terminal was renamed was a merger between Pan American Terminal 1. and National Airlines. Air Bahia and Between 1981 and 1983 several By 1991 the West Terminal’s Passenger tra c rose Air California were regional carriers. new carriers joined the airport line- 217,000 square feet of oor space and As a result, nine major airlines and 10 up: Southwest, Frontier, Northwest, by 98 percent between 12 passenger boarding gates were “feeder” airlines utilized the airport by Ozark Airlines, Northeastern, USAir, no longer adequate for expanding 1970 and 1979. There the decade’s end. and Eastern Airlines. At the close of airport use. It was remodeled in also were huge gains in Despite the growth overall opera- 1983, the airport had 13 major and tions slowed, with fewer take-o s and three commuter carriers. 1997 and renamed Terminal 2. The air freight, air express, landings in 1979 than 1970. Civilian Air operations gradually increased. project included a 300,000-square- foot, eight-gate expansion and major and airmail. aircraft had begun relocating to near- They rose from 148,691 ights in 1980 by general aviation airports, such as to 207,388 at the end of 1989. road improvements. Montgomery Field. Also, the military The airport’s passenger tra c, The Commuter Terminal for In 1975 the airport added the West and manufacturers cut back on their which exceeded 5.1 million in 1980, smaller airlines opened in 1996 in the Terminal to accommodate wide-bod- use of airport facilities. increased to about 11.1 million by the former headquarters and maintenance ied jets. The East Terminal required Deregulation of the airlines in 1978 end of the decade. Airfreight tonnage facility of PSA. A new control tower improvements to accommodate pas- caused the industry to contract and rose from nearly 18,000 to more than was dedicated on Dec. 16, 1997. senger growth due to larger aircraft. carriers at San Diego 45,000 tons. Continued on page A14

Boeing 787

The Boeing 787 “Dreamliner” is a long-range, midsize, wide-body, twin- engine jet airliner with seating for 242 to 335. It’s a pioneer in using composite materials as The 787’s cabin windows are larger than any Angeles to Bangkok or New York City to the primary material of its airframe, which other airplane in service, and at a higher eye helps to make it a lighter and more fuel- Hong Kong. Its cruising airspeed is 561 mph level. “Smart glass” allows the ight attendants at typical altitudes. e cient aircraft. and passengers to adjust levels of sunlight and A survey of 800 passengers who ew the 787 On October 26, 2011, the 787 ew its visibility to their liking, reducing cabin glare rst commercial ight from Tokyo to Hong from Tokyo to Frankfurt said their expectations while maintaining a view to the outside world. were met or exceeded for air quality and cabin Kong on All Nippon Airways. Tickets for that The longest-range 787 can y 8,000 to ight were sold at auction. The highest bidder pressure, cabin ambiance, cabin humidity levels, 8,500 nautical miles, the distance from Los headroom and the larger-than-usual windows. had paid $34,000 for a seat.

Sources: Wikipedia; www.boeing.com; Carl Stattin, retired captain, American Airlines; Dave Sterling, captain United Airlines Photo: copyright © Boeing Page A14 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A13 2001 - 2015: Turbulence, Triumph and Takeoff

Photo courtesy of San Diego International Airport

CREATING THE SAN DIEGO essential to the economic well-being “When we look to future air travel of the region. COUNTY REGIONAL AIRPORT Opponents said the Marine base’s AUTHORITY needs, the Airport Authority works importance to national security and Operation of the airport was closely with other agencies and the difficulty of putting military transferred from the San Diego stakeholders to ensure that there is a aircraft and commercial jets in Unified Port District to the San the same airspace made the plan Diego County Regional Airport truly integrated airport system.” impractical. They also raised concerns Authority on Jan. 1, 2003. The Robert. H. Gleason, the authority board chair about increased noise for neighboring Airport Authority was charged with residents and businesses. three main responsibilities: On Nov. 7, 2006, the measure was • Opera ting San Diego International cause the airport is self-funded, each Regional Airport Authority spon- rejected by the voters. San Diego Airport project must be carefully planned. sored Proposition A, a ballot measure International Airport would not be Keith Wilschetz, the airport’s di- that sought to move the airport to relocating in the foreseeable future. • Planning for the future air rector of planning and noise miti- the site of Marine Corps Air Station transportation needs of the region gation, said airport capital funding Miramar. The proposal was the result THE GREEN BUILD AT • Serving as the region’s Airport comes from several sources, including of a comprehensive four-year study of Land Use Commission, ensuring general operating funds, concessions, every possible site in and around San TERMINAL 2 there are plans that protect public landing fees from airlines, and park- Diego and Imperial counties. health and safety surrounding the ing revenues. After considering 32 options, the county’s 16 airports. “We don’t take local tax dollars,” The Airport Authority today is Wilschetz explained. “The only overseen by an appointed board of funding that comes close to taxes are Land constraints nine members who represent all ar- some FAA grants. Other than that we have posed challenges eas of the county and three ex-officio are self-funded.” members. Three members serve as in recent decades as the Executive Committee. Manage- PROPOSITION A: THE VOTE ON operators have struggled ment oversight is the responsibility of President and CEO Thella F. Bowens. RELOCATING THE AIRPORT to meet the needs of Sanders said creating the Airport When the airport opened, no one Photo courtesy of San Diego International Airport Authority increased input into air- envisioned the urban growth that larger aircraft and port operations from all segments of eventually would surround it. Land additional flights. Today Committed to the existing airport, San Diego County. constraints have posed challenges in the airport operates with the Airport Authority revived and “It brings in a wider perspective,” recent decades in meeting the needs of updated an earlier master plan. The he said. “You’ve also got representa- larger aircraft and additional flights. only one runway. Green Build Terminal 2 expansion was tives who understand business and Today the airport operates with only the largest improvement project in the understand the airport.” one runway. airport’s history. Its goal was to help Understanding business means “We can operate successfully with San Diego County Regional Airport meet the airport’s demands for travel, knowing how to generate the revenue our single runway because our winds Authority concluded that Miramar while improving customer service and needed to pay for ongoing improve- are so predictable. We don’t need a was the most suitable alternative. stimulating the region’s economy. ments. The Airport Authority is the crosswind runway,” said Wilschetz. Proponents of the ballot measure The $1 billion project was financial steward of the airport. Be- In 2006, the San Diego County held that a two-runway location was Continued on page A15 November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A15 Continued from page A14

Photo courtesy of San Diego International Airport

(LEED) Platinum certification from “It is a spectacular facility,” Sanders the U.S. Green Building Council. More improvements are on the said of Terminal 2. “It is just a fun drawing board. place to be. That is what airports are Wilschetz said work on a 3,000- space parking plaza at Terminal 2 moving to. They become more than will begin in late spring of 2016. airports, they become destinations.” Construction is expected to last about Jerry Sande CEO of the 18 months. San Diego Regional Chamber of Commerce NORTH SIDE IMPROVEMENTS businesses have begun holding events said of Terminal 2. “It is just a fun In the fall of 2013 the Airport place to be. That is what airports are at Terminal 2 restaurants. Photo courtesy of San Diego International Airport Authority began construction on a moving to. They become more than “The upgrading of the airport and completed on time and under budget. $39 million fixed-base operator (FBO) airports, they become destinations.” the restaurant choices have created a It opened on Aug. 13, 2013. At its facility for general-aviation services Mark Cafferty, president and CEO different vibe,” he said. peak, the project had about 1,000 of San Diego Regional Economic The project received Leadership in construction workers at the site. The project received Development Corporation, said Energy and Environmental Design In all, it generated some 6,000 jobs. Leadership in Energy About $415 million in construction contracts went to local businesses. and Environmental Sanders said the project’s impact Design (LEED) on the local economy was “absolutely incredible.” Platinum certification Robert H. Gleason, chair of the from the U.S. Green Airport Authority board, said the project was the Airport Authority’s Building Council. More greatest achievement since it was improvements are on the formed in 2003. drawing board.

The $1 billion project on the north side of the airport and a was completed on time $316 million rental car center. The FBO now provides hangars, and under budget. fueling and other services. Landmark Aviation was contracted to build and “Ultimately, what we were ex- operate the facility, with a 20,000-s tremely proud of was delivering a quare-foot terminal, a 250,000-square project of this size and scope that was foot ramp, and five hangars on 12.4 on time and about $50 million under acres. The Airport Authority in 2012 budget,” he said. awarded Landmark a 37-year lease to operate the FBO. “It is a spectacular facility,” Sanders Photo courtesy of San Diego International Airport Continued on page A16 Page A16 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A15 The FBO was required to achieve a minimum of LEED Silver certification from the U.S. Green Building Council. Landmark committed to achieve LEED Platinum certification, the highest possible rating. The partnership between the airport and Landmark represented a new method of financing new projects at the airport. The FBO was the first project at San Diego International Airport financed by an outside party. The facility built was to replace an FBO on Pacific Highway, which Landmark had operated since acquir- ing Jimsair Aviation Services Inc. in 2008. The new FBO was completed in mid-2014. The nearby rental car center on the airport’s north side will house many of the rental car companies serving the airport in a single building. It is financed primarily with customer facility charges, said Wilschetz, and is expected to open in January 2016. The purpose of the rental car center is to improve customer service for people renting cars, reduce airport traffic congestion, and bring airport passengers closer to Interstate 5 and rail. The facility also was designed to help improve air quality by removing multiple shuttle vans from the streets. The project is in keeping with the Airport Authority’s goal of using the Photo courtesy of San Diego International Airport airport’s constrained space efficiently, Rental car center. and making sure that new additions construction; deploying a solar- are “green” and environmentally The purpose of the rental car center is to powered hot water system; and using sustainable. reduce airport traffic congestion and trucks fueled with biodiesel created Car rental agencies are now spread from recycled cooking oil. along Pacific Highway and Harbor bring airport passengers closer to Interstate 5 Prior to construction, trucks had to Drive, each providing its own shuttle and rail. The facility also was designed to help haul all food and goods for concessions services. to the front of the airport terminals. Moving the rental car companies improve air quality by removing multiple Several north side roadway to the north side of the airport and shuttle vans from the streets. projects also will improve airport consolidating them into one building access. These include the widening will reduce rental car traffic on of Sassafras Street north of Pacific Harbor Drive, as well as the number “Harbor Drive will be much easier received LEED Gold certification of shuttle buses competing with to navigate” said Sanders. from the U.S. Green Building Council Highway, and a new terminal link passengers getting to and from the Also on the north side of the for its sustainable service. roadway that will allow for rental airport. airport, a receiving and distribution Officials said the facility was car and parking shuttle buses to stay Eighty shuttle buses that are pri- center opened in December 2012, recognized for such features as on airport land to travel between vately operated will be replaced with providing a central delivery location reducing daily delivery truck traffic the north and south sides. This will 16 that are operated by the airport, for food, beverages, retail, and other on Harbor Drive by 50 to 75 trips; remove traffic from Laurel Street and said Wilschetz. goods. In early 2013 the facility using recycled materials during North Harbor Drive. Continued on page A17

PROJECT HIGHLIGHTS INCLUDE:

10 new gates to reduce Enhanced curbside A dual-level roadway More security lanes to The largest airport An expanded terminal congestion check-in procedures, to relieve curb-front improve flow of pas- USO Center in the U.S. concession area and provide more allowing passengers to traffic congestion by sengers through the providing more dining waiting areas print boarding passes, separating arriving and terminal and shopping options check baggage, and departing passengers view gate information at a curbside kiosk before entering the terminal Photos courtesy of San Diego International Airport November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A17 Continued from page A16 FINANCING THE FUTURE OF SAN DIEGO INTERNATIONAL AIRPORT

San Diego International Airport – like all U.S. airports – is have not kept pace with the rising costs of construction. required by the federal government to be as self-sustaining These fees were last adjusted in 2000, when they were as possible. It can’t rely on tax dollars to sustain its operations capped by the federal government at $4.50 per passenger. or fund its improvements. A poll found that 58 percent of airline passengers are willing One problem airports face is they continually must to pay up to $4 more per ight “to fund airport improvements be maintained and improved, even though the costs of projects that would enable airports to accommodate more construction have soared far beyond current sources of airlines, modernize facilities or reduce delays in and around revenue. Because of this, many airports in the U.S. are no the airport.” longer keeping up with the need to build new infrastructure. San Diego International Airport’s planners now are According to “U.S. Airports in Crisis,” a May 2015 U.S. identifying improvements needed to enable the one-runway, House of Representatives staff report, unless additional 661-acre facility to continue meeting passenger demands resources are provided, America’s airport infrastructure will through 2035 to 2040, when projected activity levels will continue to fall behind passenger service needs and lag reach capacity. Planned improvements are estimated to cost behind global competition. in excess of $2 billion, which includes, the much-needed Funding sources for airport infrastructure development replacement of Terminal 1. have decreased greatly since 2007, according to the Airport leadership is developing a nance plan that congressional report. Since then, the federal government has considers all options to fund these improvements. One fact decreased the amount authorized for Airport Improvement is becoming crystal clear – existing revenues will not be Program (AIP) nancing by nearly $100 million per year. The suf cient. New sources and/or increases will be needed to AIP provides grants to public agencies and private owners to fund a $2 billion-plus undertaking. improve public-use airports. San Diego International Airport is a leading driver of Options to fund construction projects include using the regional economy with an annual nancial impact federal grants, bonds, and state and local grants. However, approaching $10 billion. Maintaining and enhancing this one critical cornerstone of airport revenues in the U.S. is important economic engine is a key regional priority. Region- passenger facility charges (PFCs). wide support for ongoing airport improvements and the PFCs are a local fee-per-ticket collected by airlines funding to bring them to fruition is essential to insure the on behalf of airports. According to the Airports Council future operational ef ciency of the airport. International, PFCs have paid for more than $35 billion in Businesses and people of the region are connected to airport developments since their inception in 1990. an increasingly global community. A 21st century airport is One solution to the funding problem is raising PFCs, which critical. San Diegans deserve nothing less.

Photo courtesy of San Diego International Airport

Continued on page A18 Page A18 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A17 Tomorrow and Beyond

Photo courtesy of San Diego International Airport REBUILDING SAN: THE AIRPORT The Airport Development Plan (ADP) will REPLACING TERMINAL 1 DEVELOPMENT PLAN The biggest project ahead of identify improvements that will enable the The Airport Development Plan the airport is replacing Terminal 1, (ADP) will identify improvements 661-acre airport to continue meeting passenger which was built in 1967. The goal is that will enable the 661-acre airport to to make more efficient use of space. continue meeting passenger demand demand through 2035 to 2040, when projected The cul-de-sac configuration of gates through 2035 to 2040, when projected activity levels will reach capacity for the at Terminal 1 doesn’t work well for activity levels will reach capacity for maneuvering large commercial jets. the airport’s single runway. airport’s single runway. “We are half way through the plan- Wilschetz said it’s impossible to ning and environmental process. We predict exactly when the airport will still have to finalize the financing plan. reach its capacity. Airport growth There are a lot of unknowns between depends, in part, on a healthy economy. now and when we begin construction, “As we have seen in the last eight but we may see construction begin in years, the economy doesn’t always five to seven years,” said Wilschetz. follow our forecasts,” he said. Airport officials are considering Having an airport in the heart of five alternative plans for the replace- the city, with little room for expansion, ment of Terminal 1. Estimates, which may seem like a problem, but in have not been finalized, place the cost many ways it has been “a tremendous at more than $2 billion. Officials hope advantage” said Jerry Sanders . to identify a preferred concept in “For business travel, if you are November 2015. working downtown it’s quick to get After a preferred alternative is in and out,” he said of the airport. “A identified, a detailed environmental lot of airports are 30 minutes out of analysis will be conducted. The town.” environmental review and planning The airport’s current location process is expected to conclude in allows it to function as a gateway to spring 2017. the city, he added. “It’s spectacular when you land and you see the skyline and the bay.” Robert H. Gleason, chair of the Airport Authority board, agrees. “The airport is a very important part of the community,” he said. “It’s the very first thing people see when they arrive in San Diego.” Photo courtesy of San Diego International Airport Continued on page A20 November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A19

THE AUSTIN SUNDT TEAM IS NEARING COMPLETION OF YOUR NEW CAR RENTAL FACILITY AT SDIA – THE LARGEST ON THE WEST COAST

San Diego International Airport Rental Car Center Owner: San Diego County Regional Airport Authority Architect: Demattei Wong Architecture

The project’s on-time completion will improve travelers’ experience by providing a single, centralized car rental location. The 1.73 million square foot facility, which is pending LEED® Silver certification from the US Green Building Council, will also help improve congestion and air quality by removing multiple shuttle vans from the streets. AVIATION | CONRAC BUILDERS

join the san diego air & space museum in honoring…

THURSDAY • NOVEMBER 19, 2015

To view this year’s class of 2015 & to reserve your seat(s), Please visit; 2015 Page A20 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A18 THE FOLLOWING FIVE ALTERNATIVES ARE BEING REVIEWED: Alternative 5 – A hybrid linear terminal would replace Terminal 1. International aircraft are in a central location, and there is connectivity Alternative 1 – A linear terminal would replace Terminal 1; maintain between all existing and new gates upon completion. Phase 1 of this concept Terminal 2 East. likely can be completed faster and less expensively than Phase 1 of the other four concepts.

Alternative 2 – A new terminal with a satellite concourse would replace Terminal 1. Airplanes could transit beneath a walkway between the main terminal and the satellite. ELEMENTS COMMON TO ALL FIVE ALTERNATIVES All Terminal 1 replacement alternatives share the following design elements: • Sixty-one total gates • A dedicated on-airport roadway, parallel to N. Harbor Drive, that will take virtually all airport tra c o N. Harbor Drive greatly reducing congestion. • An expansion of Terminal 2 West of six gates. • Moving Taxiway B south and adding a new taxi lane south of that. This will increase e ciency and reduce runway crossings. • Additional overnight aircraft parking for airplanes that arrive in the evening and leave the next morning. This will be located on the east end of the airport. • Construction of a north side passenger processing center for passengers Alternative 3 – A new terminal with a courtyard concept would replace who arrive by transit via a future Intermodal Transit Center that is being Terminal 1. All international aircraft are grouped in a west concourse. planned by the San Diego Association of Governments (SANDAG). • One or two additional parking structures in front of the new Terminal 1. Extensive public outreach is underway to obtain input from residents and airport stakeholders in the San Diego region, said Wilschetz. “Understanding what the users of this airport want is very important,” he said. “When we look to future air travel needs, the Airport Authority works closely with other agencies and stakeholders to ensure that there is a truly integrated airport system,” said Robert. H. Gleason, the Airport Authority board chair. WORKING WITH THE SAN DIEGO ASSOCIATION OF GOVERNMENTS The Airport Authority and the San Diego Association of Governments Alternative 4 – A terminal with two open-air courtyards would replace (SANDAG) are working together to give the public better access to the Terminal 1, taking advantage of San Diego’s climate. International aircraft airport. are along the south sides of the concourse because they do not “turn” as fast SANDAG is working on a long-range regional project estimated at $170 as domestic aircraft. million that would establish an intermodal transportation center adjacent to the airport. Expected to be completed by 2025, the SANDAG project will accommodate platforms for the trolley, the Coaster, Amtrak and even potential future high- speed rail. While the Airport Authority is working with SANDAG, the latter is responsible for the nancing, Wilschetz said. In the near term, by early 2016 trolley passengers arriving at the Middletown station north of the airport will be able to catch an airport shuttle that uses an internal roadway. That road has been built in conjunction with the consolidated rental car center. The internal roadway should be open by Thanksgiving 2015. The Airport Authority is constructing an airport shuttle stop adjacent to the intersection of Paci c Highway and Palm Street, where shuttles will pick

Illustrations courtesy of San Diego International Airport up trolley passengers bound for airport terminals. The trolley passengers will ride the airport shuttle at no cost. SANDAG plans to make pedestrian improvements near the Middletown The Airport Authority has agreed to construct station. Proposed improvement projects include widening the sidewalk, building a wheelchair-accessible ramp, and creating a more pedestrian-friend- an airport shuttle stop adjacent to the intersection ly crosswalk across Paci c Highway. of Paci c Highway and Palm Street, where shuttles The improvements are expected to be completed by mid-2016. will pick up trolley passengers bound for airport terminals. Continued on page A22 November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A21 Page A22 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015 Continued from page A20

A BRIGHT FUTURE The airport is as much a As the Airport Authority continues to improve the airport, it is preserving part of the community’s and enhancing one of the main drivers of the San Diego region’s economy. history as Balboa Park, New passenger facilities and improved the historic Gaslamp access for vehicles are protecting the environment while creating a better Quarter, the San Diego experience for travelers. Zoo, and the region’s scenic beaches. New passenger facilities

and improved access for strong contribution to the community’s vehicles are protecting quality of life. The excitement that the pioneers of aviation felt a lifetime ago the environment while is still very much alive at the present- creating a better day airport. experience for travelers.

Because of its location near downtown and San Diego Bay, the airport functions as the community’s gateway. It is the first impression airline passengers have of San Diego and the very last thing they see when their visit ends. The airport is as much a part of the community’s history as Balboa Park, the historic Gaslamp Quarter, the San Diego Zoo, and the region’s scenic beaches. National Aviation Month gives us an opportunity to reflect on the airport’s heritage and what we can do to make sure it continues to make a

Contributing writers: Emmet Pierce, Delle Willett November 9, 2015 A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL www.sdbj.com Page A23

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Co-sponsors Page A24 www.sdbj.com A SUPPLEMENT OF THE SAN DIEGO BUSINESS JOURNAL November 9, 2015