Dedication. Determination. Delivery

Dedication. Determination. Delivery.

20112011 ANNUAL REVIEW CoContentsntents AboutAbout the Airports Authority 3 CChairman’shairman’s LetteLetterr ThThee MetropolitanMetropolitan WashingtonWashington AirportsAirports 5 MManagement’sanagement’s MMessageessage Authority operates WashinWashingtongton Dulles IInternationalnternational and Ronald Reagan 7 AAviationviation EEnterprisenterprise WWashingtonashington NationalNational Airports.Airports. InIn WWashingtonashington Dulles addition,addition, it operates the Dulles Toll International Airport Road and is the financialfinancial managermanager RRonaldonald RReaganeagan WWashingtonashington aandnd builderbuilder of thethe MetrorailMetrorail extensionextension tthroughhrough the Dulles Corridor, known as NNationalational AiAirportrport tthehe SilverSilver Line. 22 DDullesulles Corridor EnterprisEnterprisee Dulles CCorridororridor At the core ooff these vital enterprisesenterprises MMetrorailetrorail PProjectroject aarere 1,500 AirportsAirports AuthorityAuthority employeesemployees wwhoho work side by side with our airline Dulles Toll Road aandnd contractor partners,partners, and staffstaff fromfrom 2266 EEmployeesmployees in ServicServicee federal, state and local governmentsgovernments 28 FFinancialinancial SummarySummary aandnd municipalities. ThroughoutThroughout this 38 BBoardoard ooff DirectorDirectorss yyear’sear’s Annual Review, we are proud ttoo feature stories of their dedication,dedication, 39 MManagementanagement ddeterminationetermination and delivery to the people ooff the GreaterGreater Washington region and to vvisitorsisitors fromfrom allall overover thethe world.world.

2 Metropolitan Washington Airports Authority | 2011 Annual Review Chairman’s Letter

in the Falls CChurchhurch and Tysons CCornerorner communities, as well as the commuters on the Dulles Toll Road, are ververyy ffamiliaramiliar with the progress of the rail project. Almost every day it seems like a new section of the project is nearinnearingg completion.

TThehe success of the airports and the rail pprojectroject should not be taken for ggranted.ranted. TThehe residents ooff the reregiongion deserve credit for their ongoing support of Dulles InterInter-- AsAs Chairman of the MetroMetropolitanpolitan nnationalational anandd RReaganeagan NNationalational AiAirports,rports, tthehe WashingtonWashington Airports Authority, I am proud TTolloll Road and the Dulles Metrorail pproject.roject. toto present our 2011 AAnnualnnual RReview.eview. IItt not MMyy ffellowellow volunteer Board Members are to onlyonly brings to life the events and milestones be cocommendedmmended fforor ththee eenormousnormous timtimee aandnd thatthat marked another successfulsuccessful yyearear fforor us, enerenergygy donated to the Airports Authority. butbut alsoalso illillustratesustrates tthehe DedicaDedicationtion, DDeliveryelivery AAndnd our nearly 1,500 stastaffff members dede-- andand DDeterminationetermination of all our employees sserveerve recognition for the wonderful job they andand ppartnersartners whose contributions made our do operatinoperatingg two world-class airports while success a reality.reality. bbuildinguilding one of the largest infrastructure pprojectsrojects iinn tthehe natnation.ion. RonaldRonald RReaganeagan WWashingtonashington NNationalational AirportAirport set a new record with 18.8 million TToo be clear, however, we certainlcertainlyy do passengers served.served. WWashingtonashington DDullesulles nnotot take our success for granted, and InternationalInternational AiAirportrport aalsolso hhadad a very wwee constantly look for ways to improve. strongstrong year with 23.2 million passenpassengersgers TThehe transportation industrindustry,y, like evereveryy served,served, iincludingncluding a 1.6 percent iincreasencrease iinn ototherher bbusinessusiness arena, iiss gettgettinging more internationalinternational travelers.travelers. competitive evereveryy daday.y. If our airports are ggoingoing to continue to be leaders in the In addition, the Airports AuthorityAuthority made iindustry,ndustry, we must contcontinuallyinually worworkk to greatgreat progress iinn constructconstructinging tthehe mmakeake them more efﬁcientefﬁcient,, more revenue DullesDulles Metrorail project. Phase 1 of the driven and more convenient. EverEveryoneyone construction,construction, which started in 20092009,, assocassociatediated wwithith tthehe AiAirportsrports AAuthorityuthority shouldshould bbee compcompletedleted bbyy 2013. TTravelersravelers uunderstandsnderstands this challenge, and we plan to

3 Metropolitan Washington Airports Authority | 2011 Annual Review dodo everythingeverything in our power to improve ouourr SServingerving as Chairman of the Metropolitan policies,policies, processes andand proceprocedures.dures. WashinWashingtongton Airports Authority is a ggreatreat hhonor.onor. I ununderstandderstand hhowow mucmuchh tthishis TheThe WashingtonWashington area has always been a rregionegion and the nation depend on the leaderleader in aviation. In the earlyearly 1900s, the continued strenstrengthgth of this body. SSpeakingpeaking WrightWright brothers tested their ﬁrst airplanes on behalf of my fellow Board Members, onon the ggroundsrounds of Fort Myer in ArlinArlington,gton, the executive leadershileadershipp of the AirAirportsports Va.Va. PrPresidentesident FrFranklinanklin RRooseveltoosevelt ttookook a AAuthorityuthority and our outstandinoutstandingg stastaff,ff, I greatgreat personalpersonal iinterestnterest iinn tthehe ddevelopmentevelopment ppromiseromise we wwillill contcontinueinue to ddoo everyteverythinghing ofof what is now called Ronald ReaganReagan in our ppowerower to maintain the leadershileadershipp WashingtonWashington National Airport and spoke ppositionosition that has been so carecarefullyfully built up atat tthehe grandgrand openopeninging on JJuneune 16, 1941. over tthehe llastast 25 yearsyears.. WashingtonWashington Dulles International Airport waswas ridiculed by many as beinbeingg too remote whenwhen it opened in 1962. Today, of course, itit is widely regardedregarded as an architectural treasuretreasure and one ofof the world’s ggreatestreatest MichaelMichael A. CuCurtorto airports.airports. WWee are now aabsorbedbsorbed iinn tthehe ChairmanChairman constructionconstruction of the Metrorail pprojectroject to DullesDulles International and Loudoun CCounty.ounty. ThisThis is an expensive and difﬁcult project to undertake, but it is instrumental in helpinghelping thisthis regionregion maintain its leadership in nationalnational anandd ggloballobal travetravel.l.

“ We will continue to do everything in our power to maintain ththee leadershipleadership position tthathat hashas bbeeneen so carefullycarefully builtbuilt up ooverver the last 25 yyears.”ears.”

4 Metropolitan Washington Airports Authority | 2011 Annual Review Management’s Message

in 2013. In part, the Airports Authority’s operoper-r- ation of one of the region’s most important hhighwayighway arteries, the Dulles Toll Road, allows it ttoo ﬁnﬁnanceance ththee MMetrorailetrorail eextension.xtension.

TTwowo new aairir servserviceice recorrecordsds were set at Dulles International and ReaReagangan National AAirportsirports durinduringg 2011. Dulles International, the WWashingtonashington regregion’sion’s llargestargest aairportirport servservinging 23.2 million passenpassengers,gers, set an all-time hihighgh ooff 6.5 million international passengers, a 1.6 perper-r- JohnJohn E. Potter MargaretMargaret E. McKeoughMcKeough cent increase from 2010. International traffic at the airport has risen evereveryy yyearear since 2003. TheThe Metropolitan WashingtonWashington Airports ReaReagangan National also set a new record servinservingg AuthorityAuthority makes an onongoinggoing commitment to 18.8 mmillionillion passengers, a nearnearlyly 4 percent deliveringdelivering worworld-classld-class transportattransportationion to our increase ffromrom 2010 and sisignificantlygnificantly ggreaterreater region’sregion’s residents and visitors. That commitcommit-- than last year’s national averaaveragege ggrowthrowth rate mentment wwasas nneverever mmoreore eevidentvident ththanan in 22011.011. of 1.5 percent. We view these passenger nnumbersumbers as a ppositiveositive economic indicator fforor DuringDuring 2011, WWashingtonashington DDullesulles IInternationalnternational our Aviation EnterEnterpriseprise as well as for our airline andand Ronald ReaganReagan WashinWashingtongton National ppartnersartners wwhoho hhaveave bbeeneen worworkingking dilidiligentlygently to AirportsAirports served more than 42 million ppas-as- rreturneturn to proprofitability.fitability. sengers. ThThee AiAirportsrports AAuthorityuthority mamadede great strides in constructingconstructing the Metrorail extension Despite a challenchallengingging economy, the Airports alongalong the Dulles Corridor. The project is on AAuthorityuthority acachievedhieved success iinn mamaintainingintaining target,target, with the first phase scheduled to open its AA credit ratinratingsgs ffromrom principal credit

“ TheT he AirportsAirports Authority’s achievements in 2011 were the ddirectirect result of our ememployees’ployees’ contributions … we salute their DDedication,edication, applaudapplaud their Determination and aappreciateppreciate ttheirheir Delivery of totop-qualityp-quality work for the AirAirportsports Authority.”

5 Metropolitan Washington Airports Authority | 2011 Annual Review agencies.agencies. The Airports Authority’s bonds are seservicervice initiinitiativeative wwasas llaunchedaunched in 22011011 amongamong the nation’s top credit-rated bonds anandd sasaluteslutes empemployeesloyees wwhoho go aabovebove anandd issuedissued bbyy aairports.irports. ThiThiss iiss a notanotableble acachieve-hieve- bbeyondeyond the call ooff dutduty.y. The GGEMEM proprogram’sgram’s ment at a time when the Airports Authority’sAuthority’s ssuccessuccess has ssparkedparked a new awareness Capital ProgramProgram is near completion and of how employee actions, both small and itit has issued more than $5 billion in debt. larlarge,ge, can make a memorable, positive WeWe completed a complex debt proprogramgram in imimpactpact on travelers’ exexperiencesperiences at our airair-- 20112011 that encompassed issuingissuing bonds for pportsorts and in the Dulles Corridor. new construction, refunding existing bonds Whether clearinclearingg the runways aafterfter a snowsnow-- forfor debt service savings,savings, and mitimitigatinggating sstorm,torm, installininstallingg new safety equipment, risk from some variable-rate obligations.obligations. ddeployingeploying new tectechnology,hnology, hhelpingelping stranstrandedded Recently,Recently, tthehe AiAirportsrports AAuthorityuthority securesecuredd a mmotorists,otorists, respondinrespondingg to an emeremergencygency oorr $300$300 million Commercial Paper ProgramProgram for wworkingorking on the Metrorail extension, the role of thethe Toll Road Debt ProgramProgram that will ensure every AiAirportsrports AAuthorityuthority empemployeeloyee iiss crcritical.itical. sufﬁcient liquidity to fund the ongoing Phase TThishis year’s Annual Review ggoesoes behind the 1 constructionconstruction of ththee MMetrorailetrorail eextension.xtension. sscenescenes to illustrate the manmanyy contributions A major initiative to inteintegrategrate internal tthesehese iindividualsndividuals mamakeke — bbothoth on tthehe jjobob management information across our orga-orga- and in the communitcommunityy — to ffurtherurther the susuc-c- nization was completedcompleted in June with the cess ooff ouourr intinternalernal aandnd eexternalxternal initiinitiatives.atives. successful launch of the Airports Authority’sAuthority’s WWee sasalutelute ttheirheir DedicaDedicationtion, appapplaudlaud ttheirheir new Oracle Enterprise Resource Planning DDeterminationetermination and aappreciateppreciate theitheirr DeliverDeliveryy (ERP)(ERP) ssystem.ystem. The project’s implementation of top-qualittop-qualityy work for the Airports AuthoritAuthority.y. represents the culmination of three yyearsears

ofof planning and testing by staff members of the Airports Authority’sAuthority’s IT, Finance, ProcurementProcurement and other dedepartments.partments. JohnJohn E. Potter TheThe AirportsAirports AAuthority’suthority’s acachievementshievements iinn President and Chief Executive OfficerOfficer 20112011 were the direct result ooff our emploemploy-y- ees’ees’ contributions. WorkingWorking totogether,gether, wewe have overcome difficult challenges, identifiedidentified wawaysys to improve our operations andand efficiency,efficiency, and collaborated with cocom-m- MargaretMargaret E. McKeouMcKeoughgh munitiesmunities to ssharehare idideaseas anandd resources. ExecutiveExecutive Vice President and Chief OOperatingperating Officer TheThe GGoingoing the Extra Mile (G(GEM)EM) cuscustomertomer

6 Metropolitan Washington Airports Authority | 2011 Annual Review Aviation Enterprise

TheThe MetropolitanMetropolitan WWashingtonashington AiAirportsrports 2011, airlines were able to ggrowrow revenue Authority’sAuthority’s Aviation Enterprise, which bbyy matching the availability ooff ﬂﬂightsights with encompassesencompasses the operations ofof Dulles ppassengerassenger demand and increasing fares InternationalInternational anandd RReaganeagan NNationalational Airports,Airports, and ancillary ffees.ees. The WashinWashingtongton reregiongion reported positive ggrowthrowth in 2011. The two rremainsemains one ooff the strongest air transportatransporta-- airportsairports serveservedd 42 mmillionillion passengers llastast ttionion marmarketskets iinn tthehe country. year,year, iincludingncluding an aall-time-highll-time-high passenger ThThee AAviationviation EEnterprisenterprise was serveservedd wewellll totaltotal at ReaganReagan National and a record-serecord-set-t- bbyy AiAirportsrports AAuthorityuthority empemployeesloyees anandd tthehe tingting internationalinternational passenger totatotall at DullesDulles sstafftaff ooff our manmanyy partners who worked International.International. diligently to deliver a sasafe,fe, pleasant travel LikeLike ototherher mamajorjor aairlineirline hhubsubs across tthehe experexperienceience to DDullesulles IInternationalnternational anandd U.S.,U.S., Washington’s airports faced the chalchal-- ReaReagangan National travelers. CContinuedontinued lengelenge ofof airline industry restraint in terms ssuccessuccess wouwouldld not bbee posspossibleible wwithoutithout of capacity growth. This was especially empemployees’loyees’ ddedication,edication, ddeterminationetermination anandd truetrue on ddomesticomestic routes, as tthehe carrcarriersiers delivery ooff key services, day and ninight,ght, soughtsought to reduce operatingoperating expenses. In 365 ddaysays a year.

7 Metropolitan Washington Airports Authority | 2011 Annual Review In May, Icelandair joined a growinggrowing list of international carriers at Dulles International, offerinofferingg service ttoo ReykjavikReykjavik andand pointspoints beyondbeyond inin Europe.Europe.

WashingtonWashington Dulles International AirporAirportt Airport Rail Terminal” at the 2011 GGloballobal AiAirr DullesDulles IntInternationalernational seservedrved 223.23.2 millimillionon Awards ceremonceremony.y. passengers in 2011, putting it in first place The world’s larlargestgest aircraaircraft,ft, the Airbus 380, amongamong all three WashinWashingtongton area airports. mamadede iitsts WWashington-areaashington-area ddebutebut inin JuneJune It was a record-settingrecord-setting year for international with daily Air France flflightsights between Dulles airair passengers, withwith nearnearlyly 6.5 mmillionillion arrarriv-iv- International and CCharlesharles de GGaulleaulle AirAirportport in inging and departingdeparting on commercial flflights.ights. PParis.aris. The double-decker plane is conconfiguredfigured International passengerpassenger traffic at the airport fforor 516 passengers and features a two-floor hashas iincreasedncreased every year ssinceince 2003 anandd ccabinabin wwithith passenger lloungesounges anandd prprivateivate lastlast year’s passenpassengerger count represented a sleeping bunks. In anticipation ooff the new 1.61.6 percentpercent increase from 2010. CCommercialommercial domestic flightsflights accounted for nearly service, Airports AuthoritAuthorityy workers completed 16.6 millionmillion passengers, a 2.9 percentpercent modifications to the airport’s taxiways and decreasedecrease fromfrom 2010.2010. ggateate areas to accommodate the aircraaircraft.ft.

In 2011, the operation of Dulles Interna-Interna- IInn MMay,ay, IIcelandaircelandair mamadede iitsts ddebutebut at DDullesulles tional’stional’s AeroTrainAeroTrain achievedachieved a 99.5499.54 percentpercent International oofferingffering flflightsights to Reykjavik, availability ofof service and loggedlogged more than IcelandIceland,, ffourour times a week and low-cost 2.8 millionmillion vehiclevehicle milesmiles sincesince inception.inception. TheThe service to a number of European points via AeroTrain, which serves the majority ofof the Iceland. Turkish Airlines increased its serser-r- airport’s passengers,passengers, links the Main Terminal vviceice to IIstanbulstanbul anandd UUnitednited AirlinesAirlines aaddeddded with the A, B and C Gates. In May, the Aero-Aero- more flflightsights to Paris. The mermergerger ooff United Train’sTrain’s MainMain TerminalTerminal was namednamed thethe “Best“Best Airlines and Continental Airlines enabled new

8 Metropolitan Washington Airports Authority | 2011 Annual Review domesticdomestic anandd iinternationalnternational marmarketskets to bbee served, in some cases usingusing smaller, more cost-efficientcost-efficient aircraaircraft.ft. United began service toto four new domestic markets, Louisville, Minneapolis,Minneapolis, SSaltalt Lake CCityity and Tulsa, and thethe low-costlow-cost carriercarrier ViVirginrgin AAmericamerica iincreasedncreased service to its San Francisco hub. Inside the airport, revenues from airport ter-terr- minal concessions generated $54.1 million forfor thethe Airports Authority. DuringDuring 2011, a variety of new bookstore concessions were added, asas Stellar Books, Hudson Booksellers and A380 CCaptainaptain CChristianhristian Poinot meets his daughter Elodie Authors’Authors’ Books opened in locations fformerlyormerly upon arrarrivalival at DDullesulles International.International. leasedleased bbyy BBorders.orders. Big plane. Small world.world. SeveralSeveral initiatives were undertaken in 2011 Dulles International Traffic ControlControl OfficerOfficer by the Airports Authority to identifyidentify additional ElElodieodie PoinotPoinot hashas a specialspecial connectionconnection sources of revenue. As a result of this effort, wwithith the world’s largest aircraft.aircraft. Her father,father, anan agreementagreement with the United SStatestates GGolfolf Captain Christian Poinot, is one ooff Air AssociationAssociation ((USGA)USGA) was reached to provide France’s A380 pilots who flyfly the route between parking at the airport for those attending WWashingtonashington and ParisParis.. thethe June 2011 U.S.U.S. OpOpenen GGolfolf Tournament. SpectatorsSpectators were shuttled from one of Dulles Concourse C/D gets a facelift. International’s satellite lots to Congressional PassengersPassengers usingusing Concourse C/D now have CountyCounty CClublub in Bethesda, easineasingg concongestiongestion a brighter,brighter, updated space, thanks to the efforts alongalong the CCapitalapital Beltway and providing a of GregGreg MichnaMichna, RichardRichard TurnerTurner andand LarryLarry FerrignoFerrigno, whowho coordinatedcoordinated thethe hassle-free transportation alternative to the rerefurbishmentfurbishment project.project. majormajor event. Construction activities at Dulles International, DDeliveringelivering aaheadhead ooff scschedule.hedule. designeddesigned to deliver additional convenience, Under the leadershipleadership ofof RickRick MlinarcikMlinarcik, safetysafety and security enhancements, con-con- Gary Fuselier, DarenDaren DurbinDurbin, Marty Clarke tinuedtinued to progress tthroughouthroughout tthehe year. A aandnd JaneneJanene ShawShaw, TaxiwayTaxiway Y at Dulles International was rebuilt and reoreopenedpened three three-yearthree-year project that expanded the airport’s months ahead of schedule. InternationalInternational AArrivalsrrivals BBuildinguilding to twtwiceice iitsts originaloriginal ssizeize was susubstantiallybstantially compcompletedleted by year end. Improvements to the baggagebaggage re-checkre-check anandd passenger greetgreetinging areas aalsolso continuedcontinued wwithith tthehe ddedicationedication anandd dilidiligencegence

9 Metropolitan Washington Airports Authority | 2011 Annual Review 10 Metropolitan Washington Airports Authority | 2011 Annual Review ofof our employees and contractors. The recon-recon- struction ofof Taxiway Y, orioriginallyginally slated as a seven-monthseven-month proproject,ject, was compcompletedleted iinn jjustust fourfour months. In October, the Dulles Jet Center reopened ffollowingollowing a 21-month closure due to damagedamage causedcaused bbyy a 2009 snowstorm. TheThe passengerpassenger experience at Dulles InternationalInternational was enenhancedhanced wwithith tthehe aadditionddition ofof two significant public art installations in Student ambassadors assist at the airport-wideairport-wide launch ofof thethe CustomsCustoms and Border Patrol (C(CBP)BP) areas. thethe GEMM program. TheThe “Hello“Hello anandd WWelcome”elcome” iinstallation,nstallation, coorcoordi-di- nated by artists Catherine Judge and Michael A home for the holidaholidays.ys. McBride,McBride, ffeatureseatures selself-portraitsf-portraits bbyy students in InIn mid-December, a local student workingworking at artworkartwork that greets visitors in dozens ofof lanlan-- DullesDulles InternationalInternational becamebecame homeless.homeless. AfterAfter contactingcontacting a socialsocial worker,worker, thethe airportairport chaplainchaplain guages.guages. IItt iiss llocatedocated iinn tthehe FFederalederal InspectionInspection andand thethe stustudent’sdent’s teacherteacher to see wwhathat optionsoptions ServicesServices area used bbyy United Airlines passenpassen-- were avaavailable,ilable, a concerneconcernedd co-workerco-worker sent gersgers connecting to other flflights.ights. The newly an emaemailil to cocolleagueslleagues seekingseeking donationsdonations to renovatedrenovated IInternationalnternational AArrivalsrrivals BBuildinguilding iiss helphelp the ffamily.amily. Within 20 minutes, Loc ChuChu ofof home to “North/South/East/West,”“North/South/East/West,” a four-lens the airport’sairport’s Work OrderOrder Desk resresponded.ponded. Loc sculpturesculpture bbyy PhilPhiladelphiaadelphia artartistist RRayay KiKingng tthathat offered the use of a condo he owned to the isis suspendedsuspended bbeneatheneath tthehe sskylightskylights iinn tthehe family and met with them to work out the details. ThroughThrough his ggenerosity,enerosity, the family had a place to baggagebaggage claim area. livelive until they found permanent housinhousing.g. Loc’s TheThe Airports Authority is always looking for determinationdetermination to helphelp earnedearned hihimm a GEMM Award.Award. new outreach opportunities,opportunities, ideas and solusolu--

tionstions to meet the challenges ofof improving K Kindnessindness + ComCompassionpassion = LLifetimeifetime cuscustomer.tomer. serviceservice to our customers anandd communcommunities.ities. AfterAfter arriving at Dulles International ffollowingollowing GoingGoing the Extra Mile (G(GEM)EM), the AirAirportsports a ffamilyamily ffuneral,uneral, a grief-strickengrief-stricken FairfaxFairfax resident Authority’sAuthority’s customer servserviceice iinitiative,nitiative, was realized she did not have enough money forfor eagerlyeagerly emembracedbraced bbyy empemployeesloyees at DDullesulles herher cab ride home. Dulles Flyer Taxi Driver InternationalInternational aatt a kikick-offck-off cecelebrationlebration in SSolomonolomon WoldeyohannesWoldeyohannes refusedrefused herher offeroffer earlyearly 2011. MMonthlyonthly GEMM awarawardd wwinnersinners are to send the $3$3 she was short for the fare. The selected from Dulles International employee ggratefulrateful woman wrote, “he treated me so well, nominations and recipientsrecipients are honored fforor I ffeltelt I had been ggiveniven a new life.”life.” GoingGoing the theirtheir proactive service to our customers. OOurur EExtraxtra Mile wwithith kikindnessndness andand compassioncompassion converted a stranded traveler into a lifetimelifetime GEMM winners are constantly inspiring their Washington Flyer customer and turned SolomonSolomon co-workersco-workers to ggoo above and beyond the call iintonto a GEMM Award winner. of duty.duty.

11 Metropolitan Washington Airports Authority | 2011 Annual Review AnotherAnother mamajorjor outreacoutreachh iinitiativenitiative was implementedimplemented in 2011 with the establisestablish-h- ment of the “Sister“Sister Airport Program” that will aallowllow us to ssharehare “b“bestest practpractices”ices” wwithith otherother airportsairports around the world. Vienna InternationalInternational AiAirportrport iinn AAustriaustria was seselectedlected asas Dulles International’s first partner. Vienna International’s CCEOEO traveled to WashinWashingtongton in 20112011 to tour DDullesulles IInternationalnternational anandd RReaganeagan NationalNational AiAirportsrports anandd meet wwithith aairportirport manman-- A youngyoung student finds his self-portrait now on permanent displaydisplay in the Federal Inspection Services area at agementagement and stastaffff members to kick ooffff the DDullesulles International.International. program. The “Sister“Sister Airport Program” comcom-- plementsplements tthehe ongoongoinging hhospitalityospitality tthathat AiAirportsrports InternationalInternational aattention.ttention. AuthorityAuthority emploemployeesyees extend yyear-roundear-round to a In an ongoingongoing programprogram coordinated by number ofof visiting delegations ffromrom airports the Federal Aviation AdministrationAdministration,, the aroundaround tthehe worworld.ld. UU.S..S. Department of State and the Airports AAuthority’suthority’s DanielleDanielle MorganMorgan, a varietyvariety ofof OnOn a local levellevel,, outreach activities at Dulles internationalinternational delegationsdelegations visitedvisited bothboth DullesDulles InternationalInternational hhaveave tratraditionallyditionally iincludedncluded tours InternationalInternational andand ReaganReagan NationalNational lastlast year. thatthat delightdelight children ooff all aages.ges. A new dimendimen-- TheThe program is actively supported by the sionsion was addedadded iinn 2011 as cclose-uplose-up vviewsiews AirportAirport OOperations,perations, Engineering and stafstafff ofof the airfield were incorporated for the first offices of each airport. time.time. EmployeesEmployees ffromrom the Airports AuthoritAuthority,y, TransportationTransportation SSecurityecurity Administration ((TSA),TSA), Takin Takingg students behind the scenes. CBP, U.S. Coast Guard, Signature Flight PeggyPeggy Fowler, Capt. John Creagerr andand SupportSupport and the airlines work totogethergether to RRadjaadja thethe K-9K-9 are just some of the many airport personnepersonnell whowho helphelp givegive area studentsstudents a uniqueunique givegive stustudentdent vvisitorsisitors a ununiqueique “b“behind-the-ehind-the- pperspectiveerspective ofof Dulles International’s ooperations.perations. scenes”scenes” perspectperspective.ive. IInn ototherher youtyouthh outreacoutreachh TThehe Airports’ Public SafetySafety Department staff are activities,activities, students ffromrom manmanyy area schools key participants in the weekly programprogram.. andand organorganizationsizations partparticipatedicipated tthroughouthroughout tthehe yearyear iinn seasonaseasonall cecelebrations,lebrations, concerts, art exhibitionsexhibitions aandnd ootherther acactivitiestivities ththatat aallowedllowed themthem to sshowcasehowcase ttheirheir tatalentslents anandd entertaentertainin airportairport visitors.visitors. ThanksThanks to the dedication ofof hundreds ooff airportairport employees,employees, tthehe AiAirportsrports AAuthorityuthority isis a valued partner to deservingdeserving charitable organizationsorganizations anandd scschools.hools. ThThee annuaannuall PlPlaneane PullPull at DDullesulles IInternationalnternational ddrewrew 12,000

12 Metropolitan Washington Airports Authority | 2011 Annual Review Dulles International OperationsOperations

400400,000,000

300300,000,000

200200,000,000

100100,000,000

0 20092009 20102010 2011200111

Dulles International CCargoargo ((metricmetric tonnestonnes))

350350,000,000 300300,000,000 2250,00050,000 200200,000,000 1150,00050,000 100100,000,000 5050,000,000 0 20092009 20102010 20112011

DullesDulles IInternationalnternational PPassengersassengers

25,000,00025,000,000 20,000,00020,000,000 15,000,00015,000,000 10,000,00010,000,000 5,000,0005,000,000 0 20092009 20102010 20112011

DDomesticomestic PassenPassengersgers

InternationalInternational PassengersPassengers

“ International International trafﬁc at Dulles rose to newnew heightsheights in 2011.”2011.”

13 Metropolitan Washington Airports Authority | 2011 Annual Review spectators andand raraisedised a recorrecord-breakingd-breaking $168,000$168,000 for Special Olympics.Olympics. In addiaddi-- tion,tion, AiAirportsrports AAuthorityuthority empemployeesloyees tootookk to thethe greens to hhelpelp mamakeke tthehe 12t12thh AAnnualnnual LoudounLoudoun CCharityharity GGolfolf CClassiclassic a memorable andand successfulsuccessful ffundraiser.undraiser. The tournament, held at Raspberry Falls Golf Club, raised overover $$44,00044,000 for United WaWayy of the National CapitalCapital Area. This amount was in addition toto the $92,700 raised by donations from

The Police Department raised $6,161.62 for Special employeesemployees throughoutthroughout the Airports Authority Olympics VirVirginiaginia at the annual “Tip-A-Cop” event where inin thethe annuaannuall ggivingiving campacampaign.ign. police officersofficers served as waiters.waiters. EmployeesEmployees also showed their appreciation fforor A specspecialial connectconnectionion wwithith activeactive dutdutyy and veteran members of the U.U.S.S. SpSpecialecial OlOlympics.ympics. military.military. WhWhenen WWorldorld WWarar II veterans llandedanded at TheThe popularpopular “Plane“Plane Pull”Pull” annualannual event at DullesDulles DullesDulles International last yyear,ear, members ooff the International is just one ofof manymany activities that FireFire DDepartmentepartment greetegreetedd ttheirheir “H“Honoronor FliFlights”ghts” Corporal Joe CarrollCarroll organizesorganizes eacheach year inin style. Spectacular water arches gave a to benefit SpecialSpecial Olympics.Olympics. Joe’s dedication warmwarm wwelcomeelcome ttoo mmoreore ththanan 77 “H“Honoronor to the organization last year included helping Flights”Flights” tthathat bbroughtrought veterans comcominging to vvisitisit out with a variety ofof events, including the thethe WWorldorld WWarar II MMonumentonument constructeconstructedd on “Tip-A-Cop”“Tip-A-Cop” fundraisers, a golf tournament in Fairfax County, the Polar PlunPlungege at VirginiaVirginia thethe MMall.all. Beach, the Special Olympics ReRegionalgional Torch Green initiatives were noteworthy at Dulles Run conference in PittsburghPittsburgh and the Torch Run International during the past year. The air-airr- kickoff ceremonyceremony in Reston, Va. In November, Joe’sJoe’s tirelesstireless serviceservice was honoredhonored withwith an port was certified in the Loudoun CCountyounty invitation to attend the SpecialSpecial OlympicsOlympics Green Business Challenge, a testament International ConferenceConference in Calgary,Calgary, Canada.Canada. toto the success ofof the proprogram’sgram’s eefforts.fforts. In 2011,2011, ffourour electric vehicle charging stations, FFantasyantasy FlighFlightt ddelights.elights. accommodatingaccommodating up to eeightight automoautomobilesbiles at UnitedUnited Airlines and Airports Authority employees a time, were added to the third level ofof DailDailyy helped bring smiles to children in hospice as ParkingParking GGaragearage 2. The installation of solasolarr they teamed up to deliver a 40-minute “Fantasy panelspanels tthathat wwillill suppsupplementlement eelectricitylectricity at tthehe FliFlight”ght” aboard a BoeingBoeing 777 in the skies above DullesDulles Toll Road Administration BuildinBuildingg was Dulles International. A fantasy land of treats alonalongg ConcourseConcourse D awaited their arrival. U.S.U.S. alsoalso completed. “Green“Green Team” volunteers Department of Transportation SecretarySecretary RayRay fromfrom Dulles International participated in LLaHoodaHood was alsoalso on handhand to greet thethe childrenchildren several projects to clean up roadwaysroadways in the and their families.families. DullesDulles CCorridororridor and along the banks of the HorsepenHorsepen RRunun stream near tthehe aairport.irport.

14 Metropolitan Washington Airports Authority | 2011 Annual Review RonaldRonald RReaganeagan WWashingtonashington ppassengersassengers a spectacular view ooff the nation’s NationalNational AirAirportport capcapitalital anandd iitsts monuments. ThThee aairport’sirport’s cclose-lose- ReaganReagan National experienced a banner year iinn llocationocation anandd easy access to WWashingtonashington iinn 2011 as it set a new passengerpassenger record and mmakeake it easy fforor passenpassengersgers to take in the celebratedcelebrated its 70th anniversaranniversary.y. SSinceince its opeopen-n- ssightsights between flflights.ights. It’s no wonder that inging in June 1941, the airport’s popularity has Wiredd magazine named Reagan National one growngrown steadily. In its fifirstrst year ooff operation, it of the “Best AirAirportsports to GGetet SStucktuck In.” served 344,257 passengers;passengers; fifiveve years later, it TThehe airport was the scene of festivities in reached the one million mark. Last yyear,ear, 18.8 NoNovembervember as a ninnine-foot-talle-foot-tall bbronzeronze sstatuetatue million passengerspassengers passed throuthroughgh the airport’s ooff President Ronald Reagan was unveiled 44 ggates,ates, a 3.9 percent increase over 2010.2010. in front of Terminal A. The statue, which was Today,Today, ReaganReagan NNational’sational’s ororiginaliginal TTerminalerminal A ppresentedresented to the airport by The Ronald ReaReagangan holds a place ofof honor on the National PPresidentialresidential FFoundationoundation & LibLibrary,rary, was ddedi-edi- RegisterRegister ooff Historic Places and the striking catecatedd iinn a specspecialial ceremony attenattendedded bbyy more CesarCesar Pelli-designed Terminal BB/C/C gives than 150 gguestsuests ooff honor and 30 media outlets.

The statue ofof formerformer President Ronald Reagan was unveiled in a ceremony on November 1, 2011, aattendedttended byby former Transportation SecretarySecretary Elizabeth Dole, current Transportation SecretarySecretary RaRayy LaHood and members ofof the Airports Authority’sAuthority’s Board ofof Directors.Directors.

15 Metropolitan Washington Airports Authority | 2011 Annual Review TheThe event’s success was the result of extensive planningplanning by stastaffff members ffromrom many Airports AuthorityAuthority offices, including Public SSafety,afety, Communications, Reagan National Airport Administration,Administration, EnEngineeringgineering and Maintenance, andand OOperations.perations. TheThe U.S.U.S. DeDepartmentpartment of TransTransportationportation approvedapproved an appapplicationlication mamadede bbyy DDeltaelta AirlinesAirlines and US Airways to reassign landing “slots”“slots” at ReaReagangan National and other airports. TheThe llow-costow-cost carrcarrierier JJetBlue,etBlue, wwhichhich compcompletedleted itsits first full year of service at Reagan National lastlast year, is expected to add 16 new flflightsights as TaraTara HHamiltonamilton enjoysenjoys a moment withwith AirportsAirports AuthorityAuthority a result of the Delta-USDelta-US Airways “slot swap.” K-9K-9 Tara.Tara. DeliveringDelivering a world-class experience to ReaReagangan CoCommunicatormmunicator eextraordinaire.xtraordinaire. NationalNational passengers hhasas aalwayslways bbeeneen a For many throughoutthroughout the WashingtonWashington area, priority of the Airports Authority’s conces-conces- TTaraara HHamiltonamilton is a familiar name. SheShe is sions program.program. The proprogram’sgram’s success was the media personperson to turn to for news and recognizedrecognized iinn 2011 bbyy AiAirportrport RRevenueevenue NNewsews, events at our aairports.irports. ThroughoutThroughout herher 20-year20-year career, TTaraara hashas bbeeneen on thethe scene duringduring whichwhich awarawardedded RReaganeagan NNationalational tthehe didistinc-stinc- snowstorms, forfor special ceremonies, during tiontion of “Best CConcessionsoncessions ProProgramgram DesiDesign”gn” in emergencies and at the height ooff holiday thethe medium-sizemedium-size aairportirport didivision.vision. DDuringuring 2011, passenger traffic. At the 2011 Airports Council thethe aairportirport wewelcomedlcomed HHeritageeritage BBooksellersooksellers International MarketinMarketingg and Communications (operated(operated byby Paradies-BZB, LLLLC)C) and QQdobadoba CCommitteeommittee Conference,Conference, Tara was honored as Mexican Grill in the Great Hall. Total airport ter-terr- the industry’s communications professional minal concessions revenues were $25.8 million. of the yearyear and presented with the Ted BBushelmanushelman LegacyLegacy Award.Award. InIn addition,addition, tthehe passenger experexperienceience insideinside tthehe aairportirport was enenhancedhanced dduringuring tthehe CulinaryCulinary diversity.diversity. yearyear byby the completion ooff several cosmetic In celebration of TSA’s Diversity Day, the upgrades.upgrades. NNewew carpetcarpetinging anandd lilightingghting were second annual “Iron Chef”Chef” competitioncompetition at installedinstalled iinn TTerminalerminal AA,, anandd a new rentarentall cacarr Reagan National featuredfeatured culinary delights fromfrom all over the world. StaffStaff members from each of kioskkiosk was added in the lobblobbyy adjacent to the the airport’s securitsecurityy checkpoints prepared a baggagebaggage carousecarousels.ls. dish for the competition. SpecialSpecial guest judges A number ooff sasafetyfety upupgradesgrades fforor paspas-- included Airport ManageManagerr PaulPaul MalandrinoMalandrino, Student Ambassador Coordinator CourtneyCourtney sengers, visitorsvisitors anandd worworkerskers at RReaganeagan DillardDillard, Police ChiefChief StephenStephen HollHoll andand NationalNational were provprovidedided dduringuring 2011. TTestingesting SelinaSelina Johnson of Airport Operations. of an enhanced 9-1-1 system, allowinallowingg the

16 Metropolitan Washington Airports Authority | 2011 Annual Review transfertransfer of critical caller data across the ReaganReagan National, Verizon and ArlinArlingtongton EmergencyEmergency CCallall CCenterenter networks, was competedcompeted in October. The test confirmed thethe correct simultaneous displaydisplay ooff a caller’s numbernumber anandd llocationocation to emergency cacallll operatorsoperators andand tthehe AiAirportsrports AAuthority’suthority’s PPublicublic SafetySafety CCommunicationsommunications CCenter.enter. TheThe delivery of a state-of-the-art Oshkosh TheThe GEMM program kicked off in March at Reagan National StrikerStriker 3000 rapid emeremergencygency response unit with a pep rally through Terminal B/CB/C and into Terminal A.A. represents a significantsignificant milestone in public safety services provided at Reagan National. SSafetyafety first. Just hours afterafter it was pplacedlaced into service, ReaganReagan National’s enhanced 9-1-1 system thethe custom-engineeredcustom-engineered ununitit responrespondedded to itsits passed its critical qualification tests required firstfirst call. prior to implementation, thanks to the dedication of many team members, includinincludingg ConstructionConstruction improvements to Reagan RReneeenee Gordon, Douglas Campbell, National’sNational’s runways contcontinuedinued tthroughouthroughout Alice Queen, DeborahDeborah HendersonHenderson, 2011.2011. ResurResurfacingfacing ooff Runway 1-19 was RRhondahonda McCrimmon, Sonae CallowayCalloway, completedcompleted anandd tthehe TTouchouch DDownown ZZoneone lilight-ght- Bob BloomBloom, TTonyony MayheMayheww and OlinOlin KinnKinnerer. inging was replaced.replaced. UUtilitiestilities aalonglong tthehe runway QQuickuick responseresponse.. werewere also relocated in ppreparationreparation fforor ffutureuture improvements.improvements. When a hole was spotted along Runway 1-19 following overnight paving operations, the KeepingKeeping the runways ffreeree ooff fforeignoreign object PavementPavement Crew and Operations Department debrisdebris ((FOD)FOD) is also a prioritpriorityy for workers sprangsprang into action. Thanks to GeraldGerald HillianHillian, atat ReaganReagan NNational.ational. IInn 2011, tthehe popupopularlar SSergioergio DelDelgadillogadillo, CCarltonarlton SolomonSolomon, HeidiHeidi SSimim, TomTom TrudeauTrudeau, Rob Simko andand others,others, FODFOD Walks attracted dozens of volunteers tthehe runwarunwayy was reopenereopenedd inin llessess thanthan an hour.hour. fromfrom the Airports Authority and its airline partners whowho came out to ccleanlean tthehe runways Achieving a gold safety standard. onon threethree occasoccasions.ions. LibertyLiberty Mutual Insurance Company’s Gold Customer service and community outreach AAward,ward, its hihighestghest recognitionrecognition of achievement, was presentedpresented to thethe AiAirportsrports AuthorityAuthority initiativesinitiatives were top ofof mind fforor ReaReagangan forfor superior safetysafety performanceperformance on Dulles NationalNational empemployeesloyees wwhoho emembracedbraced a varvarietyiety InternationalInternational and Reagan National construction ofof activities with dedication and determina-determina- pprojects.rojects. There were zero lost time ininjuriesjuries forfor the tion.tion. GGoingoing the Extra Mile ppepep rallies were mmoreore than 690,000 work hours performed during heldheld at RReaganeagan NNationalational iinn MMarcharch anandd MMay.ay. 22011.011. Thanks gogo to MMikeike NataleNatale, the Airports MoreMore tthanhan 450 peoppeoplele attenattendedded tthehe MMarcharch AAuthority’suthority’s Risk ManaManager;ger; Tom HardeeHardee, PMC rallyrally to kick ooffff the GEMM cuscustomertomer seservicervice PProgramrogram Safety ManaManager;ger; and GerryGerry BoudreauBoudreau, PPMCMC Assistant ProgramProgram SafetySafety Manager.Manager.

17 Metropolitan Washington Airports Authority | 2011 Annual Review program. Band members from Wilson High SchoolSchool in WashinWashington,gton, D.D.C.,C., marched throuthroughgh thethe aairport’sirport’s termterminalsinals anandd jjoinedoined tthehe cecel-l- ebrantsebrants iinn TTerminalerminal A’A’ss HiHistoricstoric LLobby.obby. DuringDuring 2011, Reagan National stastaffff members honored the lives of thousands of veterans. TheThe airport staffstaff ororganizedganized special welcomes forfor 11,000 World War II veterans aboard the 97 “Honor Flights” that touched down at the air-airr- port. Each arrival was ggreetedreeted with a water arch WorldWorld WarWar II veterans were greetedgreeted enthusiasticallyenthusiastically provided by members ofof the Fire Department. by airport, airline and TTSASA employees who celebrated OnOn October 31, World War II veterans of the veteransveterans’’ dedicationdedication to militarymilitary service.service. 100th100th Battalion/442ndBattalion/442nd ReRegimentalgimental CCombatombat TeamTeam and the Military Intelligence SServiceervice and A bbearear ooff a jjourney.ourney. theirtheir families arrived from Hawaii to receive WhenWhen MonteMonte SanchezSanchez of USUS Airways spotted CongressionalCongressional GGoldold Medals. The 100th100th/442nd/442nd a lost teddy bear holding a picture of a U.S. isis the most highly decorated unit in U.S.U.S. milimili-- serviceman, he knew a child was missingmissing a very special companion. He took it upon himself to tarytary hihistory,story, earnearninging seven PPresidentialresidential UUnitnit help find the bear’s home, dedicatingdedicating hours CitationsCitations and 21 Medals of Honor. of his free time to solve the mystery.mystery. After YoungYoung flyers also received the VIP treatment many phone calls, he foundfound the bear belonged to a young girl fromfrom Kentucky whose fatherfather atat ReaganReagan National. Employees ggaveave children had given her the bear as a giftgift beforebefore being of ffallenallen soldiers a ffestiveestive send-osend-offff as theythey deployed to Afghanistan.Afghanistan. In recognition ofof boarded the American Airlines “Snowball Monte’sMonte’s determination to reunite the child with Express”Express” fforor a ggetawayetaway to Dallas, Texas, with her keepsake bear, Monte was named the GEMGEM childrenchildren ffromrom all over the country. Airports AwardAward WinnWinnerer ofof thethe Year.Year. AuthorityAuthority and American Airlines staff members alsoalso collaborated to create a special dayday forfor a GGettingetting the word out about GGEMEM. 4-year-old4-year-old wwithith cancer. A specspecialial paraparadede lleded bbyy AirportsAirports Authority Graphic DesigneDesignerr BongBong Lee, costumedcostumed volunteers gave the child and family the creator of many customer and employee materials, includingincluding the GEMM designs, was members a preview ofof the DisneDisneyy experience honored at the launch of the proprogramgram at the thatthat awaited their arrival in OOrlando.rlando. The Fire corporate office in MaMayy with a GEMM AwardAward ofof DepartmentDepartment joined in the festivities by spraying hihiss oownwn forfor hishis dedication.dedication. a water arch over the pplanelane at dedeparture.parture. FromFrom energy-savingenergy-saving idideaseas to expexploringloring alternativealternative ffueluel aapplications,pplications, the AirAirportsports AuthorityAuthority iiss constantconstantlyly llookingooking at ways toto expand its focus on green initiatives.

18 Metropolitan Washington Airports Authority | 2011 Annual Review ThroughoutThroughout 2011, our empemployeesloyees contcontinuedinued ReaganReagan National Operations a variety ofof studies, includinincludingg an enerenergygy audit 300300,000,000 of major ffacilitiesacilities at Reagan National and fea-fea- 250250,000,000 sibility assessments of energy-saving lighting 200200,000,000 systems, co-generationco-generation ooff electric power and 1150,00050,000 thethe use ofof alternative ffuelsuels fforor airport vehicles. 100100,000,000 A mmilestoneilestone iinn aairlineirline iinnovationnnovation occurreoccurredd 5050,000,000 whenwhen the fifirstrst ooff 75 commercial flflightsights usinusingg 0 a biofuelbiofuel blend, an Alaska Airlines flflightight 2009 2010 2011 fromfrom Seattle, landed at Reagan National. OurOur determination to identifidentifyy and implement Reagan National CCargoargo ((metricmetric tonnestonnes)) earth-friendlyearth-friendly solutions will continue to keep thethe Airports Authority at the forefront of the 8,8,000000 aviationaviation industryindustry in the yyearsears ahead. 66,000,000

Partnering for Progress Through 44,000,000 Dedication,Dedication, Determination and DeliverDeliveryy 22,000,000 ForFor many years, employeesemployees at bbothoth DDullesulles International and ReaganReagan National have 0 provided support to members ofof the Armed 2009 2010 2011 ForcesForces and their families. At the USO ofof ReaganReagan NNationalational PPassengersassengers MetropolitanMetropolitan Washington’sWashington’s 8th Annual SStarstars andand StripesStripes CCasinoasino Night, Airport Managers 20,000,00020,000,000 ChrisChris BrownBrownee anandd PPaulaul MMalandrinoalandrino were 15,000,00015,000,000 recognizedrecognized fforor providinprovidingg sisignificantgnificant service toto those who serve our countrycountry and fforor 10,000,000 accommodatingaccommodating the hundreds of troops travelingtraveling throuthroughgh each airport with comcomfort-fort- 5,000,0005,000,000 ableable USOUSO lounges. 0 2009 2010 2011 In 2011, the Airports Authority’sAuthority’s Fire & RescueRescue DDepartmentepartment provprovidedided tratrainingining iinn lifesavinglifesaving skills to nearly 1,200 employees, tenants,tenants, concessionaires and contractors. “ Passenger traffictraffic aatt TheThe team effort,effort, which encompassed more thanthan 52,000 individual staff hours of train-train- ReaganReagan NationaNationall ing,ing, provided instruction in first aid, CCPRPR reached an all-time andand the use ofof automated external dedefibril-fibril- lators.lators. ThThee DDepartmentepartment ddevelopedeveloped anandd highhigh in 2011.”2011.” delivereddelivered a recertirecertificationfication trainintrainingg proprogramgram

19 Metropolitan Washington Airports Authority | 2011 Annual Review forfor fire inspectors and investigators from aroundaround the region.region. In order to enhance the Department’sDepartment’s LiLiveve FiFirere TTrainingraining FFacilityacility at DullesDulles International, staff members teamed up with students ffromrom LeesburLeesburg’sg’s Monroe TechnicalTechnical CCenterenter to design, construct and installinstall several training props inside the fire simulator. This partnership ggaveave students a valuablevaluable ““realreal worworld”ld” experexperienceience anandd allowedallowed tthehe ddepartmentepartment to mamakeke economeconomicalical additionsadditions to its trainingtraining capabilities. StaffSSffftaff ofof the Business Administration OfficeOffice celebrate the conclusion ooff another successfulsuccessful business TheThe AiAirportsrports AAuthority’suthority’s ddeterminationetermination to opportunopportunityity seminar.seminar. partnerpartner with area business owners and entre-entre- preneurs was againagain ddemonstratedemonstrated dduringuring tthehe RReadyeady to serve anandd savesave.. 21st21st Annual Business Opportunity Seminar Emergency readiness drills are conducted held at Washington’sWashington’s Renaissance Hotel. The throughout the year to help prepare crews eventevent attracteattractedd more tthanhan 700 peoppeoplele wwhoho forfor action when needed to protect the public,public, renrenderder medicalmedical assistanceassistance andand keepkeep tooktook part in networking and informational the runways, roads and walkways safe in sessions that pprovidedrovided them with details inclementinclement weather.weather. TheseThese trainingtraining exercisesexercises aboutabout contractcontractinging opportunopportunities.ities. ThThee AirportsAirports paidpaid offoff when an individual went into cardiac AuthorityAuthority also held a Local Taxicab Outreach arrest at DDullesulles International.International. DavidDavid HehrHehr, ProgramProgram in WashinWashington,gton, D.D.C.,C., in SSeptembereptember PPatrickatrick Suder and Tom Kenneyy were toto provide potential operators with informa-informa- ppresentedresented with Valor Awards fromfrom the tiontion on thethe current taxtaxii operatoperationion anandd hhowow Loudoun County Chamber of Commerce foforr successfully resuscitatinresuscitatingg the passenger.passenger. theythey could enter the market. WhetherWhether ddeliveringelivering passengers anandd cargo FFederalederal recognrecognition.ition. toto their destinations or deliveringdelivering Airports During 2011, the Airports Authority’s effortsefforts AuthorityAuthority proprojectsjects on ttimeime anandd on bbudget,udget, to ensure public sasafetyfety at its facilitiesfacilities thosethose who work for the Aviation Enterprise rreceivedeceived recognition fromfrom two high-level ffederalederal agencies. The CentralCentral Intelligence andand our ppartnersartners embrace teamwork with AAgencygency saluted the Airports Authority’s enthusiasmenthusiasm anandd ddrive.rive. ThTheyey approacapproachh bbothoth Police Department for supportinsupportingg day-to- everydayeveryday assassignmentsignments anandd specspecialial cchal-hal- day operations of the aagency’sgency’s Special lengeslenges with dedication and determination. OOperationsperations and Travel Assistance Cadre. OurOur employees are our partners in progress, PPoliceolice InvestigatorInvestigator AngelAngel RuizRuiz waswas honoredhonored channelingchanneling pospositiveitive energy tthathat resuresultslts iinn tthehe fforor his investigative role in helping the U.S.U.S. deliverydelivery ooff new ideas and innovative solusolu-- Department ooff Justice successfullysuccessfully prosecute a Nigerian national who operated an airline tionstions tthroughouthroughout tthehe year. ticket scam.

20 Metropolitan Washington Airports Authority | 2011 Annual Review 21 Metropolitan Washington Airports Authority | 2011 Annual Review Dulles Corridor Enterprise

TheThe Airports Authority’sAuthority’s Dulles Corridor and nearlnearlyy four miles of inbound and outout-- EnterpriseEnterprise encomencompassespasses the Dulles CCorridororridor bboundound bridbridgesges in the Tysons Corner area MetrorailMetrorail extensextensionion anandd tthehe DDullesulles TTolloll RRoad.oad. are nearinnearingg completion. The three aerial TheseThese two componentscomponents rerepresentpresent vital trantrans-s- cranes used simultaneously on the bridbridgege portationportation activities that capturecapture the AirAirportsports pprojectroject rerepresentedpresented a construction feat Authority’sAuthority’s ddetermination,etermination, ddedicationedication anandd bbelievedelieved to be the first accomaccomplishedplished in deliverydelivery to improve ggroundround transportation NNorthorth America. Construction proprogressgress is service in the WashingtonWashington reregion.gion. also ververyy visible at the five new Phase 1 MeMetrorailtrorail sstations.tations. InInsideside ththee nnewew WiWiehleehle Dulles Corridor Metrorail ProjectProject AAvenuevenue StationStation,, the escalator installation WorkWork alonalongg the 11.5-mile Metrorail route wwasas comcompleted.pleted. thatthat will link East Falls CChurchhurch with Below gground,round, workers finished the minmin-- RestonReston and add five new stations reached ining,g, concrete work and waterproofinwaterproofingg on a peak duringduring 2011. Now officially known bobothth ththee ininboundbound aandnd ououtboundtbound ttunnelsunnels asas the “Silver“Silver LineLine,”,” this Phase 1 Metrorail connectinconnectingg Routes 7 and 123 and bebegangan project is on track for delivery to the trtrackack ininstallation.stallation. ThThee ccriticalritical trtrackack aandnd WashingtonWashington Metropolitan Area Transit sysystemsstems connections between the new AuthorityAuthority in 2013. SSilverilver Line and existinexistingg OranOrangege Line neanearr MajorMajor bridgesbridges spanninspanningg the Capital the I-66 and Dulles Connector Road ssplitplit BeltwayBeltway were fifinishednished durinduringg the yeayearr pprogressedrogressed on schedule. The year marked

22 Metropolitan Washington Airports Authority | 2011 Annual Review thethe delivery of the first train control room, the successfulsuccessful installation ooff the traction powerpower sta-station,tion, andand tthehe rerelocationlocation anandd unundergroundderground pplace-lace- ment of 21 utility systems. TheThe milestonesmilestones acachievedhieved iinn 2011 bbroughtrought PhasePhase 2 of the project closer to reality. Phase 2 will eextendxtend MMetrorailetrorail 11 milmileses ffromrom RRestoneston throughthrough DDullesulles IInternationalnternational anandd on to RRouteoute 772772 in Loudoun County. An agreement on projectproject scoscopepe and cost between the AirAirportsports AuthorityAuthority and its ffundingunding partners allowed Project Director Sam CarnaggioCarnaggio and Kevin Volbrecht, Deputy Project Director for Construction, alongalong the significant progress toward completing pre-pre- aerial gguidewayuideway where a 379-ton truss is beinbeingg used liminaryliminary engineeringengineering studies. In November, the to build bridgesbridges for rail from Route 7 to the median ooff AirportsAirports Authority’s Board ooff Directors ratiratifiedfied the Dulles International Airport Access Highway.Highway. a Memorandum of Agreement that ensured the SilverSilver Line’s continuation into Loudoun CCountyounty RReadead aallll aaboutbout iit.t. andand the U.U.S.S. Department of Transportation Bringing the story ofof Metrorail’s progress announcedannounced that additional funding for Phase to readers ooff The Washington Postt wwasas made possible by PaPatt NNowakowskiowakowski and 2 constructionconstruction wwouldould be mmadeade aavailablevailable fromfrom the Rail Office staff who arranged a hard- itsits Transportation InfrastructureInfrastructure Finance and hat tour for reporters and photophotographers.graphers. Innovation Act (TIFIA) fund. This federal funding, TThehe journalists received a first-hand coupledcoupled with the announcement that FairfaxFairfax llookook atat coconstructionnstruction ooff thethe futurefuture WiehleWiehle andand Loudoun CCountiesounties provisionally agreed to AAvenuevenue anandd TyTysonssons statstationsions as wellwell as a fundfund various construction projects associated rrareare look inside one of the TTysonsysons CornerCorner withwith the SSilverilver LineLine,, will reduce reliance for tunnetunnels.ls. TheThe resultingresulting story andand photophoto sspreadpread conveconveyedyed the impressive scope ooff fundingfunding on Dulles Toll Road revenues. the projectproject to the paper’spaper’s readers.readers. TheThe design-builddesign-build procurement fforor Phase 2 is expectedexpected to bbee ununderder way iinn 2013. ThThee two-two- SSpecialpecial recorecognition.gnition. phasedphased MMetrorailetrorail extensextensionion represents one Dedication exhibited by those working on of the largestlargest transportation improvements to the massive Metrorail engineering project comecome to tthehe WWashingtonashington metropometropolitanlitan regregionion was celebratedcelebrated lastlast NNovember.ovember. MembersMembers inin decadesdecades anandd wwillill enenhancehance access to loca-loca- of the Rail Office staff were recorecognizedgnized forfor tionstions alongalong the Dulles CCorridororridor and Dulles their service at a special Dulles Corridor RRailail AAssociationssociation event hostedhosted byby VirginiaVirginia International fforor residents and visitors alike. DDelegateelegate KKennethenneth RR.. PlPlum.um.

23 Metropolitan Washington Airports Authority | 2011 Annual Review DullesDulles TTolloll RRoadoad TheThe Dulles Toll Road’s benefitbenefit to those who live and work in the Dulles Corridor is enormous. Built in 1984, the Toll Road representsrepresents a vast improvementimprovement to thethe areaarea’s’s vevehicularhicular transtrans-- portationportation infrastructure and is an impetus forfor economic ggrowthrowth throuthroughoutghout its neineighboringghboring communities.communities. ThThee TTolloll RRoadoad aallowsllows motoristsmotorists to traveltravel at hihighwayghway speespeedsds bbetweenetween LLoudounoudoun CountyCounty and the District of CColumbia,olumbia, savinsavingg SarahSarah Wright, flanked by Airport Manager ChrisChris Browne and Toll Road Manager CyndiCyndi Ward, is honored at the time and precious ffuel.uel. Revenue ffromrom the Dulles Annual Virginia Toll Facility ConferenceConference in November.November. TollToll Road is used to help fund the construction of thethe nnewew MMetrorailetrorail eextension.xtension. Award-winningAward-winning serviceservice.. InIn 2011, thethe AiAirportsrports AAuthorityuthority remaremainedined ForFor thethe seconsecondd yearyear inin a row, a DullesDulles TollToll committed to supportingsupporting several reregionalgional Road CollectorCollector was named Virginia’s “Toll CCollectorollector of the Year.” Sarah WrightWright wonwon transportationtransportation iinitiativesnitiatives tthathat extenextendd beyondbeyond the 2011 award fforor her dedicated service. thethe DDullesulles TTolloll RRoad,oad, iincludingncluding compcompletingleting thethe preliminarypreliminary engineeringengineering phase fforor the widenwiden-- ToTo thethe rescuerescue.. ing of Route 606 west of the GGreenwayreenway to Dulles Toll Road Safety Service Patroller four lanes. Members of Loudoun County’s IIanan LauderdaleLauderdale helped save the life of a staffstaff and the WashinWashingtongton Airports Task Force pepedestriandestrian struckstruck by a motoristmotorist whenwhen hehe continued their study ofof long-term options to pperformederformed CCPRPR until paramedicsparamedics arrived. upgradeupgrade the Route 606 portion of the Dulles IIanan receivedreceived a GEMM award forfor his heroism.heroism. Loop to a highwayhighway and a partial ffreewayreeway facil-facility.ity. ThThee AiAirportsrports AAuthorityuthority aalsolso teameteamedd wwithith KeepingKeeping tthingshings movmoving.ing. local and state officials to review options forfor DullesDulles TollToll RoadRoad employeesemployees workedworked the new Northern VirginiaVirginia North-North-SouthSouth CCorridororridor overniovernightght to repair traffic accident damagedamage of SStatewidetatewide SSignificanceignificance on the west side of ununderder thethe BBeulaheulah RoadRoad overpass.overpass. WorkersWorkers DullesDulles IInternational.nternational. had the road open in time forfor the morning rrushush hour. Workers also averted tratrafficffic disruption when alerted in advance ooff a coming eight-hour power outage at the Centreville West Toll Plaza. On short notice, they delivered portable electric ggeneratorsenerators to keep power flowingflowing throughthrough tthehe outaoutage.ge. ThanksThanks gogo to thethe DullesDulles TollToll RRoadoad andand thethe DullesDulles InternationalInternational team members forfor their support.support.

24 Metropolitan Washington Airports Authority | 2011 Annual Review 25 Metropolitan Washington Airports Authority | 2011 Annual Review Employees in Service

Employees gather in the courtyard of the CorporateCorporate OfﬁceOfﬁce Building to kick off a GEMM rally. The rally pprovidedrovided insight into good customer service skills. Awards were distributed to employees who were recognized for their professional behaviorbehavior..

Airports AuthoritAuthorityy Police prepare forfor the 9-11 EmployeesEmployees who have dedicated at least motorcycle rideride.. 2020 years ofof service to the Airports Authority were recognizedrecognized at the annual Employee Recognition CeremonyCeremony in December.December.

26 Metropolitan Washington Airports Authority | 2011 Annual Review Employees in Service

In October,October, the U.S.U.S. Honor Flag was flown to Reagan National for the annual ceremony honoring fallen firefightersfirefighters and then transported to Emmitsburg, Md., forfor the Fallen FirefightersFirefighters Memorial. The Airports Authority’s Fire Department Honor Guard participated in the event.event.

In July, Reagan National employees gathered EmployeesEmployees were recognizedrecognized at the OperationalOperational ttoo bid farewellfarewell to outgoing Airports Authority SafetySafety Awards Program in December for their President & CEO Lynn HamptonHampton.. contribution to the preventionprevention ofof accidents and illnesses.illnesses.

27 Metropolitan Washington Airports Authority | 2011 Annual Review Financial Summary

CombinedCombined Aviation Enterprise Fund and Dulles CorridorCorridor Enterprise Fund

FiscalFiscal Years Ended December 31,31, 2011 20102009 2008 2007

OperatingOperating Revenues ConcessionsConcessions $ 227,599,995227,599,995 $ 230,973,498230,973,498 $ 217,461,176217,461,176 $ 223,710,732223,710,732 $ 2217,486,82317,486,823 TTollsolls 94,659,53894,659,538 88,038,16888,038,168 64,893,55464,893,554 10,416,49810,416,498 — RRentsents 275,428,113275,428,113 226,375,685226,375,685 193,736,080193,736,080 171,331,285171,331,285 167,301,027167,301,027 DDesignesign fees — — — 20,363,18920,363,189 — LLandinganding ffeesees 110,255,672110,255,672 101,637,867101,637,867 96,934,55896,934,558 82,289,54582,289,545 78,682,49678,682,496 UUtilitytility sales 11,979,59111,979,591 12,464,92012,464,920 13,227,16113,227,161 13,348,54513,348,545 11,778,73611,778,736 PPassengerassenger ffeesees 30,331,23130,331,231 25,913,52125,913,521 30,665,35830,665,358 28,354,14228,354,142 28,684,11328,684,113 OOtherther 8,381,2298,381,229 6,509,2256,509,225 6,429,1286,429,128 11,547,40511,547,405 6,542,9356,542,935 TTotalotal Operating Revenues $ 7 758,635,36958,635,369 $ 691,912,884691,912,884 $ 623,347,015623,347,015 $ 561,361,341561,361,341 $ 510,476,130510,476,130

TTotalotal Non-Non-OperatingOperating Revenues $ 336,598,1826,598,182 $ 29,651,98629,651,986 $ 118,763,628118,763,628 $ 22,334,35422,334,354 $ 39,877,95039,877,950 TTotalotal RRevenuesevenues $ 79795,233,5515,233,551 $ 721,564,870721,564,870 $ 742,110,643742,110,643 $ 583,695,695583,695,695 $ 550,354,080550,354,080 TTotalotal CCapitalapital CContributionsontributions $ 3370,923,02070,923,020 $ 458,221,068458,221,068 $ 428,228,630428,228,630 $ 438,884,975438,884,975 $ 118,674,180118,674,180

OOperatingperating Expenses MMaterials,aterials, equequipment,ipment, supplsupplies,ies, cocontractntract seservicesrvices aandnd ootherther $ 2209,351,98809,351,988 $ 203,460,120203,460,120 $ 173,143,395173,143,395 $ 176,288,727176,288,727 $ 182,096,091182,096,091 IImpairmentmpairment loss/desiloss/designgn costs — — — 80,027,39080,027,390 — SaSalarieslaries aandnd rrelatedelated bebeneﬁtsneﬁts 157,370,451157,370,451 156,535,252156,535,252 144,617,031144,617,031 136,720,661136,720,661 128,465,267128,465,267 UUtilitiestilities 26,779,16626,779,166 24,565,13724,565,137 28,209,63928,209,639 25,402,25725,402,257 21,134,31721,134,317 Lease frfromom UU.S..S. GoGovernmentvernment 5,180,5585,180,558 5,101,1195,101,119 5,066,0695,066,069 4,958,2804,958,280 4,830,1214,830,121 DDepreciationepreciation and amortization 215,291,994215,291,994 219,060,255219,060,255 185,914,089185,914,089 164,852,954164,852,954 142,029,601142,029,601 TTotalotal OperatinOperatingg Expenses $ 613,974,157613,974,157 $ 608,721,883608,721,883 $ 536,950,223536,950,223 $ 588,250,269588,250,269 $ 478,555,397478,555,397

TTotalotal Non-OperatinNon-Operatingg Expenses $ 337,559,564337,559,564 $ 285,284,914285,284,914 $ 156,375,809156,375,809 $ 303,327,003303,327,003 $ 138,796,034138,796,034

TTotalotal Expenses $ 951,533,721951,533,721 $ 894,006,797894,006,797 $ 693,326,032 $ 891,577,272891,577,272 $ 617,351,431617,351,431

IncreaseIncrease inin Net AssetsAssets $ 214,622,850214,622,850 $ 285,779,141285,779,141 $ 477,013,241477,013,241 $ 131,003,398 $ 51,676,82951,676,829 DDecreaseecrease iinn Net Assets Due ttoo Restatement — — — (31,877,3888))) (27,903,881(27,903,881) TotalTotal Net Assets $ 2,037,211,6952,037,211,695 $ 1,822,588,8451,822,588,845 $ 1,536,809,7041,536,809,704 $ 1,059,796,4631,059,796,463 $ 960,670,453960,670,453

28 Metropolitan Washington Airports Authority | 2011 Annual Review ThisThis report presents selected ﬁnancial in-in- TotalTotal Net Assets (in millionsmillions)) formationformation ofof the Metropolitan WashinWashingtongton AirportsAirports Authority ((thethe Airports AuthorityAuthority)) $$2,5002,500 only.only. ThisThis report iiss not iintendedntended to bbee a ComprehensiveComprehensive Annual Financial ReReportport $2,000$2,000 (CAFR)(CAFR) presented in accordance with Generally Accepted Accounting Principles (GAAP).(GAAP). The ﬁnancial data ppresentedresented is $1,500$1,500 derivedderived from the 2011 CCAFRAFR and is consisconsis--

tenttent with GAAP. The Airports Authority has $1,000$1,000 issuedissued separatelyseparately the 2011 CCAFR,AFR, which is prepared in conformance with GGAAPAAP and includesincludes more detailed financial information. $500$500 A copcopyy of the 2011 CCAFRAFR is available on the AirportsAirports AAuthority’suthority’s WWebsiteebsite at www.mwaa.www.mwaa. $0$0 com/file/2011_CAFR_Final_DAC_Rev.pdff oorr 2011 2010 2009 2008 2007 may be obtained by contactingcontacting the OfficeOffice of Finance at the Metropolitan Washington AirportsAirports Authority, 1 Aviation Circle, Washington,Washington, D.C.D.C. 20001-6000, 703.417.8700.

ThisThis report isis beingbeing submittedsubmitted to thethe GovernmentGovernment Finance OfficersOfficers Association (GFOA)(GFOA) for consideration of the Award forfor OutstandingOutstanding Achievement in Popular Annual FinancialFinancial Reporting.Reporting. The goalgoal of the GFOAGFOA program isis not to replacereplace reports preparedprepared inin conformity with GAAP, but to supplement such reportsreports so as to make the informationinformation theythey containcontain more readilyreadily accessibleaccessible to a broaderbroader audienceaudience thanthan thatthat servedserved byby tradi-tradi- tionaltional financialfinancial reporting.reporting.

29 Metropolitan Washington Airports Authority | 2011 Annual Review FinancialFinancial HighlighHighlightsts fforor tthehe FiFiscalscal YYearear EEndednded DDecemberecember 331,1, 20201111 FinancialFinancial HighlighHighlightsts — AAviationviation and comcomprisedprised 34.3 ppercentercent of total ooperat-perat- EnterpriseEnterprise FFundund iningg revenues in 2011. SSignatoryignatory airlines, TheThe financialfinancial statements ofof the AirAirportsports tthosehose tthathat hhaveave ssignedigned tthehe AiAirportrport UUsese Authority present the results of two enter-enterr- AgAgreementreement and Premises Lease (Use and priseprise funds. The Aviation EnterpriseEnterprise Fund Lease AAgreement),greement), are required to pay actual encompassesencompasses the activity ofof Ronald ReaReagangan costs ppluslus ddebtebt servserviceice coverage, wwhilehile tthehe WashingtonWashington National Airport (Reagan mmajorityajority of concessionaires pay the ggreaterreater ooff National)National) and WashingtonWashington Dulles International a percentapercentagege ooff revenue or a minimum annual AirportAirport ((DullesDulles InternationalInternational),), collectivelcollectively,y, the guarantee (MAG). Airports.Airports. The Dulles Corridor Enterprise Fund AAirlineirline RRevenuesevenues encompassesencompasses the Airports Authority’sAuthority’s activitactivityy AiAirlinesrlines tthathat operate at RReaganeagan NNationalational anandd withinwithin the Dulles CCorridor,orridor, which includesincludes,, Dulles International pay for the costs to operoper-r- butbut isis not lilimitedmited to, tthehe DDullesulles TTolloll RRoadoad anandd ate the AirAirportsports and to service the AirAirports’ports’ thethe Dulles Corridor Metrorail ProjectProject ((DullesDulles debt. When operating costs for the Airports MetrorailMetrorail ProProject).ject). The Dulles CCorridororridor is the AAuthorityuthority increase, there is a correspondincorrespondingg transportationtransportation corrcorridoridor wwithith an eastern termtermi-i- increase in the rates charchargedged to the airlines. nus of the East Falls Church Metrorail station In 2011, airline revenues, which consist of terter-r- atat InterstateInterstate RRouteoute 66 aandnd a wwesternestern tterminuserminus mminalinal rents, landinlandingg fees and passenpassengerger fees, ofof VA Route 772 in Loudoun County, Va. totaled $$416.0416.0 million. This was an increase TheThe overall activityactivity results ooff 2011 rereflectflect the of $62.1 million, or 17.5 percent, compared to continuedcontinued gradual reversal of negative trends 20102010,, and an increase of $94.7 millionmillion,, or experiencedexperienced across the aviation industryindustry 29.5 ppercent,ercent, comcomparedpared to 2009. as a resultresult of ththee rrecessionecession ththatat sstartedtarted in IInn 20112011,, rent revenues totaled $275.4 millionmillion,, DecemberDecember 2007. ThThee AAviationviation EEnterprisenterprise an increase of $$49.149.1 million from 2010 and an FundFund recorded $664.0 million in operatingoperating increase of $81.7 million from 2009. The key revenuesrevenues foforr 22011.011. ThiThiss wwasas a ttotalotal inincreasecrease ddriversrivers ooff inincreasedcreased tterminalerminal rrentsents in rrecentecent fromfrom 2010 of $60.1 million and an increase yyearsears include hihighergher operatinoperatingg costs as a fromfrom 2009 of $$105.5105.5 million. The Aviation rresultesult of the expanded International Arrivals EnterpriseEnterprise Fund’s revenues are primarilprimarilyy BuildinBuildingg at Dulles International and increases derivedderived from rents and charges for the use in debt service costs resultinresultingg ffromrom Terminal ofof the Airports Authority’s facilities, includingincluding A iimprovementsmprovements at RReaganeagan NNationalational anandd tthehe landinglanding ffeesees received ffromrom airlines usinusingg the AAutomatedutomated PeoPeopleple Mover ((AeroTrain)AeroTrain) that AirportsAirports andand concessconcessionion contracts at tthehe wwasas pplacedlaced into service at Dulles International Airports,Airports, includinincludingg parkinparkingg and off-airport in early 2010. In 2011, landing fees totaled rental car operations.operations. CConcessionsoncessions historihistori-- $$110.3110.3 millionmillion,, which was an increase of callycally have accounted for a substantial portion $$8.68.6 million and $$13.313.3 million from 2010 ofof the Aviation EnterpriseEnterprise Fund’s revenues anandd 2009, respectrespectively.ively. ThThee iincreasesncreases iinn

30 Metropolitan Washington Airports Authority | 2011 Annual Review totaltotal landing fees were consistent with the 20112011 Aviation Enterprise Fund increaseincrease in combined operationsoperations at both OperatingOperating Revenues Airports.Airports. Passenger ffees,ees, including concon-- veyance,veyance, International Arrivals fees, and 18%11.8%.8% 46%44.6%.6% 13%11.3%.3% feesfees paid byby the Transportation SSecurityecurity AdministrationAdministration (TSA) increased $$4.44.4 million, 16.6%16.6% oror 17.0 percent, from 2010 and decreased 41.4%41.4% $334,000,$334,000, or 1.1 ppercent,ercent, from 2009. The inin-- 34.3%34.3% creasecrease in passenger ffeesees over 2010 was driven by an increase in international trafﬁc and cor-corr- respondingresponding International Arrivals BuildinBuildingg ffeesees atat DDullesulles IInternational.nternational.

In 2011, prior-yearprior-year transtransfers,fers, which are used as an offsetoffset to revenues paid bbyy 41.4%,41.4%, RentRentss thethe airlines, remained ﬂat at $61.6 mil-million.lion. ((PleasePlease refer to Note 3 – AirAirportport Use 34.3%, ConcessionsConcessions AgreementAgreement andand PPremisesremises LLeaseease iinn tthehe 2011 16.6%, LandingLanding feesfees CAFRCAFR for more detail.) 4.6%,4.6%, Passenger feesfees ConcessionConcession Revenues TheThe AirportsAirports AAuthority’suthority’s concessconcessionion revenues 1.8%, UtilityUtility salessales

totaledtotaled $$227.6227.6 millionmillion,, which was a decrease 1.3%, OOtherther ofof $3.4$3.4 million, or 1.5 percent compared to 2010,2010, and an increase of $10.1 million, oorr 4.7 ppercentercent ffromrom 2009. In 2011, concession revenues accounted fforor 34.3 percent ooff total operatingoperating revenues, down 3.9 percent from 2010,2010, as a result ooff the overall decline in concessionconcession revenues and the aforementionedaforementioned increaseincrease iinn aairlineirline revenues. CarCar parking revenues continued to rank as thethe AiAirportsrports AAuthority’suthority’s llargestargest concessconcessionion inin 2011, providingproviding $$108.9108.9 million in total revenues fforor the yyear.ear. This was a decrease ooff $1.2 million from 2010, but an increase of $1.2 million ffromrom 2009. The decrease in parkinparkingg revenues iinn 2011 was partpartiallyially attrattributableibutable to lowerlower ddomesticomestic passenger enpenplanementslanements at Dulles International, which declined 3.2 per-perr-

31 Metropolitan Washington Airports Authority | 2011 Annual Review 2011 Aviation Enterprise Fund centcent from 2010 and 1.6 percent from 2009. In OperatingOperating Expenses 2011,2011, rental car revenues totaled $$38.738.7 millionmillion,, whichwhich decreased $$5.65.6 million and $$159,000159,000 fromfrom 2010 and 2009, respectively. In July 2011,2011, a new rental car contract was awarded 32.4% 36.5%36.5% atat Reagan National, which provided fforor lower MAGMAG amounts than the previous contract.

25.6%25.6% FoodFood and beveragebeverage revenues totaled $$17.317.3 millionmillion iinn 2011, wwhichhich representerepresentedd an iincreasencrease ofof $800,000 from 2010 and $1.6 million from 2009.2009. New conceconceptspts in 2011 included QQdobadoba 0.9% 4.64.6%% MexicanMexican GGrillrill at Reagan National. Fixed Base OperatorOperator (FBO) revenues of $14.1 million in 20112011 increased $$1.51.5 million from 2010 and

36.5%,36.5%, Depreciation Depreciation andand amortizationamortization $1.8$1.8 million from 2009. Higher MAGs accounaccount-t- eded for nearly $1.1 million of the increase overover 32.4%,32.4%, Materials,Materials, supplies,supplies, equipment,equipment, contract 2010,2010, while percentapercentagege revenues increased servicesservices andand otherother $427,000$427,000 due to higher prices on fuel sold by 25.6%,25.6%, Salaries Salaries and related beneﬁts thethe FBOs.

4.6%,4.6%, Utilities AllAll other areas ooff 2011 concession revrev-- enuesenues accounted for a combined net 0.9%,0.9%, Lease from U.U.S.S. GovernmentGovernment increaseincrease of $$1.11.1 million and $$5.75.7 million overover 2010 andand 2009, respectrespectively.ively. ThTheseese iin-n- creasescreases were llargelyargely attrattributableibutable to steasteadydy increasesincreases in duty ffreeree and advertisinadvertisingg revrev-- enues,enues, which offsetoffset moderate declines in otherother concessconcessionion revenues. OperatingOperating Expenses OperatingOperating expenses for the Aviation EnterpriseEnterprise Fund fforor the ﬁﬁscalscal yyearear ended DecemberDecember 31, 2011, totaled $$578.8578.8 mimil-l- lion,lion, an increase of $4.8 million, or 0.8 percent,percent, over 2010, and $$71.971.9 million, or 14.214.2 percent, ffromrom 2009. Materials, equiequip-p- ment, supplies,supplies, contract servservicesices anandd ototherher expensesexpenses increased byby $$7.07.0 million, or 3.9 percent iinn 2011. ThiThiss iincreasencrease was llargelyargely a result of contractual spending related to the

32 Metropolitan Washington Airports Authority | 2011 Annual Review implementationimplementation of a new Oracle Enterprise AfAfterter three yyearsears ooff development, the Airports ResourceResource PlanningPlanning ((ERP)ERP) SSystem.ystem. SServiceservices AAuthorityuthority implemented Oracle EBusiness expensesexpenses increased by $$7.17.1 million in 2011, SSolutionsolutions as its new ERP SSystem.ystem. AccordinAccordingg withwith spending on IT services accounting foforr to accountaccountinging prprinciplesinciples as promupromulgatedlgated iinn $5.2$5.2 million of the increase. ProjectProject exexpens-pens- GGASBASB Statement No. 51, AAccountingccounting anandd eses were alsoalso hihighergher iinn 2011 tthanhan iinn 2010, FFinancialinancial ReportinReportingg fforor IntanIntangiblegible AssetAssetss increasingincreasing from $5.6 million to $9.6 million (G(GASBASB 5151),), the Airports AuthoritAuthorityy was in asas a result ofof hihighergher non-capitalized project the developmental stage of the implemenimplemen-- costscosts associatedassociated wwithith ERP iimplementa-mplementa- tation proprogramgram throuthroughgh early 2009 and tion.tion. Operating expenses in 2010 increased expensed the costs throuthroughgh the SStatementstatements $67.1$67.1 million from 2009 due to record snow of Revenues, Expenses and Changes in Net events,events, new contracted operations ofof the AAssets.ssets. From 2009 until the ssystemystem was AeroTrain,AeroTrain, as wewellll as aadditionaldditional ddepreciationepreciation pplacedlaced in service in June 2011, aapplicablepplicable andand amortization expenses.expenses. costs were capcapitalized.italized. All rerelatedlated tratrainingining anandd data conversion costs were exexpensed.pensed.

Aviation Enterprise Fund — Operating Revenues FiscalFiscal Years Ended December 31, 20112011 20102010 2 2009009

OperatingOperating Revenues RentsRents $ 275,428,113275,428,113 $ 226226,375,685,375,685 $ 193193,736,080,736,080 ConcessionsConcessions 227,599,995227,599,995 230,973,498230,973,498 21 217,461,1767,461,176 LandingLanding feesfees 110,255,672110,255,672 101,637,867101,637,867 96,934, 96,934,558558 UtilityUtility sales 11,979,59111,979,591 12,464,92013,22 13,227,1617,161 PassengerPassenger feesfees 30,331,23130,331,231 25,913,52125,913,521 3 30,665,3580,665,358 OtherOther 8,381,229 6,509,2256,509,225 6,429,128 TotalTotal OperatingOperating Revenues $ 663,975,831663,975,831 $ 603603,874,716,874,716 $ 558558,453,461,453,461

Aviation Enterprise Fund — OperatingOperating ExpensesExpenses

FiscalFiscal Years Ended December 31,31, 20112011 20102010 200 20099

OperatingOperating Expenses Materials, equipment, supplies, contractcontract seservicesrvices aandnd ootherther $ 187,607,830187,607,830 $ 180,632,889 $ 148,303,889 SalariesSalaries and related beneﬁtsbeneﬁts 148,072,307148,072,307 148,274,437148,274,437 140 140,545,604,545,604 UtilitiesUtilities 26,542,084 24,375,18124,375,181 28 28,141,650,141,650 Lease from U.S. Government 5,180,5585,180,558 5,101,1195,101,119 5 5,066,069,066,069 DepreciationDepreciation and amortization 211,365,393211,365,393 215,536,523215,536,523 1 184,798,16684,798,166 TotalTotal OperatingOperating Expenses $ 578,768,172578,768,172 $ 573573,920,149,920,149 $ 506506,855,378,855,378

33 Metropolitan Washington Airports Authority | 2011 Annual Review Salaries and related benefits expenses uutilitiestilities expenses in 2010 totaled $24.4 milmil-- declineddeclined $$202,000202,000 from 2010 to $$148.1148.1 lionlion,, a decrease of $$3.83.8 million from 2009. million in 2011. Regular ffull-timeull-time pay fforor IInn 2010, tthehe AiAirportsrports AAuthorityuthority jjoinedoined an AirportsAirports AAuthorityuthority empemployeesloyees iincreasedncreased bbyy energy consortconsortium,ium, wwhichhich hhelpedelped rereduceduce $3.0$3.0 million, or 3.2 ppercent,ercent, over 2010. In uutilitytility expenses. 2011,2011, tthehe AiAirportsrports AAuthority’suthority’s hhealthealth iinsur-nsur- DDepreciationepreciation anandd amortamortizationization expenses anceance expenses increased by $1.2 million to in 2011 were $$211.4211.4 million. This was a $15.3$15.3 million. These increases were offset decrease of $$4.24.2 million from 2010 and byby a 24.8 percent reductionreduction iinn overtovertimeime an increase of $26.6 million from 2009. costs,costs, which fell by $2.6 million as a result IInn JanuarJanuaryy 2010, the AeroTrain became of lower snowfall,snowfall, as well as a decline in ooperationalperational at DDullesulles IInternational,nternational, anandd OtherOther Post-Retirement EmploEmployeeyee Benefits iinn NNovemberovember 2010, tthehe AiAirportsrports AAuthorityuthority (OPEB)(OPEB) expenses, which decreased by $1.5 comcompletedpleted the second pphasehase ooff the million to $$6.86.8 million in 2011. The AirAirportsports IInternationalnternational Arrivals BuildinBuildingg ((IAB).IAB). At AuthorityAuthority recorrecordedded ototherher post-retpost-retirementirement RReaganeagan NNational,ational, tthehe parparkingking garage was benefits expenses of $6.8 million and $8.3 expanded and runwarunwayy and taxiwataxiwayy imim-- million in 2011 and 2010, respectively.respectively. The pprovementsrovements were comcompletedpleted iinn 2010. IInn contributioncontribution percentages to tthehe AirportsAirports 2011, tthehe AiAirportsrports AAuthorityuthority compcompletedleted tthehe Authority’sAuthority’s retretirementirement pplanslans ddecreasedecreased to fifinalnal pphasehase ooff the IAB exexpansionpansion at Dulles 7.47.4 ppercentercent in 2011 ffromrom 7.5 ppercentercent ooff eleli-i- IInternationalnternational anandd RRunwayunway 1-19 iimprove-mprove- giblegible earnings in 2010 fforor the general plan mmentsents at RReaganeagan NNational.ational. andand decreased to 14.7 percent in 2011 from 16.016.0 percent ooff elieligiblegible earninearningsgs in 2010 fforor A cost allocation plan is used to identiidentifyfy thethe police and fifirefightersrefighters plan. The fundedfunded and quantify all overhead and other indirect ratio as of the actuarial valuation date of costs appropriatelappropriatelyy allocable to the Dulles DecemberDecember 31, 2010, was 106.1 ppercentercent fforor TTolloll RRoadoad or to tthehe DDullesulles MMetrorailetrorail PProjectroject thethe general plan and 99.0 percent fforor the wwithinithin the Dulles Corridor Enterprise Fund. police and firefighters plan. AAss a result of this allocation pplan,lan, $$8.58.5 and $$7.37.3 million of Aviation EnterEnterpriseprise Fund TheThe AirportsAirports AAuthority’suthority’s ututilityility expenexpendituresditures operatoperatinging expenses were aallocatedllocated to tthehe forfor 2011 were $26.5 million, an increase Dulles CCorridororridor EnterEnterpriseprise Fund in 2011 and ofof $2.2$2.2 million from 2010. The increase in 2010, respectrespectively.ively. utilityutility expenses was ddrivenriven prprincipallyincipally by higherhigher electricityelectricity rates, wwhichhich resuresultedlted iinn a $3.2$3.2 million increase in electricitelectricityy expense. SpendingSpending on natural gas declined by $800,000 in 2011 due to a decrease in rates, and helped to mitigatemitigate the increase inin electricityelectricity costs. ThThee AiAirportsrports AAuthority’suthority’s

34 Metropolitan Washington Airports Authority | 2011 Annual Review FinancialFinancial Highlights — Dulles CCorridororridor Dulles Corridor Enterprise Fund EEnterprisenterprise Fund OperatingOperating Revenues ((inin millionsmillions)) OperatingOperating Revenues $80$80 ForFor the yyearear ended December 31, 2011, the DullesDulles CCorridororridor Enterprise Fund recorded tolltoll revenues of $94.7 million, which con-con- sistedsisted of AAutomatedutomated VVehicleehicle IIdentificationdentification (AVI)(AVI) or electronic toll collections of $70.6$70.6 $60$60 million, cash collections of $22.9 million, andand violations revenues of $$1.11.1 million. AVI collectioncollection as a percentage ofof total operat-operat- inging revenues was 74.6 percent. IInn 2010, totollll $40$40 revenues totaled $$88.088.0 millionmillion,, an increase ofof $23.1$23.1 million from 2009, and consisted ofof AVI collections of $63.6 million, cash collectionscollections of $$23.723.7 millionmillion,, and violations revenues of $$0.70.7 million. AVI collection as $20$20 a percentage of total operating revenues waswas 72.2 ppercent.ercent. OOverallverall increases in total operatingoperating revenues iinn 2011 were prprimarilyimarily drivendriven bbyy totollll rate iincreasesncreases tthathat went iintonto effecteffect on JanuaryJanuary 1, 20112011.. $0 20201111 2 2010010 OperatingOperating Expenses ForFor the yyearsears ended December 31, 2011, CashCash 2010,2010, and 2009, the Dulles CCorridororridor Automated vehicle identification (EZPass)(EZPass) EnterpriseEnterprise Fund recorded $35.2 million, $34.8$34.8 million, and $$30.130.1 million in operatinoperatingg ViolationViolation expenses,expenses, respectively.respectively. IInn 2011, operatoperatinging expensesexpenses were primarily comprised of materi-materials,als, supplies,supplies, eequipment,quipment, contract services, andand other, which totaled $$21.721.7 million and inin-- cludedcluded $5.1 million in electronic toll collection feesfees paid to the third-partythird-party processor ooff AVI transactions,transactions, $$4.24.2 million in maintenance and repair costs, and $1.6 million in consulting services. In 2010, materials, supplies,supplies, eequip-quipment, contract servicesservices anandd ototherher totatotaledled $22.8 million, which included $6.2 million

35 Metropolitan Washington Airports Authority | 2011 Annual Review DullesDulles CCorridororridor EnterEnterpriseprise Fund inin electronic toll collection fees paid to the OperatingOperating Expenses (in millionsmillions)) third-partythird-party processor ooff AVI transactions, $3.7$3.7 million in maintenance and repair $25$25 costs,costs, and $1.4 million in contractual snow removalremoval coscosts.ts. In 2011, $8.5 million was allocated from $$2020 thethe Aviation EnterpriseEnterprise Fund to the Dulles Corridor Enterprise Fund, with $$5.05.0 million allocatedallocated to the Dulles Toll Road and $3.5

$15$15 millionmillion aallocatedllocated ttoo ththee DDullesulles MMetrorailetrorail Project.Project. In 2010, $$7.37.3 million was allocated fromfrom the Aviation Enterprise Fund to the DullesDulles Corridor EnterEnterpriseprise Fund, with $$4.64.6 $10$10 millionmillion aallocatedllocated to tthehe DDullesulles TTolloll RoadRoad andand $2.7 million to the Dulles Metrorail Project.Project. The increase in allocated costs isis attributableattributable to iincreasesncreases iinn tthehe aalloca-lloca- $5 tiontion for the Board, Information Systems andand TelecommunicationsTelecommunications,, Business Administration,Administration, anandd FiFinancenance expenses.

$0 AllocatedAllocated costs related to Phase 2 of the 20112010 MetrorailMetrorail ProjectProject also increased due to preliminarypreliminary engengineeringineering actactivitiesivities ununder-der-

MMaterials,aterials, equequipment,ipment, supplies,supplies, takentaken iinn 2011. contract servservicesices anandd otherother SalariesSalaries and related benefits expense SalariesSalaries and related benefitbenefitss increasedincreased $1.0 million from $8.3 million in 20102010 to $$9.39.3 million in 2011. The increase UtilitiesUtilities waswas due to a $$978,000978,000 increase in allocated DDepreciationepreciation anandd amortizationamortization salaries and benefits expense. Salaries and benefitsbenefits exexpensepense increased $$4.24.2 million inin 2010 due to a $$2.02.0 million increase in salaries and benefits for Dulles Toll Road andand Metrorail Project employeesemployees as well as a $2.2$2.2 million increase in allocated salaries andand benefits expense.

36 Metropolitan Washington Airports Authority | 2011 Annual Review DullesDulles Corridor Enterprise Fund — OperatingOperating Revenues FiscalFiscal Years Ended December 31,31, 20112011 20102010 200 20099

DCEDCE OperatingOperating Revenues Cash $ 2222,905,593,905,593 $ 23,715,733 $ 19,199,661 AutomatedAutomated vehiclevehicle identiﬁcationidentiﬁcation (EZPass) 70,634,12470,634,124 63,606,90663,606,906 45,146,68545,146,685 ViolationViolation 1,119,821 715,529715,529 5 547,20847,208 TotalTotal OperatingOperating Revenues $ 994,659,5384,659,538 $ 888,038,1688,038,168 $ 664,893,5544,893,554

DullesDulles CorridorCorridor Enterprise Fund — OperatingOperating Expenses

FiscalFiscal Years Ended December 31, 20112011 20102010 2 2009009

DCEDCE OperatingOperating Expenses Materials,Materials, equipment,equipment, supplies,supplies, contract servicesservices and otheotherr $ 2121,744,158,744,158 $ 22,827,231 $ 24,839,5024,839,5066 SalariesSalaries aandnd relatedrelated beneﬁtsbeneﬁts 9,298,1449,298,144 8,260,8158,260,815 4,071,4274,071,427 UtilitiesUtilities 237,082237,082 189,956189,956 67 67,989,989 DepreciationDepreciation and amortizationamortization 3,926,6013,926,601 3,523,7323,523,732 1,11 1,115,9235,923 TotalTotal OperatingOperating Expenses $ 335,205,9855,205,985 $ 34,801,34,801,734734 $ 30,094,845

FinanceFinance OOfficeffice consconsistentlyistently recognrecognizedized fforor acachievementshievements ForFor thethe 22nd22nd consecutive year,year, thethe Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial ReReportingporting to the AirportsAirports Authority for its 20102010 CompreComprehensivehensive AnnuaAnnuall FinanciaFinanciall Report. Once again, we also received the GFOA’s 2011 Distinguished Budget Presentation AwardAward andand thethe 20102010 awarawardd for OutstandingOutstanding AchievementAchievement for our PopularPopular AnnualAnnual FinancialFinancial Reporting. CongratuCongratulationslations go to CFO AndrewAndrew RountreRountreee aandnd hihiss eentirentire stastaff.ff.

37 Metropolitan Washington Airports Authority | 2011 Annual Review Board of Directors

ChairmanChairman VViceice ChairmaChairmann RoRobertbert CClarkelarke Brown RRichardichard S. ““Dickie”Dickie” TThehe HonoraHonorableble MichaelMichael A. Curto1 The HonoraHonorableble US CaCarterrter WilliWilliamam W. CoCobeybey Jr. MDMD TThomashomas M. DDavisavis IIIIII MD UUSS VA

FrankFrank M. CoConnernner IIIIII TThehe HonoraHonorableble SShirleyhirley RoRobinsonbinson DDennisennis L. MMartireartire MMichaelichael L. OO’Reilly’Reilly VAVA HH.R..R. Crawford HHallall VVAA VA DDCC DDCC

Mame ReileyReiley2 WaWarnerrner H. SessSessionion PPastast CChairmanhairman TToddodd StottlemyeStottlemyerr4 VA DDCC CCharlesharles D. SnellinSnellingg3 VA USUS

1ChairmanChairman Effective January 1, 20120122 2ResignedResigned Effective February 15, 20122012 3Deceased March 29, 2012 4AppointedAppointed March 8, 20120122

38 Metropolitan Washington Airports Authority | 2011 Annual Review Management

JohnJohn E. Potter Frank D. Holly,Holly, Jr.Jr. President and ChiefChief Executive OOfﬁcerfﬁcer 1 ViceVice President fforor EnEngineeringgineering

Margaret E. McKeough VValeriealerie HoHoltlt EExecutivexecutive Vice PresiPresidentdent andand ViceVice President for AuditAudit CChiefhief Operating Ofﬁcer J. Paul Malandrino, Jr. QQuinceuince T. BrinkleBrinkley,y, Jr. VViceice President and AirportAirport ManageManagerr VViceice President and SecretarySecretary RRonaldonald Reagan WasWashingtonhington NationalNational

SSyedyed AliAli AnAndrewdrew T. Rountree AActingcting Vice President for Information VViceice President fforor Finance and and Telecommunications SSystemsystems2 CChiefhief Financial OOfﬁcerfﬁcer

StevenSteven C. BaBakerker PhiliPhilipp Sunderland VViceice President fforor Business VViceice President and General CounselCounsel AdministrationAdministration Elmer H. Tippett, JrJr.. ChristopherChristopher U. Browne VViceice President fforor Public SSafetyafety VViceice President and Airport ManagerManager MarMarkk TreaTreadawaydaway WashingtonWashington DuDulleslles InternationaInternationall VViceice President for Air ServiceService GGeorgeeorge R. ElliElliss Planning and Development, VViceice President fforor InformationInformation anandd and AActingcting Vice President fforor TTelecommunicationselecommunications SySystemsstems 3 Communications

Arl B. Williams VViceice PresidentPresident fforor Human ResourceResourcess

1 EffectiveEffective July 11, 2011 E.E. Lynn Hampton retired on OctoberOctober 7, 2011 2 EffectiveEffective FebruaryFebruary 24, 20120122 3RetiredR etired AprAprilil 11, 2012

39 Metropolitan Washington Airports Authority | 2011 Annual Review 1 Aviation CCircle,ircle, WashinWashington,gton, D.D.C.C. 20001-6000 703703.417.8745.417.8745 wwww.mwaa.comww.mwaa.com