Citigroup Technologies Corp

Regional Airport Management Study  <>

Prepared for  

 

The Southern California Association of Governments

(SCAG)

 

 

 

 

Steven P. Erie, Ph.D., Project Manager

Andrew Mckenzie, Ph.D.

Scott MacKenzie, M.P.P.

Susan Shaler, M.B.A.

  <>

This study was financed with Federal Airport Improvement Program funds from the Federal Aviation Administration (FAA) and local funds from SCAG.  The contents of this study do not necessarily reflect the official views or policies of the FAA. 

  



                    REGIONAL AIRPORT MANAGEMENT STUDY

 

                                      EXECUTIVE SUMMARY

 

                                                      

In recent years the focus of the SCAG Region’s airport debate has shifted from finding new airport capacity to better utilization of existing capacity.  The existing urban airports are highly constrained and encroached while available capacity is concentrated at suburban airports in the Inland Empire and North Los Angeles County.  As a result, the regional airport ground access issue is becoming paramount.  SCAG’s Regional Aviation Plan recommends decentralizing passenger and air cargo service from congested urban airports to outlying suburban airports where capacity is available.  Its implementation requires identifying appropriate regional governance mechanisms and strategies to better coordinate the Region’s airport, ground access, and related planning and development.     

 

This Regional Airport Management Study addresses that need.  The Study’s purposes are to: (a) identify, compare, and evaluate the nation’s leading approaches to regional airport and ground access governance and coordination; (b) determine what management system is most appropriate for the SCAG Region consistent with the 2004 RTP’s “Regional Airport Consortium” concept; and (c) develop an efficient implementation plan for the selected prototype(s).  The right governance system ensures that the entity is an effective vehicle for implementing a broad range of SCAG regional policies, ranging from aviation and ground transportation to growth visioning and coordination with the proposed Maglev joint powers authority.

 

Methodologically, we review existing surveys and research, and conduct a supplemental survey of the nation’s 18 largest metropolitan areas concerning their airport systems and governance, ground access systems, and regional airport and ground access planning.  We conducted Internet surveys, and interviewed airport and transportation officials and planners in Southern California and around the country.  Based upon this research, we offer in-depth analyses of five exemplar case studies depicting leading regional airport management and ground access approaches relevant to the airport consortium concept.  The exemplars are: (a) the Boston/New England area and its regional airport consortium; (b) the Sacramento region with niche planning for Mather Airport, an all-cargo facility; (c) the Dallas/Fort Worth region with DFW Airport jointly owned and operated by the two cities, and proposals for a rail system linking airports for connecting flights; (d) the Washington/Baltimore region providing multi-modal transportation services for the three major hub airports; and (e) the now-dormant Southern California Regional Airport Authority (SCRAA), a multi-jurisdictional joint powers authority which once served as a potential vehicle for airport decentralization and regionalization.   

 

Our research suggests that while many regional airport management options appear available, most are inconsistent with a multi-jurisdiction, multi-airport “airport consortium” concept.  Thus, we exclude pure federal, state, county, municipal, regional or port district models of metropolitan airport management.  We believe that three governance arrangements stand out in terms of their political and legal feasibility: (a) a New England-style Regional Airport Consortium memorandum of understanding (MOU); (b) a reconstituted SCRAA; and (c) a new joint powers authority (JPA).

 

New England-Style MOU: The New England Regional Airport Consortium consists of an MOU between ten airports and six states to perform joint planning and marketing to encourage service at the region’s secondary airports and relieve pressure at Boston’s congested Logan International Airport.  A similarly modeled SCAG Region Airport Consortium MOU (or JPA) might consist of representatives from the ten commercial airports, from the respective county transportation commissions in Los Angeles, Orange, Riverside and San Bernardino Counties, from other relevant agencies such as the Southern California Regional Rail Authority (Metrolink) and the Southern California Association of Governments.  Consideration should also be given to participation by commuter airport operators and transportation agencies in Ventura and Imperial Counties.  At some point, there can even be consideration of a Mega-Region approach, incorporating all of Southern California’s commercial airports and transportation agencies from Santa Barbara to San Diego County. Also, more structure than the New England Consortium would be desirable, which has no bylaws and meets on an ad hoc basis.

 

Reconstituted SCRAA: A second approach would be to revive and reconstitute the inactive Southern California Regional Airport Authority, which remains fully funded.  SCRAA’s membership consisted of the City of Los Angeles, and Los Angeles, San Bernardino, Orange and Riverside Counties.  Two members have withdrawn, and L.A. city has not sent a representative since 2001.  Lacking the required three members, there is no quorum.  Should a quorum be created, SCRAA might conceivably be turned into a simplified and more flexible organization.  A new mission, bylaws and membership would need to be defined for SCRAA consistent the concept of a Regional Airport Consortium in SCAG’s 2004 Regional Transportation Plan (RTP).  A major difficulty is that all changes in power, authority and membership require a unanimous vote. 

 

A New JPA: A third option would be to create a new joint powers authority (JPA).  Such an entity would not be burdened by SCRAA’s apparent record of failure.  A new JPA could create a more inclusive membership and adopt more flexible and consensus-building rules.  This might be done in conjunction with the official dissolution of SCRAA, with unspent member contributions transferred to the new JPA to jumpstart the process.  Relative to a MOU, a JPA under the California Government Code can be a separate organizational entity with powers and authority bestowed upon its participating governmental jurisdictions.  The joint powers agreement can authorize a policymaking board or commission that may—or may not—consist of elected officials.

 

The Study’s major findings regarding an airport consortium structure and implementation strategy are as follows:

 

            (1) The Regional Airport Consortium should have an inclusive membership, and Los Angeles World Airports should take a leading role.  The Consortium should initially be constituted in terms of planning and feasibility responsibilities.  A phased approach gives needed time to resolve critical issues of institutional design, mission and powers.  It also allows time to develop a close working relationship with SCAG.  The Consortium should aim for inclusive membership: the region’s commercial airport operators, county transportation commissions, relevant transportation agencies such as SCAG and the Southern California Regional Rail Authority, and other stakeholders.  The Consortium might start out with a few committed members and have others join over time as its value is demonstrated.  However, there is a minimum participation threshold.  At the very least, it requires active City of Los Angeles, Inland Empire, and SCAG participation.  In particular, the Los Angeles World Airports should play a leading role in initiating and assuring the continuity of the new entity.  The first priority of Los Angeles World Airports should be the development of an Integrated System Plan for the airports it owns and operates, which identifies complementary roles and market niches for each airport and financial mechanisms for achieving decentralization of service.  This system plan would then be expanded through the Consortium to incorporate non-LAWA airports in the region, to implement the decentralization strategies in the adopted Regional Aviation Plan.  

 

            (2) There are distinct tradeoffs between MOU and JPA approaches.  An MOU-based approach to regional airport governance has the benefits of ease of creation and flexibility.  The qualitative difference between a MOU and JPA approach involves the amount of formal authority invested.  The MOU creates little formal authority.  In contrast, the JPA approach gives the regional entity enhanced powers for achieving the collective goals of its members.  This approach also commits its members to ongoing participation and decision-making processes. A strategy for minimizing the shortcomings of the MOU approach would be to invest it with more structure than is typical of MOU-based organizations. As part of the MOU agreement, the participating parties could agree to meet on a regular basis, and develop bylaws that would structure their deliberations towards achieving identified goals and objectives. 

 

            (3) A “structured” MOU is the preferred approach to creating an initial Regional Airport Consortium.  The Consortium should be based at least initially on the MOU approach, but with more structure than is typical of MOU organizations.  It should have bylaws and meet regularly.  A “structured” MOU-based consortium could eventually evolve into a JPA, after a period of confidence building among the members who may decide that the organization would be enhanced with the greater structure, permanence and continuity of a JPA.  However, the powers of the JPA should not include eminent domain or operating, siting and developing airports, since these powers are inconsistent with the Regional Airport Consortium concept in SCAG’s 2004 RTP.  To allay the concerns of constrained urban airports and their communities, a precondition should be that all legally enforceable constraints and policies cannot be changed by subsequent amendment.  To build needed consensus, a supermajority voting rule may be desirable.  More study would be needed to examine the desirability of evolving the “structured” MOU approach into a JPA, and identifying the optimal membership, powers and duties of the JPA, and whether it should be a reconstituted SCRAA or a new JPA.

 

            (4) Airport consortium roles should include implementing SCAG policies, collaborative marketing, and serving as an information clearinghouse and intergovernmental interface.  The Regional Airport Consortium needs to work hand-in-hand with SCAG in developing and implementing the RTP.  For example, it should rank airport ground access projects for the RTP every three to four years.  The consortium should identify complementary roles and market niches between airports, and promote consideration of innovative ways to achieve improved ground access to underutilized suburban airports, including high-speed rail access.  An academic Peer Review Team, similar to the group formed in New England, might be created to provide needed input and project review.

 

Similarly to the New England Airport Consortium the new entity should consider launching a collaborative marketing venture, bringing the suburban passenger and cargo airports to the attention of the travel and tourist industries, and industries dependent upon air cargo shipments.  Working with the region’s business organizations, the new airport consortium should consider sponsoring a Fly Southern California conference, linking the airports with the airlines and their schedulers, travel agents, the tourist industry, the freight industry, and relevant industry associations.  Collaborative marketing can serve the needs of constrained urban airports as well.  Here the consortium should focus marketing efforts on flights and services most benefiting these urban communities.   

 

The consortium can be a clearinghouse and interface for the region’s airport operators.  Thus, it can share information regarding new federal and state policy mandates, and might serve as a critical coordinating interface between the region’s airport system and relevant federal agencies (such as the FAA, TSA, EPA, and DOT) and their California counterparts.  The consortium can also be a forum for sharing best management practices among the region’s airport operators, such as how to implement air quality plans with cost-effective emission reduction strategies.  Finally, it can share information on innovative financing techniques, particularly needed by the smaller airports to make necessary improvements (see Appendix III). 


       REGIONAL AIRPORT MANAGEMENT STUDY

 

OVERVIEW AND OBJECTIVES

 

The SCAG Region’s current airport management system is among the most decentralized and complex in the nation if not the world.  The 12 urban and suburban commercial airports in the six-county region are operated by ten separate governing bodies, ranging from municipal departments (Los Angeles World Airports and Long Beach’s Public Works Department), to county agencies (e.g., Orange County’s John Wayne Airport), to facilities operated as Joint Powers Authorities (e.g., Bob Hope [formerly Burbank] Airport, operated by the Burbank-Glendale-Pasadena Airport Authority).

 

In recent years the focus of the Region’s airport debate has shifted from finding new airport capacity to better utilization of existing capacity.  The existing urban airports are highly constrained and encroached while available capacity is concentrated at suburban airports in the Inland Empire and north Los Angeles County.  Given that passengers are concentrated in the coastal areas of Los Angeles and Orange Counties, the regional airport ground access issue is becoming paramount.  That challenge will only increase in the future.  By the year 2030, air passenger demand in the SCAG Region is projected to nearly double and air cargo demand to triple.

 

With SCAG’s 2004 adopted Regional Aviation Plan, a dormant Southern California Regional Airport Authority, and proposed legislation to create a Southern California Regional Aviation Commission (AB 1197), this is an appropriate time to consider new regional governance, management, and coordination mechanisms for the Region’s airport and ground access systems.  The Regional Aviation Plan recommends decentralizing passenger and air cargo service from congested urban airports to outlying suburban airports where capacity is available.  Its implementation requires identifying appropriate regional governance mechanisms and strategies to better coordinate the Region’s airport, ground access, and related planning and development.  This Regional Airport Management Study addresses that need. 

  

What are the most promising available alternatives in terms of governance and management structures for the SCAG Region’s multi-airport and ground access systems?  Other large metropolitan areas have faced similar challenges in designing effective regional governance and coordination arrangements for multi-airport and ground access systems.  A host of different governance approaches have been developed.  One model features a state (or even multi-state) multi-purpose authority operating airports, ports, bridges and tunnels.  This is the case in the New York and Boston metropolitan areas.  Even here coordination challenges can arise.  In New England, Greater Boston’s population growth has crossed state lines, creating demand for suburban airports.  Thus, Massport (a state agency operating Boston’s congested Logan International Airport and other facilities) faces the challenge of coordinating airport planning and marketing with neighboring states. 

 

Elsewhere, local governments—counties, cities, regional authorities, or joint powers authorities—manage one or more facilities in multi-airport systems.  For example, in South Florida, county agencies run airports in Miami-Dade, Palm Beach, and Fort Lauderdale-Hollywood.  In the Bay Area, city agencies or municipally appointed district boards manage the San Francisco, Oakland, and San Jose international airports.  In such cases, potential coordination involves co-equal jurisdictions.  Other metropolitan areas are of interest because they are experimenting with new airport governance systems.  In San Diego County, a Regional Airport Authority has been created to operate and even expand Lindbergh Field, and to site, plan, build, and operate a new regional airport.  Also of interest are structures of representation.  Each regional airport governance arrangement features a distinct system of representation, ranging from state appointees to regional and locally appointed or elected representatives.    

 

The purposes of this study are to: (a) identify, compare, and evaluate the leading approaches to regional airport and ground access governance and coordination; (b) determine what management system is most appropriate for the SCAG Region consistent with the 2004 RTP’s “Regional Airport Consortium” concept; and (c) develop an efficient implementation plan for the selected prototype(s).  Methodologically, we review existing surveys and research, and conduct a supplemental survey of 18 large metropolitan area’s airport governance and transportation systems (using the internet, telephone surveys, and other sources).   Based upon this research, we offer in-depth analyses of five exemplar regional case studies depicting leading airport management and ground access coordinating approaches of relevance to the SCAG region.

 

This Regional Aviation Management Study is one of the elements of the Regional Aviation Implementation Study.  The other elements include: (a) the Ground Access Element (located in the 2004 RTP Technical Appendix, pp. D-6-86 through D-6-177); and (b) the Financial Element (which can be found in Appendix III of this report).