Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
Official Statement Airport Commission City and County of San ...
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Operating Revenues<br />
General<br />
Under the Lease Agreements, the <strong>Airport</strong>’s operating budget <strong>and</strong> non-airline revenue sources are projected<br />
for each new Fiscal Year. Then, using a residual cost methodology, airline l<strong>and</strong>ing fees <strong>and</strong> terminal rental rates are<br />
set such that estimated total <strong>Airport</strong> revenues each Fiscal Year are equal to estimated total <strong>Airport</strong> operating costs,<br />
which include debt service <strong>and</strong> certain capital items as well as general operation <strong>and</strong> maintenance expenses.<br />
Increases in non-airline revenue sources generally result in decreases in airline l<strong>and</strong>ing fees <strong>and</strong> terminal rental rates.<br />
See “SAN FRANCISCO INTERNATIONAL AIRPORT–Existing Airline Agreements–Lease Agreements.”<br />
Terminal Rental Rates <strong>and</strong> L<strong>and</strong>ing Fees<br />
For Fiscal Year 2009-10, annual terminal rental rates range from $176.11 per square foot for Category I<br />
space (ticket counters <strong>and</strong> hold rooms) to $17.61 per square foot for Category V space (unenclosed or covered areas<br />
at ramp level) space, with an average rate per square foot <strong>of</strong> $100.61. Fiscal Year 2008-09 rates were $167.32 per<br />
square foot for Category I space <strong>and</strong> $16.73 square foot for Category V space, with an average rate per square foot<br />
<strong>of</strong> $95.85.<br />
The l<strong>and</strong>ing fee rate for Fiscal Year 2008-09 is $3.00 per thous<strong>and</strong> pounds <strong>of</strong> l<strong>and</strong>ed weight compared to<br />
$3.01 per thous<strong>and</strong> pounds <strong>of</strong> l<strong>and</strong>ed weight for Fiscal Year 2007-08. Operators without a lease or an operating<br />
permit will pay a supplemental l<strong>and</strong>ing fee charge <strong>of</strong> $0.30 per thous<strong>and</strong> pounds <strong>of</strong> l<strong>and</strong>ed weight. For Fiscal<br />
Year 2009-10, the minimum l<strong>and</strong>ing fee for fixed wing aircraft is $140 compared to $134 for Fiscal Year 2008-09.<br />
Because <strong>of</strong> the variety <strong>of</strong> methodologies used by different airports to calculate airline l<strong>and</strong>ing fee <strong>and</strong><br />
terminal rental rates, such fees <strong>and</strong> rates are not directly comparable between airports. However, terminal rental<br />
rates <strong>and</strong> l<strong>and</strong>ing fees represent a small proportion <strong>of</strong> over-all costs to the airlines per enplaned passenger at the<br />
<strong>Airport</strong>, <strong>and</strong> are not a primary consideration in the establishment <strong>and</strong> maintenance <strong>of</strong> routes <strong>and</strong> schedules. Instead<br />
<strong>of</strong> rates, airline payments per passenger (for l<strong>and</strong>ing fees <strong>and</strong> terminal rental rates) is the principal index commonly<br />
used to compare the costs to the airlines for their facilities at different airports. On a GAAP basis, airline payments<br />
per enplaned passenger at the <strong>Airport</strong> were $14.29 in Fiscal Year 2008-09 compared to $13.20 in Fiscal<br />
Year 2007-08 <strong>and</strong> compared to $14.26 in Fiscal Year 2006-07. Overall, costs to the airlines are expected to rise in<br />
the near term, primarily due to the construction <strong>of</strong> capital projects needed to serve the current dem<strong>and</strong> for domestic<br />
terminal space. See “CAPITAL PROJECTS AND PLANNING.” Passenger traffic is expected to reflect low growth rates<br />
based on a slow economic recovery from the global recession. These factors are expected to cause an increase in the<br />
airline payments per passenger during the next few years.<br />
Terminal rental rates <strong>and</strong> l<strong>and</strong>ing fees are adjusted annually on July 1. The Lease Agreements do not<br />
require the airlines, either individually or as a group, to maintain any minimum level <strong>of</strong> l<strong>and</strong>ed weight at the <strong>Airport</strong>.<br />
A summary <strong>of</strong> historical <strong>and</strong> current l<strong>and</strong>ing fees for scheduled aircraft with a lease or operating permit <strong>and</strong> average<br />
terminal rental rates <strong>and</strong> those for the last five Fiscal Years is set forth below.<br />
HISTORICAL AND CURRENT LANDING FEES AND TERMINAL RENTALS<br />
(Fiscal Years)<br />
L<strong>and</strong>ing Fees (per thous<strong>and</strong> pounds)<br />
Minimum L<strong>and</strong>ing Fee (fixed wing)<br />
Minimum L<strong>and</strong>ing Fee (rotary)<br />
Average Terminal Rental Rate (per square foot)<br />
__________________<br />
Source: <strong>San</strong> Francisco <strong>Airport</strong> <strong>Commission</strong>.<br />
2005-06<br />
$3.213<br />
109<br />
55<br />
90.16<br />
67<br />
2006-07<br />
$3.336<br />
123<br />
62<br />
94.61<br />
2007-08<br />
$3.010<br />
127<br />
64<br />
91.60<br />
2008-09<br />
$3.000<br />
134<br />
67<br />
95.85<br />
2009-10<br />
$3.150<br />
140<br />
70<br />
100.61