Date: 08/21/2012
Final
Briefing by the Aviation Industry
TRANSPORTATION LEGISLATION REVIEW COMMITTEE
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10:47 AM -- Briefing by the Aviation Industry
Representative Vaad called the committee back to order. Ms. Kim Day, Mr. David Gordon, and Mr. Robert Olislagers came to the table and introduced themselves.
Ms. Day presented information on Denver International Airport (DIA) focusing on the airport's passenger traffic and economic impacts, as well as its plans to redevelop aging facilities, expand, and incorporate new amenities, including the 519 room Westin Hotel and a light rail station. Ms. Day said there will be a "pin removal" ceremony with Mayor Hancock on August 29 to celebrate the progress of these projects. She reviewed several initiatives at DIA, including NextGen, which uses satellite and GPS technology, instead of radar, and will help DIA to redesign and optimize its airspace. She said the airport is also upgrading its 45-minute waiting area and is in the process of rebidding its concession contracts with the goal of incorporating more local vendors.
According to Ms. Day, about 40 percent of DIA's revenues are generated from concessions, which is less than many other airports. She said that they are focusing on increasing revenue from concessions as that could lower costs for the carriers. Representative Vaad asked about parking fees, to which Ms. Day responded that they are about 20 percent of DIA's revenues.
In conclusion, Ms. Day reviewed service improvements, highlighting the addition of several international routes, including service to Reykjavik, Iceland; Tokyo, Japan; and Mexico City, Mexico. She said that she believes these new routes will create opportunities for persons to have greater access to Europe, South America, and Asia.
Representative Priola asked whether the original baggage system would be installed. Ms. Day said that DIA is looking at ways at upgrading the current system, but do not have plans to use the original baggage system. Representative Jones asked about NextGen and what redundancies exist in the system. Ms. Day said the system is triangulated and does not rely on a single satellite. Senator Spence asked about the lifespan of the tents covering the main terminal. According to Ms. Day, their lifespan is 30 years, although they discovered some damage from a storm a few years ago will require some panels to be replaced in advance of the 30 year time frame.
Senator Williams asked how DIA is partnering with the medical center in Aurora. Ms. Day responded that while DIA does not track medical tourism data, she believes that the Chamber of Commerce is promoting medical tourism in partnership with the Fitzsimmons campus. Representative Vaad discussed his understanding of the requirements of interoperability between transponders for public highway authorities and asked whether the airport had plans to incorporate this technology within its parking facilities. Ms. Day said the airport continues to have discussions with E-470, but they have no current plans to adopt this technology for fiscal reasons. Senator Schwartz asked for more detail about the NextGen initiative. According to Ms. Day, the first portion of the initiative will be installed at DIA in November, but that overall, implementation will take six to eight years.
11:13 AM
Mr. David Gordon, representing the Colorado Department of Transportation (CDOT), introduced himself and provided an overview of Colorado's Division of Aeronautics. A handout was distributed to the committee (Attachment C). Mr. Gordon said that the division operates solely on revenues from aviation fuel taxes and returns 65 percent of those moneys to the airport where the fuel was sold and 31.5 percent to airports through a grant program that prioritizes systems and capital improvements. He said a major focus of the grant program is to assist local airports in meeting match requirements for federal grants, which is usually 10 percent. Mr. Gordon also reviewed several of the division's ongoing and special projects, including: its airport directory, its aviation map, studying aviation-related economic impacts, updating the statewide system plan, implementation of 12 automated weather stations in mountain pass areas, and the Mountain Radar surveillance project, which is also part of the NextGen initiative.
Senator Schwartz asked about the status of incorporating the Mountain Radar surveillance project at the Aspen, Eagle, Gunnison, and Alamosa airports. Mr. Gordon responded that the Eagle and Aspen airports have towers and local radar that allow them to get traffic information at the higher flow rates. He continued that Gunnison is part of the project's second phase and should get the new technology within the next year, but Alamosa is not yet in the project. Representative Vaad asked whether there are any plans to change the distribution of aviation fuel taxes, to which Mr. Gordon replied he was not aware of any.
11:30 AM
Mr. Olislagers, representing Centennial Airport, introduced himself to the committee. He discussed the traffic patterns at the airport, stating that Centennial is the third largest general aviation airport in the United States, but is still comparable to commercial airports, such as San Francisco International and New York's JFK International airport. Mr. Olislagers reviewed the airport's economic impacts and services, including charter service and air ambulances. He said the airport maintains a focus on corporate travel, flying non-stop to places such as Moscow and Beijing, among other destinations. He continued that the airport is involved in pilot training, supports the City and County of Denver's helicopter program, and has several companies working on research projects at its location, including Sierra Nevada.
Representative Vaad acknowledged the presence of Heather Barry from the Transportation Commission and asked Mr. Olislagers whether Centennial airport just shares airspace with DIA or if it is a reliever airport. Mr. Olislagers said Centennial is set up to relieve congestion from other airports.
Representative Jones asked about the size of Rocky Mountain Airport. Mr. Gordon responded that it is a midsize airport, estimating there are 300-400 aircraft based there.
Senator Spence asked for information about the governance structure of DIA, asking whether the airport reports to a board or the mayor. Ms. Day said the airport is overseen by the Mayor, but that the City Council approves its contracts. Mr. Olislagers contributed that Centennial is an airport authority and, as such, is a quasi-governmental entity reporting to a five-member voting board in Arapahoe County and a three-member nonvoting board in Douglas County. He emphasized that Centennial Airport works collaboratively with all the surrounding cities, particularly in response to noise complaints.