Date: 07/23/2014

Final
Briefing by the Aviation Industry

TRANSPORTATION LEGISLATION REVIEW COMMITTEE

Votes: View--> Action Taken:
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03:12 PM -- Briefing by the Aviation Industry

Mr. Patrick Heck, representing the Denver International Airport (DIA), introduced himself to the committee. A handout was distributed (Attachment G). Mr. Heck said that DIA is the fifth busiest airport in the country and that it had 52.5 million passengers last year. He said that DIA is the third largest air service network in the country. He discussed shopping and dining at DIA and stated that in 2013, the airport had a record of $295 million in gross revenue. He commented on the financial strength of the airport and the cost per enplaned passenger compared to competing airports. He commented on Phase 1 of the construction of the Westin Hotel and the commuter rail to Denver Union Station. He discussed transit oriented development and said that the commuter rail will generate development opportunities.

14TLRC0723AttachG.pdf14TLRC0723AttachG.pdf

03:25 PM

Mr. David Gordon, Division of Aeronautics, CDOT, introduced himself to the committee. A handout was distributed (Attachment H). He said that there are 74 public use airports in Colorado, of which 13 are commercial, 50 are publicly owned general aviation, and 11 are privately-owned. He discussed the economic benefits of aviation, including jobs, payroll, and output, or total annual economic activity. He said that from 2008 to 2013, the economic benefit increased from $32.2 billion to $36.7 billion. He commented on aviation tax revenue and said that the Division of Aeronautics operates entirely through the state Aviation Fuel Tax revenue.

14TLRC0723AttachH.pdf14TLRC0723AttachH.pdf

03:32 PM

The committee took a brief recess for a fire alarm.


03:52 PM

The committee came back to order. Mr. Gordon continued his discussion on aviation fuel tax revenue. Representative Becker asked for more information about federal dollars for aviation.


03:55 PM

Mr. Gordon commented on unmanned aerial systems (UAS) and said that Congress directed the FAA to develop rules for UAS integration into the national airspace system by 2015. He said that the division is considering establishment of a test facility to promote UAS development in Colorado and discussed facility stakeholders. He said that test and evaluation facility development goals include establishing UAS operational requirements and deploying surveillance technologies in support of the test activities.


03:59 PM

Mr. Kenny Maenpa, representing Rocky Mountain Metropolitan Airport and the Colorado Airport Operators Association (CAOA), introduced himself to the committee. He commented on the mission of the CAOA and said that it provides a unified voice to statewide airports. It promotes understanding of the value of aviation and that Colorado airports account for $36.7 billion in total economic activity. He commented on the Colorado Discretionary Aviation program.


04:06 PM

Mr. David Ruppel, representing Yampa Valley Regional Airport, introduced himself to the committee. A handout was distributed (Attachment I). He said that 70 percent of the winter vacation visitors arrive through the airport and that the airport is a key asset in the development of location neutral businesses. He said that 186,672 people used the airport in 2013/2014. It is one of only three 10,000 foot runways west of the Front Range. He commented on the airport's role in the Yampa Valley's infrastructure and stated that it is the seventh busiest commercial airport in Colorado. He commented on the air service issue and said that every person that travels in and out of the airport is essentially receiving a $30 subsidy on their ticket paid by the airport, the Ski Corporation, and the Local Marketing District .25 percent sales tax.

14TLRC0723AttachI.pdf14TLRC0723AttachI.pdf

04:13 PM

He commented on the Colorado Surveillance Project, which is a cooperative effort between the state, mountain airports, and the FAA to advance NextGen by deploying the emerging technologies to bring radar-like service to the mountain airports. He discussed the needs for improved surveillance. He commented on the challenges of mountain airports. Representative Tyler asked about expansion projects. Representative Mitsch Bush thanked Mr. Ruppel for his work.


04:21 PM

Mr. Chris Cole, representing Steamboat Springs Airport, introduced himself to the committee. A handout was distributed (Attachment J). He said that the airport encompasses roughly 254 acres of land at an elevation of 6,878 feet. He stated that the airport has an economic impact of $8.8 million. He said that the activity of the airport is seasonal and that the airport generates revenue year-round by collecting facility fees. He commented on the strengths of the airport, including its location, based aircraft, and the demand for hanger space and parking spaces.

14TLRC0723AttachJ.pdf14TLRC0723AttachJ.pdf

04:28 PM

He discussed challenges of the airport, including competition of for local funding, difficult terrain, and costs exceeding revenue. He commented on grant opportunities for the airport from the FAA and CDOT aeronautics funding. Representative Mitsch Bush thanked Mr. Cole for his work.


04:37 PM

Mr. Robert Olislagers, representing Centennial Airport, introduced himself to the committee. He commented on recent legislation in Colorado related to aviation. He discussed House Bill 05-1314, concerning the creation of aviation development zones to offer economic incentives for aircraft manufacturers, and House Bill 13-1080, concerning modifications to the Colorado manufacturer new employee tax credit. He commented on House Bill 14-1374, concerning the inclusion of on-demand carriers in the sales and use tax exemption for certain aircraft. He discussed the impact of the passage of these bills and the importance of retaining aviation businesses in Colorado.


04:47 PM

The committee adjourned.