HomeMy WebLinkAboutI. A. Norfolk International Airport Update and Masterplan 11.12.2024State of the Airport
City Council Briefing
November 12, 2024
Mark Perryman, Executive Director & CEO
November 2024 1
Who Are We?
•The Norfolk Airport Authority is an independent political subdivision
of the Commonwealth of Virginia
•Governed by a nine-member board of commissioners appointed by
Norfolk City Council
•The Authority independently owns and operates Norfolk International
Airport
•We are a “city” within a city – we employ 225+ personnel functioning
in the roles of administration, operations, parking, police, aircraft rescue
and fire fighting, janitorial, building maintenance, and field maintenance
November 2024 2
We Are a Business
•Just like any business:
•We earn revenue
•We incur costs
•Our operations are self-supporting
•We receive no local taxes or subsidies
•Our major revenue sources (FY 2024):
•Parking (38%)
•Rental Car (14%)
•Airline Landing Fees (15%)
•Rent/Leases (23%)
•Concession Commissions (9%)
•Other (1%)
November 2024 3
Our Economic Impact
November 2024 4
Commercial Aviation Market
5November 2024
6
Air Access
To a traveler, a commercial service airport’s
performance is judged by its:
a.Connectivity to the national air transportation
system
b.Convenience of service
c.Affordability of flights
However, all of these are out of the direct
control of the airport operator…
November 2024
Our Market Strength Continues to Grow
•2024 should be another
record-breaking year!
•January through September
were each record months
•July was busiest month in
the airport’s history
•Up nearly 10% YTD 2024
•On pace to reach 5 million
passengers in 2024
7November 2024
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Passengers
2024 2023 2022 2021 2020
Passenger Traffic Recovery
3,864,5223,876,6661,744,7383,245,1954,109,5864,552,5823,678,9020
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
Historic Total Annual Passengers
November 2024 8Fully Recovered from COVID-19YTD Through September(84%)(45%)(106%)(118%)
November 2024 9
Nonstop Destinations Served
Number of Nonstop Destinations
November 2024 10
Airline Data Inc. as of 7/12/2024
24 24 23 21 21
18 19
22 24
30 30
35
39 40
45
0
5
10
15
20
25
30
35
40
45
50
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Origin Airport
Code
Total Nonstop
Markets
2023
Passengers
CVG 54 8,738,239
CHS 53 6,153,540
CMH 48 8,375,611
IND 48 9,788,867
OAK 48 11,239,075
SMF 48 12,977,001
SNA 47 11,741,325
CLE 46 9,868,868
PBI 46 7,764,458
JAX 45 7,446,084
ORF 45 4,552,582
SAT 45 10,676,570
ANC 44 5,587,528
BUR 41 6,034,729
SJC 41 12,097,160
BDL 40 6,248,165
MKE 33 6,015,731
MEM 32 4,963,502
OMA 32 5,026,639
OGG 30 7,736,001
ABQ 29 5,310,964
ONT 27 6,429,986
RNO 26 4,573,384
BOI 25 4,752,757
Our Air Service Needs – Domestic
2024 Top 50 Domestic Destinations
Note: Highlighted markets are the top unserved non-stop destinations
November 2024 11
Pax Rank Destination Airport City Airport Code PDEW Passengers Avg Fared Fare Fared Yield
1 Orlando, FL MCO 335.6 245,675 $ 104.37 $ 21.18
2 Atlanta, GA ATL 229.9 168,319 $ 244.66 $ 28.05
3 Tampa, FL TPA 180.4 132,071 $ 114.87 $ 16.90
4 Fort Lauderdale, FL FLL 177.8 130,179 $ 95.29 $ 17.76
5 Dallas/Ft. Worth, TX DFW 175.7 128,648 $ 256.78 $ 14.58
6 San Diego, CA SAN 163.5 119,649 $ 297.12 $ 9.90
7 Chicago, IL ORD 158.6 116,082 $ 197.79 $ 30.26
8 New York, NY LGA 157.7 115,420 $ 146.98 $ 30.14
9 Denver, CO DEN 146.6 107,286 $ 241.79 $ 13.17
10 New York, NY JFK 137.4 100,541 $ 134.18 $ 18.80
11 Las Vegas, NV LAS 131.0 95,926 $ 257.62 $ 11.19
12 Newark, NJ EWR 127.1 93,071 $ 142.99 $ 15.12
13 Los Angeles, CA LAX 123.5 90,402 $ 295.36 $ 11.76
14 Jacksonville, FL JAX 120.7 88,366 $ 139.03 $ 23.13
15 Houston, TX IAH 117.9 86,329 $ 222.84 $ 13.93
16 Boston, MA BOS 108.5 79,412 $ 190.27 $ 30.54
17 Nashville, TN BNA 107.0 78,302 $ 197.51 $ 28.98
18 Miami, FL MIA 92.9 68,010 $ 226.27 $ 15.73
19 New Orleans, LA MSY 92.3 67,539 $ 159.25 $ 15.87
20 Seattle, WA SEA 89.7 65,689 $ 346.40 $ 13.31
21 Chicago, IL MDW 83.3 61,009 $ 162.84 $ 8.34
22 Phoenix, AZ PHX 82.6 60,481 $ 320.41 $ 10.71
23 Providence, RI PVD 81.0 59,293 $ 113.91 $ 31.89
24 Detroit, MI DTW 77.8 56,956 $ 266.37 $ 33.54
25 San Antonio, TX SAT 69.9 51,151 $ 246.30 $ 12.28
Pax Rank Destination Airport City Airport Code PDEW Passengers Avg Fared Fare Fared Yield
26 Charlotte, NC CLT 65.3 47,818 $ 229.92 $ 34.67
27 St. Louis, MO STL 54.8 40,090 $ 217.52 $ 20.97
28 Hartford, CT BDL 54.7 40,011 $ 107.74 $ 34.20
29 Austin, TX AUS 54.5 39,905 $ 270.42 $ 13.88
30 Minneapolis/St. Paul, MN MSP 52.0 38,072 $ 277.79 $ 20.84
31 San Francisco, CA SFO 51.6 37,756 $ 372.00 $ 10.77
32 Ba ltimore , MD BWI 49.3 36,066 $ 164.48 $ 8.28
33 San Juan, PR SJU 47.1 34,451 $ 236.81 $ 9.37
34 Honolulu, HI HNL 46.1 33,772 $ 607.64 $ 7.79
35 Kansas City, MO MCI 45.9 33,603 $ 258.29 $ 19.20
36 Salt Lake City, UT SLC 45.7 33,452 $ 361.53 $ 10.64
37 Indianapolis, IN IND 43.0 31,495 $ 207.62 $ 26.16
38 Philadelphia, PA PHL 42.9 31,396 $ 250.17 $ 38.86
39 Charleston, SC CHS 40.6 29,746 $ 138.98 $ 25.73
40 Pensacola, FL PNS 40.0 29,284 $ 228.70 $ 16.26
41 Pittsburgh, PA PIT 38.4 28,081 $ 149.63 $ 40.78
42 Cincinnati, OH CVG 37.8 27,689 $ 170.22 $ 28.08
43 Fort Myers, FL RSW 36.3 26,573 $ 169.95 $ 13.07
44 Columbus, OH CMH 36.3 26,558 $ 147.22 $ 30.37
45 Houston, TX HOU 35.3 25,857 $ 196.35 $ 5.52
46 Sanford, FL SFB 34.8 25,487 $ 35.71 $ 0.45
47 Me mphis , TN MEM 34.3 25,110 $ 229.89 $ 18.68
48 Portland, OR PDX 33.2 24,304 $ 353.64 $ 9.15
49 Sacramento, CA SMF 32.6 23,887 $ 345.70 $ 8.43
50 West Palm Beach, FL PBI 32.6 23,833 $ 244.56 $ 11.18
Our Air Service Needs – International
2024 Top 25 International Destinations
November 2024 12
Pax Rank Destination Airport City Airport Code PDEW Passengers Avg Fared Fare Fared Yield
1 Cancun, Mexico CUN 31.5 23,093 $ 288.07 $ 8.36
2 Montego Bay, Jamaica MBJ 27.2 19,889 $ 336.31 $ 7.81
3 London, UK LHR 22.2 16,237 $ 668.79 $ 16.81
4 Punta Cana, DR PUJ 19.9 14,569 $ 365.53 $ 7.28
5 Manila, Philippines MNL 15.5 11,379 $ 1,014.34 $ 12.71
6 Toronto, ON YYZ 12.0 8,810 $ 268.02 $ 39.15
7 Paris, France CDG 10.9 7,951 $ 767.09 $ 12.56
8 Frankfurt, Germany FRA 10.3 7,574 $ 648.15 $ 9.92
9 Tokyo, Japan HND 10.1 7,415 $ 1,006.16 $ 12.88
10 Rome, Italy FCO 10.1 7,412 $ 805.97 $ 11.75
11 Nassau, Bahamas NAS 9.1 6,629 $ 323.31 $ 8.54
12 Arub a , Arub a AUA 8.4 6,151 $ 366.25 $ 5.66
13 San Jose, Costa Rica SJO 7.8 5,702 $ 379.30 $ 6.45
14 Liberia, Costa Rica LIR 7.0 5,121 $ 420.95 $ 6.35
15 San Jose Del Cabo, Mexico SJD 6.9 5,056 $ 382.25 $ 5.56
16 Amsterdam, Netherlands AMS 6.8 5,014 $ 766.86 $ 13.41
17 Athens, Greece ATH 6.8 4,988 $ 895.65 $ 12.29
18 Montreal, QC YUL 6.5 4,790 $ 283.45 $ 38.54
19 Manama, Bahrain BAH 6.0 4,423 $ 1,069.66 $ 9.50
20 Mexico City, Mexico MEX 6.0 4,404 $ 367.18 $ 7.74
21 Munich/Augsburg, Germany MUC 6.0 4,391 $ 837.18 $ 9.96
22 Vancouver, BC YVR 5.5 4,036 $ 477.02 $ 13.39
23 Seoul, Republic of Korea ICN 5.3 3,905 $ 1,082.28 $ 7.71
24 Madrid, Spain MAD 5.1 3,756 $ 739.03 $ 10.13
25 Turks and Caicos PLS 5.1 3,750 $ 416.42 $ 6.62
Top Unserved U.S. Transatlantic Markets
•Kansas City – 216,964 passengers (296.4 PDEW)
•Indianapolis – 211,752 (289.3)
•Fort Lauderdale, Fla. – 190,671 (260.5)
•Jacksonville, Fla. – 180,559 (246.7)
•Columbus, Ohio – 174,647 (238.6)
•Norfolk – 121,677 (166.2)
•Charleston, S.C. – 119,278 (162.9)
•Sacramento – 114,225 (156)
•Louisville – 92,571 (126.5)
•Richmond – 90,571 (123.7)
Source: U.S. DOT T-100 data for
12 months ended June 30, 2024
Risk Mitigation / Incentives
•FAA regulations restrict U.S. airports’ ability to
directly subsidize expanding or new airline
entrants. Airport incentives can include:
•Marketing dollars
•Fee waivers for limited time periods
•Despite the FAA limits, airlines often expect
cash commitments to secure new long-haul
international service prior to committing to a U.S.
route
•Condor – $1.3 million/2 years for San Antonio
•British Airways – $3.5 million/2 years for Pittsburgh
•Lufthansa – $5 million/2 years for St. Louis
•Aer Lingus – $12 million/3 years for Cleveland
November 2024 13
Hampton Roads Coalition
November 2024 14
•Collective efforts are essential.
•Local governments and CVBs
•Businesses and development agencies
•General Assembly
•Norfolk Airport Authority
•Regional leadership and support, including a
mechanism to collect and disperse financial
incentives airports cannot provide alone.
•We’re in the game. Together let’s get a win.
Passenger Profile
15November 2024
16November 2024
Source: Bonney & Company
Purpose of Travel by Year
48%49%48%48%48%49%
52%52%51%52%
44%45%46%47%48%48%46%46%47%46%
8%6%6%5%4%3%2%2%2%2%
0%
10%
20%
30%
40%
50%
60%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Pleasure Business Both/Other
Where Visiting Passengers Stayed
17
Source: Bonney & Company
46%47%
42%
36%36%35%
50%51%49%51%49%48%
8%
12%14%16%
4%2%1%1%1%1%
0%
10%
20%
30%
40%
50%
60%
2018 2019 2020 2021 2022 2023
Hotel Friends/Family Airbnb/VRBO Other
November 2024
Where Visiting Pleasure Passengers Stayed
18
Source: Bonney & Company
77%
13%
31%
31%
1%
1%
10%
3%
3%
3%
1%
13%
11%
0%10%20%30%40%50%60%70%80%90%
Southside (Net)
Norfolk
Virginia Beach
Chesapeake
Portsmouth
Suffolk
Peninsula (Net)
Hampton
Newport News
Williamsburg
Other
Other (Net)
North Carolina
November 2024
Where Visiting Business Passengers Stayed
19
Source: Bonney & Company
85%
31%
32%
19%
1%
2%
12%
7%
3%
1%
1%
3%
2%
0%10%20%30%40%50%60%70%80%90%
Southside (Net)
Norfolk
Virginia Beach
Chesapeake
Portsmouth
Suffolk
Peninsula (Net)
Hampton
Newport News
Williamsburg
Other
Other (Net)
North Carolina
November 2024
Cities Visited by Out-of-Town Passengers
20
Source: Bonney & Company
33%
59%
15%
2%
2%
4%
4%
4%
5%
6%
11%
0%10%20%30%40%50%60%70%
Norfolk
Virginia Beach
Chesapeake
Portsmouth
Suffolk
Hampton
Newport News
Williamsburg
Other Peninsula
North Carolina
Other
November 2024
Home Zip Code of ORF Travelers
21
Source: Bonney & Company
60%
9%
22%
21%
2%
2%
2%
1%
1%
40%
36%
4%
0%10%20%30%40%50%60%70%
Virginia
Norfolk
Virginia Beach
Chesapeake
Portsmouth
Suffolk
Hampton
Newport News
Other
Out-of-State
Other Domestic
International
November 2024
Incidence of Military-Related Travelers
22
Source: Bonney & Company
26%
9%
11%
3%
3%
74%
0%10%20%30%40%50%60%70%80%
Military-related
Active Duty
Govt-related
Civilian Personnel
Military Dependent
No Military Connection
November 2024
ACI Airport Service Quality Survey
November 2024 23
Skytrax – World Airport Audit
November 2024 24
A View to the Future of ORF
November 2024 25
Capital Development Summary
FY
START PROJECT DESCRIPTION PROPOSED
BUDGET
AIP
ENTITLEMENTS
AIP
DISCRETIONARY
AIG
ENTITLEMENTS
ATP
DISCRETIONARY CDS STATE
ENTITLEMENTS
STATE
DISCRETIONARY
LOCAL
FUNDING
(DEBT
SERVICE)
LOCAL
FUNDING
(PAY-GO)
PFC
FUNDING
FUTURE
(ASSUMED
PFC GARBS)
CFC FUNDED BY
OTHERS
FY 24 Alpha Concourse Gate Addition 30,000,000 --8,000,000 -----22,000,000 --
FY 24 Gate 1 Federal Inspection
Services Facility Modernization 30,000,000 --7,000,000 6,000,000 3,000,000 --9,000,000 -5,000,000 --
FY 24
Departures Terminal Program
(Consolidated Checkpoint
Included)
450,000,000 ------230,000,000 109,000,000 111,000,000 --
FY 24 Airport Hotel 50,000,000 ----------50,000,000
FY 24 Closure of Runway 14/32 12,000,000 5,000,000 ---4,000,000 2,000,000 1,000,000 ----
FY 25 CONRAC Facility 200,000,000 ---------200,000,000 -
FY 25 Admin. Offices Consolidation 18,000,000 ------18,000,000 ----
FY 26 Intersection Improvements &
LTW Exit 25,000,000 ------12,500,000 --12,500,000 -
FY26 Fuel Farm 60,000,000 -----------60,000,000
FY 28
Runway 5/23 Reconstruction
(Grading, Drainage and 23 End
Profile Improvements)
45,000,000 10,000,000 10,000,000 --4,000,000 3,000,000 --18,000,000 --
GRAND TOTAL CIP:920,000,000 15,000,000 10,000,000 15,000,000 6,000,000 3,000,000 8,000,000 5,000,000 270,500,000 109,000,000 156,000,000 212,500,000 110,000,000
November 2024 26
$49M $13M $110M$748M
Runway 5/23 Rehabilitation
•Runway 5/23 Rehabilitation of Concrete
Extensions
•Completed in two phases
•Estimated cost of construction is $40 million
for both phases of construction
•Phase 1 (R/W 23 end) completed Nov 2, 2023
•Phase 2 (R/W 5 end) completed October 31, 2024
•Runway 5/23 now back to 9,000’ and fully
capable to accommodate all operations
November 2024 27
Phase 1
Phase 2
Moving Walkways
•Realigned placement into a
split system on the sides of
the pedestrian bridge
•Anticipated
construction is
Aug ‘24 – Feb ’25
•BIL ATP funds will
pay for 80% of the
construction costs
•Cost: $2.5M
November 2024 28
Interior Wayfinding
•Design Complete
May ‘24
•Bidding – Summer ‘24
•Estimated Cost: $3.0M
November 2024 29
New Park and Wait Lot
November 2024 30
•80-space Park & Wait lot
•Cost: $1.2M
•Construction started Feb ’24
•Completion Dec ‘24
Alpha Expansion
31
•3 Holdrooms / Gates / New Restrooms / Pet Relief Area
•Estimated cost: $25M
•Groundbreaking June 10, 2024
•Completion December ‘25
November 2024
CBP International Arrivals Facility
32
•Estimated cost: $25M
•$3.0M Congressionally Directed Spending (CDS)
•$6.0M BIL ATP grant received
•Groundbreaking June 10, 2024
•Completion December ‘25
November 2024
Airport Hotel
•Courtyard by Marriott
•165 rooms
•Rooftop Bar
•Cover connection to terminal
•Fully financed, designed, and
constructed by third-party
developer
•Groundbreaking Winter ‘24
•Completion Spring ‘26
November 2024 33
Main Entrance Intersection Improvements
November 2024 34
•Realign and improve the intersection at the
main entrance to the airport
•Creates a new four-way lighted intersection
•Realigns access from Robinhood Road
•Enables the new Consolidated Rental Car
facility
•Award $14.7M in BIL ATP funds
•Construction to start Summer ’25
Consolidated Rental Car Facility
November 2024 35
•Consolidates all rental
car operations into a
single facility
•Includes a QTA reducing
the need to take cars off
airport for servicing
November 2024 36
•Project Scope:
1.Linear Ticket Lobby
2.Consolidated Checked Bag Inspection
3.Expanded Baggage Make-up Area
4.New Shipping and Receiving Area
5.Consolidated TSA Checkpoint
•CMaR under contract Summer ‘25
•Construction start Summer of ‘26
•Construction complete end of ‘28
Terminal Development
1
23 4
5
November 2024 37
New Departures TerminalNew Airport HotelNew Ticketing & Check-in HallNew International Processing FacilityNew Consolidated Rental Car FacilityPedestrian Bridge between Rental Car Facility and Arrivals
Transform ORF Website
•Website provides updates on the terminal and ongoing projects
•Video found at www.TransformORF.com
November 2024 39
November 2024 40