location : arizona league of cities and towns – tucson, az date: august 31, 2011
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The Future of Aviation in Arizona. Stacy Howard – Aircraft Owners and Pilots Asoociation Casey Denny, CM, CAE – AzAA Immediate Past President Jennifer Maples, AAE – AzAA President (2011-2012). Location : Arizona League of Cities and Towns – Tucson, AZ Date: August 31, 2011. Today’s Agenda. - PowerPoint PPT PresentationTRANSCRIPT
Location: Arizona League of Cities and Towns – Tucson, AZ
Date: August 31, 2011
The Future of Aviation in Arizona
Stacy Howard – Aircraft Owners and Pilots AsoociationCasey Denny, CM, CAE – AzAA Immediate Past President Jennifer Maples, AAE – AzAA President (2011-2012)
• “Aviation System” and Funding Basics
• The FAA Shutdown – What is happening in Congress?
• Future of Aviation in Arizona
Today’s AgendaToday’s Agenda
Membership:
-160 Executive
-125 Associate
- 85 Corporate
Formed in 1979
AzAA’s Mission– Provide information, expertise
and support
– Assist in development of air transportation in Arizona
– Network with pilots, operators, and aviation businesses
Arizona Airports AssociationArizona Airports Association
• A. Less than 20
• B. 35
• C. 83
• D. Over 200
How many airports are in AZ?How many airports are in AZ?
Arizona’s Airports– Over 200 airports– 83 “system” airports
– Commercial (11)– General Aviation (48)– Private (24)
– Military (5)– 55 eligible for state
funding
Source: 2008 ADOT System Plan
• Air Cargo – Small Package (light weight, time critical)– Aerospace, Automotive,– Computer, Banking– Perishable – Pharmaceutical, Medical
• Passenger Service– Scheduled Airlines– Charters– Air Tours
Commercial Aviation ActivityCommercial Aviation Activity
General Aviation ActivityGeneral Aviation Activity
General Aviation ActivityGeneral Aviation Activity
• Business or residential “Airpark”
• Distribution & warehousing
• Manufacturing
Non-Aeronautical ActivityNon-Aeronautical Activity
• 43,000,000+ passengers
• 680,000+ tons of cargo
• 4th in total number of registered pilots
• 11th in total number of aircraft
• 5 of the Top 20 busiest GA airports– Deer Valley, Falcon Field, Prescott, Goodyear, Scottsdale
• 5 of the 8 largest Flight Schools
Source: AOPA, FAA
• $38.5 Billion annual economic impact to Arizona• $1.8 Billion in annual tax revenue• Direct and indirect employment of 470,000 jobs
– $14.7 Billion in payroll (10% of the total AZ employment)
• Core “system” of infrastructure is user funded!– Federal - Airport and Airway Trust Fund– State Aviation Fund
Source: 2008 ADOT System Plan
National Airport & Airway Trust FundNational Airport & Airway Trust Fund
19
500 165
National Airport & Airway Trust FundNational Airport & Airway Trust Fund
Airport Improvement Program (AIP)
• Grant program for airport capital projects
• No General Fund revenue used in AIP
• 5-year planning cycle
• May fund up to 95% of eligible costs
National Airport & Airway Trust FundNational Airport & Airway Trust Fund
How much AIP funding did Arizonaairports receive in 2010?
• A. Less than $25 Million
• B. $75 Million
• C. $100 Million
• D. Over $150 Million
AZ AIP Funding in 2010AZ AIP Funding in 2010
How much AIP funding did Arizonaairports receive in 2010?
• A. Less than $25 Million
• B. $75 Million
• C. $100 Million
• D. Over $150 Million
AZ AIP Funding in 2010AZ AIP Funding in 2010
Airport Improvement Program (AIP)Airport Improvement Program (AIP)
AIP – More than PavementAIP – More than Pavement
AIP - More than PavementAIP - More than Pavement
• User fees and taxes– Flight property tax, aviation fuel tax, registration fees
• May fund up to 90% of eligible costs• May fund 2.5% match to federal grants
(federal/state/local)• Pavement Maintenance• Statewide System Planning• Considered one of the best state aviation systems
State Aviation FundState Aviation Fund
• Over 200 airports; 83 system airports; 55 eligible for capital funding
• High level of aviation activity in Arizona• Aviation Activity = Economic Activity = $38.5 Billion• Capital Programs Support by User Fees
– Federal AIP– State Aviation Fund
System & Funding BasicsSystem & Funding Basics
Current Issues
FAA ShutdownFAA Shutdown
• Congress failed to “reauthorize” spending authority of the FAA
• How long has it been since Congress approved a multi-year FAA authorization?– Over 3 months?– Over 6 months?– Over 2 years?– Over 4 years?
FAA ShutdownFAA ShutdownWhat Happened?!What Happened?!
• Long term reauthorization stopped in 2007– 20 “short term” continuing resolutions since that
time, with last expiring July 22, 2011
• July 23: FAA Authorization Stops Completely!
• 4,000 FAA staff furloughed (ATC not affected)
• 250 projects: 28,000 to 40,000 jobs on hold
• Why?
FAA ShutdownFAA ShutdownWhat Happened?!What Happened?!
• 28 AZ projects worth $58 million immediately in jeopardy
• Reimbursement of existing projects halted– 109 projects worth $250 million
• Airspace reviews stopped• Change order approval stopped • Grant coordination stopped• $200-$300 million in system revenue GONE• PROBLEM IS NOT SOLVED!
FAA Shutdown – Az ImpactsFAA Shutdown – Az Impacts
Look – a cool airplane!Look – a cool airplane!
• State Airports System Plan (SASP)– The SASP identifies the actions needed to
ensure that Arizona has a system of airports to meet its needs.
– When considering all identified needs to meet the 20-year performance goals:
$2.45 billion
State Aviation NeedsState Aviation Needs
State Aviation NeedsState Aviation Needs
State Aviation NeedsState Aviation Needs
Az System Needs 2,450,000,000
FAA – AIP (75,000,000 x 20=) 1,500,000,000
State Aviation Fund (18,000,000 x 20=) 360,000,000
Shortfall <590,000,000>
Do the math…Do the math…
What percentage of State Aviation Funds were diverted between 2000-2009?
• A. Less than 10%
• B. 22%
• C. 43%
• D. Over 50%
Diversion of Aviation FundsDiversion of Aviation Funds
State Aviation FundingState Aviation Funding
Equals 43% of TOTAL Revenue
• Airport Capital Funding is being disrupted
• Federal Level: No long term AIP funding authorization for over four years.
• State Level: Legislative Sweep of State Aviation Funds
Airport Capital Fund IssuesAirport Capital Fund Issues
• The Result?
• Your communities & airports are losing:• Revenue • Jobs• Related economic impact
Airport Capital Fund SourcesAirport Capital Fund Sources
Future of Aviation in Arizona
• Arizona will continue to have the perfect climate for aerospace– Weather, Workforce, Industry, Tourism– All the needed elements for aviation growth
Forecast GrowthForecast Growth
Forecast GrowthForecast Growth
• Implementation of Next Gen– Overhaul of the National Airspace System– Conversion from ground based to satellite based – Aircraft will be able to fly more precisely, closer
together, more directly– PHX already implementing more efficient flight
procedures
TechnologyTechnology
TechnologyTechnology
• Unmanned Aerial Systems– Arizona has potential to be a center of UAS
development– Currently lagging in this race
TechnologyTechnology
• Arizona State University Aviation “Collaboratory” – Industry, University, and Government coming
together to address aviation system issues
• Arizona Commerce Authority– Aerospace & Defense is one of 3 key target
areas
Economic DevelopmentEconomic Development
• Will legislature leave the State Aviation Fund alone?
• Will federal government pass long term reauthorization?
• Decades of success – uncertain future.
Funding?Funding?
• Include the State Aviation Fund on your government affairs watch list – protect it!
• Lobby your congressional delegation to pass long term FAA reauthorization bills– If successful, do it again in 2-3 years!
• Include airport development in your communities economic development efforts
• Contact us if you need a hand!
How You Can Help…How You Can Help…
• Third week in January
• Aviation interests host a luncheon for State legislators
• Aviation displays on the Capitol Mall
• Over 400 people attended in 2011
Arizona Aviation DayArizona Aviation Day
Airplane MishapsAirplane Mishaps