Reference Guide on Understanding Common Use at Airports (2010)

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50 When an airport operator is considering common use, it is necessary to first analyze the cost-benefit issues and considerations associated with common use. This chapter provides (1) information to help identify and analyze these cost-benefits and (2) tools for guiding an air- port operator through the initial steps of assessing the value that a common-use solution can pro- vide to the airport. Decisionmakers interested in common use need to understand the following high-level concepts: • Each aspect of common use has specific costs associated with it and may provide different sets of benefits. • Business drivers dictate the type of common-use solution that may be implemented. • Different common-use solutions have different sets of benefits and costs associated with them. This chapter approaches common-use related cost-benefit issues with the following methodology: • Establishing an understanding of cost considerations by common-use area. • Breaking down specific benefits by business driver. • Providing self-assessment tools to enable airports to assess – Intangible factors to identify if an airport is a candidate for common use. – Tangible factors to determine costs and provide the basis for the airport to determine if sufficient value can be obtained. To facilitate this approach, Chapter 4 has three sections: Cost Considerations by Area, Cost- Benefit Breakdown by Business Driver, and Business Strategy Assessment. Cost Considerations by Area Each key area of common use has a specific set of costs associated with it. However, many of these areas have overlapping or shared costs. To provide a thorough understanding of the cost factors affecting common use, this section provides independent discussions specific to planning and design as well as the primary common-use functions of check-in counters, curbside check- in, off-site check-in, gate areas, flight and baggage information displays, ramp control services, and ground handling services. Within each of these areas, costs are addressed in terms of assets, facility modifications, services, staff, and intangibles. These costs reflect a range of factors that should be considered for each area. Not all costs will be necessary for each implementation; additional costs, which may not be discussed here, could be incurred by the airport operator or other key stakeholders. C H A P T E R 4 Business Value Assessment

Business Value Assessment 51 Planning and Design Planning and design consists of the effort required to take a common-use project from concept to implementation. Many of these costs will be necessary for any level of common-use implemen- tation. Appendix C1 has a more detailed breakdown. Services Consulting and design support is the primary cost associated with the planning and design effort. During this phase, consultants may be needed to help with business-level assessments, airport capacity planning, airport master planning, and other services so that the airport oper- ator can develop a clear understanding of the goals to accomplish. The following are typical key tasks for consultants: • Identifying potential benefits • Developing a business model • Planning for and facilitating initial discussions with airlines • Developing a common-use model that accommodates airlines’ business models • Conducting a study for how common use should be implemented • Defining use criteria • Establishing control responsibilities • Assessing IT and facility infrastructure • Assessing equipment assets to be transferred from airline to airport • Preparing an RFP for the design project • Developing schematic designs (possibly in conjunction with other disciplines) • Developing functional requirements • Developing construction drawings (possibly in conjunction with other disciplines) • Developing technical specifications • Preparing an RFP for installation of the system Once the planning and initial requirements are developed, the airport operator may need to engage design consultants, architects, engineers, and other professional services to create a design that may be installed or constructed. This section does not distinguish among delivery methods of projects. Additional costs related specifically to the delivery method may be incurred. Project deliv- ery methods include design-bid-build, design-build, and construction manager at risk, among other methods. Also, if the project is an upgrade to an existing terminal, the project could be done as a non-construction project, given that there may be no need for engineering or architectural services. Staff The airport operator’s staff involvement throughout the planning and design phase is a sig- nificant cost that must be considered. Although a third-party design team can do much of the planning and design work, the direction and support required by the executive, management, and operational staff should not be underestimated. Executive Level. Executive-level staff must provide the planning direction and probably will need to attend meetings to address the following key issues: • Changes in airport and airline culture • An initial airport definition of a common-use business model • Airlines as business partners • Accommodation of airline business models • How common use should be implemented • Definition of use criteria • Establishment of control responsibilities

52 Reference Guide on Understanding Common Use at Airports After the planning phase, an executive staff member will be needed to oversee the design project as the project sponsor. Management Level. Management-level staff must provide input into the planning process and probably will need to attend meetings to address the following key issues: • How common use should be implemented • Definition of use criteria • Establishment of control responsibilities • Definition of IT and facility infrastructure requirements • Definition of requirements for major equipment asset ownership After the planning phase, a management staff member will be needed to manage the design project, provide design coordination, and attend design review meetings. Operational Level. Operational-level staff must provide input into the planning process and probably will need to attend meetings to address the following key issues: • How common use should be implemented • Definition of IT and facility infrastructure requirements • Definition of requirements for major equipment asset ownership After the planning phase, key operational staff members will be needed to provide ongoing support to the design project by attending design review meetings. Common-Use Implementation The primary common-use functions addressed here include terminal check-in area, curbside check-in, off-site check-in, gate areas, flight/baggage information displays, ramp control services, and ground handling services. Many of these functions will have costs in common that would not necessarily be replicated if multiple functions were implemented. Also, the ramp control and ground handling services would likely only be implemented in conjunction with a gate area common-use solution. Terminal Check-in Area This section addresses the terminal check-in area. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets in the terminal check-in area depend heavily on the scale and scope of the common-use implementation. These costs could include • General IT infrastructure upgrades • CUTE/CUPPS hardware and software components • Dynamic signage system hardware and software components • Common-Use Self-Service (CUSS) Kiosks • Voice over Internet Protocol (VoIP) System • Millwork for check-in counters, display backwalls, dynamic signage cabinets, and CUSS kiosks • Bag scales • Baggage conveyers Facility Modifications. Modifications to existing facilities may be required in order to accommodate new passenger processing practices and new systems implemented in the terminal check-in area. Facility modifications may include • Security checkpoints • Hold rooms • Check-in areas

• Bag screening areas • Baggage make up areas • Telecommunication rooms • Infrastructure pathways Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and Designers. Consultants, and possibly designers, probably will be needed to provide the following support: • Identifying maximum counter availability during peak-hour operations as compared with gate capacity • Addressing passenger processing challenges • System design and implementation • Counter configuration and signage design • Assessment of modifications needed • Design and construction of modifications Contracts. Service contracts associated with the terminal check-in area may include • Common-use systems warranty and maintenance • Janitorial services • Skycap services • Wheelchair services Certifications. Technology systems that operate to an industry standard may require certifi- cations of the platforms and the applications in order for the solution to be considered a standard solution. These costs can affect both the airport operator and the airlines that use those solutions. Certification requirements associated with the terminal check-in area may include • Common-use passenger processing certification • CUSS certification Staff. Implementing common use will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation and how common use will be supported and maintained. Executive Level. An executive staff member will need to serve as the project sponsor for the design and implementation of common use. Management Level. At the management level, two full-time positions may need to be created to address specific ongoing common-use-related issues, if such responsibilities are not being met by the airport operator’s current staff. These positions would be • A manager to oversee new service development, policy and procedures development and enforcement, and design and implementation project management. • A manager to work with the airlines to accommodate business processes and understand pas- senger flow methodologies and to negotiate and manage contracts on behalf of the airport. In addition to new positions that may need to be created, management-level staff will need to be involved in defining rates and charges specific to the common-use implementation. Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Participation in design reviews • Daily operations of new services (e.g., management of check-in counter assignments and monitoring of check-in counter usage) Business Value Assessment 53

54 Reference Guide on Understanding Common Use at Airports • Maintaining new assets • Help desk support • Legal counsel for liability issues • Customer service support • Marketing program development and implementation • Environmental impact assessment and support • Financial support for account management • Technology support for infrastructure and systems Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. Implementing common use in the terminal check-in areas has intangible costs as well. Among these are • Minimization of the unique branding capability of airlines • Increased operational risk to the airlines because of the loss of control over system perfor- mance and functionality • Increased risk to the airport because of the financial uncertainty during low-utilization periods, liability for effect on airline operations, and liability for safety. Curbside Check-In Areas This section addresses the curbside check-in areas. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets in the curbside check-in areas depend heavily on the scale and scope of the common-use implementation. These costs could include • General IT infrastructure upgrades • CUTE/CUPPS hardware and software components • Dynamic signage system hardware and software components • Millwork for curbside check-in counters and dynamic signage cabinets • Bag scales • Baggage conveyers Facility Modifications. Modifications to existing facilities may be required to accommodate new passenger processing practices and new systems implemented to support common-use curbside check-in. Facility modifications could include • Bag screening areas • Baggage make up areas • Telecommunication rooms • Infrastructure pathways Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and Designers. Consultants will likely be needed to provide the following support: • Addressing passenger processing challenges • System design and implementation • Counter configuration and signage design • Assessment of modifications needed • Design and construction of modifications

Contracts. Service contracts associated with the curbside check-in areas may include • Common-use systems warranty and maintenance • Janitorial services • Skycap services • Wheelchair services Certifications. Certification requirements associated with the curbside check-in areas may include • Common-use passenger processing certification • CUSS certification Staff. Implementing common use will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. An executive staff member will need to serve as the project sponsor for the design and implementation of the common-use solution. Management Level. At the management level, two full-time positions may need to be created to address specific ongoing common-use related issues, if such responsibilities are not being met by the airport operator’s current staff: • A manager to oversee new service development, policy and procedures development and enforcement, and design and implementation project management • A manager to work with the airlines to accommodate business processes and understand pas- senger flow methodologies and to negotiate and manage contracts on behalf of the airport In addition to the positions that may need to be created, management-level staff will need to be involved in defining rates and charges specific to the common-use implementation. Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Daily operations of new services (e.g., management of check-in counter assignments and monitoring of check-in counter usage) • Maintenance of new assets • Help desk support • Legal counsel for liability issues • Customer service support • Marketing program development and implementation • Environmental impact assessment and support • Financial support for account management • Technology support for infrastructure and systems Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. Implementing common use in the curbside check-in areas has intangible costs as well. Among these are • Minimization of the unique branding capability of airlines • Increased operational risk to the airlines because of the loss of control over system perfor- mance and functionality • Increased risk to the airport because of the liability for impact on airline operations and liability for safety • Cross-training on all airline applications for curbside operators Business Value Assessment 55

56 Reference Guide on Understanding Common Use at Airports Off-Site Check-In Operations This section addresses off-site check-in operations. Costs may vary greatly. For example, a CUSS kiosk at a hotel or convention center may impose little or no cost to the airport operator, while a staffed check-in counter at an airport-owned rental car facility probably would be the full responsibility of the airport operator. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets for off-site check-in operations reflect the scale and scope of the common-use implementation. These costs could include • General IT infrastructure upgrades • Dynamic signage system hardware and software components • CUSS Kiosks • Millwork for check-in counters, dynamic signage cabinets, and CUSS kiosks Facility Modifications. Modifications to existing facilities may be required in order to accommodate new passenger processing practices and new systems implemented in support of the off-site check-in operation. Facility modifications could include • Bag screening areas (a new induction point may be necessary at the airport to support off-site operations) • Baggage make up areas (a new induction point may be necessary at the airport to support off- site operations) • Telecommunication rooms Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and Designers. Consultants and designers probably will be needed to provide the following support: • Addressing passenger processing challenges • System design and implementation • Counter configuration and signage design • Assessment of modifications needed • Design and construction of modifications Contracts. Service contracts associated with the off-site check-in operation may include • Common-use systems warranty and maintenance • Third-Party provider of off-site check-in operation Certifications. Certification requirements associated with the off-site check-in operation may include CUSS certification. Staff. Implementing common use will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. An executive staff member will need to serve as the project sponsor for the design and implementation of the common-use solution. Management Level. At the management level, two full-time positions may need to be created to address specific ongoing common-use related issues, if such responsibilities are not being met by the airport operator’s current staff: • A manager to provide oversight of new service development, policy and procedures develop- ment and enforcement, and design and implementation project management

• A manager to work with the airlines to accommodate business processes and understand pas- senger flow methodologies and to negotiate and manage contracts on behalf of the airport. In addition to the new positions that may need to be created, there will need to be involve- ment from the management level to define rates and charges specific to the common-use implementation. Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Daily operations of new services • Maintenance of new assets • Help desk support • Legal counsel for liability issues • Customer service support • Marketing program development and implementation • Environmental impact assessment and support • Financial support for account management • Technology support for infrastructure and systems Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. No costs have been identified. Gate Areas This section addresses gate and holdroom areas. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets in the gate areas depend heavily on the scale and scope of the common-use implementation. These costs could include • General IT infrastructure upgrades • CUTE/CUPPS hardware and software components • Dynamic signage system hardware and software components • Local departure control system components • Gate management system components • VoIP System • Millwork for gate counters, display back walls, boarding podiums, recheck podiums, and dynamic signage cabinets • Holdroom furnishings • Passenger boarding bridges • Airport-provided utilities for aircraft (i.e., preconditioned (PC) air, power, water) Facility Modifications. Modifications to existing facilities may be required to accommodate new passenger processing practices and new systems or assets implemented in the gate areas. Facility modifications could include • Security checkpoints • Hold rooms • Check-in areas • Bag screening areas • Baggage make up areas • Telecommunication rooms Business Value Assessment 57

58 Reference Guide on Understanding Common Use at Airports • Infrastructure pathways • Passenger boarding bridges Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and designers. Consultants and designers probably will be needed to provide the following support: • Identifying maximum gate availability during peak-hour operations • Addressing passenger processing challenges • System design and implementation • Counter configuration and signage design • Assessing modifications needed • Design and construction of modifications Contracts. Service contracts associated with the gate areas may include • Common-use systems warranty and maintenance • Janitorial services for holdrooms, FIS inspection area, jet bridges, ramps and walkways • Wheelchair services Certifications. Certification requirements associated with the gate areas may include common-use passenger processing certification. Staff. Implementing common use will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. An executive staff member will be needed to serve as the project sponsor for the design and implementation of the common-use solution. Management Level. At the management level, two full-time positions may need to be created to address specific ongoing common-use related issues, if such responsibilities are not being met by the airport operator’s current staff: • A manager to provide oversight of new service development, policy and procedures development and enforcement, and design and implementation project management • A manager to work with the airlines to accommodate business processes and understand passen- ger flow methodologies and to negotiate and manage contracts on behalf of the airport. In addition to the new positions that may need to be created, there will need to be involve- ment from the management level to define rates and charges specific to the common-use implementation. Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Participation in design reviews • Daily operations of new services (e.g., management of gate assignments, monitoring of gate usage, monitoring and inspection of passenger boarding bridges, and maintaining communi- cations on an operational level with the airport operator’s staff, airlines, and ground handlers) • Maintenance of new assets • Help desk support • Legal counsel for liability issues • Customer service support • Marketing program development and implementation • Environmental impact assessment and support

• Financial support for account management • Technology support for infrastructure and systems • Security support for access control Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. Implementing common use in the gate areas has intangible costs as well. Among these are • Minimization of the unique branding capability of airlines • Increased operational risk to the airlines because of the loss of control over system perfor- mance and functionality • Increased risk to the airport operator because of the financial uncertainty during low utiliza- tion periods, liability for impact on airline operations, and liability for safety Flight and Baggage Information Display Systems This section addresses flight and baggage information display systems. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets in support of the flight and baggage information display systems depend heavily on the scale and scope of the common-use implementation. These costs could include • General IT infrastructure upgrades • Flight and baggage information display system hardware and software components • Millwork for information display cabinets Facility Modifications. Modifications to existing facilities may be required to accommodate new systems and assets implemented in support of the flight and baggage information display systems. Facility modifications may include • Telecommunication rooms • Infrastructure pathways • Structural changes to the facility to support large-format displays Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and designers. Consultants and designers probably will be needed to provide the following support: • Conduct of studies to determine quantity and placement of information displays • System design and implementation • Assessment of modifications needed • Design and construction of modifications Contracts. Service contracts associated with the flight and baggage information display sys- tems may include • Common-use systems warranty and maintenance • Display device warranty and maintenance Certifications. Technology systems that operate to an industry standard may require cer- tifications of the platforms and the applications in order for the solution to be considered a standard solution. These costs can affect both the airport operator and the airlines that use those solutions. Business Value Assessment 59

60 Reference Guide on Understanding Common Use at Airports Staff. Implementing common use will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. An executive staff member will be needed to serve as the project sponsor for the design and implementation of the common-use solution. Management Level. At the management level, two full-time positions may need to be created to address specific ongoing common-use related issues, if such responsibilities are not being met by the airport operator’s current staff: • A manager to provide oversight of new service development, policy and procedures development and enforcement, and design and implementation project management • A manager to work with the airlines to accommodate business processes and understand pas- senger flow methodologies and to negotiate and manage contracts on behalf of the airport In addition to the new positions that may need to be created, there will need to be involve- ment from the management level to define rates and charges specific to the common-use implementation. Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Participation in design reviews • Daily operations of the flight and baggage information display system • Maintenance of new assets • Help desk support • Customer service support • Marketing program development and implementation • Financial support for account management • Technology support for infrastructure and systems Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. Implementing a common-use flight and baggage information display system has intangible costs as well. Among these are • Minimization of the unique branding capability of airlines • Increased operational risk to the airlines because of the loss of control over system perfor- mance and functionality • Increased risk to the airport because of the financial uncertainty during low utilization periods and liability for impact on airline operations Ramp Control Services This section addresses ramp control services. For a detailed listing of cost breakdowns, see Appendix C1. Assets. Costs associated with new assets in support of ramp control services depend heav- ily on the scale and scope of the common-use implementation. These costs could include • Ramp control vehicles • Gate management system • User workstations • Cabling infrastructure • Backup generator • Radio equipment

Facility Modifications. Modifications to existing facilities may be required to accommodate ramp control services. Facility modifications could include • Ramp control tower construction • Gate modifications • Infrastructure pathways • Extension of systems from the terminal Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and designers. Consultants and designers probably will be needed to provide the following support: • Evaluation of the opportunity to take over ramp control • Definition of ramp control stakeholder requirements, operating agreements and procedures • System design, installation, and configuration • Assessment of modifications needed • Design and construction of modifications Contracts. Depending on the airport operator’s management strategy, the airport operator may choose to provide the full ramp control operation with in-house staff or use a combination of in-house staff and contract staff to provide ramp control services. Certifications. Technology systems that operate to an industry standard may require cer- tifications of the platforms and the applications in order for the solution to be considered a standard solution. These costs can affect both the airport operator and the airlines that use those solutions. Staff Implementing common use to any degree will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. The executive level staff must provide direction in the assumption of ramp control services and probably will need to attend meetings to address the following key issues: • Assumption of ramp control services • Definition of ramp control stakeholder requirements, operating agreements and procedures Once beyond the planning phase, an executive staff member will need to oversee the design project as the project sponsor. Management Level. At the management level, five full-time positions may need to be created to address specific ongoing ramp-control-related issues, if such responsibilities are not being met by the airport operator’s current staff: • A manager to provide ramp control management, policy and procedures development and enforcement, and design and implementation project management • Three controllers (to cover three shifts) to coordinate and administer ramp control and gate management and serve as the liaison for the airport operations staff, tenants, and the FAA Air- port Traffic Control Tower for administering flow management staging of departing aircraft and strategic gate management for arriving aircraft • A manager to work with the airlines to accommodate business processes, understand standards for aircraft movement and separation, and handle labor contract issues Business Value Assessment 61

62 Reference Guide on Understanding Common Use at Airports Operational Level. Operational staff members will be needed to provide design and instal- lation project support as well as the following: • Daily operations of monitoring ramp operations (may be full-time airport operator’s staff or contract) • Maintenance of gate striping • Maintenance of new assets • Help desk support • Legal counsel for liability issues • Financial support for account management • Technology support for infrastructure and systems • Security support for closed-circuit television (CCTV) and access control Beyond the costs associated with staff time, at the operational level there will be additional costs for staff training to provide the necessary program support. Intangibles. Taking over ramp control services has intangible costs as well. Among these are • Increased operational risk to the airlines because of the loss of control over ramp control operations • Increased risk to the airport because of the liability for impact on airline operations and lia- bility for safety • Labor issues between the airport operator, airline, and others sharing ramp control facilities and services Ground Handling/Ramp Services This section addresses ground handling and ramp services. This section assumes that the air- port operator will contract out the actual ground handling and ramp services work and will not require procurement of any real assets. If an airport operator chose to provide these services using airport-owned assets, those costs would have to be accounted for. For a detailed listing of cost breakdowns, see Appendix C1. Assets. No costs have been identified. Facilities Modifications. No costs have been identified. Services Outside services may be required to accommodate new passenger processing practices. These may include the following. Consultants and designers. Consultants probably will be needed to provide the following support: • Evaluation of the opportunity to take over ground handling services • Definition of ground handling stakeholder requirements, operating agreements and procedures Contracts. The most likely scenario for an airport providing ground handling services would be through an outsourced contract. Contracted services may include • Air starter and ground power units • Baggage handling • Catering handling • Aircraft cleaning • Aircraft de-icing

• Lavatory maintenance • Liaison with fuel suppliers • Push back and towing • Steps and air bridge service • Water service Certifications. Technology systems that operate to an industry standard may require cer- tifications of the platforms and the applications in order for the solution to be considered a standard solution. These costs can affect both the airport operator and the airlines that use those solutions. Staff Implementing common use to any degree will affect the airport operator’s staff. The level of effect will reflect the scale and scope of the implementation. Executive Level. The executive-level staff must provide direction in the assumption of ground handling services and probably will need to attend meetings to address the following key issues: • Assumption of ground handling services • Definition of ground handling stakeholder requirements, operating agreements and procedures Management Level. At the management level, two full-time positions may need to be created to address specific ongoing issues related to ground handling, if such responsibilities are not being met by the airport operator’s current staff: • A manager to provide ground handling contract management and policy and procedures development and enforcement • A manager to work with the airlines to accommodate business processes Operational Level. Operational staff members will be needed to provide the following: • Legal counsel for liability issues. • Financial support for account management. Intangibles. Taking over ground handling services has intangible costs as well. Among these are • Increased operational risk to the airlines because of the loss of control over ground handling performance and functionality • Increased risk to the airport because of the liability for impact on airline operations and liability for safety. Cost-Benefit Breakdown by Business Driver The business driver or motive behind considering common use dictates the type of strategy that may be appropriate. Each strategy has potential costs based on the elements or functions that may be implemented. In addition, each strategy has primary and secondary benefits that may be achieved. The primary benefits will result from the business driver specifically and the secondary benefits will come as a result of intrinsic factors associated with the solution imple- mented. In order to provide a thorough understanding of the potential cost factors affecting each strategy, this section refers to the previous section for each of the common-use areas included. Within this section, the primary benefits associated with each strategy are discussed in detail. The secondary benefits achieved under each strategy are presented in greater detail in Appendix C2. These benefits reflect a range of potential benefits that may be realized for each given strategy. Not all benefits will necessarily be realized for each implementation based on varying circum- stances. Additional benefits, not included here, may be realized. Business Value Assessment 63

64 Reference Guide on Understanding Common Use at Airports The ten strategies discussed here are as follows: 1. Maximize Existing Facility Utilization 2. Avoid or Defer Construction 3. Avoid or Defer Other Capital Costs 4. Maximize Facility Flexibility 5. Decrease Airport Cost of Doing Business 6. Decrease Airline Cost of Doing Business 7. Improve Quality of Service to Airlines 8. Improve Quality of Service to Passengers 9. Increase Opportunities for Airlines to Add or Expand Service 10. Gain a Competitive Advantage over Other Airports Maximize Existing Facility Utilization To maximize the existing facility utilization, an airport operator should consider the current use of the facilities and the types of airlines operating there. This would include considering hub versus non-hub operations, as well as frequency of flights and saturation of gate utilization. The airport operator could consider implementing common use at as many gates, check-in counters, flight information displays, baggage areas, kiosks, and curb-side locations as feasible and assuming responsibility for providing ramp control and ground handling services for common- use areas. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the benefit derived from the possible increased utilization. Although increased utilization is the pri- mary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use so as to maximize the existing facility utilization are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Flight and Baggage Information Display Systems • Gate Areas • Ramp Control Services • Ground Handling/Ramp Services Benefits The primary benefits of maximizing existing facility utilization are as follows: • Creation of a competitive advantage for the airport operator by increasing the potential for airlines currently at the airport to expand service in the airport and manage overflow flights cost effectively • Creation of cost savings and efficiency by enabling the airport operator to maintain greater control of airport costs through optimization of current gates, which allows the airport oper- ator to avoid or delay capital expenditures • Resource maximization that allows constrained airports with low utilization for non-hub air- lines to operate more efficiently, thereby enabling the airport operator to (1) reduce congestion by distributing the arrivals and departures more evenly throughout the airport and (2) handle airlines and passengers during future construction work

Avoid or Defer Construction To avoid or defer construction of a new facility, an airport operator could consider imple- menting common use at gate, check-in counter, and flight information display locations where multiple airlines with a low level of daily utilization could be accommodated on a set of shared gates, thereby increasing efficiency and alleviating the immediate demand for new facilities. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the savings derived from avoided or deferred construction projects. Although cost sav- ings are the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use so as to avoid or defer capital costs specifically associated with new facility construction are described in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Flight and Baggage Information Display Systems • Gate Areas Benefits The primary benefits of avoiding or deferring new facility construction costs are as follows: • Cost savings and/or increased efficiency by strategically placing common use in areas that will permit the sharing of terminal check-in areas and gates by multiple airlines, resulting in an increased capacity for current operations, holiday season spikes, scheduled charters, and future growth without having to build new gates • Resource maximization that allows constrained airports with low utilization for non-hub air- lines to operate more efficiently Avoid or Defer Other Capital Costs To avoid or defer capital costs not specifically associated with construction of a new facility, an airport operator could consider implementing common use at gate, check-in counter, flight information display locations, and baggage areas to alleviate the need for infrastructure and sys- tems replacements and significant renovations. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the savings derived from avoided or deferred non-construction capital projects. Although cost sav- ings are the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use so as to avoid or defer capital costs not specifically associated with new facility construction are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Flight and Baggage Information Display Systems • Gate Areas Business Value Assessment 65

66 Reference Guide on Understanding Common Use at Airports Benefits The primary benefits of avoiding or deferring capital costs not associated with construction are as follows: • Cost savings and/or increased efficiency by reducing the capital requirements of infrastructure and system replacements and facility renovations associated with accommodating airlines starting new service, increasing service during peak or holiday seasons, terminating service, and merging with other airlines • Resource maximization that allows constrained airports with low utilization for non-hub air- lines to operate more efficiently, thereby enabling the airport operator to (1) reduce congestion by distributing the arrivals and departures more evenly throughout the airport and (2) handle airlines and passengers during future construction work Maximize Facility Flexibility To maximize the existing facility flexibility, an airport operator could consider implementing common use at as many gates, check-in counters, flight information displays, baggage areas, kiosks, and curb-side locations as feasible and assuming the responsibility for providing ramp control and ground handling services for common-use areas. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use to the benefit gained from increased flexibility. Although increased flexibility is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use to maximize facility flexibility are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Gate Areas • Flight and Baggage Information Display Systems • Ramp Control Services • Ground Handling and Ramp Services Benefits The primary benefits of maximizing facility flexibility are as follows: • Increased operational flexibility, thereby allowing the airport operator to control how check- in counters and gates are being used. This enhances the airport’s ability to respond to irregular operations, peaks due to seasonal air traffic, and consolidation due to airline mergers • Enablement of the airport operator to accommodate new business in a more timely and cost effective manner for both the airport operator and the airline due to the lack of need for facil- ity, infrastructure, and system modifications Decrease Airport Cost of Doing Business To decrease the airport’s cost of doing business, an airport operator could consider imple- menting common use at gates, check-in counters, flight information displays, baggage areas, kiosks, and curb-side locations where operational cost reductions can be shown.

To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use to the savings realized from increased efficiency of airport operations. Although operational costs sav- ings for the airport are the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use in order to decrease the cost of doing business for airport operators are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Flight and Baggage Information Display Systems • Gate Areas Benefits The primary benefits of decreasing the airport operator’s cost of doing business are as follows: • Potential cost savings because the airport operator can optimize gate and check-in counter usage, thereby enabling the temporary shutdown of a concourse during a downturn in air traf- fic or the delay of capital expenditures associated with new construction • Standardization of equipment for the airport operator, thereby resulting in lower acquisition and maintenance costs • Cost savings as a result of reducing the capital requirements of infrastructure and system replacements and facility renovations associated with accommodating airlines’ starting new service, increasing service during peak or holiday seasons, terminating service, and merging with other airlines Decrease Airline Cost of Doing Business To decrease the cost of doing business for airlines, an airport operator could consider imple- menting common use at gates, check-in counters, flight information displays, baggage areas, kiosks, and curb-side locations and assuming responsibility for providing ramp control and ground handling services for common-use areas where airlines believe operational cost reduc- tions can be shown. Typically, this would include gates in a specific terminal area that can be easily serviced by a specific check-in counter area through which multiple airlines with low utilization could be accommodated. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the savings realized from increased efficiency of airline operations. Although operational costs sav- ings for the airlines is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use so as to decrease the cost of doing business for airlines are described in detail in the previous section within the follow- ing areas: • Planning and Design • Terminal Check-in Areas Business Value Assessment 67

68 Reference Guide on Understanding Common Use at Airports • Curbside Check-in • Gate Areas • Flight and Baggage Information Display Systems • Ramp Control Services • Ground Handling and Ramp Services Benefits The primary benefits of decreasing the airlines’ cost of doing business are as follows: • Potential cost savings because the airport operator can optimize gate and check-in counter usage, thereby enabling the avoidance or delay of capital expenditures associated with new construction • Cost savings resulting from reducing the capital requirements of infrastructure and system replacements and facility renovations associated with accommodating airlines starting new service, increasing service during peak or holiday seasons, terminating service, and merging with other airlines • Cost savings for both domestic and international carriers with a low number of flights per day by enabling them to pay for only the resources that they need, including shared gate and check-in counter usage, baggage systems, communications infrastructure, passenger process- ing equipment, and technical support • Potential cost savings for carriers with a large number of flights per day by enabling them to accommodate overflow flights efficiently, reduce the number of gates required as operations change, and sublease gate and check-in counter time when not needed Improve Quality of Service to Airlines To improve the quality of service provided to the airlines, an airport operator could consider implementing common use at gates, check-in counters, flight information displays, baggage areas, kiosks, curb-side locations, and off-site check-in locations and assuming the responsibility for providing ramp control and ground handling services for common-use areas where airlines believe an increased quality of service can be achieved. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use to the benefit gained from increased quality of service to the airlines. Although increased quality of service for the airlines is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use so as to improve the quality of ser- vice to airlines are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Off-site Check-in Operations • Gate Areas • Flight and Baggage Information Display Systems • Ramp Control Services • Ground Handling and Ramp Services Benefits The primary benefits of improving the quality of service to airlines are as follows:

• Improved customer service for the airlines by improving control over ground handling oper- ations airport-wide, thereby creating greater organization and reducing the need for airlines to manage ground handling contractors, improving baggage handling performance in airports with congested baggage systems, providing greater ramp control, enabling more timely tech- nical support, and creating new opportunities for curbside services. • Improved flexibility and convenience for the airlines by enabling airlines to move within the airport if desired, making it easier and more cost-effective for an airline to start new service, allowing operational expansion and reduction capabilities, better facilitating irregular opera- tions and seasonal air traffic, and creating less disruption to airlines during future construc- tion work. • Minimized risk to airlines by reducing the requirement for airlines to lock into a long-term agreement. Improve Quality of Service to Passengers To improve the quality of service provided to the passengers, an airport operator could con- sider implementing common use at gates, check-in counters, flight information displays, baggage areas, kiosks, curb-side locations, and off-site check-in locations where the airport operator and/ or the airlines believe an increased quality of service can be provided to the traveling public. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the benefit gained from increased quality of service to the passengers. Although increased qual- ity of service for the passengers is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use in order to improve the qual- ity of service to passengers are described in detail in the previous section within the follow- ing areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Off-site Check-in Operations • Flight and Baggage Information Display Systems • Gate Areas Benefits The primary benefits of improving the quality of service to passengers are as follows: • A more convenient check-in process resulting from the creation of alternatives for check-in through curbside services, self-service kiosks, and reductions in wait times due to the ability to add check-in counter space as needed • Greater availability of information through common-use flight and baggage information sys- tems and dynamic signage • Fewer gate changes because of irregular operations • Improved performance in baggage handling at airports with constrained baggage systems • Greater quality control over skycap and janitorial services • A more pleasant environment for passengers as a result of a standardized look and feel within the airport, reduced congestion as a result of balancing arrivals and departures throughout the airport, and less disruption during future construction work Business Value Assessment 69

70 Reference Guide on Understanding Common Use at Airports Increase Opportunities for Airlines to Add or Expand Service To increase the opportunities for airlines to add or expand existing service to an airport, an airport operator could consider implementing common use at gates, check-in counters, and flight information displays to enable expansion of utilization by existing carriers and new service for new carriers. Typical locations would include shoulder gates and counters for existing carriers likely to expand and small blocks of gates and counters to attract new carriers. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the benefit gained from increased utilization from existing and new carriers. Although increased uti- lization is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use in order to expand opportu- nities for airlines to enter the market are described in detail in the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Flight and Baggage Information Display Systems • Gate Areas Benefits The primary benefits of increasing opportunities for airlines to add or expand service are as follows: • Airlines can enter the market more rapidly, test the market, and grow operations with mini- mal capital outlay for facility, systems, and infrastructure modifications. • Cost savings for both domestic and international carriers with a low number of flights per day by enabling them to pay for only the resources that they need, including shared gate and check-in counter usage, baggage systems, communications infrastructure, passenger process- ing equipment, and technical support. • Expansion of services by carriers with a large number of flights per day by enabling them to efficiently accommodate overflow flights and seasonal spikes in air traffic without needing to pay for dedicated gate and check-in counter space. • Minimized risk to airlines by reducing the requirement for airlines to lock into a long-term agreement. Gain a Competitive Advantage over Other Airports To gain a competitive advantage over other airports, an airport operator could consider implementing common use at gates, check-in counters, flight information displays, baggage areas, kiosks, curb-side locations, and off-site check-in locations and assuming the responsibility for providing ramp control and ground handling services for common-use areas to create a com- bination of cost savings, flexibility, quality of service, and expansion of utilization capabilities so as to attract passengers and airlines from competing airports. To determine if common use would provide sufficient value toward satisfying this motive, the airport operator should compare the costs associated with implementing common use with the

benefit gained from additional carriers and passengers. Although an increase in carriers and/or passengers is the primary benefit sought under this business driver, various secondary benefits may be recognized. Costs Potential costs associated with implementing common use in order to gain a competitive advantage over other airports are described in detail the previous section within the following areas: • Planning and Design • Terminal Check-in Areas • Curbside Check-in • Off-site Check-in Operations • Gate Areas • Flight and Baggage Information Display Systems • Ramp Control Services • Ground Handling and Ramp Services Benefits The primary benefits of gaining a competitive advantage over other airports are as follows: • Reduced barriers to entry and expansion for airlines by enabling airlines to enter the market more rapidly, test the market, and grow operations with minimal capital outlay for facility, systems, and infrastructure modifications • Cost savings for both domestic and international carriers with a low number of flights per day by enabling them to pay for only the resources that they need, including shared gate and check-in counter usage, baggage systems, communications infrastructure, passenger process- ing equipment, and technical support • Expanded services by carriers with a large number of flights per day by enabling them to effi- ciently accommodate overflow flights and seasonal spikes in air traffic without needing to pay for dedicated gate and check-in counter space • Minimized risk to airlines by reducing the requirement for airlines to lock into a long-term agreement • Greater quality of service for the airlines by creating customer service improvements to the airlines by improving control over ground handling operations airport-wide thereby creating greater organization and reducing the need for airlines to manage ground handling contrac- tors, improving baggage handling performance in airports with congested baggage systems, providing greater ramp control, enabling more timely technical support, and creating new opportunities for curbside services • Improved flexibility and convenience for airlines by enabling airlines to move within the airport if desired, making it easier and more cost-effective for an airline to start new service, allowing operational expansion and reduction capabilities, better facilitating irregular operations and seasonal air traffic, and creating less disruption to airlines during future construction work • Minimized risk to airlines by reducing the need for airlines to lock into a long-term agreement • Greater quality of service to the passengers through a more convenient check-in process as a result of creating alternatives for check-in through curbside services, self-service kiosks, and reductions in wait times because of the ability to add check-in counter space as needed. • Greater availability of information and navigation through common-use flight and baggage information systems and dynamic signage • Reduced gate changes due to irregular operations • Improved performance in baggage handling at airports with constrained baggage systems • Greater quality control over skycap and janitorial services Business Value Assessment 71

• A more pleasant environment for passengers as a result of a standardized look and feel within the airport, reduced congestion by balancing arrivals and departures throughout the airport, and less disruption during future construction work. Business Strategy Assessment This business strategy assessment has been designed to help airport operator staff determine the appropriateness of a common-use solution. This assessment is not intended to provide a rec- ommendation for a specific solution, but to help airport operators determine if their airports are candidates for common use, and if so, draw out the information required to accomplish the first two steps in selecting a common-use solution: • Business Feasibility Analysis • Business Value Analysis The Business Feasibility Analysis (see Appendix C3) provides questions to draw out issues that may or may not support further investigation. Airport operators must determine whether, in their estimation, there is sufficient cause to pursue common use. If a determination has been made to move forward, the airport operator should complete the business value analysis worksheets (see Appendix C4). The business value analysis provides a structure for the airport operator to identify expected costs and benefits from the common- use strategy being considered. The business value analysis worksheets are intended to enable the airport operator to develop a basis for discussion with the airlines. In conjunction with these efforts, Chapter 5 provides a roadmap to facilitate decision making about common-use implementation. Airport operators will find it helpful to have the documents listed in Table 4-1 available when completing this business strategy assessment. 72 Reference Guide on Understanding Common Use at Airports Table 4-1. Documents needed for business strategy assessment.