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Project Definition and Planning 23 Timing and Complexity There are several factors for the project sponsor to consider related to timing and complexity when considering a property for an offsite terminal or when comparing properties. This includes when the property will become available and the time it will take to conduct environmental stud- ies, obtain permits, prepare the site, construct the terminal, and get approval for any zoning changes. Transportation Link To encourage airport users to shift from on-demand, low-occupancy modes to using the off- site terminal, the transportation link should be tailored to the needs of airport users. Although the most flexible and cost-effective high-occupancy transportation link between the offsite terminal and the airport will be a bus, most of the information provided in this section also applies to a rail link. The project sponsor might consider testing the market for an offsite terminal with a bus link before it commits the time and funds to developing a rail link. If the market is not responsive to the offsite terminal, a different market location could be tested. The transportation link between the offsite terminal and the airport must provide service that is competitive with the alternative modes available to the airport user, with door to door travel time being an important consideration for the time-sensitive customer. Airport users will com- pare the total travel time for using the offsite terminal and transportation link to the time it takes using their preferred mode of airport access. In addition to service characteristics related to travel time, there are other considerations in planning and developing a transportation link that will influence project cost, customer use, and customer service. These are shown in Table 4. Table 4. Relationship between the transportation link and cost, ridership, and customer service. Customer Element/Influence Cost Ridership Service Hours of Operation Service Frequency Number of Stops On-time Schedule Luggage Storage Amenities Revenue Collection Operated by Project Sponsor or Third Party Vehicle Ownership Vehicle Type Source: DMR Consulting

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24 Planning for Offsite Airport Terminals Hours of Operation It is critical to analyze the overall flight schedule, as well as the distribution of international and domestic seats, when developing hours of operation for the transportation link considering lead time for the first departing flight, lag time for checked luggage on the last arriving flight, and potential delays. Since most airlines recommend that passengers arrive at least 90 to120 minutes before flight departure for domestic flights and longer for international flights, for a bus service to accommodate the full departures schedule, the first scheduled bus should be timed to depart from the offsite terminal so it arrives at the airport at least 90 to120 minutes before the first scheduled flight. Similarly, if the transportation link is to accommodate the full arrivals sched- ule, it should be in operation until at least 1 hour past the last scheduled flight arrival at the air- port. If the project sponsor also wants to serve the full airport employee schedule, service may have to be expanded further. If the airport experiences frequent delays in flight departures or arrivals, the project sponsor should also consider offering extended hours to accommodate those delays or provide alternative transportation (i.e., a guaranteed ride home) for delayed passen- gers using the offsite terminal and transportation link. Even at very busy airports, there is typically a time in the late evening/early morning when the number of departing or arriving flights is low or has ceased operation in one direction while there is still significant activity in the opposite direction, taking into account lead and lag times for the offsite terminal. Provision of scheduled bus service in one direction doesn't reduce costs significantly since the bus must still travel in the opposite direction. Through analysis of the flight schedule, the project sponsor can determine what percentage of departing and arriving seats would be served if the transportation link hours of operation accommodated less than 100% of the flight schedule and then decide whether the cost savings outweigh the loss of poten- tial customers not served by the transportation link. For example, can a schedule be developed that accommodates 90% of scheduled seats considering lead and lag times? What is the cost sav- ings compared with providing a schedule that accommodates 100% of scheduled seats? If there are airport employees in the market area of the offsite terminal, how might they be impacted by the reduced schedule? If an airport user perceives that the transportation link is available for limited hours, that customer may not use it for all trips to the airport because it wasn't available for one trip. In addition, an airport user requiring flexibility, particularly the business traveler, will not want to be constrained by the operating hours of the transportation link. Hence, the lower the per- centage of the flight schedule served by the transportation link, the less desirable it will be to airport users in its market area. A bus schedule that accommodates 70% of scheduled seats will be less appealing to travelers in the market area than a schedule that accommodates 90% of seats. The recommended approach for developing the hours of service is for the first bus depart- ing the offsite terminal to serve the first significant bank of departing flights and then to develop the rest of the schedule based on this. If there are a significant number of arriving seats prior to this time, the schedule would begin from the airport to the offsite terminal to accommodate these passengers. The ending hours will depend on the amount of arriving and departing seats in the evening. If the project sponsor is considering more than one option for the provision of service hours, it should consider that it is more difficult for customers to accept cuts in service compared with additions in service. Service hours that accommodate less than 80% of departing seats or 80% of arriving seats are not recommended, neither is a schedule that doesn't accommodate a signifi- cant number of departures or arrivals in a concentrated time period. Once the service is in oper- ation, the project sponsor should monitor changes in air travel patterns and customer comments to determine whether adjustments in the schedule are necessary.

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Project Definition and Planning 25 Number of Stops Ideally, the transportation link will provide nonstop service between the offsite terminal and the airport to minimize travel time. Under some circumstances, one stop may be acceptable if the increase in overall trip time is insignificant compared with total travel time: For distances less than 25 or 30 miles from the airport, a nonstop bus service is recom- mended between the offsite terminal and the airport. For offsite terminals that are more than 25 or 30 miles away from the airport, an interim stop may be acceptable if it is close to the highway and the stop does not add more than 5 or 10 minutes to the overall travel time. An interim stop meeting these criteria may make the service feasible if one or both of the market areas cannot support a dedicated bus service individually. Example of Transportation Link between Airport and Offsite Terminals: LAX's FlyAway Los Angeles World Airports, owner and operator of LAX, operates LAX FlyAway, three nonstop buses to LAX. Two operate from an offsite terminal and initially offered long-term parking and remote luggage check-in for domestic flights only; however, LAWA discontinued remote luggage check at all FlyAway locations in 2008 because of low customer usage. The third operates from a dedicated bus stop and offers remote luggage check-in and short-term parking only. LAX's FlyAway: Three Nonstop Buses Van Nuys Union Station Westwood Distance from LAX 24 20 10 (miles) Hours of operation 24 hours 24 hours 5 A.M.1 A.M. % of enplaning seats 100% 100% 89% served* % of deplaning seats 100% 100% 99% served1 15 minutes: 4:45 A.M.9:30 A.M. Headways to Half hourly: Half hourly: Half hourly: LAX 3 A.M.4:30 A.M.; 5 A.M.1 A.M. 5 A.M.1 A.M. 10 A.M.midnight Hourly: Hourly: 1 A.M.3 A.M. 2 A.M.4 A.M. Half hourly: Half hourly: Half hourly: Headways 5:30 A.M.midnight 5 A.M.1 A.M. 5 A.M.1 A.M. from LAX 8 trips between Hourly: midnight and 2 A.M.4 A.M. 4:45 A.M., varying headways Stops between offsite 0 0 0 terminal and LAX * Based on May 2007 flight schedule.

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26 Planning for Offsite Airport Terminals Service Frequency The transportation link should provide frequent service to the airport. Long wait times add to passenger concern about getting to the airport on time and leave a negative impression for future use. The longer the distance and travel time to the airport, the more willing an air passenger will be to allow more lead time to get to the airport: For offsite terminals that are located from 10 to 25 or 30 miles from the airport, the bus should provide service at a minimum of every 30 minutes during most of its operating hours. Departures from the airport should run at the same frequency for consistency. Service should be added during busy periods. During slow periods, hourly service may be acceptable to customers. For offsite terminals that are more than 25 or 30 miles away from the airport, hourly service may be acceptable to customers. Service should be added during busy periods. Offsite terminals in the United States are not located less than 10 miles from the airport. If the project sponsor is considering development of an offsite terminal at a location closer than 10 miles from the airport, it should consider the proximity of the site to remote airport park- ing facilities. If the site is perceived to be close to a remote airport parking facility, the fre- quency of the transportation link should be at least as good as frequencies provided by the shuttle service at the remote airport parking lot. On-Time Schedule Customers must be certain that the transportation link is reliable or they will not use it. The service must be scheduled so that all buses depart on time with no dropped or missed trips. An adequate number of seats should be offered to accommodate demand, and passengers should be assured of a seat with extra buses made available during peak travel times. Passengers should be made aware of average and peak travel times with advisories provided to them regarding delays or changes to the operation, especially during peak travel periods. Luggage Storage The vehicle selected for the service should accommodate the needs of the airport customer, many of whom have heavy luggage or multiple pieces of luggage. Ideally the vehicle will have a secure luggage hold area (e.g., an underfloor baggage-storage area) with luggage returned to pas- sengers at the end of the trip. Luggage storage in a contained area inside the bus or sufficient space surrounding individual seating may also be acceptable. A passenger who experiences crowding in a vehicle due to insufficient luggage storage may be discouraged from using the transportation link in the future. Amenities The project sponsor should consider the customer types using the service and determine whether there are amenities that can be offered in the vehicle that may promote a positive cus- tomer experience and encourage repeat business, for example, wireless internet for longer trips or perks similar to the in-flight experience such as music channels or video programming using headsets, blankets, and bottles of water. Although amenities on the transportation link will improve the customer service experience, there is no evidence such offerings will increase ridership. Revenue Collection Revenue collection will impact both cost and customer service. Options for revenue collection include onboard fare boxes, automated ticketing machines/kiosks at the airport and the offsite

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Project Definition and Planning 27 terminal, tickets sales by the bus driver or personnel at the offsite terminal and/or the airport ter- minals, and internet sales. It may also be beneficial to coordinate with local transportation agen- cies for acceptance of local transit passes, transit proximity cards, or a debit/credit system associ- ated with toll roads and bridges. Operated by Project Sponsor or Third Party Another important consideration is whether the bus service will be operated by the project sponsor or contracted out to a third party with experience operating a bus service. Factors that will influence the decision to use one model over the other include cost of providing the service, quality of service, liability, and policies and regulations within the sponsoring organization such as labor rules and procurement requirements. Another consideration is the cost and risk associ- ated with early termination of the bus service. There are two models for operation by a third party, with the primary differences being the level of control over the transportation link by the project sponsor and which party assumes financial responsibility: 1. Management Contract--through a competitive bid or proposal process, the sponsoring organization retains a third party who will operate the service on behalf of the sponsoring organization. The sponsoring organization determines the service characteristics of the trans- portation link and provides specifications for the vehicle type. The third party operator is paid a fixed amount of money by service unit provided (e.g., rate per bus hour or bus mile). The sponsoring organization is financially responsible for an operating deficit or retains operat- ing income. The operator is responsible for all aspects of operating the buses. As noted below, the sponsoring agency may or may not provide and maintain the buses. 2. Concession Agreement--the sponsoring organization awards a concession agreement to a third-party operator through a competitive bid or proposal process. The project sponsor is typ- ically not financially responsible for the service and may receive revenue for granting the right to operate the service. The sponsoring organization may specify some service parameters, but it will typically have less control over service characteristics than if it was financially responsi- ble. If the service is put out for third-party operation or concession, some items to consider when developing solicitation documents and subsequent contracts include the following: Service parameters: fare, level of service, and operating hours; Length of contract; Provisions for termination, cause, and no-fault: if buses are owned by a third-party oper- ator, provision for buyout that is fair to both parties; Customer-service standards; Maintenance standards; Maintenance plan; Schedule adherence: rewards and penalties; Fuel escalation provisions; Reporting requirements; Training; Personnel standards; Indemnification; Insurance provisions; Vehicle and fueling specifications: Age, condition, passenger capacity, luggage capacity, size, height, fuel type, and ADA and Amenities on the bus; Schedule and staffing plan; Terms of additional service: holiday periods, permanently extended service hours, and spe- cial events;

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28 Planning for Offsite Airport Terminals Expectations regarding cleanliness of vehicles, drivers, and uniforms; and Contract monitoring and accountability. Most of the items listed above will have to be identified and planned for if the transportation link is operated by the project sponsor. Vehicle Ownership Regardless of which of the three operational models is adopted--self-operation, a third-party bid, or a concession agreement--the sponsoring organization or a third party may own the vehicles (see Table 5). Whether it makes the most sense for the sponsoring organization to be responsible for the buses or for a third-party operator to provide buses depends on individual circumstances. One of the potential cost disadvantages of using a third-party operator for provision of the bus service is that the length of the contract may typically be for 5 years or less due to procure- ment requirements of some sponsoring organizations and to allow for competition in the mar- ketplace. Since buses are a major purchase and the cost of the buses is typically amortized over a period that is longer than the time period of the operating contract, the operator may pass on higher costs to the sponsoring organization to recoup the entire cost of the rolling stock during the contract period. This is one reason for the project sponsor to consider owning or leasing the buses for the transportation link. In return for taking on the risk of ownership, the project spon- sor is able to pay the true cost for the vehicles over their expected life and the buses are available for use independent of the third-party operator. In this case, maintenance of buses can be pro- vided by the sponsoring organization, the third-party operator, or a contractor. Offsite Bus Link Example: Operation of the Logan Express Massport, owner and operator of Boston Logan International Airport, operates four offsite terminals with nonstop express bus service--the Logan Express--to and from Logan Airport. The routes are operated by different third-party opera- tors who were awarded the rights to operate the service on behalf of Massport through competitive bid. The buses are owned by the private operators. Massport is considering bus ownership in the future. The project sponsor may mitigate the risk to the operator and lower its costs through devel- opment of business terms included in the request for proposal (RFP) and contract. For exam- ple, the Massachusetts Port Authority (Massport) provides an amortization table in its Logan Express contracts that shows how much Massport will purchase the buses for from the operator during the contract period if the contract is terminated early. Table 5. Bus ownership options by operational model. Bus Operator/ Sponsoring Organization Operational Model/Vehicle Ownership Concessionaire Own/Lease Own/Lease Sponsoring Organization Third-Party Competitive Bid Concession Agreement Source: DMR Consulting