Commercial Ground Transportation at Airports: Best Practices (2015)

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28 Operations of Commercial Ground Transportation at Airports Airport operators attempt to ensure that deplaning air- line passengers desiring commercial ground transportation are offered a menu of ground transportation options available at a range of levels of convenience and cost. Airport opera- tors also attempt to ensure that these ground transportation services are offered safely, securely, and in a manner which is consistent with airport policies, rules, and regulations. This chapter describes the techniques and programs airport staff use to manage and control commercial ground transportation services. It describes common access processes and controls, the use and control of commercial vehicle curbside board- ing areas and hold lots, types of commercial vehicle fees, and an airport’s relationships with airport ground transportation services provided by public agencies and scheduled commercial airlines. Access Processes and Controls Many if not most airports require that commercial ground transportation providers seeking to do business at an airport (i.e., pick up airline passengers) agree to abide by airport rules and regulations, and prohibit vehicles which have not done so from stopping on airport property to pick up cus- tomers. Typically the airport’s rules and regulations govern the use of the airport roadways and other property, designate areas where vehicles can drop off and pick up passengers, and require compliance with environmental, safety, security, insurance, and other regulations. The rules may also require the payment of certain airport fees, which are described later in this chapter. Enforcement of these rules and regulations is typically the responsibility of airport staff and police (licensed enforce- ment officers or LEOs). The airport staff may include ground transportation or landside operations staff, airport duty officers, and/or traffic control officers (TCOs). The responsibilities of each type of enforcement personnel are described in further detail in Chapter 6. Use of Dispatchers/Starters Managing and controlling taxicabs, limousines, and shared- ride vans requires greater effort than controlling courtesy vehicles or scheduled bus or van services. To manage and control taxicabs and other vehicles many airports employ dispatchers or starters who are either airport staff or con- tract staff. At airports that have awarded an exclusive or semi- exclusive concession contract to provide on-demand taxicab service, the dispatcher is likely to be an employee of the con- cessionaire. At airports that allow all authorized taxicabs to provide on-demand service, (i.e., on-demand taxicab service is provided on an open or nonexclusive basis) the dispatcher is likely to be an employee of the airport or a third-party con- tractor retained by the airport. Additional information about open and exclusive taxicab contracts is provided in Chapter 8 Section A of this report. Additional information about taxi- cab boarding areas and taxicab hold lots is presented later in this chapter. Taxicab Dispatchers At airports where there are large volumes of taxicab cus- tomers, the taxicab dispatcher may be stationed at the taxi- cab boarding area of each terminal during all hours when deplaning passengers are expected, with supporting person- nel stationed in the hold lot to monitor and control waiting taxicab drivers. At airports serving fewer taxicab customers, a taxicab dispatcher may be stationed at the boarding area, but none in the hold lot. At these airports drivers are instructed to proceed from the hold lot to the terminal via dispatcher- activated or, during off-peak periods customer-activated sig- nal lights or bells, or via mobile phones or two-way radios. Alternatively, vehicle detection systems can be used to summon vehicles from the hold lot by detecting when a taxicab has left the boarding area through the use of gate arms (e.g., Hartsfield- Jackson Atlanta International) or in-pavement detectors (e.g., Toronto Pearson International). At small airports there may C H A P T E R 5

29 be no dispatcher, particularly if taxicab drivers wait in an area that allows them to observe the end of the taxicab boarding area queue (e.g., Evansville Regional Airport), or if drivers exiting the boarding area notify waiting drivers that they may proceed to the terminal using mobile phones or radios. More infor- mation on dispatching technologies is included in Chapter 9. Typically taxicab dispatchers at airports are responsible for: • Ensuring the proper sequence or queuing of taxicabs wait- ing to pick up arriving passengers (i.e., first-in, first out) whether the vehicles are queued in a remotely located hold lot or at the terminal curbside. • Dispatching waiting taxicabs from the hold lot to the pas- senger boarding area and indicating how many vehicles should exit the hold lot at any one time. At airports having multiple terminals, dispatchers are responsible for direct- ing taxicabs to a specific terminal. At some airports with multiple passenger terminals, under the direction of a dis- patcher, taxicabs are allowed to migrate from a terminal having little or no customer activity to a busy terminal in order to balance driver waiting times and customers/fares fairly among all waiting taxicabs. • Briefly inspecting the appearance of taxicab vehicles and drivers to ensure that they comply with airport rules and have required airport-issued permits or licenses. • Greeting customers and assigning them to a vehicle. At some airports this task may include determining a customer’s destination, the party size, and any special needs a customer may have. Examples of special needs include requests for a vehicle that can transport a large party or large pieces of baggage (e.g., skis or golf clubs), a vehicle/driver that can accommodate a disabled passenger, a driver with specific language skills, or a specific taxicab company. • Confirming that the driver is in the correct sequence and has paid the required airport fees. At some airports this is accomplished by collecting tokens or sequentially num- bered tickets from the taxicab drivers. At other airports this confirmation is completed automatically using Radio Frequency Identification (RFID) tags or other technologies described in this report. Limousine Dispatchers Airports with large volumes of prearranged limousine cus- tomers and limited curb space available to accommodate waiting limousines are more likely to require that limousine drivers wait in a hold lot until their customer arrives at the curbside and is ready to exit the airport. At these airports a dispatcher or ground transportation coordinator may be responsible for notifying waiting limousine drivers when they can proceed to the terminal curbside. Airports with smaller volumes of prearranged limousine customers are more likely to allow limousines to wait at the curbside. These airports are less likely to use a dispatcher or ground transportation coordinator to control the movement of limousines and more likely to allow limousine drivers to determine when to proceed to the curb. A dispatcher overseeing limousines at an airport may be responsible for: • Confirming that the limousine drivers have a valid waybill, have required airport-issued permits or licenses, and that the vehicle and driver comply with airport rules • Ensuring that the limousine drivers remain with their vehi- cles, if required to do so by airport rules • Notifying limousine drivers when they can exit the limousine hold lot and proceed to the curbside boarding area Shared-ride Van Dispatchers The responsibilities of a shared-ride van dispatcher vary depending on whether the shared-ride services are provided in an open environment or in an exclusive or semi-exclusive environment. In an open environment the shared-ride van dispatcher is typically employed by the airport operator or by a third-party contractor retained by the airport operator. In such an envi- ronment the dispatcher’s responsibilities typically include: • Monitoring and controlling vans waiting in the hold lot and indicating/announcing which van(s) should proceed to the terminal. • Authorizing vans waiting in the hold lot to proceed to the terminal, and indicating the number of required vans, either in total or by company. At airports with multiple terminals, dispatchers are responsible for directing vans to a specific terminal. • Briefly inspecting the appearance of vans and drivers to ensure that they comply with airport rules and have required airport-issued permits or licenses. • Greeting potential customers, confirming they are seeking shared-ride service, their destination, and whether the cus- tomer prefers a specific company or has prior reservations for a specific company. • Assigning passengers to the appropriate vehicle. At some airports this may be simply the next vehicle waiting in line, or at other airports it may require customers to wait in a specific zone where they are grouped with other customers wishing to travel in a specific company, or going to a similar geographic area or destination. • Ensuring that drivers exit the airport within the prescribed time. At many airports, shared-ride van drivers are required to exit the airport within 20 to 30 minutes after the first customer has boarded the van.

30 • Allowing authorized commercial ground transportation operators to provide better customer service and potentially attract additional customers in contrast to those operators who have not obtained an airport permit and thus cannot stop at the designated boarding area To gain access to the boarding areas at a gated facility, drivers of authorized commercial ground transportation vehi- cles must activate the gate-control mechanism using an access card or other media recognized by the reader controlling the gate arm. The most commonly used media are proximity cards and RFID transponders or tags. Because a proximity card must be placed in close proximity (e.g., within several inches of a reader), a driver must stop, open their window, present the card in front of the reader, and wait for the gate arm to raise before proceeding. In contrast an RFID tag may be recognized by an RFID reader from a distance of up to about 18 feet, and while a vehicle is in motion. Thus, at a gated facility controlled by a ground transportation management (GTM) system using RFID, the driver must simply slow down or stop to wait for the gate arm to rise before proceeding. Some airports have gate arms at both the entrance and exit of the curbside area, with the exit gate controlled either by a proximity card, RFID tag reader, or more commonly a vehicle “presence” detector embedded in the pavement. Vehicle queues may form at the entry gate lanes, which have a capacity of about 400 to 450 vehicles per hour per lane. To safely accommodate any vehicle queues that may form in front of the access gate due to the time required to activate the gate, a queuing area or lane should be provided that allows other traffic to bypass these queues, with the length of the queuing lane determined by the volume of peak hour com- mercial ground transportation vehicles entering the boarding area and the type of access control technology. Enforcement at a gated facility is as follows. Vehicles with- out an active RFID tag or proximity card cannot gain access to the boarding area. Moreover, the airport operator may deny access to a commercial ground transportation opera- tor or vehicle that is no longer authorized to serve the airport (whether as a result of having violated airport rules or for other reasons) by simply deactivating or turning off the RFID tags or proximity cards. Airports have found that denying curbside access and thus adversely affecting the ground trans- portation operator’s ability to conduct business is a strong incentive for the operator to avoid similar violations in the future, including addressing late payments or lapsed insurance coverage. Access Controls at An Ungated Facility At many airports, particularly those with older roadway layouts, it is not practical to install a physical barrier or entry At airports with exclusive or semi-exclusive concession con- tracts, the shared-ride van dispatcher (or customer service representative) is typically an employee of the concessionaire. In such an environment the dispatcher’s responsibilities typi- cally include: • Communicating with the company dispatcher via radio, wireless tablet, or other means to indicate when additional vans are required. As the company dispatcher is responsible for coordination of all vans in a city or region, he/she may not be located on the airport but rather at the company’s offices or base yard. The company dispatcher determines which van drivers should exit the hold lot, when they should do so, and to which terminals they should proceed. • Greeting potential customers, asking them if they want shared-ride van services, their destination, and whether they have a prior reservation. • In accord with the instruction of the company dispatcher, the curbside dispatcher (customer service representative) is responsible for showing customers which vehicle to board, typically the next vehicle going to the customer’s geographic destination. • Ensuring that drivers exit the airport within the prescribed time. Use of RFID and Other Access Control Technologies As noted, most airports restrict which commercial ground transportation vehicles may stop and pick up passengers and the location of the curbside or other boarding areas where they may do so. Airport operators use a variety of access controls to restrict vehicle access to the designated boarding areas. The type of control depends on whether or not access to these boarding areas is controlled by a gate. Access controls also allow an airport to monitor how often authorized vehicles enter the curbside or other boarding area (i.e., volume of trips) and how long they remain in the area (i.e., dwell times). As described in subsequent sections the number of trips and length of dwell times are frequently used to calculate commercial vehicle fees. Access Controls at a Gated Facility A gated facility allows the airport operator to prevent unauthorized commercial ground transportation vehicles or private vehicles from entering the designated boarding areas. This separation has several advantages including: • Promoting safer traffic operations as drivers unfamiliar with the airport are segregated from professional drivers who regularly use the airport

31 significant oversupply of taxicabs, drivers may wait 4 hours or more for customers, particularly during off-peak periods. Such waits are more common in cities where the airport cus- tomers represent the largest volume of on-demand taxicab business in the community and where there is an open system. Long waits between airport customers limit the number of customers a driver can serve and the income the driver can earn. A driver’s earnings depend upon their ability to make sufficient trips to cover their fixed costs (e.g., fuel, vehicle lease, vehicle maintenance, and dispatch fees). Drivers who are unable to cover their costs on a regular basis are more likely to attempt to reduce their costs or increase their income by deferring vehicle maintenance, refusing low-fare trips, over- charging customers, or otherwise engaging in improper or prohibited actions. At airports where drivers have long waits, airport staff devote more effort to inspecting drivers and vehicles and enforcing rules and regulations than the staff at airports where drivers have the opportunity to earn a higher income—either due to the wait times or the fares per trip. Chapter 8 Section A4 describes examples of best practices used to manage an oversupply of taxicabs. As noted, these include limits on (1) the number of taxicabs allowed to serve an airport each day (e.g., a rotation system), (2) the size of the hold lot to force drivers to either wait elsewhere or seek customers in other parts of the community, and (3) the num- ber of authorized taxicab vehicles or companies. Chapter 8 Section A also describes measures to address trip refusals, including short trip procedures. Undersupply An undersupply is also undesirable as it results in customers having long waits for an on-demand taxicab. Long waits typically occur when (1) there is a high demand for taxi- cabs elsewhere in the community due to conventions or on rainy or snowy days, (2) there are unexpected demands due to flight delays or flight diversions at hours when normally there are few airline passengers seeking taxicab service, and (3) drivers prefer not to work, particularly at smaller airports, such as during dinner hours, on holidays, or when there are slippery roads. Airport staff manage an undersupply by alerting drivers and companies that there is a need for taxicabs, requesting that customers share a cab, diverting potential customers to other transportation services, mandating that drivers work a minimum number of hours or days, or using other procedures and technologies described in Chapter 9. Schedule/Headway Management Airport staff monitor scheduled bus/van schedules to ensure customers are provided the service advertised by a provider. gate on the curbside roadway due to a lack of parallel entry lanes for private vehicles and/or space for vehicle queues and a gate arm mechanism. At airports without entry barriers, airport staff must carefully monitor and enforce the curbside areas to prevent private vehicles or unauthorized commercial vehicles from stopping in the areas allocated to commercial vehicles. If the curbside areas designated for their use are occupied by unauthorized vehicles, commercial vehicles may have to double park to pick up waiting customers or may be unable to exit the curbside area after picking up customers. Both of these situations are undesirable as they reduce cus- tomer service and safety. To help identify unauthorized vehicles, most airports require authorized commercial vehicles to display airport-issued decals and many, even those without access gates, require that they have vehicle-mounted RFID tags or transponders. The decals allow staff to readily confirm that a commercial vehicle operator has a current airport permit. The RFID transponders allow passing vehicles to be detected, even if they do not stop, and the commercial vehicle trip volumes to be monitored and vehicle dwell times recorded. Enforcement may be supple- mented by portable RFID readers. Additional information about RFID and GTM systems is provided in Chapter 9. Managing Oversupply and Undersupply of On-Demand Taxis and Other Services Ideally the supply and demand for transportation service would be perfectly matched, i.e., there would be a waiting taxicab available to serve each airport customer as he or she arrives at the curbside boarding area, and that vehicle would have arrived at the curbside only moments beforehand. In reality this ideal situation rarely, if ever, occurs, and typically there is instead an oversupply or undersupply of taxicabs or other vehicles. The following paragraphs address the oversupply and undersupply of taxicabs because this is the transportation service that is most likely to have an imbalance between supply and demand, particularly at smaller airports and at airports where any taxicab having a city license can obtain an airport permit and wait for customers at the airport (i.e., an open system). However, there also may be an imbalance between the supply and demand of shared-ride vans or other types of commercial vehicles when these on-demand services operate in an open access environment. Oversupply A large oversupply is undesirable as it results in taxicab drivers having long waits for customers. At airports that have attempted to balance supply and demand, taxicab drivers may wait 2 hours or less for a customer. At airports with a

32 parallel curb space. For example, because of their limited turning radii a 40-foot bus or coach may require a 60 ft-long space while a 16-ft long car may require 22 to 25 feet. Typically professional drivers require less space than do the drivers of similarly sized private vehicles. The areas reserved for taxicab boarding generally provide sufficient space for at least two or three taxicabs. The actual number of spaces required depends on the number of cus- tomers needing a taxicab during the peak period. Three cabs require about 55 to 60 linear feet since the vehicles generally exit in a sequential manner. A longer space (e.g., 75 feet) may be required if exiting taxicabs frequently need to bypass other vehicles (e.g., those stopped while a driver places a customer’s baggage in the trunk). The amount of space required may be affected by the time required by taxicabs to travel from the hold lot to the boarding area, the volume of taxicabs dispatched during the peak hours, and the type of taxicab operation (e.g., an open system may require more space than an exclusive/ semi-exclusive system due to less efficient operations). The area reserved for shared-ride vans will depend on whether the service is operated using an open or exclusive/ semi-exclusive system. The operator of an exclusive/semi- exclusive system may only need space for two vehicles per company. Space for more vehicles may be warranted depending on the volume of passengers and destinations served. The amount of space allocated to other commercial ground transportation services will depend on the goals of airport management and the space available (see Chapter 2). Planners generally prefer a 20-foot wide sidewalk adjacent to the boarding area to provide sufficient space for waiting customers and their baggage, and to allow other passengers walking along the curbside in opposite directions to bypass the waiting customers. Airports may provide benches or passenger shelters at the areas where passengers are more likely to encounter long waits for vehicles (e.g., scheduled buses or hotel/motel courtesy vehicles). Typical Curbside Allocation Considerations Frequently the demand for curbside space exceeds the usable space available (the space available for use after omitting the space devoted to crosswalks, reserved for disabled passengers or airport vehicles, or obstructed by columns or other obstruc- tions). As a result airport operators must prioritize the loca- tion and amount of space allocated to the various vehicles and services desiring access to the curbsides. Typically airport staff allocate curb space in a manner reflecting the relevant goals of airport management. These goals and their priorities vary from airport to airport, but some of the goals considered when allocating curb space typically include: • Provide a safe environment for pedestrians and motorists by providing sufficiently wide sidewalks, allocating adequate They may also monitor headways of courtesy vehicles to encourage efficient use of curbside areas. Oversight of Scheduled Services Customers expect scheduled buses and vans to depart the airport at the times shown in published schedules. Airport staff may receive customer complaints if a scheduled ground transportation company provides unreliable service includ- ing delayed airport departures/arrivals or trip cancellations, particularly if the provider does not provide adequate advance notice or does not attempt to provide alternative transporta- tion. A GTM system can be used to monitor an operator’s schedule adherence and provide data to support allegations that an operator is performing unsatisfactorily. Oversight of Courtesy Vehicle Headways At some airports the operators of off-airport parking and rental car courtesy vehicles attempt to maintain a constant pres- ence at the arrivals curbside (e.g., a bump and run operation) or operate their courtesy vehicles at very short headways. These businesses do so to attract new customers and enhance their revenues by promoting customer awareness and increasing visibility of their service, and to some extent minimizing cus- tomer wait times. Some airport staff refer to this type of courtesy vehicle operation as “moving billboards.” However, this practice results in inefficient curbside use by these courtesy vehicles as, rather than just stopping when actively boarding passengers, they occupy valuable space for much longer than necessary. As described in subsequent chapters, some airports have implemented rules encouraging the use of consolidated courtesy vehicles, prohibiting bump and run operations, or limiting the number of trips each company is allowed to make. Curbside Boarding Areas At most airports commercial ground transportation vehicles stop and wait for arriving customers on the curbside roadway located adjacent to the baggage claim area. The curbside area may be located adjacent to the terminal building or along a raised island separating an inner and outer roadway. Most frequently the commercial vehicles are stopped parallel to the curbside, but other airports use creative boarding areas, which are described in Chapter 8 Section I. ACRP Report 40: Airport Curbside and Terminal Area Roadway Operations provides detailed information about curbside layouts and operations. Operational Needs Vehicles require a curbside space that is longer than the vehicle’s total length (i.e., bumper-to-bumper) in order to provide adequate room for maneuvering into and out of a

33 there is a special request for a vehicle or van capable of trans- porting a large party or a disabled passenger, a specific company (e.g., a customer with a company voucher), or other special needs. Airport staff often require taxicab drivers to park in a single file (i.e., nose-to-tail) or in a group of parallel nose-to-tail queues to allow them and other drivers to more easily monitor the correct sequencing of vehicles. Other types of vehicles typically park in designated spaces in the hold lot. Purpose of a Hold Lot Hold lots help airport operators monitor the supply of wait- ing taxicabs and ensure there are sufficient waiting vehicles to respond to the needs of airport customers without occupying terminal curb space that is best used for active loading and unloading of airline passengers. They also allow an airport operator to inspect waiting vehicles, collect required fees, and respond promptly and efficiently to the needs of customers having special requests. Hold lots enable waiting drivers to access toilets, a waiting area or lounge, and food/beverage con- cessions, if these facilities are provided at the airport, and also provide an opportunity for drivers to socialize with their peers. Determining the Size of a Hold Lot At a minimum, a hold lot should provide adequate space to store the vehicles that will be needed to serve the number of airport customers seeking on-demand taxicab service during the peak hours of a typical busy day. These demands should be adjusted to allow for (1) the time required to replenish the hold area (i.e., the time required for a taxicab to travel from the airport to downtown or other popular destination and back to the airport), (2) unusual but regularly occurring peak periods (e.g., those coinciding with conferences, conventions, or other events), (3) forecast increases in customer demand, and (4) space for waiting limousines, shared-ride vans, and scheduled and chartered buses and vans. Other considerations include the size of available sites and airport policies. Ideally the site should be located near and have an uncongested travel path to the terminal curbside (in order to minimize travel time and line jumping by drivers enroute to the terminal), located on level ground, screened from public view, and readily accessible from the regional roadway network. Airport policies may affect the minimum hold lot size as taxicabs and other commercial ground transportation services operated under exclusive/semi-exclusive concession contract typically require a smaller hold lot than those operated under an open system due to the more efficient operations associated with a concession contract. In order to reduce driver waiting time and encourage drivers to serve other parts of the com- munity, some airports limit the capacity of the hold lot, in an attempt to force drivers to wait or work elsewhere. space for vehicles to maneuver into and out of assigned passenger boarding areas, minimizing the volume of passen- gers who must cross an active roadway, separating private and commercial vehicles, and enforcing limits on the length of time a motorist may linger at the curbside. • Address customer expectations by locating ground trans- portation services that customers normally expect to find at an airport curbside (e.g., on-demand taxicabs) in a visible location. • Encourage the use of public transportation/efficient airport access modes by providing convenient boarding areas for scheduled buses/vans and public transit services, with some airport operators assigning these services to the curbside areas immediately adjacent to the terminal. • Consider revenues received from each class of service by allocat- ing the more visible and convenient curbside spaces to those transportation services that generate significant airport revenues (e.g., on-airport parking and rental car shuttles). • Recognize competition among ground transportation provid- ers by (1) separating competing operators (e.g., on-demand taxicabs, shared-ride vans, and limousines) while attempting to provide them with equivalent access to deplaning airline passengers, and by (2) distinguishing between airport and off-airport operated public parking courtesy vehicles. • Provide adequate space for large buses and coaches recogniz- ing the space required by these vehicles to maneuver into and out of a space as described in the above paragraphs. • Facilitate ability to control and enforce by separating private vehicles from commercial ground transportation vehicles, and if space is available, by clearly designating separate boarding areas for differing classes of commercial ground transportation service. Other considerations may include giving priority to vehi- cles using alternative fuels, prioritizing public transportation vehicles, or considering the ratio of passengers transported to linear feet of curb space required. Commercial Vehicle Hold Lots A hold lot is a designated area where commercial ground transportation vehicles and their drivers are required to wait until they are authorized to proceed to the passenger board- ing area adjacent to the baggage claim area or other location. Taxicabs are the primary users of hold lots but they may also be used by limousines, TNCs, shared-ride vans, chartered buses/vans, and scheduled buses/vans. An alternative to the hold lot, more often used at smaller airports, is a taxicab chute or mini-queue, where the waiting taxicabs are in sight of the end of the taxicab boarding area. Taxicab drivers typically proceed from the hold lot to the curbside boarding area in a first-in, first-out manner unless

34 to as permit fees. These permit fees are normally calculated on a per-vehicle or per-company basis. At some airports, all commercial ground transportation operators pay exactly the same fee, while at other airports operators pay permit fees that vary according to the type of ground transportation ser- vice provided, the size or type of vehicle used, or the size of the ground transportation business. Cost-Recovery Fees Many airport operators require that commercial ground transportation operators doing business at the airport pay fees that allow the airport sponsor to recover all or a portion of the costs it incurs in (1) providing and maintaining the facilities used directly by commercial ground transportation operators, and (2) monitoring and enforcing these ground transportation services. These facilities include the roadways, passenger curbside boarding areas, and vehicle hold lots, and the equipment used to monitor and enforce operations. Cost-recovery fees are established by comparing an airport sponsor’s costs of providing, maintaining, and enforcing the facilities used directly by commercial ground transportation operators with the use of these facilities by the providers. Most commonly this implies comparing the annual or bud- geted costs of the airport operator with the annual volume of commercial vehicle trips. As such, these cost-recovery fees are often referred to as “per-trip” fees. These trips may be estab- lished using data obtained from an existing GTM system or estimated based upon surveys of commercial vehicle activity. The amount of these per-trip fees may vary by the type of ground transportation service, vehicle size or capacity, type of fuel used, or other measures reflecting the use (or lack of use) of some facilities. For example, courtesy vehicle providers would not be allocated the costs associated with taxicab hold lots and taxicab dispatchers as they are not used by courtesy vehicles. Dwell Time Charges or Fees Airport operators seek to provide desired levels of customer service and to efficiently manage roadway traffic and minimize roadway congestion on terminal area curbside roadways. To help achieve such goals numerous airport operators limit the length of time commercial ground transportation vehicles may remain standing (or dwelling) at the curbside roadway or passenger boarding area and levy fees on the operators of vehicles whose dwell times exceed the established maximum time limits. These fees, often referred to as dwell time fees or charges, may vary according to the vehicle size and type of commercial vehicle service. For example, full-size charter buses or coaches are allowed to dwell at the curbside longer than courtesy vehicles, reflecting the larger number of boarding Some airports have implemented a “staging” lot in addi- tion to a hold lot when a significant number of vehicles are present on the airport at the same time and space is not avail- able at one location to handle all of the waiting vehicles. In this situation, vehicles are moved (manually or by technology) from the staging area to the hold lot as they are needed to maintain a nearly full hold lot. Amenities for Commercial Vehicle Drivers The airport-provided amenities in the hold lot for the drivers of taxicabs and other commercial ground transporta- tion services vary by airport size. Chapter 8 Section A10 pro- vides details on the amenities provided in the hold lot. Commercial Ground Transportation Fees Most airport operators require that commercial ground transportation businesses picking up airline passengers on the airport agree to abide by airport rules and regulations and enter into a formal business relationship with the airport sponsor confirming their willingness to do so. These business relationships are described in a document often referred to as an airport permit. The airport operator’s rules may regulate the operations of commercial ground vehicles and drivers while they are on the airport including requiring the use of properly licensed vehicles and drivers, assuring drivers and other employees are trained in the use of airport roadways and other facilities, and that the business maintains required amounts and types of insurance. Types of Airport Fees U.S. airport operators are legally required by the FAA to be as financially self-sufficient as possible (i.e., to operate in a “breakeven” manner). Thus, airport operators have the right to charge commercial ground transportation companies doing business on the airport (i.e., picking up airline passengers) fees to preserve existing sources of revenue and generate addi- tional revenue consistent with management’s relevant goals. The airport permit may require a commercial ground trans- portation business to pay certain fees, which are described in the following paragraphs. Airport Permit Fees By signing the permit, the commercial vehicle operator confirms that they will abide by the airport’s rules and regu- lations. Typically the airport operator charges a fee that at a minimum recovers the airport operator’s costs of issuing and administering the permits. These fees are commonly referred

35 airport, the estimated revenues resulting from imposition of the fee, and the fees charged by other airports to establish a rational basis for the establishment of the fees.1 A business such as an off-airport rental car business may be required to pay both a privilege fee and a cost-recovery fee, or alterna- tively be allowed to credit one fee against the other, thus only paying the larger of these two fees. Demand Management Fees Some airports have instituted measures to limit the volume of courtesy vehicle trips on airport roadways. These restric- tions are implemented to (a) reduce traffic congestion on airport roadways, (b) improve air quality by reducing vehicle- generated emissions, and (c) discourage operators from mak- ing non-essential trips—particularly those operators seeking to advertise or market their services by circulating repeatedly past the terminal buildings. Among the restrictions on cour- tesy vehicle trips that may be used to achieve these objectives are (1) a cap on the number of courtesy vehicle trips made by each courtesy vehicle operator (e.g., 1,500 trips per month per hotel/motel operator), and (2) limits on the minimum time interval between courtesy vehicles serving a business (e.g., there must be 15 minutes or more between successive courtesy vehicles operated by the same company). Both types of restrictions require the use of GTM systems to monitor the volume of courtesy vehicle trips and/or the time between suc- cessive courtesy vehicles, and, when necessary, provide a basis for calculating fines or penalties. Chapter 8 Section E1 provides additional information about demand management fees. Legal Considerations Additional information regarding the legal basis for the above commercial ground transportation fees can be found in ACRP Legal Research Digest 3: Survey of Laws and Regula- tions of Airport Commercial Ground Transportation. This docu- ment provides a listing of federal, state, and local commercial ground transportation rules with extensive examples of each. The report examines the commercial ground transportation regulatory systems at each of the nation’s busiest airports. It also provides citations for the relevant statewide regulations and applicable case histories. While federal and state courts have repeatedly upheld the right of an airport operator to charge the fees described above, the specific legal basis or technical requirements may vary by jurisdiction. passengers and large volume of baggage. On-demand taxicabs are normally exempt from dwell time limits since they are expected to remain at the curbside area waiting for deplaning airline passengers. GTM systems are often used to monitor the length of time each commercial ground transportation vehicle remains on the curbside roadway and, when necessary, provide a basis for calculating the dwell time fees. Dwell time fees may vary depending on the airport management’s policy and the esti- mated fee required to discourage excessive dwell times. How- ever, dwell time fees are often three to five times the equivalent cost per minute of the established cost-recovery fee. Privilege Fees As noted, airport operators are legally required to be as financially self-sufficient as possible, and have the right to charge fees to commercial ground transportation companies doing business on the airport. Companies that are doing busi- ness at an airport and therefore benefiting from the presence of the airport are frequently required to pay for these ben- efits. Many airport operators require that commercial ground transportation operators pay fees that reflect the overall busi- ness benefit or privilege that the commercial ground trans- portation operators receive as a result of the presence of the entire airport and their access to the traveling public. Such fees, referred to as privilege fees, are calculated based on the volume of airport-related business conducted by each com- mercial ground transportation operator. Businesses operating on- and off-airport rental car companies and off-airport park- ing facilities are frequently charged privilege fees. On-airport parking businesses operated by or for the airport sponsor are not charged such fees since it would not make sense for the airport operator to pay a fee to itself. These fees can be calculated in a variety of ways including (1) using indirect measures of a ground transportation opera- tor’s volume of airport-related business (e.g., a fee per taxicab vehicle permit, per deplaning passenger, per courtesy vehi- cle, per trip, per parking space, per rental car vehicle in the fleet, or by another measure), or (2) more commonly a direct measure of the company’s airport-related business (e.g., a percentage of the operator’s airport-related gross revenues). Since privilege fees reflect the business benefit a commercial ground transportation operator receives from the presence of the entire airport, these fees differ from per-trip fees, which allow an airport operator to recover all or a portion of the costs incurred in providing and maintaining just the roadways and other facilities used directly by commercial ground transpor- tation operators. When establishing the amount of a privilege fee, airport operators commonly review the privilege fees paid by other similar businesses, other companies doing business on the 1 The current commercial vehicle fees charged at other airports can be obtained by contacting peer airports, referring to the most recent Airport Ground Trans- portation Association (AGTA) Fees and Fares Survey, or from other sources listed in the bibliography (see Appendix C).

36 Extensive literature is available documenting relevant best practices, strategies and techniques (e.g., ACRP Report 4). Key considerations include prioritizing the location, amount, and use of curb space allocated to public buses. For example, the curb space allocated to public transit should be convenient but should be used solely for passenger pickup and drop-off. Airport operators typically discourage the use of terminal area curb space by transit agencies wishing to store out-of-service buses while drivers are on breaks, or buses parked for long periods to allow for transfers between bus routes. The weight and height of the buses may be an additional consider- ation at airports having multilevel curbside roadways. Airport Transportation Services Provided by the Airlines Occasionally airlines provide ground transportation to their customers. For example, airlines regularly charter buses, vans, and/or taxicabs to transport customers to nearby air- ports when the customer’s flight has been delayed, diverted, or incurred other irregular operations. Some international airlines (e.g., Etihad, Gulf, Qatar, Qantas, and Virgin Atlantic) offer limousine service to and from the airport to customers traveling in first or business class. Typically these ground transportation services are provided by businesses having valid airport permits and who pay airport fees, but there may be unusual circumstances where this is not the case because an airline has arranged for the transportation service. For example, there have been instances where taxicab drivers who received vouchers from customers or directly from an airline believed that, because they were being compensated by an airline, they did not need to pay an airport exit or trip fee. There have also been instances where a prearranged limousine company passed on its airport fines to the international air- line which had originally arranged for the limousine services, with the airline claiming unsuccessfully that it should be exempt from such fines. Historically some international airlines have attempted to avoid all airport ground transportation fees, arguing that these costs are included in the airport landing fees, rental rates, and other charges they already pay. Implementation Challenges Opposition from commercial ground transportation businesses represents the key challenge to establishing com- mercial ground transportation fees. Since many peer airports can be shown to have already implemented such fees, and since the courts have repeatedly upheld the rights of an airport to impose such fees, these businesses often use political methods to oppose or delay implementation. When implementation of proposed fees requires approval of an appointed airport board or the elected members of a city council or other agency, airport management can benefit from meeting with the members to explain the reasons for imposing such fees, how the fees will affect the airport and its customers, and the arguments that will be provided by ground transportation businesses who oppose the fees. Com- paring the fees with those paid by other similar businesses at the airport and those charged at other airports may be helpful. Members of the Legal Affairs Committee of Airport Council International-North America and similar organiza- tions may provide useful advice. Airport Transportation Services Provided by Public Transportation Agencies Scheduled bus and rail service, and occasionally ferry service to and from an airport, is frequently provided by a municipal or regional public transportation agency. Normally such tran- sit services consist of traditional service (i.e., multistop, sched- uled, fixed-route service) which is an extension of the agency’s local bus and/or rail network, and are available at much lower fares than scheduled express or limited stop service that may be offered by private operators. Generally airports do not require public transit agencies to pay commercial ground transportation fees because (1) they are public, not-for-profit agencies, and (2) the transit agency and airport may be operated by the same or sister agencies. Air- port operators typically seek to encourage and promote use of public transportation by their customers and employees.