Innovative Revenue Strategies – An Airport Guide (2015)

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4 1 Chapter 4 Airport Entrepreneurial Activity – Part I 4.1 A Revenue Strategy of Ingenuity and Necessity 4.2 Scope of the Strategy 4.3 Techniques to Implement the Strategy 4.4 Techniques by Funconal Area 4.5 Implementaon Issues 4.6 Wrap up 4.7 Addional References Chapters 4 and 5 highlight entrepreneurial acvies that provide opportunies for an airport sponsor to achieve addional revenue. This chapter focuses on airport provided services to airlines, tenants, and passengers at market rates and achievement of economies of scale through shared use of services, facilies, systems, and equipment. Chapter 5 discusses airport sponsor parcipaon in the development of real estate, natural resources, and other non aeronaucal businesses on airport property. 4.1 A REVENUE STRATEGY OF INGENUITY AND NECESSITY In many respects, the entrepreneurial strategy addresses the realies of airport operaons in the post recession economy. Following rapid and severe capacity cuts by the major U.S. airlines in 2008 2009, many airports scrambled to address the need for addional revenues and to postpone capital projects. Necessity provoked ingenuity. Airports have a long history of adopng entrepreneurial strategies to address the unexpected exit of a principal carrier or service provider. For example, Springfield Branson Naonal Airport solved a shortage of ground handling support by forming an airport operated ground handling company that offered both above the wing and below the wing services. The airport always owned and operated the fixed base operator (FBO) and fuel farm. In 2002, however, when the airport sponsor could not secure a third party to provide ground handling for the 80 to 100 charter aircra that arrived annually, airport Airport-Provided Services/Shared Use of Facilities, Systems, and Equipment

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 2 management decided to offer ground services to charters by cross ulizing airport personnel. Thus began a logical build out of airport provided, above the wing and below the wing services to commercial and charter airlines. These services have contributed directly to net revenues to the airport sponsor. Ground handling services also provide Springfield Branson with important indirect benefits in the form of retained air service and increased passengers. Necessity for invenon applies to airports of all sizes. Following US Airways’ shutdown of its Piˆsburgh hub, the Allegheny County Airport Authority (ACAA) adopted elements of this strategy as an integral part of operaons in several funconal areas of the airport. For example, to address a need to repair and maintain airport owned passenger boarding bridges (PBBs), ACAA partnered with JBT AeroTech to maintain and refurbish PBBs on airport property at a specially modified hangar formerly owned and operated by US Airways as a maintenance hangar. Today, the scope of jet bridge refurbishment has expanded. The facility repairs PBBs from several different commercial airports east of the Mississippi River. ACAA operates and staffs the facility as a revenue producing enterprise. ACAA also addressed public pressure for a free cell phone lot by carving out a secon of an exisng (and underused) extended stay parking lot. The lot was located adjacent to a convenience store offering home style cooking and a gas staon. Because the lot is within the automated parking area, users take a parking card upon entrance, receive the first 60 minutes free, and then pay regular parking rates a–er the first hour. The lot also is adjacent to the airport’s internal bus system, so users can leave their car and take a bus to the terminal or walk over to the convenience store. Either way, there is opportunity for concession revenue to ACAA and an automac cap on free parking beyond 60 minutes. Because the cell phone lot is situated within the exisng parking area, there was no addional cost to install card readers and lighng and the lot was already secured. Although there may be erosion of first hour parking revenues, the lot appears to have aˆracted otherwise non revenue users who would have either circled the airport or parked off airport to wait for arrivals. 4.2 SCOPE OF THE STRATEGY This entrepreneurial strategy focuses on three elements as described in Figure 4 1: Airport provided services Shared services Shared facilies, systems, and equipment

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 3 Figure 4 1: Elements of the Strategy Source: KRAMER aerotek inc., 2014 The airport entrepreneurial strategies place a high value on opera„ng efficiencies and the provision of services directly by airport staff or service contracts. The business arrangement would recover the direct expenses and the fully allocated indirect expenses plus a modest profit of 10% to 15%. When using airport staff, high quality and reliable service will make the op„on compe„„ve and mutually beneficial to tenants and the airport sponsor. For smaller airports, addi„onal services present an opportunity to cross u„lize staff. For example, terminal and airside maintenance staff can also provide aircra˜ and passenger processing services. An airport sponsor also can enter into a service contract agreement with a private en„ty providing the services for a specified period. The private provider is paid a fee and reimbursed for expenses based on a budget approved by the airport sponsor. This approach results in the airport controlling the quality and important characteris„cs of the services provided. Airports are moving toward the use of common airline terminal facili„es. This evolu„on is driven by the airport sponsor’s desire to op„mize use of exis„ng facili„es and drive down the airlines’ cost per enplaned passenger. Airports like McCarran Interna„onal Airport are implemen„ng systems whereby any airline can operate from any „cket counter, hold room, or aircra˜ gate. The evolu„on provides the airport sponsor with the opportunity to charge fees for facili„es management, schedules, and administra„on. Table 4 1 lists airport facili„es, services, and equipment that have poten„al or limited poten„al for airport entrepreneurial ac„vity or shared use. The objec„ve for the airport sponsor is to achieve incremental revenue improvement, recover costs, or improve opera„onal efficiency. As with every idea presented in this Airport Guide, implementa„on at a specific airport requires careful analysis and feasibility assessment. Airport Provided Services •Services are provided directly or indirectly to airport tenants and passengers by the airport for profit. Examples of these services are passenger processing for the airlines, above the wing and below the wing ground services, logis„cal support for concessionaires, and waste removal services for tenants. Shared Services •Services are shared through common providers to create cri„cal mass of ac„vity and spread fixed cost and overhead over a broader base and reduce the cost of services for all that par„cipate. Shared services can include janitorial, apron cleaning, trash removal, and re lamping. Shared Facilies, Systems, & Equipment •Sharing and cross u„liza„on improve efficiency, reduce user cost, and reduce the volume of facili„es necessary to accommodate ac„vity. Examples of shared facili„es and systems are passenger gates, hold rooms, cargo facili„es, IT backbone, Wi Fi systems, and communica„on systems.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 4 Table 4 1: Services/Facilies with Potenal for Revenue Improvement, Cost Recovery & Operaonal Efficiency Revenue Improvement, Cost Recovery, Operaonal Efficiency Potenal Limited Potenal Airport Provided Services Airport Tenants Badging Building Services to Airlines & Concessionaires Logiscs Services & Warehousing for Concessionaires Trash Removal & Recycling Ulies Reimbursement Air Passengers Lounges/Clubrooms Meeng Rooms Ground Handling (Commercial, Charter, GA) Above the Wing Below the Wing Deicing Glycol Recovery and Recycling Fueling Vehicles Shared Services Baggage Delivery Services Curbside or Remote Baggage Drop off and Check in Janitorial Joint Markeng and Adversing Maintenance on Baggage Systems/PBB Wi Fi Wheelchair Services Shared Facilies, Systems, & Equipment Communicaons Systems and Cell Phone Towers Consolidated Air Cargo Facility Consolidated Fuel Farm Dynamic Signage and Way finding Ground Services Equipment and Maintenance Facility Paging Shared Gates Ramp Control Source: KRAMER aerotek inc., 2014

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 5 4.3 TECHNIQUES TO IMPLEMENT THE STRATEGY Each airport provided service or shared use opportunity described in Table 4.1 is associated with different departments or func onal areas of the airport. The relevant departments or func onal areas are: Aircraƒ & Passenger Services – AS Business Development – BD Cargo – CA Energy Management & Alterna ves – EN Environmental – EV Planning, Design, & Administra on – PL Terminal Opera ons – TO Table 4 2 reorganizes implementa on techniques by func onal area and indicates what types of airports might consider use of the techniques. Table 4 2: Techniques to Implement the Strategy by Funconal Area Code Strategy Implementaon Target Airports Impacted Airport Area Aircra & Passenger Services – AS AS 1 Above the Wing Small Commercial Terminal and Gates AS 2 Below the Wing Small Commercial/GA Ramp AS 3 Deicing Small Commercial/GA Deicing Pads AS 4 Glycol Recovery and Recycling Large Commercial,Nearby Smaller Airports Deicing Pads AS 5 Fuel Sales and Fueling Vehicles Small Commercial/GA Ramp AS 6 Consolidated Fuel Farm Small Commercial/GA Fuel Farm AS 7 Ground Services Equipment andMaintenance Facility Small Commercial/GA Ramp/Maintenance Business Development – BD BD 5 Communicaon Systems andCell Phone Towers Medium/Large Commercial Building Roof Areas BD 6 Joint Markeng and Adversing Medium/LargeCommercial Concessions Cargo – CA CA 1 Consolidated Air Cargo Facility All Commercial Cargo Area Energy Management & Alternaves – EN EN 1 Ulies Reimbursement/SeparatelyMetered Ulies All Commercial Airport Tenants Environmental – EV EV 1 Trash Removal and Recycling All Airports Terminal/Aircra„ Cabins/FlightKitchens (connued on next page)

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 6 Table 4 2 (Connued). 4.4 TECHNIQUES BY FUNCTIONAL AREA The following secons describe individual techniques by funconal area. 4.4.1 Aircraft & Passenger Services - AS AS 1 AND AS 2 ABOVE THE WING AND BELOW THE WING SERVICES The provision of ground handling services is a technique primarily suited for small commercial airports. At small hub and non hub airports, redundant equipment can be an issue. Each carrier can have its own deicer, lavatory carts, tugs, ground power units (GPUs), potable water, and so forth. An airport sponsor can offer these services directly or through a contract vendor. Some airports provide these services at or below cost as incenves to a†ract or retain carriers. Code Strategy Implementaon Target Airports Impacted Airport Area Planning, Design, & Administraon – PL PL-1 Badging Medium/Large Commercial Terminal Area/Airfield Terminal Operaons – TO TO-4 Baggage Delivery Services Medium/Large Commercial Baggage Areas TO-5 Building Services to Airlines and Concessionaires All Commercial Terminal TO-6 Curbside or Remote Baggage Drop-off and Check-in Medium/Large Commercial Terminal Area/Parking TO-7 Janitorial All Commercial Terminal TO-8 Logis cs Services and Warehousing for Concessionaires Medium/Large Commercial Terminal TO-9 Lounges/Clubrooms All Commercial Terminal TO-10 Mee ng Rooms All Airports Terminal TO-11 Shared Gates All Commercial Gate Area TO-12 Wheelchair Services All Commercial Terminal Source: KRAMER aerotek inc., 2014

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 7 Ground handling involves two components: below the wing, which involves servicing the aircra€, and above the wing, which primarily involves passenger services. Table 4 3 shows examples of above the wing and below the wing services. Table 4 3: Examples of Above the Wing and Below the Wing Services Below the Wing Above the Wing Aircra€ marshaling (parking) Aircra€ weights and balance Aircra€ pushback Baggage handling Cabin grooming (cabin cleaning for overnight aircra€) Commissary Cabin services Manifest prin‹ng Chock and un chock the aircra€ Passenger boarding Deicing Passenger check in Electrical recharging systems for ramp vehicles Passenger loading bridge opera ons Fueling Passenger support services Ground power, air start, and air condi oning Passenger cke ng Lavatory service or potable water service Resolving customer service ma
ers Lavatory servicing Resolving opera ons issues LNG sta on for LNG ramp vehicle Wheelchairs and pushers Loading and unloading baggage & cargo Source: KRAMER aerotek inc., 2014 In Europe, many airports provide ground handling services. In the United States, un l recently, most airlines took care of their own ground handling services. To reduce costs, airlines are turning to third par es to provide these services at a lower cost. For example, United Con nental Holdings announced that, in 2014, it would outsource approximately 635 jobs at 12 airport loca ons, including Buffalo, NY, Charlo
e, NC, and Detroit, MI. The outsourced jobs covered baggage handlers, customer service agents, gate agents, and cket agents. The airline had typically paid such workers from $12 to $24 per hour, whereas some vendors were star ng workers at $9 per hour. In 2013, United Con nental turned to third party vendors at six airports in the United States and three in Canada and, in so doing, reduced its own labor force by 500 jobs. American Airlines “Quad City Internaonal Airport (QCIA) entered the fueling business a™er the incumbent FBO terminated services at the airport. The Airport Authority organized the business as an LLC, QCIA Airport Services, to provide good customer service, offer compe ve wages, and be able to hire and fire as needed. With revenue from fueling, QCIA purchased ground handling equipment to service charters and further expanded when it successfully bid for Allegiant’s ground handling service.” – Bruce Carter, Airport Director, Quad Cies

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 8 engages Envoy (formerly American Eagle), a non union subsidiary, to provide airport services. Envoy also provides services to 20 other airlines at 125 airports. Delta has a non union subsidiary, Delta Global Services, which provides airport handling work at 100 airports for Delta and approximately 10 other carriers [The Wall Street Journal, July 7, 2014]. SomeŽmes the third party is the airport sponsor. Airport sponsors engage in ground handling services to: Generate addiŽonal revenue Fill a gap in ground services Improve and control customer service Provide a lower cost operaŽng environment for the airlines Use ground handling services to recruit and retain air service Ultra low cost carriers, such as Allegiant Air and Spirit Airlines, rely extensively on airport sponsors to provide both above the wing and below the wing services. Some airports have historically offered these services to charters and low frequency carriers. Bangor InternaŽonal and Springfield Branson NaŽonal airports offer ground handling services using airport staff. QCIA offers these services through an LLC, QCIA Airport Services. This separaŽon enables QCIA Airport Services to establish autonomy from QCIA (the airport sponsor) with respect to labor and business pracŽces. Another opŽon is for the airport sponsor to contract with a third party vendor to provide ground services. In these arrangements, the airports generally get a percentage of gross revenue from the service provider (and possible profit sharing), and the airlines get a lower cost per acŽvity because they are spreading the contractor’s fixed expense over a broader base of acŽvity from several airlines. The provision of ground handling services presents both advantages and disadvantages for the airport sponsor. Airports that decide to parŽcipate in the ground handling services can cross uŽlize staff that already work at the airport. Employees can perform various duŽes, such as above the wing and below the wing services for charter aircraœ and, during slow Žmes, work on special airport maintenance projects. AccounŽng departments and human resource departments also can provide support for these services. The ground handling business also comes with some risks. Analysis of the availability of a labor pool would be needed. Companies are constantly trying to reduce labor costs to maintain compeŽŽve pricing. As a result, wages paid to workers are low and there can be employee turnover. The airport sponsor must make sure that staff are trained in the parŽcular aircraft they will handle, as well as in safety and security protocols on the ramp. UlŽmately, the success of an airport sponsor ground handling business will depend on the ability to (a) deliver consistent and high quality services; (b) respond quickly to demand for services; (c) a¡ract and retain carrier business and staff; and (d) maintain cost controls and compeŽŽve pricing.

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 9 AS 3 DEICING At smaller commercial airports or general aviaon (GA) airports with significant winter operaons, a consolidated deicing operaon can make sense. Ground crews from the airlines, FBO, the airport sponsor, or a contract provider typically offer this service. If the airport also funcons as the FBO, deicing services might be among the aircra‹ services offered. Deicing equipment may be eligible for funding from passenger facility charge (PFC) receipts at commercial airports, thereby materially reducing the cost of equipment. AS 4 GLYCOL RECOVERY AND RECYCLING Glycol, a main ingredient in aircra‹ deicing fluid (ADF), is costly to treat and dispose. A single jetliner can send thousands of gallons of glycol contaminated storm water onto pavement and, without treatment, can damage the environment. In June 2012, EPA issued final guidelines for exisng airports with 1,000 or more annual jet departures. Under the guidelines, airports must meet a numeric effluent limitaon for ammonia or use non urea containing deicers and must monitor water quality for ADF pollutants.1 Many airports have relied on local, publicly owned sewage treatment plants for ADF disposal. Given the high cost of water treatment fees, however, larger airports are installing recovery and recycling systems that increase the amount of glycol captured and treated. Denver Internaonal Airport and Detroit Metropolitan Wayne County Airport are among the larger airports with sophiscated glycol recycling soluons. In 2009, Denver Internaonal’s glycol recycling operaon saved $1.4 million in fees for disposal in the municipal sewage treatment plant [Rhodes and Evans]. Recycling ADF is a business opportunity typically accomplished via a public private partnership (P3), with the public partner serving as the raw product supplier and paral guarantor and the private partner serving as the recycling agent. Two variables are crical to making a glycol facility viable as a privately financed and operated enterprise: (1) the quality of the untreated glycol mixture before it is recycled, and (2) the quanty guaranteed for delivery. Most contracts require that the untreated waste stream contain at least 1% glycol, with the remainder consisng primarily of water. Quanty also is important, as the recycler must have enough raw material to make sufficient saleable glycol products. The recycling agreement typically has a “put or pay” clause that requires the public partner to meet a specific minimum quality and quanty of raw material in flow or, if not, to pay the recycler a scheduled amount of money. If the airport exceeds the minimum amount of raw material, the airport pays nothing to the recycler. Likewise, if the recycler is able to make more saleable product than is necessary to break even, agreements can be structured so that the airport gets a share of the profits [Rhodes and Evans]. 1 Effluent guidelines are technology based regulaons to control industrial wastewater discharges [United States Environmental Protecon Agency].

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 10 AS 5 FUEL SALES AND FUELING VEHICLES Some smaller commercial and GA airports can provide fuel storage to airlines and FBOs. When the airport sponsor is the FBO, its own personnel and equipment fuel the aircra„. Some fueling vehicles also may be eligible for PFC funding. AS 6 CONSOLIDATED FUEL FARM A fuel storage system that accommodates the requirements of the airlines, airport, and general aviaˆon could offer significant savings in comparison to maintaining mulˆple fuel storage faciliˆes on the airport. The capital and operaˆng costs of a consolidated fuel farm would be spread across all parˆes, resulˆng in a decrease in per gallon storage costs for all users. Airline consorˆums are another common way to share fuel storage systems costs at medium and large hub airports. An airport operated fuel farm has limited applicaˆon, primarily to airports that funcˆon as the FBO. AS 7 GROUND SERVICES EQUIPMENT AND MAINTENANCE FACILITY If more than one ground handling company operates at an airport, the airport sponsor—on its own or in partnership with the ground handling companies—could construct a shared use maintenance facility for ground services equipment. At the largest airports, doing this would provide a cost effecˆve facility for maintenance of ground service equipment. The cost of a maintenance facility for ground service equipment would be prorated among the users based on volume of use. Consequently, this strategy makes the most sense at large airports with a large number of ground services vehicles. 4.4.2 Air Cargo - CA CA 1 CONSOLIDATED AIR CARGO FACILITY Airports accept air cargo through many channels. Small packages can be tendered to agents in the terminal at check in staˆons, packages can be brought to airline cargo offices, and integrated carriers can receive and process packages at off airport or on airport properˆes. Small and medium hub airports, or a large airport with low acˆvity airlines, can create a revenue generaˆng opportunity by consolidaˆng air cargo processing acˆviˆes within a single facility that is owned and staffed by the airport or an airport service contractor. Services at a consolidated air cargo facility can include: Receiving air cargo packages from the public Processing of air cargo (in and out) Delivery of manifested cargo to each flight Warehousing Customs

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 11 A consolidated air cargo processing facility and service improves the efficiency of operaons, reduces requirements for airline staffing, and at smaller airports, separates air cargo from passenger areas. A consolidated air cargo facility could reduce the airlines’ cargo facility costs and reduce excess capacity in exclusive facilies. The cost of the consolidated facility would be prorated among the users based on the volume of cargo going through the facility. The airport could derive revenues from leasing the premises and through cost mark ups for the airport provided services. 4.4.3 Energy Management - EN EN 1 UTILITIES REIMBURSEMENT OR SEPARATELY METERED UTILITIES Terminal buildings do not always include separately metered ulies for different users (airlines, concessionaires, and other tenants). An airport can retain a ulies consultant to survey the terminal building to determine if users are paying for the ulies they consume. If not, a ulies reimburse ment program can be established to cover food and beverage concessions, merchandise concessions, airline passenger loading bridges, and baggage handling systems. Unreimbursed ulies can amount to hundreds of thousands of dollars per year at a small hub airport. If an airport does not recover the cost of airline and concessionaire ulies consumpon and there are no individual tenant meters for generang ulity consumpon billings, the airport sponsor can bill the airlines and concessionaires for reimbursement based on esmates. 4.4.4 Environmental - EV EV 1 TRASH REMOVAL AND RECYCLING “In 2010, disposal of passenger aircra‘ waste cost the industry an esmated $20 to $26 million. Valuable recyclables contained in that waste had a total market value esmated at $18 to $26 million” [ACRP Report 100]. Terminal areas at airports generate even more waste, some of which has real recycle value. This implementaon of the strategy includes both shared trash removal services and an airport managed recycling and waste system by which cabin service crews or terminal maintenance personnel take recyclables or waste materials to airport owned or airport operated containers. Recycling reduces the cost of waste disposal and can generate revenue through the sale or recycling of valuable materials. Indianapolis Internaonal Airport has included in its concession agreements a requirement that each concessionaire install a ulity meter and reimburse the Airport Authority in full for ulies used. Seale Tacoma Internaonal Airport charges airline tenants customized rates for waste disposal, using data esmated based on compactor usage. Airlines and other airport tenants use key cards to open waste and recycling dumpsters on the airfield. The airport provides each airline its recycling rate, garbage fee, and savings from recycling.

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 12 The following types of recyclable waste are prevalent in airport terminals and flight kitchens, and aboard aircra‚: Plas„c bo…les Plas„c or foam cups Glass bo…les Aluminum cans Other metal cans Cardboard Mixed paper Asep„c containers Edible food Food scraps Electronic equipment Growing numbers of airports and airlines are recycling. Airlines that do not have their own recycling program either use an airport recycling program or backhaul recyclable items to an airport where they can dispose of the items. Delta Airlines, Southwest Airlines, and Alaska Airlines are a few of the carriers with recycling programs. Portland Interna„onal Airport sponsors a college intern program to train tenants on the airfield and in terminal areas about recycling. Akron Canton Airport joined with the local solid waste management district to provide recycling infrastructure and collec„on services at the airport for no addi„onal charge. All airlines are encouraged to use the system. Recycling programs can operate as cost recovery and offer some revenue poten„al depending on the amount of waste recycled and prevailing market prices for the recycled materials. Most airport managed waste and recycling systems involve the following key par„cipants: Managers of airlines, airports, and flight kitchens Airline sta„on managers and other airport tenants Aircra‚ crew and cabin service crew Terminal maintenance personnel Waste and recycling collec„on companies Airport visitors and air passengers Airport sponsors or a single contract vendor can operate the managed waste and recycling system. The successful airport managed recycling programs o‚en receive strong support from airport leadership and employees. 4.4.5 Business Development - BD BD 5 COMMUNICATION SYSTEMS AND CELL PHONE TOWERS Can an airport make money providing technology and communica„ons systems, services, and infrastructure? This ques„on is o‚en asked by airport sponsors. Some airports have leased terminal roof “The Airport Materials Management Program (MMP) recycles concrete, asphalt, and soil from construc„on projects at Oakland Internaonal Airport. The goal of the MMP is to reduce emissions and conges„on from trucks, reduce landfill waste, and improve the cost effec„veness of airport construc„on projects. Since its incep„on, the MMP has recycled over 510,000 tons of demoli„on materials, reclaimed nearly 212,000 tons of reusable materials, reduced greenhouse gases (GHGs) by 3,500 metric tons, and removed nearly 112,000 pounds of emissions from the air.” – Port of Oakland

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 13 space to cell phone companies for towers. Cell phone towers are an excellent addional revenue source that makes use of an area in the terminal that might otherwise go vacant. To date, airport sponsors recover most of the capital and operang costs of technology and communicaon systems as an element in the calculaon of airline and tenant rents and fees. Because certain aspects of communicaon systems and infrastructure are under the jurisdicon of regulatory agencies, it is quesonable whether an airport has the right to “sell” the use of or access to communicaons and technology systems. Because of potenal conflict with regulatory agencies, most airports are content with cost recovery through rents and fees. Some airports collect revenue from pay for access Wi Fi. The magnitude of revenue fromWi Fi access has not been significant, however, and the trend is toward free Wi Fi provided as a customer amenity and basic ulity. If airports provide Wi Fi services to tenants, cost recovery of this service could be included in a ulity reimbursement package. BD 6 JOINT MARKETING AND ADVERTISING Mobile and digital technologies make it possible to reach a much wider audience in the terminal areas. Airport sponsors can offer concessionaires opportunies to adverse throughout the terminal using the airport’s Wi Fi system and digital displays. The airport benefits directly from adversing revenues and indirectly from increased concession sales. 4.4.6 Planning, Design, & Administration - PL PL 1 BADGING As a part of U.S. Department of Homeland Security (DHS) regulaons, persons employed at an airport are required to undergo background checks and be badged for access to various areas of the airport. The costs involved should be recovered as a part of providing badging services at the airport. Ideally, the airport should recover the full costs of the background checks, security tesng, badge materials and equipment, badge processing staff (including overhead and benefits), and the rental value of the badge processing office. In addion, an airport should recover 10% to 15% of total costs for administraon of the program. Depending on the size of the airport, badging costs can be significant. These costs can be recovered from airlines, concessionaires, and other tenants, and from contractors in the form of an annual badging fee for each badge issued. 4.4.7 Terminal Operations - TO TO 4 BAGGAGE DELIVERY SERVICES Small and medium hub airports with limited frequency carriers can offer baggage delivery services for late arriving and mishandled baggage. The airport can provide the service to all airlines or contract for

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 14 the service. Delivery can include services to hotels and to the homes of passengers. This service can also be combined with curbside or remote baggage check in or drop off service (described in TO 6). TO 5 BUILDING SERVICES TO AIRLINES AND CONCESSIONAIRES In terminal tenants, such as rental car companies, airlines, food and beverage concessions, and retail concessions, typically build out back offices as well as customer friendly spaces for informa‡on, check in, dining, and shopping. Airport leases require tenants to meet design standards and periodically refresh in terminal spaces, par‡cularly the front of the house areas that customers experience. An airport sponsor can use either in house staff or contractors to offer building and renova‡on services to airport tenants, charging market rates for construc‡on/remodeling services. Because of public purchasing laws, airport sponsors will have to evaluate whether this type of service can be offered compe‡‡vely. TO 6 CURBSIDE OR REMOTE BAGGAGE DROP-OFF AND CHECK-IN Consolidated curbside baggage drop off and passenger check in is an op‡on for airport sponsors. Some airports, airlines, and third party vendors offer baggage check in and boarding passes for a fee at mul‡ modal transporta‡on hubs, hotels, conven‡on centers, and remote parking lots. These services cost between $5 and $25 and do not cover airline imposed baggage fees. Remote check in services must be cer‡fied by the TSA. Bags are taken to the airport and screened in the usual manner. These shared services can be offered directly or through a third party vendor, in which case the airport sponsor would collect a concession fee. Remote services are more feasible when there is a concentrated downtown, hotel area, or conven‡on center. TO 7 JANITORIAL Terminal building maintenance includes the cleaning of public areas and airline areas. Restaurant cleanup is the responsibility of individual tenants. Four airlines—Delta, Southwest, United, and US Airways—are enrolled in the remote baggage check in program at McCarran Internaonal Airport in Las Vegas. The fee (for two bags) is$20. “We see it as a way to improve customer service,” says Rosemary Vassiliadis, deputy director of the county department that operates McCarran. “Hotel check out ‡mes are usually around noon, but many flights aren't un‡l late in the evening. Rather than pay to leave bags with a hotel bellman or take a chance and leave them una¡ended in the back room at a conven‡on hall, travelers can use our SpeedCheck Advance program to check bags at the Vene‡an or Luxor hotels, the Las Vegas Conven‡on Center, or at the McCarran Rent A Car Center. Then they can spend a few extra hours enjoying the city instead of standing at the baggage check in line at the airport.” – [USA Today].

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 15 In November 2013, San Diego Internaonal Airport opened an $8.7 million receiving and distribu…on center (RDC). The project was developed through a P3 between Avia…on Facili…es Company, Inc. (AFCO) and the San Diego County Regional Airport Authority for the financing, design, and building of the RDC. The 17,580 square foot facility serves as the main screening and distribu…on center for airport concessions. The building includes employee offices, a secure screening area, a non secure delivery area, dry/cold/freezer storage, and opera…ons support space. The 1.49 acre site also includes landscaping, loading docks, and employee parking. Airport sponsors can use in house staff or contractors, or par…cipate in consor…ums with the airlines to provide janitorial services for public areas and back offices for airline and car rental companies. In house services offer the largest poten…al for net revenue to the airport sponsor, followed by service contracts managed by the airport, and then consor…ums. TO 8 LOGISTICS SERVICES AND WAREHOUSING FOR CONCESSIONAIRES Geœng supplies to concessionaires, especially beyond security, requires effec…ve organiza…on and planning. Some concessionaires have opted to warehouse supplies on the premises because of logis…cal challenges. Concession logis…cs services can improve the overall efficiency of the receipt, warehousing, and movement of goods to, though, and around terminal buildings. A logis…cs service paired with a warehouse away from the terminal can reduce demand for storage space within the concession area. With this technique, the airport sponsor provides logis…cs services and warehousing for concessionaires. A logis…cs service can involve: Receiving and warehousing of goods and materials Security screening of goods and materials Delivery of goods and materials from the logis…cs center/warehouse to concessionaire loca…ons in and around the terminal building Development of necessary logis…cs and warehousing infrastructure so that concessionaires can increase their volume without having to expand in the terminal building Logis…cs services would be provided on a fee for services basis. The airport could derive profit from a mark up on the cost of the services provided or a concession fee from a third party contractor. Use of a third party contractor is most common. TO 9 LOUNGES/CLUBROOMS In the past, airport lounges were the exclusive domain of airlines and available to the carriers’ most frequent fliers. Now, independent airline lounges have become more commonplace in Europe and are catching on in the United States. At several U.S. airports, independent lounges are open to all airport users for a fee of $20 $45 per visit. At airports such as Phoenix Mesa Gateway, Dallas/Fort Worth, Hartsfield Jackson Atlanta Interna…onal, McCarran Interna…onal, Bal…more/Washington Thurgood Marshall Interna…onal, Cleveland Hopkins Interna…onal, San Diego Interna…onal, and Terminal 5 at JFK Interna…onal, common use lounges are available to anyone willing to pay a daily fee. Private groups

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 16 typically build the lounges and operate them as concessions. The airport sponsor receives ground rent and a percentage of gross revenues. TO 10 MEETING ROOMS Airports rent mee­ng and conference rooms suitable for events of various sizes. Mee­ng spaces also tend to support demand for airport hotels; however, as company travel budgets shrink, they are looking to save money on mee­ngs. Airport mee­ng rooms provide a way to minimize hotel and resort costs for 1 day sessions. Airports can develop mee­ng spaces that might be unsuitable for concessions or other airport tenants. The spaces must be compe­­ve with off airport loca­ons. For example, Ronald Reagan Washington Na­onal Airport charges $95 per hour for a 40 person conference room and a daily rate of $500. Mee­ng rooms represent direct revenue for airports, with an added possibility that mee­ng organizers will purchase food and beverages from airport concessionaires. TO 11 SHARED GATES Airport airline opera­ng agreements are changing in several important ways. A gate consists of an aircra’ parking posi­on at the terminal building, passenger loading bridge, and passenger hold room. Recently, the management and use of gates has changed drama­cally at many airports. Historically, airlines have leased gates on the basis of exclusive use.2 Today, however, except for carriers opera­ng a connec­ng hub or a large number of non stop des­na­ons or frequencies, most carriers are moving away from exclusive use arrangements for airport terminal and gate space. New agreements tend to be shorter term and o’en include preferen­al use arrangements for gates.3 With fewer exclusive use agreements, airport sponsors are seeking ways to be—er use facili­es and provide a consistent customer experience from the terminal entrance to the aircra’. More than ever, airport sponsors are pursuing: Cross u­liza­on of facili­es Use of preferen­al arrangements that reserve the right to have other users operate from the facili­es when the prime airline is not using the space Airport sponsor control and assignment of gates and counters on a per use fee basis 2 Exclusive use means the gate is assigned to an airline for its use and occupancy to the exclusion of all others. 3 Preferen­al use means a leasing airline has use priority over all other users. “Regional and district mee­ngs with an element of training have replaced the longer getaway in some cases,” says Kris­n D. Kurie, president of the Wilderman Group, a hospitality management company in Charleston, S.C. “They also hold the appeal of not spending an addi­onal night on the road.” – [The New York Times,May 2014]

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 17 Shared gates are a promising way to increase net revenue to the airport sponsor. With preferen‚al use gates, the leasing airline receives the gate use fees paid by the non leasing airlines as reimbursement for the rents and fees it pays for its preferen‚al rights. Through greater u‚liza‚on of preferen‚al gates, airport sponsors get more capacity out of a fixed number of gates, defer terminal expansion requirements, and reduce the capital requirements of the airport, thus making the airport more profitable. Today, due in part to airline consolida‚on, airport sponsors are retaining some gates and making them available as common use gates. Common use gates managed by the airport sponsor are available to all airlines. The airport sponsor assigns the airlines’ use of a gate on a flight by flight basis. For common use gates, the airport sponsor retains the gate use fees and the overnight aircra‘ parking fees. This type of managed gate program can op‚mize the u‚liza‚on of airport gates and reduce the number of gates required for a given level of traffic. If managed properly (recovering maintenance, opera‚on, and administra‚on expenses and incorpora‚ng a profit component), gate fees collected in a managed gate program surpass the cost recovery rents and fees charged in exclusive use or preferen‚al use leases. Ul‚mately, a managed program for common use gates can reduce costs for airlines and generate addi‚onal revenue for the airport sponsor. TO 12 WHEELCHAIR SERVICES As part of their customer service programs, airports are ins‚tu‚ng wheelchair services for passengers with mobility issues. A terminal wide wheelchair service provides services throughout the concourses and in baggage claim areas, as well as to ground transporta‚on. McCarran Interna‚onal, San Diego Interna‚onal, and other airports are providing these services either directly or through service contracts. Like shared gates, shared wheelchair services allow an airport sponsor to achieve cost reduc‚ons through economies of scale. 4.5 IMPLEMENTATION ISSUES A strategy that incorporates airport entrepreneurial ac‚vity to increase airport net revenues and recover costs may be implemented using a mul‚tude of approaches. This chapter has presented a few implementa‚on ideas; however, airport sponsors engaged in this strategy must con‚nually scan for opportuni‚es, as they are always changing and o‘en unique to a par‚cular airport. This strategy also incorporates many airport priori‚es that emerged a‘er 2008 during the post recession economy. Priori‚es that coincide with implementa‚on of a shared use and airport provided service strategy include airport sponsor efforts to: Maximize exis‚ng facility u‚liza‚on Avoid or defer capital costs Cross u‚lize airport staff

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 18 Decrease the airport’s cost of doing business Decrease the airline’s cost of doing business Increase opportunies for airlines to add or expand service Gain a compeve advantage over compeng airports Deliver new revenues Implementaon of the strategy is not without challenges. This secon highlights some of the issues that may arise. 4.5.1 Ability to Deliver Price-Competitive Services that are Price Competitive For some airports, civil service and procurement requirements make it difficult to price and provide services that are compeve. For example, ground handling services require a high level of skill for many tasks, extensive training and retraining programs, quality assurance and control, the ability to respond quickly to demand, and good customer service. Some smaller airports have successfully integrated ground handling services as part of an airport owned and operated FBO. Bangor Internaonal Airport, Springfield Branson Naonal Airport, and Lehigh Valley Internaonal Airport have successfully offered both above the wing and below the wing aircraŽ services. The QCIA Authority formed a separate LLC, QCIA Airport Services, to operate independently of the airport with regard to labor and business pracces. However, not all municipalies or airport authories are able to form separate enes for entrepreneurial acvity. Some airports are able to stay compeve by using third party service contracts. Airport sponsors maintain control with service contracts (and oŽen gain more revenue). However, certain funcons, such as sponsor procurement policies, may apply with the service contracts. 4.5.2 Ability to Assume Risk A number of airport provided services involve risk (i.e., increased liability and potenal financial loss, as well as negave customer and airline relaons) if operaonal issues persist. Many airport sponsors are risk averse. Implemenng the entrepreneurial strategy described in this chapter may involve changes in policy from the airport’s governance board, which could be the city council, county commission, airport board, or other authority. Policies change over me. For example, the Clark County Department of Aviaon (the Department), the owner and operator of McCarran Internaonal Airport (Las Vegas), used an entrepreneurial approach to the development of airport owned land during the peak period of the real estate boom (see Chapter 8). Following the collapse of the market, however, the Department pulled back and resumed a much more conservave approach to real estate development. Denver Internaonal and Dallas/Fort Worth Internaonal airports are among the largest airports in terms of acreage, and both have been acve parcipants in entrepreneurial projects to increase non aeronaucal revenue producing acvity.

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 19 4.5.3 Perception of Airport Role Although some airports have evolved into complex sets of enterprises, in some loca­ons the public perceives an airport as a u­lity rather than a revenue genera­ng en­ty. A percep­on of the airport compe­ng with the private sector is common. 4.5.4 Size of Airport The entrepreneurial strategy applies best to origin and des­na­on markets, and to medium, small, and non hub airports. Airports with a single carrier or a dominant carrier would benefit from those elements of the strategy that focus on airport provided services versus shared use of facili­es. Network carriers opera­ng at large airports o‡en have a cri­cal mass of opera­ons to support many of their own services and facili­es. However, some large airports are centralizing certain func­ons such as shipping and receiving, telephony and data services, and airport lounges. These types of shared services are operated either by airport staff or by service agreement. In some instances, airport sponsors will partner with private en­­es to design, build, and/or finance a project. 4.6 WRAP UP How airports func­on behind the scenes is changing drama­cally. Increasing capability of so‡ware and hardware to communicate across mul­ple plaŒorms has facilitated the implementa­on of shared use. Mobile technologies have made it possible to export to third party devices and off airport loca­ons func­ons that were previously in the sole domain of an airport terminal. Boarding passes, baggage check in, and parking reserva­ons are going mobile, as are flight informa­on and credit card transac­ons. These changes in technology allow constant communica­on with airport tenants and customers, and they make possible many of the ideas explored in this chapter. Airport directed provision of janitorial services; logis­cal support services for concessions; common use lounges and mee­ng spaces; and cost recovery for u­li­es, badging, and ramp control are among the best ideas to increase or improve net revenue. The most promising areas where shared use of facili­es, systems, and equipment can make a difference in net revenue to the airport sponsor are terminal opera­ons, gate management, and ground handling services. “One of our tenants had developed a self storage facility, but didn’t want it anymore. The airport bought the lease for $200,000, an­cipa­ng that it would tear the facility down. (It was right next to an industrial park and did not quite fit the mo­f.) Once we got into the business, we realized what the profits were. Self storage mini warehouses are a great business. It does not take much labor: one full ­me and two part ­me employees. The storage facility stays at 90% occupancy and generates about $150,000 per year of net profit. There was a public concern that government was compe­ng with private sector. Therefore, the airport does not want to oversupply the market and expand the facility. The airport board also insisted that [the airport] voluntarily pay property tax and keep prices in line with compe­­on.” – Fredrick (Rick) Piccolo, President and CEO, Sarasota Bradenton Internaonal Airport

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 20 Some airports will have a greater ability to pursue entrepreneurial opportunies than other airports. Airports sponsored by cies or counes are generally more risk averse and may be slower to embrace evoluon of the airport as an enterprise of mulple businesses. Airports sponsored by authories, commissions, or special districts have policymakers that are involved with the airport business and understand the need to pursue non airline revenue to maintain financial independence. Table 4 4 summarizes all the implementaon techniques discussed in this chapter.

Table 4 4: Techniques to Implement the Airport Services/Shared Use Strategy Code Innovave Techniques and Improvements Airport Area Impact Applicability Revenue or Cost Recovery Potenal Airport Sponsor Financial Risk Airport Cost to Implement Aircra & Passenger Services – AS AS 1 Above the Wing Terminal and Gates Small Commercial Low/Moderate Low/Moderate Low/Moderate AS 2 Below the Wing Ramp Small Commercial/GA Low/Moderate Low/Moderate Low/Moderate AS 3 Deicing Deicing Pads Small Commercial/GA Low/Moderate Low/Moderate Low/Moderate AS 4 Glycol Recovery and Recycling Deicing Pads Large Commercial Moderate Low Low/Moderate AS 5 Fuel Sales and Fueling Vehicles Ramp Small Commercial/GA Low/Moderate Low/Moderate Low/Moderate AS 6 Consolidated Fuel Farm Fuel Farm Small Commercial/GA Low/Moderate Low/Moderate Low/Moderate AS 7 Ground Services Equipment and Maintenance Facility Ramp/Maintenance Small Commercial/GA Low/Moderate Low/Moderate Low/Moderate Business Development – BD BD 5 Communicaon Systems and Cell Phone Towers Building Roof Areas Medium/Large Commercial Low Low Low BD 6 Joint Markeng and Adversing Concessions Medium/Large Commercial Low/Indirect Low Low Cargo – CA CA 1 Consolidated Air Cargo Facility Cargo Area All Commercial Low/Moderate Moderate Moderate/High Energy Management – EN EN 1 Ulies Reimbursement/Separately Metered Ulies Airport Tenants All Commercial Cost Recovery Low Low/Moderate Environmental – EV EV 1 Trash Removal and Recycling Terminal/Aircraft Cabins/Flight Kitchens All Airports Cost Recovery/Low Revenue Low Low/Moderate (connued on next page)

Table 4 4 (Connued). Code Innovave Techniques and Improvements Airport Area Impact Applicability Revenue or Cost Recovery Potenal Airport Sponsor Financial Risk Airport Cost to Implement Planning, Design, & Administraon – PL PL 1 Badging Terminal Area/Airfield Medium/Large Commercial Cost Recovery Low Low Terminal Operaons – TO TO 4 Baggage Delivery Services Baggage Area Medium/Large Commercial Low Low Low TO 5 Building Services to Airlines and Concessionaires Terminal All Commercial Low/Moderate Low Low TO 6 Curbside or Remote Baggage Drop off and Check in Terminal Area/Parking Medium/Large Commercial Low Low Low TO 7 Janitorial Terminal All Commercial Low/Moderate Low Low TO 8 Logiscs Services and Warehousing Terminal Concessions Medium/Large Commercial Low/Moderate Low Low/Moderate TO 9 Lounges/Clubrooms Terminal All Commercial Low/Moderate Low/Moderate Low/Moderate TO 10 Meeng Rooms Terminal All Airports Low/Moderate Low Low/Moderate TO 11 Shared Gates Gate Area All Commercial Moderate/High Moderate/High Moderate/High TO 12 Wheelchair Services Terminal All Commercial Low Low Low Source: KRAMER aerotek inc., 2014

CHAPTER 4 – AIRPORT ENTREPRENEURIAL ACTIVITY – PART I 4 23 4.7 ADDITIONAL REFERENCES Baskas, H., “Remote Baggage Services Cost Extra, But Come With Extras,” On the Road with Harriet Baskas (blog), USA Today,May 6, 2005. Bellio‘, R., ACRP Synthesis 8: Common Use Facilies and Equipment at Airports, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2008, h—p://onlinepubs.trb.org /onlinepubs/acrp/acrp_syn_008.pdf Bellio‘, R., F. Barich, J. Phy, P. Reed, and R. Agnew, ACRP Report 30: Reference Guide On Understanding Common Use At Airports, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2010, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_030.pdf Carey, S., “United to Outsource Jobs at 12 U.S. Airports,” The Wall Street Journal, July 7, 2014 Cascadia Consul“ng Group, with LeighFisher Management Consultants and Mary Loquvam Consul“ng, ACRP Report 100: Recycling Best Pracces—A Guidebook for Advancing Recycling from Aircra† Cabins, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2014, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_100.pdf Demkovich, P., ACRP Synthesis 31: Airline and Airline–Airport Consorums to Manage Terminals and Equipment, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2011, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_syn_031.pdf Enrico, S., B. Boudreau, D. Reimer, and S. Van Beek, ACRP Report 66: Considering and Evaluang Airport Privazaon, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2012, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_066.pdf EPA, Developing and Implemenng an Airport Recycling Program,Washington, DC, 2009, h—p://www.epa.gov/wastes/conserve/tools/rogo/documents/airport recycling guide.pdf FAA, Office of Airports, Recycling, Reuse, and Waste Reducon at Airports: A Synthesis Document, Washington, DC, 2013, h—p://www.faa.gov/airports/resources/publica“ons/reports/environmental /media/RecyclingSynthesis2013.pdf Grothaus, J. H., T. J. Helms, S. Germolus, D. Beaver, K. Carlson, T. Callister, R. Kunkel, and A. Johnson, ACRP Report 16: Guidebook for Managing Small Airports, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2009, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_016.pdf Landrum & Brown, Inc., AirProjects, Inc., Aerotropolis Business Concepts, LLC, and Envirosell, ACRP Report 109: Improving Terminal Design to Increase Revenue Generaon Related to Customer Sasfacon, Transporta“on Research Board of the Na“onal Academies, Washington, DC, 2014, h—p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_109.pdf

INNOVATIVE REVENUE STRATEGIES – AN AIRPORT GUIDE 4 24 Landry, J., and S. Ingolia, ACRP Synthesis 29: Ramp Safety Prac ces, Transportaon Research Board of the Naonal Academies, Washington, DC, 2011, h…p://onlinepubs.trb.org /onlinepubs/acrp/acrp_syn_029.pdf LeighFisher, and Exstare Federal Services Group, LLC, ACRP Report 54: Resource Manual for Airport In Terminal Concessions, Transportaon Research Board of the Naonal Academies, Washington, DC, 2011, h…p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_054.pdf Port of Oakland, “Environmental Efforts Take Flight at Oakland Internaonal Airport,” 2009 Rhodes, D., and G. Evans, “Recycling: DEN’s Sustainable Approach,” Airport Business Magazine, ACI NA, 2010, h…p://www.parsons.com/Media%20Library/Recycling_DENs_Sustainable_Approach_Arcle.pdf Ricondo & Associates, Inc., Planport GmbH, Two Hundred, Inc., and Unique (Zurich Airport, Ltd.), ACRP Report 62: Airport Apron Management and Control Programs, Transportaon Research Board of the Naonal Academies, Washington, DC, 2012, h…p://onlinepubs.trb.org/onlinepubs/acrp /acrp_rpt_062.pdf Rostworowski, A., Self Service Opons at Airports, a New Passenger Expectaon, presented at ACI NA Business Informaon Technology Conference, May 4, 2011 Vanden Oever, K., A. Gi…ens, S. Warner Dooley, A. Zaslov, H. Tremont, T. Snipes, and S. Hoerter, ACRP Report 33: Guidebook for Developing and Managing Airport Contracts, Transportaon Research Board of the Naonal Academies, Washington, DC, 2011, h…p://onlinepubs.trb.org/onlinepubs/acrp/acrp_rpt_033.pdf Zipkin, A., Meeng Rooms Past the Gates, The New York Times,May 26, 2014, p. B 6.