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1 Airports and airlines continue to work together to deliver cost-effective and quality ser- vices to passengers and users. To achieve this, they seek new and effective strategies to better manage airport facilities, equipment, systems, and services. Usually, the airport operator or individual airlines maintain these facilities, equipment, systems, and services. However, at some airports, airline consortiums are responsible for the management and operation of certain airport facilities, equipment, systems, and services. Airports and airlines would benefit from additional information to increase their under- standing, evaluation, and participation in airport-airline consortiums. ACRP Synthesis 31: Airline and Airport-Airline Consortiums to Manage Terminals and Equipment recently described several current consortium arrangements and concluded that the consortium model is flexible and can be adapted to fit many circumstances and requirements. ACRP Report 111: Guidebook for Airport-Airline Consortiums (Guidebook) was prepared as an informational and decision-making guide for airport operators and airline represen- tatives. It outlines the consortium formation process and its many variables for those who are responsible for agreements related to airport facilities, equipment, systems, and services, and who may be interested in evaluating, advocating, or forming consortiums to provide certain services. The consortium concept is widely and generally known throughout the commercial avia- tion industry as a tool for managing common use facilities, equipment, systems, and services for groups of airlines. Because consortiums exist at some of the largest airports in the United States, most airlines operating in the Unites States have experience as consortium members. Additionally, many airport executives are also familiar with the consortium concept and are casually informed regarding the possible applications and utility of airline consortiums. Consortiums at airports have been in existence since 1962. However, the overall fre- quency of consortium formation has increased dramatically in recent years, with 18 new consortiums (nearly 50% of the number of consortiums in existence) having been formed in the eight years since 2005. The consortium formation process has a number of broad steps that are common for all consortiums. The details, however, may vary considerably for each consortium depending on its circumstances and the interests of the stakeholders involved. Generally, a new consortium begins as an idea that there may be a better or more efficient way to approach issues related to facilities, equipment, systems, or services at an airport. The consortium concept may be further developed through the preparation of a feasibility study, which will identify a scope of services, preliminary operating budget, cost alloca- tion methodology, capitalization plan, and a recommended business entity structure. It will S U M M A R Y A Guidebook for Airport-Airline Consortiums IMPLEMENTATION CONSENSUS TO PROCEED PREPARE AGREEMENTS INITIAL CONSENSUS FEASIBILITY STUDY
2 A Guidebook for Airport-Airline Consortiums be necessary for the airport and the airlines to work together to confirm the consortium purpose, scope, and objectives. Issues and obstacles will have to be identified, addressed, resolved, and/or mitigated before the consortium formation can proceed. Various agreements must be prepared to make a proposed consortium a reality. These include an agreement between the airport and the consortium to authorize the consortiumâs activities at the airport, a consortium member agreement to serve as the primary governing document for the consortium and its members, and a non-member access agreement which allows non-member airlines and ground handling companies to access and use the facilities, equipment, systems, and services administered by the consortium. Financing documents will be necessary if capital financing is a component of the consor- tium formation. Financing documents vary widely in their scope and definition, depending on the type of financing, the source of funds, the size of the financing, the security identified and pledged for the financing, and so forth. All stakeholders must secure approval prior to implementation of the consortium. Airline approval processes often require internal legal department review, properties department review, and officer approval. Airport approval processes vary significantly depending on the jurisdiction and the authority of the airport director. The final activities in consortium implementation are consortium start-up and com- mencement of consortium operations. Consortium management staff, business systems, plans, and procedures must be in place for a successful start-up. Consortium vendors must also be engaged and prepared to provide for a successful commencement of operations. This Guidebook is based on a review of available literature on consortiums and interviews of airport staff, airline staff, and consortium operators. The Guidebook provides informa- tion for each formation step, illustrative examples, and decision-making guidance on the consortium formation process. This Guidebook also documents and provides basic data for the 39 consortiums operat- ing in the United States today including 2 terminal consortiums, 9 equipment consortiums, 25 fuel consortiums and 3 other consortiums. In-depth case study examinations of 6 consor- tiums are included with the Guidebook in Appendix D. The general success of terminal and equipment consortiums is often discussed and acknowledged, but it is difficult to define the measurement of success. Performance criteria have not been established for most consortiums and, as a result, a reportable volume of empirical performance data does not exist for most consortiums. However, indications are that there has been an increase in the number of new consortiums in recent years.
