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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Page 27
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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Suggested Citation:"3. Impact on Airport Operations." National Academies of Sciences, Engineering, and Medicine. 2019. Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations. Washington, DC: The National Academies Press. doi: 10.17226/25671.
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ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-1 | Impact on Airport Operations 3. IMPACT ON AIRPORT OPERATIONS OPERATIONS The process for a TNC to begin operations is similar across most airports. First, if required by enabling legislation, the company obtains the necessary state or municipal permit. Then, the company completes an application for an airport ground transportation permit. Upon approval by airport managers, the TNC may legally pick-up and drop- off in accordance with that airport’s rules and regulations. This may include paying one-time fees (e.g., an activation fee), requiring drivers to have adequate insurance coverage, conducting driver background checks, reporting and remitting trip fees, and adhering to roadway, curb, and hold lot procedures. Drivers may need to satisfy additional conditions; for example, in cases where a regulatory “overlap” exists, a TNC driver may need to obtain additional permits from the county or city in which the airport is physically located. Table 3-1 presents the trip fees and permit conditions of the airports that informed the recommendations presented in Section 5 of the Reference Guide. An updated list with fees as of August 12 , 2019, is included in Appendix B. TABLE 3-1 TRANSPORTATION NETWORK COMPANY FEES AND PERMIT CONDITIONS AT SELECTED AIRPORTS AIRPORT TNC TAX/FEE NOTES BEST PRACTICE BOS $3.25 (drop-off) increases to $6.00 total as of 10/1/19 ($3.00 pick-up and drop-off) as of 10/1/19) Trip fees increase to $4.00/$4.00 July 1, 2020. State law allows airport operator to require Criminal Offender Record Information (CORI) and sex offender checks. High-occupancy vehicle policy can be used to influence mode share. Rematch to be permitted as of Oct. 1, 2019. 50% fee discount for shared ride trips. Conduct robust background checks. Pick-up/drop-off to be shifted from curbs to garage as of Oct. 1, 2019. DEN $5.20 total ($2.60 pick-up and drop-off) Rematch is allowed—it reduces roadway traffic; reduces demand for space in hold lot; and improves customer service (shorter wait times). Pick-up and drop-off shifted in June 2019 from Level 6 to Level 5 due to curb congestion. Collect both a drop-off and pick-up fee. Allow rematch. DFW $10.00 total ($5.00 pick-up and drop-off) $600.00 annual permit fee Major recent adjustment in curb management: only active loading/unloading allowed. $3.00 of trip fee paid by company; $2.00 by driver. Collect both a drop-off and pick-up fee. LAX $8.00 total ($4.00 pick-up and drop-off) $1,000.00 activation fee Rematch permitted. $200 per violation of rules and regulations. Collect both a drop-off and pick-up fee. Allow rematch. DCA and IAD (MWAA) $8.00 total ($4.00 pick-up and drop-off) $5,000.00 activation fee Applies to DCA and IAD. Permits were issued to TNCs (Uber and Lyft), not to individual TNC drivers. Failure to follow MWAA regulations can result in Notices of Violation, with fines up to $250 per occurrence, applied against the permit holders. Collect both a drop-off and pick-up fee. RNO $1.00 (pick-up only) Rematch allowed only if hold lot is empty. Use rematch to manage TNC supply. SEA $6.00 (pick-up only) Tiered activation fee: $50,000.00 to $100,000.00 Trip fee is set in an attempt to “level the playing field” with taxis. Environmental fuel efficiency goal (E-KPI) of 10.82 lbs. of CO2 per pax trip is based on the equivalent for taxis, which have a 45 MPG requirement. TNCs can accomplish the CO2 goal using high MPG vehicles, deadhead reduction and/or pooling of unrelated pax and any combination of these three items. Rematch permitted. TNCs have the option of paying a pick-up or drop-off fee (i.e., split the $6.00 into two $3.00 charges). All chose to pay the $6.00 fee. Set trip fee in context with other commercial ground access services. Allow rematch. Establish environmental/fuel- efficiency policy. SFO $4.50 at nearby terminal area garage Activation fee based on pre-permit trips. Transit First policy. Continuing to develop, refine, and implement interim measures. Effective June 5, 2019, all domestic TNC pick-ups moved to the Central Garage. Rematch disabled. SOURCES: Transportation Research Board, Airport Cooperative Research Program, ACRP 01-35: Airport Survey, June 2018, RSG,; Airports Council International–North America, Survey of Airport Trip Fees, August 2018; Airport Ground Transportation Association, 2018 Ground Transportation Vehicle Fees and Fares Survey, March 2018; Ricondo & Associates, Inc., June 2019.

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-2 | Impact on Airport Operations Table 3-2 summarizes the principal methods that airport operators employ to establish commercial ground access fees. TABLE 3-2 ESTABLISHING AND EARMARKING TRANSPORTATION NETWORK COMPANY FEES BY HUB TOPIC LARGE MEDIUM SMALL Method used to establish trip fee Cost recovery 42% 25% 13% Market-based 32% 33% 53% In accord with state, municipal, or other enabling legislation 15% 17% 20% No response 11% 25% 14% TNC revenue earmarked 16% 17% 7% Have made capital investments due to TNCs 82% 38% 40% SOURCES: Transportation Research Board, Airport Cooperative Research Program, ACRP 01-35: Airport Survey, June 2018; RSG  Cost recovery allows the airport operator to charge commercial vehicle operators a fee sufficient for the airport owner to recover the costs of providing, operating, and maintaining the roadways, curbsides, hold areas, and other facilities used directly by the commercial ground transportation operators.  By contrast, a market-based fee reflects the overall business benefits the commercial ground transportation operators receive, and the privileges they enjoy, as a result of the presence of the entire airport and from the operators’ access to the traveling public. Typically, market-based fees are calculated based on the volume of airport-related business conducted by the operator, and they may involve a public bidding process.  And in some cases, fee schedules must be developed as specified in state or local enabling legislation. As shown in Table 3-2, cost recovery is the prevailing TNC fee approach at large-hub airports, while market-based is the approach used by one-third to one-half of large-, medium-, and small-hub airports. A relatively small percent of airports earmark TNC revenue for specific purposes. Commercial ground transportation fees are a critical source of operating revenue for airports, and managers carefully monitor trends, transaction activity, and fee collection. In theory, cost recovery should result in a mode- neutral fee schedule, but in practice airport governing boards may differentiate commercial ground access fees in pursuit of policy objectives (e.g., environmental, social, or living wage), or they may delay approving increases due to other considerations (e.g., labor relations). The scope of this research involved (a) reviewing responses to the June 2018 airport survey; and (b) conducting supplemental telephone and on-site interviews with eight airports, two TNCs, TNC drivers, and several industry organizations. The objective was to develop a thorough understanding of the current issues, policies, and practices related to TNC management to inform the development of best practices. Table 3-3 summarizes the responses to the survey questions related to pick-up and drop-off operations, hold lots, wayfinding, rematch programs, and geofencing.

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-3 | Impact on Airport Operations TABLE 3-3 AIRPORT SURVEY RESULTS – OPERATIONS AND MANAGEMENT BY HUB CATEGORY LARGE MEDIUM SMALL1 Primary drop-off locations 76% designate the private vehicle departure/ticketing curb; 19% designate private vehicle/baggage claim curb. 75% designate the private vehicle departure/ticketing curb; the others have designated the private vehicle/baggage claim curb and commercial-vehicle- only locations on both departure and arrival levels. 73% designate the private vehicle departure/ticketing curb; 27% designate private vehicle/baggage claim curb. Primary pick-up locations 45% designate private vehicle/baggage claim curb; 32% designate the departures level curb; the rest designate commercial-vehicle-only curbs or nearby parking structures/lots. 45% designate private vehicle/baggage claim curb; 31% designate the departures level curb. 40% designate private vehicle/baggage claim curb; 33% designate commercial- vehicles-only departures level curb. Has TNC presence led to change in pick-up/drop-off locations of other modes? 45% 23% 13% TNC staging lot location mean number of spaces 82% dedicated lot; 9% combined taxi + TNC lot 222 spaces 62% dedicated lot; 8% combined taxi + TNC lot 74 spaces 60% dedicated lot; 7% remote lot 29 spaces Rematch status 52% do not allow; 38% allow with some restrictions; 10% allow with no restrictions. 58% do not allow; 8% allow with some restrictions; 33% allow with no restrictions. 33% do not allow; 13% allow with some restrictions; 53% allow with no restrictions. Operational requirements Most airports designate specific pick-up and drop-off curbs, require display of trade dress, and place a limit on dwell time in staging areas; just over a third require criminal background checks; and 9% of large hubs have a vehicle fuel-efficiency requirement. Geofences Nearly all airports have one or more geofences in place. Areas defined by geofence Large and medium hubs geofence much of the airport property, as well as specific areas (e.g., staging lot, specific terminal areas); small hubs are more likely to geofence specific terminal areas. Have TNCs impacted landside operating costs? Yes: 91% Yes: 62% Yes: 27% Has there been a TNC impact on roadways, curbs, crosswalks? Yes: 86% Yes: 85% Yes: 60% Level of TNC wayfinding 64% have signage equivalent to that of parking or other ground access modes; 23% have no TNC-related wayfinding. 54% have signage equivalent to that of parking or other ground access modes; 46% have no TNC-related wayfinding. 67% have signage equivalent to that of parking or other ground access modes; 7% have no TNC- related wayfinding. NOTE: 1 Many small-hub airports have only a single-level roadway serving both departing and arriving passengers. SOURCES: Transportation Research Board, Airport Cooperative Research Program, ACRP 01-35: Airport Survey, June 2018; RSG,. As a follow-up to the airport survey conducted in June 2018, the research team interviewed airport managers, senior TNC company representatives, TNC drivers, and airport industry staff; the interviews represent a cross-section of interests and perspectives on a range of topics. The airport managers tended to focus on themes relating to curb operations, hold lot capacity and location, and the impact of renovations and major capital improvements on curb management and customer service. The TNC representatives highlighted wayfinding (for both drivers and passengers), location and condition of hold lots, and a desire for reasonable data reporting and background check requirements. The TNC drivers focused on hold lot management and amenities, as well as challenges related to efficient passenger pick-up. Aviation industry organizations offered critical perspectives and information on wayfinding and trip reporting.

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-4 | Impact on Airport Operations Table 3-4 summarizes the main themes by stakeholder. TABLE 3-4 KEY THEMES EXPRESSED IN STAKEHOLDER INTERVIEWS THEME AIRPORT TNC INDUSTRY Recalibrating pick-up and drop-off locations   - Revising staging area locations and capacity   - Enforcing rules and regulations  - - Impact of renovations / capital improvements  - - Safe and secure customer service: driver background checks and training; pax wayfinding    Relationships   - Program audits, compliance, and trip reporting    SOURCE: ACRP 01-35, Task 4. Policy boards, landside managers, ground transportation planners, capital improvement program managers, legal staff, and financial officers have been challenged to respond to the burgeoning role of TNCs. Airport operators initially reacted by developing new rules for pick-up and drop-off activities, improvising hold lot locations, and engaging in negotiations with TNCs over insurance requirements, trip fees, data collection, driver background checks, and other elements that comprise the TNC service. As airport staff shared their experiences with industry colleagues, and as new regulatory regimes developed, managers evolved their supervision of TNC activities, and they now follow a more nuanced approach to managing this new mode. This is not to say that TNCs no longer present challenges; rather, it reflects how airport managers have more experience with integrating TNC operations into their commercial ground transportation services. As evidenced by the comments expressed in the airport interviews, many key issues persist:  managing curb congestion and enforcing permit conditions  supervising and managing staging areas: location, dwell times, amenities, and capacity  balancing changes in mode share: reassigning curbs, relocating hold lots, revising fees  reassigning pick-up and drop-off locations due to major terminal renovations and capital improvements  ensuring safe and secure customer service: driver background checks and training; passenger wayfinding  developing constructive relationships with TNCs  conducting program audits and ensuring the accuracy of trip reporting 3.1 CURB MANAGEMENT Airport operators designate the level (Departure or Arrival) and the assigned area (private vehicle, commercial vehicle, courtesy shuttle, etc.) for TNC drop-off and pick-up. Growing enplanements at many airports has resulted in congested curbs and roadways at peak periods; in response, airport operators have reassigned TNC operations from congested levels to less congested levels. As an example, in June 2019, DEN changed TNC operations by moving all pick-up and drop-off activity to its commercial vehicle level. This change was prompted by the growth

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-5 | Impact on Airport Operations of enplaning passengers and the growth of the TNC’s, which was creating a bottleneck on the Departures level.35 D- FW conducted a comprehensive analysis of curb conditions; this resulted in reallocation of curb assignments and a plan for “Permanent Holistic Curbside Signage.” Current curb signs at D-FW Terminal D are shown in Exhibit 3-1. EXHIBIT 3-1 CURB S IGNS SOURCE: D. Galloway, D-FW, August 7, 2019. As well, airport operators have modified curb assignments and, in some cases, have relocated TNC passenger pick- up to nearby garages or surface lots. As explained by one airport executive, TNC pick-up can require more curb capacity than other modes due to the more random arrival of TNCs (as distinct from the sequential queuing of taxis at the curb) and the additional time it may take for drivers and passengers to identify each other. As he noted, “With pick-up on the arrivals level, the taxi waits at the curb; with TNCs, the passenger waits at the curb.” An effective practice is to relocate TNC activity to a nearby garage or intermodal facility. 3.2 STAGING AREAS Several airport operators said their initial staging lots quickly filled to capacity and that alternative sites were soon needed. This reflects the rapid capture of market share, as well as the lack of experience in forecasting TNC demand. Accurate data and information from TNCs would help inform the sizing of staging lots. Although the June airport survey found that for large-hub airports the mean staging lot capacity is just over 200 spaces, the interviews suggest 265 spaces to 300 spaces reflects a more reasonable number of spaces. Adequate staging lot capacity is also important to avoid queues from vehicles entering the lot from spilling back onto adjacent access roads. Almost all staging areas have sanitary facilities and trash holders, and one has an area for prayer. Amenities such as driver lounges, canteens, or vending machines are not typically provided; at several airports the staging lot is a short 35 Personal communication from Herald Hensley, Acting Senior Vice President of Parking and Transportation Systems, Denver International Airport, August 7, 2019.

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-6 | Impact on Airport Operations walk to a nearby gas station or convenience store. Many airport operators regulate activities in staging lots, including limiting dwell time and engine idling. Exhibit 3-2 presents two examples of TNC staging areas. EXHIBIT 3-2 STAGING AREA Dallas Fort Worth International Airport Boston Logan International Airport SOURCE: D. Galloway, D-FW, August 7, 2019; Ricondo, September, 2018. 3.3 BALANCING CHANGES IN MODE SHARE As market shares change, airport operators are reviewing the location and capacity of ground transportation facilities. One airport operator interviewed is in the process of relocating the initial TNC staging area to the taxi area and relocating the taxi pool to a smaller and more remote location. Another airport operator has carved out just over 300 spaces in a portion of a parking overflow lot that is a 5-minute drive to the terminals. Additionally, in response to market share changes and congestion, another airport operator has split its TNC pick-up locations; it offers either curb pick-up or pick-up at a nearby garage, and it has instituted a two-tier trip fee: $5 for curb pick-up and $3.60 for garage level pick-up. 3.4 REASSIGNING PICK-UP AND DROP-OFF LOCATIONS DUE TO MAJOR TERMINAL RENOVATIONS/CAPITAL IMPROVEMENTS Several airport operators interviewed are in the midst of making capital improvements that have affected curb access and roadway configurations. Terminal doors may be closed, sidewalks and waiting areas may become inaccessible, and there may be temporary or long-term lane closures and diversions. This requires close coordination and communication with the TNCs to ensure apps are updated to reflect the most current conditions. Reconstruction projects are done with some regularity, so all commercial ground transportation providers must be well briefed on planned changes to terminal access and roadway traffic patterns.

ACRP 01-35: TNCS: IMPACTS TO AIRPORT REVENUES AND OPERATIONS AUGUST 19, 2019 FINAL DRAFT DELIVERABLE Reference Guide | 3-7 | Impact on Airport Operations 3.5 SAFE AND SECURE CUSTOMER SERVICE: DRIVER BACKGROUND CHECKS AND TRAINING; PASSENGER WAYFINDING Ensuring the safety and security of passengers is of paramount importance to airport management. Thorough driver background checks are essential, and the adequacy of screening conducted by the TNCs has been a contentious issue. Massachusetts requires CORI and sex offender checks for drivers, and this level and quality of reporting should be the best practice. Driver turnover is high for TNCs (relative to other providers), and airport roadways and curbs are often congested. It is important that airport operators include driver training as a requirement in permits. Airport operators should reserve the right to review and approve training materials. As discussed in more detail in the following section, driver training is provided by TNCs through their websites and apps. The adequacy of this training should be regularly reviewed and verified by landside managers. Most airports provide wayfinding similar to that provided for the other commercial ground transportation services: limos, taxis, courtesy shuttles, and public transportation. Some airport operators have not installed signage specific to TNCs, while others have worked to develop wayfinding terms and signs to guide passengers to designated pick- up zones. The lack of consistent signage across airports led the American Association of Airport Executives (AAAE) to undertake an effort to recommend a more standard approach to TNC terms and icons for signs.36 This is discussed in more detail in Section 5. 3.6 DEVELOPING CONSTRUCTIVE RELATIONSHIPS WITH TRANSPORTATION NETWORK COMPANIES All airport operators interviewed said senior landside managers meet on a regular basis with representatives from the TNCs. These meetings offer an opportunity to discuss proposed changes in procedures and curb assignments, to discuss upcoming capital projects that may alter access patterns, and to identify emerging customer service or enforcement issues. Several landside managers mentioned walking terminal curbs with TNC representatives to observe operations and to discuss the rationale for the airport’s rules and regulations. 3.7 ENSURING THE ACCURACY OF TRIP REPORTING AND PROGRAM AUDITS All airport managers interviewed said their TNC permits included the requirement that the company allow an airport operator to conduct an independent audit to ensure trip fees are properly recorded. The audits also typically test whether the company and its drivers are complying with other permit terms and conditions, particularly liability insurance. The audit serves to identify any discrepancies in reported activities, underpayments, or other violations of the agreement.37 The audit can also be used to test and verify the accuracy of the geofence coordinates that the company is using. 36 “Establishing a Common Standard for TNC Wayfinding at Airports,” AAAE, August 2018. 37 For an example, the Port of Seattle’s recent audit of TNCs can be accessed at: https://meetings.portseattle.org/portmeetings/attachments/2018/2018_03_19_SCM_9_TNC.pdf

Next: 4. Impacts on Airport Revenues »
Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations Get This Book
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As of June 2019, transportation network companies (TNCs) such as Uber and Lyft operate in the ground transportation markets at all major domestic commercial airports. The rapid emergence has presented multiple challenges to airport operators, states, regional transit authorities, and city governments.

The pre-publication draft of the TRB Airport Cooperative Research Program's ACRP Research Report 215: Transportation Network Companies (TNCs): Impacts to Airport Revenues and Operations is designed to help airport operators develop and implement practical approaches to managing TNCs within the context of commercial ground transportation policies and programs. The report presents best practices that have proven to be effective tools that airport operators can use to manage TNC operations and develop sustainable revenue models. It particularly is designed to help airport operators evaluate the tradeoffs among customer service, revenue generation, current operations, and long-term facility planning.

Additional resources include a Mode Choice and Revenue Simulator Template spreadsheet and an accompanying dataset.

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