The COVID-19 pandemic has taken a huge toll on nearly every business in the country, including the airline industry, which has seen devastating losses across the board. Passenger levels fell 96 percent compared to 2019 and the Airports Council International-North America (ACI-NA) estimates airports will lose at least $40 billion through March 2022. Despite a nominal bounce back from its lowest level, our nation’s air traffic is not projected to return to pre-pandemic levels until at least 2023.
This is not a good sign for an industry that supports $1.4 trillion in annual economic output and 11.5 million jobs each year in the United States. Across the country, our large and regional airports serve as important economic engines that support local communities and help grow thriving regional economies. Our focus needs to be on what we must do to help restore the entire aviation industry and rebuild our airports for America’s economic success.
As some pandemic-related restrictions are being lifted and demand for travel begins to return to a semi-normal state, we must look ahead to the future and act deliberately, strategically, and promptly. Successful rebuilding of our critical infrastructure depends on collaboration between airlines, airports, and lawmakers to come up with solutions to help the industry and the economy get back on track. To achieve this, our conversation needs to focus on three key areas:
- Need for aggressive federal level funding
- National policy for drones
- Updates to air traffic control systems
Funding
Funding is critical to keeping airports running safely and efficiently for post-pandemic travel, and to help infuse the economy with money and jobs. It is hard to believe, but it has been 45 years since a new airport was built in the United States. While airports have undergone modernization and terminal redevelopment programs, the fact remains that most airports were constructed pre 9/11 and COVID-19 and were designed and constructed around many aircraft that are no longer in use today. As funding becomes more readily available, our industry must seize opportunities to leverage as best we can toward our future vision.
There are so many projects that were put off for years because airports were too busy and crowded to make room for them. But with traffic levels still down, it makes sense to prioritize and accelerate projects sooner than later.
The Airport Improvement Program (AIP) and other federal grants and discretionary funding can potentially be tapped. The bond market is another place that large infrastructure programs can seek financing. A third and somewhat contentious option is increasing the passenger facility charge, which has been at $4.50 for over 20 years. While this last option may not be popular with airlines and travelers, it is a potential source of needed revenues and should be a topic of discussion in the industry. Rather than having an adversarial relationship between airports and airlines, now is the time for the parties to come together to consider options and solutions because the industry is hurting and without airplanes landing at airports, passenger facility charges are irrelevant.
So how can we bring airports and airlines together for meaningful discussions on securing the future? We do this by opening an industry dialogue about the big funding picture. There is an estimated $115 billion backlog in planned airport projects, yet airports only get about $3 or $3.5 billion in appropriated by Congress annually, there is a huge shortfall for what is really needed. There are also tens of billions of dollars in additional projects that have been delayed or canceled due to the pandemic and subsequent economic recession. As a critical global industry, we need to work collectively to ensure sufficient funding is available to keep our infrastructure safe, up to date, and well positioned for the future.
Drones
As we move into the aftermath of the pandemic and the continuing challenges caused by 9/11, we must keep pace with new technologies. One of these is the advent of drones, which whether we like it or not, appear to be here to stay. While they can be perceived as privacy invaders, drones are proving useful for capturing pictures for construction projects and real estate, as well as delivery tools for companies such as Amazon. But with this new technology comes questions of how it will be controlled and regulated?
The Federal Aviation Administration (FAA) just released new drone regulations that now allow remotely piloted drones to fly at night and over people, under certain conditions. This will allow for more widespread use of drones for deliveries. To address security concerns, the regulations require remote identification. This rule provides for identifying drones in flight along with their location, which is intended to reduce the risk of them interfering with other aircraft or being a danger for people or property on the ground.
When used near an airport, where does drone airspace lie if licensed by the FAA? Currently, the FAA states that drone operators should avoid flying near airports because it is difficult for manned aircraft to see and avoid a drone while flying. Drone operators must avoid manned aircraft and are responsible for any safety hazard their drone creates in an airport environment. For flight near airports in controlled airspace, drone operators must receive an airspace authorization prior to operation that comes with altitude limitations and may include other operational provisions.
Drone operations are expected to grow rapidly in the coming years, and the new FAA rules aim to ensure that drones can operate as safely and securely as possible and minimize risk to the safety of aircraft, passengers, and people and property on the ground. Moving forward requires stakeholders to navigate the challenges of integrating emerging technologies that can improve and enhance our daily lives.
Updates to Air Traffic Control Systems
The FAA air control system is under great stress and currently working at capacity, with the system processing between 2.5 and 2.7 million passengers per day through check points in the U.S. The system needs updating to meet demands as air traffic returns to pre-pandemic levels.
The FAA oversees maintaining and updating the infrastructure of nearly 300 airport traffic control towers (ATCT) and terminal radar approach control (TRACON) facilities around the country. This includes modernizing facilities to ensure they are consistent with evolving air traffic operational needs and airport expansions. From funding cuts and cost overruns to construction delays, airports must work with officials to resolve problems that could arise when the FAA replaces or upgrades aging facilities.
The FAA is currently moving forward with a decades-long plan to upgrade air traffic facilities and support a NextGen plan to make the world’s most complex airspace safer, more efficient, and environmentally responsible. Many control towers built 20 years ago are incompatible with today’s operational requirements. The average age of a tower is 27 years, and some are up to 40 years old. This massive, ongoing upgrade requires project planners who can focus on specific infrastructure improvements without losing sight of the FAA’s ultimate goals.
The Way Forward
We are moving forward in an ever-changing world of new technologies and safety requirements, overdue airport infrastructure and safety upgrades, all the while facing funding challenges. The way forward requires adaptation, innovation, and creativity to successfully rebuild our industry’s historic role as an essential economic generator in a global economy. It is a monumental effort that needs to be embraced individually and collectively by all stakeholders. The best solution to recovery is to engage opening in a national dialogue. One major step we can take together is to engage in a national conversation, rather than in a debate. Solutions will ultimately emerge when we find ways to talk across economic, political, and cultural divides - within our industry, organizations, and the communities we serve.
Lou Russo is the National Aviation Market Sector Leader for HNTB Corporation.
