Draft EUG Master Plan Update, February 2010

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CHAPTER 5 FINANCIAL FEASIBILITY ANALYSIS the Transportation Security Administration may also become a financial source for airport improvements. Other public entities may be interested in partnering with the Eugene Airport for joint-use improvements. As developments are proposed, these and other local, state, and national funding sources should be evaluated. 3.6 Private Funding In addition to projects listed in the Capital Improvement Plan, privately-funded improvements are also expected at the Airport. Aviation-related business, aircraft maintenance and manufacturing, flight training and education, museums, and hangars for FBO's, general aviation, and corporate aircraft are all welcome privately-funded developments. It is estimated that $200 million of these types of projects could occur at Eugene over the next 20 years. These improvements would allow the Eugene Airport to continue its support of aviation activity, expand its service to the community, and increase its contribution to economic development. 4. Historical and Projected Airport Revenues Table 5-4 depicts the Airport’s historical revenues from FY 2003 through FY 2009. As shown in Table 4, the major source of non-airline revenue for the Airport during this period has been the public parking facility while rental auto concession fees have also represented relatively significant portions of the Airport’s revenue base in these years. Collectively, these sources of revenue are anticipated to account for approximately 72 percent of non-airline fees during fiscal year 2009. It is noteworthy that between FY 2003 and FY 2009, the Airport reduced its reliance on airline rents and fees resulting in a more diverse mix of overall revenue. In FY 2003, total airline revenues, including landing fees, Terminal Building Common Use/Preferential/Exclusive rents totaled $3,141,524 representing 47.5 percent of all revenue collected by the Airport in that year. In 2009, airline revenue is expected to total $2,591,611, comprising only 35.5 percent of total airport revenues. This decrease in reliance on airline fees and rents created a decrease in a key efficiency benchmark for airlines; the airline cost per enplaned passenger. This indicator is utilized to convey the relative “cost of doing business” for an airline at an airport as reflected in its ability to spread its expense associated with renting and utilizing airport facilities among its passengers. For Eugene, this indicator dropped from $7.21 per enplaned passenger in FY 2004 to $6.46 per enplaned passenger in FY 2009 (budgeted). Finally, it should also be noted that because of the growth in airport parking revenue and rental car concession fees, the Airport’s overall revenue base expanded 10.3 percent or approximately 2 percent per year during this period. Estimates of the Airport’s future revenues were developed based on historical trends from FY 2003 through FY 2008, the terms of the Airport’s Use Agreement with the signatory airlines; the Airport’s FY Table 5-5 2009 adopted budget, as well as an analysis of future revenue potential of the Airport. presents budgeted revenues for FY 2009 and projected revenues for the period from FY 2010 through FY 2016, the end of the mid-term planning period for the Airport’s CIP. 5-16 Eugene Airport Master Plan Update (February 2010)