Draft EUG Master Plan Update, February 2010

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CHAPTER 5 FINANCIAL FEASIBILITY ANALYSIS operating baggage and security areas used by all airlines. The Airport allocates 10 percent of the total rental requirement for these joint use areas equally among the airlines, and the remaining 90 percent of the requirement to the airlines based on their respective share of passenger enplanements at the Airport. Airline lease and joint use fees fluctuated between $756,601 in FY 2003 to $632,108 in FY 2009 and as shown in Table 5-5, this category of Airport revenue is projected to increase to $836,501 in FY 2016. For purposes of this analysis, it is assumed that the airlines are charged for the cost of two (2) additional Airport employees associated with the Phase II Terminal Building Expansion Project in FY 2012. Accordingly, a compounded annual increase of 2.0 percent was applied to revenue estimates for each year between 2009 and 2016, while an additional $100,000 in airline lease and joint use fees is expected to be collected starting in FY 2012 to recoup the Airport’s costs for personnel associated with this project. Airfield Area Revenue 4.4 For purposes of this analysis, airfield area revenue includes the following: revenues collected from non- airline (charter and air cargo carriers) landing fees, the rental of conventional and T-hangar lease sites and facilities from private and corporate lessees, revenues from fixed base operators (FBOs) leases, site and facility fees, revenues from per gallon fuel flowage fees on all aircraft fuel sold at the Airport, and revenues from the rental of aircraft tie-down facilities. Total airfield area revenues decreased from $432,139 in FY 2003 to $418,147 in FY 2009, primarily due to a decrease in non-airline landing fees. Total airfield area revenues are projected to increase from $418,147 in FY 2009 to $490,008 in FY 2016, representing a compounded annual growth rate of approximately 2.8 percent and spurred by increases in hangar rental revenue and collection of non-airline landing fees during this period. Rental Auto Concession Revenue 4.5 Rental auto concession revenue includes all fees associated with rental auto agency operations at the Airport including terminal area counter space, percentage of sales fees, and ready/return and service/storage area parking spaces. Rental auto concession revenues have increased from $656,899 in FY 2003 to $857,876 in FY 2009. Projections of future rental auto concession revenues were developed based on projected passenger activity levels and assumptions regarding the service/storage area expansions identified in the CIP. As shown in Table 5-5, rental auto concession revenue is projected to increase from $857,876 in FY 2009 to $1,207,118 FY 2016, representing a compounded annual growth rate of approximately 5.0 percent. Food and Beverage Service Revenue 4.6 Food and beverage service revenue represents minimum rental charges and percentage fees collected from restaurants located in the terminal building. This source of revenue decreased significantly between FY 2003 and FY 2009 due to the impacts of September 11, 2001 and decreased flow of customers available to concessionaires beyond the security checkpoint since this area was restricted to ticketed-only passengers. During the past six years, the Airport completed modifications to its food and beverage concession space to allow for increased retail offerings prior to passenger security screening. While food and beverage service revenue dropped sharply between FY 2003 and FY 2005, some modest increases have occurred since that time. It is expected that this source of revenue will increase from a proposed FY 2009 level of $64,000 to $90,054 in 2016; representing a compounded annual growth rate of approximately 5 percent. 5-20 Eugene Airport Master Plan Update (February 2010)