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Item # 2.

Council Meeting

Meeting Date:	01/25/2022
Department:	Airport
Pillars:	Excellence in Transportation Systems
Milestones:	Leverage Airport assets to maximize business growth and expansion Implement the Asset Management Plan in accordance with the Asset Management Policy, utilizing information systems

AGENDA CAPTION:

Present and Discuss the Airport Quarterly Report for the Fiscal Year 2021 Fourth Quarter Ended September 30, 2021.

BACKGROUND:

The purpose of this item is to provide City Council with an overview of key Airport performance measures for the fourth quarter of Fiscal Year 2021, which ended on September 30, 2021. This is the first of what will be a regular quarterly report on Airport performance measures and other significant events. This report also includes year-end summary data for the full Fiscal Year 2021.

The report presents data on revenue, fuel flowage, and aircraft operations (take-offs and landings) including international operations. The report also includes a snapshot of the Airport's real estate portfolio.

Highlights from the fourth quarter include:

Aircraft operations continue to show a strong trend of recovery from the pandemic.
Instrument Flight Rules (IFR) operations, which are a good marker for jet and turbo-prop operations, were unusually strong.
Fuel flowage for the fourth quarter posted the highest quarterly volume in roughly 14 years. Jet-A accounted for 91.8% of the total fuel volume for the quarter.
Addison is benefiting from the closure of Runway 13R/31L at Dallas Love Field, which began April 27, 2021 and is expected to continue at least until the end of April 2022. Congestion resulting from Love Field being reduced to a single-runway operation has encouraged a significant volume of business aviation traffic to select Addison as an alternative. This development has positively impacted Addison's IFR operations and Jet-A fuel flowage volume.
Real estate revenues remained flat, while fuel flowage fee revenue increased in proportion to fuel flowage volume, driving up total revenues.
With respect to the real estate portfolio, the airport is effectively at 100% occupancy.
The Galaxy FBO project is nearing completion and is expected to open in early February 2022. When Galaxy FBO opens, it will add more than 100,000 square feet of much-needed hangar capacity at Addison.
The U.S. Customs and Border Protection (CBP) and Airport Administration building is substantially complete as of October 15, 2021. Substantial completion is when the project is available for the owner or tenant to occupy the space to either operate or in this case complete tenant finish-out. The October 15 date is when CBP was able to enter the first floor space and begin finish-out for installation of their items. Security and access controls are the responsibility of JC Commercial to install, however that work is at the direction of CBP. It is anticipated that CBP will occupy the first floor of the facility on January 31, 2022.

Highlights from the full Fiscal Year 2021 include:

Total aircraft operations were down slightly (between 4% and 5%) compared with Fiscal Years 2019 and 2020. However, annual IFR operations reached their highest level since Fiscal Year 2008.
Total annual fuel volume was up 24.1% over the Fiscal Year 2020 total and reached its highest annual value since Fiscal Year 2007.
Total annual revenue was essentially flat from prior years, excepting the anomalous Fiscal Year 2019 in which a one-time $1 Million lease pre-payment was received in connection with the Galaxy FBO ground lease.

RECOMMENDATION:

Information only, no action required.

Attachments
Presentation - 4th Quarter Update - Fiscal Year 2021