PWC talk: 'The construction never stops.

"In the air travel industry, the construction never stops. We're always improving airports. We'll be here 20 years from now discussing upcoming projects," said William A. Fife, P.E., corporate vice president and director of aviation services for Frederic R. Harris, Inc. He was speaking at "Air 21 & Beyond - Airport Update," the October 11, 2000 breakfast seminar presented by Professional Women in Construction (PWC) at The Yale Club in New York City.

Predicting no end in sight to the renewal and expansion of airports throughout the nation and in the New York metro area, Fife reprised his role as moderator for the sixth consecutive time at PWC's ongoing series of programs on the airline industry. He said that $14 billion in public and private funds were already earmarked for the New York and New Jersey airports which anticipate a 50% increase in passengers by 2010, and that air travel is the "fastest growing transportation market." Fife also quoted an industry executive who called airport construction "the right business at the right time."

PWC president Lenore Janis later added, "PWC was there at the onset of the explosion in airport construction and has consistently remained on top of it, providing up-to-the-minute information on new opportunities to a wide spectrum of the industry. It's definitely proved itself to be 'the right organization, at the right time.'"

Fife pointed out that the boom has not been trouble-free and that the two consequences of greatest concern, highlighted at the North American Redevelopment Conference, are the impact on the environment and the difficulty of keeping airports fully operational during major construction projects.

The panelists, who explored these and related issues, included Barry L. Molar, manager, airports financial assistance division with the Office of Airport Planning and Programming, Federal Aviation Administration, Joanne Paternoster, assistant director at the aviation department of The Port Authority of N.Y. & N.J., Amy Chase, project manager with Morse Diesel International (MDI), and Ginger Evans, vice president of aviation services with Carter Burgess, Inc.

Molar outlined the newest guidelines in federal funding, noting that smaller airports would enjoy the greatest boost from the $3.2 billion approved by the House Appropriations Committee in Airport Improvement Program (AIP) grants. Molar also explained that PFCs (Passenger Facility Charges) have always been the second largest source of capital for large and medium hub airports (tax exempt bonds are the number one source and AIP grants rank third in funding). Therefore, the larger airports will find the greatest jump in revenue from the PFCs, which have been raised from $3 to $4.50, to be collected beginning in April 2001.

Molar discussed a new set-aside program of $6 million for "super-reliever" airports that will meet specific criteria. They must serve more than 75,000 operations -- take-offs and landings -- per year, have a landing area of 5000 feet or greater, house 100 aircrafts that are based at the site, and relieve commercial passenger aircraft at larger airports of at least 20,000 hours annually.

Another significant development is the addition of approximately $100 million in a national noise set-aside fund, raising the total pool to $322 million, which airports can tap into to implement noise compatibility planning or to mitigate aircraft noise.

He also outlined a design-build pilot program that may fund up to seven projects wherein a contractor will provide both design and construction. An airport sponsor may award a design-build contract if it is permitted under state or local law, the FAA approves the application, the proposed project has a schematic design, the design-build contract will be cost-effective and expedient, there will be no conflict of interest, and the selection process will be open, fair, and objective and have three or more bids.

Paternoster opened her remarks by explaining that customer service is tied intrinsically to construction projects, because "if the customer is not pleased, we need to question our work." Referring to the newly published guidelines from the Port Authority, "Setting a New Standard in Airport Customer Care," she said that the challenge is "to significantly improve customer satisfaction," while "assuring that services are of high quality." The program is currently underway at JFK, LaGuardia, and Newark.

Many disparate elements form a total airport environment and image, ranging from terminal operators, to immigration and customs areas, the airport's capacity and infrastructure, third party service contractors, access to the airport, safety and security, and flight delays. Problems in these areas, exacerbated when construction is ongoing, induce stress. All issues must be addressed in order to create "a world-class airport."

The Customer Service Improvement Program emphasizes attention to detail. Service must be professional and courteous, facilities, especially rest rooms, must be cleaned thoroughly and frequently, concessions should be inviting and uncluttered in appearance, and varied in offerings, and mobility to, from, and around airports must be fast and easy. Signage has to be clear and easy to understand. Old signs have recently been replaced under a new color-coded system.

Results, to date, have been positive. "Customer satisfaction is now up to 45%," said Paternoster, noting also that 83% of frequent fliers think that airports are well run (according to a Paine Webber survey). The Port Authority received 10 Airport Retail News Awards, and the International Airport Transportation Association (IATA) 2000 Survey ranked JFK as the second most improved airport (after Hong Kong International).

Chase followed up on Paternoster's observations by noting that there are "competing interests of maintaining airport operations and performing construction projects," and that "this is, at its root, a customer satisfaction issue for our clients, the airlines, airport developers, and the Port Authority."

She pointed out that two major issues separate airport work from most other building projects: security and worker access to job sites. Explaining that MDI must deal, on a daily basis, with the airside-landside demarcation line and with the additional zone between public space and secure space, she noted that at an active terminal passengers should be able to understand where and when these lines change.