Airport Experience® News - Leadership & Culture Issue 2023

DIRECTOR’S CHAIR

Some of the things we’ve done already. We expanded Concourse A – that was completed in 2020 and provided us with six new passenger gates. We are currently renovating our FIS facility to bring it up to the standard to allow for international service. We recently completed the expansion of Concourse B apron, which will allow us to accommodate future expansion of the Concourse B building to add additional gates as needed. We will consolidate our security checkpoint. There are some restroom renovations we need [and] some signage to accommodate international traffic. There are a few airflow projects on the runway and taxiway aprons we need to do to accommodate international flights. And next year we’ll be undertaking the development of a new master plan. That sets a course for our capital development at the airport for the foreseeable future. WARD: Turning to concessions, who are your operators and how are they doing? MILLER: We have two joint ventures [with Delaware North the lead on the food and beverage contract, and Hudson the lead on the retail contract]. With our growth, there is increasing demand and that seems to outpace what’s available. Our operators do a very good job at providing services and making sure that our passengers have an exceptional experience. But they’ve been here a while and the look and feel is the same (both operators have been at RIC since 2006. Delaware North’s current contract started in 2020 and expires in mid-2027. Hudson’s contract expires in 2030). Frequent fliers and visitors want to see some change, so I think that’s probably what’s next on the horizon. WARD: So you’ll have brand or concept refreshes? And do you have anything new in the works? MILLER: When we consolidate the security checkpoint, that will provide an opportunity for us to expand operations, and perhaps even add a lounge. Right now, we have a lot of pre-security space that’s just unusable [or underperforming]. Both operators are extremely excited [about the consolidation] because they’ll experience significant increases in revenue as well.

WARD: Bigger picture, I know you’re the chair of the AAAE executive committee. What’s top of mind as we head into 2024. MILLER: We haven’t yet convened to develop 2024 industry policy recommendations (as of mid-November), but I doubt there’ll be a significant departure from our current priorities. At the top of the list is FAA Reauthorization. We certainly will be focusing on enhancing our ways and means of improving our infrastructures. We want to also eliminate the federal cap on the local PFC user fees. Regulatory reform is another area of focus for AAAE. We like to see full implementation of section 163 [of the Reauthorization Act], which would help accelerate airport land use development, and we should certainly focus on removing the costly hurdles to the implementation of the bipartisan infrastructure law. (Section 163 limits the FAA’s authority to regulate non-aeronautical property transactions.)

Above: Concessions are performing well at RIC, and a planned security checkpoint consolidation will open up more opportunities for airside concessions options.

Environmental issues are another big focus, such as PFAS - there needs to be a plan to assist airports in moving to the [new required] firefighting foam. There need to be federal funds provided for the acquisition of the new foam, disposal of the old foam and remediation of airports. The small community air service and workforce issues include modernizing the Essential Air Service program by increasing funding levels to at least $20 million. Then finally, we like to see the focus on FAA facilities and equipment and operations. There needs to be some attention directed to that to ensure that we’re operating safely and that we can safely integrate [unmanned aircraft systems] into our infrastructure.

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AX NEWS LEADERSHIP ISSUE 2023