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The Orlando Experience®
Updated: 2 hours 13 min ago

Preliminary Airport Budgets for FY 2019 Presented to Greater Orlando Aviation Authority Board

Wed, 08/15/2018 - 4:44pm

ORLANDO, FL. — With Orlando International Airport currently engaged in the largest capital improvement program in its history, the Greater Orlando Aviation Authority (GOAA) Board got its first look at the budget for the next fiscal year. The $566,910,000 FY 2019 budget for Orlando International Airport (MCO) represents an overall increase of $48.7 million over last year. The budget for Orlando Executive Airport (ORL) is $3,791,000 for the fiscal year that begins October 1, 2018.

“The new budget is an opportunity for us to continue growing by being fiscally responsible while meeting demand and focusing on our priorities as an organization,” said Phil Brown, Greater Orlando Aviation Authority CEO. “We will be able to meet capital improvement goals, safety and security needs, and provide the personnel required to deliver a world class guest experience to the traveling public.”

The increase in revenue reflects the historic passenger traffic growth at MCO. Based on current data, GOAA expects to surpass 47 million passengers in October 2018. The robust activity has impacted nearly every airport cost center. Following are several of the most significant areas of increase:

  • Landing revenue: $12.7M resulting from increased landing fees of $2.0617 per 1000 pounds and an increase in projected landed weight because of additional frequency and upgauged aircraft
  • Parking revenue: $10.3M based on increases in activity, rates and a full year’s operation of Garage C
  • Hotel revenue: $4.6M due to increases in occupancy and average room rates
  • Commercial Lane revenue: $3.0M due to increased activity and the addition of Transportation Network Company (TNC) activity
  • Terminal Premises: $2.2M resulting from an increase in the amount of space leased and a slight increase in the Terminal Premises Rate to $144.10 per square foot

MCO also maintains its desired revenue ratio with more than two-thirds of the budget supplied from non-airline sources after revenue sharing is applied.

Additional 2019 Budget Highlights:

  • Participating airlines account for 94% of MCO passenger traffic
  • Cost Per Enplaned passenger (CPE) for participating airlines will be $6.40 in FY 2019 as compared to $6.66 in 2018 (remains one of the lowest in the country for major airports)
  • Overall operating budget for ORL increased $275,000 over 2018 as a result of increases in Commercial Properties, aviation-related revenues and other revenue.

In presenting the budget, GOAA Chief Financial Officer Kathleen Sharman said, “Our objective is ultimately to provide passengers with world-class customer service, which we define as The Orlando Experience®, while maintaining an affordable cost structure.”

Following the Board’s preliminary approval Wednesday, the proposed budget will be sent to the City of Orlando for a public hearing before final adoption at the September GOAA Board meeting.

Also at the August GOAA Board meeting

The Board was presented with several awards and recognitions for MCO’s Capital Improvement Projects. Chief Operating Officer Stan Thornton reported on the accolades received for the airport’s major construction, expansion and renovation efforts.

  • Orlando Business Journal Structures Award for Top Community Impact. The award recognizes the overall $4.27 billion Capital Improvement Plan that includes Phase 1 of the South Terminal, the South Airport APM/ITF Complex & North Terminal expansion projects
  • Florida Department of Transportation 2018 Commercial Service Airport Project of the Year. The award for the South Airport Intermodal Terminal Facility recognizes outstanding achievement in airport aesthetics, safety and service.
  • Southeast Chapter of the American Association of Airport Executives Commercial Service Project of the Year-Architectural. The award recognizes the South Airport Automated People Mover(APM)/Intermodal Terminal Facility(ITF).
  • Engineering News-Record Southeast Best Projects Award-Airport/Transit. The South Airport APM Complex received a Best Project award and the Intermodal Terminal Facility received an Award of Merit.

Basic MCO information:
Ranked by J.D. Power “Highest in Customer Satisfaction for Mega Airports” in 2017. With more than 46 million annual passengers, MCO is the busiest airport in Florida and 11th busiest in the U.S. MCO has 21,000 badged employees and generates $31 billion in revenue for the regional economy. Orlando International Airport strives to value and delight its customers through an airport-wide design concept known as The Orlando Experience®.

 

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