Planning for Terminal Area Vertical Takeoff and Landing

Planning for Terminal Area Vertical Takeoff and Landing (VTOL) Noah Karberg, CM and Tom Rafter, AAE Nantucket Memorial Airport 2019 NEC/AAAE Airports Conference 3/29/19

Outline 1. 2. 3. 4. 5. 6. Introduction to VTOL & e. VTOL Threat vs. Opportunity? Ground Transport or Aircraft Operator? ACK Interest Operating Concepts Conclusions 2019 NEC/AAAE Airports Conference 3/29/19

Introduction to VTOL – What? VTOL Extant: See Harrier e. VTOL • In development (Boeing, Bell, Embraer) • Electric/hybrid • 100 sm/5 PAX • Role of Autonomy 2019 NEC/AAAE Airports Conference 3/29/19

Introduction to VTOL – When? Deployment? Depends who you ask… AOPA: “a long time” Aviation industry: 10+ years/Maybe 2030 Uber Elevate: 2023 in Dallas & Los Angeles Transcend Air: 2024 Boston - NYC Eviation: 2022 Forbes: $2 B investment in 135 aircraft Morgan Stanley: $2. 9 T by 2040 2019 NEC/AAAE Airports Conference 3/29/19

Introduction to VTOL – How? 2019 NEC/AAAE Airports Conference 3/29/19

Introduction to VTOL – How? Traditional • Aircraft certificate Disruptive • Fleet purchase • Service announced • Airport FAM • Service start 2019 NEC/AAAE Airports Conference 3/29/19

Is VTOL a Threat or Opportunity? Threats: 1. Technology deployed faster than FAR’s are developed 2. Anticipated deployment tactics: See Uber 3. Unmanned/Airspace integration 4. Catchment Leakage 2019 NEC/AAAE Airports Conference 3/29/19

Is VTOL a Threat or Opportunity? Opportunity: 1. Now is the time to identify needs: concurrent with CIP 2. A solution to the Pilot Shortage? 3. Answer to unoccupied vehicle parking? 4. Catchment expansion 2019 NEC/AAAE Airports Conference 3/29/19

Is VTOL a Threat or Opportunity? Ultimately a Strategic and Practical Determination • PAX Profile • O&D vs. Connecting • Space Constraints • Ground Transport Performance • Air Service Synergies 2019 NEC/AAAE Airports Conference 3/29/19

IS VTOL a Ground Transport Provider or Aircraft Operator? 1. “Point to Point” Network Strategy 2. Initial policy positions: – Operate <500’ AGL – Expansion of existing TNC model 3. Originating vehicle fees are common at airports 4. Airports shut out/passive so far 5. Autonomy and AOA access vs. 1542 2019 NEC/AAAE Airports Conference 3/29/19

IS VTOL a Ground Transport Provider or Aircraft Operator? 1. Fundamentally an aeronautical use. – UAS is growing up as a child of FAR – Even <500’ AGL, part of NAS 2. Eventual pushback (noise, aesthetics, landing) need FAR coverage to avoid local regulations – Grant Assurance protections – Part 161/Stage 3 compliance status 2019 NEC/AAAE Airports Conference 3/29/19

IS VTOL a Ground Transport Provider or Aircraft Operator? A hybrid model remains a possibility: • Concurrent Air and Landside • Fence straddling operation • Certification requirements (Commercial Airports vs. Heliports) • Cost Centers and Rate Making 2019 NEC/AAAE Airports Conference 3/29/19

ACK Interest and Opportunity Loss of Mainland Connectivity 2019 NEC/AAAE Airports Conference 3/29/19

ACK Interest and Opportunity Loss of Mainland Connectivity 2019 NEC/AAAE Airports Conference 3/29/19

ACK Interest and Opportunity 1. Declining revenue (Loss of 170, 000 enplanements. 2. Reduced Impact (Sponsor approval of projects) 3. Loss of Community Benefit (1 -2+ hr boat ride vs. 15 min flight) 2019 NEC/AAAE Airports Conference 3/29/19

ACK Interest and Opportunity 1. Tourism/Historic District/Local ordinance 2. Time is Money 3. Too Big to Fail/Summer Finance? 2019 NEC/AAAE Airports Conference 3/29/19

Concept: Landside Operation (Concession Development) Space Plan: Close-in parking – 21, 780 ft 2 – ≈ 10 hourly ops Revenue Structure: – Originating TNC fee – FMV Rent w/ MAG Approach: 1 x operator Master Concession 2019 NEC/AAAE Airports Conference 3/29/19

Concept: Landside Revenue TNC-type Fee: • Mass. Port: $3. 25 origination fee • 33, 600 arrivals, assumes: – 5 seats – 50% LF = $109, 200/yr Rental Structure: • Fair Market Value: $4. 26 per ft 2 for 21, 780 ft 2 = $92, 783/yr • + 10% handling fee on other operators MAG = $150, 000 + $259, 200: a 2. 5% increase in ACK Total Revenue 2019 NEC/AAAE Airports Conference 3/29/19

Concept: Airside Operation (Aeronautical Agreement) • Part 135 Commuter – Terminal tenant (nonsterile) – Signatory treatment • Commercial Enplaned PAX – PFC – Entitlement • Minimum Counter/office space 2019 NEC/AAAE Airports Conference 3/29/19

Concept: Airside Revenue Landing Fee: $103, 824 PAX Spend: $73, 920 Business Rent/Fees: $33, 780 PFC: $367, 920 Entitlement: $218, 400 =$797, 844 (+ 9% increase to ACK Total Revenue) 2019 NEC/AAAE Airports Conference 3/29/19

Concept Summary Landside: • Less revenue • Less impact Aeronautical: • More revenue • More congestion 2019 NEC/AAAE Airports Conference 3/29/19

Conclusions 1. Many unknowns – that’s OK 2. General synergy – vehicle parking and small community air service 3. Early adopters stand to benefit 4. Long Term Threat: marginalize non and small hubs, unless – Regulatory Framework (perimeter rule/scope clause) – Require System Funding 2019 NEC/AAAE Airports Conference 3/29/19

Conclusions 5. Conflict: Dominant mainline carriers protecting markets vs. a public getting tired of the traditional PAX experience 2019 NEC/AAAE Airports Conference 3/29/19