ORLANDO, FL. – At its March meeting, the Board of the Greater Orlando Aviation Authority (GOAA) met and made a number of key decisions about the future of Florida’s busiest airport and the economic relief for Orlando International Airport’s (MCO) in-terminal concessions.
For the third time since the pandemic began, the Aviation Authority Board has approved an economic relief plan for companies doing business at the Airport including concessions and rental cars, along with over $5.2M in additional money from the Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA).
The Authority adopted resolutions to grant relief to distribute the CRRSA monies and provide for additional relief to its in terminal concessionaires.
The Aviation Authority has taken a prudent, step-by-step approach to managing its financial commitments and the financial pressure applied to its business partners. The additional relief passed at the March 17, 2021 Aviation Authority Board meeting adds approximately $19 million of Aviation Authority relief. As a condition to receiving the relief, the Aviation Authority is requiring its business partners to submit a business reopening plan. The business plan should detail employee hiring and how they will reopen in light of increasing traffic.
Phil Brown, Chief Executive Officer of the Greater Orlando Aviation Authority stated, “The Board realizes that the pandemic has impacted everyone, especially our concessions. Our objective is to try to help the concessions to stay afloat, provide the Orlando Experience and meet customer demand. They will only be able to start rehiring or bringing furloughed employees back when the traffic returns.”
Over $98 Million Total Relief Proposed to be Provided by MCO
|Adopted May 2020 Resolution||Adopted August 2020 Resolution||Proposed March 2021 Resolution||CRRSA Pass Through||Total|
Airport Financial Audit
The Board received the Comprehensive Annual Financial Report which contained a “clean” audit opinion from the Airport’s independent external auditors. The report reflects the direct impact the reduction in passenger traffic due the pandemic has had on budgets and airport revenue compared to 2019. The audit revealed that GOAA weathered fiscal year 2020 with an operating loss of $40.4 million as compared to an overall operating income of $68.1 million in September 2019.
|September 2020||September 2019|
|Total Long Term Debt||$3,571,582,000||$2,628,528,000|
|Operating Income (Before Depreciation)||$150,493,000||$251,277,000|
|Total Operating Income/(Loss)||($40,397,000)||$68,130,000|
Various Items Addressed by the Board
Approval of a $50M increase and extension of revolving line of credit agreements with Wells Fargo Bank for a total of $225M and Bank of America for a total of $125M.
South Terminal “C” Project cost reallocation efforts that decreased contingency accounts and unused funds resulting from the close out of completed contracts from the construction managers at risk to open STC related contracts transferring a total of $11.7M.
New GOAA Board Members
The Board of the Greater Orlando Aviation Authority welcomed two new members, appointed by Florida Governor Ron DeSantis, at the March meeting Mr. Craig Mateer and Dr. John Evans, Jr.
Mr. Mateer, the founder and Chief Executive Officer of the CCM Capital Group is also the former CEO of BAGS, Inc. In 2014 Mr. Mateer was named the Orlando Business Journal’s CEO of the Year. Mr. Mateer is currently a member of the Florida State University Board of Trustees and the university’s Micco Society.
Dr. Evans, of Winter Park, is the Executive Director of Janus Labs at Janus Capital Group. He is an author and regularly contributes to the Orlando Sentinel and Barron’s Magazine. Dr. Evans earned his bachelor’s degree from the University of Florida, his master of business administration from the University of Miami and his doctor of education in organizational leadership from Pepperdine University.
Both appointments are subject to approval by the Florida Senate.