ORLANDO, FL. – The Greater Orlando Aviation Authority (GOAA) Board considered several fiscal issues at its August meeting today. With passenger traffic surging at Orlando International Airport, the Authority’s financial outlook is being adjusted to reflect changes in revenues.
The Board reviewed and approved the preliminary 2021-2022 Fiscal Year Budget for Orlando International Airport (MCO) and Orlando Executive Airport (ORL). The MCO budget for the coming fiscal year is $578,380,000 and the budget for ORL is $6,637,000.
MCO budget highlights include:
- $57.1M increase in Ground Transportation revenue
- $34.2M increase in Baggage Handling fees
- $7.4M increase in Janitorial Services
- Cost Per Enplaned passenger (CPE) decrease from $13.90 to $9.25
- Landing Fee decrease from $3.74 to $1.63
- Terminal Premises rate increase from $140.59 to $167.50 per square foot
Following Board approval, the preliminary budget will be sent to the Orlando City Council for discussion at a public hearing next month before returning to the GOAA Board for final approval.
Capital Project Revisions
The Aviation Authority’s Capital Improvement Program (CIP), which is a multi-year plan for major enhancement and development projects, was updated for the Board. The CIP timeline for Orlando International extends from 2021 through 2027. It derives from the Authority’s Master Plan and addresses airport capacity; asset preservation; safety and security; and demand for air service.
The current adjustment takes the CIP from $3.756 billion to $3.577 billion. The combination of increases and decreases to specific projects will net an overall reduction of $178.9 million. The graphic below summarizes the changes.
Adjustments were also made to the CIP for Orlando Executive Airport. For the period Fiscal Year 2021-2027, ORL projects will total $33.34 million. This includes approximately $28.53 million in grant revenues and $4.81 million in local funds.
ORL Capital Improvement Program highlights include:
- $2M in proposed improvements to Colonial Promenade mall
- Loss of tenants has resulted in loss of revenue to ORL
- Improvements are critical to attract new tenants
- Renovations projected to improve potential for non-aeronautical revenue increase
Passenger Lounge Award
Concessions at South Terminal C (STC) continue to be finalized. The Authority Board accepted the recommendation of the Concessions/Procurement Committee and approved the awarding of a passenger lounge concession to Trip Hospitality Orlando LLC.
The group received the highest ranking among five proposal bids and will operate and maintain the more than 9,300 square-foot space in the South Terminal’s airside hub. The term of the concession is 10 years and will commence when the STC opens to the public.
The construction of this amenity follows the trend of airports creating common use passenger lounges.
Employee Compensation Adjustments
GOAA Chief Executive Officer Phil Brown presented the board with a request to authorize funding for compensation adjustments for Aviation Authority employees. Due to pandemic-driven cost-cutting measures, the Authority’s Non-Bargaining and Bargaining Unit employees haven’t had a salary adjustment since March 2019.
In order to provide competitive compensation for hiring and retaining employees, the Board approved the revised salary structure. The action will also increase the Authority’s minimum hourly rate from $12.56 to $15.00. Based on current employee levels, the fiscal impact for the compensation adjustments and associated benefits is estimated to be $2,400,000.
The updated compensation structure becomes effective October 3, 2021.
Vaccination Clinic to Return
Orlando International Airport will welcome the return of a COVID-19 vaccination clinic to the Main Terminal. The previous, state-run clinic closed in late July. Following requests from the airport community and traveling public, GOAA actively looked for a way to re-open the clinic. It was announced today that the Authority will partner with Walmart to continue the airport’s vaccination effort.
This facility officially opens Thursday, August 19, 2021 and will be operated through a federal vaccination program and will only offer the Pfizer vaccine. It will be located on the B side of the Hyatt Atrium across from the security checkpoint for Gates 70-129. The clinic will be open Thursday through Monday, from 12:00 p.m. to 6:00 p.m.
The information herein is provided as of the dates specified. Due to the outbreak and continuation of COVID-19 subsequent to the date of such information, the information contained herein may differ materially from the current operational and financial data.