The Minneapolis-St. Paul International Airport has been transformed in to the most cutting-edge, energy conserving airports ever designed. The airport will serve as a model for future improvements and designs for international airports of the future. The Minneapolis-St. Paul Airport is the twelfth largest airport in the United States in terms of passenger traffic. (About MSP). In 1920, the first landing strip was constructed and nine years later the airport became operational for passenger service. (About MSP). Nearly forty years later, the Lindbergh Terminal was constructed to serve 4 Million passengers by 1979. (About MSP.). In 1996, the Minnesota Legislature asked the Metropolitan Airport Commission to implement the MSP 2010 Long-Term Comprehensive Plan providing for 3.1 Billion for cutting-edge improvements on the current site forging it to the forefront of modern airport technology. (About MSP).
Runway Configuration and Airport Facilities
The Minneapolis-St. Paul International Airport has one airfield with four runways all of varying lengths. (About MSP). As shown in the diagram in Exhibit A, the longest runway is 11,006 ft X 150ft. (Airport Diagram for MSP.) These runways are needed to allow the many different types of aircraft that use and land at the airport. Usually air traffic controllers will use the longer runway for jet traffic. Jet airplanes usually need the extra runway to take off and land because of their high rate of speed needed to become airborne or extended distance to slow down after touchdown. The other runways are used for general aviation aircraft, military aircraft, and other aircraft that do not need the extra runway area. The airport contains three different approach lighting systems and twenty-six different instrument approaches that allow aircraft to see the runways at night. (Minneapolis-St Paul InternationalWorld-Chamberlain Airport). These runway facilities allow the airport to be seen during instrument flight rules and during night operations. Those facilities make sure that the airport does not close down and can operate at full capacity during many different weather and visual situations.
The Minneapolis-St. Paul International Airport contains two terminals, the Humphrey Terminal and the Lindbergh Terminal, both accessed by a light rail transit system and a complimentary shuttle service. (Light Rail Transit). The light transit system connects travelers to fifteen other destinations in the Minneapolis St. Paul area including downtown and the Mall of America. (Light Rail Transit). Trains run every seven or eight minutes during peak time periods and every ten to fifteen minutes the rest of the day. (Light Rail Transit). This wonderful system allows the laying over traveler to leave the airport and enjoy many of the attractions of Minnesota. A passenger with a few hours to pass could hop a train to the Mall of America to shop away the time. The light rail service also provides energy conservation and pollution reduction by using the trains to get to the airport instead of automobiles, which is one of the design features making the airport more attractive to environmentalists and conservationists. This is very attractive and beneficial economically and environmentally to the community as a whole. Tickets cost 2.25 for adults during rush hours and 1.75 during off-peak periods. (Light Rail Transit). Reduced fares are offered for seniors, children, and persons with special needs. (Light Rail Transit). The trains return straight to the terminals allowing passengers to reach the proper terminal without having to travel between the terminals. (Light Rail Transit). This is an attractive feature as many travelers are in a hurry to make flights and eases passenger tension making the airport an attractive place to come.
The complimentary shuttle service allows passengers to connect between terminals free of charge. (Light Rail Transit.). It is used as an alternative to light rail for passengers needing to transfer between the two terminals. This feature allows quick transition between terminals allowing all passengers to enjoy the amenities in other terminals time permitting. It also allows passengers the ability to make connecting flights in other terminals in a very short amount of time. This usually a standard feature for most international airports at this point in time because the benefit it gives to the passengers.
Financial Structure and Issues
The Minneapolis-St. Paul International Airport is a publicly owned airport that is managed and run by the Metropolitan Airports Commission (MAC). (About MSP.). The Metropolitan Airports Commission is a publicly corporation established in 1943 and provides for coordinated aviation services throughout the Twin Cities metropolitan area. (About MSP.). The MAC uses revenues from concessions, lease agreements, and airline fees to operate the airport. (About MSP.). In 2008, operations revenue was raised from 34 percent from airline charges, 46 percent from parking and concessions, and 20 percent from other sources such as rents. (Statistics). Moreover, in 2009, the airport was awarded the Airport with the Best Retail Stores showing how quality of concessions and stores can lead to increased revenue. (About MSP.). However, the MAC does not receive operations funding from state, federal, or local income, sales or property tax. (About MSP.).
For continuous airport improvements, funding primarily comes from passenger facility charges, federal grants, bond sales, and airport operations income. Before 2010, the airport underwent significant improvements. The Minnesota State Legislature decided to devote 3.2 billion to these improvements, which led the airport to be awed by many. (Airport Improvements.). However, the MAC offset some of the costs by creating a long-term partnership with the utility companies to recoup 1.04 million. (Wareham, 2009). The airport also will be receiving 5 million to improve the runways in order to meet safety and infrastructure requirements mandated by the Federal Aviation Administration. (Vomhof, Jr., 2010). The Minnesota-St. Paul International Airport needs funding from many different sources and sound financial strategy to thrive and function.
Future Plans
The MAC has created the long-term comprehensive plan to keep the airport at the forefront of technologically advanced airports. The plan will be separated in to five different phases of four-year improvement windows and cost 2.4 billon. (MAC Unveils Minneapolis-St., 2010). The plan hopes to expand the airport facilities to allow for increased traffic and passenger demand while improving energy efficiency. (Long-Term Comprehensive Plan). The first phase is expected to add sixteen new gates to the Humphrey Terminal costing nearly 400 million. (MAC Unveils Minneapolis-St., 2010). The second phase will implement modernization and expansion to the Lindbergh Terminal by building a new arrivals facility costing in the neighborhood of 900 million. (MAC Unveils Minneapolis-St., 2010). The third phase then adds ten new gates to the Humphrey Terminal, expands the G Concourse, adds a hotel, and builds a new parking facility for the Lindbergh Terminal. (MAC Unveils Minneapolis-St., 2010). The third phase should cost 735 million. (MAC Unveils Minneapolis-St., 2010). The final phase constructs crossover taxiways and area road improvements costing 225 million (MAC Unveils Minneapolis-St., 2010). The MAC plans to pay for the plan by using airport revenue bonds and federal money from the airport improvement program. (MAC Unveils Minneapolis-St., 2010).
Minnesota-St. Paul International Airport Officials will also have to consider how to implement new security technologies. The airport is waiting to see how many advanced imaging technology machines or full body scanners they will receive from the Transportation Security Administration. (Tessman, 2010.). The new security measures will require more space to implement and allow for the overflow of those waiting at security. The long-term comprehensive plan will need to be implemented to allow for the extra space requirements needed to bring the passengers through security. With the widening of the G Concourse, it seems that this will be the way the MAC plans to deal with the future passenger issue.
Tenant Issues
Tenants of the Minnesota-St. Paul International Airport have been the recipients of the increased traffic and improvements the airport has recently and continues to make. The long-term comprehensive plan calls for improvements to be paid for by airport revenue bonds which are backed by passenger facility charges, parking fees, gate and retail leases, and landing fees among the sources. (MAC Unveils Minneapolis-St., 2010). Many tenants should expect some of the costs to be passed down to each tenant and potential tenant through the raising of fees in order to continue to pay for these future improvements. Our current economic situation has already begun to affect the number of people flying in to the airport. There has been a steady decline in passengers since 2005. (Statistics.). In 2005, the airport had 532,239 operations, and in 2009 it had declined to 432, 395. (Statistics.). That significant decline surely has affected the amount of profit tenants makes from their operations at the airport. The decline along with the continuous improvements costing billions of dollars of the next 20 years should cause some concern. Each tenant and airline should expect an increase in their fees to fund the improvements.
In 2001 to 2008, air carriers were forced to shed more than 150, 000 jobs nationally. (U.S. Airlines Lost 55 Billion During Bush Era, 2009). Currently, the airport charges 2.11 per 1,000 pounds of landing weight. (Statistics.). Such landing fees can cause many airlines to shed more jobs, or choose to take their business elsewhere. Many would argue that imposing such fees on airlines and other tenants could cause the airport to take a serious economic loss making it difficult to make to pay for the improvements. However, the cost per airline per enplaned passenger is currently 5.73, which is in the lower half of the national average. (Statistics.). This could allow some room for additional monies to be raised if the airlines and tenants agree to burden the costs.
In conclusion, the Minnesota-St. Paul International Airport has made a long-term commitment to improving the airport experience for both passengers and tenants. The long-term comprehensive plan shows the commitment to maintaining the airports position as one of the leaders in airport improvement and technology. As the aviation industry begins to recover, the airlines will be able to help the bear the costs of the improvements with more passengers and revenue. That help combined with the commitment will allow the airport to continue to thrive and grow.
Runway Configuration and Airport Facilities
The Minneapolis-St. Paul International Airport has one airfield with four runways all of varying lengths. (About MSP). As shown in the diagram in Exhibit A, the longest runway is 11,006 ft X 150ft. (Airport Diagram for MSP.) These runways are needed to allow the many different types of aircraft that use and land at the airport. Usually air traffic controllers will use the longer runway for jet traffic. Jet airplanes usually need the extra runway to take off and land because of their high rate of speed needed to become airborne or extended distance to slow down after touchdown. The other runways are used for general aviation aircraft, military aircraft, and other aircraft that do not need the extra runway area. The airport contains three different approach lighting systems and twenty-six different instrument approaches that allow aircraft to see the runways at night. (Minneapolis-St Paul InternationalWorld-Chamberlain Airport). These runway facilities allow the airport to be seen during instrument flight rules and during night operations. Those facilities make sure that the airport does not close down and can operate at full capacity during many different weather and visual situations.
The Minneapolis-St. Paul International Airport contains two terminals, the Humphrey Terminal and the Lindbergh Terminal, both accessed by a light rail transit system and a complimentary shuttle service. (Light Rail Transit). The light transit system connects travelers to fifteen other destinations in the Minneapolis St. Paul area including downtown and the Mall of America. (Light Rail Transit). Trains run every seven or eight minutes during peak time periods and every ten to fifteen minutes the rest of the day. (Light Rail Transit). This wonderful system allows the laying over traveler to leave the airport and enjoy many of the attractions of Minnesota. A passenger with a few hours to pass could hop a train to the Mall of America to shop away the time. The light rail service also provides energy conservation and pollution reduction by using the trains to get to the airport instead of automobiles, which is one of the design features making the airport more attractive to environmentalists and conservationists. This is very attractive and beneficial economically and environmentally to the community as a whole. Tickets cost 2.25 for adults during rush hours and 1.75 during off-peak periods. (Light Rail Transit). Reduced fares are offered for seniors, children, and persons with special needs. (Light Rail Transit). The trains return straight to the terminals allowing passengers to reach the proper terminal without having to travel between the terminals. (Light Rail Transit). This is an attractive feature as many travelers are in a hurry to make flights and eases passenger tension making the airport an attractive place to come.
The complimentary shuttle service allows passengers to connect between terminals free of charge. (Light Rail Transit.). It is used as an alternative to light rail for passengers needing to transfer between the two terminals. This feature allows quick transition between terminals allowing all passengers to enjoy the amenities in other terminals time permitting. It also allows passengers the ability to make connecting flights in other terminals in a very short amount of time. This usually a standard feature for most international airports at this point in time because the benefit it gives to the passengers.
Financial Structure and Issues
The Minneapolis-St. Paul International Airport is a publicly owned airport that is managed and run by the Metropolitan Airports Commission (MAC). (About MSP.). The Metropolitan Airports Commission is a publicly corporation established in 1943 and provides for coordinated aviation services throughout the Twin Cities metropolitan area. (About MSP.). The MAC uses revenues from concessions, lease agreements, and airline fees to operate the airport. (About MSP.). In 2008, operations revenue was raised from 34 percent from airline charges, 46 percent from parking and concessions, and 20 percent from other sources such as rents. (Statistics). Moreover, in 2009, the airport was awarded the Airport with the Best Retail Stores showing how quality of concessions and stores can lead to increased revenue. (About MSP.). However, the MAC does not receive operations funding from state, federal, or local income, sales or property tax. (About MSP.).
For continuous airport improvements, funding primarily comes from passenger facility charges, federal grants, bond sales, and airport operations income. Before 2010, the airport underwent significant improvements. The Minnesota State Legislature decided to devote 3.2 billion to these improvements, which led the airport to be awed by many. (Airport Improvements.). However, the MAC offset some of the costs by creating a long-term partnership with the utility companies to recoup 1.04 million. (Wareham, 2009). The airport also will be receiving 5 million to improve the runways in order to meet safety and infrastructure requirements mandated by the Federal Aviation Administration. (Vomhof, Jr., 2010). The Minnesota-St. Paul International Airport needs funding from many different sources and sound financial strategy to thrive and function.
Future Plans
The MAC has created the long-term comprehensive plan to keep the airport at the forefront of technologically advanced airports. The plan will be separated in to five different phases of four-year improvement windows and cost 2.4 billon. (MAC Unveils Minneapolis-St., 2010). The plan hopes to expand the airport facilities to allow for increased traffic and passenger demand while improving energy efficiency. (Long-Term Comprehensive Plan). The first phase is expected to add sixteen new gates to the Humphrey Terminal costing nearly 400 million. (MAC Unveils Minneapolis-St., 2010). The second phase will implement modernization and expansion to the Lindbergh Terminal by building a new arrivals facility costing in the neighborhood of 900 million. (MAC Unveils Minneapolis-St., 2010). The third phase then adds ten new gates to the Humphrey Terminal, expands the G Concourse, adds a hotel, and builds a new parking facility for the Lindbergh Terminal. (MAC Unveils Minneapolis-St., 2010). The third phase should cost 735 million. (MAC Unveils Minneapolis-St., 2010). The final phase constructs crossover taxiways and area road improvements costing 225 million (MAC Unveils Minneapolis-St., 2010). The MAC plans to pay for the plan by using airport revenue bonds and federal money from the airport improvement program. (MAC Unveils Minneapolis-St., 2010).
Minnesota-St. Paul International Airport Officials will also have to consider how to implement new security technologies. The airport is waiting to see how many advanced imaging technology machines or full body scanners they will receive from the Transportation Security Administration. (Tessman, 2010.). The new security measures will require more space to implement and allow for the overflow of those waiting at security. The long-term comprehensive plan will need to be implemented to allow for the extra space requirements needed to bring the passengers through security. With the widening of the G Concourse, it seems that this will be the way the MAC plans to deal with the future passenger issue.
Tenant Issues
Tenants of the Minnesota-St. Paul International Airport have been the recipients of the increased traffic and improvements the airport has recently and continues to make. The long-term comprehensive plan calls for improvements to be paid for by airport revenue bonds which are backed by passenger facility charges, parking fees, gate and retail leases, and landing fees among the sources. (MAC Unveils Minneapolis-St., 2010). Many tenants should expect some of the costs to be passed down to each tenant and potential tenant through the raising of fees in order to continue to pay for these future improvements. Our current economic situation has already begun to affect the number of people flying in to the airport. There has been a steady decline in passengers since 2005. (Statistics.). In 2005, the airport had 532,239 operations, and in 2009 it had declined to 432, 395. (Statistics.). That significant decline surely has affected the amount of profit tenants makes from their operations at the airport. The decline along with the continuous improvements costing billions of dollars of the next 20 years should cause some concern. Each tenant and airline should expect an increase in their fees to fund the improvements.
In 2001 to 2008, air carriers were forced to shed more than 150, 000 jobs nationally. (U.S. Airlines Lost 55 Billion During Bush Era, 2009). Currently, the airport charges 2.11 per 1,000 pounds of landing weight. (Statistics.). Such landing fees can cause many airlines to shed more jobs, or choose to take their business elsewhere. Many would argue that imposing such fees on airlines and other tenants could cause the airport to take a serious economic loss making it difficult to make to pay for the improvements. However, the cost per airline per enplaned passenger is currently 5.73, which is in the lower half of the national average. (Statistics.). This could allow some room for additional monies to be raised if the airlines and tenants agree to burden the costs.
In conclusion, the Minnesota-St. Paul International Airport has made a long-term commitment to improving the airport experience for both passengers and tenants. The long-term comprehensive plan shows the commitment to maintaining the airports position as one of the leaders in airport improvement and technology. As the aviation industry begins to recover, the airlines will be able to help the bear the costs of the improvements with more passengers and revenue. That help combined with the commitment will allow the airport to continue to thrive and grow.
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