The economic impact, air traffic trends, and airport expansion plans were the topics of discussion during the 4th annual State of the Airports address presented by Rick Vacar, Houston Airport System (HAS) director of aviation. A bustling crowd of nearly 400 people showed up at the Omni Hotel in the Galleria area for the program which was hosted by the Greater Houston Partnership (GHP). The presentation touched on the strength of Houston as a business travel market. George Bush Intercontinental Airport (IAH) and William P. Hobby Airport’s (HOU) capacity cuts compared to airports of similar size are much less significant, meaning that IAH and HOU will both remain fairly insulated during airline capacity reductions due to strong market demand. Jack Drake, president of the Greenspoint District and a member of the GHP Transportation and Infrastructure Advisory committee, was also the master of ceremonies for the event. “The importance to our region of our airports was clear when 400 business and civic leaders assembled to hear Mr. Rick Vacar present the state of the airports and the state of the airline business worldwide,” said Drake. “Impacting our region’s economy and image in far reaching ways, our system is one of our city’s greatest assets, attractions, and commercial drivers as it sets records for growth, efficiency, and customer satisfaction.” Vacar outlined the strategic plan for HAS including maintaining passenger levels and current airline performance throughout 2009, developing potential new routes by existing airlines, protecting the land around the airport for future development and targeting new service opportunities. Houston continues to expand its international reach through the addition of new destinations & routes: • Emirates went to daily service in February • Singapore Airlines added Moscow and Singapore in March 2008 • Continental Airlines and British Airways both added London Heathrow service in March • Continental is now operating nonstop flights to Rio de Janeiro three times a week.

© Houston Airport System Rick Vacar reported on the state of Houston's airports to hundreds within the community

IAH Perishables CargoCenter- Highlights
Working with carriers to expand cargo service in Latin America:

• Would make Houston a major hub for perishables coming to US- key distribution center for mid-west, sourth central and western states
• HAS working with cargo airlines, flower growers and importers, Trammell Crow (who built our new 61,000 square foot perishables facility) and potential operator
• 70% of all perishable air cargo imports coming into the U.S. from Latin America go through Miami.
• More than 10% of exports bound from Latin America via MIA originate in Texas
• Benefits: Direct flights from Central and South America to bring perishables to Houston
• Direct flights from Houston to Brazil, Venezuela and other Latin American markets for Houston exports ( especially oil drilling and engineering equipment)

Land Use Highlights-- Great collaboration between HAS Planning team and City’s Planning Department and Legal team:

• FAA directive to protect past and future federal investments
• Established 3 tiers around each of the 3 airports
• restricts certain types of incompatible development within each tier
• some types permitted with noise mitigation
• ‘grandfathers’ existing homes and structures
• Conducted extensive outreach to the public, communities and business community throughout Houston area
• Unanimously passed by city council

Capital Improvement Highlights:

• $1.3 Billion Adopted Capital Improvement Program (FY2009- 2013)
• $300 Million in FY 2009 • FUNDING SOURCES: No local or state tax dollars
• Airport Equity (Airport Improvement Fund)
• Federal Airport Improvement Grants (FY2008 - $65 Million) • Airport Revenue Bonds – backed by HAS credit and revenues
• Passenger Facility Charge -New $3.00 PFC at IAH
• Challenging financial market causing lack of access to long-term and short-term borrowing is delaying projects

The presentation also touted the customer service records which show that HAS repeatedly places in the top 3 and top 10 in the world for ease of connections, courtesy airport staff, passenger satisfaction and restaurant facilities.

The presentation ended with the unveiling of the 40th anniversary logo for Bush Intercontinental Airport.

Expect a year of celebrations planned for 2009. For a look at the State of the Airports presentation, Click Here.

Copyright © 2008 - Houston Airport System