Airport Highlights 2008 0905 - Laserfiche WebLink

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~~ ~ ~ i~A~~ i~a°r~~j ~Z®: ~~% l;~®v~ PORT OF OAKLAND AVIATION PLANNING AND DEVELOPMENT To: Airport Stakeholders From: Anne Henny and Kristi McKenney Date: July 2, 2008 Re: Postponement of Terminal A Program Implementation, Oakland International Airport (OAK) Summary. Since completing the OAK Airport Master Plan in 2006, Port staff and consultants have been planning additional passenger terminal and supporting facilities for OAK.' This planning effort assumed continued growth of passenger demand and flight activity consistent with trends at OAK over the past several decades. Due to rapidly rising fuel costs, bankruptcies, consolidation in the aviation industry and other macroeconomic factors, passenger demand at OAK is now forecasted to decline in the coming year and could remain flat for several years. Additional passenger terminal capacity will therefore be needed later than anticipated during the Master Plan process. Accordingly, the Aviation Division has recommended the Port take the business decision to defer implementation of the Terminal A Program until warranted by improved economic conditions and growing passenger demand. The Right Program at the Right Time. The planning effort to date is expected to be of great value whenever the terminal program is reinitiated. The terminal concepts were developed in consultation with OAK operations and airline representatives and provide for incremental expansion to meet real demand "just in time," in order to optimize return on investment, rather than under- or overbuilding. The concepts include a 20-gate terminal that could accommodate Southwest Airlines' current and anticipated future operations at OAK, and two 12-gate "initial increment" terminal alternatives that could accommodate a mix of carriers (with Southwest and other airlines continuing their operations in OAK's existing Terminal 1 &2 complex). Both 12- gate concepts could ultimately be expanded to the full 20-gate concept. Detailed cost estimates were prepared for all three concepts. Next Steps. Staff will close out the Terminal program on an interim basis in order to conserve capital funds for current and future needs. Tasks that have utility independent of the Terminal A program will be completed. Other Terminal A-related tasks will be completed to the extent necessary to easily and cost-effectively reinitiate them in the future. Consistent with Master Plan recommendations, proposed program components include: ^ A third passenger terminal ("Terminal A"); ^ Apron and taxiway facilities; ^ Roadway and landside support facilities; ^ A potential parking garage and customer service building; and ^ Related utilities.