Leigh Fisher Associates assists airport managers in negotiating with the airlines serving the airport to successfully achieve management objectives within the context of long-term airport use and lease agreements. For example, in 1996, the Broward County Aviation Department (BCAD) had identified a major program of capital improvements necessary to accommodate rapidly increasing airline traffic at Fort Lauderdale-Hollywood International Airport. No significant capital improvements had been undertaken at the Airport for over a decade, and BCAD wanted to upgrade the facilities, expand parking and roadways, and add gates to accommodate service by Southwest Airlines and other low-fare carriers.

For these projects to be implemented, a majority-in-interest of the signatory airlines needed to provide approval; however, the airlines were opposed to the proposed projects, even after lengthy discussions. Leigh Fisher Associates was asked to assist BCAD in reaching agreement with the airlines on the proposed capital improvement program. Leigh Fisher Associates assisted BCAD by conducting a series of "shuttle diplomacy" negotiations in Fort Lauderdale and other cities to: (1) reach consensus on the capital program, (2) develop a plan of finance acceptable to both Broward County and the airlines, and (3) agree on a modified rate structure for what would be designated as "per use" gates.

In April 1997, the airlines and BCAD agreed on a modified capital program--the Airport Expansion Program (AEP)--which included development of a new terminal with one of three future concourses, a new 4,800-space parking garage, terminal roadway improvements, a new cargo building, and renovation of existing terminals. Only 23% of the total $230 million AEP was to be funded with airport revenue bonds; passenger facility charge revenue and federal and State grants were to be used to fund the remaining capital costs. This agreement allowed BCAD to proceed with important projects to accommodate growth while maintaining the low-cost structure of the Airport.

Client
Broward County Aviation Department

Services
-Airline Negotiations