Feb 11, 2026 Airport Advisory Commission

YEAH, SO I'M PLEASED TO, UM, HAVE IN PERSON THIS TIME.

UH, WE ENJOYED A, UH, DOMESTIC DEEP DIVE, IF YOU WILL, A FEW MONTHS BACK WITH KEVIN SHORE OF CAMPBELL HILL.

KEVIN SHORE IS ONE OF THE PRINCIPALS WITH THE FIRM.

THEY'RE OUT OF WASHINGTON, DC.

WE, THE AUSTIN AIRPORT, HAVE HAD THIS FIRM ONBOARD SINCE 1998, AND THEY CONTINUE TO WIN EACH RFP.

AND THANK YOU FOR THE SUPPORT ON THE RFP WHEN WE MOVE FORWARD WITH THOSE.

UH, WHAT I LIKE ABOUT THIS FIRM, CAMPBELL HILL, IS THEY NOT ONLY, UH, REPRESENT AIRPORTS, THEY ALSO REPRESENT AIRLINES.

AND, UH, THEY HAVE DEEP HUNDREDS OF YEARS OF EXPERIENCE, I GUESS, ALL COMBINED WITH UNDERSTANDING HOW AIRPORTS CAN BEST POSITION ROOT CASES TO AIRLINES.

SO LET ME LET, UM, KEVIN SHORE TAKE A DEEP DIVE THIS TIME ON NATIONAL.

KEVIN, I'LL JUST SAY THANK YOU FOR BEING HERE.

WE APPRECIATE WHAT YOU'VE DONE FOR YEARS FOR A US AND AS PARTNER TO JAMIE, I'M GONNA HAVE SOME QUESTIONS, BUT I'M GONNA WAIT TILL THE END OF THE, THE PRESENTATION FOR THOSE QUESTIONS.

BUT I WOULD ENCOURAGE ANY OF THE COMMISSIONERS IF YOU HAVE QUESTIONS ALL ALONG THE WAY.

WE, WE MIGHT MAKE THIS CONVERSATIONAL, SO PLEASE, THANK YOU.

UH, GREAT TO BE HERE.

THANK YOU SO MUCH FOR HAVING ME.

I REALLY APPRECIATE IT, ESPECIALLY SINCE IT HASN'T BEEN FREEZING IN WASHINGTON, DC FOR ABOUT TWO WEEKS NOW.

UM, SO REALLY HAPPY TO BE HERE.

UM, UH, CAMPBELL HILL AVIATION, WE, WE'VE BEEN AROUND SINCE 1994.

WE DO AIR SERVICE DEVELOPMENT WORK FOR ABOUT 45 DIFFERENT AIRPORTS THROUGHOUT THE AMERICAS AND EUROPE.

WE DO, UM, FINANCIAL, UH, REGULATORY ECONOMIC MARKETING STRATEGY WORK FOR AIRPORTS AND AIRLINES.

UH, COLLECTIVELY BETWEEN MY COLLEAGUES AND I, WE HAVE ABOUT 150 YEARS OF AIRLINE EXPERIENCE.

SO WE KNOW HOW AIRLINES MAKE THOSE DECISIONS FOR WHAT, WHAT'S WHAT ROUTE TO ADD.

UM, AGAIN, WE'RE VERY FORTUNATE THAT WE'VE BEEN WORKING HERE WITH THE AIRPORT SINCE 1998.

UM, AND, UM, THIS IS A PRESENTATION AS A FOLLOW UP TO THE, UH, PRESENTATION.

MY COLLEAGUE JAMES LUNDY, DELIVERED TO YOU IN NOVEMBER OF 2025.

AND WE WILL FOCUS ON INTERNATIONAL.

UM, I'VE BEEN DOING PERSONALLY AIR SERVICE DEVELOPMENT NOW SINCE 2001.

FOR THAT I WAS WITH AN AIRLINE CALLED TWA TRANSWORLD AIRLINES, WHICH I HOPE EVERYONE REMEMBERS.

UM, SO I'VE BEEN DOING AIR SERVICE FOR ABOUT 25 YEARS NOW FOR ABOUT 50, 60 DIFFERENT AIRPORTS AND DIFFERENT PROJECTS THROUGHOUT THE AMERICAS AND, AND ABROAD AS WELL.

UM, SO DAVE, WE'RE GONNA, WE'RE GONNA TALK A BIT ABOUT INTERNATIONAL AIR SERVICE, TALK ABOUT HOW AIRLINES MAKE DECISIONS, TALK ABOUT SOME OF THE THINGS THAT HAVE HAPPENED IN THE MARKET AND SOME OF THE THINGS THAT WE'RE PURSUING GOING FORWARD.

UM, TO START OFF, HOW DO AIRLINES MAKE DECISIONS? UM, THE GRAPHIC YOU SEE HERE IS A PRETTY GOOD REPRESENTATION OF THE DECISION PROCESS THAT THE AIRLINES GO THROUGH.

AND, UM, AGAIN, THIS PROCESS, THE GOALS TO MAXIMIZE REVENUE AND THE AIRLINE STRATEGIC PRIORITIES.

AND, AND THE FURTHER LEFT THERE, YOU SEE ALL THE DIFFERENT KINDS OF DATA THAT THE AIRLINES TAKE INTO ACCOUNT WHEN THEY MAKE ROUTE PLANNING DECISIONS.

SO LOOKING AT O AND D DATA, WHICH IS EFFECTIVELY DEMAND BETWEEN AUSTIN AND OTHER DESTINATIONS THROUGHOUT THE WORLD, UM, WHAT DOES O AND D STAND FOR? THAT'S ORIGIN AND DESTINATION DATA.

UM, HOW LARGE IS THE POPULATION? HOW FAST IS IT GROWING? HOW FAST IS IT GROWING COMPARED TO OTHER PARTS OF THE COUNTRY, PARTS OF THE WORLD? UH, LOOK AT AT OTHER DEMOGRAPHICS LIKE WEALTH, UM, AND MOST IMPORTANTLY ALSO MIGRATION.

UM, T 100 DATA LOAD FACTOR DATA.

SO HOW FULL ARE THE AIRPLANES FLYING IN AND OUT OF AUSTIN? UM, AND THEN POPULATION DEMOGRAPHICS REALLY IMPORTANT.

[00:10:01]

SO WE KNOW SINCE COVID, A LOT OF PEOPLE HAVE MOVED INTO THE AUSTIN AREA, MOVED INTO TEXAS.

SO WHERE ARE THEY MOVING FROM? ALSO, WHERE ARE PEOPLE MOVING TO BECAUSE THAT'S ANOTHER INDICATOR OF DEMAND.

AND THEY TAKE ALL THIS DIFFERENT DATA AND THEY LOOK AT IT IN THE CONTEXT OF COMPETITION.

SO WHAT'S THE COMPETITION DOING IN THE MARKET? WHAT MIGHT THE COMPETITION DO IF WE START NONSTOP SERVICE? LOOKING AT ALL THE DATA WE TALKED ABOUT AND LOOKING AT AIRLINE TRENDS.

SO WHERE ARE THE AIRLINES FINDING SUCCESS IN TERMS OF EXPANDING, UH, SERVICE? WHAT KIND OF MARKETS ARE THEY LOOKING AT IN TERMS OF EXPANDING SERVICE? SO ARE THEY LEISURE MARKETS, BUSINESS MARKETS, UH, WHAT WE CALL VFR MARKETS, VISITING FRIENDS AND RELATIVE MARKETS.

WITH ALL THAT, THEY ALSO LOOKED AT, UM, OTHER AIRLINE PROJECTED PERFORMANCE IN THE MARKET.

HOW DO OTHER AIRLINES DO IN THE MARKET IF IT'S A MARKET THEY'RE NOT IN YET.

AIRCRAFT AVAILABILITY, VERY IMPORTANT.

UM, AS WE KNOW, ALL OF THE AIRLINES ARE BEHIND ON AIRCRAFT DELIVERIES.

SO DO THEY IN FACT HAVE THE AIRCRAFT AVAILABLE TO START THE ROUTE THAT THEY'RE THINKING ABOUT? THEN ALSO SEASONALITY.

SO AS WE KNOW, CERTAIN MARKETS WORK BETTER IN THE SUMMER THAN THEY DO IN THE WINTER, AND VICE VERSA AS WELL.

SO IS THE MARKET, THEY'RE LOOKING AT A MARKET THEY CAN SERVE YEAR ROUND, OR IS IT A SPECIFIC TIME OF YEAR? SO WE JUST TALKED ABOUT THE NEW SERVICE TO GRAND CAYMAN.

SO THAT'S GONNA BE A SUMMER ONLY MARKET.

BOZEMAN AND KALISPELL, MONTANA, ASHEVILLE, NORTH CAROLINA, AND DELTA.

THOSE ARE SUMMER MARKETS.

SO THAT'S SOMETHING ELSE THE AIRLINES HAVE TO KEEP TAKE INTO ACCOUNT.

SO THEY TAKE ALL OF THAT DATA AND ALL THOSE OTHER FACTORS.

THEY COME UP WITH A LIST OF POTENTIAL NEW MARKETS AND IT, IT'S OUR JOB TO MAKE SURE THAT AUSTIN IS ALWAYS ON THAT LIST AND IS HIGH UP ON THAT LIST AS POSSIBLE.

SO ONCE THEY HAVE THE LIST OF POTENTIAL NEW MARKETS, THEY LOOK AT THE REVENUE FORECAST.

HOW DOES IT LOOK FOR AUSTIN COMPARED TO OTHER MARKETS? LOOK AT THE STATION COSTS.

HOW MUCH DOES IT COST FOR US TO OPERATE THERE? OR HOW MUCH DOES IT COST FOR US TO ADD A NEW FLIGHT THERE? OPERATIONAL VIABILITY, IS THEIR GATE SPACE AVAILABLE? IS THERE GATE SPACE FOR OUR SPECIFIC AIRPLANE TYPE? AND THEN REGULATORY ISSUES.

DO WE NEED TO APPLY FOR SLOTS AT THE OTHER DESTINATION? UM, AND, UH, DO, OR DO WE NEED TO APPLY FOR REGULATORY APPROVAL TO EVEN FLY TO THAT COUNTRY? UM, AND THEN THEY ALSO TAKE INTO ACCOUNT INCENTIVES.

SO WHAT IS THE AIRPORT WILLING TO DO TO HELP MITIGATE RISK IN THE SHORT TERM IN TERMS OF FEE WAIVERS AND MARKETING DOLLARS? WITH ALL THAT, THE, UM, NETWORK PLANNING DEPARTMENT THEN MAKES A RE A RECOMMENDATION THAT GOES BEFORE THEIR EXECUTIVE TEAM AND BOARD.

AND FROM THAT WE THEN HAVE A PLAN FOR THE ROUTES THAT THEY'RE GOING TO START SERVING.

THIS PROCESS CAN TAKE ANYWHERE FROM A FEW MONTHS, THREE TO SIX MONTHS CAN BE A LOT QUICKER FOR SOME OTHER AIRLINES.

UH, SOME AIRLINES HAVE A MORE INVOLVED PROCESS THAN OTHERS TO DETERMINE, UH, WHAT ROUTES THEY'RE GOING TO SERVE.

UM, BUT TYPICALLY THE AIR AIRLINES LIKE TO ANNOUNCE THAT SERVICE TO SIX TO 12 MONTHS OUT AND THEN, UM, ONCE THEY LOAD IT FOR SALE.

INTERCONTINENTAL, SAN ANTONIO, DALLAS, LOVEFIELD IN HOUSTON.

SO WE'VE TALKED ABOUT, UM, HOW FAST THE AIRPORT IS GROWING.

SO IF YOU LOOK FOR THE YEAR ENDED FIRST QUARTER 26, COMPARED TO CALENDAR YEAR 2019, OUR DOMESTIC CAPACITY IS ACTUALLY UP 36%.

SO WE ARE THE FIFTH FASTEST GROWING AIRPORT AMONGST ALL OF THE US LARGE AND MEDIUM HUB AIRPORTS.

BASED ON THE FAA DESIGNATION, THE ONLY ONES THAT HAVE GROWN FASTER ARE NASHVILLE, MIAMI, CHARLESTON, AND SAN JUAN.

AND AGAIN, TO PUT THIS INTO CONTEXT, AT THE OTHER END OF THE SPECTRUM HERE, YOU SEE MARKETS LIKE OAKLAND, SAN JOSE, LOS ANGELES, MILWAUKEE, THAT ARE DOWN.

UM, THE OTHER THING TO POINT OUT MOST IMPORTANTLY, IS THAT WE ARE THE TOP FOR ALL OF THE LARGE TEXAS AIRPORTS.

SO WE HAVE GROWN FASTER SINCE 2019 THAN DALLAS, THAN HOUSTON.

HOBBY, UH, NEXT SLIDE PLEASE.

SO HERE, WHAT WE'RE LOOKING AT ON THE LEFT HAND SIDE IS A COMPARISON OF THIS QUARTER, FIRST QUARTER OF 2026 TO FIRST QUARTER OF 2019.

WHAT WE'VE SEEN SINCE THEN ARE AIRLINES LIKE A MEXICO, LIKE AIR CANADA, SOUTHWEST, DELTA FRONTIER, HAVE ALL GROWN THE MOST IN TERMS OF SEATS.

WE'VE ALSO SEEN, UH, A REDUCTION BY JETBLUE AND ALLEGION IN THAT TIMEFRAME.

UM, FOR THE FIRST QUARTER, 26 VERSUS 2019, THE AUSTIN AVERAGE, THE NUMBER YOU SEE ALL THE WAY TO THE RIGHT THERE, THAT ACTUALLY SHOULD BE 46%.

THE NUMBER YOU SEE ON THE RIGHT HAND CHART, THOSE NUMBERS GOT SWAPPED.

UM, SO COMPARED TO 2019 FOR THIS QUARTER, COMPARED TO THE FIRST QUARTER, 2019, OUR SEATS, OUR SEATS IN AND OUTTA THE AIRPORT EVERY DAY ARE UP 46%.

THEN ON THE RIGHT HAND SIDE THERE, THAT'S A YEAR OVER YEAR COMPARISON.

SO IF WE LOOK YEAR OVER YEAR, THE UM, LARGEST

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PERCENTAGE INCREASE IN SEATS IS ACTUALLY BEEN FROM JETBLUE, BUT WE'VE ALSO SEEN GROWTH FROM FRONTIER, FROM DELTA, FROM AIR CANADA.

UH, WE'VE SEEN A REDUCTION FROM ALLEGION, SLIGHT REDUCTION FROM LUFTHANSA YEAR OVER YEAR FOR THE FIRST QUARTER, 26 VERSUS 25 WE'RE UP 5%.

THE ONLY NUMBERS THAT HAVE BEEN TRANSPOSED 5, 4, 6.

IT'S THE LAST NUMBER IN IN EACH SLIDE.

EVERYTHING ELSE IN EACH CHART THERE, CORRECT? YEAH.

UM, SO AGAIN, JUST TO GIVE YOU AN IDEA OF WHO'S GROWING THE MOST, UM, AND WHO'S SLIGHTLY REDUCING THEIR FOOTPRINT AT THE AIRPORT, BUT AGAIN, THE OVERALL IMPORTANT MESSAGE IS THAT YEAR OVER YEAR FOR THE QUARTER, OUR SEATS ARE STILL UP 5%.

UH, JUST A QUICK REMINDER OF HOW WELL THE AIRPORT IS DOING.

WE ARE UP TO 98 DESTINATIONS FROM 16 CARRIERS.

THESE 98 DESTINATIONS INCLUDE YEAR ROUND DESTINATIONS, WHICH YOU SEE IN BLUE THERE.

THEY INCLUDE SEASONAL DESTINATIONS, WHICH ARE THE ORANGE DOTS THAT YOU SEE THERE.

SPECIAL EVENT, UH, DESTINATIONS SUCH AS COLLEGE FOOTBALL GAMES OR, UH, MAJOR EVENTS LIKE THE KENTUCKY DERBY, FOR EXAMPLE.

THOSE ARE THE MARKETS THAT YOU SEE IN, UH, PINK THERE.

AND THEN OUR ANNOUNCED MARKETS, ONES THAT HAVE BEEN ANNOUNCED BUT NOT STARTED YET, ARE THE CIRCLES THAT YOU SEE IN GREEN.

UM, AND AGAIN, UM, AND JAMIE AL ALREADY ALLUDED TO THIS, THE NEW CAYMAN SERVICE, THE NEW DELTA MARKETS.

UH, WE ALSO HAVE, UH, VEEVA ABUS THAT WILL START SERVICE TO THE NEW MEXICO CITY AIRPORT.

UH, FELIPE ANGELIS RIGHT NOW THAT'S HELD UP IN REGULATORY APPROVALS.

AND WE'LL START AS EARLY AS JUNE 2ND.

SO FINGERS CROSSED THAT THEY'LL GET THE APPROVALS THEY NEED AND BE ABLE TO START THAT AND THEY FULLY INTEND TO START IT AT THIS TIME.

KEVIN, QUICK QUESTION.

, SAME IF I'M LOOKING FOR SPECIAL EVENTS IN RED MM-HMM .

WHAT ARE SOME EXAMPLE MARKETS? SURE, SURE.

SO, UM, SOME EXAMPLES, MADISON, WISCONSIN FOR A LARGE CONFERENCE THAT'S HAPPENING IN MADISON, WISCONSIN.

UM, THE NONSTOP SERVICE, UH, TO MONTROSE AND HAYDEN, COLORADO, THOSE ARE VERY LIMITED SEASONS.

SO WE CALL THOSE SPECIAL EVENTS EFFECTIVELY.

UM, FORT MYERS, UH, IS A VERY LIMITED SEASON, UH, GAINESVILLE.

THAT'S FOR COLLEGE FOOTBALL.

UM, LOUISVILLE, UH, AGAIN FOR THE KENTUCKY DERBY, LEXINGTON, KENTUCKY, UM, ALSO AUGUSTA, GEORGIA FOR SPECIAL EVENTS.

SURE, SURE.

AND, AND THESE NUMBER OF MARKETS CHANGE ALL THE TIME, RIGHT? AS AIRLINES LOAD NEW MARK, NEW, UH, MARKETS.

SO, AS YOU COULD SEE IN TERMS OF, UH, NONSTOP INTERNATIONAL SERVICE, THE AIRPORT'S DOING REALLY, REALLY WELL.

WE HAVE, UH, FOUR MARKETS TO CANADA NOW.

WE'VE GOT MEXICO, CARIBBEAN, CENTRAL AMERICA, EUROPE.

SO WE'RE, WE'RE DOING REALLY WELL.

ALL THE CARRIERS TR UH, FLYING TO THESE PARTS OF THE, UH, WORLD ARE GROWING SERVICE OVER TIME.

AND ALL OF THE FEEDBACK WE GET IS NOTHING BUT POSITIVE RIGHT NOW.

SO, JUST A, A QUICK RECAP OF NEW INTERNATIONAL SERVICE THAT WE'VE SEEN SINCE 2023 THROUGH 2025.

UM, I'LL GO CLOCKWORK.

SO, UM, WESTJET RESUMED THE CALGARY MARKET IN MAY OF 2023.

THERE WILL BE FLYING THAT THIS SUMMER WITH TWO FLIGHTS A WEEK, MAY THROUGH SEPTEMBER WITH SEVEN 30 SEVENS.

AIR CANADA IS NOW SERVING MONTREAL ALL YEAR ROUND.

IT STARTED AS A SEASONAL ROUTE.

IT DID SO WELL.

IT'S NOW SERVED YEAR ROUND.

THAT'S AIR CANADA'S THIRD ROUTE IN THE MARKET.

THAT STARTED MAY OF 2024.

IT'S THREE TO FOUR TIMES PER WEEK.

IT'S WITH THE, A THREE 19 NOW WILL BECOME THE 7 37 MAX EIGHT IN THE SUMMER.

SO AN EVEN BIGGER AIRPLANE.

UM, COPA WE TALKED ABOUT, UH, WELL, COPA STARTED SERVICE JULY OF 2023 WITH THE 7 3 7 800, AS JAMIE MENTIONED.

THAT'LL BE GROWING TO FIVE TIMES A WEEK OR HAS GROWN TO FIVE TIMES A WEEK, WHICH AGAIN, UH, IS, IS PRETTY QUICK SINCE THAT SERVICE STARTED TO ALREADY SEE ADDITIONAL FREQUENCIES.

AND THEN VEEVA ABUS CAME BACK TO THE MARKET IN MARCH OF 2024.

IT HAD BEEN QUITE A WHILE SINCE THEY SERVED THE MARKET.

THEY'RE NOW SERVING MONTEREY FOUR TIMES A WEEK WITH THE A THREE 20 AND THE A 3 21.

SO SEEING RELATIVELY, SO WE'RE SEEING LARGER AIRCRAFT BOTH FROM VIVA, AIRBUS AND FROM COPA AND AIR CANADA AS WELL.

SUPER QUICK QUESTION, KEVIN.

PANAMA CITY, I LEARNED THE OTHER DAY.

IS THAT A, THAT'S A MAJOR CONNECTION YES.

TO SOUTH AMERICA, RIGHT? YES.

UH, PANAMA CITY IS ONE OF THE PROBABLY MOST EFFICIENTLY RUN CONNECTING HUBS IN THE WORLD.

UM, AND WHEN I SAY THAT THERE ARE A LOT OF FLIGHTS THAT COME INTO PANAMA CITY AT THE SAME TIME, AND THEN ABOUT AN HOUR LATER, A LOT OF FLIGHTS OUT OF PANAMA CITY.

SO IT MAKES IT REALLY EASY TO GET TO MANY DESTINATIONS THROUGHOUT CENTRAL AMERICA, ESPECIALLY SOUTH AMERICA, UH, WITH VERY LITTLE TIME ON THE GROUND, WHICH IS IMPORTANT, OF COURSE.

SAVES EVERYONE TIME AND MONEY.

OF COURSE.

WHAT HAS BEEN ANNOUNCED SO FAR? UM, SO WE KNOW THAT DELTA WILL BE STARTING, UH, STARTED NONSTOP SERVICE TO CABO FROM LAST DECEMBER OF 2025 THROUGH THIS APRIL.

SO, LOOKING INTO FISCAL YEAR 26,

[00:20:01]

THAT'S DAILY WITH THE E 1 75.

UM, I TALKED ABOUT THE NEW VIVA AERO BUS SERVICE TO THE FELIPE ANGELIS, UH, AIRPORT.

UM, DELTA'S ALSO SERVING CANCUN.

THAT STARTED IN DECEMBER OF LAST YEAR.

WE'LL GO THROUGH APRIL OF THIS YEAR.

THAT'S DAILY WITH THE A THREE 20.

SO THAT'S A REALLY, UH, IMPRESSIVE AMOUNT OF CAPACITY.

AND THEN OF COURSE, THE CAYMAN SERVICE ALSO, WHICH WE'LL START IN MAY OF, UH, THIS YEAR.

SO IF WE LOOK AT INTERNATIONAL SEATS FROM AUSTIN, SO AGAIN, ANY FLIGHT THAT IS DEPARTING AUSTIN, GOING TO AN INTERNATIONAL DESTINATION, VICE VERSA.

IF WE, WE LOOK AT TOTAL INTERNATIONAL SEATS, THOSE, AS YOU COULD SEE HAVE MORE THAN DOUBLED SINCE 2019.

SO WE'RE DOING REALLY WELL IN TERMS OF OUR INTERNATIONAL GROWTH AND INTERNATIONAL CAPACITY.

AND, AND, AND JAMIE, REMIND ME, WHEN DID THOSE INTERNATIONAL GATES ON THE EAST SIDE OPEN IN THEIR CURRENT FORM? 18? SO RIGHT BEFORE, RIGHT BEFORE THEN.

SO THERE'S A LOT OF INFORMATION HERE, AND WHAT WE'RE LOOKING AT IS FOR EACH REGION OF THE WORLD, WE'RE LOOKING AT HOW BOTH O AND D PASSENGERS, AGAIN, ORIGIN, DESTINATION, PASSENGERS AND REVENUE BETWEEN AUSTIN AND THOSE REGIONS, HOW HAVE THEY GROWN SINCE, UH, 2019? AND WHAT WE SEE IS THAT FOR EVERY REGION OF THE WORLD, WE HAVE SEEN OUR O AND D PASSENGERS, OUR DEMAND AND OUR O AND D REVENUE GROW FASTER THAN THE US AVERAGE.

WE ARE OUTPACING THE US AVERAGE IN TERMS OF OUR GROWTH IN O AND D DEMAND AND REVENUE SINCE 2019.

SO FOR EUROPE, FOR EXAMPLE, OUR O AND D DEMAND IS UP 44% FOR THE YEAR END.

IN NOVEMBER 20, 25 VERSUS YEAR END, YEAR END IN NOVEMBER, 2019, OUR O AND D REVENUE IS UP 62%.

SO NOT ONLY DO WE HAVE MORE PASSENGERS THAN EVER FLYING TO EUROPE, BUT THEY'RE PAYING MORE THAN THEY EVER DID TO DO SO, WHICH IS SOMETHING THE AIRLINES REALLY LIKE TO SEE.

ON AVERAGE FOR THE US O AND D DEMAND IS ONLY UP 7%.

SINCE 2019, THE O AND D REVENUE'S UP 25%.

SO AGAIN, EUROPE, THE FAR EAST, CANADA, MEXICO, ALL OF THESE REGIONS, WE ARE OUTPERFORMING THE US AVERAGE IN SOME CASES BY SIGNIFICANT AMOUNTS.

AND THEN IF YOU LOOK AT OUR INTERNATIONAL ORIGIN AND DESTINATION TRAFFIC.

SO AGAIN, THESE ARE PEOPLE FLYING BETWEEN AUSTIN AND INTERNATIONAL DESTINATIONS.

THEY MIGHT BE FLYING NONSTOP, THEY MIGHT BE CONNECTING ALONG THE WAY.

ALL THAT WE CARE IS THAT THE TRIP BEGINS OR ENDS IN AN INTERNATIONAL, UH, DESTINATION.

AND YOU COULD SEE OUR ANNUAL INTERNATIONAL O AND D TRAFFIC IS AT AN ALL TIME HIGH.

SO WE HAVE ON AVERAGE ABOUT 2.2 MILLION ANNUAL O AND D PASSENGERS TRAVELING BETWEEN AUSTIN AND INTERNATIONAL DESTINATIONS.

THAT TRANSLATES TO AN AVERAGE OF 3000 PASSENGERS PER DAY IN EACH DIRECTION BETWEEN AUSTIN AND INTERNATIONAL DESTINATION.

NOW, AGAIN, THAT'S AN ANNUAL AVERAGE.

CERTAIN TIMES OF THE YEAR THAT'S GONNA BE HIGHER.

CERTAIN TIMES IT'S GONNA BE LOWER THAN 3000, BUT MOST IMPORTANTLY IT'S UP 44% SINCE 2019, WHICH IS ABSOLUTELY AMAZING.

KEVIN, SHOULD WE THINK ABOUT THAT AS, IS IT AN APPLES TO APPLES COMPARISON THAT WE HAVE 24 MILLION IN EMPLOYMENTS A YEAR, AND THIS IS 2 MILLION OF THE 24? IS THAT, AM I THINKING ABOUT THAT? RIGHT? WHEN WE TALK ABOUT OUR METRICS, I THINK IT'S 24 MILLION A YEAR.

WELL, THE, YEAH, TOTAL.

SO THE APPLES TO APPLES IS TWO TO 24, NOT TWO TO 11.

THE PERCENTAGE OF INTERNATIONAL, YEAH, ABOUT 5%.

THEN WHEN YOU THINK ABOUT AN IN EMPLOYMENT, UM, AN IN PLAIN PERSON IN PLAIN PASSENGER AT THE AIRPORT COULD BE AN O AND D PASSENGER THAT AGAIN, IS STARTING THEIR TRIP AT THE AIRPORT OR ENDING THEIR TRIP AT THE AIRPORT.

BUT AN EMPLOYEMENT CAN ALSO BE A CONNECTING PASSENGER.

SURE.

WHICH IS SOMEONE WHO'S COME IN FROM SOMEWHERE ELSE AND THEN CONNECTING THROUGH AUSTIN.

THANKS.

SORRY, THE O AND D NUMBER HERE HAS PLATEAUED FOR HERE.

DO YOU ANTICIPATE YOUR, ABOUT THIS MM-HMM .

BLUE SHIRT, THE O AND D NUMBER HAS PLATEAUED FOR SINCE 24.

MM-HMM.

UM, PER THIS CHART.

EVEN WITH ONE FLIGHT A WEEK, UH, AIR CANADA USING SLIGHTLY LARGER PLANES TO MONTREAL AND OTHER MARKETS, THAT WILL ALL IMPACT OUR INTERNATIONAL O AND D.

DO YOU ANTICIPATE THAT NUMBER TICKING UP AND WHAT WOULD DRIVE THAT? WE DO ANTICIPATE IT, UH, TICKING UP BASED ON, AGAIN, THE DEMOGRAPHICS IN THE REGION AND HOW THE REGION KEEPS GROWING, HOW MANY JOBS ARE BEING ADDED, UM, AS WE SEE MORE INTERNATIONAL CAPACITY, COME ON, LIKE WE TALKED ABOUT COPA, ADDING THE FIFTH FLIGHT CAME, AND

[00:25:01]

AND AGAIN, AS WE, UH, CONTINUE TO TALK TO AIRLINES, WE EXPECT ADDITIONAL, UM, ANNOUNCEMENTS AS WELL.

SO THAT WILL ALL HELP THAT LINE MOVE UP.

SO JUST BASED ON OUR O AND D DEMAND TO OTHER DESTINATIONS THROUGHOUT THE WORLD, THESE ARE THE LARGEST MARKETS RIGHT NOW WHERE WE DO NOT HAVE NONSTOP SERVICE.

SO THAT INCLUDES PARIS, SEOUL, SAN JOSE, COSTA RICA, ROME, TOKYO, HAIDA.

SO THE LIST YOU SEE HERE ARE SOME OF OUR HIGHEST PRIORITY MARKETS WHEN IT COMES TO NEW NONSTOP SERVICE.

AND ON THE NEXT SLIDE, YOU CAN SEE A MAP THAT REALLY ILLUSTRATES SOME OF THE MARKETS WE'RE FOCUSING ON.

SO THIS IS BASED ON OUR PREVIOUS LIST.

IT'S ALSO BRACED ON CURRENT AIRLINE NETWORK STRATEGY BECAUSE JUST BECAUSE AN, UH, DESTINATION IS ON THAT PREVIOUS LIST DOESN'T NECESSARILY MEAN IT MAKES SENSE FOR A CARRIER TO SERVE THAT MARKET.

UM, AND ALSO THIS IS BASED ON FEEDBACK FROM OUR ECONOMIC DEVELOPMENT STAKEHOLDERS AND TOURISM STAKEHOLDERS AS WELL.

AND IN ADDITION TO THE MARKETS YOU SEE HERE THAT WE'RE FOCUSING ON, WE'RE ALWAYS TALKING TO THE AIRLINES ABOUT LONGER SEASONS FOR THOSE THAT DON'T SERVE THE MARKET YEAR ROUND MORE DAYS OF THE WEEK FOR THOSE THAT DON'T SERVE THE MARKET DAILY AND LARGER AIRCRAFT IN MARKETS WHERE WE HAVE HIGH LOAD FACTORS AND REALLY FULL AIRCRAFT.

AND AGAIN, GIVEN THE NATURE OF THE DYNAMIC NATURE OF THE AIRLINE INDUSTRY, THIS MAP COULD EASILY CHANGE BY TOMORROW.

ON YOUR, YEAH.

WELL, ON THIS SLIDE, YOU, ON THIS SLIDE YOU'VE GOT, UH, PRIORITY MARKET AS NARITA ON THE OTHER ONE YOU HAD HEIDA.

IS THAT A DIFFERENCE WITHOUT A DISTINCTION? UH, NO.

IN, IN THE CASE OF, UM, IN, IN THIS MAP, TOKYO HEIDA IS TOTALLY FULL FOR US, UH, DEPARTURES AND ARRIVALS.

UM, THEY HAVE VERY STRICT CONTROLS ON HOW MANY FLIGHTS THEY ALLOW IN AND OUT OF HEIDA.

SO EFFECTIVELY, HEIDA IS FULL FOR ADDITIONAL US FLIGHTS.

SO HENCE WE'RE FOCUSING ON TOKYO NARITA.

GOOD QUESTION.

SO WE ALWAYS TALK A LOT ABOUT ASIA SERVICE, AND THE TRUTH IS THERE'S A LOT OF COMPETITION FOR ASIA SERVICE BOTH WITHIN THE UNITED STATES, IF YOU SEE THE MAP HERE AS WELL AS THE REST OF THE WORLD.

THE CARRIERS WE TALK TO ABOUT ASIA ARE GLOBAL IN NATURE.

SO WE ARE COMPETING WITH AIRPORTS ALL OVER THE WORLD WHO WANT THAT FIRST NONSTOP FLIGHT TO ASIA.

AND AGAIN, WHAT YOU SEE HERE IS BASED ON THE DATA, WHERE WE CAN LOOK AT WHAT ARE THE TOP UNSERVED MARKETS FROM ASIA RIGHT NOW IN THE UNITED STATES.

AND AGAIN, THESE ARE DIFFERENT KIND OF MARKETS.

THESE ARE SOME LEISURE MARKETS, SOME BUSINESS MARKETS, SOME ARE COMBINATION OF BOTH.

SOME ARE HUBS LIKE MIAMI, PHILADELPHIA, CHARLOTTE, PORTLAND.

BUT IT'S OUR DUTY TO MAKE SURE THAT THE AIRLINES UNDERSTAND WHY AUSTIN IS THAT NEXT BEST OPPORTUNITY OVER ANY OF THE OTHER AIRPORTS THAT YOU SEE HERE.

AND AGAIN, WE'RE ALSO COMPETING WITH THOSE EXISTING MARKETS IN THE UNITED STATES WHERE CARRIERS CAN ALSO ADD ADDITIONAL FLIGHTS.

SO IN SUMMARY, WHAT ARE OUR GOALS WHEN IT COMES TO INTERNATIONAL AIR SERVICE DEVELOPMENT? UH, TO MAINTAIN AND SUPPORT ALL OF OUR INCUMBENT INTERNATIONAL SERVICE, ESPECIALLY, WE WANT TO MAKE SURE NEW SERVICE SUCCESSFUL.

WE WANT WORK WITH CARRIERS TO ADD DAYS OF THE WEEK UP GAUGE TO LARGER PLANES AND OR LENGTHEN THE OPERATING SEASONS.

WE'RE PURSUING NEW INTERNATIONAL SERVICE TO DIFFERENT KINDS OF MARKETS FOR THE DIFFERENT CONSTITUENCIES WITHIN THE COMMUNITY.

SO WE'RE LOOKING AT BUSINESS MARKETS, LEISURE MARKETS.

I TALKED ABOUT VFR, VISITING FRIENDS AND RELATIVE MARKETS FROM ALL DIFFERENT CARRIER TYPES AND FROM BOTH INCUMBENT CARRIERS AND NEW CARRIERS THAT DON'T SERVE THE AIRPORT YET.

WE WORK WITH A LOT OF DIFFERENT STAKEHOLDERS WITHIN THE COMMUNITY AS WELL TO HELP UN TO TRY TO UNDERSTAND WHAT ARE THEIR NEEDS AND THE COMMUNITIES THAT THEY REPRESENT, WHERE DO THEY NEED NONSTOP SERVICE, WHERE DO THEY SEE GROWTH OVER THE NEXT THREE, FIVE YEARS? AND ALWAYS MORE IMPORTANT, MAKE SURE WE'RE MAINTAINING AUSTIN'S POSITION AS THAT AIRPORT OF CHOICE IN CENTRAL TEXAS FOR INTERNATIONAL SERVICE.

AND AGAIN, WORKING WITH ALL CARRIER TYPES FOR NEW SERVICE.

BUT MOST IMPORTANT IN THE YELLOW AND THE BOTTOM THERE IS MAKE SURE WE SUPPORT THAT AUSTIN NONSTOP SERVICE.

THE MORE WE CAN SHOW THAT PASSENGERS ARE CHOOSING AUSTIN AND USING AUSTIN WITHIN CENTRAL TEXAS, THE BETTER CHANCE WE HAVE FOR MORE SERVICE.

QUICKLY EDUCATE US.

I KNOW THAT YOU ALL NEED TO GO SOON, BUT, UM, OKAY.

FIVE MINUTES.

FIVE MINUTES OR LESS.

I'M GONNA PAUSE.

ARE THERE QUESTIONS FROM THE GROUP? I'LL SAVE MINE FOR LATER.

ARE THERE QUESTIONS FROM THE SCREEN OR IN THE ROOM? NEXT FEW MINUTES FOR JAMIE AND KEVIN COLE?

[00:30:06]

THANK YOU, MR. CHAIR.

AND I APOLOGIZE FOR NOT BEING IN PERSON.

SERENDIPITOUSLY, I'M CALLING FROM THE AIRPORT TODAY.

OH.

UM, IF WE MOVE BACK UP A BIT TO YOUR GLOBAL, UH, GLOBAL MAP MM-HMM .

WITH, WITH US AVERAGES DOWN IN CANADA, OUR EAST AUSTRALIA, BUT OUR AVERAGES AT AUSTIN CONTINUING TO GO UP.

UM, THE ONE THAT IS, IS THAT I THINK BACK TO ONE MORE.

MAYBE NOT.

APPRECIATE YOU.

THAT'S A GLOBAL MARKET.

THAT IS.

NO, NO.

COLE, YOU TALKING ABOUT THE, THE ONE WITH THE PERCENTAGES OF AUSTIN VERSUS THE UNITED STATES? THOSE TRENDS.

SO I, I SEE SOME US SUPPOSE TRENDS, THE US AVERAGES ARE, ARE TRENDING DOWN.

YEAR OVER YEAR.

MAYBE NOT, MAYBE THAT'S JUST ME TRYING TO FILL IN BLANKS MYSELF.

UH, BUT I GET NERVOUS WHEN I SEE A, A US NUMBER AND THEN AN OUTLIER THAT'S, THAT IS US.

IS IS THE OVER PERFORMANCE IN RELATION TO THOSE, THOSE AIRPORTS YOU, YOU MENTIONED EARLIER, JUST TRENDING DOWN AND, AND WE CONTINUE TO GROW INSTEAD OF POPULATION GROWTH HERE IN AUSTIN.

CONCEPT IS HELPING US.

COULD YOU UNPACK WHY WE ARE BUCKING A US AVERAGE SO SIGNIFICANTLY, ESPECIALLY IN THOSE MARKETS WITH THE US AVERAGE IS TRENDING DOWN.

UM, YOU KNOW, AUSTIN, I I THINK IF YOU LOOK OVER THE PAST FIVE, 10 YEARS, ALWAYS HAS, AUSTIN HAS ALWAYS OUTPERFORMED THE REST OF THE COUNTRY IN TERMS OF POPULATION GROWTH, JOB GROWTH, COMPANIES RELOCATING HERE.

UM, ALSO AS A TOURISM DESTINATION, IT'S REALLY OUTPERFORMED A LOT OF OTHER PARTS OF THE COUNTRY.

SO WHAT YOU'RE SEEING HERE IS REALLY JUST A REFLECTION OF HOW WELL THE ECONOMY'S BEEN DOING AND HOW MUCH COMPANIES WANT TO MOVE HERE, WANNA RELOCATE PEOPLE HERE.

AND ALSO AUSTIN'S BECOME, I MEAN, HAS BEEN, BUT IS EVEN MORE NOW A GLOBAL TOURISM BRAND.

SO WE'RE SEEING MORE AND MORE PEOPLE FROM ALL OVER THE WORLD COMING TO AUSTIN AND VISITING HERE.

SO THAT'S REALLY, I THINK, WHAT YOU'RE SEEING HERE.

UM, AND WHEN I LOOK AT THESE NUMBERS, IT'S TRULY A REFLECTION OF THE DEMOGRAPHICS, A REFLECTION OF THE BUSINESS COMMUNITY, A REFLECTION OF HOW, UH, AN OF AN ATTRACTION ATTRACTIVE DESTINATION AUSTIN IS FOR BOTH BUSINESS AND LEISURE.

NEXT, THANK YOU SO MUCH.

I'S HOLD FOLLOW UP BECAUSE I KNOW WE'RE ON A, A TIGHT SCHEDULE.

SO, UM, THANK YOU SO MUCH KEVIN AND JAMIE FOR THE PRESENTATION.

UM, I'M GONNA ZOOM INTO THE ASIAN MARKET 'CAUSE UM, I'VE BEEN PERSONALLY INTERESTED IN WORKING ON BRING, OPENING THE FIRST, UH, DIRECT FLIGHT TO ASIAN MARKET BECAUSE IT'S VERY CRITICAL AND DRASTICALLY WITH, UH, CONNECTED TO HUGE MARKET RIGHT NOW.

UM, SO, UH, IF YOU, I ASSUME THAT YOU HAVE BEEN IN THE ACTIVE CONVERSATION WITH THE ASIAN AIRLINES, WHOEVER YOU'RE NEGOTIATING WITH, RIGHT? YES.

WHAT ARE THE TOP THREE ADVANTAGES AND THE DISADVANTAGES THEY THINK OF US? UM, IN TERMS OF THE ADVANTAGES, AGAIN, WE HAVE A, UH, A SIGNIFICANT AMOUNT OF DEMAND BETWEEN ALL OF CENTRAL TEXAS AND ASIA RIGHT NOW.

AND THAT DEMAND KEEPS TO GROWING, WHICH IS VITAL TO BE ABLE TO SHOW THE AIRLINES.

SO EVERY TIME WE TALK TO AN AIRLINE, WE CAN SHOW THEM THAT NOT ONLY IS THERE A SIGNIFICANT AMOUNT OF DEMAND, BUT THAT DEMAND KEEPS GROWING DEMAND TO TEXAS FROM TEXAS DEMAND FROM CENTRAL TEXAS TO ASIA.

WE'RE NOT COMPETING WITH DALLAS AND HOUSTON OR ARE WE ALSO NO, NO.

AND ALSO ANOTHER ADVANTAGE IS NOT ONLY JUST THE, UM, CORPORATE GROWTH HERE IN AUSTIN AND THE NUMBER OF COMPANIES MOVING THEIR OFFICES AND PEOPLE HERE, BUT ALSO THAT GROWTH WITHIN THE ASIAN COMMUNITY.

MM-HMM.

AND IT'S ASTOUNDING TO BE ABLE TO SHOW HOW MANY D DIFFERENT ASIAN COMPANIES ARE, UH, LOCATING HERE, EXPANDING HERE, AND HOW MUCH THE POPULATION IS GROWTH GROWING ALSO.

UH, 'CAUSE THE GROWTH IS ABSOLUTELY SPECTACULAR.

UM, AND AGAIN, WE ARE LOOKING AT, UM, LOOKING AT THAT, HOW THAT COMPARES TO OTHER MARKETS THAT DON'T HAVE NONSTOP SERVICE AND WE'RE DEFINITELY STANDING OUT.

UM, AND, UM, IF THE OTHER, ONE OF THE OTHER ADVANTAGES WE HAVE IS FROM AN AIR SERVICE PERSPECTIVE, IT'S GOOD TO BE ABLE TO SHOW SUCCESS MM-HMM .

AND GOOD TO BE ABLE TO SHOW AN AIRLINE THAT IF YOU COME TO THIS MARKET, YOU WILL BE SUCCESSFUL AND YOU WILL GET SUPPORT FROM THROUGHOUT THE COMMUNITY.

AIRLINES LIKE TO SEE WHAT OTHER AIRLINES ARE DOING, AND IF THEY SEE OTHER AIRLINES BEING SUCCESSFUL, IT GIVES THEM A LITTLE BIT MORE CONFIDENCE TO GO IN AND TRY THAT MARKET AS WELL.

AND WE CAN SHOW THAT FOR EVERY NEW INTERNATIONAL MARKET WE'VE GOTTEN, IT'S DONE WELL.

AND AS I'VE ALLUDED TO BEFORE, A NUMBER OF CARRIERS WHO HAVE JUST STARTED WITHIN THE PAST FEW YEARS OR ALREADY INCREASING THEIR SERVICE, YOU KNOW,

[00:35:01]

UM, DISADVANTAGE, UH, DISADVANTAGE RIGHT NOW IS AIRCRAFT AVAILABILITY.

UM, ALL AIRLINES ARE BEHIND ON AIRCRAFT DELIVERIES.

SO AIRLINES THAT WANNA START NEW SERVICE, A LOT OF THEM DON'T HAVE THE, UH, AIRCRAFT AVAILABLE RIGHT NOW TO START THAT NEW SERVICE.

UM, OTHER DISADVANTAGES? UM, YOU KNOW, ONE, I DON'T KNOW THAT IT'S A DISADVANTAGE.

YOU KNOW, IT'S NOT A SHORT FLIGHT, SO TO SERVE ANYWHERE IN THE UNITED STATES, BUT SERVE ANYWHERE IN MIDDLE OF THE UNITED STATES TO THE EAST, IT'S A LONGER FLIGHT, UH, WHICH JUST MEANS, YOU KNOW, MORE FUEL EXPENSE, MORE CREW EXPENSE.

SO WE HAVE HIGHER HURDLES TO JUMP OVER THAN LET'S SAY A MARKET ON THE WEST COAST, IF YOU WILL.

UM, AND AGAIN, WE, WE DON'T HAVE THAT NONSTOP SERVICE YET.

SO AS WE CAN DO EVERYTHING IN OUR POWER TO SHOW AN AIRLINE WHAT A GREAT OPPORTUNITY IS, UM, STILL SOMEONE HAS TO BE THE FIRST ONE TO TAKE THAT RISK, RIGHT.

SO THAT, THAT THAT'S IN ANY MARKET, THAT'S GONNA BE SOMETHING THAT'S A BIT MORE OF A HURDLE.

FOLLOW UP ON THAT, UH, DISADVANTAGE.

UM, ARE WE IN CONVERSATION WITH MULTIPLE ASIAN MARKET? UH, YES.

RIGHT NOW.

CAN YOU DISCLOSE, UH, WHICH ONES OR THE I CAN'T PROGRESS, UNFORTUNATELY I CAN'T.

UM, BUT MY ASSUMPTION IS YOU CAN PROBABLY PRETTY EASILY FIGURE OUT WHO THEY ARE.

IF YOU GO LOOK BACK AT ONE OF THE MAPS, IS IT HANDFUL OR LIKE A COUPLE ? 'CAUSE I'VE HEARD MORE THAN, MORE THAN ONE, LESS THAN 10 BECAUSE I'VE HEARD COMP, UH, COUNTRIES THAT'S NOT ON THAT LIST WHO ARE INTERESTED.

UM, THAT WHAT NOT ON THE LIST OF THE, YOU KNOW, THE 10, THE LIST OF THE 10 COUNTRIES MM-HMM .

OF THE GAV MARKET MM-HMM .

BUT THEY ARE INTERESTED, THEY'RE ASIAN COUNTRIES.

I WONDER IF, UH, THOSE CONVERSATION OR OPPORTUNITY HAS BEEN PURSUED OR NOT.

UH, WE WE'RE PURSUING, UM, A NUMBER OF DIFFERENT CARRIERS RIGHT NOW.

AND THE OTHER THING TO KEEP IN MIND IS THAT, UM, WE WANT TO PURSUE CARRIERS THAT CONNECT PEOPLE ALL THROUGHOUT ASIA AS WELL.

SO THAT'S A, A VERY, VERY HIGH PRIORITY ALSO.

SO I WANT TO APOLOGIZE TO THE GROUP.

I KNOW THAT JAMIE AND KEVIN HAVE AN OBLIGATION THAT THEY NEED TO SLIP OUT TO, LET ME ASK THIS QUESTION ON BEHALF OF OUR COMMISSIONERS BOTH PRESENT AND ON THE SCREEN IF WE HAVE QUESTIONS OR FOLLOW UP INTERESTS.

JAMIE, WOULD IT BE OKAY IF WE ROUTED THOSE IN A JUDICIOUS AND CAREFUL WAY, BUT THOUGHTFULLY TO YOU? YOU BET.

PLEASE DO.

THAT WAY WE CAN GO A LITTLE DEEPER ON A FEW OF THESE THINGS.

HAVE A GOOD AFTERNOON.

SORRY TEAM TO, TO, TO BE BRIEF ON THE BACK END THERE, BUT I, BUT I MEAN, WHAT I SAY WHEN, LET'S, LET'S WORK THROUGH JASON, AND I'M HAPPY TO BE ALONGSIDE YOU, JASON, IN GETTING UP FOLLOW UP.

LIKE ONE THING I'D BE INTERESTED TO LEARN MORE ABOUT, UH, AND I'M SPEAKING NOT TO JAMIE AND KEVIN, BUT JUST TO THE WHOLE GROUP, IS WE HAVE A GREAT, UM, EXAMPLE OF SUCCESS IN BRITISH AIRWAYS AND PURSUING THEM AND ULTIMATELY LANDING THEM AND THEN ULTIMATELY GETTING THEM TO INCREASE NOW TWICE DAILY SERVICE, RIGHT? AND THE ORIGIN STORY OF THAT AND, AND WHAT WE CAN LEARN FROM THAT AS INDIVIDUALS IN THE COMMUNITY AND THE REGION WHO CARE ABOUT MORE OF THAT.

THAT WOULD BE AN INTERESTING THING, I THINK, TO LEARN A LITTLE BIT MORE JUST THAT STORY.

BUT, UM, OPEN INVITATION TO ANYBODY ON THE SCREEN OR IN THE ROOM TO FOLLOW UP ON QUESTIONS THAT YOU MIGHT HAVE THERE.

AND THANK YOU, UM, FOR THE QUESTIONS THAT WE'RE GONNA BE ABLE TO ASK.

JUST, JUST TO, ON THAT NOTE AS, AS KIND OF SOME ADDITIONAL QUESTIONS OR THINGS TO FOLLOW UP ON, AND I THINK WE HIT ON THIS A LITTLE BIT, BUT REALLY, YOU KNOW, HOW CAN WE BETTER POSITION OURSELVES TO BE MOST COMPETITIVE FOR SOME OF THOSE DIRECT FLIGHTS TO, YOU KNOW, WE LOOKED AT SOME OF THE EUROPEAN DESTINATIONS, WE OBVIOUSLY TALKED ABOUT THE ASIAN MARKETS.

ONE THING I'M INTERESTED IN IS, YOU KNOW, ARE THERE SOME THINGS, WORDS OF ADVICE FOR HOW WE CAN BE MORE COMPETITIVE, MOST COMPETITIVE? IT SOUNDS LIKE WE'RE DOING A LOT OF GREAT THINGS ALREADY, BUT JUST AS WE'RE THINKING ABOUT HAVING THOSE CONVERSATIONS IN OUR COMMUNITY WITH OUR CHAMBERS, WITH OUR BUSINESS LEADERS, YOU KNOW, ARE THERE SOME OTHER THINGS THAT WE SHOULD BE THINKING ABOUT TO MAKE SURE WE'RE MOST COMPETITIVE? JUST SOMETHING I'D BE INTERESTED IN AS WELL.

MIKE, JUST TO, TO BRAINSTORM ON THAT FOR A SECOND, I'M, YOU'RE PROBABLY SITTING IN YOUR DAY JOB OFFICE IN KYLE, TEXAS, RIGHT? YEP.

IS, WHAT, WHAT DO YOU NEED MORE OF BY WAY OF SUPPORT IN ORDER TO ACCOMPLISH THESE GOALS? AND ONE OF THEM PROBABLY IS REGIONAL COLLABORATION BETWEEN NOT JUST, YOU KNOW, OA DOES A GREAT JOB OF REPRESENTING THE REGION.

AND, UM, IT'S REALLY A REGION THAT WE'RE WORKING ON BEHALF OF, NOT JUST THE CITY OF AUSTIN.

AND SO MAYBE A, A FOLLOW UP QUESTION FOR JAMIE

[00:40:01]

I KNOW THAT OA AND FOR EXAMPLE, THE GREATER ASIAN CHAMBER AND OTHERS ARE INVOLVED, THE, THE, THE, THE OTHER CHAMBER, THE, THE PRIMARY CHAMBER IN AUSTIN AS WELL ARE INVOLVED.

BUT I WONDER HOW MUCH SOME OF THE OTHER REGIONAL ECONOMIC DEVELOPMENT ORGANIZATIONS AND CHAMBERS AND ELECTEDS AND OTHERS ARE INVOLVED TOO, THAT MAY BE A NEED OR A WANT, YOU KNOW, THAT IS RELEVANT.

KYLE, TEXAS ALSO, RIGHT.

[Items 2 & 3]

IF IT MEETS WITH EVERYBODY'S APPROVAL.

LET'S GO BACK UP THE AGENDA TO ITEM NUMBER TWO.

AND, UH, MR. THOMAS? YES.

UH, UH, COMMISSIONERS, UH, RAJIV THOMAS, UH, CHIEF FINANCIAL OFFICER, UH, FOR THE, UH, AUSTIN AVIATION.

SO WHAT I WANTED TO KIND OF GO OVER IS I, I ALSO HAVE KEN INE HERE WITH FRASCA AND ASSOCIATES.

UH, HE IS OUR FINANCIAL ADVISOR ON THIS BOND DEAL THAT WE ARE DOING IN THE 2 20 26, UH, SERIES BONDS.

UH, DO YOU MIND JUST KIND OF INTRODUCE YOURSELF AND WE'LL GO THROUGH THAT? SURE.

GOOD AFTERNOON.

UH, KEN INE, I'M A PRINCIPAL AND CO-FOUNDER OF RAC ASSOCIATES.

WE'RE, UH, ADVISE ON BOND TRANSACTIONS FOR DIFFERENT MUNICIPALITIES, BUT HAVE A SPECIALTY IN PARTICULAR WITH AIRPORT FINANCE.

I'VE ADVISED ON, UH, APPROXIMATELY 130, UH, BILLION OF, OF, OF AIRPORT DEBT OVER THE YEARS.

AND, UM, WORK AT ABOUT, UH, 50 55 AIRPORTS AROUND THE COUNTRY.

I'VE BEEN VERY HONORED TO WORK WITH, WITH AUSTIN AND THE CITY OF AUSTIN.

THIS IS ACTUALLY OUR FIRST BOND TRANSACTION WORKING WITH THE CITY OF AUSTIN AND WE APPRECIATE THAT VERY MUCH.

NICE TO, UH, TO, TO MEET YOU KEN.

RAJIV, IS IT YOUR DESIRE TO KIND OF MARRY TWO AND THREE AND WE, WE OR WE GO? YEAH.

TWO FIRST I THINK.

UH, YEAH, I'D LIKE TO GO WITH, UH, I THINK THIS IS ITEM NUMBER THREE IF I'M NOT MISTAKEN.

SO LET'S GO WITH, BECAUSE HE'S GOT A FLIGHT BACK TO NEW YORK TO CATCH, SO, GREAT.

LET'S GO TO THREE.

SO THANKS.

YOU DON'T MIND.

LET'S, UH, LET'S DO THIS ONE.

ALRIGHT.

SO THIS IS, THIS SLIDE HERE JUST JUST SHOWS THE OUTSTANDING DEBT THAT WE HAVE CURRENTLY, AND THIS IS OUR GARB BONDS OR THE GENERAL AIRPORT REVENUE BONDS.

AND AS YOU KNOW, WITH THE A DP PROGRAM AND THE SIZE OF THE A DP PROGRAM, WHAT WE ARE PLANNING TO DO WITH THE SERIES 2026 BONDS IS TO FUND THE PORTIONS OF THE A DP PROGRAM.

SO WHAT WE ARE GOING TO FUND IN THIS ISSUANCE IS FISCALLY AT 26 EXPECTED EXPENDITURES AND ALSO FISCALLY AT 27 EXPECTED CASH EXPENDITURES FOR THE PROJECTS OR THE A DP PROJECTS THAT WE ARE DOING.

SO THIS IS THE, THE PROJECTED FISCAL YEAR DEBT SERVICE WITH THE 2026 SERIES IN IT.

SO YOU CAN SEE, UM, UH, THE EXISTING DEBT SERVICE IN GREEN AND WITH THE 2026 SERIES.

AND I'LL GIVE YOU MORE DETAIL ON THE AMOUNT OF THE 2026 SERIES, WHAT THAT CURVE KIND OF LOOKS LIKE ON, ON AN ANNUAL BASIS.

SO HERE IS WHAT THE BREAKDOWN OF THIS ISSUANCE IS GONNA BE.

SO WE ARE GOING TO BE IN THE MARKET IN APRIL.

UH, RIGHT NOW WHAT WE ARE DOING IS PUTTING TOGETHER THE REPORT OF THE AIRPORT CONSULTANT.

WE ARE GOING THROUGH THE PRELIMINARY OFFICIAL STATEMENTS AND WE JUST IN THE LAST FEW WEEKS, KINDA SIZED WHAT THE BOND NEEDS TO BE.

SO YOU CAN SEE, LIKE, THINK ABOUT FOUR ROWS DOWN THE PROJECT FUND DEPOSIT.

SO THAT IS THAT $953 BILLION IS WHAT WE ARE FUNDING IN TERMS OF PROJECT EXPENDITURES IN THE NEXT TWO YEARS.

THE POWER AMOUNT, WHICH IS THAT THE ONE THAT YOU SEE UP TOP, WHICH IS ABOUT $1.16 BILLION.

THAT INCLUDES THINGS LIKE CAPITALIZED INTEREST, ALSO WHAT NEEDS TO BE FUNDED WITH THE DEBT SERVICE RESERVE FUND AND THE COST OF ISSUANCE.

SO THAT'S WHY YOU'RE SAYING THE $1.16 BILLION RIGHT THERE.

AND THIS ISSUANCE, AND THIS IS BASED ON ESTIMATES CURRENTLY, UM, WE ARE LOOKING AT AN ALL IN TIC BASED ON CURRENT MARKETS, HOPEFULLY ABOUT 4.9, MAYBE LOWER.

AND ON THE RIGHT SIDE IT JUST SHOWS WHAT WILL IT DO IN TERMS OF THE COST IF YOU ADD 50 BASIS POINTS WHEN WE GO TO MARKET, IF THERE IS SOME VOLATILE PAIN IN THE MARKET AND IT JUST SHOWS, YOU KNOW, OVERALL DEBT SERVICE, UH, THE THIRD ROW FROM THE BOTTOM OVER THE 30 YEAR LIFE ON BOTH SCENARIOS.

THERE IS A COUPLE OF PROJECTS THAT WE ARE STILL KIND OF GETTING AN ESTIMATE ON, WHICH IS OUR CENTRAL UTILITY PLAN AND UICW, WHICH IS OUR UTILITY INFRASTRUCTURE CAMPUS-WIDE.

SO THIS IS OUR PLAN OF FINANCE FOR THE, THE CAPITAL PROJECTS.

WE PUT 5.5 BILLION AS THE OVERALL COST OF THE PROJECT HERE IS JUST A ROUND NUMBER BECAUSE

[00:45:01]

SO WE JUST ROUNDED UP THAT NUMBER TO $5.5 BILLION AT THE OVERALL.

AND THIS HAS ESCALATED DOLLARS UP TO 20 30, 20 31.

UH, SO WHAT WE ARE SAYING IS IN THIS SERIES, WE ARE GONNA FUND $953 BILLION THROUGH THE 20 26 6 SERIES.

FUTURE BOUND ASSURANCES WILL BE ABOUT THREE AND A HALF BILLION DOLLARS.

UH, WE DON'T KNOW THE TIMING OF THAT.

AND AS WE GO THROUGH THE CASH EXPENDITURES, IT COULD BE 27, IT COULD GET PUSHED OUT TO 28, 29, 30 BASED ON HOW THE PROJECTS ARE GOING.

AND THE CASH IS GONNA FUND ABOUT 645 MILLION, WHICH IS THE TOP LINE RIGHT THERE.

GRANTS, WE, THESE ARE GRANTS THAT WE HAVE ALREADY RECEIVED AND WE PUT IN ABOUT $15 MILLION FOR SOME FUTURE GRANTS THAT WE MIGHT RECEIVE IN FISCAL YEAR 26 OR 27.

AND IT'S A CONSERVATIVE ESTIMATE THAT THAT, SO THAT PUTS US TO ABOUT $204 MILLION.

WE ARE GONNA USE PFC PAGOS OF 142 MILLION.

AND THEN, UH, THERE IS, WE RECEIVED THAT 108 MILLION IN FROM THE FAA FOR THE, UH, THE, THE LETTER OF INTENT.

UH, I THINK IF YOU CAN RECALL THAT THAT ONE WE ARE GOING TO FUND 12 MILLION OF THAT IS GONNA COME FROM PFC PAY PAYGO BECAUSE THE FIRST PAYMENT FROM THE FAA DOESN'T HAPPEN TILL THE BEGINNING OF 2027.

SO WE FIGURED WE DON'T NEED TO PUT THAT ON THE DEBT SERVICE.

WE WILL LEAVE THAT OUTSIDE THE DEBT SERVICE AND NOT INCUR THE INTEREST RATES ON IT.

SO THAT'S WHY THAT 12 MILLION IS KIND OF SEPARATED OUT OUT THERE.

AND THEN THE REST OF THE, OR IT $96 MILLION IN THE LOI WILL BE FUNDED WITH THE, THE BONDS.

AND ONE OF OUR PLANS HERE IS BECAUSE WE WILL RECEIVE THOSE FUNDS WITHIN NINE YEARS, WE WANT TO PAY OFF THE INTEREST RELATED TO THAT QUICKLY.

SO THAT IS ALSO KIND OF FIGURED INTO THAT DEBT SERVICE CURVE THAT YOU'RE SEEING HERE.

SO THIS IS JUST PROJECTED OUT, AND THIS IS SO SORT OF A DRAFT ESTIMATES, YOU KNOW, WE ARE STILL FINALIZING THIS WITH THE, WITH THE CONSULTANT ON WHAT THE DEBT SERVICE COVERAGE RATIOS WILL LOOK LIKE GOING FORWARD, EVEN WITH THE 2026 ISSUANCE.

AND, UH, SO THIS IS, AND ALSO FUTURE ISSUANCES TOO.

SO YOU CAN SEE IN 2031 IS REALLY WHEN IT STARTS TO DROP BELOW TWO, UH, 2.0.

AND OUR, OUR REQUIREMENT IS THAT WE HAVE TO MEET 1.25 HOURS OUR DEBT SERVICE RISK COVERAGE RATIO.

THAT'S SOME CONSEQUENTIAL WORK.

AND THIS IS SOME OF THE DATES, UH, UH, CRITICAL DATES, UH, REGARDING THIS DEBT ISSUANCES.

UH, SO WE ARE GOING TO COUNCIL AND THE RCA IS COMING THROUGH OUR TREASURY DEPARTMENT, SO THAT'LL BE HAPPENING ON FEBRUARY 26TH.

AND THEN WE ARE HAVING RATING AGENCY MEETINGS THE WEEK OF, UH, MARCH 2ND, AND ACTUALLY ON MARCH 9TH NOW IS WHAT WE, WE'VE KIND OF SCHEDULED IT AND THEN WE EXPECT TO RECEIVE RATINGS AND THE POST, THE PRELIMINARY OFFICIAL STATEMENT ON MARCH 27, AND THE INTENT IS TO PRICE THE BONDS ON APRIL 14TH.

SO WE CHOSE THAT DATE.

UH, LOOKING AT, UH, SOME OF THE, UH, ECONOMIC, UH, INFORMATION THAT MAY, MAY BE COMING OUT, YOU KNOW, RELATED TO CPI OR OTHER BLS DATA THAT MIGHT AFFECT THE VOLATILITY IN THE MARKET.

SO WE FEEL LIKE RIGHT NOW, APRIL 14TH LOOKS LIKE A GOOD DATE, UH, TO PRICE THE BONDS, UH, TO PROVIDE SOME STABILITY.

AND, UH, THE CLOSING WILL HAPPEN ON APRIL 29TH.

SO IF YOU HAVE ANY QUESTIONS, PLEASE LET ME KNOW.

, THESE NEXT FEW MONTHS WORK.

ANY QUESTIONS WHILE WE HAVE KEN AND OR FOR MR. THOMAS ON THE SCREEN? ANYBODY? NOTHING ON THE SCREEN? ANYTHING IN THE ROOM? KEN, WHERE ARE YOU FLYING BACK TO? FLYING BACK? NONE OF OUR BUSINESS.

I'M JUST CURIOUS.

I, UH, FLYING BACK TO NEW YORK.

AND I, I ALSO COMPLETELY UNDERSTAND THAT, UH, BONDS AREN'T AS EXCITING AS THEIR SERVICE DEVELOPMENT, SO THEY, THEY MAKE, THEY MAKE THIS WHOLE THING HAPPEN.

SO THANK YOU.

ANY COMMENTS, KEN, FROM YOU BEFORE YOU GET GOING? NO, I WANTED TO PRCA AND ASSOCIATES, YOU KNOW, FOR THE WONDERFUL WORK THEY HAVE DONE SO FAR WITH US AND PUTTING TOGETHER THE PRESENTATIONS AND HELPING US WITH ALL THE REPORTS.

THINK THERE'LL BE A LOT OF INTEREST.

THANK YOU VERY MUCH.

IS THIS THE MOST INTERESTING THING YOU'RE WORKING ON IN THE COUNTRY RIGHT NOW? IT IS, YEAH.

WHAT'S SECOND PLACE? OH, UH, I DON'T KNOW IF THEY, IT'S, IT'S ALL DISTANT SECONDS, SO I CAN'T EVEN THINK OF SOMETHING, BUT WILL YOU GIVE US SOMETHING, KEN? WELL, WE JUST, WE, WE JUST PRICED A NEW YORK PORT AUTHORITY DEAL LAST WEEK.

WE HAVE A CHICAGO DEAL THAT'S PRICING NEXT WEEK.

UH, SO IT'S AN ACTIVE MARKET AND WE THINK, UH, THE MARKET FOR YOUR BONDS, UH, WILL BE, WILL, WILL BE VERY GOOD.

[00:50:01]

AND YOU'VE GOT, YOU'VE GOT A GREAT, GREAT STORY FOR THE BOND MARKET.

WHAT'S THE MOST, JUST BEFORE YOU GO, WHAT'S THE MOST ANALOGOUS BOND OFFERING THAT YOU CAN THINK OF IN THE AIRPORT SPACE OVER THESE LAST YEARS TO WHAT WE'RE DOING HERE AT A US THIS SPRING? SO, SO THERE'S, THERE'S PROBABLY, UH, UH, TWO OR THREE AIRPORTS.

THE ONE THAT KIND OF COMES IMMEDIATELY TO MIND.

THE SAN DIEGO AIRPORT.

UM, THEY, OVER THE LAST, UH, THREE, FOUR YEARS, UH, FUNDED A NEW TERMINAL ONE DEVELOPMENT, SO A SIMILAR PROJECT TO WHAT YOU'RE DOING HERE AT AUSTIN.

UM, AND THEY ISSUED SEVERAL BILLION OF, OF DOLLARS OF BONDS AND, UH, BASICALLY TRANSFORMED BOTH THE AIRPORT PHYSICALLY AND ALSO THEIR FINANCIAL, UH, PORTFOLIO WITH THAT, UH, THAT ADDITIONAL DEBT.

BUT IT WAS, UH, ENDED UP BEING VERY WELL RECEIVED.

AND AS WE GOT TOWARDS THE END OF THE PROGRAM WITH THE, UH, LAST, UH, UH, BOND ISSUANCE, THEY ACTUALLY WERE, WERE, WERE UPGRADED BY ONE OF THE RATING AGENCIES DESPITE ALL OF THE ADDITIONAL DEBT.

AND, YOU KNOW, WE THINK, UM, YOU KNOW, IT, IT'S NOT SOMETHING THAT WE HAVE, WE, WE WANNA MANAGE EXPECTATIONS HERE.

YOU, YOU HAVE VERY GOOD STRONG RATINGS CURRENTLY, BUT YOU ALSO HAVE A VERY GOOD STORY TO TELL THAT, THAT AS THE PROGRAM ROLLS OUT AND YOU'RE IMPLEMENTING IT, YOU KNOW, THERE'S PROBABLY GOOD NEWS DOWN THE ROAD AT, AT, UH, AT SOME POINT AS WELL.

IS, IS THE RATING THAT WE GO TO MARKET WITH AN A US SPECIFIC RATING OR IS IT TIED TO THE CITY OR IS IT SEPARATE AND ENTIRELY IT'S SPECIFIC TO THE AIRPORT AND YEAH.

AND THE SPECIFIC PLEDGE OF AIRPORT REVENUES YEP.

UH, TO THE BOND HOLDERS.

AND WHAT, WHAT IS THAT RATING TODAY? OR IS THAT A BOOTY SAYS A ONE AND, UH, S AND P IS A PLUS.

A PLUS, YES.

AND YOU ALSO HAVE A, HAVE A CRAWL RATING AT, UH, A A MINUS AND WHICH, WHICH ARE VERY SOLID STRONG RATINGS.

AND SAN DIEGO WAS, WAS UPGRADED FROM WHAT TO WHAT? UH, SAN DIEGO'S NOW IN THE, IN, UH, AT AA MINUS CATEGORY.

UH, WITH, WITH MOODY'S.

AND THEY ALSO HAVE A FITCH RATING MM-HMM .

SAFE TRIP BACK TO NEW YORK AGAIN.

THANK YOU VERY MUCH.

IV.

LET'S TAKE A QUICK LAP AROUND THE SECOND ITEM AND NOT GO, I KNOW WE'VE GOT THE SECOND ITEM WE'RE COMING BACK TO, BUT SURE.

UM, THERE'S A COUPLE OF THINGS.

UH, I WANNA KIND OF TALK ABOUT THE, UH, UH, THE, THE DECEMBER, UH, STATISTICAL DATA.

UH, I KNOW, UH, COMMISSIONER WALEZ HAD ASKED ABOUT CARGO IN THE LAST MEETING WHETHER WE WERE SEEING SIMILAR DECLINES IN CARGO NUMBERS.

SO WE DID SOME RESEARCH AND, UH, FROM, AND THE DATA THAT WE COULD GET WAS FROM JUST FROM JANUARY, 2025 TO NOVEMBER, THE DECEMBER DATA IS NOT AVAILABLE, SO AT LEAST YOU HAVE 11 MONTHS TO KIND OF COMPARE TO MM-HMM .

SO, UH, ABOUT 70 AIRPORTS, THIS IS ALL NORTH AMERICAN AIRPORTS HAVE SEEN DECLINES VERSUS PRIOR IN CARGO TONNAGE.

UH, AND ABOUT 30 OF THOSE ARE KIND OF WORSE THAN WHERE WE ARE, UH, IN TERMS OF THE DECLINE.

UH, AND THERE, YOU KNOW, IT, IT RANGES FROM LARGE AIRPORTS LIKE, YOU KNOW, LAX TO, UM, UH, SAN DIEGO, LAS VEGAS, ALL THOSE AIRPORTS ARE ACTUALLY SEEING CARGO DECLINES.

IS THAT WHAT YOU WERE KINDA LOOKING FOR IN TERMS OF COMPARISONS? OKAY.

UM, AND ALSO, UM, GOING BACK TO P PA PASSENGER STATISTICS TOO, BECAUSE THIS IS A DECEMBER REPORT.

TYPICALLY WHEN YOU COMPARE AIRPORTS, UH, PASSENGERS, YOU LOOK AT IT FROM A CALENDAR YEAR PERSPECTIVE BECAUSE THE FISCAL YEARS ALL DIFFERENT.

SO ONE GOOD THING FOR US IS OUR, UH, PASSENGER NUMBERS WERE ESSENTIALLY FLAT WHEN YOU LOOK AT THE TOTAL PASSENGER NUMBERS ON A CALENDAR YEAR BASIS, JANUARY THROUGH DECEMBER.

UM, AND, AND WE LOOKED AT OTHER AIRPORTS, HOW THEY DID, AGAIN THROUGH NOVEMBER, 2025, YOU KNOW, JANUARY THROUGH NOVEMBER OF 2025.

AND, UH, WE SAW ABOUT 46 AIRPORTS WITH WORSE DECLINES THAN WHAT WE SAW.

YOU KNOW, OURS IS ROUGHLY ABOUT FLAT AND EVEN SOME OF THE TEXAS AIRPORTS THAT WE LOOKED AT, LIKE, YOU KNOW, SAN ANTONIO DFW HOUSTON HAD YEAR OVER YEAR DECLINES THAT WERE WORSE THAN WHAT WE HAVE SEEN IN A US.

SO A US COMPARATIVELY AS KIND OF, EVEN THOUGH IT'S FLAT, HAS DONE BETTER THAN, UH, MOST IN TERMS OF PASSENGER STATISTICS, UH, ON THE REVENUE SIDE, UH, YEAR OVER YEAR, UM, UH, AND YEAR TO DATE RESULTS, YOU CAN SEE THAT OUR REVENUES ARE UP ABOUT $24 MILLION OR 27%.

OUR EXPENSES ARE UP ABOUT 10%.

OUR, OUR, OUR AIRPORT EXPENSES.

UH, IN SPITE OF THAT, UM, YOU CAN SEE THAT YEAR OVER YEAR OUR NET REVENUES ARE ABOUT 17 MILLION HIGHER THAN

[00:55:01]

IT WAS PRIOR YEAR.

UH, THE, UH, Q1, UH, MAINLY MOST OF THAT IS COMING FROM THE NEW USE AND LEASE AGREEMENT AND THE AIRLINE RATES AND CHARGES.

SO YOU CAN SEE THAT 20 MILLION VARIS OR IMPROVEMENT IN AIRLINE REVENUES THAT IS CONTRIBUTING TO THAT 17 MILLION IN, UH, IN NET REVENUES.

'CAUSE MR. THOMAS, THOSE RATES INCREASED ON OCTOBER 1ST, RIGHT? YEAH, YEAH, YEAH.

I MEAN, WE HAD A BRIDGE AGREEMENT, BUT THE RATES WERE IN EFFECT AS OF OCTOBER 1ST.

SO WE'RE PUTTING THAT HAY IN THE BARN VERBALLY.

YES, THAT'S CORRECT.

UNTIL, YEAH.

UH, AND, UH, VERSUS BUDGET, UH, WE ARE ABOUT 4 MILLION, UH, HIGHER THAN WHERE WE HAD BUDGETED ON A SEASONALIZED BASIS.

UM, UH, AIRLINE REVENUES ARE ABOUT 1.6% BETTER.

UH, NON AIRLINE REVENUES ARE ABOUT 6.3% BETTER THAN WE BUDGETED.

AND LIKE I MENTIONED, THE TOTAL REVENUES ARE ABOUT 4 MILLION.

HIGHER OPERATING EXPENSES ARE A LITTLE BIT WORSE, ABOUT 1.5% WORSE THAN WE HAD BUDGETED, UH, ABOUT $661,000.

UH, WE LOOKED AT THAT.

THE PERSONNEL EXPENSES ARE TRENDING AS WE BUDGETED, SO THAT IS FINE.

MOST OF THAT VARIANCE IS COMING IN OUR CONTRACTUALS EXPENSES LIKE STAFF AUGMENTATION FOR BUILDING MAINTENANCE AND THINGS LIKE THAT, THAT IS CAUSING THAT VARIANCE SO FAR.

BUT, UH, EVEN WITH THAT VARIANCE, YOU COULD SEE, UM, THE NET REVENUES VERSUS BUDGET IS TRENDING ABOUT 3.7 BILLION HIGHER THAN, UH, WHAT WE HAD BUDGETED.

SO THAT WAS QUICK, MY CONCLUSION.

ANY QUESTIONS ON THE SCREEN OR IN THE ROOM FOR MR. THOMAS? NOTHING OF CONCERN TO YOU RECEIVED HERE.

GOOD.

NOT ON THE, THANK YOU FOR THE FOLLOW UP.

GOOD AFTERNOON COMMISSIONERS.

[6. Briefing on Journey with AUS (AUS AEDP/Capital Improvement Program) Active Projects provided by Lyn Estabrook, Deputy Chief Development Officer]

UH, OKAY.

WE'RE DOWN AT, UM, LYNN, WE'RE IN YOUR WORLD NOW.

ITEM SIX.

UM, SOME MORE GREAT NEWS, UM, ON, UH, THE PROGRESS OF THE PROGRAM AND EVERYTHING WORKING GOING ON AT A US.

UM, IF YOU WANNA GO AHEAD AND TURN TO THE FIRST PROJECT, THE WEST INFILL AND THOSE IMAGES, ONE MORE.

THERE WE GO.

UM, THIS PROJECT HAD A RIBBON CUTTING, UM, ON THE 6TH OF FEBRUARY, AND IT WAS REALLY GREAT.

YOU CAN SEE ALL AREAS OF THE PROJECT.

WE'VE GOT BAGGAGE HANDLING SYSTEM, THE NEW SCREENING LANES, OFFICES FOR TSA AND OTHERS, AS WELL AS NEW TICKET COUNTERS.

THE ONE ITEM THEY'RE STILL WORKING ON IS THE STAIR THAT IS QUICKLY NEARLY DONE AND THIS SPACE WILL BE OPENING UP TO THE PASSENGERS, UM, IN THE COMING WEEKS.

SO THAT'S REALLY EXCITING.

UM, THIS HAS BEEN A, A PROJECT, UM, THAT'S BEEN LONG EXCITED, WAITING FOR, UM, AND HAS BEEN IN FROM INCEPTION TO NOW.

I CAN REMEMBER WHEN IT WAS JUST AN IDEA.

UM, AND IT'S REALLY EXCITING TO STAND IN THE SPACE AND SEE IT.

SO THIS IS A GREAT, UH, WIN.

DO YOU WANNA MOVE TO THE NEXT, WE'RE GONNA GO AHEAD AND MOVE TO THE GARAGE PROJECT, LARRY? YEAH, LET'S STOP RIGHT THERE.

UM, THIS THE TOP RIGHT CORNER PICTURE, ALTHOUGH IT MAY SEEM LIKE A REALLY WEIRD PICTURE AND YOU MAY NOT UNDERSTAND WHAT YOU'RE LOOKING AT.

IT'S AN EXCITING MILESTONE.

AND WHAT YOU ARE SEEING IS THE BLUE GARAGE, THAT'S, THOSE BLUE FINS HAVE BEEN TAKEN OFF IN A SPECIFIC AREA OF THAT BLUE GARAGE, AND THAT IS WHERE THE YELLOW GARAGE IS CONNECTING TO THE BLUE GARAGE.

THAT MEANS THEY'RE WORKING AS WE SPEAK ON THE CONNECTION BRIDGE BETWEEN THE TWO GARAGES FOR OUR PASSENGERS WHO WILL WALK FROM THE YELLOW TO THE BLUE.

SO THAT'S A REALLY HUGE MILESTONE.

THAT MEANS THAT WE'RE NEARLY THERE IN THAT LOWER LEVEL PICTURE.

UM, THEY WERE WORKING ON THE ELECTRICAL ROOM AND IN THE DISTANCE, UM, WAS THE FRAMING FOR THE NEW AWNING FOR THE NEW, UH, AREA THAT YOU WILL DRIVE AND GET A TICKET.

AND TODAY MOST OF THAT FRAMING'S ALREADY UP.

SO IT'S GONE COME A LONG WAY SINCE WE HAVE TO PREPARE THIS PRESENTATION A COUPLE OF WEEKS IN ADVANCE.

SO, UH, VERY EXCITING, UH, NEWS ON THE GARAGE, AND THAT IS MOVING ALONG QUICKLY AS WELL.

IF WE WANNA GO AHEAD AND MOVE TO THE NEXT PROJECT, TO THE ATRIUM INFILL, WE'RE GONNA MOVE TO THOSE PICTURES.

ON THAT EXISTING CEILING.

UM, AND THIS IS ALSO MAYBE A CONFUSING PICTURE, SO I'M GONNA EXPLAIN IT.

SO ON THE, ON THE LEFT SIDE OF THE PICTURE, YOU'RE SEEING WHAT'S CALLED, UM, IT'S A FRAMING SYSTEM.

A SCAFFOLDING SYSTEM THAT'S HUNG FROM THE BEAMS DOWN.

SO WHAT THAT ALLOWS US TO DO IS HAVE THE PASSENGERS WALK AROUND IN THE BAGGAGE CLAIM SYSTEM, YET THE CONTRACTORS ARE ABOVE THEM WORKING ON THE ROOF OF THE CEILING ABOVE.

AND YOU CAN SEE THEN ON THE RIGHT SIDE OF THE IMAGE, IT'S ACTUALLY THE FLOOR.

IT'S THE OPPOSITE, RIGHT? IT'S THE FLOOR.

AND THEY'VE STARTED TO TAKE DOWN THE EXISTING CEILING AND MAKE THE MODIFICATIONS

[01:00:01]

THOSE KIND OF RECTANGULAR SPACES ARE THE, UM, EXISTING LIGHT, UM, WELLS THAT WE HAVE IN, IN THE, UH, UH, BARBARA GEORGE TERMINAL.

SO THIS EXCITING, THE FLOOR IS COMPLETELY POURED.

YOU CAN WALK ON IT.

THEY'RE, THEY'RE WORKING ON IT.

SO THEY'RE MAKING GREAT PROGRESS ON THE ATRIUM INFILL.

SO IT'S FILLED IN, IT'S FILLED IN .

SO, UM, IF WE WANNA MOVE TO THE NEXT PROJECT, UM, THE, WE HAVEN'T REALLY LOOKED AT PICTURES THAT MUCH FROM THE MIDFIELD.

TAXIWAYS.

THEY MOVE A LOT OF DIRT.

AND SO IT'S NOT AS EXCITING, BUT IT'S REALLY CRITICAL WITH THIS LARGER PICTURE HERE ON THE RIGHT, YOU'RE SEEING, THEY'RE POURING THE FOUNDATIONS FOR WHAT SOME PEOPLE CALL A BRIDGE.

SOME PEOPLE CALL A TUNNEL, WHICH IS THE SPACE WHEN THEY POUR THOSE FOUNDATIONS ABOVE, IT WILL BE THE ROADS FOR THE NEW PLANES, THE NEW TAXIWAYS.

SO THEY'RE POURING THESE GIANT FOUNDATIONS SO THAT THEY'RE ESSENTIALLY BUILDING BRIDGES FOR THE PLANES, AND THEY HAVE STARTED THAT WORK.

SO THAT'S ANOTHER MAJOR MILESTONE ON THAT, UH, PROJECT.

AND THAT'S, UH, TAXIWAY PAPA AS WE CALL IT, P THERE, WHICH IS THE LOWER OF THE TWO TAXIWAYS.

SO SOME GREAT WORK.

UM, AND THEN I JUST WANNA GO ON THE LAST PAGE.

AND I REALLY WANNA HIGHLIGHT, WE HAD SOME OUTREACHES IN THE LAST TWO WEEKS.

SO I REALLY WANTED TO THANK, UH, OUR STAKEHOLDER RELATIONS TEAM AT THE AIRPORT.

UM, AND THEY'RE MANAGED BY, BY KYLE, UM, AND, AND SAM AT THE AIRPORT.

AND THEY DID A GREAT JOB.

SO LAST WEEK WE HAD AN OUTREACH THAT, UH, SAW THE CONTRACTOR.

SO SUN ARCHER WESTON EZ SAW WAS WORKING ON THE UICW, DID AN OUTREACH ON OUR CAMPUS.

THERE WAS OVER A HUNDRED, UM, PEOPLE AT THAT OUTREACH.

SO THAT WAS REALLY GREAT.

AND THEN YESTERDAY, WE, WE, THE AIRPORT SPONSORED OUR OWN OUTREACH.

WE HAD ALL THE CONTRACTORS COME AND WE HAD, UH, NEARLY 200 UNIQUE FIRMS SHOW UP AT THE OUTREACH YESTERDAY.

AND WHAT NOT ONLY WAS THAT GREAT NEWS, BUT THE OTHER GREAT NEWS THAT WE HAD WAS ABOUT HALF OF THOSE 200 PEOPLE SAID THEY'D NEVER BEEN TO AN OUTREACH BEFORE BY THE AIRPORT.

SO THESE ARE NEW COMPANIES THAT ARE COMING AND HEARING ABOUT OUR PROJECTS.

AND SO, UM, THAT, THAT WAS A REALLY GREAT TURNOUT.

AND I NOT ONLY WANNA THANK THE STAKEHOLDER RELATIONS GROUP, BUT I WANTED TO THANK ALL THESE CONTRACTORS AND DESIGNERS WHO SHOWED UP, HAD A TABLE, WENT AND DID THAT NETWORKING, DID WHAT WE ASKED, AND REACHED OUT TO NEW COMPANIES.

AND SO WE WERE JUST REALLY EXCITED ABOUT THE TURNOUT.

LYNN, I'LL JUST SAY EDITORIAL NOTE.

I GREW UP IN A FAMILY WHERE EMPLOYMENT WASN'T ALWAYS GUARANTEED AS A KID, RIGHT? I THINK THAT QUALITY LIFE BEGINS WITH A QUALITY JOB.

AND TO SEE THE OPPORTUNITY FOR CENTRAL TEXAS FAMILIES TO BE EMPLOYED AND TO BENEFIT FROM THIS IMPORTANT WORK IS AWESOME TO SEE.

SO WE APPRECIATE YOUR INTENTIONALITY THERE.

AND O OBVIOUSLY ALL THE, ALL THE LEAD FIRMS INVOLVED HERE ARE APPRECIATED TOO.

AND THEY'RE EMPLOYING LOCAL PEOPLE.

I MEAN, IT'S JUST A VERY, VERY GOOD THING FOR OUR CENTRAL TEXAS ECONOMY.

ANY QUESTIONS FOR JEFF? I, I JUST WANT TO COMMENT ON THAT TOO.

I, UH, IT, IT DOESN'T GO, UH, I NOTICED THAT YOU DON'T GET 50% UNIQUE COMPANIES, NEW MEMBERS WITH BY ACCIDENT.

A LOT OF WORK WAS DONE BY THAT.

AND I THINK THAT'S REALLY IMPORTANT TO REALLY SHARE 'CAUSE WE'RE ALL TAXPAYERS AND IT'S IMPORTANT FOR MM-HMM .

UH, OUR WHOLE COMMUNITY TO HAVE THE OPPORTUNITY TO AT LEAST COME AND LOOK AND SEE IF THERE'S SOME OPPORTUNITY FOR THEM FOR FUTURE WORK.

SO I THINK THAT'S AWESOME.

SO GREAT WORK TO ALL INVOLVED.

ANY, UM, ANY QUESTIONS, SPECIFIC QUESTIONS FROM MS. ESTHER BROOK BEFORE WE KEEP MOVING? I HAVE ONE QUICK ONE.

DO YOU HAVE ANY CONCERNS ON PACE OF DELIVERY ON ANY OF THESE MYRIAD OF PROJECTS RIGHT NOW? OR DO YOU FEEL GENERALLY GOOD ABOUT HOW THINGS ARE GOING? WE HAVE BEEN TALKING AND REACHING OUT TO THE COMMUNITY FOR YEARS NOW, AND I, AND SEEING THE CONSTRUCTION AND SEEING HOW THEY'RE DELIVERING THESE PROJECTS IS PROOF OF OUR COMMUNICATION IS WORKING.

AND I THINK ALL COMMISSIONERS WOULD VALUE WOULD BE WHEN YOU SEE CONCERNS AROUND PACE OF DELIVERY OR PROBLEMS. YOU KNOW, SOMETIMES WE WALK TO TELLING PEOPLE, OTHER TIMES WE RUN TO TELLING PEOPLE ABOUT IT, AND OBVIOUSLY STRIKE THE RIGHT BALANCE THERE.

ABOUT THE EXPECTATION THE CITY AND THE AIRLINES HAVE FOR THIS PROGRAM.

AND, UH, HAVING ALL OF THESE COMPANIES SHOW UP AT OUR OUTREACH ALSO, I, I THINK IS REAL PROOF PEOPLE UNDERSTAND WE'RE SERIOUS ABOUT BUILDING SOMETHING AS QUICKLY AS WE CAN AND AS SAFE AS WE CAN, UM, TO MEET THE NEEDS OF THE GROWING REGION.

AND SO IT'S EXCITING TO, TO SEE THE DEVELOPMENT EVERY DAY AS I I GO TO WORK BECAUSE THEY ARE, PEOPLE ARE WORKING HARD AND, AND THEY FEEL PART OF THE GROWING AIRPORT AND THEY'RE PROUD TO BE PART OF THE PROJECT.

THAT'S GREAT.

YOU KNOW, I THINK AS WE THINK ABOUT FUTURE BRIEFINGS, ONE THING THAT I WOULD VALUE,

[01:05:01]

BUT I THINK THE MORE THE PUBLIC KNOWS ABOUT CONCERNS, 'CAUSE WE'RE GONNA HAVE CONCERNS.

THIS IS A BIG PROJECT, THERE'S GONNA BE CHALLENGES THAT YOU DON'T ANTICIPATE.

SOME OF YOUR CONTRACTORS ARE GONNA RUN INTO PROBLEMS OF THEIR OWN MAKING OR OF OUTTA THEIR CONTROL ENTIRELY.

I THINK WE ALL HAVE TO JUST RESOLVE TO KNOW THAT THAT'S GONNA HAPPEN.

I THINK THE MORE COMMUNICATION THERE PROACTIVELY THAT WE CAN HAVE MM-HMM .

ALONG THE WAY, THE BETTER WE'LL BE.

NOT IF, BUT WHEN WE INTERSECT CHALLENGES.

COMMISSIONER AND I THINK ONE OF THE OTHER SPEAKERS, THIS, UH, AFTERNOON WILL SHOW THE COMMITMENT THAT THE AIRPORT HAS TO HIRING A DIVISION OF RISK MANAGEMENT AND SAFETY AND DOING OUR OWN INSURANCE.

AND SO YOU'LL HEAR MORE ABOUT THAT SHORTLY.

[7. Authorize negotiation and execution of an amendment to the Austin-Bergstrom International Airport General Aviation Facility Management Agreement with Signature Flight Support, LLC to add one year to the term, effective March 1, 2026. Funding: $143,255 is available in the Fiscal Year 2025-2026 Operating Budget of Austin Aviation.]

LET'S GO.

JOHN, WE'RE GOING INTO YOUR WORLD RIGHT NOW, RIGHT? UM, I'LL SAY, LET'S OPEN IT UP.

THESE ARE GONNA BE DISCUSSION AND A ACTION ITEMS. WE'LL START WITH ITEM NUMBER SEVEN.

THANK YOU FOR FRAMING IT UP FOR US, JOHN.

YEAH, ABSOLUTELY.

THANK YOU, MR. CHAIR AND THANK YOU COMMISSIONERS.

JOHN GALLO, DEPUTY CHIEF OFFICER FOR COMMERCIAL DEVELOPMENT WITH AUSTIN AVIATION.

UM, ITEM SEVEN, UM, IS A ONE YEAR, UM, EXTENSION OR AN AMENDMENT TO THE MANAGEMENT AGREEMENT WITH SIGNATURE FLIGHT SERVICE FOR THE MANAGEMENT OF OUR T HANGER FACILITY.

UM, SO, UH, SIGNATURE FLIGHT SERVICE ON BEHALF OF THE AVIATION DEPARTMENT MANAGES THOSE SUBLEASES YEP.

FOR ABOUT 56 DIFFERENT T HANGERS.

AND, UH, THOSE REVENUES GENERATED FROM THERE IS SPLIT 50 50 BETWEEN, UM, THE AIRPORT AND SIGNATURE.

SO HAPPY TO ANSWER ANY QUESTIONS.

AIRPORT OWNED SIGNATURE MANAGED, WE DID THIS LAST YEAR.

THIS IS AN ANNUAL RENEWAL.

YES, SIR.

ANY QUESTIONS ON THE SCREEN OR IN THE ROOM? UH, YES, SUSAN, UM, IS SIGNATURE THE, THE SMALLER PRIVATE AIRLINE AREA OR IS THIS PART OF A BIA, THE, THE BIG AIRPORT? YEAH.

UH, SIGNATURE FLIGHT SERVICE IS ONE OF OUR THREE FIXED BASED OPERATORS THAT HANDLES, UH, GENERAL AVIATION AIRCRAFT ON OUR GENERAL AVIATION RAMP, AND THOSE TEE HANGERS ARE ADJACENT TO THEIR FACILITY.

GOT IT, GOT IT.

US INTO NUMBER EIGHT, PLEASE.

THANK YOU SUSAN.

ANY, ANY OTHER QUESTIONS BEFORE I ACCEPT, UH, MOTION IN FAVOR? THERE ARE A MOTION OUT THERE.

ANY OPPOSED? GREAT PASSES UNANIMOUSLY.

JOHN, TAKE

[8. Authorize negotiation and execution of a building and ground lease with Federal Express Corporation for approximately 76,757 square feet of the cargo building at 9301 Cargo Ave., Austin, Texas 78719, 146,033 square feet of the airport cargo apron area, 79,333 square feet of the cargo handling area, 163,465 square feet of parking area, and 11,448 square feet of equipment storage area at Austin-Bergstrom International Airport, for a term of 10 years, commencing on January 1, 2026. Funding: This item is projected to be revenue neutral in the Fiscal Year 2025-2026 Austin Aviation Operating Budget. The item consolidates the tenant’s existing contracts related to the lease and use of cargo apron areas and cargo handling areas into a new 10-year agreement. Accordingly, the tenant’s projected total rental revenue is unchanged for Fiscal Year 2025-2026.]

UH, YES, SIR.

THIS IS A, UM, UM, A 10 YEAR LEASE AGREEMENT WITH, UM, FEDEX FOR THE, UH, LEASING OF THEIR CURRENT FACILITY.

UM, THEY CURRENTLY HAVE A YEAR AND A HALF REMAINING ON THEIR CURRENT LEASE.

UH, SO THEY WANTED TO, AS WELL AS THE AIRPORT, WANTED TO ALIGN THEIR CARGO USE AGREEMENT WITH THEIR FACILITY AGREEMENT.

SO THIS DEAL ALIGNS BOTH AGREEMENTS ON BASICALLY THE SAME TERM, UH, 10 YEAR COMMITMENT FROM FEDEX WITH THEIR USE AGREEMENT ALONG WITH THEIR BUILDING AND FACILITY LEASE.

SO, UM, IT'S A, I THINK A GREAT COMMITMENT FROM FEDEX TO EXTEND THAT LEASE, UM, BRING THEIR LEASE UP TO, UH, CURRENT STANDARDS AND, UM, HAVE THAT COMMITMENT FROM A, A STRATEGIC CARGO PARTNER LIKE FEDEX.

SO AT A HIGH LEVEL, FEDEX IS ONE OF OUR SHINING STAR USE AND LEA LEASE AGREEMENT SIGNATORIES, WE'RE TAKING AN EXISTING LEASE AND MAKING IT COTERMINOUS WITH THE TERM ON THE NEWLY EXECUTED USE AND LEASE AGREEMENT.

ABSOLUTELY.

GREAT SHOWING OF COMMITMENT BY FEDEX.

ANY QUESTIONS FOR JOHN ON ITEM NUMBER EIGHT, , I'M JUMPING AHEAD, UH, IN, IN, UH, MOTION IN FAVOR.

SO MOVED.

SECOND FROM COMMISSIONER FG.

ALL IN FAVOR? ANY OPPOSED?

[9. Authorize a contract for an insurance broker of record and administrative services for AustinBergstrom International Airport’s rolling owner-controlled insurance program for Austin Aviation with Marsh & McLennan Companies Inc / Marsh USA LLC / McGriff, A Marsh & McLennan Agency LLC Company, for a term of six years in an amount not to exceed $49,579,000. Funding: $4,131,583 is available in the Capital Budget of Austin Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. [Note: This solicitation was reviewed for subcontracting opportunities in accordance 3 with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established.]]

SO WHAT THIS IS IS AN INSURANCE PROGRAM WHERE AUSTIN AVIATION WILL PURCHASE WORKERS' COMPENSATION, GENERAL LIABILITY, EXCESS LIABILITY, AND CONTRACTORS POLLUTION LIABILITY INSURANCE COVERAGES THAT WILL COVER NOT ONLY THE PRIME CONTRACTORS, BUT ALL LEVELS OF SUBCONTRACTORS WORKING ON OUR PROJECTS.

MOVING ON.

UM, I THINK I'M LOOKING FOR BENNY HERE, RIGHT? HEY BENNY.

AYE, NICE TO SEE YOU.

THANK YOU FOR BEING HERE.

LET'S TALK ABOUT FRAME NU NUMBER NINE UP FOR US.

SURE.

UH, BENNY VANDEN AND DEPUTY CHIEF ENTERPRISE RISK MANAGEMENT AND SAFETY.

UH, ITEM NINE IS ASSOCIATED WITH, UH, ROLLING OUT A ROLLING OWNER CONTROLLED INSURANCE PROGRAM FOR THE VAST AMOUNT OF CONSTRUCTION THAT LYNN JUST WENT OVER FOR US.

[01:10:01]

THE REASONS THAT WE DO THAT ARE FIRST AND FOREMOST SAFETY PART OF THIS PROGRAM IS A DEDICATED FOCUS ON THE SAFETY OF THESE PROJECTS.

THERE IS AERO SAFETY MANUAL, IT'S 187 PAGE DOCUMENT THAT OUTLINES THE MINIMUM EXPECTATIONS AND REQUIREMENTS OF SAFETY ON THE PROJECTS.

UH, THIS SPECIFIC ITEM IS FOR THE ADMINISTRATION OF THE PROGRAM.

SO IT IS FOR INSURANCE BROKER OF RECORD, THE ACTUAL PURCHASE OF THE INSURANCE, AND THEN THE ADMINISTRATION OF THE PROGRAM.

WHILE PARTICIPATION IS MANDATORY, THERE IS AN ENROLLMENT PROCESS AND THIS PARTNER WILL HELP US TRACK THE HUNDREDS AND THOUSANDS OF INDIVIDUAL SUBCONTRACTORS AND CONTRACTORS THAT WILL BE COMING ON SITE TO PERFORM CONSTRUCTION FOR US.

SO BENNY, THIS MASTER POLICY, THERE'S SOME PRECEDENT FOR IT YES.

AT THE CITY LEVEL SINCE THE NINETIES, CORRECT? PLUS OR MINUS.

YES, SIR.

THIS WILL BE THE FIRST TIME WE AS A, AS AN AIRPORT A US DOES FOLLOW SUIT IN ESSENCE.

SO AUSTIN AVIATION AS A CITY DEPARTMENT HAS PARTICIPATED YES.

IN HISTORIC PHASES OF RO AND SO, UM, THE BLUE GARAGE AND ADMINISTRATIVE BUILDING WERE BUILT UNDER A CITYWIDE VERSION OF ROIP.

AND SO WHAT'S DIFFERENT HERE IS BECAUSE THE AIRPORT IS DOING SO MUCH WORK INDIVIDUALLY ON ITS OWN, THE VAST SIZE OF IT AND THE TIMELINES OF IT MADE IT APPARENT THAT THE AIRPORT WOULD BENEFIT FROM HAVING ITS OWN DEDICATED PROGRAM, COST EFFECTIVE PRIORITIZATION OF SAFETY.

YEAH, ABSOLUTELY.

ARE THERE ANY QUESTIONS ON THE SCREEN OR IN THE ROOM FOR BENNY? AND BENNY, YOU DID THIS? YEP, GO AHEAD MIKE.

YEAH, SO LOOKING AT THE BACKUP AND, AND DEFINITELY I UNDERSTAND THE NEED FOR IT, SOMEWHAT FAMILIAR WITH THE, THE CITY'S PROGRAM, BUT, UM, JUST WITH THE NUMBERS, SO IT'S A SIX YEAR CONTRACT FOR I BELIEVE, YOU KNOW, 40 SOMETHING MILLION, BUT THE FUNDING AVAILABLE IS, IS A LITTLE OVER 4 MILLION.

IS THAT THE ESTIMATED ANNUAL SPEND FOR THE PROGRAM IS THAT 4 MILLION? SO IT IS NOT THE ESTIMATED ANNUAL SPEND.

UH, THE CITY'S FINANCE DEPARTMENT IS WHO IMPUTES THAT NUMBER INTO THE RCA, BUT I BELIEVE THAT THEY BASE IT ON, UH, THEY BASICALLY DIVIDE THE SIX YEAR PROGRAM AND THEN THEY DIVIDE THAT BY THE NUMBER OF MONTHS LEFT IN THIS FISCAL YEAR.

AND THAT'S HOW THEY COME TO THAT NUMBER.

THAT ACTUAL FUNDING, JUST FOR CLARITY, IS ALREADY BAKED OR INCLUDED IN THE CONSTRUCTION COST OF EACH OF THESE PROGRAMS. SO WHEN THE BUDGETS WERE CREATED FOR EACH CONSTRUCTION PROJECT, IT INCLUDES AN AMOUNT OF MONIES DEDICATED ALREADY TO INSURANCE.

IN THIS CASE, THE MONEY WILL JUST GO TOWARDS THE ROLLING OWNER CONTROLLED INSURANCE PROGRAM.

SO PERCENTAGE OF THAT CONSTRUCTION BUDGET BASICALLY GOES TO THE PROGRAM.

AND I'M GONNA SAY THIS INARTICULATELY, SO SORRY, BUT THE, WHAT WE'RE APPROVING TODAY ALLOWS A US TO CONTROL AND RUN THAT MASTER POLICY YES.

AS OPPOSED TO DEPENDING UPON YOUR RESPECTIVE GENERAL CONTRACTORS TO, TO DO THEIR OWN.

IF, IF WE DID NOT HAVE THIS PROGRAM, THERE WOULD KIND OF BE TWO OPTIONS ON THE TABLE.

FOR CLARITY, WE DO NOT PROVIDE AUTO LIABILITY INSURANCE.

ONE WOULD BE THE TRADITIONAL INSURANCE MODEL, WHICH WOULD BE EVERY SINGLE INDIVIDUAL SUBCONTRACTOR, ALL INDIVIDUALLY BRINGING THEIR INDIVIDUAL INSURANCE COVERAGES.

OR THERE IS A PROGRAM THAT EXISTS, UH, WHICH IS CALLED A CSIP, WHICH WOULD BE A CONTRACTOR CONTROLLED INSURANCE PROGRAM BECAUSE WE HAVE MULTIPLE PRIME CONTRACTORS DOING MULTIPLE PROJECTS FOR US, RATHER THAN THEM HAVING MULTIPLE CIP PROGRAMS. THERE'S ECONOMIES OF SCALE AND EFFICIENCIES AND US HAVING A SINGULAR OWNER CONTROLLED PROGRAM.

AND WHEN CLAIMS ARE PAID OUT, FINGERS AREN'T BEING POINTED.

ANY QUESTIONS, UH, FOR BENNY ON, UM, ITEM NUMBER NINE THERE A MOTION IN FAVOR? YES, PLEASE.

JUST QUICK FOLLOW UP OVER THERE.

UM, SO DOES THAT MEAN IF WE HAVE THIS MASTER POLICY, THE GENERAL CONTRACTORS OR SUBCONTRACTORS DO NOT NEED THEIR OWN CONTRACT, UH, POLICY ANYMORE? SO THIS PROGRAM WILL SUPPLEMENT THEIR OWN INSURANCE COVERAGES.

[01:15:01]

THEY HAVE TO PROVIDE THEIR OWN AUTO LIABILITY INSURANCE, THEIR OWN PROFESSIONAL LIABILITY INSURANCE FOR LIKE ARCHITECT ENGINEERING SERVICES.

THOSE ARE COVERAGES THAT WE DO NOT PROVIDE.

THE OTHER THING, JUST TO GIVE ABSOLUTE CLARITY, THIS IS FOR ONSITE RISKS.

AND SO THEY ARE STILL REQUIRED TO CARRY THESE COVERAGES FOR OFFSITE WORK THAT THEY'RE DOING OR FOR WORK THAT THEY'RE DOING THAT IS NOT ASSOCIATED WITH THE AIRPORT'S CONSTRUCTION.

THANKS FOR THE CLARIFICATION.

IS THERE A MOTION IN FAVOR? YEP.

SECOND.

A SECOND.

UH, DISCUSSION AND ACTION ITEM.

ALL IN FAVOR? ANY OPPOSED? PASSES UNANIMOUSLY.

LAST,

[10. Authorize a contract for construction safety management services for Austin-Bergstrom International Airport’s rolling owner-controlled insurance program for Austin Aviation with SMG Group Parent, LLC / Safety Management Group, LLC, for a term of six years in an amount not to exceed $800,000. Funding: $66,667 is available in the Capital Budget of Austin Aviation. Funding for the remaining contract term is contingent upon available funding in future budgets. [Note: This solicitation was reviewed for subcontracting opportunities in accordance with City Code Chapter 2-9B (Minority-Owned and Women-Owned Business Enterprise Procurement Program). For the services required for this solicitation, there were no subcontracting opportunities; therefore, no subcontracting goals were established.]]

MINNIE, THIS IS YOUR WORLD TOO.

SO ITEM NUMBER 10 IS A COMPLIMENTARY SERVICE, UH, UH, AGREEMENT.

UH, THAT IS WITH A PROFESSIONAL SAFETY ORGANIZATION THAT HELPS TO AUGMENT OUR OWN INTERNAL TEAM, UH, AND HELPS US HAVE ANOTHER LEVEL OF PROFESSIONAL OVERSIGHT ON THE SAFETY OF OUR CONSTRUCTION PROJECTS.

ULTIMATELY, THE SCOPES OF WORK INCLUDE, UH, REVIEWING THE SAFETY PROGRAMS OF OUR PRIME CONTRACTORS THAT WILL BE PERFORMING WORK.

IT INCLUDES INTERVIEWING AND APPROVING THE DEDICATED FULL-TIME SAFETY PROFESSIONAL STAFF THAT THIS PROGRAM REQUIRES OUR PRIME CONTRACTORS AND SELECT SUBCONTRACTORS TO PROVIDE, AGAIN TO ENSURE THAT DEDICATED FOCUS ON SAFETY.

UM, AND SO THIS IS A, A SMALLER BUT COMPLIMENTARY CONTRACT THAT HELPS ENSURE WE HAVE ROBUST SAFETY IN PLACE ULTIMATELY TO MINIMIZE THE NUMBER OF CLAIMS THAT HAPPEN AND INCIDENTS THAT HAPPEN ON OUR PROJECTS.

SO THE SMG PARENT GROUP SAFETY MANAGEMENT GROUP IS WORKING FOR YOU? CORRECT.

THEY WILL REPORT AND WORK HAND IN HAND WITH THE EMBEDDED TEAM OF DEDICATED A US EMPLOYEES, RIGHT.

THAT ARE DEDICATED TO CONSTRUCTION SAFETY.

IN ADDITION TO, THEY'LL PARTNER WITH MARSH.

IN THIS CASE, OUR ADMINISTRATOR ALSO OFFERS SAFETY, UH, SERVICES AND THEN OUR INSURANCE CARRIER, UH, HISTORICALLY HAS ALSO HAD SAFETY PROFESSIONALS COME OUT TO OUR PROJECTS.

BECAUSE EVERYONE HAS THE UNIFIED GOAL OF DELIVERING TIMELY ON BUDGET, BUT MORE THAN ANYTHING SAFE PROJECTS.

BENNY, BEFORE WE LEAVE THIS TOPIC, TELL US YOU WERE AT THE CITY DOING SOMETHING SIMILAR THAT YOU'RE DOING HERE AT, SO PRIOR TO JOINING UH, A USI WAS THE CITY OF AUSTIN'S INSURANCE MANAGER AND I OVERSAW OUR PRIOR PHASES OF AT 5, 6, 7, AND EIGHT.

MOTION IN FAVOR.

I'M LOOKING TO THE SCREEN FOR A MOTION IN FAVOR ON ITEM NUMBER 10, SUSAN.

DISCUSSION ITEMS 11 THROUGH 15 OR SHOWING US EXACTLY WHAT WE HOPE, WHICH IS OUR PRE-VETTED ITEMS APPROVED BY US BEING APPROVED ON CONSENT BY OUR FRIENDS ON THE COUNCIL.

IS THERE A SECOND? THANK YOU, JONATHAN.

ALL IN FAVOR? ANY OPPOSED PASSES UNANIMOUSLY.

THANK YOU BENNY.

AND WELCOME TO A US UH, QUICKLY

[Items 11 - 15]

UH, I DON'T THINK THERE'S ANY DISCUSSION THAT WE NEED TO HAVE ABOUT ITEMS 11 THROUGH 15, UNLESS ANY COMMISSIONER HAS.

NOPE.

WE'LL BE TOGETHER MARCH 11TH.

UM,

[NEXT REGULAR MEETING]

UM, ANY FUTURE AGENDA ITEM REQUEST OF COURSE CAN BE SURFACED TO, TO JASON AND THE TEAM.

FEEL FREE TO INCLUDE ME BETWEEN NOW AND THEN, BUT WE CAN TALK IT OUT RIGHT NOW IF WE WANT TO, BUT WE DON'T HAVE TO.