New law could pump millions into airport improvements

By Melanie LeMay

Photos courtesy of the Montgomery Airport Authority The Montgomery Regional Airport recently installed the east ramp construction fence that separates the Phase 2 terminal construction site from the secure flight line area.

Alabama's economy could get a shot in the arm with even minimal investments in its airports. That's the word from Envision 2020, which reports that for every dollar invested in Alabama's aviation system, $163 returns to the economy.

Alabama House Bill 122, currently under consideration, could pump more than $7 million annually into airport funding. The bill seeks to remove the existing cap of $600,000 on jet fuel tax collection for the state, which proponents say is out of line with such taxes levied in other Southeastern states. The amount collected on fuel taxes is available for federal matching funds, and since other states collect far greater amounts, their matching funds are correspondingly larger.

As an example, to Alabama's annual take of $600,000 in fuel taxes, Florida collects $130 million, Tennessee collects $22.5 million, Georgia collects more than $35 million and Mississippi collects $1.8 million.

Lifting Alabama's cap on fuel tax would generate about $2 million each year. According to the provisions of HB122, the remaining $5 million would come from automotive sales taxes, which would be earmarked specifically for airport improvements.

Photos courtesy of the Montgomery Airport Authority This is a view of the west end of the Montgomery Regional Airport’s terminal. The brick structure (middle of the picture) will house elevator stairs and serve as the jet bridge anchor base. The expanded baggage make-up area is on the first level while the second level is a passenger boarding area.

Officials at Montgomery Regional Airport feel the pressure to meet increasing demand for services, as well as the need to comply with increased security requirements. The airport is already well under way with a three-phase program to renovate and expand airport facilities.

According to Phil Perry, executive director, phase one is about 60% complete and should be finished within a year. Phase two is just getting started and phase three awaits funding. The scope of that final phase has changed somewhat, Perry said, because of increased security requirements since the terrorist attacks on Sept. 11. The airport has just recently let the contract to refine and define expansion of the terminal under phase three.

Perry says the airport can't depend on passage of HR122 to fund the expansion, however. "The first two phases have been funded from the Montgomery Airport's federal Airport Improvement Program (AIP) entitlements, federal congressional discretionary grants and the Airport Authority's funds," Perry said. "None of this funding is coming from the state's Airport Development Fund."

Should the Airport Development Fund be increased by an additional $7.7 million per year, the airport "might receive some of that state money," Perry said, "and indeed, that money might be used for the terminal renovation. However, unless and until that increase in state funding occurs, we are proceeding with our attempts to obtain funding with the help of our federal Congressional delegation."

Perry hopes to see funding in place within a year.

Airport at a glance ENPLANEMENTS: While passenger boardings have declined 10 percent-15 percent nationwide, Montgomery Regional Airport had 18,151 enplanements in June, only 3 percent less than June 2002 boardings. The airport's year-to-date enplanements are down 5.77 percent. The airport had 35,632 total passengers in June for a year-to-date total passenger count of 195,504. SECURITY UPGRADE: The Airport Authority awarded a $350,000 contract to ADT security systems to replace aging electronic gate access and video-surveillance equipment with new, state-of-the-art hardware and supporting computer software. Funding for the security upgrade and terminal renovation is a combination of federal funds via the Airport Improvement Program (AIP), congressional discretionary grants and airport funds. PARKING: To relieve parking lot overflow, especially during holidays or peak travel months, an addition 78 parking spaces were created by the removal, repaving and marking of the old Hertz vehicle facility. This brings the total number of parking slots at the airport to 820 -- 140 short term, 601 long term and 78 overflow. An ad hoc parking lot committee continues to explore long-term parking lot expansion alternatives, such as the addition of another parking level, modifying the terminal's main “ingress and egress” access road and interfacing with the city's public transportation system.

Phase one of the airport renovation/expansion includes an addition of more than 24,500 square feet, a second-floor concourse, public restrooms and retail areas. Also part of this phase is a new heating, ventilation and air conditioning central plant to serve both the renovated and expanded structures.

Perry notes that part of phase one includes a nod to increased security requirements, a bag makeup area where airlines can efficiently prepare passenger luggage for flight in a secure environment.

Phases two and three will provide a new glass and steel front for the terminal, a new ground-level boarding area for turbo-prop aircraft and a large rotunda with passenger waiting areas, boarding gates, retail, dining, administrative areas and security.

The expansion will support increased air traffic from Delta Air Lines, US Air and Northwest Airlines, bringing the total number of daily flights to 19. Officials anticipate that private hangars also will be developed for such clients as Hyundai.

Envision 2020 puts the total economic impact of the state's commercial service airports at $3.89 billion and notes that those businesses provide 63,942 jobs throughout Alabama. General aviation airports contribute an additional $800 million to the economy and provide more than 9,000 additional jobs throughout the state.

Melanie LeMay is a freelance writer based in Montgomery.