Our Financial Strategy is to enhance the financial position of the Airport Authority.

SUCCESSFUL FINANCIAL STRATEGY

Successful Financial Strategy Nets Sustainable Results

At SAN, we pursue excellence in all of our business practices, including our financial strategy, by ensuring that our financial plan is flexible, nimble and able to proactively address future changes in the aviation industry and in the overall economy.

In fiscal year 2016, we experienced strong revenue growth across most sectors of our operation, including airline and non-airline categories, largely due to the opening of the Rental Car Center, an increase in enplanements and increased cost recovery. Revenue growth also occurred as a result of further development of the concessions program and upgrades to parking facilities, among other factors.

We also had a clean audit for the eighth consecutive year and no material weaknesses or significant deficiencies were identified.

In December 2016, the Airport Authority Board accepted the audited financial statements and the Comprehensive Annual Financial Report (CAFR) for FY 2016. The complete CAFR is available on the Airport Authority website at www.san.org/Airport-Authority/Financials.

Also in 2016, the Federal Aviation Administration approved the Airport Authority’s 12th Passenger Facility Charge (PFC) application for a $4.50 Passenger Facility Charge (PFC) for projects at San Diego International Airport. The approved total of $43.8 million will provide funding for passenger boarding bridge replacements, runway and taxiway pavement rehabilitation, as well as the local match to grant funding for the Quieter Home Program. The PFC has been capped at $4.50 since 2000.

As always, the challenge for the Airport Authority is continuing to provide first-class customer service and amenities while being true to our goal of being a good fiscal steward.

BUSINESS CONTINUITY &
EMERGENCY PREPAREDNESS

Successful Financial Strategy Nets Sustainable Results

San Diego depends on reliable air transportation service to help maintain the region’s economic prosperity and protect its quality of life. The San Diego County Regional Airport Authority has processes in place that ensure airport operations continue at the highest possible level during and after a disruptive event.

Specifically, the Airport Authority has developed the Business Continuity Management System (BCMS), an integrated strategy to prepare for, respond to and recover from emergencies or other business disruptions.

In 2016, the Authority conducted an Emergency Plan Review and Tabletop Exercise with tenants and responding agencies. In addition, San Diego International Airport’s (SAN) entire Airport Emergency Plan was updated and submitted to the Federal Aviation Administration for approval.

Challenges

Safety and security are top priorities at SAN, and, as such, require the active engagement and coordinated response of many different partners. To ensure proper coordination, emergency incident responsibilities for tenants, responding agencies, and appropriate Authority departments must be constantly reinforced and practiced.

Look Ahead

Over the next couple of years, two new Aircraft Rescue and Fire Fighting (ARFF) vehicles will be purchased to replace older, maintenance-intensive equipment. These specialty vehicles are critical for SAN’s effective and timely response to any airport ground emergency.

ECONOMIC CONTRIBUTIONS

Successful Financial Strategy Nets Sustainable Results

San Diego International Airport (SAN) is essential to the economic growth and wellbeing of the greater San Diego region. Based on a 2012 study, SAN contributes about $10 billion annually in economic benefit to the region.

SAN also provides continuous employment to roughly 8,000 people who work full-time at the airport. In fact, about one of every 16 jobs in the region is directly or indirectly related to airport operations.

For example, the Rental Car Center, which opened in January 2016, generated approximately 4,600 construction jobs, with $186 million in construction contracts going to local and small businesses.

Challenges

With SAN's constrained 661-acre site, the Airport Authority must find innovative ways to meet future air travel demand, forecasted to be over 25 million passengers annually by 2035.

Look Ahead

By summer 2017, two new international flights will begin direct service from San Diego to European destinations – Frankfurt, Germany and Zurich, Switzerland. This international service is expected to bring significant economic benefits to the region. For example, the current Japan Airlines service to Tokyo generates an estimated $90 million positive economic impact every year to San Diego.

ECONOMIC CONTRIBUTIONS

$234

Million


2014 total revenue by fiscal year
$270

Million


2014 total revenue by fiscal year
$303

Million


2015 total revenue by fiscal year
$000

Million


2016 total revenue by fiscal year

INFRASTRUCTURE IMPROVEMENTS & FINANCING