Norfolk International outlines growth, $920M–$950M transformation and new airline coming

Mark Perryman, president and chief executive officer of Norfolk International Airport, told the Norfolk City Council during a Jan. 14 work session that the airport recorded about 4,860,000 passengers in 2024 and is pursuing additional domestic and transatlantic routes while advancing a multi‑hundred‑million dollar redevelopment program.

The airport chief framed the authority as an independent subdivision of the Commonwealth that operates largely without local tax subsidies, saying, “We own and operate the airport independent of of anyone else.” He told the council that parking and rental‑car revenue are the airport’s primary operating revenues and that airlines account for roughly 15% of operating revenue, a share he said is increasing through lease renegotiations.

Why it matters: Perryman said the authority is pursuing international service and regional partners will need to coordinate demand‑generation and incentives. He also said closing a short crosswind runway would free roughly 35 acres for redevelopment and that a major capital program will be financed primarily by the airport.

Key figures and projects

- Passenger traffic: about 4,860,000 passengers in 2024 (short of a 5,000,000 target). - Destinations: the airport serves 45 nonstop city/airport destinations (to 41 cities); Perryman said he was “shooting for 50 this year.” - Capital program: presented as roughly $920 million–$950 million (commonly rounded to $1 billion in presentations); Perryman said about 80% of that funding is expected to come from the airport’s own sources, roughly 7% from federal sources and about 1% from the state, with remaining funding from other sources. - Recent awards and work: a newly reconstructed portion of runway completed on time and under budget using a rubbleization process that Perryman said saved more than 33,000 cubic yards of landfill waste and reduced CO2 emissions and truck traffic; a new 80‑space “park and wait” lot opened during the holidays; a moving sidewalk first phase ribbon cutting was planned for Jan. 30; consolidated rental car facility (CRCF) planning and contract interviews are underway; the Federal Inspection Station/International Arrivals Facility and a concourse expansion are under construction. - Planned or proposed projects: consolidated rental car facility (projected ~$200 million), a new airport hotel (developer financing pending), redesign of the airport entrance intersection (federally funded at about $14.9 million), and a longer‑term departures terminal/curb consolidation project to simplify curb fronts and add post‑security concessions.

International service and incentives

Perryman said the airport is actively pursuing transatlantic service and told the council that landing such service typically requires communitywide incentives or revenue guarantees that mitigate airline risk. He cited recent examples used elsewhere — Indianapolis committed about $19 million in revenue guarantees to secure Aer Lingus service — and said communities often pool state and local resources to support international routes. He recommended a regional approach involving destination marketing organizations, economic development partners and business leaders rather than the airport acting alone. He said federal rules limit the airport’s ability to administer some incentive funds and that a regional entity such as a chamber or alliance typically administers them.

On timing, Perryman told the council he expected an airline announcement the following morning that would increase the number of carriers serving Norfolk from eight to nine.

Operations, community impacts and land use

Perryman described the airport as “a city within a city,” noting the authority employs roughly 225 personnel and operates its own police and fire units. He said closing the 3,800‑foot crosswind runway (Runway 14/32, referred to in discussion as 1432) pending FAA approval later in the month would free land previously reserved for runway protection and create redevelopment parcels at the airport entrance and along Robin Hood Road, producing roughly 35 acres “ready for development” once aeronautical constraints are removed. He said the airport is coordinating with city planners and neighborhood stakeholders on redevelopment concepts.

On bag delivery and passenger experience, Perryman said baggage handling is managed by airlines and highlighted two options: a capital technology solution to relocate the baggage insertion point (a roughly $40 million lift) or increased airline staffing. He said the airport will require improved bag‑delivery performance in future lease agreements and planned a tracking system to measure first bag off to carousel times.

Aircraft mix and capacity

Perryman and council members discussed general aviation mix and capacity constraints. Perryman said general aviation aircraft housed in T‑hangars often do not use airport services and that the airport is redesigning FBO and hangar space to favor corporate and higher‑activity tenants. He noted airspace and separation constraints — for example, a single‑engine Cessna requires more trail spacing relative to jets — and said moving small general aviation traffic to nearby reliever airports is a future capacity option.

Quotes

“We now serve 45 destinations, throughout the year to 41 cities,” Perryman said. “We are undertaking a billion dollar development program.”

Council response and next steps

Councilmembers asked about funding sources, duration of incentive packages (Perryman said two years is common, with packages ranging one to four years), passenger profiles, and neighborhood outreach. Perryman said airport staff are meeting with regional tourism and economic development organizations and will return to the city with more detail as incentive models, development concepts and FAA approvals proceed.

Ending

Perryman closed by noting the airport’s updated economic impact estimate, which the presentation listed at about $2.2 billion in economic activity and more than 16,000 jobs. He said the airport will continue outreach and scheduled ribbon cuttings for near‑term projects. The council then moved to the public health presentation.