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SFO Director Says Passenger Traffic Is Surging; Committee Tentatively Accepts Analyst Reductions
Summary
Airport Director John Martin told supervisors SFO is tracking 11% growth and expects about 42 million passengers this year while proposing major capital projects; the committee tentatively accepted the budget analyst—s recommended reductions for the airport pending public comment tomorrow.
John Martin, Director of the San Francisco International Airport, briefed the Budget & Finance Committee on the airport—s performance and proposed two-year budget. Martin said traffic has increased about 11% year-over-year over the last four months and projected roughly 42 million passengers for the year, noting this would place SFO among the nation's top eight airports by passenger volume.
He outlined a substantial capital program — described as $2.0–$2.5 billion in projects over the next 10 years — that includes Terminal 3 upgrades, a large Terminal 1 project beginning in 2014, runway safety improvements mandated by the FAA (about $220 million) and a new air-traffic control tower. The airport is planning incremental terminal work, temporary boarding areas during construction and other capacity measures to address the rapid growth and on-time performance challenges.
Martin said concession and parking revenues have grown sharply (including an annual parking revenue increase he characterized as ‘‘almost $25,000,000"). He described local contracting and hiring performance: 57% local participation in construction dollars and 43% of concession leases to local businesses. He also discussed language access services (Polaris contractors, volunteers and a 170-language language line) and summer intern workforce programs (an increase from 126 to 135 placements).
During questioning supervisors pressed on aircraft-size mix and regulatory constraints. Martin said the airport has limited legal authority to require airlines to use larger aircraft; the FAA could impose slot or scheduling controls but historically has not required aircraft-size changes. He noted the airport charges weight-based fees under current airline leases and has limited leverage to change pricing to incentivize larger aircraft.
Budget Analyst Mr. Rose presented recommended reductions for the airport budget (detailed in distributed materials). Chair Carmen Chu said the committee would tentatively accept the analyst's recommendations for the airport and port pending public comment the following day; the motion to tentatively accept the analyst recommendations was made and carried without objection.
