Case Study: Springfield-Branson Regional Airport

In 1999 the Springfield-Branson Regional Airport (SGF) retained ACSG to investigate the feasibility of using an LOI to fund the reconstruction of their primary runway. As a result of extensive engineering testing and analysis of alternatives, it was determined that the runway required a full length and full depth reconstruction. Due to the length and intersection location of the crosswind runway, this project would have essentially closed the airport to all commercial service for most of a construction season. Project phasing and around the clock construction would have had little mitigating impact on the situation.

It was determined that extending the crosswind runway, prior to reconstructing the primary runway, was the only way to avoid this situation. It was also determined that funding the estimated $34 million project could only be accomplished through the issuance of an LOI. As noted above, reconstruction of the primary runway at a small hub airport is exempt from conducting a BCA, however, due to the major costs involved in the “temporary” additional components of this project, the BCA became the key component of the LOI application.

During the BCA analysis, ACSG determined that merely extending the crosswind runway was insufficient to significantly mitigate the negative impact on commercial traffic caused by closing the primary runway for several months. FAA headquarters indicated that this LOI application would be the first submitted which identified the alternative to approval being the closing of an air carrier airport for an extended period. This fact, however, in no way reduced the application or BCA requirements.

To most fully mitigate the impact of closing the primary runway, ACSG was able to prove a benefit vs. cost ratio, which included construction of new partial parallel taxiways to both runways, on the side of the runways opposite the existing taxiway system. Installation of an ILS on the crosswind runway was also included. As a practical matter, the newly extended crosswind runway would become the primary runway, and the newly reconstructed primary the crosswind runway. Over the years, the original crosswind runway actually began providing slightly better wind coverage, especially during IFR operations.

A key component of the application included a new determination of the “critical aircraft” and the site-specific requirements of that aircraft. Determining that the B-727 operated by UPS was the “critical aircraft” was very straightforward. Because of the unusual nature of this project, FAA required a 10-year analysis of wind and temperature trends, as well as, IFR/VFR historical weather patterns for the same period. This does not extend too far beyond normal requirements, however, justifying aircraft operating requirements does. We were not able to use the normal Advisory Circular for determining runway length requirements. ACSG was required to use the actual aircraft configuration, typical payloads and stage lengths of the UPS specific operation, and the performance requirements for the type of engines mounted on the aircraft. UPS had elected to replace their B-727 engines with Rolls Royce Tay engines rather than installing “hush kits” on the Pratt and Whitney’s, and the FAA had not yet published the operating parameters for this combination. Resolving this issue involved extensive coordination with UPS flight operations managers and the FAA Office of Aircraft Certification.

Developing the BCA required a determination of the actual costs, which would be incurred, by all parties, if SGF closed to commercial traffic for over 4 months. The first difficult component of this analysis involved estimates of the number of passengers who would be totally lost, i.e. cancel trips and not fly at all. Next the value of lost time for passengers driving to Kansas City or St. Louis was determined. These figures had to be categorized between leisure and business travelers, as the DOT accepted value of time is different. Finally, ACSG was able to ascertain the most sensitive proprietary information from the carriers: per passenger yield for SGF from the airlines and monthly net profit at SGF from the cargo carriers. This information was consolidated in such a manner that the numbers for no single carrier could be identified and made available to FAA as backup data, outside of the LOI application, within FAA rules for handling proprietary airline information and preventing its disclosure to any outside party.

Initial review and completion of the application, especially the BCA portion, required several coordination trips, by ACSG, to meet with FAA personnel in Washington. The final application document, the size of a typical airport master plan, was submitted in February 2000. That following November, Missouri’s United States Senators announced the approval of $30.1 million in AIP funds, to be allocated over a period of 5 years, for the project. Conditioned upon the approval of the LOI, SGF issued $35 million in bonds backed primarily by the LOI, allowing them to immediately begin construction on both runways, as opposed to waiting for the annual LOI grants.

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