1. Planning for Terminal Area Vertical Takeoff and Landing (VTOL)
Noah Karberg, CM and Tom Rafter, AAE Nantucket Memorial Airport
2019 NEC/AAAE Airports Conference 3/29/19

2. 2019 NEC/AAAE Airports Conference 3/29/19
Outline
Introduction to VTOL & eVTOL
Threat vs. Opportunity?
Ground Transport or Aircraft Operator?
ACK Interest
Operating Concepts
Conclusions
2019 NEC/AAAE Airports Conference 3/29/19

3. Introduction to VTOL – What?
VTOL Extant: See Harrier
eVTOL
In development (Boeing, Bell, Embraer)
Electric/hybrid
100sm/5 PAX
Role of Autonomy
2019 NEC/AAAE Airports Conference 3/29/19

4. Introduction to VTOL – When?
Deployment? Depends who you ask…
AOPA: “a long time”
Aviation industry: 10+ years/Maybe 2030
Uber Elevate: 2023 in Dallas & Los Angeles
Transcend Air: 2024 Boston - NYC
Eviation: 2022
Forbes: $2B investment in 135 aircraft
Morgan Stanley: $2.9T by 2040
2019 NEC/AAAE Airports Conference 3/29/19

5. Introduction to VTOL – How?
2019 NEC/AAAE Airports Conference 3/29/19

6. Introduction to VTOL – How?
Traditional
Disruptive
Aircraft certificate
Fleet purchase
Service announced
Airport FAM
Service start
2019 NEC/AAAE Airports Conference 3/29/19

7. Is VTOL a Threat or Opportunity?
Threats:
Technology deployed faster than FAR’s are developed
Anticipated deployment tactics: See Uber
Unmanned/Airspace integration
Catchment Leakage
2019 NEC/AAAE Airports Conference 3/29/19

8. Is VTOL a Threat or Opportunity?
Now is the time to identify needs: concurrent with CIP
A solution to the Pilot Shortage?
Answer to unoccupied vehicle parking?
Catchment expansion
2019 NEC/AAAE Airports Conference 3/29/19

9. Is VTOL a Threat or Opportunity?
Ultimately a Strategic and Practical Determination
PAX Profile
O&D vs. Connecting
Space Constraints
Ground Transport Performance
Air Service Synergies
2019 NEC/AAAE Airports Conference 3/29/19

10. IS VTOL a Ground Transport Provider or Aircraft Operator?
“Point to Point” Network Strategy
Initial policy positions:
Operate <500’ AGL
Expansion of existing TNC model
Originating vehicle fees are common at airports
Airports shut out/passive so far
Autonomy and AOA access vs. 1542
2019 NEC/AAAE Airports Conference 3/29/19

11. IS VTOL a Ground Transport Provider or Aircraft Operator?
Fundamentally an aeronautical use.
UAS is growing up as a child of FAR
Even <500’ AGL, part of NAS
Eventual pushback (noise, aesthetics, landing) need FAR coverage to avoid local regulations
Grant Assurance protections
Part 161/Stage 3 compliance status
2019 NEC/AAAE Airports Conference 3/29/19

12. IS VTOL a Ground Transport Provider or Aircraft Operator?
A hybrid model remains a possibility:
Concurrent Air and Landside
Fence straddling operation
Certification requirements (Commercial Airports vs. Heliports)
Cost Centers and Rate Making
2019 NEC/AAAE Airports Conference 3/29/19

13. ACK Interest and Opportunity
Loss of Mainland Connectivity
2019 NEC/AAAE Airports Conference 3/29/19

14. ACK Interest and Opportunity
Loss of Mainland Connectivity
2019 NEC/AAAE Airports Conference 3/29/19

15. ACK Interest and Opportunity
Declining revenue (Loss of 170,000 enplanements.
Reduced Impact (Sponsor approval of projects)
Loss of Community Benefit (1-2+ hr boat ride vs. 15 min flight)
2019 NEC/AAAE Airports Conference 3/29/19

16. ACK Interest and Opportunity
Tourism/Historic District/Local ordinance
Time is Money
Too Big to Fail/Summer Finance?
2019 NEC/AAAE Airports Conference 3/29/19

17. Concept: Landside Operation (Concession Development)
Space Plan: Close-in parking
21,780 ft2
≈ 10 hourly ops
Revenue Structure:
Originating TNC fee
FMV Rent w/ MAG
Approach: 1x operator Master Concession
2019 NEC/AAAE Airports Conference 3/29/19

18. Concept: Landside Revenue
TNC-type Fee:
MassPort: $3.25 origination fee
33,600 arrivals, assumes:
5 seats
50% LF
= $109,200/yr
Rental Structure:
Fair Market Value: $4.26 per ft2 for 21,780 ft2
= $92,783/yr
+ 10% handling fee on other operators
MAG = $150,000
+ $259,200: a 2.5% increase in ACK Total Revenue
2019 NEC/AAAE Airports Conference 3/29/19

19. Concept: Airside Operation (Aeronautical Agreement)
Part 135 Commuter
Terminal tenant (non-sterile)
Signatory treatment
Commercial Enplaned PAX
PFC
Entitlement
Minimum Counter/office space
2019 NEC/AAAE Airports Conference 3/29/19

20. Concept: Airside Revenue
Landing Fee: $103,824
PAX Spend: $73,920
Business Rent/Fees: $33,780
PFC: $367,920
Entitlement: $218,400
=$797,844 (+ 9% increase to ACK Total Revenue)
2019 NEC/AAAE Airports Conference 3/29/19

21. 2019 NEC/AAAE Airports Conference 3/29/19
Concept Summary
Landside:
Less revenue
Less impact
Aeronautical:
More revenue
More congestion
2019 NEC/AAAE Airports Conference 3/29/19

22. 2019 NEC/AAAE Airports Conference 3/29/19
Conclusions
Many unknowns – that’s OK
General synergy – vehicle parking and small community air service
Early adopters stand to benefit
Long Term Threat: marginalize non and small hubs, unless
Regulatory Framework (perimeter rule/scope clause)
Require System Funding
2019 NEC/AAAE Airports Conference 3/29/19

23. 2019 NEC/AAAE Airports Conference 3/29/19
Conclusions
5. Conflict: Dominant mainline carriers protecting markets vs. a public getting tired of the traditional PAX experience
2019 NEC/AAAE Airports Conference 3/29/19