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Agenda Item
ASR
Control 24-000492 |
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MEETING
DATE: |
07/23/24 |
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legal entity taking action: |
Board
of Supervisors |
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board of supervisors district(s): |
5 |
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SUBMITTING Agency/Department: |
John
Wayne Airport (Approved) |
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Department contact person(s): |
Charlene
V. Reynolds (949) 252-5183 |
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Eric
R. Freed (949) 252-5043 |
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Subject: John
Wayne Airport Capacity Allocations for 2025 Plan Year
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ceo CONCUR |
County Counsel Review |
Clerk of the
Board |
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Concur |
No Legal Objection |
Consent Calendar |
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3 Votes Board Majority |
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Budgeted: N/A |
Current
Year Cost: N/A |
Annual
Cost: N/A |
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Staffing
Impact:
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No |
#
of Positions: |
Sole
Source: N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 8/8/2023 #4, 11/8/2022 #2 |
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RECOMMENDED
ACTION(S):
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1. |
Authorize the Airport Director to
allocate Class A and Class E Average Daily Departures and Seat Capacity to
Qualified Commercial Passenger and Commercial Cargo Air Carriers and
Passenger Capacity to Qualified Commuter Passenger Air Carriers for the 2025
Plan Year (January 1, 2025, through December 31, 2025), as reflected on
Attachments A and B, and in a manner consistent with the terms of the Phase 2
Commercial Airline Access Plan and Regulation. |
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2. |
Authorize the Airport Director to
withdraw Seat Capacity during the 2025 Plan Year if it becomes necessary to
ensure compliance with the 11.8 million annual passenger limitation at John
Wayne Airport, consistent with the requirements set forth in Section 6 of the
Phase 2 Commercial Airline Access Plan and Regulation. |
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3. |
Authorize the Airport Director to
allocate or reallocate any additional Regular or Supplemental Average Daily
Departures and any necessary associated Seat Capacity, which may become
available during the 2025 Plan Year, in a manner consistent with the terms of
the Phase 2 Commercial Airline Access Plan and Regulation. |
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4. |
Authorize the Airport Director to
allocate additional Supplemental Seat Capacity to Qualified Commercial
Passenger Air Carriers during the 2025 Plan Year if it is determined that
such allocations can be made without jeopardy to the 11.8 million annual
passenger limitation of the 1985 Settlement Agreement, as amended, entered
into by and between the County and the Orange County Board of Supervisors,
the City of Newport Beach, Stop Polluting Our Newport, and the Airport
Working Group of Orange County, Inc. and the Phase 2 Commercial Airline
Access Plan and Regulation. |
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5. |
Authorize the Airport Director to waive
Section 5.1.1 of the Phase 2 Commercial Airline Access Plan and Regulation
and allocate 28 Remain Overnight positions for Commercial Air Carrier use
during the 2025 Plan Year, pursuant to Section 5.1.1, as reflected in
Attachment A, and provide authority to withdraw the additional Remain
Overnight position for safety or operational purposes, as required. |
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6. |
Authorize the Airport Director to
allocate Passenger Capacity and Remain Overnight positions and authorize the
Airport Director to allocate any additional Supplemental Passenger Capacity
and Remain Overnight positions to Qualified Commuter Carriers during the 2025
Plan Year if it is determined that such allocations can be made without
jeopardy to the 11.8 million annual passenger limitation. |
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7. |
Find that the County retains and
reaffirms its sole and exclusive discretion to require mandatory withdrawals
of operational capacity in any form if the County determines such action to
be appropriate to ensure continued compliance with the 11.8 million annual
passenger limitation or for any other reason, consistent with the
requirements set forth in Section 6 of the Phase 2 Commercial Airline Access
Plan and Regulation. |
SUMMARY:
Approval of the
proposed allocation of Regulated Average Daily Departures, Seat Capacity,
Remain Overnight Capacity and Passenger Capacity to scheduled Commercial
Passenger Air Carriers, Commercial Cargo Carriers and Commuter Passenger Air
Carriers will provide John Wayne Airport with the necessary authority to ensure
compliance with the County's Phase 2 Commercial Airline Access Plan and
Regulation for the 2025 Plan Year.
BACKGROUND
INFORMATION:
Community Impact Assessment
The 2025
allocation recommendations have been made in the context of carefully balancing
the needs of the air traveling public for adequate commercial air
transportation services and the desire of the local community for
environmentally responsible air transportation operations at John Wayne Airport
(JWA). In addition, the allocation recommendations further reflect the
experience of the County of Orange (County) in the management and operation of
JWA and addressing the public concerns resulting from operation of the Airport.
Regulatory Structure
Consistent with
the 1985 Settlement Agreement, as amended, and the Phase 2 Commercial Airline
Access Plan and Regulation (Access Plan), regulation of a maximum number of
Average Daily Departures (ADD) is one of two principal restraints imposed by
the County to control aircraft noise in residential areas around JWA.
Limitation on the maximum number of ADDs has been an element of the County’s
regulation of JWA since 1972. The Board of Supervisors (Board) previously
approved capacity allocations on August 8, 2023, and November 8, 2022.
There are
presently two defined classes of ADDs, Class A and E. The class of aircraft
permitted the highest relative single event noise level is Class A. Based on
the 1985 Settlement Agreement, as amended, the County is authorized to allocate
up to 95 Class A ADDs (January 1, 2021, through December 31, 2025). The
quietest class of aircraft is Class E. The County is authorized to allocate up
to 14 permanent Class E ADDs; however, the absolute number of maximum Class E
Authorized Departures is not directly regulated by the County. Instead, the
maximum number of Class E Authorized Departures is limited by the current
million annual passengers (MAP) limitation of 11.8 MAP, which is the second
principal restraint, under the 1985 Settlement Agreement, as amended, and the
Access Plan.
The Access Plan
identifies both Regular and Supplemental capacity allocations. The principal
difference is that Regular ADDs are allocated on a long-term basis, while
Supplemental ADDs are allocated on a short-term basis. The Regular ADDs form
the foundation for commercial operations at JWA, while the Supplemental ADDs
are allocated each Plan Year to maximize operational capacity while maintaining
flexibility to ensure that the total passenger service level remains within the
MAP limitation.
Attachment A
identifies the specific ADD, Seat Capacity, and RON allocations for Qualified
Air Carriers recommended by JWA for the 2025 Plan Year. The recommended
Passenger Capacity and RON allocations to Qualified Commuter Carriers for the
2025 Plan Year are set forth in Attachment B.
New Entrant Allocations
While JWA is not
recommending a capacity allocation to a new entrant Commercial Air Carrier for
the 2025 Plan Year, JWA is requesting authorization to allocate 5,588
passengers to one new entrant Commuter Carrier, Southern Airways Express, for
use during the 2025 Plan Year. Southern Airways Express is the only carrier on
the new entrant Commuter Carrier waiting list and can be accommodated within the
400,000 passengers set aside for Commuter Carriers.
Associated Operating Group Provisions
The Access Plan
allows carriers to declare annually an Associated Operating Group (AOG) for
purposes of conducting operations at JWA. AOGs are formed by carriers
interested in sharing capacity among AOG members. Alaska/Horizon and
Delta/WestJet have requested to operate as members of two separate AOGs during
the 2025 Plan Year.
The historical
purpose for these provisions is to ensure against a group of Affiliated
Carriers gaining an advantage over competitors solely because of the way in
which they have chosen to organize themselves for business purposes. The
recommended allocation to Alaska/Horizon and Delta/WestJet reflects AOG
provisions of the Access Plan, and is set forth in Attachment A.
Allocation of Permanent Class E ADDs
The Access Plan
allows an allocation of up to 14 permanent Class E ADDs by means of a trade-out
voluntarily undertaken by the Air Carriers. Specifically, one Class A ADD can
be traded for two new permanent Class E ADDs. Currently, Southwest operates all
14 permanent Class E ADDs through December 31, 2025, as set forth in Attachment
A.
Allocation of Class A ADDs Currently Under Direct
County Control
The County
currently has three Class A ADDs within its control. In recent Plan Years, JWA
has requested authorization to allocate County-controlled Class A ADD capacity
on a permanent or supplemental basis. In order to maintain the MAP limitation
at the Airport, JWA is unable to allocate additional County-controlled Class A
ADDs to the Commercial Passenger Air Carriers on a regular permanent or
supplemental basis for use during the 2025 Plan Year.
Allocation of Class A Departures for Commercial Cargo
Operations
The
Access Plan provides the County with the ability to allocate up to four
Commercial Cargo Class A ADDs and the discretion to allocate up to two of these
four Commercial Cargo Class A ADDs to passenger carriers when not requested for
cargo operations at JWA. This capacity, however, may only be allocated on a
supplemental basis for one Plan Year in any year where Commercial Cargo
Carriers have not requested those ADDs.
FedEx and UPS have
each requested one Cargo Class A ADD, which are being recommended for
allocation to them through December 31, 2025. In order to maintain the MAP
limitation, JWA is unable to allocate two additional Cargo Class A ADDs to the
Commercial Passenger Air Carriers for use during the 2025 Plan Year.
Seat
Capacity Allocations
A total of
16,592,653 seats were requested by the Air Carriers as part of the 2025 Plan
Year allocation process. JWA is requesting to allocate a total of 13,817,952
seats for the 2025 Plan Year. Historically, the number of seats allocated
exceeds the 11.8 MAP limitation because Air Carrier load factors (seats filled
vs. seats available) is less than 100 percent.
A total of 11,867,508
seats are recommended for allocation in support of Class A and permanent Class
E operations. A total of 1,950,444 seats are recommended for allocation in
support of Supplemental Class E operations, as set forth in Attachment A.
Section 6 of the
Access Plan outlines provisions which permit the County to withdraw operational
capacity at such times, on such conditions, and for such reasons as the County,
in its sole and exclusive discretion, determines are appropriate to ensure that
the MAP limitation is not exceeded during any Plan Year, or for any other
reason.
Air
Carrier Remain Overnight (RON) Allocations
A total of 28 RON
positions were requested for the 2025 Plan Year. Section 5.1.1 of the Access
Plan provides for an allocation of 27 Air Carrier RONs. The Airport is
requesting the Board waive the RON limit to accommodate the one additional RON
requested for the 2025 Plan Year.
Passenger Capacity Allocations to Commuter Carriers
Two Qualified
Commuter Carriers, SkyWest Airlines and Delux Public Charters, LLC (JSX), have
requested Passenger Capacity allocations for the 2025 Plan Year. SkyWest has
requested an allocation of 223,653 (Delta Connection – 176,702, United Express
– 46,951) passengers. JSX has requested an allocation of 228,082 passengers. As
discussed above, one new entrant Commuter Carrier, Southern Airways Express,
has requested an allocation of 5,588 passengers. Section 3.5.1 of the Access
Plan creates a Passenger Capacity set
aside for the allocation of 400,000 Authorized Passengers.
JWA recommends
that 5,588 passengers be allocated to Southern Airways Express, and 197,206
passengers be allocated to SkyWest for use during the 2025 Plan Year. JWA recommends that 197,206 passengers be conditionally allocated to JSX for use
during the 2025 Plan Year and is discussed below. Therefore, JWA recommends
that 400,000 passengers (197,206 conditionally) be allocated for Commuter
Carrier use during the 2025 Plan Year, as set forth in Attachment B.
JWA requests authority to make
supplemental allocations of additional Authorized Passengers during the 2025
Plan Year if Commuter Carrier capacity requests are received and if actual
operations during the Plan Year indicate that supplemental capacity allocations
would not jeopardize the 11.8 MAP limitation.
JSX Allocation Conditions
JSX operates at
ACI Jet’s Fixed-Base Operator (FBO) leasehold, an operational plan that was
previously granted in lieu of operating out of the JWA Thomas F. Riley
(Terminal). Pursuant to Section 8.1.7(b) of the Access Plan, JSX was
conditionally permitted to operate at ACI Jet's FBO leasehold during the 2018
Plan Year subject to completion of the necessary environmental review and
analysis relating to parking and traffic impacts of its operations, and
implementation of any necessary related mitigation. Under Section 8.1.7(b) of
the Access Plan, discretion is provided to the Airport Director to permit a
Qualified Commuter Air Carrier to conduct passenger operations at the location
of an FBO, which is a tenant of the County. JSX has conducted operations out of
ACI Jet’s FBO leasehold for the 2018 through 2024 Plan Years.
JSX has again
requested to operate at ACI Jet’s FBO leasehold during the 2025 Plan Year.
Consistent with operations by JSX during the past seven Plan Years, JSX may
operate at ACI Jet’s FBO leasehold to the extent its operations fall within the
95,070 passenger levels, which is the allowance provided by previous
environmental review of Commuter Carrier parking and traffic impacts at FBOs.
To the extent JSX wishes to provide operations over its current allocation of
95,070 passengers during the 2025 Plan Year, JSX must move all operations to
the Terminal. Essentially then, JSX can either operate 95,070 passengers at ACI
Jet’s FBO leasehold during the 2025 Plan Year, subject to ACI Jet approval, or
move its operations entirely to the Terminal and provide operations for up to
197,206 passengers, subject to full Transportation Security Administration
(TSA) screening and security requirements.
RON
Allocations to Commuter Carriers
In addition to the 28 RON positions
requested for Commercial Air Carrier use, the Access Plan permits up to six RON
positions for allocation to Commuter Air Carriers. JSX has requested an
allocation of three RON positions, along with SkyWest (Delta) and Southern
Airways Express, each requesting an allocation of one RON position for the 2025
Plan Year. JWA requests authority to allocate RON apron positions as follows:
three positions to JSX, and one position each to SkyWest (Delta) and Southern
Airways Express for use during the 2025 Plan Year. All five Commuter Air
Carrier RON apron position allocations will be located on the commercial ramp
for use during the 2025 Plan Year.
Compliance
with CEQA: The
proposed action is a necessarily included element of the project considered in
Final Environmental Impact Report (EIR) No. 617 for the JWA Settlement
Agreement Amendment Project, certified by the Board on September 30, 2014,
which adequately addressed the effects of the proposed action. No substantial
changes have been made in the project, no substantial changes have occurred in
the circumstances under which the project is being undertaken and no new
information of substantial importance to the project, which was not known, or
could not have been known, when the Final EIR No. 617 was certified, has become
known; therefore, no further environmental review is required.
FINANCIAL IMPACT:
N/A
STAFFING IMPACT:
N/A
ATTACHMENT(S):
Attachment A - Plan Year 2025
Commercial Carrier and Commercial Cargo Carrier Capacity Allocation
Attachment B - Plan Year 2025 Commuter Carrier Capacity Allocation