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Agenda Item
ASR
Control 19-000927 |
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MEETING DATE: |
09/10/19 |
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legal entity taking action: |
Board of Supervisors |
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board of supervisors
district(s): |
2 |
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SUBMITTING
Agency/Department: |
John Wayne Airport
(Approved) |
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Department contact
person(s): |
Barry A. Rondinella (949) 252-5183 |
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Eric R. Freed (949) 252-5043 |
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Subject: John Wayne Airport Capacity
Allocations for 2020 Plan Year
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ceo CONCUR |
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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: |
No |
# of Positions:
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Sole Source:
N/A |
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Current Fiscal Year Revenue: N/A
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Prior Board Action: 09/11/2018
#7, 10/17/2017 #6, 10/25/2016 #12, 10/27/2015 #8 |
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RECOMMENDED ACTION(S):
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1. |
Find that Final Environmental Impact Report No. 617, previously certified by the Board of Supervisors on September 30, 2014, reflects the independent judgment of the County of Orange and satisfies the requirements of the California Environmental Quality Act for the John Wayne Airport Capacity Allocations for the 2020 Plan Year, which is a necessarily included element contemplated as part of the whole of the action. |
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a. |
The circumstances of the project are substantially the same as described in Environmental Impact Report No. 617, which adequately addressed the effects of the proposed project. No substantial changes have been made in the project, no substantial changes have occurred with respect to 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 previous Environmental Impact Report No. 617 was certified, has become known and no further environmental review is required. |
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b. |
Environmental Impact Report No. 617 is adequate to satisfy the requirements of California Environmental Quality Act for the John Wayne Airport Capacity Allocations for Plan Year 2020. |
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c. |
All mitigation measures are fully enforceable pursuant
to California Environmental Quality Act (Public Resources Code) Section
21081.6(b) and have either been adopted as conditions, incorporated as part
of the project design or included in the procedures of project
implementation. |
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2. |
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 2020 Plan Year (January 1, 2020, through December 31, 2020), 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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3. |
Authorize the Airport Director to withdraw Seat Capacity during the 2020 Plan Year, if it becomes necessary to ensure compliance with the 10.8 million annual passenger limit 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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4. |
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 2020 Plan Year in a manner consistent with the terms of the Phase 2 Commercial Airline Access Plan and Regulation. |
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5. |
Authorize the Airport Director to allocate additional Supplemental Seat Capacity to Qualified Commercial Passenger Air Carriers during the 2020 Plan Year if it is determined that such allocations can be made without jeopardy to the 10.8 million annual passenger limitation of the Phase 2 Commercial Airline Access Plan and Regulation. |
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6. |
Authorize the Airport Director to waive Section 5.1.1 of the Phase 2 Commercial Airline Access Plan and Regulation and allocate up to 30 Remain Overnight positions for Commercial Air Carrier use during the 2020 Plan Year, pursuant to Section 5.1.1, as reflected in Attachment A, and provide authority to withdraw the additional three Remain Overnight positions for safety or operational purposes, as required. |
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7. |
Authorize the Airport Director to allocate additional Supplemental Passenger Capacity and Remain Overnight positions to Qualified Commuter Carriers during the 2020 Plan Year if it is determined that such allocations can be made without jeopardy to the 10.8 million annual passenger limitation. |
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8. |
Find that the County of Orange retains and reaffirms its
sole and exclusive discretion to require mandatory withdrawals of operational
capacity in any form if the County of Orange determines such action to be
appropriate to ensure continued compliance with the 10.8 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 of Orange's Phase 2 Commercial Airline Access Plan and Regulation for the 2020 Plan Year (January 1, 2020, through December 31, 2020).
BACKGROUND INFORMATION:
Regulation of the maximum permissible number of Average Daily Departures (ADDs) is one of two principal restraints imposed on John Wayne Airport (JWA) operations to control aircraft noise in residential areas around the airport. The maximum permissible number of ADDs has been an element of the regulation of JWA since 1972.
There are two defined classes of ADDs in the Phase 2 Commercial Airline Access Plan and Regulation (Phase 2 Access Plan): Class A and Class E. The class of aircraft permitted for the highest relative single event noise level is Class A. The quietest class of aircraft is Class E. The County of Orange (County) allocates up to 14 permanent Class E ADDs; however, the maximum permissible Class E Authorized Departures is not directly regulated by the 1985 Settlement Agreement, as amended. Rather, the maximum permissible number of Class E Authorized Departures is limited by the current 10.8 million annual passengers (MAP).
The Phase 2 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, usually for one Plan Year. Pursuant to the 2014 Settlement Amendment, there are 85 Class A ADDs, along with four Class A Cargo ADDs through December 31, 2020. The Regular ADDs are the foundation for Air Carrier operations at JWA, while the Supplemental ADDs are allocated each Plan Year to maximize operational capacity while maintaining sufficient flexibility to ensure that total passenger service level remains within the MAP limitation.
The Board of Supervisors (Board) previously approved capacity allocations on September 11, 2018, October 17, 2017, October 25, 2016 and October 27, 2015. In connection with the annual process for allocating operating capacity for the 2020 Plan Year, and consistent with past Plan Year allocations, JWA requested that each interested incumbent and new entrant Air Carrier and Commuter Carrier submit its capacity requests for the 2020 Plan Year. JWA staff has carefully reviewed those requests and all related information. This Agenda Staff Report (ASR) contains JWA's specific allocation recommendations for the 2020 Plan Year and a discussion of the basis for those recommendations.
The recommendations provided in this ASR achieve several objectives: (1) accommodate, to the extent possible, the ADD, Seat Capacity, Remain Overnight (RON) and Passenger Capacity requests received from the incumbent Air Carriers and Commuter Carriers; (2) provide internal County controls in order to ensure compliance with the MAP limitation and the annual cap on numbers of Regulated ADDs; and (3) meet all other legal and regulatory obligations.
Attachment A identifies the specific ADD, Seat Capacity and RON allocations for incumbent Air Carriers recommended by JWA for the 2020 Plan Year. The recommended Passenger Capacity and RON allocations to incumbent Commuter Carriers for the 2020 Plan Year are set forth in Attachment B.
Allocation of Class A ADDs to New Entrant Allocations
The Phase 2 Access Plan provides that potential new entrant Air Carriers and Commuter Carriers have priority on the waiting list based upon the dates when the County first received their written requests to commence service at JWA. Although JWA has, both in recent years and historically, been able to provide new entrant opportunities for Air Carriers and Commuter Carriers on the waiting list, based upon the allocation requests of the incumbent Air Carriers and Commuter Carriers for the 2020 Plan Year, the unfulfilled allocation requests for the upcoming Plan Year and the limited County-controlled capacity that is currently available for allocation to new entrants, JWA is not recommending a capacity allocation to a new entrant Air Carrier or Commuter Carrier for the 2020 Plan Year.
Associated Operating Groups
The Phase 2 Access Plan allows Air Carriers and Commuter Carriers operating at JWA to declare annually the formation of an Associated Operating Group (AOG) for purposes of conducting operations at JWA. AOGs are typically formed by Air Carriers and Commuter Carriers interested in sharing capacity among AOG members. Alaska/Horizon and Delta/Compass/WestJet have requested to operate as members of two separate AOGs during the 2020 Plan Year.
The Phase 2 Access Plan includes a number of regulations, which apply to the allocation of capacity to, and operation of, AOGs. These provisions require that Air Carriers and Commuter Carriers conducting operations as an AOG be treated as a single carrier with respect to the allocation of capacity. 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 of capacity to these Air Carriers reflects AOG provisions of the Phase 2 Access Plan. The AOG allocations are set forth in Attachment A.
Allocation of
Permanent Class E ADDs
The Phase 2 Access Plan allows an allocation of a total of 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 permanent Class E ADDs. Southwest Airlines currently operates all 14 of these permanent Class E ADDs through December 31, 2020, as set forth in Attachment A.
Allocation of Class A ADDs Currently Under Direct County Control
As a result of Air Carrier operational decisions and changes in the airline industry that have occurred over the past few years, the County currently has within its control three Class A ADDs. In recent Plan Years, JWA has requested authorization to allocate County-controlled Class A ADD capacity on a supplemental basis for a period of one Plan Year. However, because of the amount of Seat Capacity requested for use during the 2020 Plan Year, including the maximum presumptive seat capacity that has been requested and allocated for use during the 2020 Plan Year, and in order to maintain JWA’s MAP limitation, JWA is not able to allocate any additional County-controlled Class A ADDs to the Commercial Passenger Air Carriers on a supplemental basis for use during the 2020 Plan Year. The three County-controlled Class A ADDs will remain in County control. As referenced in Recommended Action 4, JWA staff requests the ability to allocate this capacity on a supplemental basis during the 2020 Plan Year in the event JWA determines that it can allocate this capacity on a short-term basis and still maintain the MAP limitation.
Allocation of Class A Departures for Cargo Operations
The Phase 2 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 needed for cargo operations at JWA. This capacity, however, may only be allocated on a supplemental basis for one Plan Year in any year where those ADDs have not been requested by Commercial Cargo Carriers.
Neither FedEx nor UPS has requested any additional operating capacity beyond the two Cargo Class A ADDs, one each, that have been allocated to them through December 31, 2020. Although JWA has, both in recent years and historically, been able to provide Cargo Class A ADD capacity for incumbent Air Carriers on a supplemental basis, because of the amount of Seat Capacity requested for use during the 2020 Plan Year, including the maximum presumptive Seat Capacity that has been requested and allocated for use during the 2020 Plan Year, and in order to maintain the MAP limitation, JWA is not able to allocate the two Cargo Class A ADD capacity for use on a supplemental basis during the 2020 Plan Year. These two Cargo Class A ADDs will remain in County control, and as referenced in Recommended Action 4, JWA is requesting the ability to allocate this capacity on a supplemental short-term basis in the event JWA determines that it can allocate this capacity on a short-term basis during the 2020 Plan Year and still maintain the MAP limitation.
Allocation of Seat
Capacity
A total of 15,830,484 seats were requested by the incumbent Air Carriers as part of the 2020 Plan Year allocation process. As referenced in Recommended Action 2, JWA is requesting authorization to allocate a total of 11,831,743 seats for the 2020 Plan Year. Historically, the number of seats allocated exceeds the MAP limitations because Air Carrier load factors (seats filled vs. seats available) are less than 100 percent.
A total of 10,672,999 seats are recommended for allocation in support of Class A operations. A total of 1,158,744 seats are recommended for allocation in support of Class E operations. The recommended Seat Capacity allocation would accommodate all of the seats requested for use during the 2020 Plan Year with the exception of 2,893,929 seats requested by Southwest Airlines, 518,397 seats requested by Delta Air Lines and 586,415 seats requested by Alaska Airlines. The specific Seat Capacity allocation recommendations for the Air Carriers are reflected in Attachment A.
As referenced in Recommended Action 5, JWA staff requests the ability to allocate seat capacity on a supplemental basis during the 2020 Plan Year to the extent that JWA determines that it can allocate this capacity on a short-term basis and still maintain the MAP limitation at JWA.
Capacity Withdrawal
Section 6 of the Phase 2 Access Plan includes 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. As referenced in Recommended Action 3, if the Airport Director determines that there is a substantial risk that Regularly Scheduled Commercial Users operating at JWA will exceed the MAP limitation during any Plan Year for any reason other than the violation of the Phase 2 Access Plan by any specific Air Carrier or Commuter Carrier, the Airport Director will advise all Air Carriers and Commuter Carriers of recommendations for capacity withdrawals. In formulating and presenting recommendations for capacity withdrawals, the Airport Director will formulate recommendations that to the extent practicable and feasible: (1) maintain an appropriate level of equity and fairness among all approved users of JWA; (2) will best serve the interests of the air traveling public using JWA; and (3) are consistent with the policies and objectives of the County in its management and operation of JWA.
Although there is no capacity withdrawal priority among the operational categories set forth below, and as further described in Section 6 of the Phase 2 Access Plan, in many circumstances, JWA presently expects that it generally will prefer and recommend capacity withdrawals, to the extent necessary and required, in the following order: (1) Seat Blocks; (2) Supplemental Authorized Departures; (3) Supplemental Passenger Capacity; (4) Regulated ADDs; and then (5) Passenger Capacity. However, if capacity withdrawals are required by the County, any withdrawal recommendations will be structured in a manner that best serves the interests of the County, local communities and the air traveling public; and the withdrawal will be structured in light of then-existing circumstances, facts and commercial operation patterns at JWA.
Allocation of Air Carrier RONs
The allocation of RON aircraft parking positions to the Air Carriers and Commuter Carriers has long been a significant issue to the carriers. The limited physical facilities available at JWA for overnight parking of Air Carrier and Commuter Carrier aircraft requires that the County, in the interests of safe and efficient operations at JWA, and in support of the appropriate mix of uses of JWA, limit the number of Air Carrier and Commuter Carrier RON positions, control the location and use of those RON positions and place certain other restrictions on RON activity at JWA.
A total of 28 RON positions were requested for allocation for the 2020 Plan Year. Although the Phase 2 Access Plan provides for an allocation of only 27 Air Carrier RONs, JWA requests authority from the Board to waive the Section 5.1.1 RON limit for the 2020 Plan Year and requests that the Board provide JWA with the authorization to allocate up to 30 RONs for use during the 2020 Plan Year in accordance with Section 5.3 of the Phase 2 Access Plan and consistent with past Plan Year allocation requests, as referenced in Recommended Action 6. The recommended RON allocations (gate and apron) for Air Carriers fulfill all 28 of the gate and apron RON position requests for the 2020 Plan Year and are reflected in the last two columns of Attachment A.
If JWA determines at any time during the 2020 Plan Year that the allocation of up to 30 RON positions will jeopardize, in any manner, the safe and efficient operations at JWA or will place undue restrictions on RON activity at JWA, JWA requests Board authorization to withdraw any RON capacity over the 27 RON positions that the Phase 2 Access Plan currently authorizes for allocation.
Allocation of Passenger Capacity to Commuter Carriers
Two Qualified Commuter Air Carriers, SkyWest Airlines (Delta Connection and United Express) and Delux (JetSuiteX), have requested Passenger Capacity allocations for the 2020 Plan Year. SkyWest has requested an allocation of 307,142 passengers. Delux has requested an allocation of 293,608 passengers.
Section 3.5.1 of the Phase 2 Access Plan creates a priority for the allocation of 400,000 Authorized Passengers to Commuter Carriers in each Plan Year. The incumbent Commuter Carriers have requested an allocation of passengers above the 400,000 passengers that have been “prioritized” for use by Commuter Carriers; therefore, JWA recommends that 200,000 passengers be allocated to SkyWest for use during the 2020 Plan Year and 200,000 passengers be conditionally allocated to Delux for use during the 2020 Plan Year. Please see the discussion below relating to the allocation conditions of 200,000 passengers to Delux for the 2020 Plan Year. Therefore, and as referenced in Recommended Action 2, JWA recommends that a total of 400,000 passengers (200,000 conditionally) be allocated for Commuter Carrier use during the 2020 Plan Year. This proposed allocation of Commuter Carrier capacity is reflected in Attachment B.
During the 2018 Plan Year, Delux requested that it be permitted to operate at ACI Jet’s Fixed Base Operator (FBO) leasehold. The request was made in lieu of operating out of the Thomas F. Riley Terminal, an operational plan that was previously granted. Under Section 8.1.7(b) of the Phase 2 Access Plan, discretion is provided to the Airport Director to permit a Commuter Air Carrier to operate at an FBO. Pursuant to Section 8.1.7(b) of the Phase 2 Access Plan, Delux 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, implementation of any necessary related mitigation and payment of all required rents, fees and charges. Delux was permitted to conduct limited operations out of the ACI Jet’s FBO leasehold beginning in 2018.
Delux has again requested to operate at ACI Jet’s FBO leasehold during the 2020 Plan Year. However, the Board recently approved the General Aviation Improvement Program (GAIP) for JWA, which provides a plan for compliance with FAA airfield requirements, as well as the development of two full-service FBOs, one limited-service FBO and other general aviation services. In light of the GAIP, and to avoid unduly complicating the redevelopment of general aviation facilities at JWA, JWA recommends that Delux only be permitted to operate at ACI Jet’s FBO leasehold to the extent that its operations fall within the 2019 Plan Year operations levels (i.e., 95,070 passengers). To the extent that Delux wishes to provide operations over its current allocation of 95,070 passengers during the 2020 Plan Year, Delux must move all of its operations to the Thomas F. Riley Terminal. Put simply, Delux can either operate 95,070 passengers at ACI Jet’s FBO leasehold during the 2020 Plan Year or move its operations entirely to the Thomas Riley Terminal and provide operations for up to 200,000 passengers out of that facility similar to the manner in which SkyWest is operating at the Terminal.
JWA also requests authority to
make supplemental allocations of additional Authorized Passengers during the
2020 Plan Year, if actual operations during the Plan Year indicate that supplemental
capacity allocations would not jeopardize the MAP limitations.
Allocation of RONs to Commuter Carriers
In addition to its Passenger Capacity request, both SkyWest and Delux have requested an allocation of two RON positions each for the 2020 Plan Year. Consistent with this request, and as referenced in Recommended Action 7, JWA requests authority to allocate two RON positions to SkyWest and two RON positions to Delux (on the commercial ramp) for the 2020 Plan Year.
Based on the above, JWA seeks Board approval of the proposed Capacity Allocations for the 2020 Plan Year.
Compliance with CEQA: This project is a necessarily included element of the project considered in Final EIR No. 617, certified by the Board of Supervisors on September 30, 2014, for the JWA Settlement Agreement Amendment, which adequately addressed the effects of the project. 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 2020 Commercial Carrier and
Commercial Cargo Carrier Capacity Allocation
Attachment B - Plan Year 2020 Commuter Carrier Capacity Allocation