Greater Orlando Aviation Authority Board Addresses Budget, Bond and Airport Branding Issues

Press Release

ORLANDO, FL — Important financial and legal issues were considered by the Greater Orlando Aviation Authority Board (GOAA). At Wednesday’s August board meeting, members gave their preliminary approval of the $518.3 million operating budget for Fiscal Year 2018 for Orlando International Airport (MCO) and $3.5 million for Orlando Executive Airport.

GOAA Chief Financial Officer Kathleen Sharman presented a budget to the Board that was reflective of the growth in the region including infrastructure investments at major themed attractions, other business relocations and the rise in sports venues, medical services and high technology activity. Orlando is again the most visited destination in the nation with 68 million visitors annually.

In order to meet the demands of the expanding region, MCO is now accommodating more than 43 million passengers annually, the budget reflects changes in the following cost centers: airfield, terminal, ground transportation, hotel and other buildings. As a result, the anticipated landing fee will be $1.6429 per thousand pounds of landing weight by aircraft which is below the 25th percentile for large hub airports. Terminal premises rates are $143.72 per square foot.

In responding to the budget, Executive Director Phil Brown said “We believe this budget accommodates and enables staff to continue to provide a high level of customer service, while funding essential services at adequate levels and at reasonable and fair rates and charges.” The budget goes to Orlando City Council for a public hearing before final approval by the Authority Board in September.

BOND ISSUE

Also at today’s meeting, the Authority Board approved the issuance of approximately $997 million in Priority Subordinated Airport Facilities Revenue Bonds, Series 2017A (AMT). The bonds will finance a portion of the costs for the South Terminal Complex which begins construction this year and will be completed in 2020 adding 16 aircraft gates and additional capacity for MCO. Pricing is currently scheduled to take place before the end of August. The Aviation Authority 2017 bond ratings are underway.

MELBOURNE INTERNATIONAL AIRPORT MEETING

Earlier in the day, Greater Orlando Aviation Board members traveled to Port Canaveral to meet with their counterparts from the Melbourne Airport Authority to address their dispute over Melbourne’s use of Orlando in its name. After a presentation of each airport’s position, the boards agreed to follow up negotiations between their executives, attorneys and chairmen to further try to reach an amicable resolution.

“We remain optimistic that keeping the lines of communication open will result in a resolution in the near future,” said Frank Kruppenbacher, Chairman of the Greater Orlando Aviation Authority. “We are dedicated to putting the needs of the flying public first and maintaining the integrity of the travel experience into Central Florida.”

Orlando International airport has more than 43 million annual passengers, making it the second busiest airport in Florida and 13th busiest in the U.S. With the state’s most domestic routes and non-stop service to 57 international destinations, MCO provides global access for business and leisure interests. Supporting a diverse Central Florida economy that features world-class tourist attractions, a medical research hub and growing simulation sector, Orlando International Airport generates $31 billion in direct and indirect revenue for the regional economy. As the premier gateway to the nation’s most visited destination, MCO strives to value and delight its customers through an airport-wide focus and design concept known as The Orlando Experience®.