ORLANDO, FL. – The Greater Orlando Aviation Authority (GOAA) Board completed its annual budgeting process by approving the FY 2022 budgets for Orlando International Airport (MCO) and Orlando Executive Airport (ORL).
Following a public hearing by the Orlando City Council, the budget proposal returned to the Authority Board for a final vote. The MCO budget for the coming fiscal year is $578,380,000 and the budget for ORL is $6,637,000. There are several notable comparisons to last year’s MCO budget:
- Gross revenues are up $135M largely due to increased passenger activity
- Operating & Maintenance (O&M) expenses increased $57.5M from FY ’21 and $27.2M from FY ‘20
- O&M increase driven by two primary factors
- Providing resources to return to 2019 passenger levels
- Supporting the opening of South Terminal C
- $15.6M shared with participating airlines to help reduce their Cost Per Enplaned (CPE) passenger
- CPE decreased from $13.90 to $9.25
Orlando Executive’s balanced budget increases $2.55M over FY ‘21 and includes an estimated $1.5M in CARES Act funding from the federal government. Other Board actions included:
South Terminal Construction Approved for Primary Airline Tenant
JetBlue has executed a binding agreement to reimburse GOAA for design, construction, labor and materials and project supervision related to custom finishes in exclusive-use space in South Terminal C. JetBlue CEO Robin Hayes attended the meeting in support of the measure and expressed his appreciation to GOAA leadership for the ongoing partnership. JetBlue plans to relocate to South Terminal next year and occupy approximately 32,000 square feet of exclusive-use space, as well as operating a minimum of 10 Annual Access gates.
Disadvantaged Business Fund Established
Small business owners at Orlando International Airport continue to feel the effects of the pandemic-driven decline in passenger traffic. To address this matter, the Authority greenlighted a program to benefit disadvantaged in-terminal concessionaires.
The Board authorized $2 million in Authority funds be earmarked for targeted relief in the form of grants to ACDBEs that have suffered a significant reduction in concessions sales. An ACDBE is a for-profit concessionaire that is at least 51 percent owned, managed and controlled by one or more socially or economically disadvantaged individuals.
GOAA staff will develop an application, eligibility criteria, award criteria, maximum award amount and contractual obligations for grantees. The final details will be presented to the Board at its October meeting.
Wayfinding Improvement Grant
The Aviation Authority agreed to accept a $4 million grant from the Florida Department of Transportation (FDOT) to improve MCO roadway navigation. The Public Transportation Grant Agreement (PTGA) will provide 50 percent design and construction funding for updated messaging associated with the opening of the South Terminal. This program will also address airport-wide signage improvements at Orlando International.
Chief Executive Officer Search
The GOAA Board took two actions involving the impending retirement of CEO Phil Brown. The first was the approval of an Executive Search Consulting Contract. After interviewing and ranking four firms during a special session prior to last month’s meeting, the Board voted to award the contract to Korn Ferry (US) Inc., the first-ranked firm. Under the terms of the agreement, Korn Ferry will provide services to help define the job description; promote the vacancy to attract highly qualified candidates; and present vetted candidates to the Board for interviews and background checks that will allow for a hiring decision by January 2022 or earlier.
Since Mr. Brown’s current contract term ends on September 30, 2021, an extension and compensation adjustment was approved by the Board that will extend his term through January 31, 2022. The Board recognized the importance of retaining Brown’s leadership and operational expertise during the upcoming time of transition. Brown’s tenure as Chief Executive Officer began in September 2010.
The information herein is provided as of the dates specified. Due to the outbreak and continuation of COVID-19 subsequent to the date of such information, the information contained herein may differ materially from current operational and financial data.