SAN FRANCISCO
INTERNATIONAL AIRPORT
July 11, 2016
Capital Improvement Plan Update
Introduction
2
ACTION ITEM: Approval of the Airport’s updated 5 & 10 Year
Capital Improvement Plans (CIPs) totaling, $5.7 billion and $6.1
billion, respectively.
Presented to the Airport’s Financial Advisory Committee (April 2016)
Reviewed by the Airlines (April 2016)
Approved by Airport Commission (June 2016)
Strong Economy Drives Robust Passenger Growth
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FY 2016 enplanements are 29% higher
than when Terminal 2 opened
FY 2016 enplanements are over 10%
higher than was projected 3 years ago
At time of last major CIP update in
April 2013, FY 2016 forecast was
23.2 million enplanements
Current forecast for
FY 2016 increased by 2.5 million
enplanements to 25.7 million
Projected FY 2021 enplanements
(28.8 million) are 12% higher than
FY 2016
Key Points
4
CY 2015
Virgin America to Denver in March 2016
United Airlines to Tel Aviv in May 2016
United Airlines to Xian in May 2016
Air Berlin return of seasonal service to
Dusseldorf in May 2016
Fiji Airways new seasonal service to Nadi, Fiji
in June 2016
WOW Airways to Reykjavik in June 2016
United Airlines non-stop service to Singapore
in June 2016
United Airlines to Hangzhou in July 2016
United Airlines to Auckland in July 2016
NEW SERVICE OFFERINGS 2016
British Airways A380 service replaced
smaller B747 between SFO and London in
March 2015
Turkish Airlines began service to Istanbul in
April 2015
Aer Lingus increased to daily frequency in
May 2015
Cathay Pacific additional 3 times per week
frequency to Hong Kong in Jun 2015
Copa Airlines begin daily service to Panama
City, Panama starting in Sep 2015
Virgin America service to Honolulu and Maui
beginning in Nov & Dec 2015
Air India began 3 times a week non-stop
service to Delhi in Dec 2015
Qantas Airways return of service to Sydney
in Dec 2015
CY 2014
United Airlines began new non-stop 787-
service to Chengdu, China in June 2014
Etihad Airways began service to Abu Dhabi
in November 2014
Emirates A380 service replaced smaller 777
between SFO and Dubai in December 2014
China Southern flights to Guangzhou started
in December 2014
United Airlines flying to both airports in Tokyo
by relocating one daily frequency from
Narita to Haneda Airport in October 2014
NEW ROUTES AND INCREASED SERVICE
Route expansion along with new carrier additions continue to strengthen SFO’s global
prominence
Source: San Francisco Airport Commission; OAG Aviation Worldwide Ltd, OAG Analyser database, accessed December 2015
Strong Economy Drives Robust International Growth
SFO’s passenger traffic growth outpaced that of other Bay Area airports 8 out of the last 9 years
SFO’s share of Bay Area traffic has grown from 58% in FY2007 to 70% in FY2015
In FY2015, 94% of Bay Area international traffic was served out of SFO
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Bay Area Enplanements
58%
64%
68%
69%
70%
71%
71%
71%
70%
0
5
10
15
20
25
30
35
(millions)
SFO OAK SJC
Scheduled Departing Seats
0
5
10
15
20
25
30
SFO OAK SJC
(millions)
FY2007 FY2015 FY2007 FY2015 FY2007 FY2015
Source: San Francisco Airport Commission; Federal Aviation Administration air traffic statistics. OAG Aviation Worldwide Ltd, OAG Analyser
database
Bay Area Market Share
Between FY2007 and FY2015, concession revenues experienced an average annual growth of 4.6%
Rental car revenues and parking revenues grew at 10.3% and 8.0%, respectively
Transportation Network Companies (TNC) revenues totaled $6.8 million in FY2015 and are expected to
surpass $14.5 million in FY2016
Terminal 3 East reopened in November 2015 with eight newly renovated retail and food & beverage
concession locations
Strong Growth of Non-Airline Revenues
6
Terminal Concession, Rental Car And Parking Revenues*
$59.9
$63.7
$65.0
$66.6
$66.0
$72.5
$76.6
$79.2
$86.0
$24.2
$29.7
$32.7
$33.3
$38.5
$44.7
$47.6
$51.9
$53.1
$67.4
$76.7
$77.9
$82.9
$91.6
$104.3
$113.6
$116.7
$125.1
$0
$50
$100
$150
$200
$250
FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY 2014 FY 2015
(millions)
Parking and Transportation Revenues
Rental Car Revenues
Terminal Concession Revenues*
*Terminal Concessions includes food and beverage, retail, duty free, and advertising
CIP Objectives
Modernization and upgrading of the terminals to:
Meet demands of growing traffic – gate capacity is a significant constraint for Airport & Airlines
Maintain and improve existing assets
Enhance non-airline revenues
Ensure efficient passenger flow in all phases of the customer service experience
Improve groundside access for passengers
Enhance safety & security
Promote sustainability
Provide IT infrastructure necessary to meet passenger and tenant
operational needs
Maintain SFO’s strong competitive position vs. other international
gateways (capacity, cost)
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Increasing Air Traffic Drives Capital Improvement Needs
FY 16/17 Capital Plan Summary
8
Airport Cost
Center
Five
-
Year Plan
%
Ten-Year Plan
%
Terminal
3,311.1
58.0%
3,321.7
54.6%
Groundside
1,052.0
18.4%
1,323.7
21.8%
Airport Support
750.7
13.2%
783.7
12.9%
Airfield
208.8
6.7%
240.5
6.7%
Utilities
382.7
3.7%
410.3
4.0%
Total
$5,705.3
$
6,079.9
$ in millions
FY 16/17 Ten-Year Capital Plan Comparison
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FY 15/16
CIP
FY 16/17
CIP Change Projects Driving Change
Terminal
$3,057.4
$3,321.7
$264.3
Acceleration of T1, added scope for
T3, added
Gate Capacity
Enhancements
519.8
1,323.7
803.9
Consolidated Rental Car Facility,
Long
-term Parking Garage added
scope, and
AirTrain Extension cost
escalation
Airport
Support
429.8
783.7
359.9
Security
Improvements, Superbay
Renovation, Technology Improvements
Airfield
285.2
240.5
(44.7)
Based on needs
Utilities
235.5
410.3
174.8
Net
Zero, Energy Mgmt Control
System, and Waste Water treatment
plant
$4,527.7
$ 6,079.9
$1,552.2
Plan of Finance
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Airport Revenue Bonds
“Just in time” financing
Commercial paper for interim funding of projects, $400M in liquidity
Issue long-term debt as needed, optimizing market timing
Operating Revenue
Renewal of existing assets
Transfer maximum amount allowed under Lease and Use Agreement for
capital projects
Grants
FAA grants for Airfield projects
TSA funding for Checked Baggage Inspection System in Terminal complex
Customer Facility Charges (CFC)
Funds the new Rental Car Facility
Major Capital Projects
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SFO Map
12
Terminals
T1 Redevelopment Program ($1.85B) – Over 50 years old, T1
is at the end of its useful life. Project addresses failing
infrastructure while increasing gate capacity and enhancing the
customer experience.
Construct new 24+ gate Boarding Area (B/A) B
Stage 1: 9 interim gates FY 16/17 to FY 18/19
Stage 2A: First 9 new B/A B gates FY 18/19
Stage 2B: Additional 8 gates (17 active gates) FY 20/21
At completion: 24 (or more) total active gates FY 20/21
Includes “swing” gates for international operations
New Baggage Handling System (BHS): Est construction FY 16/17
to FY 18/19 and will be available at Stage 2A when B/A B is
active
Central Area Renovation: to create larger departure hall with
consolidated checkpoint. Footprint of “central” portion increased
in the draft CIP based on passenger processing needs.
Checkpoint screening areas and add concessions and passenger
amenities built in phases
Relocation of taxiways to extend pier
13
Terminal 1 (T1) Redevelopment
Terminals
T3 West Improvements ($792M) – Reconfigures western
side of T3 to increase gate capacity and add flexibility for
international and domestic flights, addresses seismic needs, improves
passenger flow, and enhances passenger experience
Upgrade 5 gates to allow gate flexibility between wide &
narrow body aircraft
Expand terminal and renovate B/A F up to but not including
concession hub
Upgrade building systems, BHS
Expanded scope from last CIP to maintain gate capacity
during phasing of project
Estimated construction FY 17/18 - FY 20/21
T2 to T3 Secure Connector & Office Block ($172M)
Provides additional space to accommodate airline growth and
demand for space, increases operational flexibility, improves
traveling experience for connecting passengers
Constructs new secure connector btw T2 & T3
Constructs new office block
Main construction estimated start FY 18/19
Enabling projects may begin in FY 17/18
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Terminals
15
Gate Capacity Enhancements ($104M) - Increases flexibility for aircraft
parking along western half of B/A F and T2
Provide additional gates at B/A F and T2
Remote parking at B/A A and B/A G
Replace 5 existing nose-load passenger boarding bridges with new apron-drive
passenger bridges in B/A F
Relocate fuel pits and upgrade electrical infrastructure
Provide bus holdrooms and necessary equipment for B/A A and B/A G remote
loading
Estimated construction start FY 16/17
ITB Arrivals Systems Improvements Project
($93M) - increases operational efficiency such
as the baggage handling system
ITB Miscellaneous Improvements to maintain
assets, improve safety, & enhance passenger
experience ($29M)
Replace air system, upgrade fire alarm,
improve Boarding Area A corridor and expand
the existing checkpoint, provide a dedicated
media and press room, and replace carpet on
passenger boarding bridges
16
Terminals
International Terminal Building (ITB)
New Consolidated Rental Car Center (RCC)/Conversion of Existing RCC
($540M) – to better meet passenger needs and enhance travel experience
17
Groundside
Construct a new 4,640-stall Rental Car
facility, funded through Customer Facility
Charges
Convert existing facility to public parking
garage that will offer 3,700 parking spaces,
with additional parking revenue in excess of
costs
Estimated construction start FY 19/20
Airport Hotel ($225M)
Construct 350 room four-star Grand Hyatt
New AirTrain station
Estimated construction start FY 16/17
Currently in design stage
Groundside
AirTrain Ext. to Long Term Garage ($193M)
New station at Lot DD to service existing and
future Long Term Garages and future
consolidated rental car facility
Estimated construction start FY 16/17
Added cost due to revised alignment
Long-Term Parking Garage 2 ($155M)
Existing Long-Term Parking facility
at or near capacity
Adds 3,000 spaces to inventory
Estimated construction start FY 16/17
Increase in cost reflects added floor based on
parking demand
18
Airport Support
19
Consolidated Administration Campus Phase I
($79M)
Includes planning/program mgmt. ($5M)
Does not include Phase II ($178M)
Est construction in FY 16/17
Phase II Deferred from CIP ($178M)
Would be triggered by need for
Boarding Area H
Security Infrastructure Improvements ($230M)
Airport Security Infrastructure Program
($206M)
Construct new perimeter security system
at the fence line and waterfront
Enhance access control systems
Other Security projects include:
Domestic Terminal Fire Alarm
Upgrade($6M)
Communication Center Infrastructure
Improvements ($5M)
Airfield
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Airfield projects ($123M)
Major projects include:
Miscellaneous Airfield improvements ($32M), including runway overlays
and a taxiway realignment program to improve safety
Apron Reconstruction ($19M)
South McDonnell Road Realignment ($18M) – provides up to six (6)
aircraft parking spaces to replace spaces near South Field (note: An
additional $31M for this project is in Groundside)
Utilities
21
Wastewater Improvements ($145M)
Program includes various wastewater
infrastructure improvements airport-wide as
well as industrial waste treatment plant
improvements. Major projects are:
Construct new industrial Waste
Treatment Plan ($75M)
Recycled water system ($37M)
Water System Improvements ($72M)
Program includes various incoming clean
water and reclaimed water infrastructure
improvements airport-wide. Major projects
are:
Separation of Fire and Domestic Water
Systems ($30M)
Water Quality Testing/Monitoring
Project ($11M)
Technology Improvements ($128M)
Terminal Management System Upgrade ($19M)
Terminal Public WiFi ($14M)
Dense Wavelength Division Multiplexing Transport Project –
provides higher bandwidth connectivity across network to
support airline operations and wireless carriers ($12M)
Mobile application development and delivery ($10M)
Telecommunication Infrastructure ($6M)
Multi-Use Flight Information Display Upgrade ($5)
Common Use Self Service (CUSS) Kiosks ($5M)
Other projects ($57M)
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Technology Improvements
Energy Savings Projects
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Net Zero ($50M)
Energy efficiency and renewable energy
improvements
Net zero goals driven by City and County of
San Francisco Sustainability Plan
Energy Management Control ($68M)
Implement an Airport wide Energy Mgmt and
control system to integrate all bldg. controls
Will enable real time data on energy
consumption to assist in achieving energy
optimization
Implementation study FY 16/17
Est construction FY 16/17
Questions?
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