Legislature(2009 - 2010)SENATE FINANCE 532
03/23/2009 01:30 PM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| Aviation Industry Presentation by Christine Klein, Deputy Commissioner of Aviation, Department of Transportation and Public Facilities. | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
March 23, 2009
1:37 p.m.
1:37:07 PM
CALL TO ORDER
Co-Chair Stedman called the Senate Finance Committee meeting
to order at 1:37 p.m.
MEMBERS PRESENT
Senator Lyman Hoffman, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Charlie Huggins, Vice-Chair
Senator Johnny Ellis
Senator Donny Olson
Senator Joe Thomas
MEMBERS ABSENT
None
ALSO PRESENT
Christine Klein, Deputy Commissioner of Aviation, Department
of Transportation and Public Facilities.
SUMMARY
^Aviation Industry Presentation by Christine Klein, Deputy
Commissioner of Aviation, Department of Transportation and
Public Facilities.
1:38:11 PM AT EASE
1:38:23 PM RECONVENED
CHRISTINE KLEIN, DEPUTY COMMISSIONER OF AVIATION, DEPARTMENT
OF TRANSPORTATION AND PUBLIC FACILITIES briefed the
committee on the Aviation Industry with the PowerPoint
presentation, "Alaska International Airports" (Copy on
File).
Overview:
I. System Advantages & Strengths
1. Alaska System Global Advantage
2. Airport System Strengths
3. Economic Impacts
II. Traffic, Trends, Concerns
1. Growth of Past 10 Years
2. Weakening of 2008 Events
3. AIAS Responses
III. Future Outlook
1. AIAS Tie to Global & National Markets
2. Responsiveness and Competitive
3. Cautious Stable Growth
1:39:25 PM
Ms. Klein discussed Slide 3, "Alaska International Airport
System" (AIAS):
· Established in 1961
· Airports of Anchorage International Airport (ANC) and
Fairbanks international Airport (FAI)
o Shared Assets and Resources
o Capital and Bonding Capability
· Aviation Support across vast and remote distances
o Aircraft Alternate and Diversion Options for
weather/disasters.
· Serving Alaska and World
o Part of the National Priority International
Airport system.
1:41:55 PM
Ms. Klein discussed Slide 4, "Alaska's Global Advantage
Payload versus Range." She explained the advantages of
Alaska's location, with both Fairbanks and Anchorage
approximately nine hours distance from all centers of the
industrialized world. Alaska's location allows profitable
transport for air carriers traveling across the globe. She
cited an example of a freighter traveling from Hong Kong to
Chicago, explaining that a stop in either Anchorage or
Fairbanks earns double the revenue. A direct flight from
Hong Kong to Chicago must carry more fuel without the
paying commodity.
1:43:04 PM
Ms. Klein discussed Slide 5, "Alaska System Advantages":
Regulatory:
· Progressive Clearance
· International to International Cargo Transfers
· United States Department of Transportation awarded
Cargo Transfer Flexibility in 1996
· Expanded Cargo Transfer 2003
Location and Cost:
· Strategic Location for Trans-Pacific Asia Cargo
· Pay-load versus Range
· Growing Asia Market and Base of Chinese Freighters
· Close alternate airport
· No Slots or Curfews
· Parts exchange program
· Competitive airports: each with same low rates and
fees
1:45:04 PM
Ms. Klein discussed Slide 6, "AIAS Strengths":
· One Revenue System
· Two Large International Airports
· Competitive Rates and Fees
· Diverse Revenue Sources
· Wide Mix of Air Carriers
· Air Cargo center for Asia
· Long-term Commitments
· System Capacity for Growth
· Economic Engines for the State of Alaska and the Local
Communities
Ms. Klein mentioned the expansion potential in Alaska in
comparison to other urban areas. Anchorage maintains
traffic and revenue because of expansion potential.
1:47:02 PM
Ms. Klein discussed Slide 7, "Strength: Diverse Business
Revenues" (Pie Chart). She discussed diversity of revenue
sources. Landing fees generate over 42 percent of revenue.
The certificated maximum gross take-off weight determines
the landing fee.
Senator Huggins requested a reciprocal approach to landing
fees. He wondered if there were disparities in landing fees
for different airports. Ms. Klein answered that each
international airport is different. The United States use
similar landing fee structures, but international airports
outside of the United States have widely different fee
structures.
Ms. Klein noted that nearly two thirds of revenue include
cargo and passenger sources. Fuel flowage is the second
largest revenue source. The final revenue sources consist
of concession fees, parking fees, federal inspection
service, and land rents.
1:49:12 PM
Ms. Klein stated that the total budget is $112 million for
the system including operating and maintenance costs
ranging from $49 million to $70 million in the last 10
years. Currently, the FY09 budget is $71 million, which is
similar to the FY06 budget.
Ms. Klein discussed Slide 8, "Cargo and Diversity of
Carriers": She informed that Alaska has thirty-five
different air cargo carriers. She noted that 14 carriers
were from the United States while 16 are from other
countries. She informed that 35 percent of cargo carriers
serve China.
1:50:29 PM
Ms. Klein discussed Slide 9, "Overall Statewide Aviation
Economic Contribution to Alaska." She noted that the Alaska
Aviation System is the largest system in the United States
with mort airports than the Russian Federation. The
aviation industry provides over 47 thousand jobs in Alaska,
and is the fifth largest provider of Alaska's gross state
product equating approximately #3.5 billion of Alaska's $44
billion economy.
Ms. Klein discussed Slide 10, "Anchorage Specific Economic
Impact:
· One in eight jobs
· about $562 million direct annual payroll
· Another $288 million in annual community jobs payroll
· $2.36 billion total annual Anchorage Impact
Co-Chair Stedman questioned the accuracy of the estimates
for payroll for annual community jobs. He asked if the
aviation industry used a multiplier including bands of
comfort. Ms. Klein responded that an Institute of Social
and Economic Research (ISER) update provides necessary data
biyearly. The standard deviation or margin of error for
this particular report is unknown.
1:53:25 PM
Senator Huggins introduced the debate about airport
parking. He opined that a great demand for airport parking
exists, but he requested an expert opinion. Ms. Klein
answered that excess airport parking, although disconnected
from the terminals, exists.
Senator Olson clarified the location of the additional
parking as east of the Department of Transportation
facility near Anchorage International Airport.
1:54:41 PM
Ms. Klein addressed Slide 11, "Traffic, Trends, and
Concerns":
Traffic, Trends, and Concerns
1. Growth Past 10 Years
2. Past Year 2008 Weakened
3. Traffic Downturn & Concerns
4. AIAS Responses
Ms. Klein discussed Slide 12, "Traffic: Passenger Growth"
(Graph): She stated that growth has been steady. She
informed that last year showed 5 percent growth, while this
year shows 0.5 percent growth.
Co-Chair Stedman asked about Slide 12 and the final portion
of 2008. He requested data through February 2009. Ms. Klein
replied that the requested information is included later in
her presentation.
Senator Olson asked about the classification of cargo
carriers used in Alaska's aviation industry. Ms. Klein
reported that traffic is measured using certified activity
reports for 121 cargo carriers.
1:57:46 PM
Co-Chair Stedman asked for a definition of a 135 carrier.
Ms. Klein answered that there are different categories of
cargo carriers. Those with greater than sixty seats are
termed "121 carriers," while "135 carriers" contain fewer
than 60 seats.
Ms. Klein discussed Slide 13, "Fairbanks": a Star in Winter
International Passenger Enplanements." She attributed the
increasing international enplanement numbers in Fairbanks
to winter tourism from Asia.
Ms. Klein discussed Slide 14, "Traffic: Cargo Growth." She
discussed the measurements of aircraft and the effect on
revenue. She informed of the 4 to 6 percent annual growth.
The bar graph illustrates the take-off weight used to
measure revenue. The landing portion of the graph varies
from year to year due to holidays in other countries, down
markets, and fuel cost variables.
1:59:54 PM
Ms. Klein discussed Slide 15, "International Cargo is big
business":
Air Cargo dominates airfield activity at Anchorage
International Airport and generates most of the
aircraft landing fees.
· Nearly 35 percent of International Cargo traffic
is from China
· 2000-15 landings per week.
· 2006-198 landings per week.
· 2007- 260 landings per week.
· Total China-US air cargo market in 2007 is equal
to 36.7 percent of all Asia North America air
cargo.
2:01:33 PM
Ms. Klein discussed Slide 16, "International Cargo at
Anchorage." She named nine international carriers that
account for over 55 percent of cargo revenue. These include
Cathay Pacific, China Airlines, Korean Airlines, Eva
Airways Corporation, Japan Airlines International, Asiana
Airlines, Singapore Airline Cargo, Nippon Cargo Airlines,
and Air China. She mentioned that Federal Express and
United Parcel Service are major players in the Alaskan
market as they are Anchorage hubs.
Ms. Klein discussed Slide 17, "2007 ACI Cargo Traffic Stats
(Metric Tons)." She stated that Anchorage ranked number
three in 2007.
Senator Huggins asked why Memphis was such a key location.
Ms. Klein answered that Memphis is in close proximity to
manufacturing as it has roads available for transportation.
Alaska does not have the same base of exports. Memphis will
continue as a strong competitor.
2:04:18 PM
Senator Huggins asked how much business compared for
domestic versus international in Memphis. Ms. Klein
admitted that she did not know.
Senator Olson added that Memphis was headquarters for
Federal Express. He asked if there were differences that
would create a fee structure in Anchorage competitive with
Memphis, enabling higher revenues. Ms. Klein responded that
she had reviewed the items and would address them later in
the presentation. She noted that other US ports with
manufacturing and exports are competitors.
2:05:32 PM
Ms. Klein discussed Slide 18, "Weakening in 2008":
Weakening in 2008
• US Economic Recession
- Passenger downturn elsewhere
• Aviation Industry in Crisis
- Airline Bankruptcies & Mergers
- High Fuel Costs
- Fewer Flights & Capacity
• AIAS Activity & Revenue
- Cargo Activity Declines
- Fuel Flowage Down
- High Debt
Ms. Klein spoke about the US economic recession. The
decreases in traffic began in June 2008, increasing as the
year progressed. Other airports in the US began to follow
Alaska's trends. High fuel costs added to the fall in
international as well as rural traffic. Many bankruptcies
and mergers were seen and many older aircraft taken out of
service. She noted that multiple communities lost all air
service, a tragedy that would devastate Alaska.
2:08:34 PM
Ms. Klein stated that when United pulled out of Alaska,
while Delta and Northwest Airlines merged. When United
Airlines pulled out, existing air carriers such as Delta
and Northwest Airlines picked up the traffic demand.
2:09:11 PM
Ms. Klein discussed Slide 19, "Summary of Fiscal Year 2008
Alaska International Airport System (AIAS) Activity":
Summary of Fiscal Year 2008
AIAS Activity
• Total Landings = 101,863 (-05%)
• Cargo by Landings = 46,965 (-5.4%)
• Passengers by seats = 5,380,811 (+4.4%)
• Fuel Flowage = 865 million gallons (-6.6%)
Ms. Klein discussed Slide 20, "AIAS FY06-FYO9 YTD Monthly
Passenger Enplanements." The monthly passenger enplanements
equate the number of people entering an aircraft. The noted
decreases are consistent with the rest of the country.
Ms. Klein discussed Slide 21, "Landing Revenue by Aircraft
Certified Maximum Gross Take-Off Weight":
Landing Revenue by Aircraft
Certified Maximum Gross Take-Off Weight
• Cargo aircraft
• Passenger (Pax) aircraft
• Airport's as a standard, charge landing fees to air
carriers for use
• Airport Landing Fees are charged by the aircraft
manufacturers
Certified Maximum Gross Take-Off Weight (CMGTW) for
each use
• Air Carriers are required to report aircraft weights
monthly in certified
Activity reports (CAR's) to the airport's they utilize
2:11:41 PM
Ms. Klein discussed Slide 22, "AIAS FY06 and FY09 YTD
Monthly Combined Cargo-Pax CMGTW": She referenced the
trends exhibited in the graph that follow global market
trends. She informed that the monthly combined cargo is
down 19 percent in the beginning of the fiscal year. The
months varied, yet the system's average is 19 percent. In
Fairbanks, the average is 2 percent higher. Traffic by
weight is down 12 to 28 percent. The international market
in December, referred to as an airfreight collapse
throughout the world, shows a 26 percent decline.
Co-Chair Stedman inquired about the availability of March
data. Ms. Klein answered that the requested data lags about
one month because the carrier must send in the certified
activity reports.
Co-Chair Stedman asked if Ms. Klein expected changes in the
trends. He asked if the estimation was continued downward
momentum or an increase in March.
2:14:02 PM
Ms. Klein projected a 20 percent decline through the end of
this year.
Ms. Klein stated that with a comparison seen on Slide 23
"Airport CMGTW Concerns and Comparisons":
AIAS:
· Month of December CMGTW compared to same month of
prior year down 22.50 percent
· FY09 ( with 7 months of year) shows a CMGTW average
decline of 19.92 percent
Other Airports in the US:
· San Francisco freight for December down 43 percent
· Los Angeles freight for December down 24.3 percent
· IATA reports "22.6 percent collapse in air freight
volumes for December as export volumes fell 20-30
percent in the US, Asia, and Europe"
Ms. Klein explained that the market is dependant on
products coming from Asia to the US. She admitted recently
learning that market trends follow the housing construction
market.
2:16:19 PM
Ms. Klein discussed Slide 24, "AIAS FY06-FY09 YTD Monthly
Fuels." She informed about declines in fuel consumption for
several years. She added that the consumption in FY09 is
414 million gallons, which correlates with decreased
traffic. Since fuel is one of the greatest costs in the
Aviation Industry, many airlines are reducing aircraft
weight improving fuel efficiency. The cargo carriers are
only required to carry enough fuel to get to an alternate
location and many airlines carry less fuel as lower weight
raises fuel efficiency.
Ms. Klein discussed Slide 25, "AIAS Fuel Trends":
Fuel Flowage Fees
· Charged on each gallon of fuel
· $0.027 per gallon for aircraft >12,5000
(signatory carriers)
· Accounts for ~20% of the AIAS Revenue
Changes
· Cargo Freight Down
· Old Aircraft Being Parked
· Airlines Improved Efficiencies
· Carrying Less Fuel Weight
2:19:21 PM
Senator Huggins asked about the price of fuel and the
flying habits of large carriers. He wondered if commercial
carriers are bound to change to a blend fuel as the
military is. Ms. Klein answered that the Federal Aviation
Administration, which is looking for alternative fuels for
commercial aircraft, regulates the commercial market.
Senator Huggins stated that Alaska would be part of a
demonstration project for aviation fuel. He wondered if a
certain gas price attracts carriers landing in Alaska.
2:21:12 PM
Ms. Klein discussed Slide 26, "Trends in International
Freight." She reminded that the tragedy of September 11 had
a huge impact on the aviation industry. The current
recession has not led to that level of traffic decrease.
Most airports took years to recover from September 11, yet
Alaska recovered in six months.
2:22:36 PM
Ms. Klein discussed Slide 27, "AIAS Responded Early to
Trends":
Reduced Operating Costs:
· June: reduce 2008 budget spending
· July: defer, delay, and cut capital projects by
$300 million
· August: projected year traffic declines of 15-20
percent
1. Cut development funds
2. Hold utility increases and costs flat
3. Put TSA reimbursement to debt
· October: reduce 2009 operating budget by $3
million (3%)
· March further containment
Stay Competitive:
· September: Initiated independent third party
Asian Cargo Analysis Report…(Keiser Phillips)
· Assess and track Other US Competing Airports…
· December: Airport Operating Agreement Lease
completed in partnership with airlines
Ms. Klein noted the industry's decreases and projections.
She discussed cutting some development funds collected from
airlines and placing those funds toward debt. She mentioned
significant utility increases, although staff preformed
superbly finding efficiencies to keep impacts flat. She
reported receiving $8 million in TSA reimbursement funds
for security screening allocated to airport debt equaling
more than half of the industry's operating budget. She
shared that a 3 percent reduction of the operating budget,
using the supplemental budget as part of negotiations with
the airlines, presented a solution.
Ms. Klein informed about an industry consultant hired to
aid in better understanding of the Asian market. The
aviation industry monitors other airports across the
country for useful competitor data. She informed about the
recent completion of an airport operating agreement with
the airlines that was in holdover for three years.
Co-Chair Stedman asked if Ms. Klein was a state employee
listed in the state financial directory. He noted the debt
level of 50 percent. Ms. Klein clarified that the debt was
between $39 and $40 million.
2:26:25 PM
Co-Chair Stedman asked if cash flow from operations was
positive or negative. He requested a debt service report on
the previously requested financial document.
Ms. Klein surmised that the debt service was $39 million,
but she would respond to the committee with the exact
information. Ms. Klein referred to the 35 percent of
operating expenses illustrated in Slide 7, "Strength:
Diverse Business Revenues" as the possible debt service.
Co-Chair Stedman asked for a breakdown of the industry's
depreciation, amatorization, and debt service, as they are
three separate components.
Ms. Klein stated that she would verify that the debt
service is $39 million. She intended to provide the
requested information to the committee as soon as possible.
2:28:11 PM
Senator Huggins asked about the $300 million for capital
projects. He asked about capital expansion projects
including the main terminal connecting to the north
terminal. Ms. Klein responded that the connection is one of
the main projects in the five-year program currently under
construction, for completion in June 2009.
2:29:36 PM
Ms. Klein discussed Slide 28, "AIAS and the Future
Outlook":
III. AIAS and the Future Outlook
1. Tied to National & Global Economy
2. Responsive & Competitive Airport
3. Cautious Positive Growth
2:30:45 PM
Ms. Klein discussed Slide 29, "AIAS Linked to the World":
Global Economy
· AIAS tied to World and US trends
· Economic recession
Response and Vigilance
· Respond to Market and Costs
· Track Airport Competition
· Assess Over-flights to US
Realize Limitations
· Surface and Intermodal Limited
· Northern Climate Disadvantage
· No local manufacturing
· Limited air exports
Ms. Klein discussed Slide 30, "Alaska Tied to World Air
Trade":
Projections:
· Air Freight Growing Worldwide by 6 percent a year
· Market size doubles every 10 years
· World Air Cargo will Triple over next two Decades
(Boeing)
· US Cargo Share of Air freight Revenue:
o 5 percent Domestic Majors
o 15 percent European Majors
o 20-50 percent Asian Majors
2:33:02 PM
Ms. Klein discussed Slide 31, "AIAS on the Forefront":
AIAS on the Forefront
Responsive:
· Early Response to USA Economic Downturn
o Responded to Carrier's Requests for Relief
(Fuel)
o Focused on Debt and Rate Stability (Finance)
o Reduced Operating Expenses
o Lower Landing Fees
· International trade Impacts
o Asian Producers
o USA Consumers
2:34:29 PM
Ms. Klein discussed Slide 32 "Asian Market Projected to
Lead Growth." The expectation is that Anchorage remains
competitive.
Ms. Klein discussed Slide 33 and AIAS Remains Competitive":
She stated that the landing fee was lowered by ten cents.
She provided an example of other airport fees. Competitors
include Memphis and Chicago.
2:36:24 PM
Ms. Klein concluded her presentation with Slide 34,
"Conclusion: AIAS Leads the Way":
Responsive, Vigilant, and Serving
· Assess the Competitors
o Other USA Cargo Airports
o Asian Cargo Carriers and Markets
· New Carrier Partnerships
o NCA- JFK Station
o Cathay Pacific- New freighters and new
stations
o Evergreen/Kalitta- New China designation
o UPS- Anchorage Training Center, China
frequencies
Ms. Klein noted that the international airport must remain
a low cost airport system in order to remain competitive.
The declines observed link with the recession and the
economy, with some recovery anticipated in the coming year.
Ms. Klein disclosed some new carrier partnership with the
United Parcel Service (UPS) adding 20 pilots to the
Anchorage station. She concluded that Alaska remains on the
major world crossroad.
Co-Chair Stedman asked about the last annual financial
statements. He asked if Ms. Klein received quarterly or
yearly updates. Ms. Klein replied that annual financial
audits occur as required by the legislature.
2:39:04 PM
Co-Chair Stedman asked for the financial statement for June
30, 2008 along with any updated statements.
Senator Huggins asked about the carrier's request for
relief. He asked where Anchorage was nationally regarding
retail fuel pricing. He asked where the money originates to
provide the requested relief. Ms. Klein answered that fuel
dispensers match the spot price, which for Anchorage is Los
Angeles, California. Airlines buy fuel in great quantities
to remain competitive.
Senator Huggins repeated that the price of fuel in
Anchorage International Airport matches the spot price in
Los Angeles, California. He asked how to reduce the price
of fuel in order to provide relief. Ms. Klein answered that
the slide was referring to other relief reducing the impact
of the high fuel cost. She cited an example of escalating
fuel costs leading to cost increases on terminal rents.
2:41:34 PM
Senator Huggins asked if most of the aviation fuel in
Anchorage came from Flint Hills. Ms. Klein answered that
the fuel originates from multiple locations such as the
Tesoro, Nikiski, Valdez, and Flint Hills.
Co-Chair Stedman asked Ms. Klein to reply to the committee
regarding the origin of fuel at the Anchorage International
Airport. He requested the information presented in total
gallons and percentages. Ms. Klein responded that she would
retrieve the requested information from the fueling
consortium. Co-Chair Stedman explained that the information
ties many of the legislators' considerations during
legislative session.
Senator Huggins asked if Flint Hills closed tomorrow would
concern her. Ms. Klein answered by submitting an example.
The response from the fueling consortium was that there was
ample storage capacity for the fuel. She understood that
the storage capacity exists.
2:44:28 PM
Senator Ellis asked about the selection of the airport
director. Ms. Klein answered that the airport system has an
airport manager for many years. The prior airport director
had the position currently termed system director. She
stated that she posted the vacant position, but has not
selected a replacement. Currently, two competent airport
managers exist, one in Fairbanks and one in Anchorage.
Senator Ellis observed oddities in the selection process.
He opined that the selection process was not efficient. He
hoped for an airport administrator more capable than the
previous one.
2:47:29 PM
Ms. Klein appreciated the committee's confidence in her.
She suggested that the AIAS adequately addressed
challenges. She stated that she connected with competitors;
many are past coworkers of hers. She added that she would
continue to search for the right manager.
Senator Ellis appreciated the ability to speak. He asked
about the Capstone Loan Program, with only six loans made
since the beginning of this legislative session. He asked
if this level of performance was adequate or low. Ms. Klein
answered that the Capstone Loan Program was slower than
expected. She offered to provide the committee with future
information regarding the program. She felt that the
program was successful, as it remains focused on Alaska.
Co-Chair Stedman echoed the request for a program update.
2:50:43 PM
Senator Olson appreciated Ms. Klein's approach and style.
He opined that the airline industry is in distress due to
the thin margin necessary for stockholder comfort. He asked
about accounts receivable and how many carriers have not
paid. Ms. Klein stated that she could not answer the
question, but stated that AIAS accomplished much as an
international airport. Some small regional carriers have
greater difficulty.
Co-Chair Stedman asked Ms. Klein to include the 30, 60, and
90-day interest calculation for presentation to the
committee. He clarified his interest in dollar amounts.
Senator Olson asked about mergers with Era Aviation. Ms.
Klein responded that even in the economic downturn there is
ability to lease. She stated that the commissioner for
Military and Veteran's Affairs understands the merger.
Senator Olson asked about trends in Alaska General Aviation
within the Anchorage International Airport.
2:54:50 PM
Ms. Klein stated that General Aviation numbers remain the
same. Additional parking North of Lake Hood, replaced the
previous parking situation. The wait list for float
operations is 3-5 years rather than 20 years. The
operations may be down but the citing and use of the
airport remains the same for General Aviation.
Senator Olson asked about plans for the Lake Hood Strip.
Ms. Klein responded that the Lake Hood Strip has about 50
percent of customers requesting pavement. She thought it
ill advised to pave the strip, with paved runways existing
on the international side of the airport already providing
that option.
2:56:37 PM
Senator Thomas asked about a similar chart for the
Fairbanks International Airport. Ms. Klein answered that no
chart exists for the Fairbanks International Airport. She
communicated that she intends to create such a chart. She
anticipated an economic impact assessment for the community
of Fairbanks through a system plan.
Senator Thomas asked about the study's projected date of
completion. Ms. Klein replied that the necessary approval
granted by the Federal Aviation Administration (FAA) to
utilize grant funds. She hoped for a completed study with
information available prior to the next legislative session
in January.
Senator Huggins asked about volcano eruptions and the
decision process for airport closure. Ms. Klein responded
that the airport is always open. It is the discretion of
the pilot and airline to fly during a volcano eruption.
Co-Chair Stedman expressed gratitude for Ms. Klein's
presentation.
Ms. Klein stated that AIAS successfully sold a bond
refinancing the variable debt in January, which she felt
illustrates the confidence in Alaska aviation. She had
great confidence in Anchorage International and Fairbanks
International airports.
Co-Chair Stedman asked for a debt schedule included in the
requested financial statements.
3:00:07 PM
ADJOURNMENT
The meeting was adjourned at 2:59 PM.
| Document Name | Date/Time | Subjects |
|---|---|---|
| Letters Economic Stimulus SB161.pdf |
SFIN 3/23/2009 1:30:00 PM |
SB 161 |
| AIASlegisUpdate3-23-09.pdf |
SFIN 3/23/2009 1:30:00 PM |
|
| SB 125 Sponsor Statement (S FIN).pdf |
SFIN 3/23/2009 1:30:00 PM |
SB 125 |
| SB161 Econ Stimulus Summary from OMB.pdf |
SFIN 3/23/2009 1:30:00 PM |
SB 161 |