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AGENDA

Greenville-Spartanburg Airport Commission Regular Meeting Greenville-Spartanburg International Airport Conference Room at Administrative Offices

Monday, March 12, 2012, 9:00 a.m.

* NOTE TO ALL PUBLIC ATTENDEES: The public may speak on any item on the agenda. There are request cards located outside the public seating area. These cards must be completed and presented to the Recording Secretary prior to the item being heard. Your comments will be addressed prior to the Airport Commission’s discussion and you will have 5 minutes to address the Airport Commission. Thank you for your attention. I. CALL TO ORDER: II. CONSENT AGENDA:

A. Approval of the Greenville-Spartanburg Airport Commission January 17, 2012 Regular Meeting Minutes (document).

III. PRESENTATIONS:

A. Thanks Again Program.

B. Terminal Improvement Program Update.

C. Airfield Pavement Evaluation Study.

IV. OLD BUSINESS: None. V. NEW BUSINESS:

A. Approval of Phase 1 of Rental Car Counter/Office Relocation Project

(document). VI. PRESIDENT/CEO REPORT:

A. Aviation Industry Update.

2000 GSP Drive, Suite 1 ● Greer, SC 29651 ● Greenville: 864.877.7426 ● Spartanburg: 864.439.4476 ● Fax: 864.848.6225

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GREENVILLE-SPARTANBURG AIRPORT COMMISSION AGENDA Monday, March 12, 2012

B. One Year Celebration of Southwest’s Service at GSP.

C. Update on Property Acquisition.

D. Update on Tree Harvesting.

E. Concessions - Request for Proposals.

VII. INFORMATION SECTION: (Staff presentations will not be made on these items. Staff will be available to address any

questions the Commission may have.)

A. January 2012 - Traffic Report (documents).

B. January 2012 - Monthly Financial Report (document).

C. March 2012 - Development/Project Status Report (document).

D. March 2012 – Communications Status Report (document).

E. Industry Presentation(s)/Article(s) of Interest (document).

F. Potential Items for the Next Regular Scheduled Commission Meeting:

• Approval of Enabling Projects/Component Guaranteed Maximum Price. • Approval of Phase 2 of Rental Car Counter and Office Relocation

Project/Component Guaranteed Maximum Price. • Approval of GSP Airport District Budget - Fiscal Year 2012/2013

VIII. COMMISSION MEMBER REPORTS: IX. EXECUTIVE SESSION:

The Airport Commission may hold an Executive Session for the purpose of receiving legal advice on various matters.

X. ADJOURNMENT. This agenda of the Greenville-Spartanburg Airport Commission is provided as a matter of convenience to the public. It is not the official agenda. Although every effort is made to provide complete and accurate information to this agenda, the Airport Commission does not warrant or guarantee its accuracy or completeness for any


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GREENVILLE-SPARTANBURG AIRPORT COMMISSION AGENDA Monday, March 12, 2012

purpose. The agenda is subject to change before or at the Airport Commission meeting.

GREENVILLE-SPARTANBURG AIRPORT COMMISSION MINUTES

January 17, 2012 The Greenville-Spartanburg Airport Commission met on January 17, 2012 at 9:00 a.m. in the Greenville-Spartanburg Airport District Office Conference Room located at 2000 GSP Drive, Suite 1, Greer, SC 29651. MEMBERS PRESENT: Minor Shaw, Leland Burch, Valerie Miller, and Doug Smith. Bill Barnet and Hank Ramella participated via phone. STAFF AND LEGAL COUNSEL PRESENT: Dave Edwards-President/CEO, Kevin Howell-Vice President/COO, Jack Murrin-Vice President Administration and Finance/CFO, Rosylin Weston-Vice President Communications, Larry Estridge-WCSR Firm, Wanda Jones-Secretary, Mike Gula-Director of Operations, Nathan Garner-Aviation Services Manager and Whitney Code-Marketing Coordinator GUEST PRESENT: Jenny Munro-Greenville News, John Buzzy-Skanska Moss, Jim Fair-Greer Today, Gary Lott-LPA, and Phil Parkins-CDM Smith. CALL TO ORDER: Chair Minor Shaw called the meeting to order. CONSENT AGENDA:

A. Approval of the Greenville-Spartanburg Airport Commission November 14, 2011 “Special” Meeting Minutes: A motion was made, seconded, and unanimous vote received to approve the minutes from the November 14, 2011 “Special” Commission Meeting.

B. Approval of the Greenville-Spartanburg Airport Commission November 21, 2011 Regular Meeting Minutes: A motion was made, seconded, and unanimous vote received to approve the minutes from the November 21, 2011 Commission Meeting.

C. Approval of Airport Commission Meeting Dates/Times for Calendar Year 2012: A motion was made, seconded, and unanimous vote received to approve the Airport Commission Meeting Dates/Times for Calendar Year 2012. The meeting dates are: January 17, March 12, May 14, July 16, September 17, and November 19 at 9:00 am.

PRESENTATIONS:

A. Terminal Advertising Program Summary: Rosylin Weston gave a brief presentation on the Terminal Advertising Program. The Advertising Program has generated a net income of $2,147,780.00 from the time period October 2002 and November 2011. There are a total of 101 advertising spaces

available. Ms. Weston stated the airport will be facing some challenges with our advertising program as we move forward with the terminal renovations but Staff plans to keep advertisers informed. To date there is a 90% occupancy rate with the advertising opportunities that we have. Mr. Burch asked who handles the advertising? Ms. Weston stated an outside agency, AMG Advertising. Chair Shaw asked if we will be looking at advertising as we go through the Terminal Improvement Process? Mr. Edwards stated yes, and we will have a greater level of dynamic advertising as in signage that will give us similar advertising to the mega motion type displays with more LED screens. Mr. Barnet stated we have generated approximately 2.2 million in advertising but are we in the game or need improvement? Mr. Edwards stated that there is always room for improvement and we have the opportunity to increase overall revenue to the airport with the new terminal and with a revised program. As we move forward, Mr. Edwards expects the advertising program to be much higher producing revenue. Mr. Ramella asked about the status of the contract during construction. Mr. Edwards responded that it will be a good opportunity to re-evaluate the advertising program. Staff will be looking at various options as how to move forward and what will work best for the airport long term. Mr. Edwards stated that the most important thing during construction is customer service and communication.

B. Cargo Program Update: Mr. Nathan Garner, Aviation Services Manager presented a Power Point presentation on the status of Cargo. The Airport Commission approved $700k for cargo equipment and to date the following equipment has been purchased: Main Deck Loader, Cargo Dollies, Push Back Tractor, B-747 Tow bar, Cargo Tractors, and Forklifts. Mr. Edwards commented that the Aviation Services Group has done a great job of purchasing the equipment and making sure that we got the best value for the money that was allotted for purchase of this equipment. There is a favorable outlook for the GSP Air Cargo Market. The presence of multiple integrated carriers and the entrance of Southwest into the market was identified as strengths. International charters, integrated carriers, and logistics/distribution service centers are opportunities identified for the Aviation Services Group. Mr. Smith asked how we reach out to businesses such as Amazon. Mr. Edwards stated that Mr. Garner will be wearing two hats as Aviation Services Manager to develop the business as well. Mr. Garner is getting to know the freight forwarders and other logistic operators as well as meeting with industry such as BMW, and Michelin and discussing what Staff can do to help them. On a going forward basis; the same discussions will take place with Amazon. Mr. Burch asked what size staff is in the Aviation Services Group? Mr. Garner stated seven (7) and working to hire additional employees. Chair Shaw asked if Staff will be evaluating the cost analysis. Mr. Edwards responded that Mr. Garner has a lot of pro-formas which are being reviewed. The payback has been very positive to date and as this

side of the business continues to grow the investments that Staff makes will pay off.

OLD BUSINESS: None. NEW BUSINESS:

A. Approval of Amendment to Personnel Policy Section 207.00 – Conflict of Interest – Concerning the Hiring employees previously associated with Auditing/Financial Consulting firms doing business with the Airport District. Mr. Edwards stated that at the November Commission Meeting an Audit Committee was formed and from discussion among the Committee the Airport District should prohibit hiring employees previously associated with Auditing/Financial Consulting firms doing business with the Airport District within two (2) years of doing any work for the Airport District. The text of recommended Amendment was attached to the meeting agenda. A motion was made, seconded, and unanimous vote received to approve the Amendment to the Personnel Policy Section 207.00 – Conflict of Interest – Concerning the hiring employees previously associated with the Auditing/Financial Consulting firms doing business with the Airport District within two (2) years.

PRESIDENT/CEO REPORT:

A. Aviation Industry Report:

Mr. Edwards stated that there is some talk about Us Airways purchasing American Airlines which would make a mega carrier in the industry. Nationally and internationally impacts would be significant. AIP is still in limbo; hopefully Congress will pass a two-year extension. On a Nationwide basis, GSP was the number one (1) airport in the country for reduction in airfares for last period. Charleston was number two (2). This recognition was outstanding for the airport. Mr. Edwards stated that in the future, Commissioners will see in the Information Update Package a Marketing/Advertising section in order to keep the Commissioners informed. Property Acquisition – The Airport District has closed on two parcels: thirty-two (32) acres on J. Verne Smith Parkway and Highway 101 and a small U-shaped tract which is four (4) acres. Staff continues to move forward with additional land acquisitions that have previously been discussed.

INFORMATION SECTION: Mr. Edwards asked if anyone had any questions concerning the information section. Mr. Edwards stated that the MUFIDS should be installed and running by the next regular scheduled Commission Meeting. Air-Traffic Control Tower – Staff has met with the FAA and this project is still in discussion but is a slow process. Passenger Boarding Bridge Replacement – This project will begin in February and will be on a 2-3 week replacement cycle. Fixed Ground Power and PC Air will also be installed. Terminal Improvement Program – Currently in the Design Development Phase. The TIP Task Force will meet on January 31st to discuss store front and several building envelope items will be discussed. Economy Lot Expansion Project – Continues to move ahead. 95% design drawings have been completed. The Army Core of Engineers permitting process has slowed things down but the goal is to have this project completed by the July 4th Holiday. Former Rent a Car Service Center – The cell phone lot will be moved to this location. Fencing and paving have been completed. There is still some clean-up to be done. Staff will be working on installing an Arrivals Display Board. This lot should be open within thirty (30) to forty five (45) days. South Cargo Modernization Project – Mr. Edwards stated there was 1 million in the budget for this project; however, another 2 million will be in the budget for this year. After the study was completed on the cargo building, Staff believes there is approximately 3 million in improvements to be completed in order to get this building up to code compliance. Land Use Planning Study – Moving on Schedule Mr. Burch stated that Staff needs to consider revising the signage for the entire airport. Mr. Edwards stated that Staff has identified signage as a need and during the Terminal Improvement Program a complete signage package will be reviewed.

COMMISSION MEMBER REPORTS: None.

ADJOURNMENT: There being no further business, a motion was made, seconded and a unanimous vote received to go adjourn the meeting. The meeting was adjourned at 10:30 am.

2000 GSP Drive, Suite 1 ● Greer, SC 29651 ● Greenville: 864.877.7426 ● Spartanburg: 864.439.4476 ● Fax: 864.848.6225 www.gspairport.com

_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: David Edwards, President/CEO DATE: March 12, 2012 ITEM DESCRIPTION – New Business Item A Approval of Phase 1 of Rental Car Counter/Office Relocation Project BACKGROUND The Terminal Improvement Program (TIP) requires the relocation of the rental car counters and offices from the baggage claim area of the terminal to the first and second levels of Parking Garage A. ISSUES The relocation of these rental car facilities is a critical path element to implement the overall TIP. As such, there is a need to get an early start on the demolition and structural work required for the project in order to ensure a timely delivery of the overall rental car relocation. ALTERNATIVES Staff does not have any alternatives to recommend due to the critical nature of this work. FISCAL IMPACT The estimated budget for Phase 1 of the Rental Car Relocation Project is $1.5 million (see attachment). The overall rental car relocation project is estimated between $2.5 million and $3.0 million. The entire Rental Car Relocation Project will be funded through


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GSP Airport Commission New Business Item A Approval of Phase 1 of Rental Car Counter/Office Relocation Project Page 2

the on-going collection of Customer Facility Charges and therefore is a separately budgeted program item. RECOMMENDED ACTION It is respectfully requested that the Airport Commission (1) approve the Phase 1 Rental Car Relocation Budget in the amount of $1.5 million; and (2) authorize the President/CEO to negotiate a Component Guaranteed Maximum Price with Skanska/Moss (Construction Manager at Risk) for this phase of the project not-to-exceed $1.5 million and execute the necessary documents to complete the work. Attachment


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: David Edwards, President/CEO DATE: March 12, 2012 _____________________________________________________________ PRESIDENT/CEO’S REPORT:

A. Aviation Industry Update.

B. One Year Celebration of Southwest’s Service at GSP.

C. Update on Property Acquisition.

D. Update on Tree Harvesting.

E. Concessions - Request for Proposals.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: David Edwards, President/CEO DATE: March 12, 2012 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item A January 2012 - Traffic Report SUMMARY Great passenger numbers again for January 2012 as passenger traffic was up 45.3% over the same month in 2011. Cargo traffic was up 12.7% for January 2012 over January 2011 continuing the strong growth in cargo traffic. In addition, both aircraft operations and fuel sales for January 2012 were up over January 2011. On a national basis January 2012 traffic numbers were not available. However, the national traffic numbers were published for December 2011 and passenger traffic was up 1.1% and cargo traffic was down 2.0%. Attached is a copy of the detailed traffic report January 2012.

Jan 2012 Jan 2011Percentage

Change *CYTD-2012 *CYTD-2011Percentage

ChangeCategory *MOV12-2012 *MOV12-2011Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportJanuary 2012

Passenger Traffic

EnplanedDeplaned

64,07063,646

44,49743,396

64,070 44,49763,646 43,396

44.0%46.7%

Total 127,716 87,893 45.3% 127,716 87,893

44.0%46.7%

45.3%

905,676889,656

643,398627,995

1,795,332 1,271,393 41.2%

40.8%41.7%

Cargo Traffic (Pounds)

00

Mail

Express

Freight

Total

5,0364,191

1,983,9212,128,867

#Num!#Num!

00

7,4534,984

1,887,7881,755,772

EnplanedDeplaned

EnplanedDeplaned

EnplanedDeplaned

Subtotal

Subtotal

Subtotal

-32.4%-15.9%

5.1%21.2%

4,112,788 3,643,560 12.9%

9,227 12,437 -25.8%

0 0 #Num!

4,122,015 3,655,997 12.7%

00

5,0364,191

1,983,9212,128,867

00

7,4534,984

1,887,7881,755,772

0194

65,53862,935

26,987,20929,481,098

018

62,50629,734

25,870,46723,631,341

#Num!977.8%

4.9%111.7%

4.3%24.8%14.1%

39.3%

977.8%

14.1%

#Num!#Num!

-32.4%-15.9%

5.1%21.2%12.9%

-25.8%

#Num!

12.7%

4,112,788 3,643,560

9,227 12,437

0 0

4,122,015 3,655,997

56,468,307 49,501,808

128,473 92,240

194 18

56,596,974 49,594,066

Tuesday, March 06, 2012

*CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Page 1 of 2



ChangeCategory *MOV12-2012 *MOV12-2011Percentage

Change

Monthly Traffic ReportGreenville-Spartanburg International AirportJanuary 2012

Aircraft Operations

AirlinesCommuter/Air Taxi

Subtotal

GeneralAviation

Military

Subtotal

1,039 268

666

2,174 2,324

876

74 96

3,213

Total

2,592

740 972

3,953 3,564

287.7%

-6.5%

24.0%

-24.0%

-22.9%

-23.9%

10.9%

1,039

2,174

74

268

2,324

96

5,293

29,320

934

10,873

28,284

1,038

287.7%

-6.5%

24.0%

-24.0%

-22.9%

-23.9%

10.9%

105.4%

-3.5%

13.1%

-6.3%

11.1%

-4.8%

8.7%

3,213 2,592 39,157 34,613

666 876 9,738 10,390

740 972

3,953 3,564

10,776 11,324

49,933 45,937

Fuel Gallons

100LLJet A (GA)

Subtotal

Jet A (A/L)

Total

53,1422,984

845,792

60,6552,645

723,429

53,1422,984

845,792

60,6552,645

723,429

769,42736,190

11,710,038

642,58241,200

9,811,529

56,126 63,300 -11.3% -11.3% 17.8%56,126 63,300 805,617 683,782

901,918 786,729 14.6% 14.6% 19.2%901,918 786,729 12,515,655 10,495,311

12.8%-12.4%

12.8%-12.4%

-12.2%19.7%

16.9% 16.9% 19.3%


*CYTD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Page 2 of 2

Airline Enplanements, Seats, and Load FactorsGreenville-Spartanburg International AirportJanuary 2012



Change

4,8785,700

5,7976,600

Allegiant AirEnplanementsSeatsLoad Factor

-15.9%-13.6%

85.6% 87.8% -2.6%

4,8785,700

5,7976,600

85.6% 87.8%

-15.9%-13.6%-2.6%

4,0455,726

4,3895,588

American AirlinesEnplanementsSeatsLoad Factor

-7.8%2.5%

70.6% 78.5% -10.1%

4,0455,726

4,3895,588

70.6% 78.5%

-7.8%2.5%

-10.1%

4,0747,050

3,3946,050

Continental AirlinesEnplanementsSeatsLoad Factor

20.0%16.5%

57.8% 56.1% 3.0%

4,0747,050

3,3946,050

57.8% 56.1%

20.0%16.5%3.0%

19,29628,954

16,56022,829

Delta Air LinesEnplanementsSeatsLoad Factor

16.5%26.8%

66.6% 72.5% -8.1%

19,29628,954

16,56022,829

66.6% 72.5%

16.5%26.8%-8.1%

13,21729,669

00

Southwest AirlinesEnplanementsSeatsLoad Factor

#Div/0!#Div/0!

44.5% #Num! #Type!

13,21729,669

00

44.5% #Num!

#Div/0!#Div/0!#Type!

Tuesday, March 06, 2012 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.



Change

5,2497,850

4,6267,700

United AirlinesEnplanementsSeatsLoad Factor

13.5%1.9%

66.9% 60.1% 11.3%

5,2497,850

4,6267,700

66.9% 60.1%

13.5%1.9%

11.3%

13,22720,940

9,73115,811

US AirwaysEnplanementsSeatsLoad Factor

35.9%32.4%

63.2% 61.5% 2.6%

13,22720,940

9,73115,811

63.2% 61.5%

35.9%32.4%2.6%

63,986105,889

44,49764,578

EnplanementsSeatsLoad Factor

43.8%64.0%

60.4% 68.9% -12.3%

Totals63,986

105,88944,49764,578

43.8%64.0%

60.4% 68.9% -12.3%

Tuesday, March 06, 2012 *CTYD = Calendar Year to Date and *Mov12 = Moving Twelve Months.

Monthly Enplanements By YearGreenville-Spartanburg International Airport

Enp

lane

men

ts

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2010 ‐ 42682 ‐ 40413 ‐ 51140 ‐ 51653 ‐ 55641 ‐ 60105 ‐ 62159 ‐ 57204 ‐ 53577 ‐ 59082 ‐ 55481 ‐ 52446

2011 ‐ 44497 ‐ 43763 ‐ 71532 ‐ 77441 ‐ 82759 ‐ 85055 ‐ 85730 ‐ 78851 ‐ 76221 ‐ 85807 ‐ 79062 ‐ 75385

2012 ‐ 64070 ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)


Monthly Seats By YearGreenville-Spartanburg International Airport

Sea

ts


20000

40000

60000

80000

100000

120000

2010 ‐ 68595 ‐ 63653 ‐ 72048 ‐ 75537 ‐ 77622 ‐ 79099 ‐ 83066 ‐ 81931 ‐ 78138 ‐ 76592 ‐ 74756 ‐ 71195

2011 ‐ 64578 ‐ 61173 ‐ 97046 ‐ 109309 ‐ 109940 ‐ 110615 ‐ 110025 ‐ 110544 ‐ 105171 ‐ 111106 ‐ 107483 ‐ 105031



Monthly Load Factors By YearGreenville-Spartanburg International Airport

Load

Fac

tor

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2010 ‐ 62.22% ‐ 63.49% ‐ 70.98% ‐ 68.38% ‐ 71.68% ‐ 75.99% ‐ 74.83% ‐ 69.82% ‐ 68.57% ‐ 77.14% ‐ 74.22% ‐ 73.67%

2011 ‐ 68.90% ‐ 71.54% ‐ 73.71% ‐ 70.85% ‐ 75.28% ‐ 76.89% ‐ 77.92% ‐ 71.33% ‐ 72.47% ‐ 77.23% ‐ 73.56% ‐ 71.77%

2012 ‐ 60.44% ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank) ‐ (Blank)


Total Monthly Passengers By YearGreenville-Spartanburg International Airport

Tota

l Pas

seng

ers


20000

40000

60000

80000

100000

120000

140000

160000

180000

2010 ‐ 85051 ‐ 78214 ‐ 101355 ‐ 103453 ‐ 109492 ‐ 117904 ‐ 123929 ‐ 114577 ‐ 106693 ‐ 116340 ‐ 108809 ‐ 102734

2011 ‐ 87893 ‐ 86224 ‐ 140292 ‐ 155521 ‐ 162843 ‐ 167348 ‐ 170020 ‐ 157112 ‐ 151304 ‐ 170521 ‐ 157843 ‐ 147816



Airline Market Share Analysis (Enplanements)Greenville-Spartanburg International AirportReport Period From January 2012 Through January 2012


Airline Flight CompletionsGreenville-Spartanburg International AirportJanuary 2012

AirlineScheduled

Flights

Cancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

Air Cargo Carriers 3 0 0 0 0 100.0%0

Allegiant Air 38 0 0 0 0 100.0%0

American Airlines 116 0 0 0 2 98.3%2

Continental Airlines 144 0 0 0 3 97.9%3

Delta Air Lines 411 0 0 0 0 100.0%0

Federal Express 36 0 0 0 0 100.0%0

Kalitta Charters II 2 0 0 0 0 100.0%0


AirlineScheduled

Flights

Cancellations Due To

Field Mechanical Weather OtherPercentage of

Completed FlightsTotal

Cancellations

Kolo Canyons Air Service 2 0 0 0 0 100.0%0

Northern Air Cargo 3 0 0 0 0 100.0%0

Royal Air Freight 1 0 0 0 0 100.0%0

Sky King 2 0 0 0 0 100.0%0

Southwest Airlines 217 0 0 0 0 100.0%0

United Airlines 161 0 0 0 4 97.5%4

UPS 31 0 0 0 0 100.0%0

US Airways 400 0 4 2 0 98.5%6

Total 0 4 2 91,567 15 99.0%



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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Jack G. Murrin, VP of Administration & Finance/CFO DATE: March 12, 2012 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item B January, 2012 - Monthly Financial Report SUMMARY Operating Income was up by 3.49% when compared to the budget for Year-to-Date January 2012. Operating Expenses were down by 4.89% over the budgeted amount for the period. Net operating income was up 13.34% versus the budget through January 2012. For the period ending January 2012 which is 7 months of the fiscal year a total of about $6.4 million has been returned to the bottom line in operating income. Variances from budget can be rather volatile during the beginning of the fiscal year and will typically smooth out as the year progresses. Attached is a copy of the detailed financial report for January 2012.

January 31, 2012 FINANCIAL STATEMENT PACKAGE

GREENVILLE SPARTANBURG AIRPORT DISTRICT

BALANCE SHEET

ASSETSCash Accounts

Investments-Airport

Bond Trustee Assets

Accounts Receivable

Less: Reserve for Doubtful Accts

Net Accounts Receivable

Inventory

Prepaid Insurance

Unamort Bond Underw, Insur, Legal Fees

Notes Receivable-RAC District Funds

Property, Plant & Equipment (PP&E)

Less: Accumulated Depreciation

Net PP&E

TOTAL ASSETS

LIABILITIES & EQUITYAccounts Payable

Revenue Bonds Payable

Benefit Liability

Deferred Revenues

TOTAL LIABILITIES

Contributed Capital-Grants

Retained Earnings - Beginning of Year

Net Profit/(Loss)-YTD

TOTAL EQUITY

TOTAL LIABILITIES & EQUITY

Current Month Current Month

Current FY Prior FY

1/31/2012 1/31/2011

6,667,627.09 8,253,442.97

82,442,804.01 78,255,437.31

357,530.36 755,921.26

460,516.92 501,329.45

-

460,516.92 501,329.45

144,297.03 208,274.71

222,358.77 232,773.22

67,608.07 122,926.35

2,694,550.20 2,866,360.10

234,545,574.15 236,149,120.87

(119,214,750.37) (117,674,159.85)

115,330,823.78 118,474,961.02

208,388,116.23 209,671,426.39

467,428.64 419,333.75

3,573,121.52 7,068,755.05

725,212.20 716,681.67

2,694,550.20 2,866,360.10

7,460,312.56 11,071,130.57

140,322,144.00 136,135,161.54

58,257,029.05 58,543,307.00

2,348,630.53 3,921,827.73

200,927,803.58 198,600,296.27

208,388,116.14 209,671,426.84

Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

GREENVILLE SPARTANBURG AIRPORT DISTRICT

PROFIT and LOSS STATEMENT

January 31, 2012 January 31, 2012

Actual Budget Actual - Budget % Change

INCOME

Landing Area:Landing Fees 1,176,967.12 1,098,827.45 78,139.67 7.11% (a)

Aircraft Parking Fees 171,914.66 157,528.50 14,386.16 9.13%

FBO Into-Plane & Fuel Flowage 63,794.57 54,884.34 8,910.23 16.23%

Subtotal Landing Area 1,412,676.35 1,311,240.29 101,436.06 7.74%

Space & Ground Rentals 3,484,566.61 3,297,036.40 187,530.21 5.69% (b)

Auto Parking 4,866,305.34 5,142,816.52 (276,511.18) -5.38% (c)

Commercial Ground Transportation 104,357.17 72,916.67 31,440.50 43.12% (d)

Concessions:Advertising 117,512.18 116,666.67 845.51 0.72%

Food & Beverage 159,140.56 127,410.05 31,730.51 24.90% (e)

Rental Car 1,668,338.82 1,433,190.50 235,148.32 16.41% (f)

Retail 227,287.63 198,333.33 28,954.30 14.60%

Other 606.13 60.64 545.49 899.60%

Subtotal Concessions 2,172,885.32 1,875,661.19 297,224.13 15.85%

Expense Reimbursements 307,492.21 311,471.52 (3,979.31) -1.28%

Other Income 421,889.13 328,361.13 93,528.00 28.48% (g)

Total Operating Income 12,770,172.13 12,339,503.71 430,668.42 3.49%

EXPENSESSalary & Benefits 3,183,181.47 3,474,601.55 (291,420.08) -8.39% (h)

Professional Services 87,341.08 148,458.33 (61,117.25) -41.17% (i)

Promotional Activities 510,074.17 319,404.17 190,670.00 59.70% (j)

Administrative 348,188.04 390,121.64 (41,933.60) -10.75% (k)

Insurance 246,923.74 246,923.71 0.03 0.00%

Contractual Services 742,814.63 774,208.04 (31,393.41) -4.05%

Rentals & Leases 31,088.28 21,816.67 9,271.61 42.50%

Repairs & Maintenance 170,404.08 300,472.53 (130,068.45) -43.29% (l)

Supplies & Equipment 363,601.55 307,122.08 56,479.47 18.39% (m)

Utilities 656,403.29 683,082.72 (26,679.43) -3.91%

Total Operating Expenses 6,340,020.33 6,666,211.42 (326,191.09) -4.89%

NET OPERATING INCOME 6,430,151.80 5,673,292.29 756,859.51 13.34%- -

<--------------------------- FISCAL YEAR TO DATE -------------------------------->

Interim Report: Prepared on a "Non-GAAP" Basis for Internal Use only UNAUDITED

January 31, 2012

(a) Landing Fees OVER BUDGET $78,139.67 - More landed weights/flights than budgeted YTD:

* 1.306B lbs landed weight budgeted/12mo = 108.9M lbs/mo*7=762ytd

* YTD 2011 landed weight = 817M lbs/ytd

* 817/762 = 7.2% increase in actual landed weight

(b) Space & Ground Rentals OVER BUDGET $187,530.21 - 37K accounting adjustment for common use area calculation July '11

- United space not budgeted 9K per month

- Common Use averaging 8K per month more than budgeted

(c) Auto Parking UNDER BUDGET $276,511.18 - Actual parking revenue per enplanement is lower than budgeted

due to the effect of sky lots & overly aggressive budgeting assumptions

(d) Commercial Ground Transportation OVER BUDGET $31,440.50 - 5K over budget for Limo Service

- 27K over budget for Ground Transportation Permitting Fees

(e) Food & Beverage OVER BUDGET $31,730.51 - SWA effect was more than anticipated

(f) Rental Car OVER BUDGET $235,148.32 - SWA effect was greater than anticipated; YTD exceeds the

RAC MAGs (Minimum Annual Guarantee)

(g) Other Income OVER BUDGET $93,528.00 - Sale of surplus equipment 45K

- AvSrvc forklift and GPU equipment fee 21K

(h) Salary & Benefits UNDER BUDGET $291,420.08 - Budgeted 112 FTEs as if employed entire year; we still have vacancies

and new positions open

(i) Professional Services UNDER BUDGET $61,117.25 - Consulting 16K over budget

- Legal expenses 87K under budget

(j) Promotional Activities OVER BUDGET $190,670.00 - Advertising expenses 107K under budget due to timing

- $300K in business incentives paid to SWA as part of service agreement

- Special Events expenses 22K under budget due to timing

- Sponsorship expenses 16K not budgeted

(k) Administrative UNDER BUDGET $41,933.60 - 39K under budget for Travel & Training

(l) Repairs & Maintenance UNDER BUDGET $130,068.45 - Equipment R&M under budget 67K

(m) Supplies & Equipment OVER BUDGET $56,479.47 - 28K over budget for Painting, mostly Airfield

- 15K over budget for Electrical, mostly N. Cargo

YTD ACTUAL VS YTD BUDGET FOOTNOTES


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Kevin Howell, Vice President / COO DATE: March 12, 2012 ____________________________________________________________ ITEM DESCRIPTION – Information Section Item C March 2012 – Development/Project Status Report SUMMARY Control Tower Site Study: Status – No new information Project Budget – na Estimated Completion Date - na The AFTIL 1 site simulation was held at the FAA Technical Center in Atlantic City, NJ in February 2011. A total of 13 sites were analyzed for required tower height, TERPS interference and other criteria as outlined in FAA Order 6480.4A “Airport Traffic Control Tower Siting Process”. A total of 4 viable sites were selected for further consideration. FAA engineering staff developed rough order of magnitude (ROM) cost estimates for all four sites. Staff met with the FAA in mid-May to review those figures and discuss the next steps. An additional meeting was held in January with another FAA representative to discuss alternatives that may allow this project to move forward. Discussions will continue with the FAA regarding this project and a potential partnership to construct a new tower at GSP. Passenger Boarding Bridge (PBB) Replacement Project: Status – Onsite work begins March 5, 2012 Project Budget – $3,342,706.40 Estimated Completion Date – June 12, 2012


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Greenville-Spartanburg Airport Commission Information Section Item C March 2012 – Project Status/Update Page 2

This project includes the replacement of eight (8) passenger boarding bridges located at Gates A1, A2, A3, A4, B1, B2, B3 and B4. Bids were received on June 30, 2011 and the Commission approved awarding the contract to the lowest responsive bidder, ThyssenKrupp Airport Systems (TKAS). On-site work for the first two bridge units starts the week of March 5. Pre-Conditioned (PC) Air & Fixed Ground Power Project: Status – Onsite work begins March 19, 2012 Project Budget – $1,123,944.50 Estimated Completion Date – June 12, 2012 This project includes the purchase and installation of nine (9) pre-conditioned air, nine (9) fixed ground power units and the retrofit of five (5) passenger boarding bridges for bridge pre-conditioning. At the conclusion of this project all thirteen gates at GSP will have similar service equipment for airline operations including PC air and fixed ground power. Bids were received on July 1, 2011 and the Commission approved awarding the contract to the lowest responsive bidder, INET Airport Systems (INET). Installation is coordinated to coincide with the PBB installation schedule. Terminal Improvement Program: Status – Design Development (DD) Phase continues to progress Project Budget – $103,000,000.00 Estimated Completion Date – December 31, 2015 The Terminal Improvement Program (TIP) Team has begun the Design Development (DD) and Construction Document (CD) Phases based upon the approval of the Schematic Design (SD) Phase at the November Commission Meeting. A Commission Task Force meeting was held on January 31, 2012 to review several items. Current tasks underway include: finalizing the curtainwall assemblies, glazing selection, restroom finish decisions, and determining the phasing of the overall program. MUFIDS & Paging Project: Status – Onsite work underway Project Budget - $385,504.90 Estimated Completion Date – April 10, 2012


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This project involves the replacement of the head-end equipment for the MUFIDS and paging systems in the terminal, allowing for automatic FIDS updates for airline flight information and provide for an improved public address and paging system. Cabling and endpoints such as LCD screens and speakers will be replaced during the Terminal Improvement Program. A second Request for Proposals (RFP) process for the replacement of the MUFIDS and Paging system was conducted in August and the Commission approved the final rankings at the September Commission meeting. On-site work is now underway and is being coordinated with GSP IT. Economy Parking Lot Expansion Project: Status – USACE permit approved, proceeding to bid Project Budget – $2,700,000.00 Estimated Completion Date – August 31, 2012 This project involves the expansion of the Economy Parking Lot and the engineering/design is being led by The LPA Group. USACE permits have been received and the design documents are being finalized. The bidding process will start in the next several days. Land Use Planning & Development Study: Status – Task 2 underway Project Budget – $500,000.00 Estimated Completion Date – October, 2012 Working Paper #1, which included the real estate market analysis, was submitted in January for review and Staff provided comments back to the CDM team. A Task Force meeting was held in January to review the data collected to date and provide a general update on the Study. The CDM team continues work on the next tasks, including conceptual site plans. The next Task Force meeting will be held in April. Former Rental Car Service Lot Project: Status – New Cell Phone Lot opened March 1, 2012 Project Budget – $96,562.00 Estimated Completion Date – completed March 1, 2012 The new Cell-Phone Lot opened on March 1, 2012.


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South Cargo Modernization Project: Status – Building evaluation complete, scope & fee underway Project Budget – to be established Estimated Completion Date – April 1, 2012 The South Cargo Modernization Project is a budgeted capital improvement project and includes general improvements to the South Cargo Building. Phase 1 included a professional evaluation of the facility and an estimate of probable construction costs. A fee and scope for design and construction documents is being finalized with the LPA Group for this project.


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_____________________________________________________________ MEMORANDUM TO: Members of the Airport Commission FROM: Rosylin Weston, Vice President - Communications DATE: March 12, 2012 _____________________________________________________________ ITEM DESCRIPTION – Information Section Item D March 2012 - Communications Report SUMMARY News Articles:

• Town Magazine - “Taking Off Greenville-Spartanburg International Airport Celebrates 50 Years of Flying High”

• Spartanburg Herald Journal - “GSP Prepares to Start $102 Million Renovation Of Main Terminal-Our Gateway to the World” (12/28)

• Go Upstate - “GSP to Launch $102 Million Facelift in 2012” (12/28) • Spartanburg Herald Journal - “GSP Test Drives Electric Vehicle for 6 Months”

(12/27) • USA Today Blog - Highlighting Terminal Improvement Project (Week of 12/30) • Greenville Journal - Article highlighting Terminal Improvement Project and the

Largest Airfare Decrease of any airport in the country. • Spartanburg Journal - Article highlighting Terminal Improvement Project and

the Largest Airfare Decrease of any airport in the country. • GSA Business - “GSP Fares Down Sharply” • Greenville News - “Airport Wants to Boost Cargo” • Greenville On-Line - “GSP Pushing for Cargo Traffic” • Greenville News - “GSP Airport Begins Harvesting Pine and Hardwood Trees” • Greenville On-Line - “GSP Harvesting 94.4 Acres of Trees” • Greenville News - “Airport Win Governor’s Cup in Tourism” • Greenville Journal - “GSP May Change Land Use” • Spartanburg Journal - “GSP May Change Land Use”


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Greenville-Spartanburg Airport Commission Information Section Item D March, 2012 Communications Report Page 2

News Releases: • GSP Airport Presented 2011 Governor’s Cup • GSP Opens New Cell Phone Lot • GSP Airport Tree Harvest

Presentations:

• Presented at the Spartanburg Chamber of Commerce Transportation Focus Group Promotions:

• Developed and produced series of radio commercials for Columbia area radio group Cumulus.

• Developed and produced series of radio commercials for Western North Carolina radio group Clear Channel

• Organized GSP Night at Road Warriors Game – Developed series of commercial Scripts read Live during game

Website Statistics:

• 37,330 Visitors to our site between January 27th and February 26th of this total 64.5% were new visitors

• 31,113 flight reservations utilizing the GSP booking engine through 3rd Quarter 2011

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