Finance and Economics


We draw upon our understanding of finance and economic principles and airport operations to formulate financial strategies that assist our airport clients in meeting their financial requirements. Since 1989, our consultants have helped airports achieve their financial and capital funding goals and objectives. Our services include:

  • Financial Plan Development & Analysis
  • Passenger Facility Charges Planning and Implementation
  • Financial Feasibility Preparation
  • Rates and Charges Development
  • Federal Assistance Maximization
  • Transportation Demand Modeling and Forecasting
  • Benefit -Cost Analysis (BCA)
  • Economic Impact Studies
  • Survey Research and Special Studies

Financial Plan Development & Analysis

We assist airports in preparing sound, practical and flexible financial plans to fund short- and long-term capital programs. Our analyses have formed the basis for airports to evaluate alternative capital improvement funding plans. We prepare sensitivity analysis, or “what-if” scenarios, to evaluate the potential financial effects of changes in key planning variables. Essential for analyzing the financial impact of policy decisions, investments, and operational changes, this approach has enabled us to assist our clients in formulating financial plans that provide optimum benefits.

Passenger Facility Charges Planning and Implementation

We have advised airports in all aspects of PFC program planning and implementation, including the PFC application process and PFC-backed bond financings. In total, we have assisted airports with the development and submission of more than 70 PFC applications and application amendments, used to fund more than $2.5 billion in eligible projects. Not only have we participated in several PFC-related financings, we prepared the first ever PFC stand-alone bond financing in the nation. We also have prepared financial feasibility reports for PFC-backed financings for a number of major airports. .

Financial Feasibility Preparation

We have prepared financial feasibility studies to support more than $6.5 billion general airport revenue bond (GARBs) issues, PFC-backed bond issues, an FAA Letter of Intent (LOI)-backed bond issue, and special facility financings for airport rental car facilities. We are best known for our unique approach to the financial feasibility analysis of airport demand forecasting, which combines cutting-edge econometric modeling techniques in forecasting airport demand with dynamic financial modeling techniques. .

Rates and Charges Development

Having a rate and fee methodology that is most beneficial to an airport is critical to its economic viability. The methodologies for calculating these rates and fees vary depending on the agreements between the airport and its airline partners. We prepare detailed financial analyses to help clients evaluate the strengths of their existing methodologies or to formulate new ones. We adapt our clients’ rates and charges models or develop new models to evaluate the potential financial effects of alternative business arrangements, development scenarios and economic circumstances. Providing counsel to airports in airline use and lease agreement negotiations, we assist clients in developing “win-win” use and lease agreements that are fair to airlines while safeguarding the airport’s interest. .

Federal Assistance Maximization

We assist airports in maximizing their receipt of funding from grant programs such as the Airport Improvement Program (AIP) and revenues from the PFC program. We also assist airports with compliance reviews of airline use and lease agreements, with the development of airport capacity studies. Our expertise includes identifying strategies to increase access to AIP discretionary and noise-related grants; identifying and analyzing innovative financing opportunities, including those specifically listed in the AIP statute and those developed by the FAA through administrative action; assisting airports in developing PFC applications and programs to increase project eligibility and gain approval to collect at the maximum desired PFC rate; developing benefit cost analysis and project justification; developing LOI applications and strategies; and assisting airports with land reuse plans that meet recently published federal requirements about disposal of land acquired with federal noise grant funds. .

Transportation Demand Modeling and Forecasting

Airport financial feasibility studies, master plans and PFC programs depend on credible assessments of future transportation demand. Our analyses also serve as a basis for airport planning, rates and charges setting, and decision-making regarding airport day-to-day operations as well as capital improvement plans. Proficient in linear and nonlinear regression methods, discrete choice econometrics, and duration analysis, our economists have experience in assessing aviation activity, airport rental car demand, airport parking demand, and ground access model choice. We assess airport catchment areas using GIS and geo-spatial analysis for airport ground access planning, and air service marketing and development. Airport’s use our assessments of airport passenger profiles for facility planning, and air service marketing and development. .

Benefit -Cost Analysis (BCA)

FAA guidelines stipulate that airport sponsors conduct a BCA to demonstrate the merit of capacity-related projects for which they anticipate the need for $5 million or more in AIP discretionary grant funding or any amount in LOI grant funding. our economists are highly proficient and experienced in completing high quality BCA’s that meet FAA requirements. .

Economic Impact Studies

Clearly appreciating the economic significance of an airport is essential in public debate about the airport’s current utilization and its planned major capital improvements. .

Economic impact analysis assesses the employment, earnings and output impact of the improvement and the use of aviation services. our economists have the critical know-how for evaluating the direct, indirect and induced economic impact of an airport’s current operations and the economic implications of proposed development options. Our regional economic and demographic assessments provide information for air service development. We can couple this expertise with our background in stakeholder relationship management to help stakeholders understand the airport’s economic value to them. .

Survey Research and Special Studies

We conduct research on any specialized topic that is essential to effective airport planning. Our research studies include survey design and implementation, careful collection and evaluation of relevant secondary data, and the application of cutting-edge statistical methods in interpreting survey data. .