Upgrading Airports Across the United States
Detroit Metropolitan, New York's JFK International, Atlanta's Hartsfield-Jackson International, and San Francisco International airports are undergoing significant overhauls, reflecting the need for modernization in America's air travel infrastructure. Many airport facilities, built 40 years ago, are in need of updates or replacements.
The increased need for infrastructure financing at U.S. airports is primarily due to capacity and demand pressures on airport infrastructure. Upgrades and expansions are necessary to handle more traffic efficiently and meet modern requirements. According to Roger Dow, President and CEO of the U.S. Travel Association, significant investments in airport infrastructure are essential to realise these benefits.
Changing aircraft technology is another factor necessitating airport equipment and infrastructure updates. The top three states by airport capital needs are Texas ($8.3 billion), Florida ($7 billion), and California ($6.6 billion). Sixteen top airports have infrastructure project needs exceeding $1 billion, including Philadelphia, Chicago, Los Angeles, Denver, and Baltimore.
The need for increased infrastructure funding is driven by projected passenger traffic growth of 3.2% annually through 2032 and freight activity growth of 4.9% annually through 2032. The FAA reauthorization bill includes provisions to fund some, but not all, of the needed airport infrastructure projects.
Despite the efforts of ACI-NA and the American Association of Airport Executives, more funding for airport infrastructure projects is still not readily available. Infrastructure projects at airports are significant job creators and economic development engines for their communities. However, airports have delayed or scaled back capital projects in response to airline industry consolidation, reduced airline service, and challenging economic conditions.
The Minneapolis-St. Paul International Airport is adopting solar power as part of its modernization efforts. Other airports have added new terminals, improved runways, and undertaken various infrastructure projects. Without world-class airports, America may become less connected, less productive, and less competitive in a global economy.
The Obama Administration has set a goal of attracting 100 million overseas visitors by 2021, which could create an additional 1.3 million American jobs and $859 billion in spending. The FAA predicts that there will be one billion air travelers per year in the U.S. by 2024. However, the success of these ambitious plans hinges on the availability of adequate funding for airport infrastructure projects.
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