2021 Annual Report - A.B. Won Pat International Airport Authority, Guam

Self-Sustaining Organization

The A. B. Won Pat International Airport Authority, Guam is a self -sustaining autonomous government agency and the only civil airport operator on the island. Established in 1974, the Guam Airport is the people’s pride, with over 3.8M passengers processed annually.

Mission

Our mission is to ensure the safety and security of the traveling public, maintain superior and reliable level of airport services, and support the development of air services and facilities which are integral to the island's economic growth.

Vision

"Vision Hulo'" is a set of initiatives the Airport has undertaken to create future growth, development and opportunities for the Airport and for Guam that incorporates its capital improvement projects, revenue programs, increased services and enhanced operations.

A Message from Our Governor and Lt. Governor Of Guam

Håfa Adai!

At the beginning of the pandemic, when terminals closed and travel ceased, the growth of the global airline industry grinded to a halt. As the Guam International Airport Authority (GIAA) celebrated 45 years in 2021, our island continued responding to protect the health of our people.

In the face of an important milestone and international crisis, the good workers of GIAA steamed ahead and welcomed every challenge with courage and determination. The ability of our airport to stay open and offer essential flight service is a direct testament to the diligence and drive of its valuable employees.

Through your commitment, our island was able to receive its first lifesaving doses of the COVID-19 vaccine. Even as passenger travel remained low, GIAA was able to stimulate growth with increased air freight and cargo services. Major infrastructural improvements also were accomplished with the opening of the International Arrivals Corridor and expansion of terminal security screening lanes.

The scale of progress achieved in these trying times should serve as a source of pride for all of Guam and especially GIAA. Your continued resiliency and ability to adapt will be critical to our recovery, and the prosperity of our future will be dependent on the contributions made by each and everyone serving our airport.

Congratulations to GIAA on seizing every opportunity to succeed. On behalf of our entire administration, thank you for constantly taking our island to new heights.

Un Dångkolo Na Si Yu’os Ma’åse’!

A Message from Our Governor and Lt. Governor Background

Håfa Adai and
Greetings from Guam

We are proud to present our 2021 Annual Report, encapsulating the challenges and success of what should have been a spectacular year of our 45th Anniversary as part of the Government of Guam family. Having come through the second year of a global health crisis that nearly decimated the world’s aviation and travel industry, we were still able to find silver linings in the dark clouds of the pandemic. We managed to meet some major development milestones and realize some significant financial gains.

We applaud the commitment of our partners, key airport and aviation stakeholders to work with us to keep our island airport operational. As an essential link to the world, our doors remained open despite low traveler numbers allowing for uninterrupted air service to and from Guam. This aided our ailing economy keep afloat, as our airline partners reconfigured aircraft service into Guam. We were able to see remarkable growth in airfreight and expanded cargo services. We also used the time to enhance our security services with the Transportation Security Administration, partnering to add two (2) additional security- screening lanes. Finally, we were able to complete Phase I of the long-awaited International Arrivals Corridor. We continued to manage our facility and provide airport services as professionally and efficiently as possible. On the fiscal side of the house, with prudent handling of Airport finances, we closed off a very challenging year with the successful closing of the GIAA Taxable Refunding Bond Sale. We were able to secure new monies for much-needed capital improvement projects.

We were very proud of our Airport team and the aggressive efforts to meet all the new health and safety requirements of airports in the pandemic environment. GIAA produced a comprehensive and robust "WE CARE" health program and received a Certificate of Accreditation bestowed jointly by the airport standard-setting organizations, Airports Council International (ACI) and the International Civil Aviation Organization (ICAO)! Also, the Air Transport Research Society, (ATRS) out of the world-renown Embry Riddle Aeronautical University, recognized our fiscal management of airport resources by awarding us with the "Most Efficient Award" in the Asia-Pacific region for the fourth consecutive year, in their 2020 Benchmarking Awards.

We thank all our hardworking aviation partners and airport staff for their continued dedication and hard work and look forward to a better year on the horizon.

**Brian J. Bamba**
Chairman of the Board

**Gurvinder "Bic" Sobti**
Board Vice Chairman

**John "JQ" M. Quinata**
Executive Manager

**Artemio "Ricky" Hernandez, Ph.d.**
Deputy Executive Manager

Our Year in Review

FY 2021 was one of the most challenging years in the A.B. Won Pat International Airport Authority, Guam’s (GIAA) history, as the COVID-19 Pandemic continued to cause unprecedented turbulence in in the world economy.

Much uncertainty on Guam’s air traffic recovery prevailed throughout the year, as Governments took action to slow the spread of infection by introducing travel restrictions, imposing lockdowns, requiring quarantine measures and stay-at-home orders, dealing a dramatic blow to our tourism-based economy.

While these measures helped control the spread of infection, it had an overwhelming effect on total passengers processing through the Guam International Airport.

WE CARE - Health and Safety at the Airport
As an essential facility provider, the Guam Airport was federally obligated to remain open despite government restriction. To operate safely and securely throughout the pandemic, the Authority developed and implemented measures in its WE CARE program which addressed health measures set forth by the USCDC and in conformance to FAA’s Runway to Recovery framework to mitigate the spread of COVID 19, an incorporated measure undertaken by our airlines and tenants in its conduct of business under health protocols mandated by the Guam Public Health and Social Services.

Guam International Airport’s collective efforts under the WE CARE program earned the Authority a “Safe Travel” designation established by the World Travel and Tourism Council and enabled the Authority to achieve accreditation under the Airports Council International Health Accreditation Program.

FY2021 Key Take-Aways: YOY Comparisons Chart

TOTAL PASSENGERS	TOTAL REVENUE	TOTAL GRANTS (US & GOVGUAM)	TOTAL EXPENSES	COST PER ENPLANED PASSENGER	TOTAL ASSETS & DEFERRED OUTFLOW OF RESOURCES	TOTAL NET POSITION	DEBT SERVICE COVERAGE
222,603	$68,807,141	$20,442,607	$67,223,154	$49	$615,117,164	$281,896,087	1.51
-86.7%	-9.2%	35.4%	-16.2%	131.9%	0.25%	0.6%	-12.2%

Capital Improvement Projects

The Guam International Airport prioritized federally-funded projects or projects essential to maintaining airport operations and compliance with FAR Part 139. These projects consisted of:

Third Floor International Arrivals Corridor with Seismic Upgrades

This project consists of construction of a new international arrivals corridor that will separate arriving non-TSA-screened passengers from departing TSA-screened passengers, as well as seismic upgrades to the passenger terminal building infrastructure to support the new Third Floor International Arrivals Corridor. This project is substantially completed and partially operational as the general contractors complete the “punch list” phase to finish off any outstanding work items. Total project costs are expected to be approximately $136 million. Sources of funding for this project included proceeds from the Series 2013 Bonds, capital improvement funds and FAA entitlement grants.

Aircraft Rescue and Fire Fighting Facility

This project consists of construction of a new aircraft rescue and fire fighting facility that will improve response time to potential emergencies. This project is currently under construction and expected to be completed in FY 2022. Total project costs are expected to be approximately $23.4 million. The Authority anticipates this project will be 90% funded with FAA discretionary funds and 10% funded with Authority funds.

Runway 6L/24R Rehabilitation

This project consists of two phases. The first phase includes the rehabilitation and reconstruction of over 1,550 linear feet of runway (Phase 1a) and the rehabilitation and reconstruction of an additional 1,450 linear feet of runway (Phase 1b). Phase 1a and Phase 1b are currently in progress and expected to be completed by the end of April 2022. The second phase (Phase 2), which will include the rehabilitation of over 4,000 linear feet of runway previously constructed using Portland Cement Concrete pavement, is expected to be completed by September 2022. Total project costs are expected to be approximately $25 million. The Authority expects this project will be 90% funded with FAA funds and 10% funded with Authority funds.

Projects in Planning Process

Master Plan Update
The COVID-19 pandemic delayed the Authority’s plans to update its airport master plan that was last completed in 2012. Once this update is complete, the Authority will be able to identify and prioritize projects as part of its capital improvement program. The Authority has engaged with a consultant to conduct the master plan update. The Notice to Proceed was issued in November 2021 and scoping meetings are ongoing. This project is expected to be completed by February 2023 and is 90% funded with FAA discretionary funds and 10% funded with Authority funds.

Part 150 Noise Study Update
This project will provide professional consulting services to conduct all facets of a FAR Part 150 Noise Compatibility Study for the Authority. The purpose of the proposed Part 150 Noise Compatibility Study is to develop updated noise exposure maps for land use planning and noise mitigation in and around Guam, and to update the Authority’s Noise Compatibility Program. The Authority anticipates this project will be 90% funded with FAA discretionary funds and 10% funded with Authority funds.

Cargo Apron/Fuel System Extension
This project includes constructing a cargo apron and connecting taxiway and extending the Airport’s fuel system to service the Integrated Air Cargo Facility located approximately one-half mile west of the air terminal. The Authority anticipates this project will be 90% funded with FAA discretionary funds and 10% funded with Authority funds.

Supporting Operations and Enhancing Security

Closed borders, lock-downs, entry restrictions, quarantine rules, both on Guam and at our source markets, and new variants of the virus - from Alpha to Delta to Omicron - resulted in continued suspensions of many of our flights, with only essential services to Honolulu, Manila, Narita, and Seoul, and occasional charters to Taiwan, Incheon and neighboring islands were the only air services to and from Guam throughout the most part of Fiscal Year 2021.

Protecting Our Business

Pivoting to maintaining business integrity during this challenging time, the Airport worked with airlines and tenants to meet public health ordinances and requirements to support essential air services. We packaged these initiatives under a comprehensive WE CARE program that incorporates facility enhancements, social distancing, sanitation and disinfection, utilization of touchless technology and corporate governance.

In line with the Centers for Disease Control and Prevention guidelines, we enhanced sanitation requiring face masks for terminal entry, installing hand sanitizing stations in all areas, increasing the frequency and intensity of efforts with custodial contracts, commissioning electrostatic fogging of gates and restroom areas after each flight, installing UV filtering in handling systems, sanitizing baggage carts and installing touchless technology in our restrooms.

We assessed the terminal facility and implemented measures to maintain social distancing:

Installing transparent barriers at all passenger processing points
Marking passenger positioning in all terminal areas
Developing new queueing systems for passenger processing areas

In response to the impact on our airlines, concessionaires and other service providers, the Guam International Airport worked with our valued partners in:

Adjusting their schedules to ensure a certain level of services were available during active flight times while minimizing the number of passengers to potential exposure
Supporting airlines and tenants with economic relief options in line with FAA guidelines and regulations
Consolidating passenger operations to the West Wing of the Guam International Airport, suspending operations of 12 of 19 passenger service gates, allowing us to control utility and maintenance costs
Providing periodic updates of current situations and future measures with our airport stakeholders and Airport Operating Committee consisting of representatives from all tenants and vendors

As the fiscal year closed, air services were slowly resuming and increasing in frequency.

Looking forward, the Airport acknowledges there are risks to our recovery - our airline partners’ financial health and our travel market’s lifting of restrictions, vaccination, and control of outbreaks of COVID-19. However, the Airport, together with the Guam Visitors Bureau are positioning ourselves for the rebound of travel working with our travel markets in promoting our safe environment, providing incentives to tour operators and financial relief to airlines and other stakeholders to stimulate demand.

The challenge before us is our opportunity to do things better in this new normal travel environment. The Guam International Airport is up to the challenge!

The Airport assessed critical functions within our organization and designated mission-essential operations personnel to meet our FAR Part 139 requirements. We also worked to minimize contact and transmission among our employees by:

Implementing remote work measures to minimize the full outbreak of the workforce
Providing full personal protective equipment and gear to support employees on essential duty
Installing transparent barriers to enforce social distancing within the office environment
Limiting face-to-face contact and utilize technology for safe communications
Implementing flexible scheduling to minimize staff mingling and exposure and provide fallback, if needed