2018 Annual Report - A.B. Won Pat International Airport Authority, Guam

Mission

The A. B. Won Pat International Airport Authority, Guam is charged with the mission to ensure the safety and security of the traveling public, maintain a 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 HULO'" are initiatives 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.

Håfa Adai!

The A. B. Won Pat International Airport Authority, Guam (GIAA) is proud to present a management report of Fiscal year 2018 operations of the island's only civilian airport in the following pages. We hope to familiarize you with the efforts our Airport family extends to make the Guam International Airport the economic engine of our tourist based economy, and gain a sense of pride of this key asset of the people of Guam.

Over $900M has been invested in the A.B. Won Pat International Airport, its runways, support facilities, roadways and surrounding properties. Over $2.3B annually is infused in the economy as a result of Airport operations, indicated in a 2014 Economic Contribution study by Leigh Fisher and Associates. Currently, total employees working within the airport footprint in various aspects of operations and support services number just over 3,900 employees, of which less than 10% are Guam International Airport Authority employees.

Collective efforts from our airline partners, regulatory agencies, ground handlers and airline support service providers resulted in over 54,500 flights transporting over 3.4 million arriving, departing and transit passengers.

Total revenue from Airport operations amounted to $87M, covering all our expenses, and most importantly, our bond payments, which along with federal funds, allow the Airport Authority to continue work on key expansion and development projects that address safety and security and passenger facilitation.

As your management arm of Guam's key asset, the A.B. Won Pat International Airport Authority, Guam is committed to its mission to provide a safe and secure environment for the travelling public, maintain a reliable level of airport services and support the development of air services and facilities which are integral to the economic growth of Guam.

Key Achievements

Safe and Secure. The Guam International Airport was nominated by the FAA Western Pacific Region for the "Top 10 in Safety and Best Overall Airport" at its annual conference for the region. We were certificated by the FAA as "safe and secure", with 100% compliance in 123 fields of safety and security in its annual inspection conducted in 2018.
"Most Efficient Airport under 10 Million Passengers". This award was bestowed to GIAA by the prestigious Air Transport Research Society (ATRS), as a result of their annual Global Airport Performance Benchmarking Report.
Transparency and Responsiveness. GIAA has made significant improvements in providing information to customers on the organization and airline operations. In addition to live flight times and status on the website and having full access of corporate documentation, GIAA also has a mobile app for convenience to passengers, as well as a portal for customer inquiries and complaints. In addition to the website and mobile app, GIAA has active presence on social platforms Facebook and Instagram and has 92% responsive rate to messages received in these portals.
High Financial Performance. Verified by annual audits, and reviewed by world renown rating agencies, GIAA's financial performance has continued to receive high marks from the Office of the Public Auditor for receiving continuous years of clean financial audits and achieving the highly regarded "low risk auditee" status. In addition, GIAA has been consistent in achieving increases in net positions annually over the last 10 years.

Capital Improvement Projects

In Fiscal Year 2018, GIAA, guided by "Vision Hulo'" gained ground on key capital improvement projects to improve passenger facilitation and meet safety and security mandates. Most significant of these projects in various stages of completion are described below:

International Arrivals Corridor

We're building up, literally! Phase II of the International Arrivals Corridor project is well underway. A whole new level is being constructed on top of the existing concourse area. Upon completion, the new floor space will effectively separate all arriving passengers from departing passengers, thereby meeting the TSA mandate to separate passengers in what is now a shared concourse.

Aircraft Rescue and Firefighting Facility

A new Aircraft Rescue and Fire Fighting (ARFF) facility is being constructed to replace the current ARFF barn, constructed in the 1970s and transferred to the Airport Authority as part of the Naval Air Station Base Realignment and Closure Act in 1996.

TSA Security Checkpoint Expansion

Outbound passenger inspection lanes will increase from 5 to 7 lanes, facilitating the inspection process for departure.

TSA Security Checkpoint Expansion

Outbound passenger inspection lanes will increase from 5 to 7 lanes, facilitating the inspection process for departure.

Cargo Apron - Extend Fuel System Design

This project is to design new cargo apron and extension of the Airport's fuel distribution system.

Runway 6L Rehabilitation & Airport Aprons & Taxiway Rehabilitation

Rehabilitation of the Guam Airport's primary Runway 6L, the Taxiway and Parking/Apron areas, are two separate projects critical to maintaining our capacity and ability to receive flights and is a key facility asset that generates revenue by flight operations.

Air Service Highlights

FY 2018 was an eventful year for Airport Operations. US international relations in our region touched our shores with the heightened North Korean Missile Threat negatively influencing travel to Guam as a safe destination. Delta Air Lines announced its corporate decision for a complete withdrawal of service on Guam. Low cost carrier HK Express followed with its suspension of direct services to Hong Kong and Cape Air’s code share operations with United Airlines was terminated for service to Saipan, CNMI. In spite of the above, over 3.41 million arriving, departing and transit passengers processed through the island’s only commercial airport, on over 54, 500 flights that operated, with the Airport achieving its second highest enplanements at 1,780,572 for FY 2018.

Passenger service was provided by our airline partners that included United Airlines, Delta Air Lines*, China Airlines, Japan Airlines, Korean Air, Philippine Airlines, Jin Air, Jeju Air, Air Busan, T’way Air, Cebu Pacific, HK Express*, Cape Air * and Air Seoul. Star Marianas and Arctic Circle operate commuter services to the CNMI utilizing aircraft weighing 12,500 lbs. or less on scheduled and charter basis. All cargo operators UPS, Asia Pacific Airlines and FedEx brought in over 20,000 metric tons of cargo and mail.
*Delta Airlines, HK Express and Cape Air suspended services in FY 2018

Major Markets

Our visitor markets are captured in the Major Market Mix as recorded by the Guam Visitors Bureau in the below chart:

The Gateway
to Asia-Pacific

Air Busan

Air Seoul

Artic Circle

Cape Air*

Cebu Air

China Airlines

Delta Air Lines*

Hong Kong Express*

Japan Airlines

Jeju Air

Jin Air

Korean Air

Philippine Airlines

Star Marianas

T'Way Air

United Airlines

Asia Pacific Airlines

Federal Express

UPS

Delta Airlines, HK Express and Cape Air suspended services in FY2018.

Safety and Operations

As the Guam International Airport's core mission is to provide safe and secure operations, airport staff worked hard to not meet, but exceed standards imposed by our federal regulatory partners. In Fiscal Year 2018, GIAA received the following awards:

FAA Certifies Guam Airport "Top 10 in Safety & Best Overall Airport"

As a result of annual inspections in 123 fields of safety and security, FAA has certified the Guam Airport as Safe and Secure, with "Zero" discrepancies over the past years, a 100% inspection score never attained before in the whole Western Pacific Region. This was achieved while processing over 32.3 Million Arriving, Departing and Transit Passengers, and 500,000 flights operated by 24 airlines over the last decade.

Awarded Most Efficient Airport Under 10 Million Passengers by ATRS

The A.B. Won Pat International Airport's reputation in the region for excellence was once again enhanced, being voted the "most efficient airport under 10 million passengers", by the prestigious Air Transport Research Society (ATRS), as a result of its Annual Global Airport Performance Benchmarking Report.

In terms of operation, the Guam Airport invested nearly $27M in technology advancement to facilitate passenger processing:

$26M in a state-of-the-art Integrated Baggage Handling System, increasing x-ray processing capacity from 200 up to 680 bags per hour.
$500,000 for Automated Passenger Control (APC) kiosks in our immigration hall for the quick processing of visitors.
Common Use Terminal Ticket counters to support a more efficient check-in process for passenger and maximizing space usage for our airline partners, valued over $200,000.

Community Outreach

The Guam International Airport Authority continued to be a responsible neighbor to the community, and commenced verification and acoustical testing inline with its residential sound solution program. This program, competitively attained through FAA funding, soundproofed eligible homes falling within the 65db range surrounding the airport.

Future aviation-related careers are promoted through career day presentations and weekly student tours. The Airport hosted over 2,500 students at the facility tours, where they gained a full passenger experience from ticketing, passenger screening, boarding a plane and touring the Airport for exposure to the myriad career opportunities supporting air service to Guam.

The community also joins in on airport-sponsored events such as the annual 5k Run as part of Airport Week celebrations, now in its 18th consecutive year.

Cultural elements are alive in local art and exhibit displays throughout the terminal and Chamorro music is broadcast 24/7 through all public areas of the terminal.

The airport has supported cultural art with an initial $650,000 investment when the terminal was expanded and an additional similar amount as part of our “1% for the Arts” contribution for the International Arrivals Corridor project.