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Funding air cargo facilities: Getting the best value for money
Journal of Airport Management,
11
(1),
14-26
(2017)
Abstract
One of the most difficult challenges facing airports today is the allocation of financial resources across a variety of competing business segments, which are often difficult to prioritise. Since 1990, airports have become increasingly aware of the potential that air cargo offers for both job generation and revenue enhancement, and they have therefore increased their focus on this component of their operations. Nevertheless, the cargo segment of the industry remains below the executive management radar at most airports. The following narrative is split into two primary sections that hopefully shed some light on both issues and options. The first section discusses some of the primary planning considerations and development trends, and the second explores the various methods of financing that can be and have been applied in public and private initiatives.
Keywords: cargo facilities; planning; ownership; financing; funding sources
The full article is available to subscribers to the journal.
Author's Biography
Daniel B. Muscatello is vice president, cargo and logistics, for Landrum & Brown. After heading cargo operations for the New York Airport System, Dan worked as a private developer of air cargo facilities, and subsequently as VP, Cargo and Logistics, for Landrum & Brown, where he is responsible for leading major cargo analyses and planning studies for airports throughout the world. He has led major air cargo planning efforts for 20 of the top 30 airports in North America, state-wide air cargo planning analyses, and complex planning and assessment projects at large airports throughout China, South America and the Middle East, including planning for the world’s largest air cargo operation at the new airport in Dubai. In total, he has planned more than 20 million square ft of air cargo facilities at airports all over the world, including large air logistics parks for major gateway airports. At the request of the Argentinean government, he also led a special consulting assignment on privatising that nation’s air cargo industry and has served as a subject matter specialist for the US Government on cargo security. He has a BA from New York University and an MBA in Executive Management, with distinction, from Pace University.
Don Arthur is a principal with Unison Consulting, Inc. He has more than 30 years of business experience in accounting and financial analysis, including more than 24 years in airport finance. Don is familiar with all aspects of airport finance, having provided consulting services for a number of projects at small, medium and large hub airports. He has particular expertise in capital programme financial analysis, the development of funding plans for airport capital programmes, and the preparation of financial feasibility studies in support of capital programme bond financings. In addition to his consulting experience, Don has served in several capacities at John Wayne Airport, including Deputy Airport Director for Finance and Administration. Don has an MBA from the University of California at Irvine, a BS in Business Administration from California State University at Long Beach, and he is a Certified Public Accountant (CPA).
