2008 Stakeholder Report stakeholder report

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PERFORMANCE AND GROWTH CUSTOMER FOCUS MAINTENANCE UPGRADES AND RENOVATIONS ENVIRONMENTAL EFFORTS INTERNATIONAL OUTLOOK PROGRAMS AND INITIATIVES PLANNING FOR THE FUTURE FINANCIAL DATA OPPORTUNITIES AND CHALLENGES

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Benjamin R. DeCosta

On behalf of the Hartsfield-Jackson Atlanta International Airport team, I am honored to present this look inside the world’s busiest airport. Within these pages are profiles of our new programs and status reports on our ongoing initiatives.

The aviation industry was not immune to 2008’s economic challenges; however, Hartsfield-Jackson continues to thrive. In fact, the Airport accommodated a record 90-plus million passengers for the first time.

I am proud to report that 2008 marked another year that Hartsfield-Jackson has served as metro Atlanta’s principal vehicle for economic growth, generating an estimated $23.5 billion impact to the metro Atlanta economy.

While it is encouraging to be recognized for various accomplishments, our dedicated team remains focused on the future. With your support, Hartsfield-Jackson will continue to positively impact the economy, serve the traveling community, and move closer to becoming the world’s best airport by exceeding customer expectations.

Sincerely,

Benjamin R. DeCosta Aviation General Manager

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consolidated rental car facility (conrac)

Major strides were made in 2008 toward the November 2009 opening of CONRAC, which will house all Airport rental car agencies and services. More than 91 percent of work on the $650 million facility is under contract, and more than 75 percent of construction is complete.

3 HigHligHts of tHe year include:

• Completion of the 1.6-mile elevated people mover guideway connecting the passenger terminal to the CONRAC customer service center • Arrival of 12 people mover cars

from Japan

• Substantial progress on the three people mover stations

• Near-completion of the maintenance and storage facility

• Erection of the north four-story parking deck

• Foundation work for the south four-story parking deck

Fiscal year 2008 also saw substantial progress on the

CONRAC access roadway and bridge, which provide access

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green circle for those flying with young children in strollers or who

have special needs Black diamond

for expert, elite or frequent business

travelers

Blue square for more casual travelers with carry-on baggage and

a basic understanding of security requirements

performance and Growth

new security cHeckpoints

In March 2008, the Airport embarked on a major customer service enhancement, adding new security checkpoints to reduce passenger screening wait time.

As an early indicator of its success, during the peak Thanksgiving holiday travel week between November 25 and December 1, 2008, nearly 1.5 million passengers passed through the Airport. Security wait times never exceeded 16 minutes.

The project was completed in October 2008 and increases the total number of security lanes from 22 to 32.

Additionally, the opening of the new lanes coincided with the Transportation Security Administration’s

launch of its Diamond Self-Select program in Atlanta, giving customers a choice of where to enter security checkpoints based on their travel expertise. The result: faster throughput for all passengers and better assistance for those with special needs.

5 reconfiguration of

concourse c nortH The Airport is working closely with Delta Air Lines to reconfigure Concourse C North. This includes expanding the north end of the concourse passenger hold area, installing 26 passenger boarding bridges, and refreshing ASA’s exclusive lease area on the ramp level. Major electrical upgrades to the north end of the concourse, including installation of three new transformers, are also taking place. The completion of this project is scheduled for second quarter 2009.

transportation mall

The Airport completed $10.9 million in renovations in the Transportation Mall. All of the Automated People Mover (APM) stations and the connecting corridors received new flooring, wall and ceiling finishes, lighting, station identification graphics and digital passenger information displays. Fresh paint and new carpeting throughout the pedestrian mall areas connecting the concourses were also a part of the project.

customs and Border protection

A key milestone for 2008 was a $3.7 million reconfiguration of the U.S. Customs and Border Protection’s secondary screening area on Concourse E. Along with cosmetic upgrades, the project also streamlines the secondary screening process for arriving international passengers and improves operational capabilities for the Customs staff.

terminal restrooms

Plans to upgrade restrooms in the terminal were well underway during 2008. The $2.9 million project includes new fixtures and finishes, countertops, lighting and ventilation systems in the north, south and west crossover terminal restrooms. Low-flow fixtures are being installed to reduce water use (see Environmental Efforts).

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cuStomer focuS

Airport visitors can indulge in shopping at:

• Atlanta Magazine’s HOME store

• Georgia Aquarium store – Beyond the Reef • Mori’s Luggage and Gifts • Panda Veranda gift shop, which will feature a live panda cam feed directly from Zoo Atlanta. • Savannah Candy Kitchen • Newsstands with a local flair, such as Atlanta Daily World and Southern Living News

Internationally recognized brands are coming to the Airport such as: • Brighton Collectibles • Brooks Brothers • Bvlgari • Calvin Klein • Ermenegildo Zegna • Harley-Davidson • Lather • L’Occitane • Reebok • Sean John • Tous • Vera Bradley retail renaissance

After a competitive process, the Concessions team awarded contracts to 70 stores and shops located in the main terminal and on concourses T, A, B, C and D. Construction began in September 2008.

All stores are expected to open by June 2009.

The purpose of the retail renaissance is to increase

non-airline revenue and deliver looks, brands and designs

7 new silver reserve

parking

The Airport’s new Silver Reserve Parking lot opened in August 2008. Silver Reserve Parking is designed for customers with busy schedules who prefer close, reserved parking. It is an on-airport, members-only lot located within minutes of the terminal. Members enjoy the convenience of complimentary roundtrip shuttle service. The lot provides more than 1,300 additional on-site parking spaces, bringing the Airport’s total parking capacity to more than 30,000. New Silver Reserve members can register online through the Airport’s Web site.

Internationally recognized brands are coming to the Airport such as: • Brighton Collectibles • Brooks Brothers • Bvlgari • Calvin Klein • Ermenegildo Zegna • Harley-Davidson • Lather • L’Occitane • Reebok • Sean John • Tous • Vera Bradley

concessions introduced new concepts to Hartsfield-Jackson in 2008:

1. Grove/Rocky Mountain Chocolates on Concourse T (January)

2. Dunkin’ Donuts on Concourse A (March)

3. Bistro del Sol restaurant in Atrium (March)

4. Sweet Georgia Brown’s Juke Joint Bar on Concourse D (April) 5. Bar One on Concourse D (April) 6. Aldeasa duty-free shop on

Concourse E (June)

ark

ATL

ATL

P

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cuStomer focuS

it’s a customer celeBration The Customer Service division’s mission is “Making Ordinary Airport Service Extraordinary.” To emphasize that mission, the unit, along with a steering committee, spearheaded the wildly successful CHEERS! customer appreciation event. In October 2008, travelers were treated to live music, giveaways, a rousing South Atlanta High School drum line performance, magicians, face painters and more. Also featured was a costumed Roman senator hosting a trivia game show

throughout the concourses with special prizes. It was all part of the Airport’s continuing mission to exceed customer expectations.

A passenger (left) receives a complimentary caricature drawing during the CHEERS! celebration.

9 100 90 80 70 60 50 40 30 20 10 0 Overall Getting To/From Airport Check-in Process SecurityCheck

Point

Terminal

Facilities In-TerminalTrain Food & Bev. ServicesRetail GateArea Parking JAN 08 SEPT 07 Hartsfield-Jackson ranked within the “Best Airport” category with an overall passenger score of 70, according to the January 2008 Customer Satisfaction Survey conducted by Airport Interviewing and Research. This represents a two-point increase over 2007.

Hartsfield-Jackson ranked “Best” airport

Honors

• Hartsfield-Jackson is named the Most Efficient Airport in the World by the Air Transport Research Society. • In February 2008, Forbes.com

names Hartsfield-Jackson the world’s top airport with WiFi connectivity.

• During the Smarter Travel 2008 Readers Choice Awards, frequent fliers rank Hartsfield-Jackson their third-favorite airport behind Las Vegas McCarran International (first place) and Denver International (second place).

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cuStomer focuS

training and customer service The Atlanta Police Department – Airport Section developed a comprehensive training guide. It is designed for a variety of Airport-specific situations and to aid in the

homeless individuals who seek shelter at Hartsfield-Jackson. These individuals are put in contact with appropriate social services and programs, such as New Beginnings (an alcohol/drug treatment program), St. Joseph’s Hospital for medical treatment, or

Atlanta Workforce Development (a job placement program). Other services provided include temporary residential placement and reunification with family members through the help of community partners such as Gateway Center.

training and acclimation of law enforcement professionals assigned to the Airport. Examples of the mandated training include customer service-oriented courses, National Incident Command Systems Management (NIMS) Training, Terrorism Detection and Deterrence Courses, Crisis Intervention Training, and Active Shooter Training. Through Crisis Intervention Training, the Atlanta Police Department – Airport Section formed a HOPE team to provide Homeless Outreach Prevention Emergency services. This team identifies and provides services for Airport police officer assists

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In early summer 2008, Hartsfield-Jackson introduced one of the

world’s first set of wheelchairs equipped with rear luggage carriers.

wHeelcHair rear luggage carriers Hartsfield-Jackson management responded to a customer concern of wheelchairs not having luggage carriers. Customers were required to place carry-on bags on their laps. To enhance the customer experience, we teamed with Invacare, a manufacturer of airport wheelchairs, to modify about 135 wheelchairs to accommodate carriers. Key airport stakeholders, including Aviation Mobility, AirTran, Delta Global Services and Prime Flight, worked to install the rear luggage carriers and assisted with testing.

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maIntenance, upGradeS and renovatIonS

airport roadway repairs and improvements

Hartsfield-Jackson focused some of its attention in 2008 on improvements and repairs to Airport roadways. These included adding guard rails along terminal roadways as well as speed notification signs, both enhancing public safety. Truck entry roads to the North Cargo areas are being improved to provide better access to cargo carriers. The extensive refurbishment of the roadways around the north side of the Airport provide for a superior and safer driving experience for the public as well as Airport employees.

13 Baggage claim

improvements

Hartsfield-Jackson improved the distribution of bags into the Hold Baggage Screening area by creating a load distribution line. This project was successfully completed before the summer peak passenger loads. As a result, this process significantly reduced the amount of interruptions experienced by passengers at the International Recheck lobby, thus reducing bags from accumulating in the lobby. Also, the Airport updated six baggage claim units in Terminal North. This project called for the installation of high-tech

baggage information displays, creating more visually enhanced instructions for passengers to more quickly retrieve their luggage. Both projects were completed on schedule and on budget.

delta Baggage Handling

improvement proJect Hartsfield-Jackson is working with Delta Air Lines on its baggage handling improvement project. This $92 million-plus project includes the replacement of all nine baggage carousels, baggage information displays and supporting conveyer

systems in the Terminal South baggage claim. The project also includes a conveyer system utilizing the existing tunnel between the terminal and Concourse B, where an additional 14 outbound baggage sort carousels were installed.

This will increase the efficiency of Delta’s Atlanta baggage handling process significantly. The project’s scheduled completion is June 2009, which includes work at the Delta departing flight baggage makeup area under Terminal South.

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spill containment prevention upgrade The U.S. Environmental Protection Agency’s Spill Prevention, Control and Countermeasure rule requires airports with fuel storage tanks to plan for the “most likely discharge” during fueling and waste removal operations. As the facility owner of several small fuel and oil storage tanks, Hartsfield-Jackson began these upgrades in December 2008 by providing spill control for the refilling of fuel tanks and the removal of contents from underground waste storage tanks. The Airport will construct containment

structures and inlets for 12 locations around Hartsfield-Jackson to meet this requirement. The project is expected to be completed in July 2009 at a cost of $1 million. cptc roof replacement concourses a & B Hartsfield-Jackson completed roof replacements on concourses A and B in early 2008. The project called for removal of approximately 260,900 square feet of 26-year-old built-up roofing on Concourse A, and approximately 188,500

square feet on Concourse B for a total of about 449,400 square feet.

The roof system was replaced with a fully adhered 80 mil single ply membrane roof system. Metal ramps were installed over all expansion joints and existing chilled water piping. In addition, a new lightning protection system was installed on the roof of both concourses to meet all applicable codes, National Fire Protection Association and Underwriter Laboratory Certification requirements. The project came in under budget for a total cost of $4,459,060.

15 fire station no. 24

demolition and reconstruction The project scope involves construction of a 25,500-square-foot fire station adjacent to the North Cargo Complex. The fire station will include approximately 10,270 square feet of Vehicle Safety Area with four apparatus bays, 3,250 square feet of service areas, and 11,980 square feet of support areas. These areas will include administration, sleeping and living quarters. The size and configuration of the station will accommodate 21 firefighters with support staff.

The project, which began in 2008, cost approximately $8.7 million and is expected to be completed in April 2009.

taxiway l improvements A $48 million, 4,000-foot extension of Taxiway L was completed and opened for aircraft traffic. This has allowed the necessary replacement of deteriorated pavement on Taxiway M, which was completed and reopened to aircraft in early November. Along with these improvements, the east end of the Runway 27R safety area is being improved to meet revised FAA criteria. All of these airfield improvements enhance aircraft mobility, help reduce airfield congestion and improve airfield safety.

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“ … when we got there and looked around we were amazed at what we saw!

What happened was Mother Nature had taken matters into her own hands. The area was lush with vegetation and alive with the sounds of songbirds.”

— Kathryn Masters, Hartsfield-Jackson engineer

sams lake

Hartsfield-Jackson opened a 56.6-acre wetlands area with the help of Southern Conservation Trust at a cost of $5 million. It features a reconstructed stream, bat houses, observation decks and a walking trail. Several dams create three ponds, where bass and nesting birds flourish. The wetlands also include turkeys, hawks, blue herons, crows, toads, egrets and deer.

envIronmental effortS

17 Located near Fayetteville, Ga., the

Sams Lake wetlands restoration area opened to the public in September 2008 as a wildlife sanctuary. Thriving beyond expectations, this Airport project meets federal requirements to replace wetlands displaced by construction of the fifth runway (Runway 10-28). The site is certified by the National Wildlife Federation and the National Audubon Society.

water conservation

Other stewardship programs continue to expand our “green” initiatives. One major success in 2008 was the Airport’s water reduction efforts, including the Restroom Fixture Initiative.

Hartsfield-Jackson is retrofitting 1,250 toilets and flush valves throughout the Airport terminal and concourses with new, water-efficient units. Prior to this, the Airport terminal and concourses used approximately 917,000 gallons of water a day. Once this initiative is complete, we are expecting overall annual water usage to drop to 798,000 a day, reflecting a 13 percent savings.

For November 2008, water usage was reduced by 22 percent for the month compared to the same period in 2007. The Restroom Fixture Initiative is about 70 percent complete and is expected to be fully installed by March.

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Hartsfield-Jackson takes tHe leed Working with Atlanta Airlines Terminal Corp., the Airport is currently pursuing Leadership in Energy and Environmental Design (LEED) certification for the passenger terminal and concourses. LEED certification is awarded by meeting standards developed by the U.S. Green Building Council for environmental

sustainability in the design, construction and operation of public buildings. Hartsfield-Jackson’s LEED initiatives include recycling programs, water and energy conservation, exterior maintenance programs and system upgrades to reduce the Airport’s environmental impact.

A major component of the Airport’s LEED certification bid is an innovative program launched at the end of 2008. This comprehensive effort

will reduce the Airport’s waste stream to landfills by as much as 70 percent when fully implemented. The goal is for the Airport to become the single largest recycler in the Southeast region by 2010. Another key LEED effort is a partnership with Georgia-Pacific that has created coreless tissue paper rolls with 40 percent post-consumer content.

envIronmental effortS

The goal is for the Airport to become the single largest recycler

in the Southeast region by 2010.

otHer initiatives:

• Partnering with the Hartsfield Area Transportation

Management Association (HATMA) to expand alternative transportation • Upgrading HVAC units • Setting temperature limits • Turning off escalators and

moving sidewalks after hours • Managing deicing fluid runoff • Testing high-speed hand

dryers to reduce or eliminate paper towels

19 Rescue and Fire Fighting

Station (ARFF) No. 33. The facility is located on 4 acres near the fifth runway and contains 8,000 square feet of space used to house rescue and firefighting equipment. It is the first Atlanta fire station to incorporate environmentally friendly development principles using the LEED Rating System. It is also the first Hartsfield-Jackson facility to apply these principles.

fuel main leak detection Hartsfield-Jackson embarked on an environmental project to allow leak detection testing on the entire City Fuel Farm hydrant system. These pipes serve gates at concourses T, C, D and the South Cargo facility. The project is scheduled to be completed March 2009. The scope of work includes leak detection, which will keep the Airport at the forefront of environmental compliance.

taxiway improvements More than 3,200 outdated taxiway centerline and edge bulb lights were replaced with eco-friendly LED lighting in 2008. The new lights are 72.5 percent more energy efficient. fire station no. 33 The U.S. Green Building Council recently bestowed a LEED certification on Hartsfield-Jackson’s Aircraft

The LEED Rating System awards credits for satisfying specified “green” building criteria, such as water efficiency and indoor environmental quality. Buildings meeting the criteria may be labeled Certified, Silver, Gold or Platinum depending on how many design principles are incorporated. Fire station No. 33 received the Certified designation.

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maynard H. Jackson, Jr. international terminal Atlanta’s new global gateway, the Maynard H. Jackson, Jr. International Terminal (MHJIT), moved into the construction phase during 2008. Design for the $1.6 billion facility neared the 60 percent completion milestone during 2008. Preliminary construction started with drilling for the deep foundations that will support the terminal floor.

Several enabling projects began under Concourse E and the airfield to prepare for the start of the Automated People Mover (APM) tunnel construction. The tunnel will ultimately house the extension of the APM that will connect the new terminal to existing Airport concourses and the passenger terminal. Other work includes relocating existing baggage handling equipment and demolition of an APM train car wash facility.

Major construction activity for the international terminal is expected to commence through 2009, including the APM tunnel, terminal elevated concrete structure and terminal roadways. (Because of the current economy, particularly the frozen credit market, construction of the MHJIT may be suspended. For more information, see Challenges/Opportunities.)

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passengers

The current number of passengers in the global aviation industry – 4.8 billion – is expected to double by 2025. In 2008, Hartsfield-Jackson’s international passenger traffic jumped to 9.2 million, an increase of nearly 300,000 passengers or 3.2 percent over 2007. new international markets

• Bonaire, Netherlands Antilles • Kuwait City, Kuwait

• London, Heathrow, England • Mumbai, India international activity • Hartsfield-Jackson provided nonstop service to more than 90 international markets in 55 countries in 2008. • Hartsfield-Jackson is currently second only to JFK with 107 nonstop markets.

• Santiago de los Caballeros, Dominican Republic • Shanghai, China • Stockholm, Sweden • Tegucigalpa, Honduras • Queretaro, Mexico 100 90 80 70 60 50 40 30 20 10 0 2004 2008 Hartsfield-Jackson’s numBer of international markets The number of international destinations served

from the Airport has doubled since 2004.

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proGramS and InItIatIveS

airside clean sweep

Several years ago, we launched “Operation Clean Sweep” to improve the cleanliness, condition and appearance of the Airport. The scope of the program was expanded in 2008 to include “Airside Clean Sweep.” Special attention was given to the ramp areas to ensure all foreign object debris (FOD), broken equipment and unused equipment are removed. Efforts include conducting monthly Airport-wide FOD meetings, participating in regular FOD walk inspections, and conducting daily inspections and repairs.

23 redesigned weB site

We launched in September 2008 the next generation Web site for Atlanta-airport.com. The redesigned site features the same Airport and flight tracking information but with a fresh look and feel that is more focused on customer needs. It facilitates simple navigation for parking, flight and security line information in real-time. It also more prominently features current events in the online magazine Hartsfield-Jackson News. The site boasts modern flash technology, allows faster downloads and is compatible with all frequently used Web browsers. Overall, passengers and site visitors are able to access information with greater ease.

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avi system

The Ground Transportation division is currently testing a new Automated Vehicle Identification (AVI) system to enhance the operational efficiency of commercial ground transportation vehicles that operate to, from and through the Airport.

The system is based on technology that allows radio communication between readers at various locations throughout the Airport and tags placed in vehicles. An inbound tagged vehicle or an operator bearing an approved access art program

Agnes Nyanhongo’s “Conversation” sculpture is one of many that currently line the Transportation Mall at Hartsfield-Jackson. Nyanhongo is Zimbabwe’s most accomplished female sculptor. The collection is part of the popular “Zimbabwe” exhibit.

ID is allowed through the system, similar to “EZ Pass” technology. Trips and dwell times are recorded and charged electronically to operators as a usage fee.

The AVI system will improve use of curbside space for commercial vehicles, enable automated operations with less manual intervention, and improve the efficiency and flow of ground transportation vehicles. It will also reduce pollutants emitted from vehicles because of the reduction of dwell time and will provide more accurate tracking of commercial vehicle movements.

This high-tech system is expected to generate $2.5 million annually and become fully implemented by spring 2009.

25 noise insulation

program

The Airport is in the process of implementing a Noise Insulation Program (NIP) to provide insulation to noise-sensitive structures bordering the Airport. Eligible structures are determined by the level of Day-Night Average Sound Level (DNL), which is used to measure community exposure to noise from aircraft operations. The NIP cost is $119 million, of which 80 percent is funded by the Federal Aviation Administration. The project is expected to be completed in five years. Based on preliminary assessments, the total number of eligible units requiring noise insulation treatment is

3,392. The units include 61 single-family homes, 191 residential multi-family units in buildings ranging from two to 16 units, 3,117 commercial multi-family units in structures of 35 to 786 units, 16 churches, four schools, two day care centers and one health care/ retirement facility.

city fuel farm

This project will combine fueling functions at the City Fuel Farm, or fuel holding tanks, with the International Fuel Farm to provide maximum storage and flexibility to better serve all airlines. Design is complete, and construction is scheduled to be completed by September 2010.

manager-in-training program

A commitment to identifying and promoting qualified talent from within for key positions was a driving force in launching the revised Manager-In-Training Program (MIT). The goal is to provide Hartsfield-Jackson employees with management potential a means to learn and develop skills needed to qualify

for advancement.

Managers-in-training receive 18-24 months of instruction, including on-the-job coaching, mentoring and management courses. Key components of the program include four business unit rotations and an assigned mentor. Selected participants receive training in budget preparation, presentation skills, effective oral and written communication, strategic planning, project management, problem-solving and more.

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plannInG for the future

land acquisition During 2008, the Airport placed an emphasis on the effective management of land and facilities around Hartsfield-Jackson. Key transactions included the acquisition of a building located just off Airport property that will house the Airport’s emergency command and control center. Also, the lease of land to the southeast of the Airport will be developed into a flight training facility for AirTran Airways. A large leased hangar complex on the north side of

Hartsfield-soutHeast area land use plan The Airport completed a study called the Southeast Area Land Use Plan

(SEALUP), in which a portion of the Airport was evaluated for potential opportunities for development.

SEALUP provides a program to enhance the existing South Cargo facilities by creating additional space for truck staging and employee parking. SEALUP also provides a plan for cargo facilities (approximately 250,000 square feet of warehouse space) and ramp space. Jackson will house Atlantic

Southeast Airlines’ primary aircraft maintenance functions, corporate headquarters and employee training functions. These all will contribute significantly to the Airport community’s robust and growing economic base and allow Hartsfield-Jackson to enhance its ability to monitor, control and respond to emergency situations.

As the population of the metro Atlanta area continues to grow, so does economic development. This plan will help meet the needs of cargo shipments both within the United States and internationally.

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terror tHreat

In the wake of domestic and international terrorist threats, the Department of Aviation, along with the Atlanta Police Department, developed a training scenario that introduced a trained professional acting as a terrorist in the Airport. This full-scale exercise tested the ability of the Airport to respond to multiple emergency situations. While response to the active shooter incident was in progress, a simulated fuel tanker fire exercise was initiated to generate Atlanta Fire Department response. The program, called Operation High Noon, also tested the ability of the Aviation Department to employ the National Incident Management System (NIMS) framework for response and recovery. The training exercise was conducted in June 2008 and was a success for planning, execution and recovery.

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fInancIal data

information The Department of Aviation’s operating fund generated net operating revenues of $214.8 million. The Airport’s gross revenues totaled $386 million.

The primary highlights among the overall revenue stream include Parking ($105.4 million), Inside Concessions ($64.4 million) and Car Rentals ($32.2 million). These areas total $202 million and represent 52.3 percent of the year-end total. It is also important to note that these three

Inside Concessions generated $64.4 million.

2006/2007 2007/2008 July 2008-June 2009 category July-June July-June (projected)

Gross Revenues 352.5m 385m 402.7m

Operating Expenses 148.3m 171.2m 186.9m

Net Operating

Revenues 204.2m 214.8m 215.8m

categories are classified as non-airline revenue, which is looked upon favorably by Wall Street. The Airport expects its gross revenue will climb to slightly more than $402.7 million in fiscal year 2008/2009,

while the operating expenses are estimated at $186.9 million. Aviation forecasts net operating revenues to be $215.8 million for the 12-month period ending June 2009. Below is a table that charts the Airport’s growth.

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Parking grossed $105.4 million in revenue for fiscal year 2007/2008. Approximately 54 percent of this was generated through the new Parking Revenue Control System.

parking revenue control system Hartsfield-Jackson completed installation of the new state-of-the-art Parking Revenue Control System (PRCS). The system, which includes new express pay stations and express exit lanes, provides faster, more efficient services and a variety of payment methods. Since installation of the new system, 54 percent of Airport customers use the new technology. A feature is a space count system, which displays the number of available parking spaces in each lot.

There are 40 multi-language express pay stations located in the terminal and parking decks with voice annotation to assist non-English speaking customers. For added customer convenience, the stations accept cash and credit cards and feature an intercom system for customers to contact a Customer Service representative 24 hours a day, seven days a week. To optimize our operational efficiency behind the scenes, Web-based workstations and a new state-of-the-art closed circuit television system were installed.

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challenGeS and opportunItIeS

The high cost of fuel in 2008 was among the major issues facing the aviation industry, including Hartsfield-Jackson. In July, oil prices peaked at almost $150 a barrel – nearly a 100 percent increase over 2007. The International Air Transport Association (IATA) estimated that every $1 increase in the price of

an oil barrel represented $465 million a year in added fuel costs for U.S. carriers. Airlines responded, in part, by increasing fares, cutting flights and reducing capacity. IATA estimated U.S. carriers suffered $3.9 billion in losses as a result of oil prices in 2008. Prices have dropped below $50 a barrel. Although the Airport was not severely impacted by the fuel crisis, we will continue to monitor the fluctuations.

economy

Hartsfield-Jackson’s continued strong financial performance provides opportunities to pay and restructure existing Airport debt during these turbulent times on Wall Street. In the first half of 2008,

Hartsfield-Jackson acted swiftly to address the impact of the downturn in the financial markets and downgrades of many bond insurers on certain of the Airport’s outstanding debt. • $364 million of Auction Rate

Securities were redeemed with Passenger Facility Charge cash balances.

31 • The Airport is in the process

of substituting cash for certain of its sureties for the General Airport Revenue Bond Debt Service Reserve Fund ($144 million funding requirement). • The Airport and the City

of Atlanta’s Department of Finance have developed a financing plan to refund $490 million outstanding Variable Rate Demand Bonds with fixed rate debt.

• The Airport has established a policy to maintain unrestricted cash and investments for the purpose of having reserves to cover six months of Operating and Maintenance expenses.

These actions will save the Airport millions in interest payments and provide financial flexibility to fund current and future Airport projects. maynard H. Jackson, Jr. international terminal The current economic crisis and frozen credit markets could impact our ability to continue progress on the Maynard H. Jackson, Jr. International Terminal. That is because Hartsfield-Jackson is unable to sell more than $600 million in municipal bonds. Although our debt rating is a solid A+, which is considered investment grade, many

investors are not willing to assume our debt at this time. If we are unable to secure financing, Hartsfield-Jackson may be forced to suspend construction.

Hartsfield-Jackson has asked Congress to make provisions in the economic recovery package that would eliminate the Alternative Minimum Tax (AMT) penalty on airport private activity bonds and refinance existing debt. In addition, Hartsfield-Jackson is lobbying for assistance from the federal government to give municipalities

greater access to credit through the expansion of

the Economic Emergency Stabilization Act (EESA) to include support for issuers of municipal securities and related credit enhancements. These provisions would assist Hartsfield-Jackson in continuing projects that improve safety, security and capacity while stimulating the economy.

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challenGeS and opportunItIeS

cHarges

Hartsfield-Jackson is recommending to federal lawmakers that restrictions on the use of Passenger Facility Charges be temporarily modified. Currently, these charges only fund airport capacity, safety and security capital needs. The goal is to allow airports to use PFCs to fund general airport revenue bond debt service payments. Providing additional, temporary flexibility for the use of PFCs would provide a meaningful tool for airports to fund the recent spikes in debt service and maintain the financial

strength to continue to meet the nation’s aviation infrastructure requirements. gun-free airport On July 1, 2008, Georgia House Bill 89 went into effect allowing Georgia residents with a firearm license to carry concealed weapons aboard public transportation and to state parks and restaurants that serve alcohol.

Atlanta Mayor Shirley Franklin and Airport General Manager Ben DeCosta made it clear that the Airport remains a gun-free zone. A federal district court judge

dismissed the lawsuit filed by a gun advocacy group seeking to allow guns to be carried in the non-secure areas of the Airport. We are pleased with the court’s ruling and will continue to work tirelessly to protect travelers and our employees and for Hartsfield-Jackson to remain a safe, secure, gun-free environment.

The plaintiffs have appealed the district court’s ruling to the 11th Circuit Court of Appeals.

concessions program Despite a global economic recession and a precipitous downturn in the stock market, the concessions program at Hartsfield-Jackson is performing well. Sales were up 4 percent in 2008 despite a 2 percent decline in enplanements. Furthermore, duty-free sales were up an impressive 66 percent in August and are up 30 percent year-to-date as Spanish operator Aldeasa continues to perform at an exceptional level.

33 Lisa Borders ...Council President

Carla Smith ...District 1 Kwanza Hall ...District 2 Ivory Lee Young, Jr. ...District 3 Cleta Winslow ...District 4 Natalyn M. Archibong ...District 5 Anne Fauver ...District 6 Howard Shook ...District 7 Clair Muller ...District 8 Felicia A. Moore ...District 9 Clarence T. Martin ...District 10 Jim Maddox ...District 11 Joyce Sheperd ...District 12 Ceasar Mitchell ...Post 1 Mary Norwood ...Post 2 H. Lamar Willis ...Post 3

Benjamin R. DeCosta Aviation General Manager

Produced by the Office of Public Affairs / Department of Aviation 2008 Atlanta City Council

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