AvAirPros was retained in 1991 by the Airlines Committee of Hawaii (representing over 20 airlines serving Hawaii) to assist the airlines with Airport Use and Lease Agreement negotiations with the State of Hawaii, Department of Transportation, Airports Division. The statewide airport system is comprised of 15 airports located on six different islands. Due to the complex issues surrounding the States? planned Airports System Capital Development Plan, changing economics of the airlines, increasing visitor arrivals, and significant airport concessions revenues, the negotiation process necessitated coverage of all aspects of the airports technical, financial, and legal structure to achieve resolution in January, 1993. The AvAirPros project team played an instrumental role throughout the negotiation process, providing typical ALO functions for the State and the airlines, ultimately concluding with the execution of a three-year lease extension. Specifically in Hawaii, AvAirPros:

· Developed, in conjunction with the State, a lease extension for the statewide airports system. The lease extension reduced airline operating costs, instituted a capital project approval and management process, and other reporting and disclosure requirements that previously were not required.

· Resolved, with the State, a mutually acceptable capital improvement program for the lease period.

· Developed a forecast of aviation demand.

· Set rates and charges for the State?s airports system, with the State?s approval, as a result of limited staff resources and the necessity to have results produced within three days in order to preserve the proposed agreement.

· Reconciled all airlines leaseholds for the State in order to validate projected airline rental revenues and to coordinate revisions to the State?s property management system.

· Developed detailed financial analyses to assist the airlines and the State in resolving the airports system landing fee rate and inter-island landing fee rate differential.

AvAirPros also reconciled airline receivables for the State, necessitated by limited State staff resources and confusion in the conversion of the airports system to a ?self-invoicing? process (as required by the State?s bond counsel).

AvAirPros continues to act as the interface between the State and the airlines on all financial and property issues. AvAirPros also coordinates closely with the State in the setting of airline rates and charges, helping to maintain long-term low and stable rates for carriers operating into the State of Hawaii.

For additional information, please contact Phillip A. Strohm at p.strohm@avairpros.com
Based in Naples office

Updated: Wed Aug 10 11:37:47 2005

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