7a SAMP presentation

Item No.  ____ _7a ___ 
Meeting Date: May 8, 2018 
SUSTAINABLE AIRPORT MASTER 
PLAN (SAMP) UPDATE 
May 8, 2018

Briefing Outline 
Overview 
Planning update 
Financial feasibility 
Environmental review 
Next steps 

2

Regional Growth and Market Demand 
10.0%                                                                                   Seattle's crane count has dropped by 22%
UNEMPLOYMENT 
8.0%
from six months ago, but is still greater than
6.0%
4.0%                                                                                     any other US city 
2.0%
0.0%                                                                                   King County unemployment remains low, at
Feb-12     Feb-13     Feb-14     Feb-15     Feb-16     Feb-17     Feb-18
3.7% in February 2018 
King County        Washington        United States
Source: U.S. Bureau of Labor Statistics                Puget Sound is home to a wide range of
employers that contribute to the vibrant
growth in the region 
Microsoft      Nordstrom          Boeing 
Google         JBLM            Alaska 
Amazon       Costco      Providence Health 
Expedia       Starbucks          PACCAR 
University of Washington 

Robust regional economy is the basis for airport growth and sustainability

Sea-Tac Growth is Tied to Regional Growth 

2034 
66 Million Total Passengers 
2027                       4.7 Million Population 
56 Million Total Passengers 
2017                        4.3 Million Population 
46.9 Million Total Passengers 
4.06 Million Population 



4

Sea-Tac Statistics 
TOTAL ENPLANED PASSENGERS                     69.4% of passengers began or ended their flight
(thousand) 
30,000.0                                                                         in Seattle in 2016 
8.7% Annual Growth 
25,000.0                                                                       Enplanements grew 2.7% in 2017 and 34.8%
from 2013-2017; Q1-2018 grew 4.8% (2018
20,000.0
Other              projected to grow 5.0%) 
15,000.0
Delta(1)
Alaska(1)            Both Alaska and Delta are increasing service at
10,000.0
Sea-Tac Airport 
5,000.0
Other carriers, including Southwest, American,
0.0
2013     2014     2015     2016     2017                              and United, continue service along with new
(1)  Includes regional affiliate airlines 
entrants 
ENPLANEMENT GROWTH RATES 
Sea-Tac has 45 international services, with 22
2013     2014     2015     2016     2017
Domestic      4.1%     7.8%     12.6%    7.6%     2.3%               airlines serving 27 international destinations 
International   9.8%      6.8%     14.4%     11.4%     5.9%
Total            4.7%      7.7%     12.8%     8.0%      2.7%
Sea-Tac Airport remains the ninth busiest airport in the United States

Concurrent Strategies to Serve Market Demand 
Current Projects            Near-Term Projects SAMP       Long-Term Vision SAMP 
(46.9M PAX Today)             (56M PAX by 2027)           (Demand Beyond 2027) 
North Satellite                     Meet market demand            PSRC regional aviation
International Arrivals             19 additional gates &              baseline study 
Facility                                second terminal                    Sea-Tac Airport airfield and
Concourse D Hardstand          Cargo facilities                      airspace study 
Holdroom                   30+ projects to improve
Baggage Modernization            safety, provide support           Additional environmental
Airport dining and retail           facilities, improve                  review 
development                  efficiency, and access to
the airport 

Participate in a broader conversation about our region's airspace and aviation resources 
6

Planning Status Update 
Airfield/airspace constraints result in major congestion (aircraft
delays) as activity nears 59 million passengers (2029) 
Phased approach required to advance SAMP 
Identify projects to accommodate near-term demand within existing constraints  
Near-Term projects 
Conduct environmental review of Near-Term projects 
Follow-on planning study to address airfield/airspace constraints 
Near-Term projects 
Near-Term projects can accommodate 2027 market demand 
Approximately 56 million annual passengers 
Phased approach required to meet future demand 
7

Long-Term Vision - phased approach 
Near-Term projects - 56 million annual passengers by 2027 
Long-Term vision  Additional planning to meet demand beyond 2027 
Additional planning & associated
environmental review required for any
projects not included in Near-Term
package 





8

Near-Term Projects 




9

Airport Capital Capacity 
Capital costs are recovered through airline rates 
Capital capacity of the airport is constrained by 
Airport cost to airlines (CPE) 
Airport debt level, and ability to borrow 
Port's credit rating 
Debt per enplaned passenger 
Upper range of CPE is based on judgment of where
"competitive" range will be in future 
Airport capital capacity must consider multiple factors 
10

Current CPE Comparison 
2016 CPE For The 30 Large Hub Airports
$30.00

$25.00

$20.00
Targeted Middle Third
$15.00
28.05
25.45

21.00
$10.00              19.76
18.68
16.52
15.16 14.97 14.83
13.45 13.44
11.05 10.92
$5.00                                                   10.71 10.60 10.45 10.28 10.10 10.01 9.51 9.50 9.08
6.32 5.79
5.02 4.66 4.34 3.94 3.69

1.35
$0.00

CPE is competitive: SEA ranks 13 out of the 30 Large Hub Airports 
11

Financial Feasibility 
Baseline forecast of airport costs to airlines (CPE) is $20 in 2025,
without SAMP projects 
Upper range of Sea-Tac's future CPE based on judgment, likely $25 - 
$30 for 2027 - 2030 
To make SAMP financially feasible (CPE <$30), must: 
Increase non-aeronautical net operating income (NOI) 
Manage growth of operating and maintenance costs 
Prioritize future capital improvements, reduce or eliminate scope 
Cost to region of not expanding Sea-Tac is high: congestion, fewer
direct flights, and lost economic opportunities. 
SAMP is financially feasible, but requires vigilant cost management & increased non-aero revenues 
12

Purpose of Environmental Review 
National Environmental Policy Act (NEPA) 
State Environmental Policy Act (SEPA) 
Objective analysis of potential environmental impacts according to established
procedures 
Identify ways to avoid, minimize, or mitigate 
Public disclosure of environmental impacts 
Transparency and engagement key to process 
Overlay of environmental laws 

Environmental review process studies cumulative impacts through comprehensive process 
13

SAMP Environmental Review 
A single NEPA and SEPA document and process 
Anticipated duration is 12  18 months 
DRAFT NEPA Environmental Assessment (EA) anticipated* 
- Final form of document depends on results 
- NEPA EA allows for maximum Port of Seattle involvement 
- Analysis driven by issues and standards 
DRAFT SEPA Environmental Impact Statement (EIS) anticipated 
- Maximizes agency and public engagement 
- Analysis driven by issues and standards 
*NEPA EIS triggers are new airport, runway, or major runway extension 
FAA is Lead Agency for NEPA and Port of Seattle is Lead Agency for SEPA 
14

Next Steps 
Planning 
Q2              Finalize SAMP documentation with FAA 
Q2-Q4         Complete planning work to support environmental review 
May 30        Public open house 
Environmental 
In progress    Advance coordination with FAA 
Q2-Q3         Agency and public scoping 

Commission will be routinely updated and engaged throughout environmental review 
15

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