Massachusetts Port Authority Board Meeting - February 25, 2021 Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021 ...
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Massachusetts Port Authority
Board Meeting
February 25, 2021
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Public Session
1
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Audit and Finance
2
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
2021 Revenue Refunding Bond Issuance
(Anna Tenaglia)
3
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Massport is pursuing all options to close a $400M budget gap and
achieve financial sustainability
Potential Options Targets
1. Federal Coronavirus Relief
$ 200M
(in addition to 2020 CARES Act funding)
2. Revenue Enhancements $200M
with Federal
Coronavirus Relief
3. Liquidity Strategies Or
$400M
without Federal
4. Expense Reductions Coronavirus Relief
4
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Liquidity Strategies – Five transactions to provide budget relief
and capital funding
1. April 2020 – $258M direct placement with Bank of America
• $ 29M NPV savings and $25M of budget relief in FY 20
2. July 2020 – $66M ConRac debt defeasance
• $66M paydown of tax exempt debt reduced debt expense to match expected reduction in
rental car transactions
3. October 2020 – $200M Commercial Paper Program expanded
• New $200M letter of credit to expand Commercial Paper Program for capital program short
term funding needs
4. February 2021 – $287M refunding bond sale – closed February 17, 2021
5. March 2021 – $450M +/‐ new money bond sale
5
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
$287M refunding bond sale results
Bond Sale:
• $287M, 30‐year bonds issued February 3rd – Series 2021 A,B,C
Results:
• 2.41% Interest Rate (all in)
• $2B of orders taken, $1.7B of orders unfulfilled
Budget Relief Objective Achieved:
• $30M‐40M in annual savings expected in first 2 years
• $58M in Net Present Value savings
• Airline rates benefit from reduced interest expense
• Terminal E amortization reserve being explored to assist with rates
6
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Investor outreach and orders
• 71 different investors viewed Massport materials
• 16 large Institutional Investors met with staff to discuss offering
• $2.0B in Investor Orders placed, $1.7B in orders unfulfilled
o Series 2021A ‐ 5.5x oversubscribed
o Series 2021B ‐ 5.1x oversubscribed
o Series 2021C ‐ 7.1x oversubscribed
Sample Order Placement
Bonds
Top 12 Order Placements Orders Purchased
1 Northern Trust $87,585 $27,890
2 Nuveen Asset Management $158,350 $21,690
3 Vanguard $57,630 $15,440
4 Mackay Shields, LLC (NY life insurance) $126,700 $15,400
5 Scudder Kemper Investments $70,110 $13,400
6 Metropolian Life $39,110 $13,050
7 Guggenheim Partners Asset Management LLC $115,245 $11,200
8 Merrill Lynch $82,265 $10,195
9 Bessemer Trust (Chicago Multifamily Office) $46,765 $8,265
10 Fidelity $52,175 $8,220
11 Unum $57,955 $6,700
12 Ohio Public Employees Retirement System $62,955 $5,750
7
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
Interest rate yields at historic lows – best rates ever sold
Interest Rate Comparisons – Last Four Massport Bond Sales
Year 2015 2016 2019 2021
Description
Non AMT Bonds 2.75% 1.72% 1.91% 1.05%
Treasury Spreads 28bps 20 bps 18bps 19 bps
AMT Bonds 2.75% 2.89% 2.16% 1.28%
Treasury Spreads 51bps 46bps 43bps 42bps
Interest Rate Comparisons – Massport vs Los Angeles World Airport
Massport Los Angeles
Feb 3 2021 27‐Jan‐21 Spread
Bond Type
Non AMT Bonds 1.05% 1.28% ‐0.23%
Treasury Spreads 19 bps 21 bps ‐2 bps
AMT Bonds 1.28% 1.35% ‐0.07%
Treasury Spreads 42 bps 50 bps ‐ 8 bps
Taxable 1.88% 1.96% ‐0.08%
Spreads to Treasury 74 bps 95 bps ‐21 bps
*Interest Rate comparisons are based on Year 12 of Maturity Year
8
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
9 Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021
2021 Revenue New Money Bond Issuance
(Anna Tenaglia)
10
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021$450M new money bond issue
• Staff requests board vote to accelerate new money bond sale
o Ultra low interest rates
o Significant unmet demand based on unfulfilled orders
o AA bond rating affirmed
o Bond documents complete
o Previous target to close June 2021
• New money revenue bonds will finance:
o Terminal E Modernization (4 new gates) $350M (AMT)
o Terminal B to C Connector & Optimization $40M (AMT)
o Terminal B to C Roadways $60M (Non‐AMT)
• “Green Bonds” being pursued for final Terminal E issuance
• Bonds will be both Non AMT (tax exempt) and AMT (tax exempt) series bonds
11
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Terminal E Modernization debt structure considerations
• COVID‐19 pandemic, new virus variants, and travel restrictions constraining
Terminal E passenger recovery
• Flexibility needed to structure debt payments and airline rates to align with
passenger recovery curve
• Early use of Passenger Facility Charge (PFC) revenues is being considered to
assist in keeping airline rate amortization competitive
• Other considerations to lower project annual amortization costs:
o Maximize interest rate capitalization period
o Interest payments only for defined period (recovery)
o Establish bond refunding reserve to manage airline rates
o Extending maturity length
• Flexible repayment provisions expected to increase carrying costs by 4% of
par, or $17M NPV, over maturity period (30 years)
12
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Terminal E Modernization considerations
Terminal E Modernization Project Series 2021 and Series 2022 Debt Service
(Programmatic Approach)
50
$Millions
Series 2022 ‐ Term. E Modernization
45
40
Series 2021 ‐ Term. E Modernization
35
30
25
20
15
10
5
‐
2021 2026 2031 2036 2041 2046 2051
13
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Terminal E Modernization – total debt service
Terminal E Modernization Project All Debt Service by Repayment Source
(Programmatic Approach)
60
$Millions
Terminal E Bonds Paid with Authority Revenues
50
Terminal E Bonds Paid with PFC Revenues
40 Capitalized Interest
30
20
10
‐
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
2043
2044
2045
2046
2047
2048
2049
2050
2051
14
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport’s debt profile with completed liquidity strategies
Terminal E Modernization Project Series 2021 and Series 2022 Debt Service
(Programmatic Approach)
250 Series 2022 ‐ Term. E Modernization
$Millions
Series 2021 ‐ Term. E Modernization
Series 2021 ‐ Term. B to C Roadways
200 Series 2021 Term. C Opt.
Existing Debt Service
150
100
50
‐
2021 2026 2031 2036 2041 2046 2051
15
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Green bonds
• Massport to pursue a “Green Bond” strategy in 2022, targeting 10% of Terminal E for
Green Bond Certified Project eligibility
• A Green Bond is specifically earmarked for climate and environmental projects
• Certification of Project(s) by external parties essential to issuing Green Bonds
• Annual project reporting
required on Green Bond
performance
• Project accounting
certification on use of Green
Bond proceeds
16
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Underwriting team is broad and diverse
• Senior Manager: Citi Bank
• Co‐Managers:
o Loop Capital: Largest minority owned financial firm in United States
o Goldman Sachs
o Raymond James
• Selling Group:
o AmeriVet Securities: Service‐disabled veteran‐owned broker‐dealer and Minority Business
Enterprise, whose founder is a Black, disabled veteran
o Cabrera Capital: Certified minority‐owned firm with 100% minority ownership
o Drexel Hamilton: 100% Veteran owned and operated investment bank
o JP Morgan
o Stern Brothers: 100% woman‐owned business enterprise (“WBE”)
17
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Next steps
• Board votes required to sell bonds:
Item #2:
o Bond resolution
o Adoption of PFM recommendation
Item #3:
o Reimbursement with bond proceeds
• Bond rating agency presentations:
3rd week of February
• Investor outreach: Prior to sale TBD
• Bond Pricing : Week of March 3‐10
• Bond Closing: Week of March 17‐24
18
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Report of the CEO
Lisa Wieland
19
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Federal Reserve Chair Jerome Powell warned that the economic
recovery remains uneven, incomplete, and highly uncertain
Economic Recovery
• This week Fed Chair Powell testified before
Senate Banking Committee
• He underscored the U.S. economy’s ongoing
weakness:
o Uneven: “The economic downturn has
not fallen equally on all Americans, and
those least able to shoulder the burden
have been hardest hit”
o Incomplete: “There’s a long way to go”
and momentum has “slowed
substantially”
o High Uncertainty: “The economic
dislocation has upended many lives and
created great uncertainty about the
future”
20
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Slow federal vaccine distribution and new COVID‐19 variants
continue to weigh down air travel recovery
Survey on International Travel Recovery
• With vaccine rollouts delayed in some places and new
virus strains appearing, the United Nations World
Tourism Organization says prospects for a 2021
rebound have worsened
• In October, 79% of
travel experts polled
believed a 2021
rebound was possible
• Currently, only 50%
said they believe that
• Gross U.S. travel
bookings, including
hotels, air tickets and
car rentals, are
expected to still be
below 2019 levels in
2024
21
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Full recovery for Logan Airport is at least 3‐5 years away
Forecast Logan Passengers FY21 (Revised), FY22 and FY 23
2019 Actual 2020 Actual
4,500,000 High Low Factors Slowing Recovery
4,000,000 • COVID‐19 uncertainty
FY23 • Uneven economic impacts
3,500,000 28.3 M
• Travel restrictions
3,000,000
• Business travel demand
FY22
2,500,000 21.2 M • Structural changes to the
17.6 M
industry
2,000,000 FY21
10.4 M 12.5 M
1,500,000
1,000,000
7.8 M
500,000
0
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
Jul
Sep
Nov
Jan
Mar
May
FY21 FY22 FY23
22
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Financial results for first half of FY 2021
December FYTD Highlights
Aviation December FYTD
• Logan passenger volume of 4.4M is 24.6%
lower than budget of 5.8M Revenues $317M
• Hanscom revenue of $6.6M is $0.8M or
TACCR ($16M)
14.3% ahead of plan due to higher activity
Maritime Expenses ($361M)
• Maritime revenue is $66.3M, or 57.2%
ahead of plan as Conley serviced 49
vessels, processing 77.8K containers, 26.8K Deficit ($60M)
above plan
Real Estate Federal CARES Act funds used towards
• Real Estate revenue is $24M, $10.8M or deficit
81.8% favorable versus plan due to
transaction rent
23
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport will receive $37M from the $2B airport relief contained
in December’s $908B Emergency Coronavirus Relief Act
$37M Total Relief
Massport Airports – $32.6M Concessions – $4.45M
• Logan: $31.2M • Logan: $4.4M
• Worcester: $1.3M • Worcester: $21K
• Hanscom: $57K
24
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021ACI‐NA has released a report on the future cost of the pandemic
to airports
ACI‐NA Forecast on Cost of Pandemic
• ACI‐NA released projections that show U.S. airports
will lose at least $17B between April 2021 and March
2022 because of the prolonged decline in commercial
aviation traffic resulting from the COVID‐19 pandemic
• These losses are in addition to the $23B airports are
expected to lose between March 2020 and March 2021
• The latest loss estimate is based on the following
estimates:
o $11.4B in lost airport operating revenue
o $3.5B for additional operational and infrastructure costs
related to COVID‐19
o $1.6B from lost Passenger Facility Charge (PFC)
o $500M from lost Customer Facility Charge user fees
• Additionally, airports must pay approximately $16B to
service that debt for their 2020 and 2021 fiscal years,
which will constrain airports’ ability to fund capacity
improvements to plan for long‐term future growth
25
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021$8B in additional airport relief is part of the current $1.9 trillion
COVID‐19 relief bill
Proposed Airport Relief
• Airport Funding: $8B to help airports and
concessionaires prevent, prepare for, and respond to
COVID‐19
• Primary Airports: $6.5B for primary airports and certain
cargo airports to use for costs related to operations,
personnel, cleaning, sanitization, janitorial services,
combating the spread of pathogens at the airport, and
debt service payments
• Funds would be distributed based on a modified AIP
apportionment run and any remaining funds would be
distributed based on enplanements
• Non‐Primary Commercial Service/General Aviation
Airports: $100M for non‐primary commercial service and
general aviation airports with a 100% federal share
• Federal Share for AIP Grants: $608M to pay a federal
share of 100% of the costs for any grant awarded in FY
2021 or in FY 2020 with less than 100% federal share
• Concessionaires: $800M to provide relief from rents and
minimum annual guarantees to airport concessions
26
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Despite prolonged recovery, we are optimistic about the future
and are preparing for the rebound
Where do we go from here…
• How do we reimagine what we do and how we do it?
• What will we look like in 2025? How will we be different?
• How do we meet evolving customer expectations?
• How do we leverage our strengths while building new capabilities?
• What does it take to retain and attract talent?
• How do we build organizational flexibility and resilience?
27
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021HBS Study: After a recession, most companies fared “particularly
badly” as they failed to prepare and adapt to a new environment
Survey Results
Bankrupt 17%
Did Not Return to 80%
Prerecession Growth Rate
Flourished 9%
Factors for Success
• Improving operational efficiency
• Investment in both existing and new businesses
• Invest in technology
• Decision‐Making
Study: 4,700 public companies were studied • Contingency planning and analyzing alternative
during three periods: the three years before scenarios
a recession, the three years after, and the
recession years themselves
28
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021PRELIMINARY
Massport Mission
From the last Strategic Plan:
A world‐class organization of people moving people and goods – and
connecting Massachusetts and New England to the world – safely and
securely and with a commitment to our neighboring communities
Potential revision:
A world‐class organization of people moving people and goods –
connecting Massachusetts and New England to the World ‐ safely,
securely and efficiently, with a commitment to sustainability, our
neighboring communities, and diversity, equity and inclusion
29
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021PRELIMINARY
Massport Strategy 2021‐2025
We are in the process of formulating strategies around:
• Safe, secure and healthy facilities
• Customer experience
• Business model adaptation and financial risk mitigation
• Diversity, Equity and Inclusion
• Environmental leadership
• Digital transformation
• Relationships with business partners, stakeholders, elected officials
and employees
30
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021PRELIMINARY
Massport Strategic Priorities 2021‐2025
Aviation Maritime Real Estate
• Reimagined Customer Journey • Full Global Connectivity & • Asset Optimization and
Diversified Service Mix Diversification
• Adaptive Terminal E Use
• Infrastructure Modernization • Expanding the Massport Model
• Terminal Connectivity
• Cruise Rebound • Growth and Support of
• Diversified Logan Maritime Industries and the
Operators/Airfield Land‐Use • Financially Self‐Sustaining Seafood Cluster
Planning
• Public Realm and Placemaking
• Asset/Area Optimization and
Repurposing
• ORH Rebound
• Hanscom Operating Break‐Even
Authority Wide
• Safety, Security & Health • Technology Plan
• Financial Sustainability • Operational Efficiency
• DE&I (Internally and Externally) • Transportation Access and
Mobility
• Workforce Sustainability
• Community Partnerships
• Comprehensive Approach to Climate
Change • Telling our Story 31
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Report of the Director of Aviation
Ed Freni
32
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021New England Patriots fly 76 healthcare workers out of Logan
Airport to Super Bowl to honor their hard work and commitment
• Health care workers were celebrated at a short
event featuring Patriots President Jonathan Kraft,
team captain Matthew Slater, and Governor Charlie
Baker at Logan Airport before the plane took off
• The Patriots plane was last at Logan Airport when
the Kraft family had offered up the plane's services
to help fly much‐needed personal protective
equipment to Massachusetts
• Delta also helped in coordinating the effort
33
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021There is bipartisan support to provide airlines with $14B in added
relief as part of a proposed $1.9 trillion stimulus package
Airline Relief
Proposal
• Airlines: $14B for PSP to keep workers on the job
until September 30, 2021
• Airline Contactors: $1B to keep workers on the job
until September 30, 2021
• The current round of aid of $15B and its workforce
requirements expires on April 1, 2020
• Several airlines have warned that there could be
tens of thousands of furloughs if support isn’t
extended
Legislative Support
• The House of Representatives Financial Services
Committee voted 29‐24 to approve this relief
proposal
• Chairman of the House Transportation and
Infrastructure Committee, Rep. Peter DeFazio, also
strongly supports a new round of payroll assistance
for airline workers
34
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Domestic: JetBlue and American kicked off of their new joint
strategic partnership
New Service – Begins This Summer
• Boston to Ashville (NC), Columbus (OH),
Jackson Hole (WY), Traverse City (MI),
Wilmington (NC)
Expanded Service – Begins This Spring
• Boston to Fort Lauderdale (FL), Miami (FL),
West Palm Beach (FL), New York (LGA),
Washington DC (DCA)
The Logan Airport Advantage Codeshare – Begins This Week
Logan's B‐C Connector enhances joint partnership
• The airlines begin code‐sharing on nearly 80
routes
• Code‐sharing allows passengers to book flights
operated by the partner airline through their
preferred airline
• Passengers with both American’s AAdvantage®
and JetBlue’s TrueBlue programs will also be
able to earn points or miles on either carrier
35
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Domestic: ULCC Allegiant Air is growing its service out of Logan as
passenger demand has shifted to low fares and new destinations
Midwest
• Starting on May 28, Allegiant will begin new nonstop flights from
Logan to Indianapolis
• “Boston has always been an important business and leisure
destination for IND” – Mario Rodriguez, Executive Director of
the Indianapolis Airport Authority
• Starting March 5, Allegiant will begin new nonstop flights from
Logan to Grand Rapids, MI
• Fares will be as low as $49 each way
Mid‐Atlantic
• Starting May 28, Allegiant will begin new nonstop flights from
Logan to Norfolk, VA
• “Boston is always in demand as a one‐of‐a‐kind destination,
steeped in our nation’s history…We’re excited to provide our
brand of convenient, affordable nonstop service for Norfolk
residents looking to walk the Freedom Trail, visit the Faneuil
Hall marketplace and experience all that Boston has to offer”
– Drew Wells, Allegiant’s Senior Vice President of Revenue
36
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Domestic: Delta, Logan’s second largest carrier, will block middle
seats and limit capacity on all flights through April 30, 2021
Extension on Blocking Middle Seat
Details
• Delta will be the only U.S. airline to continue to
block middle seats and limit capacity on all
departing flights
• “We want our customers to have complete
confidence when traveling with Delta, and they
continue to tell us that more space provides more
peace of mind…We’ll continue to reassess seat
blocking in relation to case transmission and
vaccination rates” –Bill Lentsch, Delta Chief
Customer Experience Officer
Impact to Massport
• This move will decrease capacity on Delta aircraft
and therefore may shift passenger activity over to
other airlines at Logan, as has been recently seen in
other markets where Delta is competing such as
Chicago
37
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021International: Carriers are competing for future transatlantic
service out of Logan – a strong sign of confidence in Boston market
New Service to London
• United has announced that it will launch service from
Logan Airport to Heathrow Airport later in 2021
• Boston will become United’s 19th daily flight between
the U.S. and Heathrow
• "We are thrilled to offer travelers a convenient, non‐
stop option between Boston and London with this
addition to our global network“ – Patrick Quayle,
United's Vice President of International Network and
Alliances
• This service is in direct competition to JetBlue’s first
inaugural transatlantic from Boston to London which it
anticipates to begin either this year or next
38
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021International: Air Canada has ceased all service to Logan due to
Canada’s new 14‐day quarantine mandate for arriving passengers
New Restrictions
Testing
I. Travelers will need to be tested before boarding their return flight to
Canada
II. Travelers will be tested again when they return to Canada, before
exiting the airport
Quarantine
III. Travelers will have to reserve a three night stay in a government‐
authorized hotel, where they will have to wait for their test results
IV. A.) If the result taken on arrival is negative, the traveler will be
permitted to complete the remainder of their mandatory 14‐day
quarantine at their home or other locations
IV. B.) If, however, the test result is positive, the traveler will be required
to spend the remainder of their mandatory 14‐day quarantine in a
designated government facility
V. Towards the end of the 14‐day quarantine, travelers will need to get an
additional test
Impact to Logan Airport
• Travel from Canada represented 15% of all international travel at Logan
Airport in 2019
• The Air Canada area of Logan has been temporarily shut down
39
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021International: HNA Group’s bankruptcy may impact Hainan
Airlines and its restoration of Logan's nonstop service to China
HNA Group Bankruptcy
• Chinese conglomerate HNA Group Co. has been
placed into bankruptcy and restructuring
• HNA Group is the parent company of Hainan
Airlines, which operates flights to Beijing and
Shanghai out of Logan Airport
o Currently, Hainan has suspended all service out of
Logan due to the pandemic
• For the time being, Hainan Airlines has said it is
maintaining its usual operations
• The HNA Group said it would spend this year
negotiating to bring in strategic investors
• It is expected that there will be strong interest in
Hainan despite the bankruptcy and its current
financial challenges and that ultimately Hainan may
change ownership
40
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Certain Boeing 777s have been grounded and are being inspected
due to an engine failure on a United flight from Denver to Hawaii
Incident
• On February 20, a United Airlines flight from Denver to
Hawaii suffered engine failure soon after takeoff
• The engine that failed on the 26‐year‐old Boeing 777 was a
Pratt & Whitney 4000 used on 128 planes, or less than 10%
of the global fleet
• The FAA has now announced an emergency airworthiness
directive that would require immediate or stepped‐up
inspections of these engines
• An initial examination by the NTSB has shown that two
engine fan blades were fractured and that the damage is
consistent with metal fatigue
Aircraft Groundings
• Boeing has told airlines to stop flying its 777 with Pratt &
Whitney engines until the FAA identifies the appropriate
inspection protocol
• U.K. has banned these aircraft from its airspace
• United has grounded its 28 aircraft
• Japan Airlines has grounded its 13 aircraft
• Korean Air has grounded its 6 aircraft
41
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Logan Airport activity levels continue to be impacted by the
ongoing pandemic
January 2021 Logan Activity Summary
January YoY %
Passengers 740,247 ‐75%
Aircraft Operations 12,604 ‐62%
42
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Logan experienced an increase in weekly passengers due
primarily to Massachusetts school vacation week
• 118,710 passengers screened last week (w/e 2/21) • ≈52% below break‐even
• Down 1% over prior week (230,000 weekly passengers)
• Down 70% over last year
Weekly TSA Screened Passengers Since Mid‐April
160,000
Holiday Travel
140,000 Last 2 Weeks
120 K 119 K
120,000
100,000
80,000
80,000
60,000
40,000
20,000
0
4/19/2020
4/26/2020
5/3/2020
5/10/2020
5/17/2020
5/24/2020
5/31/2020
6/7/2020
6/14/2020
6/21/2020
6/28/2020
7/5/2020
7/12/2020
7/19/2020
7/26/2020
8/2/2020
8/9/2020
8/16/2020
8/23/2020
8/30/2020
9/6/2020
9/13/2020
9/20/2020
9/27/2020
10/4/2020
10/11/2020
10/18/2020
10/25/2020
11/1/2020
11/8/2020
11/15/2020
11/22/2020
11/29/2020
12/6/2020
12/13/2020
12/20/2020
12/27/2020
1/3/2021
1/10/2021
1/17/2021
1/24/2021
1/31/2021
2/7/2021
2/14/2021
2/21/2021
Actual Apr May Jun Jul Aug Sep Oct Nov Dec Jan
Psgrs: 95,000 203,000 438,000 738,000 702,000 634,000 782,000 755,877 805,000 740,000
43
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Despite this uptick, travel during school winter break was down
67% compared to last year
Daily TSA Screened Passengers (outbound) – MA School Winter Break*
80,000
70,000 Total Holiday
Period
60,000
2020: 634,000
50,000
2021: 208,000
40,000
Chg: (426,000)
30,000
% Chg: ‐67%
20,000
10,000
0
2/11 2/12 2/13 2/14 2/15 2/16 2/17 2/18 2/19 2/20 2/21
* Winter break period: Monday‐Friday 2/15/21 to 2/19/21; Passengers measured from Thursday before break to Sunday
before return to school
Note: 2021 versus 2020 for same weekday
44
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Hanscom Field activity declined due to weather impacts and the
slower winter travel period
6‐Month Aircraft Operations Hanscom Trends
• January 2021 flight activity was negatively
2019 2020 2021 impacted by COVID‐19, weather, and the slower
14,000 winter travel period
12,000 • Charter activity has increased with the start of
several professional and collegiate sports seasons
10,000 8.7K 8.9K
8.4K
8,000
7.7K • Most of the private jet activity continues to be
leisure
6,000
National Trends
4,000
• Private aviation for leisure and business travel
2,000 remains a strong, growing market amid COVID‐19
0
September
January, 2021
December
August
October
November
Y‐O‐Y
‐13% ‐17% ‐9% ‐8% 3% ‐14%
Change
45
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Major airlines reported record losses in 2020, but are optimistic
about a rebound sometime in the second half of 2021
2020 Losses Future Outlook
2020: $12.4B loss “While our challenges continue in 2021, I am optimistic this will be a year of
2019: $6.2B profit recovery and a turning point that results in an even stronger Delta returning to
revenue growth, profitability, and free cash generation” – CEO Ed Bastian
“We remain cautiously optimistic that demand trends will improve later this year.
2020: $1.36B loss More importantly, this crisis has made us a more agile, creative and resilient
2019: $569M profit airline, and we believe our initiatives will allow us to emerge with structurally
better margins” – CEO Robin Hayes
2020: $8.8B loss “As we look to the year ahead, 2021 will be a year of recovery…While we don’t
2019: $1.7B profit know exactly when passenger demand will return, as vaccine distribution takes
hold and travel restrictions are lifted, we will be ready” – CEO Doug Parker
2020: $8.8B loss “Whether we reach an inflection point in the spring, the summer or the fall, what
2019: $1.7B profit we know is that a recovery is coming” – CEO Scott Kirby
2020: $3.1B loss
“Even Southwest is not immune to Covid‐19…Yes, these are bad times. Yes, we
2019: $2.3B profit had our first loss since our startup year. But we have much to be grateful for, and
we have every reason to be hopeful that this, too, shall pass” – CEO Gary Kelly
46
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Airlines are launching apps that verify tests and vaccinations,
paving the way for future recovery – many being tested at Logan
American, Alaska, and British Airways (trialing at Logan) Delta
Guests can upload required health documents, including TrustAssureallows customers to upload documents verifying COVID‐19 test
negative test results, and select their country of destination results at check‐in via the airline’s channels such as pre‐flight e‐mails and
delta.com
After users complete uploading required forms, they will
receive travel pass verification, which can take up to six hours
JetBlue, Lufthansa, Swiss International Airlines, Virgin Atlantic
United
Available for Logan Airport passengers
Travel‐Ready Center gives passengers a personalized, step‐by‐
step guide of what is needed for their trip, a simple way to CommonPass lets passengers access their lab results and
upload required documents and get their boarding pass, fully vaccination records, and consent to have that information used
integrated within United’s app and website to validate their COVID status for travel
Emirates and Qatar
The new app developed by IATA will enable travelers to manage
all travel documentation digitally and seamlessly throughout the
travel experience
47
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Report of the Director of Maritime
Mike Meyran
48
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021The global port system is near gridlock at major gateways as cargo
import peak in U.S. hits 30% YoY increase in December/January
North Asia Service North Europe Service
China Europe
• Ports are 80‐98% full • Main global hub terminals including
• Average wait time for ships per port is 2‐3 Antwerp are heavily congested and being
days skipped
U.S.
• Savannah and NY are backed up 2‐3 days • Antwerp is the hub connection for
Boston to South East Asia and the
Mediterranean
49
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Heavy supply chain congestion, combined with 100% load factors
will create challenges for the port until Fall 2021
1. Schedule integrity has fallen apart Arrive Charleston
o Port of Boston has a 17% on time arrival in 2021
2. Ships are being idled to "catch the system up"
o The current round of de‐facto blank sailings could be
the first of several corrections that carriers and alliances
may have to make in the coming months
o 3 of 8 ships due to arrive in February will not call Boston Depart Charleston
3. Empty containers are a premium in Asia, limiting
exports to U.S.
o Demand for containers outstripping supply
4. Load factors are at 100% for the foreseeable future
o Freight rates up 145% from Jan 2020
• Restrictions of Boston cranes reduce
o Space on ships is at a premium capacity departing Charleston
5. Crane heights in Boston limit the full loading of ships
• Approximately 275 containers @ $4500
o Full exports/empties are being limited out of Charleston
per container = $1.25M
o Full exports/empties are being limited from Boston
6. Crane restrictions are creating lower overall load
factors and revenue for shipping lines calling the port
50
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021The Conley infrastructure improvement program is reaching a
critical milestone needed to sustain current and future operations
Status of Conley Ship‐to‐Shore Cranes
Fabrication complete
March 2021
Ship early April 2021
Arrival June 2021
Commissioned
by September 2021
51
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Infrastructure investments in Boston are setting the port up to be
in a competitive position regionally
East Coast Ports
Large Ports – Congested and Capacity Limited
• Efficiency: With no large‐scale capacity expansions
planned, PANYNJ is looking at how it can move containers
more efficiently in 2021 and beyond, while smaller ports
on the U.S. East Coast are still hard at work on projects
aimed at boosting their volumes
• 2021 Outlook: PANYNJ projects a recovery in 2021, with
container volumes reaching an estimated 7.2M TEU, but
that estimate is 8.5% lower than the agency’s pre‐
pandemic 2021 forecast
• No Expansion: The drop in container volumes will limit the
port’s capital spending in 2021 to recurring maintenance
and completing projects that have already begun
Small Ports – Port of Boston as Competition
• Competition: Elsewhere in the Northeast, the Port of
Boston plans to complete projects in its harbor and on the
land side in the coming year that will allow it to service
ships with up to 14,000 TEU of capacity, up from its current
limit of 10,000 TEU
52
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Port of Boston Big Ship Marketing Campaign has kicked off and
will be aimed at customer deployment planning in late 2021
• Campaign leading up to the arrival
and commissioning of new cranes
for Fall 2021
• Customers will be planning 2022
deployment in late 2021
• Digital campaign in trade press
and social media channels
• Video spot at Transpacific
Maritime virtual conference in
February
53
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Conley finished January down 14% YoY, with 20% of ships delayed
into February due to congestion in upstream ports
As of January 2021, Conley volumes are trending 19% above the “Most Likely” forecast for FY2021
Monthly Containers – Actual and Forecast
54
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Canada announces interim order suspending cruise operations in
Canadian waters until February 28, 2022
• Prohibits cruise vessels carrying more
than 100 people from operating in
Canadian waters
• Transport Canada is open to rescind order
depending on pandemic outcomes
• Cruise ships (except U.S. flag) must sail to
a foreign port when taking passengers
from a U.S. port
• 104 ships were on the 2021 schedule
o 31 remain after this announcement
• Cruise lines working through details with
possible itinerary changes from Canada‐
New England to Bermuda
55
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Analysts have downgraded their outlook for return of cruising
Cruise Analyst Report (Truist Securities)
• Cruise operators aren’t likely to resume
sailings from U.S. ports until the
second half of 2021 under the best of
circumstances, and possibly not until
early 2022
• “Consensus expectations are for a
return to revenue sailings in 2Q21 with
[an] acceleration into 3Q21, which we
do not see as realistic”
• The resumption of cruising has been
complicated by a host of factors,
among them a slower‐than‐expected
U.S. rollout of COVID‐19 vaccines, a
surge in cases, and a demanding
conditional order from the CDC to
restart sailings
56
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021CDC road to cruise resumption remains on pause with cruise lines
pushing sailings out further and signaling dependence on vaccine
• The CDC is not providing further instructions,
causing delays in certification process and test
sailings
• Extension in pause of sailings include:
o Carnival: May 31, 2021
o Norwegian: May 31, 2021
o Royal Caribbean: May 31, 2021
o Princess: February 28, 2021
o Holland: February 28, 2021
• While cruise lines await further instruction, they
are investigating mandatory vaccination and
other protocols for the future of travel
• Norwegian, Regent, Royal Caribbean will require
crew to be vaccinated
57
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Strong demand for return to cruising seen in recent sales and a
new deployment for the Port of Boston
• Carnival bookings for first half of 2022
outpacing 2019; 60% are new bookings
• Royal Caribbean reports strong bookings for
H2 2021 – at higher price point than 2019
• Oceania 2023 180‐day world cruise, with
cabins at $41,000 per person, sells out in 24
hours
• Royal Caribbean announced that the 2022
Boston deployment will include the Voyager
of the Seas, a 3600 passenger homeport
vessel – a big upgrade from the 2150
passenger ship last serving the port
58
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Business update for other cargos on Massport properties
Berth1
Boston Autoport Berth 1 South Boston
• Morton Salt, Chile import • Coastal cement corporation, parent
company Giant cement
• Export autos to West Africa
• Transported from Rockland, ME
• Heavy construction equipment
• 350' Barge unload to 4 silos
• New import Subarus
59
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Total annual salt imports were up 40% YoY at the Boston
Autoport, with a total of 5 vessel arrivals during CY 2020
60
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021After a sharp decline earlier in the pandemic, Boston Autoport
imports rebounded in H2 2020, finishing the year ‐10% YoY
• Imports (new): +3% YoY
• Export (used): ‐40% YoY
• The Autoport served 0 export ships
from March to mid‐June
• Auto units began to return in July as
auto dealers reopened for retail
sales, consumers moved to
suburbs, and relied less on public
transit
61
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Annual cement tonnage declined 18% YoY due to a city‐wide ban
of non‐essential construction from March to mid‐May 2020
Cement bulk tonnage at the Port of Boston has continued to align with the trends seen across the
U.S. in this sector since the onset of the COVID‐19 pandemic
After a sharp decline during the initial COVID‐19
shutdown, Boston's cement activity began a slow,
non‐linear recovery during H2 of CY2020
62
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Safety and Security
63
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021COVID‐19 Update
(Hank Shaw)
64
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Federal COVID‐19 Executive Orders
EO 13998: Promoting COVID‐19 Safety in Domestic and International Travel
• Requires masks be worn in compliance with CDC guidelines in airports, commercial aircraft,
trains, public maritime vessels, intercity bus services, and on all forms of public transportation*
• DHS announced that TSA workers now have the authority to enforce the EO at TSA screening
checkpoints and throughout the commercial and public transportation system
• USCG issued an advisory reinforcing the new requirements
EO 13999: Protecting Worker Health and Safety
• Requires the Dept. of Labor to review current health safety guidelines for workers related to
COVID‐19 and, if necessary, issue new standards by March 15. The EO will also launch a national
program to focus OSHA enforcement efforts related to COVID‐19 on violations
*as defined in section 5302 of title 49 USC 65
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport COVID‐19 Update
Massachusetts Second Wave declining
• December and early January saw highest number
of cases
• Steady decline in the number of cases,
hospitalizations, and deaths over the past four
weeks
• The MA 7‐day average of percent positivity
dropped to 1.86%, down from 8.67% on January 1
Massport Response Planning
• Fewest number of employees in quarantine since
October
• Staffing returned to 40% (from 25%) in office settings
• First responder vaccinations nearing completion
• Alternate work schedules and select platooning for
operational units continue
• PPE supplies reviewed and additional items procured
• Updated terminal messaging to reinforce the Federal
and State mask mandate
66
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport collaborated with Harvard’s Aviation Public Health
Initiative on its study of COVID‐19 impact to airports
The Aviation Public Health Initiative is a joint program of the Harvard T.H. Chan School of Public
Health and the Harvard Kennedy School of Government
APHI Study
• APHI worked with A4A, ACI‐NA, aircraft manufacturers,
airport operators, government agencies, and others to study
the COVID‐19 transmission risk of the curb‐to‐curb journey
in airports and potential mitigation strategies
• As part of their work, the Harvard team surveyed 25 airports
of various size
• Logan worked with APHI on sharing information and data on
the airport passenger journey
• The study found: “Overall, the airports in the study are
implementing comprehensive strategies to mitigate the
impact of COVID‐19 on their employees, passengers, and
the wider airport community. They have adopted a layered
risk mitigation approach in line with the science of SARS‐
CoV‐2 and known routes of transmission”
• “Good practices are present across the airport operator
surveyed. Greater harmonization of practices across the
industry will support focused investment and preclude
investments that offer little risk mitigation benefit”
67
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Human Resources and Compensation
68
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Financial Sustainability Workforce Plan
69
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021The White House’s proposed $1.9 trillion COVID‐19 relief bill is
advancing with $8B in airport aid included
Airport Relief
• $8B to help airports and concessionaires prevent,
prepare for, and respond to COVID‐19
• This relief would be in addition to the $2B in relief
airports received as part of December’s $908B
Emergency Coronavirus Relief Act
• As part of the terms for the $8B, aviation employee
retention would be extended through September
30, 2021
Legislative Support
• The House Budget Committee recently voted to
advance the $1.9 trillion COVID‐19 relief package
• Additionally, the House Transportation and
Infrastructure Committee approved the relief
package and its $8B in aid for airports and
concessionaires
70
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Management proposes to reintroduce a voluntary separation
program, as needed, to continue to achieve financial savings
COVID‐19 FY 2021 Financial Sustainability Workforce Plan vote:
• Provides flexibility to reinstitute the Voluntary Retirement (Union) and
Voluntary Separation (Admin) programs in a manner reasonably consistent
with the November Vote
• Adjusts severance pay for administrative involuntary separations to be equal
to the terms of the Severance Policy, as modified by the November Vote, or
amount determined by the CEO reasonably consistent with the November
vote, whichever is greater, effective as of January 1, 2021
71
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Designation of Committees, Committee Chairs
and Vice‐Chairs, and Committee Members
72
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Community Outreach
73
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport CAC Update
(Alaina Coppola)
74
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021On February 11, the FAA briefed the Massport CAC on the
results of its National Noise Annoyance Survey
FAA Presentation on
National Noise Annoyance Survey
Massport CAC feedback:
• Believe that the study should lead to
policy changes including focusing on
lower noise levels for mitigation
• Level of disappointment that Boston
Logan wasn’t included in the 20 airports
surveyed (FAA used Logan to help design
the survey)
• Strong feeling that navigational tools like
RNAV should be looked at airport by
airport and not be used nationally
Source: https://www.faa.gov/regulations_policies/policy_guidance/n
oise/survey/
75
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Real Estate and Strategic Initiatives
76
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Tenant and Subtenant Update
(Andrew Hargens)
77
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Massport tenant and subtenant locations
78
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Boston Shipyard & Marina – tenant diversification and investment
• A hub of mixed business activity
o 30 businesses and over 250 employees
o Nearly $10 million in capital improvements
made since 2012
• A world leader in dredging, marine
infrastructure and offshore energy
• Expected to be major player for MA
offshore wind project
• More than 5,000 employees worldwide
and $3.2B in revenue in 2019
• Initial lease of 2,800 sq ft of corporate
office space
79
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021ICA announces Summer 2021 Watershed Exhibition
• Firelei Báez will be the 2021 Featured Artist
o Installation reimagines ancient submerged ruins
exposed by receded waters
o Artist’s largest sculptural installation to date
o The Watershed will open its doors to the Public
from July 3 to September 6
• Watershed continues to bring vitality to the
Shipyard and the East Boston waterfront
o Opened in summer of 2018
o Transformed 15,000 SF of vacant space for
world‐class, large‐scale art exhibits
• Helping East Boston residents during COVID‐19
o Watershed transformed into a food distribution
center for EB organizations
o 6,200 boxes of food and 5,000 art kits will be
distributed between April 2020 and June 2021
80
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Shipyard’s KO Pies may be closing by year end
• First Australian‐inspired food business in
New England
o Business started in 2010
o Shipyard location opened in 2012
• Provides Australian themed eat‐in, take‐
out, catering, and pantry food items
o Known for its meat/vegetarian pies and
barbeque‐grilled seafood
• Owner relocating back to Australia and
has placed the business up for sale,
purchase options include:
o Continuing operation as KO Pies
o Buying assets, including alcohol licenses,
and pursuing new restaurant venture
• Plans originally announced in 2019,
delayed due to COVID‐19
• Shipyard lease expired at the end of 2020
and is now‐month‐to‐month
81
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Great Eastern Seafood finds a new home at 88 Black Falcon
• Seafood processor and distributor founded
in 1982, previously a Massport tenant at
the Fish Pier
• Distributes product throughout the U.S.,
Europe, South America and Asia
• Relocating from Widett Circle
• 38,000 sq ft ground floor lease
• New lease demonstrates the effectiveness
of lease commitments RE&AM negotiated
with the Davis Companies to dedicate and
market ground floor space at 88 Black
Falcon to maritime industrial businesses
82
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021645 Summer Street’s successful renovations lead to bio boom
• Pappas/Oxford undertook a major building
renovation in 2019
o Complete envelope refresh
o Smart amenities
o Improved natural light penetration
o Roof deck with views of Boston Harbor
o Installed one of the largest rooftop solar
panel arrays in Boston
o USGBC ‐ LEED Silver Certification
o Harborside promenade improvements
• Renovations have generated 113,000 SF of
new life sciences leases
83
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021645 Summer Street is now 100% leased
• Akouos Inc. Doubles Down
o Cutting‐edge auditory gene therapy
o Existing tenant recently doubled footprint
o 75,000 sq ft for 10 year term
• Ikena Oncology Moves In
o Patient‐driven biomedical cancer therapies
o Move In: February 2021
o 21,000 sq ft for 5 year term
• Monte Rosa to Follow
o Cancer therapeutics
o Move In: March 2021
o 17,000 sq ft for 5 year term
• 908 Devices
o Sensing devices for various applications
o Projects used in military and law enforcement
o Moved In: January 2018
o 37,500 sq ft for 7 year term
84
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Moody Nolan receives 2021 Architecture Firm Award
• Moody Nolan was awarded the prestigious
“Architecture Firm Award” from the
American Institute of Architects (AIA)
• The first African‐American owned firm to
receive the award in the AIA’s nearly 6
decades of recognizing distinguished
architectural firms
• About Moody Nolan
Omni Hotel South Boston
o 220‐member firm
o The country's largest African American–
owned and –operated design firm
o Currently working on the design of the
interior spaces of the Omni Hotel
o Partnered with the Boston‐based
architectural firm, Arrowstreet, on the
Lincoln Property development team for
Parcel H
85
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021General Aviation Facility Operator
Lease Designation
(Ed Freni and Dan Gallagher)
86
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021With the incumbent Logan Airport FBO lease expiring in 2021,
Massport issued a Request for Interest (RFI) in August 2020
The RFI process addressed two scenarios:
Scenario 1: The long‐term lease and operation of the existing general
aviation facility at Logan Airport
Scenario 2: The short‐term lease and operation of the existing general
aviation facility and a future long‐term lease for a new
relocated general aviation facility with corresponding ramp
in the North Service Area through private investment
87
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Scenario 1: Long‐term lease and operation of the existing
general aviation/FBO facility at Logan Airport
• The FBO provides support services to
business and private aviation:
o Aircraft refueling
o Maintenance, repair and overhaul
o Passenger services
o Flight crew lounge
• 2019 general aviation activity at Logan:
o 29,000 operations
o > 105,000 passengers
88
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Scenario 2: Optimization of the North Service Area
North Service Area The North Service Area accommodates
several core aviation functions:
o Maintenance facilities (Massport)
o Equipment storage yard (Massport)
E
C o Fuel storage and distribution system
A o General Aviation facility (FBO)
B
o Public‐use aircraft ramp
Passenger Terminal Locations
89
Visual Materials for Massachusetts Port Authority Board Meeting February 25, 2021Logan Airport General Aviation Facility Lease
• Four bids were received:
(1) Atlantic Aviation (2) Rew Investments (dba Million Air) (3) Signature Flight Support (4) Jet Aviation
• Signature’s proposal met or exceeded all criteria and included unique features:
o Financial
o Operational
o Community
o Environmental
• Staff recommends Board authorization to execute and deliver:
1. Long‐term Lease and Aviation Services Operating Agreement for the Existing GA Facility:
• A new lease for the existing GA site (FBO) with Signature for an initial term commencing on July
1, 2021, and ending no later than June 30, 2061
2. MOU Agreement for a Potential GA Facility Relocation:
• A binding MOU between Massport and Signature concerning the issuance of a Notice to
Proceed, at Massport’s sole discretion, for the relocation, construction and lease of a
replacement GA facility
90
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