RUNWAY SPENDING.

• Author: Macmillan, Mike
• Position: NC TREND: Transportation: RDU

WITH THE FEDERAL SPIGOT MOSTLY CLOSED. THE TRIANGLE'S MAJOR AIRPORT LOOKS FOR CREATIVE WAYS TO FINANCE ITS FAST GROWTH.

For Raleigh-Durham International Airport to achieve its goal of adding a direct flight to China, that $10 or $20 parking fee paid by many travelers just might be the ticket. About 36%, or $55 million, of the airport's $151.6 million in 2018 revenue was generated by parking income, and the airport's governing board is trying to expand that with new services such as "Trunk to Curb"--a kind of concierge service for luggage--and an online parking-reservations system. Carry-your-own parking rates increased by $ 1 to $4 a day on April 1.

A buck here and there matters because airports around the country are struggling with cutbacks in federal funding and scrambling for new ways to pay for needed infrastructure projects. By one estimate, commercial airports will need as much as $128 billion over the next five years. But the federal Airport Improvement Program now receives $3.35 billion a year from Uncle Sam, leaving a $100 billion-plus shortfall. That's real money, to paraphrase the late U.S. Sen. Everett Dirksen.

"These huge capital projects were once supported by the federal government, but that's no longer the case," says Michael Landguth, RDU's chief executive officer since 2011. "If you look at highways, bridges and airports, we are significantly underfunding infrastructure in this country."

A classic example is RDU's plan for an 11,500-foot runway, a centerpiece of the airline's long-term plan called Vision 2040. The intent is to help attract more international nonstop flights to complement existing service to Paris and London. Service to Asia could be a big boost to the Triangle's hot tech economy. The airport originally anticipated that federal funds would account for about half of the runway's $350 million price tag. More recently, it was told by the Federal Aviation Administration to expect a 10% contribution. As a result, RDU has been forced to look elsewhere for funding.

Advocates of greater public investment in runways say it's a shortsighted strategy. "Airports are one of the very best investments a state or community can make, but they're typically overlooked in favor of other types of infrastructure like roads or ports," says John Kasarda, an adjunct professor at UNC Chapel Hill's Kenan-Flagler Business School. He coined the term " Aerotropolis" to describe metro areas that grow up around airports.

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