Airport infrastructure largely is the same now as it was in the post-World War II era. COVID-19 and a focus on green technology are changing the way airports operate and airport infrastructure must change as well. AviationPros' assistant editor, Walker Jaroch, spoke with Eric Richards, co-chair of O’Melveny’s corporate department; Denise Raytis, partner, project finance and development, O’Melveny; and Elizabeth Dubeck, partner, project finance and development, O’Melveny, for an edition of the AviationPros podcast. The group talked about the current needs of airport infrastructure, how COVID-19 is changing airports and what the industry can expect from President Joe Biden's administration.
"There was, and I believe, will continue to be tremendous need for investment and for the development of airport infrastructure when we get to the post-pandemic phase," Richards said. "We've undergone continuous rapid growth over many years based on infrastructure that was largely developed in the post-World War II years. There are only a couple new airports in the United States that have been developed from the ground-up since World War II, for example. Otherwise, the basic framework and foundations have been there for many, many years and we've been building on them."
Airports are changing their operational practices to keep passengers safe in the COVID-19 era and airport infrastructure must be updated as well.
"For existing, newer airports and in the design and plan for airports of the future, there will be a continuing push toward airside space in terminals versus landside pre-check-in space," Raytis said. "You can imagine as a result of COVID-19, social distancing will require even more space in retail and hold rooms once passengers pass through security. So, there will be a continuing evolution, we predict, to touchless facilities on the landside and for more space on the airside for folks to linger in as they wait for their planes and prepare to travel."
COVID-19 is not the only reason for airport infrastructure updates. Biden's administration is pushing for a more environmentally friendly society which means airlines and airports must implement greener technology and practices.
"The operations at airports have already started to focus on environmentally friendly innovations but with the support of the Biden administration they should continue to do so and they should expand their efforts in that area because they really have a unique opportunity to serve as role models in this space," Raytis said.
Dubeck mentioned several initiatives airlines are taking to offset their carbon footprints. Delta made a pledge to be carbon neutral through offsets and improved cleaning technology. United Airlines is using an increasing amount of biofuel out of LAX and across their fleet. Richards also noted these companies are investing in new technology companies which will have a dramatic impact on aviation infrastructure.
"United airlines announced investments last month in Archer Aviation — a billion-dollar order for air taxis. JetBlue has made similar investments in other technology companies. How will all these industries which are rapidly developing impact airports? Where will the air taxis go, for example? So I think there's a lot of rapid change ahead and the theme of airports needing to be ready and in a constant mode of adaptation is only going to continue and intensify," Richards said.
Major airport upgrades like these require large funds. Airports haven't been able to commit to major upgrades — the reason why most facilities still have the same basic framework and foundations from the post-World War II era. Dubeck said she is hopeful Biden's "Build Back Better" plan will help airports make the required updates to their infrastructure. While it hasn't been released yet, Dubeck said airport and transportation infrastructure seem to be main components the plan.
"Airport improvement grants are an important source of funding for airport infrastructure development and just pumping more money into that system means more projects can get done. But perhaps in a more exciting approach, there are indications that the Biden administration is willing to consider new funding approaches and there have been references to some of Biden's campaign plans to a competitive grant model introducing this new funding source that could potentially drive funds to the most efficient and the most beneficial projects across the country," Dubeck said.
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