Anchorage International Airport Explores Public Private Partnership to Operate International Terminal

Sept. 19, 2019

Ted Stevens Anchorage International Airport (ANC) has issued an Expression of Interest (EOI) for a public private partnership to operate and manage the international terminal at the airport. By partnering with the private sector, the airport would be better positioned to capture future passenger growth and meet the expectations of today’s international passenger.

“The airport has an existing eight-gate international terminal that is ideally positioned to capture a portion of the forecast growth in air travel between Asia and North America,” said Jim Szczesniak ANC’s Airport Manager. “The terminal has a great history. In its peak the duty-free store generated over $100-million in annual sales and the terminal can handle 8 wide-body aircraft at a time.”

ANC is the world’s fifth busiest air cargo airport and handles just under 3 million metric tonnes of air cargo per year. Seventy-nine percent of all Asia to North America freighter aircraft take advantage of ANC’s strategic location, excellent service, and special air cargo transfer rights to run a more efficient air cargo operation.

ANC currently serves four international passenger markets with nonstop service and is the closest west coast airport to Asia. ANC is also strategically located to provide connecting option between Asia and Latin America. Stopping at ANC only adds 1 mile to the great circle flight distance between Tokyo, Japan and San Paulo, Brazil and 4 miles to the great circle flight distance between Beijing, China and Santiago, Chile.

“Asian tourist’s top desire when visiting the U.S. is to experience nature. Alaska is home to eight national parks, glaciers, the northern lights, abundant wildlife, and the tallest mountain in North America. You won’t find a better place to experience nature than Alaska,” said Szczesniak. “In 2018, our Asian tourism market grew 13 percent and the Chinese tourism market grew 65 percent. Compared to other west coast gateways, ANC has significantly lower operational costs and is not congested. ANC’s international terminal presents a tremendous opportunity to capture future passenger growth. Governor Dunleavy’s message is that Alaska is open for business and the airport is looking at partnering with the private sector to drive growth at ANC.”

The EOI will gauge the level of interest in a public private partnership for a third-party operator to take over the operations and management of ANC’s International Terminal. Through phasing, the ideal company will bring the terminal up to modern standards of experience and environment that international travelers expect; upgrading the common areas, operating high quality stores, restaurants, and the VIP lounge. The operator would also assist in international air service development.