AB Editor's Log: Reporting from the ACI-NA conference in San Diego

During a press briefing at the Airports Council International-North America convention here, outgoing chair and director of the San Antonio airport system Frank Miller talked of the association’s “Operation Moses” campaign, which in essence is a move to get the federal government to “set our airports free.” Free of over-regulation; free to be more independent; free to operate as a business. You see, it’s all the rage in much of the rest of the world.

It was a good summation of the message conveyed by ACI-NA president Greg Principato to open the conference: “We meet here in this beautiful city at a defining moment. A defining moment for our countries and their economies. And a defining moment for our industry.”

“As I travel and see what is being done across the globe I am struck and heartened by the extent to which the imperative of taking full advantage of the airport economic engine is accepted wisdom in so many places. Governments all over the world are working to create conditions for meaningful investment in infrastructure. Airlines in many parts of the world engage in this process as partners, working with airport officials because they know investment in airport infrastructure is critical to their being able to profitably perform their function in this global economic puzzle.”

One of the great things in this conversation, historically, is that the U.S. has traditionally led the way in realizing the potential of aviation, be it for local development or a national system or international standards. The U.S. market, it can be said, is a more mature market, while places like Latin America, Asia, and the Middle East are rapidly expanding and leading the way in terms of new technologies and new ways of doing business. Moving from behind the curve to ahead of it leads to innovation. Kind of the natural order of things.

In the U.S. right now we seem to be so screwed up on a partisan basis that we’re letting our forefront position globally to falter, and it’s happening in aviation. Relates Principato, who is a man who travels the corners of the global airport system, “What is happening around the world is astounding. But there is a big glaring exception, right here in the United States. Rather than understand the need to invest in infrastructure, the U.S. government actually stands in the way of airports and local communities who want and need to finance infrastructure. And, in this, they are aided and abetted by many in the aviation industry, sometimes directly as in the case of airlines, and sometimes indirectly as in the case of many other interests, including some in general aviation.”

“Here is what is so amazing about this dynamic. In the past month, I have heard speeches by such people as President Obama, the president of an airline association, and the president of a general aviation association. All decry the current state of aviation infrastructure in America. The leader of the airline association calls for a National Airline Policy, the leader of the general aviation group calls for a National Aviation Policy. President Obama and my colleagues from these organizations all talk about how we are being left behind while places like China, Dubai, and Abu Dhabi build and expand and modernize airports.”

Perhaps the most important point of Principato’s message is this: “They are all right, we are falling behind. In a global industry, with global supply chains and global patterns of travel, it does matter that we are being left behind.”

The most poignant point of Greg’s presentation may be this: “The airports of this country are held back because the U.S. government regulates the financial lives of U.S. airports through a Nixon-era regulatory framework that pre-dates airline deregulation and has long since lost its relevance. And we are going to lose the international race until that changes.”

Amen.

For us old-timers who lived the ‘60s and ‘70s, we remember the challenges of hyper-inflation, stagnation, high unemployment, etc. Then came Reagan and the recognition that a new approach might lead the way. It worked then. Principato is right – it can work now.

Thanks for reading. jfi