Airport Business

JUN-JUL 2015

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MANAGING AIRPORTS TODAY 26 airportbusiness June/July 2015 John Wayne Airport prides itself on being proactive in providing new services and facil- ities to its customers. It was one of the first airports in the country to offer in-line bag screen- ing, a facility-wide Common Use Passenger Processing System (CUPPS), and its own central utility plant. With all these firsts to its name, it made sense for John Wayne Airport to take an early interest in the fast-developing world of Transportation Network Companies (referred to as TNCs in California). "TNCs are a new and innovative business model that provides a popular transportation option for many of our travelers," says Board of Supervisors Chairman Todd Spitzer. "It was important for us to find ways to accommodate this new technology." DEVELOPING A FAIR AND EQUITABLE POLICY Airport officials started the process with a commitment to ensuring that all of the airport's ground transportation providers were treated fairly and equitably. While the aim was to con- tinue providing passengers with a full range of ground transportation options, the airport needed to ensure the safety and security of both passengers and the airport itself. Led by the airport's Operations division, with input from Business Development, County Counsel, Public Affairs and Risk Management, John Wayne Airport began conversations with TNCs in March 2014 to get a better understanding of their operating model. As a result of these discussions, the airport began drafting a modified permit for TNCs. While the permit was under development, the airport advised the TNCs that they would need to cease passenger pickups pursuant to the County of Orange Codified Ordinance. TNCs were, however, allowed to continue drop offs during this period as long as they held a valid California Public Utilities Commission (CPUC) permit. During the permit development process, John Wayne Airport monitored the CPUC's regulatory actions and public hearings as well as TNC-related legislation that had been intro- duced in the California legislature. Once TNC insurance requirements had been established through the legislative and regulatory process- es, the airport had a basis for creating its own TNC permit. John Wayne Airport incorporated specific insurance requirements in the permit that minimized coverage gaps and overlaps, and included language to address operation- al characteristics unique to the TNC operat- ing model, including the need to "track" TNC vehicles while on airport property. The airport tracks other forms of commercial ground transportation providers with Automatic Vehicle Identification (AVI) transponders. However, airport officials realized early on that issuing AVI transponders to potentially thou- sands of TNC drivers was neither financially feasible nor administratively practical. TNC companies utilize geo-fence technology and GPS-equipped smartphones with apps that have Permits for TNCs John Wayne Airport develops a fair and equitable permit for a new form of ground transportation—the Transportation Network Company O wned and operated by the County of Orange, John Wayne Airport (code: SNA) is situated in the heart of Southern California, 35 miles south of Los Angeles and 90 miles north of San Diego. The airport serves more than 9 million passengers each year on 20+ nonstop routes throughout the United States, Canada and Mexico. SNA offers an easy-to-navigate, convenient airport experience with vital services that meet the needs of today's sophisticated travelers, including a variety of ground transportation options. By Scott Hagen

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