Concord Journal
Thursday, March 17, 2005

Commission hears state of Hanscom Field

By Barbara Forster

The financial state of L.G. Hanscom Field was reviewed by the Hanscom
Field Advisory Commission on Tuesday, March 15.

Barbara Patzner, Hanscom director, was on hand for the annual
presentation that looks at aircraft and fiscal activity along with completed
projects for the previous year. The report also includes budget projections
for the upcoming year as well as proposed capitol projects.

--Air side activity

According to the report, the total number of aircraft operations for
2004 is 180,804, a 7.2 percent decrease as compared to 2003. The year 1970
is considered to be the peak year for activity with more than 300,000
operations. Total operations have been below 200,000 eight times in the past
11 years.

However, all figures include "fly overs," planes that go through
Hanscom air space but do not land at the airport. Planes are considered to
be in Hanscom air space if they are below 2,300 feet (that definition
changed about 10 years ago when more air space was assigned to Logan). Each
fly over counts as two operations; one in, one out.

Exactly how many fly overs occur each year is unknown. "It's not
significant," said David Bayley, manager, Federal Aviation Administration,
who suggested the number is less than .07 percent.

What is known is that the civilian portion of the 2004 aircraft
operations continued to account for more than 99 percent of total aviation
activity.

Although they represent 68.9 percent of total aircraft activity, single
engine piston planes decreased 12.7 percent in 2004 from 2003. Twin engine
activity remained stable with a 1.4 percent increase compared to 2003.

Turboprop planes, which are 5.6 percent of total activity, increased
12.1 percent due to a 45 percent increase in total operations by the
commuter airlines. Boston-Maine Airways, which had limited service in 2002
and 2003, returned to the airport in 2004, overlapping with Shuttle America
for two months.

The bulk of new growth at the airport, however, belongs to civilian
jets. In 2004 jet activity increased 8.9 percent, compared to 2003, and
represents 18.3 percent of total activity.

--Money, money, money

Last year's revenues totaled more than $5.9 million, a 44.3 percent
increase from 2003. Operating expenses were up 12.3 compared to 2002.

After only two years of a balanced budget and Hanscom Field's lowest
recorded deficit ever in 2002 -$880,000 - the airport is again in the red
with a $2-million-plus deficit. Fiscal 2003 closed with a $546,000 deficit;
amortization upped the amount to the millions-of-dollars range.

Escalating security and insurance related costs following 9-11 and a
soft economy are cited as culprits but changing accounting methods also
caused the higher deficit. According to Patzner, Massport accountants
"revamped" how insurance costs are allocated. From now on each entity within
the agency is responsible for their own costs. For Hanscom, that change
doubles last year's expense from $497,000 to $935,000.

Security has more than doubled, jumping to $940,000 from $442,000. In
2003 and 2004, Hanscom paid for State Police at the "detail" rate. Starting
this year, the police have a satellite office at the airport, so Hanscom
picks up full salaries and benefits.

"The director of security (who is at Logan) made the decision," said
Patzner. "He felt this was needed to be more secure at Hanscom."

Several approaches will be used to help reduce the deficit. Controlling
costs heads the list, but expanding sources of revenue is another. That
includes raising rates and charges and/or implementing new ones.
Development, which includes new hangar space, is another. However, the
report also states that "limited commercial and/or air taxi services help
increase revenue, and in the past year, Massport has been supportive of
companies that have expressed interest in operating out of Hanscom."

"We support commuters," said Patzner, "but we are not offering
financial support."

Although the report indicates that the airport generates about $110.6
million in economic benefits for the surrounding region, that figure could
change. The last economic analysis was done in 2000. Massport has hired a
consultant to prepare an "updated" analysis for all its facilities.

Marty Pepper-Aisenberg of Save Our Heritage stated that the current
figure is overstated by approximately $50 million, because Massport
incorrectly used the formula created by the Federal Aviation Administration
in 1992 to determined the economic benefits of general aviation airports.

--And we did...

Phase 1 of the project to remove vegetation near runway approach
surfaces began last January. Most of the work was done while the ground was
frozen; the remainder was completed in the spring and fall.

"It's critical now to maintain those areas so that we don't have to go
back to cut again," said Patzner.

Phase 2 involves the Bedford Town Forest. Patzner reported that
Massport is talking with the Federal Aviation Administration to accept
different requirements for this area that would dramatically affect how many
trees needed to be removed.

"An angle of 20 to 1 is beneficial," said Sheldon Moll, Bedford
selectman. "It would mean cutting down only dead trees."

Updating the noise monitoring system is in the works, along with paving
repairs to apron/taxiway areas.

Patzner also noted that the Environmental Status and Planning Report is
no longer considered a capitol item but is part of Hanscom's operating
budget. The accountants, she said, decided, "studies and things of that
nature don't belong in capitol projects."

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