Investors see more competition in DC airspace

A rendering of a new terminal building at Washington Manassas Airport
"We're not certainly going to be a DCA or a Dulles; we don't have the facilities nor the landmass for something like that," said airport director Juan Rivera. "That's also not what we want to be when we grow up. I think it'll be a niche market. It's point-to-point."
Avports

The competition between three major airports in the Washington, D.C., area is becoming more complex, thanks to a key approval from the Federal Aviation Administration. 

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The probable addition of another commercial airport to Northern Virginia is significant because passenger volume directly impacts airport revenue.

"This is exciting not just for our community, not just for Manassas, but it's exciting for me because now I don't have to drive to BWI to take a regional flight," said Rep. Suhas Subramanyam, the Democratic representative for Virginia's 10thcongressional district.  

On Monday the FAA's Associate Administrator Dan Edwards announced a Finding of No Significant Impact and a Record of Decision, two greenlights that take the airport one step closer to allowing commercial passenger flights.

The FAA "Part 139" approval is the first in Virginia in 50 years. 

A pending final approval from the agency could open the skies to commercial passengers by spring of next year. Manassas is located about 40 miles west of downtown Washington. 

The FAA has invested about $46 million in the airport with $26 million earmarked for a new control tower. 

A million dollars in funding from the Bipartisan Infrastructure Law was tapped for runway repairs. 

Avports, which is owned by Goldman Sachs, is slated for up to $125 million in airport investments as laid out in 40-year franchise agreement with the city of Manassas 

The public private partnership is moving forward with plans for a 32,000-square-foot terminal with screening checkpoints, gates, baggage claim facilities, and concessions along with 2,000 parking spaces. 

Avports operates 15 other regional airports in destinations that include Westchester County, Los Angeles, Albany, Detroit, and the Caribbean.    

"We're not certainly going to be a DCA or a Dulles; we don't have the facilities nor the landmass for something like that," said airport director Juan Rivera. "That's also not what we want to be when we grow up. I think it'll be a niche market. It's point-to-point."

Airport officials have signaled a desire to attract low-cost carriers to help kick start traffic flows. 

"It's a game changer for the city," said Manassas Mayor Michelle Davis-Younger. "It's income, it's going to help with the tax base. It's just a positive thing all the way around."

The city issues industrial development revenue bonds through its Economic Development Authority and maintains triple-A credit ratings with Moody's Ratings and S&P Global Ratings. 

The expansion at Washington Manassas, which changed its name from Manassas Regional Airport in April, is mirrored by even greater inflows of money streaming into its competitors. 

Dulles International, which is about 22 miles north of Manassas, is flying forward with a nearly $30 billion expansion that's raising questions about possible hikes to enplanement fees that could be passed onto travelers.

The Metropolitan Washington Airports Authority runs Dulles and Reagan National Airport which is also moving forward with a $2.39 billion capital construction program. 

Regan National is subject to slot cap limits that prevents adding more flights due to its proximity to downtown Washington and several military installations. 

Dulles, Reagan, and Baltimore Washington International, which is about 30 miles east of downtown each account for about 25 million passengers each year. 

Manassas is shooting for three to four departures a day and building up to 24. 


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Virginia Infrastructure Public-private partnership Washington DC
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