HELPING OUR CLIENTS SOLVE PROBLEMS

Here are some of the ways we have helped our clients face the challenges of a changing industry environment:

Airline Lease Negotiations: We are advising a client on negotiating strategies and financing alternatives associated with the buyout of long-term passenger terminal leases with major airlines, via the tender or defeasance of associated debt. This strategy will enable our client to increase its control over airport gates.

Financial Strategies: We helped a client develop financial strategies to offset the significant financial impacts of 9/11 and insure that its debt coverage was met, including participation in the FAA's PFC loan program, the issuance of debt to reimburse recent capital expenditures and the cash defeasance of certain expenses.

Rates and Charges: We developed and implemented a successful strategy to finalize signatory airline rates and charges reconciliations that had sat unresolved for six years. In addition, we negotiated the payment of 3-month security deposits by the signatory airlines, including one that had just emerged from bankruptcy.

Strategic Advice on PFCs and Federal Grants: We prepared a PFC amendment and managed the application process, including air carrier consultations, that enabled our client to increase its PFC from $3 to $4.50, advised on the allocation of AIP grants, and devised strategies to maximize AIP discretionary and MAP grants.

Development Alternatives and Best Practices: We prepared a report to a client's Board of Directors which identified passenger terminal development alternatives focused on industry best practices in lease terms, gate control and facility usage standards and recommended leasing structures that optimized the airport's ability to manage its facilities and generate an acceptable financial return.

Risk assessment analysis: We created a customized Risk Assessment model that helped a client examine the possible financial impacts of an Iraq War and devised a contingency financial plan to reduce costs and maintain required debt service coverage.

Restructuring of CAFR Budget and Disclosure Statements: We restructured a large hub airport's financial report and disclosure statements to be consistent with industry best practices. Both the CAFR and the Budget subsequently received GFOA awards for excellence on their first submissions.

Rating Agency Strategy: We took the lead role in formulating the rating agency strategy for a large hub airport including the structure and assembly of all informational materials as well as a detailed analysis of one of its principal carriers which was about to file Chapter 11. The airport achieved ratings that are among the highest in the US.

Comparative Proposal Analysis: We prepared a detailed financial and business evaluation of three proposals for the development of a 110-acre cargo site.

Financial, Accounting and Management System Proposal Evaluation: We assisted in evaluating and risk assessing proposals to design, implement and provide a 'turnkey' management information system for an airport CFO.

Parking Management Contract Evaluation: We reviewed and analyzed proposals received by a large hub airport for its public and employee parking operations.

Debt Policy Formulation: We worked with an airport to develop guidelines for the issuance of revenue bonds and other forms of indebtedness to finance airport capital improvements. The policies set forth certain financial management practices in capital budgeting to enhance the airport's ability to manage future debt issuance.

Financial Modeling: We developed a long-term financial model for an airport client that included the evaluation of alternative rates and charges approaches in conjunction with the airport's on-going master lease negotiations.

Refunding Analysis: We evaluated refunding options for an airport client's outstanding long term debt including the reclassification of AMT bonds to lower-cost non-AMT debt. The resulting refunding transaction produced 11% present value savings.