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
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.
© 1997-2011, Frasca & Associates, L.L.C. All rights reserved.