The airport concessionaires that make up the memberships of our associations – companies large and small, many of which are Airport Concession Disadvantaged Business Enterprises (ACDBEs) -- have been hit hard by the dramatic reduction in air travel caused by the COVID-19 pandemic over the past six months. Year-over-year, many of our member companies have seen revenues drop between 50 and 95%. These businesses are dependent on air travelers and many may not survive, or will not recover, until air passenger volumes return to pre-pandemic levels. Air passengers, on which concessionaires and airports depend, are not projected to return to pre-pandemic levels for at least 18-36 months, and possibly as long as five years.

Fact #1
It’s a Partnership…and the Passenger Experience is at Stake

The American aviation system is the most advanced in the world. Domestic air travel in the U.S. is essential to our national economy, and airports are often the leading economic engines of their cities, counties, or states. The system is built on a structure in which airlines, airports and concession companies are deeply intertwined and interdependent - each contributing to an airport’s overall operations and experience. Their combined contributions have enhanced the passenger experience many fold over the past several years. In the airport shopping and dining arena, for example, the passenger experience has evolved from no-name, limited, overpriced offerings to global brands, celebrity chefs, and local sense of place. 

Dear Speaker Pelosi, Majority Leader McConnell, Senate Minority Leader Schumer and House Minority Leader McCarthy:

As you seek to build upon the critical programs and policies established by previous legislation to bolster the nation against the devastating impacts of the COVID-19 pandemic, we write to ask your support in ensuring that airport concessionaires receive not less than $5 billion in targeted funding required for our industry to survive this national crisis. While the coronavirus has impacted all sectors of the global economy, it has had a disproportionate impact on industries associated with travel and particularly airport concessionaires who rely on airport passenger traffic. Consequently, the steep, rapid and drastic decline in airline travel has been devastating, forcing many operators early on to reduce staff, temporarily close their doors or consider shuttering their operations altogether.

Fact #1
Air Traffic Will Not Recover This Year

Enplanement projections on which any short-term relief plan for airport concessions is based, should be cautious and conservative given the current sharp level of traffic decline and complete uncertainty surrounding the duration of the COVID19 pandemic. Since the declaration of the public health emergency four months ago, airline passenger traffic fell more than 95% from 2019 (pre-pandemic) levels. During May, there was a slight recovery. According to Airlines for America (A4A), the trade association of U.S. airlines, for the week ending May 24: 

• Air travel (onboard passengers) fell 89%. 
  
• Flights are down system-wide 74%. 
  
• Domestic flights are down 68%. 
  
• International flights are down 95%, and 2020 are expected to be half of flights in 2019 
  
• Airlines have idled over 3,000 planes -- 50% of their fleets 

Dear Industry Colleagues:

RE: FINANCIAL IMPACT OF COVID‐19 ON AIRPORT CONCESSIONS

As the global impact of the Covid‐19 Pandemic continues to unfold, the impact on the specific global aviation industry has been realized with devastating results.  And while the Pandemic has sweeping global consequences, the day‐to‐day experience of living through this crisis is deeply personal. Unlike a crisis which impacts a smaller group of people and most of us witness from afar by watching the nightly news, we are each experiencing this unprecedented crisis firsthand. Each of us undoubtedly knows someone who has tested positive and struggled to overcome the virus’s ill effects.  Or worse yet, we may know someone who has succumbed to the virus.  While we grapple with the personal impact, we are called to focus on the threat this virus poses for our businesses, employees and industry.  

Dear Colleague:

​We are all witness to how the COVID‐19 pandemic is damaging parts of the economy and, unfortunately, we have front‐row seats to the on‐going devastation to the travel sector. The upheaval and uncertainty for airport restaurant and retail companies and our employees is particularly catastrophic. Airport concessionaires and their employees are an integral part of any airport’s successful operations. We are a major economic driver, offer good entry level jobs with benefits, and enhance the airport experience while contributing more than $2.5 billion in non‐aeronautical revenue to airports.  

Dear Mr. President, Speaker Pelosi and Majority Leader McConnell:

​The Airport Restaurant & Retail Association (ARRA) and Airport Minority Advisory Council (AMAC) represent a $10 billion industry made up of firms of varying sizes, including many small and local businesses which contribute $2.5 billion to airport revenue streams. Together these businesses - which include restaurants, gift shops and retail stores - employ more than 125,000 workers in U.S. airports and are a vital part of the airline passenger’s travel experience and a major revenue source on which airports depend for their operations, development and bond financing.