BAA Board Elects Officers, Passes FY 2021 Budget
BIRMINGHAM, Ala. (October 1, 2020) – At its monthly meeting on Tuesday, the Birmingham Airport Authority (BAA) Board of Directors elected officers for 2020-2021, with all current officers being re-elected for another term. The elections began with David Germany being re-elected as Chairman of the Board of Directors for the next year.
“I appreciate the vote of confidence from the Board and I am honored to continue to serve as your chair,” said David Germany, Chairman of the Birmingham Airport Authority Board of Directors. “I look forward to continued collaboration with my fellow Board members. Together, we are committed to keeping the airport moving forward.”
Officers also re-elected include Bobbie Knight as Vice Chair, Christopher Johnson as Secretary, and Darlene Wilson as Treasurer. Cathryn Smith, BAA Executive Assistant and Board Administrator, will serve as assistant secretary and Korey Campbell, BAA Vice President of Finance, will serve as assistant treasurer.
Committees were also appointed with Bill Smith serving as chair for the Business Development and PR committee, Darlene Wilson serving as chair for the Audit and Finance committee, Robert Earl Kelly serving as chair for the Human Resources committee, and newly appointed board member R. Ashby Pate serving as the committee chair for the Economic Development and Capital Projects committee.
The BAA Board of Directors also unanimously voted Tuesday to approve the BAA budget for Fiscal Year 2021 (July 1, 2020 through June 30, 2021). The budget establishes spending authority for the operations of the Birmingham Airport Authority, which manages the Birmingham-Shuttlesworth International Airport, and also sets the rates and charges paid to the Airport Authority by the airlines, in accordance with their agreement. The Birmingham Airport Authority is self-sufficient and receives no local or state tax dollars for the operations of the airport.
This fiscal year budget reflects the impact of the COVID-19 global pandemic on air travel at BHM and across the world. Total operating expenses are budgeted to be $27.2 million, an 8% reduction from the FY2020 budget and a small 3% increase in FY2020 actual expenditures. When COVID‐19 was declared a pandemic, the BAA proactively reduced costs and expenses through various actions and will continue its cost saving measures into FY2021.
Total operating revenues for FY2021 are budgeted at $33.9 million, $7.2 million less than the $41.1 million that was earned in FY2020. The projected loss in revenue is due to the impacts from the COVID-19 pandemic, which has reduced passenger traffic and other passenger revenue, such as parking, at BHM. Revenue loss will be offset by CARES Act funding received from the federal government.
Passenger enplanements and landed weight are the most important drivers in the budget. The TSA checkpoint traffic at BHM has been trending in line or slightly ahead of the rest of the nation. BAA has conservatively forecasted enplanements for FY2021 at 800,754 passengers, or 48% lower than CY2019. CY2020 enplanements are 58% below CY2019. Landed weight is forecasted at 1,204,200,000, or 40% lower than CY2019.
“Passenger enplanements and landed weight are moving in the right direction despite the challenges of COVID-19,” said Ronald F. Mathieu, Birmingham Airport Authority President and CEO. “We proactively took several actions including restructuring our debt and implementing austerity measures to reduce our expenses, which resulted in having more days cash on hand this fiscal year. So even with the projected decrease in passenger traffic and revenue, the Authority expects to remain fiscally sound.”
About Birmingham-Shuttlesworth International Airport
As Alabama’s largest commercial airport serving nearly 3 million passengers in 2019, Birmingham-Shuttlesworth International Airport has served a gateway to the sky for more than 85 years. Governed by the Birmingham Airport Authority, the airport continues to be a catalyst for growth and economic development for the entire region. For more information, visit flybirmingham.com or follow BHM on Facebook, Twitter, Instagram, and LinkedIn.