Angela Spear, director of the Alaska International Airport System, told the Alaska Senate Finance Subcommittee on March 12, 2025, that the airport system recently completed a bond refunding, is reorganizing operations to centralize development work, and expects to press ahead with a slate of capital projects at Anchorage and Fairbanks.

Spear told the committee the Alaska International Airport System comprises Ted Stevens Anchorage International Airport, Fairbanks International Airport and the Lake Hood Seaplane Base and operates under a 10-year agreement with 33 signatory airline carriers. “We have an organized airline airport affairs committee,” she said during the presentation to the subcommittee.

The presentation said bonds were issued through the state bond committee (presentation figures cited $1,000,000,000 issued and $279,700,000 outstanding), and that the system refunded a 2016 series of bonds this winter to achieve about $8.9 million in net present value savings (roughly 6.5%), which the director said has ‘‘flattened’’ debt service over the coming years. Spear also reported a Moody’s credit rating of A3, stable, and said the airport system has processed about $104 million in pandemic relief funds since February 2020.

Why it matters: refinancing and debt schedules affect future airport rates and the system’s ability to fund capital projects without shifting costs to carriers or passengers. The committee chair asked the airport to return with detailed numbers about the refunding and amortization; Spear and staff said they would provide that information to the committee.

Reorganization and staffing: Spear described a reorganization that moves leasing and development functions into the system office while keeping staff physically at each airport to preserve customer service. She said the change was done revenue-neutral by reallocating existing positions, though two new system roles were created: an IT lead and an HR liaison. “We’re going to have our airport managers be operationally focused,” she said, and development and leasing will report through the system office to align planning and land use across both airports.

Spear and other presenters told senators the airports have used outreach, mission-critical incentive pay and a recent negotiated contractual increase to stabilize maintenance staffing but cannot entirely match private-sector pay. The presentation identified accounting technician positions as especially difficult to fill and said the airport is using some contractor audit support while reducing outsourced accounting support from last year.

Operating revenue and budget posture: The presentation broke down operating revenue sources: about 58% from airfield fees (landing and carrier fees), 12% from concessions, 12% from terminal rents, plus parking, land rentals and passenger facility charges. Operating expenses were described as roughly 26% field and equipment maintenance, additional facilities costs that combined with maintenance approach half of operating expenses, 15% debt service, 15% administration, 14% safety (police and fire) and 6% airport operations. Spear said the system did not ask for an overall increase in the operating budget for the current fiscal year and moved some positions among components to balance costs.

Capital program and projects: Spear and development staff outlined a robust capital program focused largely on “horizontal” work—pavement repair, ramp and tug-road work, water-main improvements and purchases such as firefighting trucks. Specific developments at Anchorage highlighted in the presentation included continued FedEx apron and regional facility buildout; an Alaska Cargo and Cold Storage warehousing project; a pending Atlas land-lease application for up to 67 acres for warehousing and hardstand parking; Anchorage Airport Partners’ long-term lease work; and Northlink Aviation’s construction expected to reach substantial completion in 2026.

Fairbanks items included the design work for a new DNR/BLM firefighting services complex and parking expansion work in preliminary design. The presentation also listed a Part 150 noise compatibility study for Anchorage (a federally funded public process), a flywheel generator project to improve electrical resilience, a sustainable aviation fuel feasibility study funded by a federal grant, and solar feasibility studies for up to 10 megawatts at each airport.

Passenger and cargo trends: System staff said combined passenger activity across the two international airports was tracking near or slightly above prior-year levels, with cumulative passenger enplanements up about 2.9% year to date in the fiscal year referenced in the slides. Cargo growth was described as ‘‘robust,’’ with domestic cargo growth driven in part by Amazon Air and a large spike in international cargo activity beginning during the pandemic.

Parking and master plan: Committee members asked whether the airport is planning an expansion of paid parking at Ted Stevens Anchorage International. Terry Linzeth, development manager, said the system is finishing a master plan that identifies possible land-side locations for additional parking infrastructure; the choice between a parking garage and surface lots depends on demand and cost. Linzeth said municipal planning staff were represented on the master plan committee and that the airport will coordinate with the Municipality of Anchorage and the regional planning body (AMATS) before moving forward on projects.

Winter operations and safety work: Spear said the system engaged a contractor to evaluate winter operations after difficult snow and icing events in recent winters; the contractor observed October events and compared practices to other cold-weather airports. Spear said the airports expect to report recommendations to the committee next year and are pursuing equipment and process changes accordingly.

Follow-ups and committee directions: Senators asked for detailed backup on the bond refunding and amortization extension; the airport agreed to return the numbers. The committee also requested updates on master-plan outcomes (including parking) and clarified that any capital project advanced without federal reimbursement could be temporarily covered by airport cash flow but that permanently lost grants would require re-evaluation of project priorities with airline rate payers.

Ending note: Spear closed the AIAS portion of the briefing by saying the reorganization and capital program aim to align development, improve accounting and IT continuity, and maintain operational focus during winter conditions; the committee scheduled follow-up information on bond amortization, Angoon property acquisition status and other items requested during the hearing.