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KENTUCKY STATEWIDE AVIATION SYSTEM PLAN

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4 Aviation Trends and Issues

Recenttrends,bothnationalandstatewide,areimportantconsiderationsinthedevelopmentofanaviationsystemplan,asthesetrendscaninfluencethesupplyanddemandforaviationservices.Fluctuatingtrendsregardingaviationusageandeconomicswingsresultingfromthenation’sbusinesscycleandpreviousperiodsofrecordhighoilpriceshaveallimpactedaviationdemand.ManyofthesenationaltrendsarereflectedwithinKentucky,alongwithaviationdevelopmentsthatareuniquetothestate.

Thischapterexaminestrendsrelatingtogeneralaviation,aircargo,multimodalissues,andtechnologythatareexpectedtohaveaninfluenceonaviationinKentucky.Notethatthischapterisbasedonthebestavailabledataasofthefirstquarterof2016.

General Aviation Trends Thereareanumberofcomponentsthatcanbeexaminedtogainanunderstandingofgeneralaviation(GA)trends.KeyamongthesearethenumberandtypeofnewGAaircraftenteringthefleet,thenumberofactiveGAaircraft,andthenumberofpilotsflyingintheU.S.ThefollowingsectionsexamineeachoftheseaspectsofGA,startingwithnewGAaircraftproducedbyyearsince1975.TheanalysisofnewaircraftprovidesanoverviewofhowGAhasperformedoverthelongterm,whiletheassessmentofactiveGAaircraftandpilotsfocusesonthetrendssince2010.

Inadditiontotheseactivitytrends,thischapterwillalsosummarizewhatisbeingdonetoaddressleadinaviationfuel,andhowthatcouldimpactGAactivity.

NewGeneralAviationAircraftOneindicatorofthehowtheGAindustryisperformingisthenumberofaircraftdeliveredperyearandtheirtotalvalue.Figure4‐1showsthisdatastartingin1975.Aswithanyindustry,GAissubjecttotheupsanddownsofthebusinesscycle.However,GAisanindustrythatisamongthefirsttosuffertheeffectsofaneconomicdownturnandthelasttorecoverfromit.ThiscanclearlybeseeninFigure4‐1,whereaircraftshipmentscanbeseentailingoffbeforeeachmajorU.S.recessionandnotrecoveringuntilwellaftertherecessionends.

Thenumberofaircraftsoldwasdominatedbypistonaircraftfrom1975untiltheearly1980s,whenincreasingproductliabilitycostsresultedinacontractionofthemanufacturingoftheseaircraft.AprimeexampleofthismanufacturingretrenchmentisCessnaAircraftCompany,whichceasedproductionofallitssingle‐enginepistonaircraftin1986,primarilyduetoliabilityconcerns.Bythemid‐1990s,deliveriesofsingle‐enginepistonaircrafthadfallenfromits1978peakby97percent,andwasnowonparwiththenumberofturbineaircraftshipped.

In1994,legislationwentintoeffectthatshieldedGAmanufacturersfromlawsuitsonaircraftandaviationpartsthatweremorethan18yearsold.Withthisprotectioninplace,GAshipmentsofbothpistonandturbineGAaircraftbeganaslowbutsteadyrise,withpistonaircraftgrowthoutpacingturbineaircraft.Thislasteduntilthetechbubbleburstinearly2001,followedbytheterroristattacksofSeptember11th.GAmanufacturingrecoveredbriefly,butthenwashitbytherecessionprecipitatedbythehousingcollapsethatstartedinDecember2007.

Aviation Trends and Issues


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Thesaleofturbineaircrafthasfollowedapatternsimilartothatofpistonaircraftonlyatsmallervolumes,mirroringtheriseandfallofthebusinesscycle.Beginninginthemid‐1990s,thenumberofjetaircraftsoldbeganexceedingthenumberofturbopropaircraftsold,resultinginasignificantriseinthevalueofaircraftsold.Theincreaseduseofbusinessaviation,especiallythegrowthoffractionalownershipthroughcompaniessuchasNetJetsandFlightOptions,hashelpedspurthegrowthinturbineaircraftsales.

Figure4‐1U.S.AircraftShippedandSold

Source:2014GeneralAviationStatisticalDatabook&2015IndustryOutlook.

Itisclearthatthenumberofaircraftshippedannuallyhasnotrecoveredtothelevelsseenpriortothe2008recession.TheslowrecoveryfromtherecentrecessionisamajorfactordrivingrecenttrendsinGA,asthefollowingsectionswillalsodemonstrate.



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ActiveGeneralAviationAircraftThenumberofnewaircraftenteringthefleetisonlyapartialindicatorofthehealthoftheGAindustry.Thelevelofactivityofexistingaircraftalsoprovidesasignofhowtheindustryisperforming.TheFAAtracksthenumberofactiveaircraftannually,whichisdefinedasanaircraftthatisregisteredandflewforatleastonehourduringtheyear.TheFAArecordsthedatausingthefollowingninecategoriesofgeneralaviationaircraft.

Single‐EnginePiston–Thesearefixed‐wingaircraftpoweredbyasinglepistonengine. Multi‐EnginePiston–Thesearefixed‐wingaircraft,generallypoweredbytwo,butsometimes

more,pistonengines. Turboprop–Thesearefixed‐wingaircraftpoweredbyoneormoreturbineenginesthatdrive

oneormorepropellers. Turbojet–Thesearefixed‐wingaircraftpoweredbyoneormorejetengines. PistonRotorcraft–Thesearesingle‐enginerotorcraft,eitherhelicoptersorgyroplanes,that

arepoweredbyapistonengine. TurbineRotorcraft–Thesearerotorcraft,eitherhelicoptersorgyroplanes,thatarepowered

byoneormoreturbineengines. Experimental–Generally,theseaircraft,sometimescalledkit‐builtaircraft,areaircraftthat

theoriginalownerbuiltfromkitssuppliedbyamanufacturer. Sport–Thesearesingle‐enginepiston‐poweredaircraftthatmeettherequirementsofthe

LightSportAircraftregulation.Theyarelimitedinanumberofareas,includingweightandnumberofseats.

Other–Thiscategoryofaircraftcapturesanassortmentofflyingmachinesthatdonotfitintotheothercategories.Thisincludesaircraftsuchasgliders,airships,andballoons.

AsshowninFigure4‐2,thetotalnumberofactiveaircraftintheU.S.hasdeclinedsince2010byapproximately20,000aircraft,orabout9percentoftheGAfleet.Thepistonfleetislargelyresponsiblefordrivingthisdecline.Bothsingle‐andmulti‐enginepistonaircraftdeclinedduringthisperiod,withsingle‐enginepistonaircraftaccountingforthelossofmorethan14,000aircraft,orabout10percentofthesingle‐enginepistonfleet.Pistonrotorcraftalsofellbyabout10percentovertheperiod.

Intermsofabsolutenumbers,thehomebuiltmarketcontributedthelargestincreasebyaddingmorethan1,600aircraftsince2010,whichisa7percentincrease.Allturbine‐poweredaircraftexhibitedgrowthsince2010,withturbojetsleadingthewaywith9percentgrowth,followedbyturbinerotorcraftat7percentgrowth.Turbopropsincreasedbyamodest2percentduringtheperiod.Thisgrowthinturbineaircraftactivityisadditionalevidenceoftheincreasinguseofbusinessaircraft,whichrelyheavilyonturbineaircraft.

OneadjustmentthatisobviousinFigure4‐2isachangeintheclassificationofexperimentallightsportaircraft.Priorto2012,theseaircraftweregroupedunderthesportcategory.Startingin2012,theywereswitchedtotheexperimentalcategory,asreflectedinthejumpthatexperimentalaircraftexperiencedin2012andthedropthatsportaircraftshowin2012.

Thereareanumberoffactorsbehindthedeclineinactiveaircraft.Asdiscussedpreviously,thenumberofnewaircraftproducedissignificantlybelowlevelsseenpriortothelastrecession,sotheinjectionofnewaircrafttotheGAfleetisrelativelylowandhascontributedtothedeclineinaircraftactivity.



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ThesetrendsarereflectedinbasedaircraftinKentucky.From2005to2015,basedaircraftatKentucky’sairportshavedroppedfrom1,976to1,693,anaverageannualrateofdeclineof1.7percent.1

Figure4‐2U.S.ActiveAircraft,2010to2015

Note:ClassificationofExperimentalLightSportAircraftchangedfromSportAircrafttoExperimentalin2012.

Source:FAAAerospaceForecastFY2016‐2036.

PilotPopulationThepilotpopulationisaprimedriverofGAactivity.Withoutpilots,planescannotflyanddemandforassociatedaviationservices,foundatmanyGAairports,suffers.PilotcertificatesfallintooneofeightclassificationsbytheFAA:

StudentPilot–Pilotsintraining.Studentpilotsmayflyaircraftsolowhenproperlyauthorizedbyaflightinstructor.Unlikeotherpilotcertificates,studentpilotcertificatesexpire60monthsaftertheyareissuedforthoseunder40and24monthsaftertheyareissuedforthoseover40.

RecreationalPilot–Certifiedtoflyaircraftwithupto180horsepowerandfourseats,butmayonlycarryonepassenger.

SportPilot–Certifiedtoflylightsportaircraft.Limitedtotwoseatsandday‐timeflyingonly. PrivatePilot–Certifiedtoflyaircraft,aslongasitisnotforcompensationorhire.

1 Based aircraft reported by the FAA’s Terminal Area Forecast for years 2005 and 2015.

223,370 220,453209,034

199,927 204,408 203,880

0

50,000

100,000

150,000

200,000

250,000

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

2010 2011 2012 2013 2014 2015

Total Aircraft Multi‐Engine Piston Turboprop

Turbojet Piston Rotorcraft Turbine Rotorcraft

Experimental Sport Other

Single‐Engine Piston

Number of Aircraft by Type To

tal Number o

f Aircraft



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CommercialPilot–Certifiedtoflyforcompensationorhire.Requiredtohave250hoursofflighttime.

AirlineTransportPilot–Certificationrequiredtoflyaspilotincommandorfirstofficerforascheduledairline.Requiredtohave1,500hoursofflighttime.

RotorcraftPilot–Pilotscertifiedtoflyhelicoptersandgyrocopters.Thiscategoryincludesthosepeoplethatarecertifiedtoflyonlyrotorcraft.Pilotsthatarecertifiedtoflybothfixedwingandrotorcraftareincludedintheappropriatepreviouslymentionedcategories.

GliderPilot–Pilotscertifiedtoflyglidersandsailplanes.Thiscategoryincludesthosepeoplethatarecertifiedtoflyonlygliders.Pilotsthatarecertifiedtoflyaircraftinadditiontoglidersareincludedintheappropriatepreviouslymentionedcategories.

Figure4‐3showsthatthetotalnumberofpilotsintheU.S.hasfallenbynearly38,000since2010,despitetheobviousgrowthinairlinetransportpilotsduringthatperiod.Thelossofprivateandcommercialpilotsaretheprimaryfactorscontributingtothedeclineintheoverallpilotpopulation.

Thedropincommercialpilots,alongwiththeincreaseinairlinetransportpilots,ispartlyexplainedbyCongressionalactionthatincreasedtheminimumqualificationsrequiredforfirstofficers.TheAirlineSafetyandFederalAviationAdministrationExtensionActof2010stipulatedthatafterAugust2013,onlyairlinetransportpilotscouldserveasflightcrewmembersforscheduledairlineflights(part121).Priortothislegislation,firstofficersonlyneededtopossessacommercialpilotcertificate.

Figure4‐3U.S.PilotTrends,2010to2015

Source:FAAAerospaceForecastFY2016‐2036.

627,588 617,128 610,576 599,086 593,499 590,039

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

250,000

2010 2011 2012 2013 2014 2015

Total Pilots Student Pilots Recreational Pilots

Sport Pilots Private Pilots Commercial Pilots

Airline Transport Pilots Rotorcraft Pilots Glider Pilots

Number of Pilots by Category

Total N

umber o

f Pilots



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Therelativegrowthinsportpilots,risingnearly50percentsince2010,haslittleimpactontheoverallpilotpopulationbecauseofthetotalnumberofsportpilotsisnotsignificantwhencomparedtothenumberofprivateandcommercialpilots.Thesameistrueforrotorcraftpilots,whichincreasedbyslightlymorethan1percentduringtheperiod.Likewise,thesmallnumberofrecreationalandgliderpilotsmeantthattheirdeclinesof10percentand9percent,respectively,hadlittleimpactontheoverallpilotnumbers.Onebrightspotsince2010istheriseinstudentpilotnumbers,whichincreasedby3percentsince2010.Sincestudentpilotsaresteppingstonestohigherpilotratings,growthinstudentpilotsoffersthepromiseoffuturegrowthinotherpilotratings.

Anobviousfactorinthedownwardtrendofpilotsisthecostassociatedwithbecomingapilot.Bothinrelativeandabsoluteterms,thecostofflighttraininghasincreasedovertheyears.Inabsoluteterms,thecostofflighttraininghasrisenalongwiththepriceoftrainingaircraft,fuel,insurance,andotherexpensesofflying.Inrelativeterms,thecostofflyinghasrisenaslessexpensivealternativeshavebecomemorereadilyavailable,asnotedinastudybyHarryR.ClementsoftheWichitaStateUniversityDepartmentofEconomics.

ThisstudyshowedthatGAactivitydecreasesascommercialairlinetravelhasbecomelessexpensiveandbecomemoreaccessible.Sincethederegulationoftheairlineindustryin1978,thestudyshowedthata10percentincreaseinairlinetraveldrovedownGAtravelby3percent,indicatingthatoneisbeingsubstitutedfortheother.ThestudyalsoshowedthatincreasingairspaceregulationhasresultedinhigherGAtrainingcosts,whichservetodiscourageentryintotheGAindustry.

Finally,thestudyfoundthatGAactivitydecreaseswhenothercompetingformsofentertainment(thattendtobelessexpensive)increase,suchasskydiving.Clementsspeculatedthatmotorcycling,scubadiving,mountainclimbing,andautoracingofferalternativestoflyingandhavestimulatedthedeclineintheprivatepilotpopulation.

Takentogether,allofthesefactorsserveasbarrierstoentrytoGA,andarecontributingfactorstothedeclineintheprivatepilotpopulation.

PilotpopulationtrendswithinKentuckymirrormanyofthoseseenatthenationallevel.OneexceptionisKentucky’sgrowthinstudentpilots,supportedinpartbytheaviationprogramatEasternKentuckyUniversity,whichisdescribedinmoredetailinChapter5:UniqueAspectsofAviationinKentucky.ThisgrowthinstudentpilotshashelpedmitigatethedeclineofthetotalpilotpopulationinKentucky.

FutureofAvgasAviationgasoline,oravgas,istheprimaryaviationfuelusedbypiston‐poweredaircraft.Itisnotableforbeingtheonlyremainingtransportationfuelstillcontaininglead,whichisusedtoprotectagainstenginedetonation,alsoknownasknocking.Itisgenerallyacknowledgedthatavgaswillnotbeavailableinthefuture,foranumberofreasons.Forstarters,theonlywesternmanufactureroftheleadadditiveisInnospec,aU.S.specialtychemicalcompanythatcouldchoosetoceaseproductionforliability,financial,orotherreasons.Anotherfactorispressurefromenvironmentalists,whowanttoeliminatetheuseofleadedfuel.TheyarelobbyingtheU.S.EnvironmentalProtectionAgency(EPA)toeliminatetheuseofleadinavgasthroughregulation.



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Inlightofthesefactors,thegeneralaviationindustryiscollaboratingwiththeFAAtodevelopareplacementforavgas.However,thetechnicalandregulatoryrequirements,aswellastheprocessofapproval,haveproventobetimeconsuming,withexpertsin2012estimatingthatareplacementfuelwouldnotbeavailablecommerciallyuntil2023.

Effortstofindareplacementforavgasinvolveextensiveresearchbyfuelcompaniesandcollaborationbetweenaviationstakeholders–suchasaircraftmanufacturers,fuelrefiners,andaviationassociations–andtheFAAandEPA.AkeycomponentofthiscollaborationtakestheformofthePistonAviationFuelsInitiative(PAFI),anindustry‐governmentinitiativestartedin2013.PAFIisworkingtowarddevelopingaviableunleadedaviationfuelby2018.AttheendofMarch2016,thePAFIprocessselectedtwofuelsoutof17submittedinthefirstphaseoftesting.ShellandSwiftFuelseachsubmittedoneofthetwoselectedfuels,whichwillgoontoasecondphaseoftestingexpectedtolastuntil2018.

EventhoughtheGAindustryismovingtowardalead‐freefuelsolution,thelongtimelineanduncertaintyoftheoutcomeactasadditionalbarrierstoentryforwould‐beaviators.

SummaryAnanalysisofGAparametersshowsthatrecenttrendshavenotbeenpositive.Newaircraftdeliveries,thenumberofactiveaircraft,andtheoverallpilotpopulationhavesufferedfromtherecessionthatbeganinlate2007andhavenotrecoveredtopre‐recessionlevels.Thehighcostofaviationhascontributedtothedeclineinaviationactivity.UncertaintyinregardstoleadedaviationfuelanditspossiblereplacementhindersthegrowthoftheportionofGAthatdependsuponleadedfuel.WhiletherearesomesegmentsofGAthathaveshownpromise,suchasthebusinessuseofGAaircraftandthenichemarketsofexperimentalaircraft,andthesportpilotsector,theoveralltrendinGAislikelytobenegativeforatleasttheshortterm,ifnotlonger.

Atthestatelevel,Kentuckyislikelytofeeltheimpactsofthesetrends.However,Kentuckydoeshaveanumberofpositiveattributesintermsofaviation.RecentinitiativeshavehelpedboostthestudentpilotpopulationinKentucky,thankstoaviationeducationeffortsdescribedinChapter5.Additionally,aerospaceproductsmanufacturedinKentuckyhavecontinuedtobethenumberoneexportforseveralyears,surpassingevenautomobilesandautomotiveparts.In2016,Kentucky’saerospacebusinessesexported$10.8billionworthofproducts.

Air Cargo Trends Aircargoplaysavitalroleinglobalcommerce,andKentucky’sairportsplayamajorroleinfacilitatingtheflowofaircargoonglobal,national,andregionalscales.AircargoactivityissupportedatKentucky’scommercialserviceairportsintheformofbellycargocarriedonpassengerairlinesandexpressfreightcarriedbyintegratedexpresscarriers.InadditiontothesecommercialserviceairportstherearealsoseveralGAairportswithinKentuckythatsupportaircargoactivity.



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StatewideTrendsKentuckyishometotwomajoraircargohubsoperatedbyintegratedexpresscarriersDHLandUPS.DHLoperatesitsNorthAmericanhubatCincinnati/NorthernKentuckyInternationalAirport(CVG),whileUPSoperatesits‘Worldport’hubatLouisvilleInternationalAirport(SDF).Thesehubsserveassortingfacilitiesthathandlesignificantvolumesofaircargothroughput,asmallfractionofwhichoriginatesinorisdestinedforKentucky.Kentuckybenefitsnotonlyfromthedirecteconomicactivitythatthehubsprovide,butalsofromthegrowthinthewarehousingand

distributionindustrythathasbeenspurredbythepresenceofthesehubs.

SincethelaunchofUPS’NextDayAirServicein1982,UPS’sWorldporthasundergonenumerousexpansionstobecomethe5.2millionsquarefootprocessingfacilitythatitistoday.Itisthelargestfullyautomatedpackagehandlingfacilityinthe

world,capableofsortingupto416,000packagesanhour.Theoperationcurrentlyturnsoverapproximately130aircraftdaily,processinganaverageof1.6millionpackagesperdaywitharecordofnearly5millionpackagesonitspeakdayof2013.Thefacilityhas70aircraftdocksand155milesofconveyorsthattransportparcelsfromaroundtheworld.2ThepresenceofUPSdrivesLouisvilleInternationalAirport’splaceamongtheworld’stopaircargoairports,whichin2015ranksthirdinNorthAmericaandinthetop‐tenglobally.Theairporthandlednearly2.6milliontonsin2015,representingagrowthof3percentover2014and19percentover2008.3

In2009,DHLadjusteditsbusinessmodel,ceasingitsU.S.domesticdeliveryservicetofocussolelyoninternationalshipments,andsubsequentlyrelocateditshubfromWilmington,Ohio,toCincinnati/NorthernKentuckyInternationalAirport.DHL’snewNorthAmericanhubatCVGservesasaninternationalgatewayforshippingbetweenNorthAmericaandglobalmarkets.Itisoneofthreeglobal“SuperHubs”fromwhichDHLExpressserves220countries.SinceDHL’sarrival,totalcargotonnageatCincinnati/NorthernKentuckyInternationalhasincreasedfrom40,000tonsin2008toover800,000tonsin2015,representinganincreaseof1,910percent.From2014to2015,CVG’scargotonnagegrewby12percent,ranking10thinNorthAmerica.4Since2009,DHLhasinvested$105millioninitshuband

2 http://www.pressroom.ups.com/Fact+Sheets/UPS+Worldport+Facts 3 http://www.aci‐na.org/content/airport‐traffic‐reports 4 http://www.aci‐na.org/content/airport‐traffic‐reports



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planstoinvestanadditional$46milliontocontinueincreasingoperationalcapacitytomeetdemand,whichislargelydrivenbygrowthine‐commerce.5,6

CVG’saircargotonnageispoisedtocontinuegrowingasAmazonannouncedinearly2017itsplanstobuildacentralizedhubatCVGforitsnewlyformedcargoairline,PrimeAir.Amazon’s$1.5billioninvestmentwillresultina3millionsquarefootfacilityexpectedtoaccommodateexpresse‐commercetrafficfrommorethan200dailytakeoffsandlandingsbythePrimeAirfleet.Serviceisexpectedtocommenceinthespringof2017,andthe

newfacilitywillemploymorethan2,000peoplewhencompleted.7

HistoricaircargotonnageforKentucky’scommercialserviceairportsispresentedinTable4‐1.

5 http://www.cvgairport.com/about/news/facts 6 http://www.cincinnati.com/story/news/2014/11/20/dhl‐express‐expansion‐boone‐county‐hebron‐cvg/70007328/ 7 http://aircargoworld.com/amazon‐to‐move‐prime‐air‐cargo‐hub‐to‐cincinnati/



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Table4‐1HistoricAirCargoTonnageatKentuckyAirports

Year CVG LEX PAH SDF TOTAL

1997 399,731 3,287 119 1,483,371 1,886,508

1998 401,646 3,031 303 1,537,721 1,942,702

1999 440,780 2,401 200 1,587,762 2,031,142

2000 430,805 2,381 303 1,674,991 2,108,480

2001 354,852 1,560 86 1,619,114 1,975,612

2002 385,824 962 69 1,680,120 2,066,975

2003 432,872 370 34 1,783,908 2,217,184

2004 455,590 188 35 1,917,459 2,373,273

2005 277,343 284 20 2,000,864 2,278,511

2006 47,718 250 8 2,185,916 2,233,892

2007 43,752 210 36 2,291,644 2,335,642

2008 40,014 186 11 2,176,264 2,216,476

2009 146,745 136 6 2,148,984 2,295,872

2010 409,284 82 0 2,388,327 2,797,693

2011 530,949 86 ‐ 2,412,319 2,943,354

2012 593,786 107 ‐ 2,390,211 2,984,104

2013 655,345 121 ‐ 2,442,806 3,098,273

2014 719,440 138 ‐ 2,527,851 3,247,430

2015* 804,088 ** ‐ 2,591,155 3,395,243

AAGR

2010‐2015 14% ‐100% ‐100% 2% 4%

2005‐2015 11% ‐100% ‐100% 3% 4%

1997‐2015 4% ‐100% ‐100% 3% 3%

*2015datadirectlyfromairportrecords;ACI‐NAdatanotyetpublished.**LEXaircargostatisticsnotavailableasofQ12016.

Source:AirportsCouncilInternational‐NorthAmerica,AirportRecords.

AsshowninTable4‐1,Cincinnati/NorthernKentuckyInternationalhasexperiencedthemostdramaticgrowthinrecentyears,withanaverageannualgrowthof14percentsince2010and11percentsince2005.TonnageatLouisvilleInternationalhasincreasedsteadilywithanaverageannualgrowthrateof3percentsince1997.Year‐over‐year,tonnageatLouisvilleInternationalhasexperiencedgrowthin15of17years,withtheexceptionof2008,2009,and2012.BlueGrassAirportmaintainsasteadyvolumeofpassengerairlinebellycargoeachyear,butisdownfromitsoverallpeaktonnageofabout3,200tonsin1997.DuetotheproximityofBlueGrassAirporttonearbyhubsinNorthernKentuckyandLouisville,themajorityofaircargoistruckedtoandfromthearea.BarkleyRegionalAirporthasnotexperiencedaircargotonnagesince2009forthesamereasonsasBlueGrassAirport,plusitiswithincloseproximitytoFedEx’sMemphishub.

Statewide,totalaircargotonnageisdrivenbythetwoaircargohuboperationsatCVGandSDF.In2015,SDFrepresentedroughly76percentofthetotalstatewideaircargotonnage,whileCVGmadeuptheremaining24percent.AsshowninFigure4‐4,thestrongstatewidegrowthexperiencedfrom2010topresentcanbeattributedtotheestablishmentofDHL’snewNorthAmericanHubatCVG.



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Figure4‐4HistoricAirCargoTonnage1997‐2015,CVG&SDF

Note:2015datadirectlyfromairportrecords;ACI‐NAdatanotyetpublished.


PriortotheestablishmentofitsWilmingtonhub,whichwasoperatedfrom2003to2009,DHLpreviouslyoperatedoutofCVG.DHL’sdeparturefromandreturntoCVGisevidentintonnagedatashownfortheseyearsinFigure4‐4.CVG’sdeclineintonnagealsocorrespondstoDeltaAirLines2005bankruptcyandsubsequentflightcuts.Delta’s2008mergerwithNorthwestAirlinesalsoresultedinfurtherreductioninflights,contributingtoadeclineinpassengerbellycargoattheairport–althoughitisstillarelativelysmallfractionofoveralltonnage.

NotincludingKentucky’stwoaircargohubairports,thestate’stworemainingcommercialserviceairportswithmeasureablequantitiesofaircargotonnageareBlueGrassAirportandBarkleyRegionalAirport.AsshowninFigure4‐5,theseairportshaveseenstrongdeclinesinaircargotonnagesince1997.

‐

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

4,000,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Short Tons

CVG SDF



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Figure4‐5HistoricAirCargoTonnage1997‐2014,LEX&PAH


2015datanotavailableasofQ12016.

Kentuckyisanattractivelocationforaircargohubsduetoitsgenerallytemperateweatherandshorttraveltimes.FromUPS’Louisvillehub,approximately75percentoftheU.S.populationisreachablewithinatwo‐hourflight,andafour‐hourflightallowsforaccessto95percentoftheU.S.population.CVGisapproximately80milesfromSDFsosimilarfiguresapply.Inturn,thesurroundingareasofCVGandSDFhavebecomeprimespotsforamultitudeofcompaniestosetuptheirowndistributionfacilitiesthankstothepresenceofUPSandDHLandtheirextensiveglobalreach.BusinessesbenefitfrombeinginsuchcloseproximitytoKentucky’saircargohubsbyallowinglaterpickuptimes,shortertotaldeliverytime,andreducedshippingcosts.Morethan140companieshavelocatedtoKentuckytobenearUPS’Worldport,includingmanynotablee‐commercebusinesses.8AsimilartrendisoccurringinthevicinityofCVG.

Majorbrands’distributioncenterslocatedinKentuckyincludeAmazon,AmericanGreetings,Browne‐Forman,CengageLearning,Chegg,DormanProducts,FruitoftheLoom,Gap/OldNavy,GeekSquad,GiltGroupe,GordonFoodServices,LeviStrauss,NastyGal,SunProducts,ToyotaNorthAmericanPartsCenter,TractorSupply,Walmart,andZappos.910AuniqueexampleisClearWaterFineFoods,whichoperatestheworld’slargestinlandlobstertankinLouisville,towhereNovaScotialobstersareshippedandkeptinsaltwatertanksat39degreesuntiltheyaresentviaUPSto

8 http://www.businessclimate.com/kentucky‐economic‐development/ups‐dhl‐put‐kentucky‐distribution‐map 9 http://midamericafreight.org/wp‐content/uploads/Kelly_TransportationsRoleInKentuckysEconomicDevelopment.pdf 10 http://www.businessclimate.com/kentucky‐economic‐development/kentuckys‐strong‐transportation‐system‐energizes‐business‐climate

‐

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Short Tons

LEX PAH



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restaurantsacrossthecountry.GiltGroupeisafashionandhomedécorretailerthatoperatesa“flashsale”businessmodel,shippingbetween20,000and30,000unitsperdayfromtheirhightechfacilityinLouisville.BestBuyopeneditsGeekSquadCityjustsouthofSDF,whichoperatesasacentralizedrepairandrefurbishmentcenterfortech‐products.Priortoitsopeningin2006,repairsweremadeatvariouslocationsthroughoutthecountry.11Thesefirms,amongmanyothers,havelogisticsneedsthatarewellaccommodatedbyacombinationofKentuckyairportsandlogisticsinfrastructure.

GivenKentucky’sprominenceinthehorseracingandbreedingindustries,itisnosurprisethatKentuckyairportsfrequentlysupportequinechartertransportflights.Accordingtothe2012KentuckyEquineSurvey,BlueGrassAirportandLouisvilleInternationalAirportarebothrankedinthetopfiveU.S.airportsinvolvedinhorsetransportation.AircargocarrierssuchasKalittaAirsetupspecial“airstables”onmodifiedBoeing727aircraft.Horsesaregenerallyflowninternationallybutarealsoflowndomesticallyoverlongdistances.LargerairportssuchasNewYork(JFK),Miami(MIA),andLosAngeles(LAX),whichhaveU.S.Customs/quarantinefacilities,mustbeusedwhenahorseisfirstimportedintotheU.S.TheaforementionedairportsplusHouston(IAH),Chicago(ORD),andDallas(DFW)aremostcommonlyusedforexportinghorsesafterdepartingKentucky.InadditiontoKalittaAir,otherairlinesthatprovidelivestockshippingincludeElAl,CAL,Lufthansa,KLM,Cargolux,andFedEx.12AmoredetaileddiscussionofKentuckyairports’supportoftheequineindustryisprovidedinChapter5:UniqueAspectsofAviationinKentucky.

GACargoInadditiontothecommercialserviceairportsthatsupportaircargo,therearealsoseveralgeneralaviationairportsinKentuckythatsupportaircargoactivity.GAairportsarefrequentlyusedbyregionalaircargooperatorsandfeederairlinesastheyprovideseveraladvantagessuchasconvenienceandflexibility.Aircargoistypicallylightweight,time‐sensitive,andhigh‐value.Servingtheaircargoneedsofsmallmarketareasisoftenbetteraccommodatedbysmallaircraftoperatingatageneralaviationairportthatprovidesquickaccesstothatmarket.Thisisoftenmoreeconomicalthantruckingtomarketsthatarerelativelyisolatedfromthelargerdistributionnetworkorthosewherethecargodemanddoesnotwarrantafull‐sizetruck(LTLshipments).OperatingatGAairportsisparticularlyeconomicalwhentherearemultiplesmallmarketsthatcanbeservedbyoneaircraftoperatingamulti‐segmentroute.Kentuckyhasseveralsuchsmallmarketsanditsgeographymakesthestatewellsuitedforgeneralaviationaircargo.

AccordingtoBTST‐100datatwoofKentucky’sGAairports–BowlingGreen‐WarrenCountyRegionalandElizabethtownRegional–reportedsmallvolumesofaircargotonnagein2014.Theseaircargooperationscanrangefromscheduledshipmentsofmedicalsupplies/samplestoadhocshipmentsofautomotivesupplies.BowlingGreenishometoGeneralMotors’Corvetteassemblyplant,whichoftenrequireemergencyshipmentsofspecialtypartsortooling.

Theinventoryeffortofthesystemplanaskedairportstoreportbasicinformationonthefrequencyofaircargooperations.TheresultsoftheinventoryfoundthatofKentucky’s53public‐usegeneralaviationairports,27,or51percent,reportedhavingsomelevelofaircargoactivity.ThreeGAairportsreportedweeklyaircargooperations:AddingtonFieldinElizabethtown,BowmanFieldinLouisville,andMountSterling‐MontgomeryCounty.FourteenGAairportsreportedmonthlyair

11 http://www.businessclimate.com/kentucky‐economic‐development/distribution‐assets‐draw‐top‐firms‐kentucky 12 http://equinechronicleonline.com/modern‐pegasus‐horses‐flying‐internationally/



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cargoactivity,and10GAairportsreportedexperiencingaircargooperationsonaseasonalbasis.Allairportsreportingaircargoactivityonadailybasisareclassifiedascommercialserviceairports.

IndustryTrendsAtthenationallevel,duetobothinternalandexternalfactors,theaircargoindustryhasexperiencedsignificantvolatilitythathasresultedinrapidmaturationoftheindustry.Highfuelcostsandarecessedeconomicclimatecausedanindustryshifttotruckingwhereunitcostsavingsbecamehigherprioritythanshipmenttime.Ascustomerbasesandmarketsharescontracted,aircargocarriersadaptedbyconsolidating,shiftingbusinessmodels,orceasingoperations.KittyHawkAirCargoceasedoperatingin2008;BAXGlobalwasacquiredbyDBSchenkerin2005andceaseddomesticaircargoactivitiesin2011;UPSacquiredMenloWorldwide(formerlyEmeryWorldwide)in2004andclosedtheDaytonhubin2006;DHLacquiredAirborneExpressin2003andclosedtheWilmingtonhubin2009afterDHLwithdrewfromdomesticdelivery.

Asaresultofthesechanges,outsideofsmallerregionalcontractorcharteroperators,thecurrentlandscapeofthedomesticaircargoindustryhaseffectivelybecomeaduopolywithFedExandUPSasthelastmajorplayersleftstanding.However,e‐commercegiantAmazonispoisedtoshakeuptheindustrylandscapeasitannouncedinJanuary2016thatitwouldlease20Boeing767widebodyaircraftfromAirTransportServicesGroup(ATSG)andoperateoutoftheformerDHLhubatWilmingtonAirPark(ILN)inOhio.13

Amazonhasbeenoperatinga“trialexpressnetwork”outofWilmingtonsincemid‐2015onkeyroutestoAllentown,Pennsylvania;Dallas/FortWorth,Texas;OaklandandOntario,California;andTampa,Florida.EachoftheseairportsarewithincloseproximitytoAmazondistributioncenters.AmazonisalsooperatingasmallEuropeannetworkwithroutesfromWroclaw,Poland,toLutonorDoncasterintheU.K.,andKassel,Germany.TheadvantageforAmazonisthatthecompanyknowstheirownairtrafficvolumesandknowstheamountofcargothatneedstobetransportedbetweenits100‐plusdistributioncentersacrossthecountry.14Ratherthangiveitscargotoathirdpartywhereitwouldpayapremiumandcompeteforlimitedspacewithothercargoshippers,Amazonsavesmoneybycharteringaplaneitself.ItisyettobeseenwhatimpactAmazon’sentrywillhaveontheindustry–whetheritbeanincreaseintonnageorsimplyatonnageshiftawayfrommoreestablishedcarriers,Kentucky’saircargohubsarelikelytobeimpactedinsomemanner.

ApartfromtheAmazondevelopment,themostsignificantareaofgrowthfortheairfreightindustryisoninternationalsegmentsbetweenmajormarkets.ThemorematureU.S.domesticmarkethasbeenrelativelyflatoverthepastdecade,withtherapidgrowthof1980sand1990sadistantmemory.However,astheeconomycontinuestostrengthenandtradegrows,sotoowillthedemandforaircargo.TheBoeingWorldAirCargoForecast2014‐2015projectsgrowthof2.1percentfrom2013to2033forintra‐NorthAmericanaircargo.RegionaltradeforecastsbetweenNorthAmerica‐Asia,NorthAmerica‐Europe,andNorthAmerica‐LatinAmericaareallprojectedtobeoverfivepercentoverthesametimeperiod.

SummaryAircargoactivityissupportedbybothcommercialserviceandgeneralaviationairportsinKentucky.LouisvilleInternational,hometoUPS’‘Worldport’hub,hasbeenthebusiestaircargoairportinthestatesinceitsestablishmentinthe1980s.Cincinnati/NorthernKentucky

13 http://www.wsj.com/articles/cargo‐airline‐expands‐flights‐believed‐to‐be‐for‐amazon‐1455125482 14 http://motherboard.vice.com/read/a‐secretive‐air‐cargo‐operation‐is‐running‐in‐ohio‐and‐signs‐point‐to‐amazon



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InternationaliscurrentlyundergoingaresurgenceinaircargogrowthasaresultofDHLestablishingitsNorthAmericanhubattheairportin2009.Inadditiontointegratedexpresscargo,SDFandCVGalsosupportpassengerbellycargo,whichmakeupsignificantlysmallerpercentagesoftheirtotaltonnages.BlueGrassandBarkleyRegionalAirportsalsohaveahistoryofsupportingaircargoactivityintheformofpassengerbellycargo.GeneralaviationairportssuchasBowlingGreen‐WarrenCountyRegionalandElizabethtownRegionalalsoplayaroleinfacilitatingaircargooperationsbyregionalcargocarriersandfeederairlines.

Multimodal Issues AsafeandreliabletransportationsystemisvitaltoKentucky’sfutureeconomicgrowth,nationalcompetitiveness,andoverallqualityoflife.Kentucky’scentrallocationandaccessibilitytomajormultimodaltransportationroutesmakesKentuckyauniquelyattractiveenvironmentforbusiness,industry,andtourism.Multimodaltransportationinvolvesthemovementofpeopleandgoodsfromanorigintoadestinationusingmorethanonemodeoftransportation.Multimodaltransportationtypicallyincludesamixtureofmovementbyhighway,air,rail,waterway,publictransit,bicycling,orwalking.Multimodaltransportationprovidesapathwayformeetingtheincreaseddemandonourtransportationnetworkbyfacilitatingleast‐costtransportoptionsthataresafe,secure,andsustainable.15

Toprovideasafeandreliabletransportationsystemforthenext20years,stateandregionaltransportationplanningmustbecoordinatedandcomprehensive.The2014Long‐RangeStatewideTransportationPlan(LRSTP)wasdevelopedbytheKentuckyTransportationCabinet(KYTC)tomeetthevisionofKentucky’stransportationsystemoverthenext20yearswhiletakingintoconsiderationKentucky’suniquegeographicanddemographicchallenges.Thevisionforthestate’stransportationsystemwasdefinedas“awell‐maintained,multimodaltransportationsystemthatdeliverssafeandreliabletripswhichimproveKentucky’squalityoflife.”

DrawingprimarilyuponKYTC’s2014Long‐RangeStatewideTransportationPlan(LRSTP)andthe2016KentuckyFreightPlan,thissectiondiscussesthevariousmultimodalissuesinKentuckythathavethepotentialtoimpactaviationforbothpassengersandfreight.

MultimodalPassengerCommercialserviceairportsoftenhavemultimodallinkagesusedbybothpassengersandairportworkers,and,inKentucky,thesemultimodallinkagesconsistofautomobileaccessandbusservice.Generalaviationairportsdonottypicallyhavemajormultimodallinkages,withtheobviousexceptionofautomobileaccess.WhilethereisnorailconnectivitytoKentuckyairports,thereisalevelofferryusewhenaccessingKentuckyairports.Thefocusofthissectionisonpassenger‐relatedmultimodalactivities.

BusServiceInpractice,multimodaltransportationlinkshavelittleinfluenceongeneralaviationairports.Asseenthroughtheinventoryeffortofthisstudy,multimodalconnectivityisprimarilyrelatedtocommercialserviceairports.NoneofthecommercialserviceairportsinKentuckyareconnectedbypassengerrail,whilefourofthestate’sfivecommercialserviceairportsareservedbybus.TheTransitAuthorityofNorthernKentucky(TANK)providesbusservicefromdowntownCincinnatitothepassengerterminalandDHLhubfacilitiesatCVG,whiletheTransitAuthorityofRiverCity(TARC)providesbusservicetopassengerterminalandUPShubfacilitiesatLouisvilleInternational.TheTransitAuthorityofLexington(LexTran)offersbusservicetoBlueGrass

15 http://www.ktc.uky.edu/research/multmodal‐transportation/



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AirportfromthedowntownTransitCenter.BarkleyRegionalandOwensboro‐DaviessCountyRegionalofferon‐demandshuttleservice.Theinventoryeffortalsodeterminedthattwoofthe54generalaviationairportsinthestatesystemhavebusconnectivity:BowmanFieldinLouisvilleandLondon‐Corbin‐MageeField.Agreaternumberofairportshaveon‐demandtaxiandshuttleservicesavailabletousers.

PassengerRailWhilethereiscurrentlynodirectrailaccesstoanyKentuckyairport,thereisexistingrailserviceinthestateanddormantrailconceptsthathavethepotentialtoimpactairports.

IntercitypassengerrailtravelisprovidedbyAmtrak,toAshland,SouthPortsmouth/SouthShore,Maysville,andFulton,allalongKentucky’snorthernborder.

Lightrailorlightrailtransitistypicallyanurbanformofpublictransportwitha“light”passengercapacitythatoperatesprimarilyalongexclusiverightsofway.TheTransitAuthorityofRiverCity(TARC)inLouisville,whichrunsthelargesttransitsysteminKentucky,hasexploredtheconceptoflightrailinthepast.However,TARChaltedtheirlightrailstudy,TransportationTomorrow,in2004duetofundingandridershiphurdles.ProposalsforaraillinebetweendowntownCincinnatiandCincinnati/NorthernKentuckyInternationalhavebeendiscussedinthepast,butthereisnoprojectcurrentlyindevelopment.

FerryOperationsAnothernotableformofmultimodalconnectivitytoKentuckyairportscomesfromferries.Kentuckyusesaferryboatsystemtoaccommodaterivercrossingswhereconstructionofabridgeisnotafeasibleordesirablealternative.Thereare10ferryboatsoperatingwithinoralongthestate’sborders,sevenofwhichproviderivercrossingsatnocharge.Ferryboatsareconsidered“movingbridges”bytheKYTC,andprovidecrossingsovertheOhio,Mississippi,Green,Kentucky,andCumberlandRivers.FundingisprovidedbytheKYTCtofacilitateoperationofsevenoftheferryboats.ThefederalgovernmentprovidesfundingandoperationofthetwoferryboatslocatedinMammothCaveNationalPark.TheferryboatsmeetanimportantneedaspartoftheKentuckytransportationsystemandalthoughtheytransportrelativelylowvolumesoftraffic,Kentucky’sferriesarelikelytoindirectlyservetheneedsofsomeairport‐boundtraffic.

Oneexampleistheprivately‐operatedAndersonFerry,whichcrossestheOhioRivernorthofCincinnati/NorthernKentuckyInternational10mileswestofdowntownCincinnati.SinceitistheonlyautomobilecrossingbetweentheInterstate71/75bridgedowntownandtheInterstate275bridgeontheIndianaborder,theferryispopularamongresidentsofCincinnati’swesternsuburbsforcatchingflightsandgettingtowork.16Althoughlimited,itislikelythatKentucky’snineotherferriesprovideservicetoairportusers.Kentucky’sferriesarelistedinTable4‐2.

16 http://www.andersonferry.org/anderson_ferry_information.htm



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Table4‐2FerryboatsinKentucky

Ferry Crosses From To Sponsor

Anderson Ferry Ohio River Boone Co., KY Hamilton Co., OH Privately Operated

Augusta Ferry Ohio River Bracken Co., KY Brown Co., OH State Funded

Cave in Rock Ferry Ohio River Crittenden Co., KY Hardin Co., IL State Funded

Dorena‐Hickman Ferry Mississippi River Fulton Co., KY Mississippi Co., MO State Funded

Green River Ferry Green River Edmonson Co., KY Edmonson Co., KY Federally Funded

Houchin Ferry Green River Edmonson Co., KY Edmonson Co., KY Federally Funded

Reeds Ferry Green River Butler Co., KY Butler Co., KY State Funded

Rochester Ferry Green River Butler Co., KY Ohio Co., KY State Funded

Turkey Neck Bend Ferry Cumberland River Monroe Co., KY Monroe Co., KY State Funded

Valley View Ferry Kentucky River Fayette and Jessamine Co., KY Madison Co., KY State Funded

Source:KYTC

MultimodalFreightThemovementofgoodsandfreightthroughoutKentuckyisvitalforeachcitizenintheCommonwealth,fromtheaerospacepartsmachinisttothemineworkertothepharmacist.Eachhasaneedtotransportrawmaterials,manufacturedparts,andfinishedgoods;andthenproductstobesoldorpurchased.TherecentlycompletedKentuckyFreightPlan(KFP),whichisasupplementtothe2014LRSTP,outlinesthemultimodalissuesinKentuckyrelevanttofreight.Thissectiondiscussesmultimodalissueswithrelevancetoaviation.

MultimodalFreightSystemKentucky’smultimodalfreightsystemenablesthestatetocapitalizeonitsgeographicallystrategiclocation.Kentuckyislocatedwithin600milesofover60percentofthenation’spopulation,personalincomeandmanufacturing.Itscentrallocationfacilitatesthedistributionoffreighttoover30states.Kentucky’sfreightnetworkconsistsofextensivehighway,rail,maritime,andaviationinfrastructure.

HighwayThestateisservedby10interstatesand10stateparkways,includingmorethan500milesofthefederallydesignatedHighwayPrimaryFreightNetwork.Thisincludestwoofthenation’sbusiestnorth‐southinterstatecorridors(Interstates75and65),connectingindustriesacrossNorthAmericafromCanadatoMexico.KentuckyalsocontainsmajorportionsofInterstate64,whichisamajoreast‐westcorridorstretchingfromNorfolk,VAtoSt.Louis,MO.17

Kentucky’shighwaynetworkistheprimarymodeforfreightaccessingthemajorityofairportsinthestate,withtrucksservingastheonlyothermodefortransportingaircargo,eithertoorfromtheairport.

RailKentucky’sapproximately3,200milesofrailroadtrackcarryamyriadoffreightandprovideconnectivitytoallpointsintheU.S.ClassItrackmakesupapproximately2,300milesofKentucky’srailsystemandrepresentthemostheavilytravelledraillinesbyrevenue.KentuckyistraversedbyCSXT’sChicagotoNashville,TNandDetroit,MItoAtlanta,GAmainlines,byNorfolkSouthern’sCincinnati,OHtoAtlanta,GAandNewOrleans,LAmainlines,andbyCanadianNational’sChicago,ILtoNewOrleans,LAmainline.TheClassIrailroadsarecomplementedbyanetworkofregionaland

17 http://www.thinkkentucky.com/kyedc/pdfs/kytrannw.pdf.



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shortlinerailroadsthatprovidein‐stateconnectivity.ThePaducah&LouisvilleRailwayisoneexample,providingeast‐westserviceinKentucky,connectingwithsixothercarriersatthreelocationswithinthestate.

WaterKentuckyisborderedonthreesidesbynavigablerivers.TheOhioRiverformsthe660‐milenorthernborder,whichisthelongestofthethreeborderrivers.TheMississippiRiverformsthewesternborder,andtheeasternsideofthestateisborderedbytheBigSandyRiverandTugFork.Withover1,980milesofcommerciallynavigablewaterwaysand12publicportauthorities,Kentuckyalsoprovidesefficientyear‐roundwaterbornecommerce.TheOhioRiver,amajortributaryoftheMississippiRiverSystem,providesconnectivityasfarasPittsburgh,PA,Minneapolis,MN,andTulsa,OK.WesternKentuckysitsattheconfluenceoftheOhioandMississippiRivers,markingthenominaltransitionbetweentheUpperandLowerMississippiRiver.TheentireinlandwaterwaysystemprovidesawaterwaylinktoCanadaviatheGreatLakes,andtoMexicanandSouthAmericanmarketsviathedeepwaterportsofNewOrleans,LAandMobile,AL.KentuckyalsoconnectstheOhioRivertonumeroussoutherncitiessuchasNashville,TNviatheCumberlandRiver,Knoxville,TNandChattanooga,TNviatheTennesseeRiver,andMobile,ALviatheTennessee‐TombigbeeWaterway.18

Thisinlandwaterwaynetworkprovidesforefficientyear‐roundfreighttransportofbulkmaterials,agriculturalproducts,chemicals,minerals,metals,wood,manufacturedgoods,andcontainerizedfreight.Thestate’swell‐developedterminalsandriverportshavestrongconnectivitytorail.However,similartorail,waterbornecommercehasnointermodalconnectivitywithairtransportation.

AirTherearesixcommercialairportsinKentucky,includingtwomajorshippinghubsthatarehometoUPSWorldport(Louisville)andDHLExpress(Covington).In2014,theLouisvilleInternationalAirportwasrankedthirdintheU.S.forannualairfreighttonnageshipments.19Thereare28generalaviationairportswithrunwaylengthsgreaterthan5,000feet,allowingthemtohandlelargercargoplanes.Thistransportationnetwork,furtherhighlightedinthefollowingsections,makesitpracticaltomovefreightlocally,regionally,andtoallpointsoftheglobe.

Inaddition,Kentuckyisanattractivelocationforaircargohubsduetoitsgenerallytemperateweatherandshorttraveltimes.FromUPSLouisvillehub,approximately75percentoftheU.S.populationisreachablewithinatwo‐hourflight,andafour‐hourflightallowsforaccessto95percentoftheU.S.population.Amoredetaileddiscussionofaircargocanbefoundinaprevioussectionofthischapter.

IntermodalThemajorKentuckyinfrastructuredevelopmentinthepast10yearshasbeentheupswinginvolumeandinvestmentinrailroadcontainerintermodalfacilities.Kentuckyhasfourintermodalfacilitiesthatcantransfercontainersand/ortrailersofcargofromrailtotruck.NorfolkSouthernoperatesthreefacilities,twoinLouisvilleandoneinGeorgetown,andCSXopenedafacilityinLouisvillein2012.20Railcarriers,withtheassistanceofsomepublicsubsidies,haveinvestedheavilyincreatingterminalsbridgingthemodalcapabilitiesofroadways,rail,andmarinecargo.

18 http://www.thinkkentucky.com/kyedc/pdfs/kytrannw.pdf 19 Kentucky Cabinet for Economic Development, Kentucky Economic Development Guide, 2014. 20 Kentucky Transportation Cabinet, 2015 Kentucky Statewide Rail Plan, 2015.



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ThelocationofKentucky’sintermodalfacilitiesisadvantageousbecauseoftheKentuckymarket,thegoodconditionofKentucky’sroadsystem,andtheproximitytothenationalmarket.Whileintermodalgrowthoverthepast20yearswasprimarilydrivenbyinternationaltrade(specificallyimports),developmentofnewintermodalfacilitiesandrailroadoperatingandmarketingpracticeshasincreasedtheviabilityofall‐domesticintermodalmoves.

CriticalConnectionsandtheFirst/LastMileFreightmovementsbytruckinKentuckyrelyheavilyontheInterstateHighwaySystem.Becausetrucksperformtheinitialpickupanddeliveryformostgoodsandcommoditiesmovedbyair,rail,andwater,theconnectorroutesbetweenthefreighttransportationmodesareacriticallinktofacilitatethesmoothermovementoffreight.Oftentheseconnectorsor“lastmile”segmentsareunderlocaljurisdiction.

Asfreightvolumesgrow,theabilityofthemultimodalfreightsystemtoberesilientandresponsivetothefreightcommunity’sneedswillbeincreasinglyimportanttoKentucky’seconomicfuture.Itisimportanttomaintaintheconnectivitypointswithothermodesoftransportation.Theconnectionpointsarewheremostefficiencyisgainedorlostduringfreighttravel.InKentucky,theseconnectionpointsareairports,rail,truckdistributioncenters,pipelinesandportfacilities.TheroadsleadinguptomajorconnectivitypointsaredesignatedNationalHighwaySystem(NHS)IntermodalConnectorsbyFederalHighwayAdministration(FHWA)andKYTC.

IntermodalConnectorsareoftenmaintainedbydifferententitiesandfallintothecracksintheplanningandprogrammingprocess.Investmentinconnectorsisoftenincompetitionwithotherhigh‐profileprojectsfortheeverdecreasingtransportationfunding.Intermodalconnectorsoftensuffergeometricissues,pavementlifecycle,andotherchallengesthatcreateinefficienciesandreliabilityissuesforfreightusers.Table4‐3listsKentucky’sIntermodalConnectors.

AsshowninTable4‐3,thereareonlythreeNHSIntermodalConnectorsthataredirectlyrelatedtoairports(highlightedinblue).Althoughseveralotherconnectorscouldhavethepotentialtoimpactaviationfurtherdownstream,itisunlikelyduetothenatureofcommoditiestransportedviatheseconnectors.Airfreightistypicallylightweight,high‐value,andtime‐sensitive,withverylittleconnectivitytorailormaritimemodes.



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Table4‐3FreightNHSIntermodalConnectors

Facility Type Connector Description

Bells Lane Petroleum/Chemical Pipeline

Truck/Pipeline Terminal

KY 2056 from I‐264 W to the Louisville‐Kentucky River Floodwall

Bells Lane Petroleum/Chemical Port Port Terminal KY 2056 ‐ Louisville‐Kentucky Floodwall to I‐264

Campground Rd Petroleum Pipeline Truck/Pipeline Terminal

Campground Rd (Cane Run to Ralph), Kramers Ln (Cane Run to Campground), Ralph Ave (Cane Run to Campground Rd)

Campground Rd Petroleum Port Port Terminal Same as above

Cincinnati/N KY International Airport Airport KY 212 from I‐275 S to the Airport Roadway System

Clark Elkhorn Coal Tipple Truck/Rail Facility KY 1441 (US 460 to Clark Elkhorn Tipple #1 Ent), KY 1789 (US 460 to KY 1441)

Golden Oak Mining CO. Truck/Rail Facility KY 7 (KY 15 to KY 931), KY 931 (KY 7 to Facility)

Ivel Coal Tipple Truck/Rail Facility County Rd 1020 ‐ US 23 to Facility

Blue Grass Airport Airport FS 8550 ‐ US 60 to Facility

Louisville International Airport Airport Grade Ln (I‐264 to UPS Feedor Truck Entrance), FS 8879 (I‐264 to Facility)

Louisville/Ashland Oil/Chevron Dist. Center

Truck/Pipeline Terminal

KY 1681 ‐ KY 4 Interchange to Facility

McCoy Elkhorn Coal Corp Truck/Rail Facility KY 194 ‐ US 119 to Facility

Norfolk Southern Intermodal ‐ Georgetown

Truck/Rail Facility KY 620 ‐ Facility to I‐75 Interchange

Norfolk Southern Intermodal ‐ Louisville

Truck/Rail Facility Newburg Rd (I‐264 to Bishop), Bishop Ln (Newburg to Jennings), Jennings Ln (Bishop to Facility)

Owensboro Riverport Port Terminal KY 331 (US 60 to Harbor Rd), Harbor Rd (KY 331 to Facility)

Praise Dock Coal Tipple Truck/Rail Facility KY 80 from US 460 to Facility

Truck to Barge Coal Dock Cluster, Boyd County

Port Terminal KY 757 from US 23 near Lockwood to 2.3 Miles North

Source:FederalHighwayAdministration,NationalHighwaySystem:IntermodalConnectors,June18,2012.

IndustrySpotlight–AerospaceManufacturingKentucky’saerospaceindustryhasbecomethestate’sleadingmanufacturingexportbyvalue,exportingonequarter($7.8billion)ofKentucky’s$27.5billiontotalexports,accordingto2014CensusBureaufigures.Thissectorgrewby37.5percentbetween2013and2014alone.AmajorcontributortothisgrowthareKentucky’snumeroussuppliersforCincinnati‐basedGEAviation,whichisseeingsignificantgrowthindemandfornewer,morefuelefficientaircraftengines.21Withoutitsextensivefreighttransportationnetwork,Kentucky’saerospaceindustrywouldnotbeinthestrongpositionitistoday.

Havingtakennotice,theKentuckyCommissionofMilitaryAffairs(KCMA),incollaborationwiththeKentuckyCabinetforEconomicDevelopment(CED)andKYTC,arecurrentlyconductinganAerospace,AviationandDefenseIndustryStudythatwillmeasuretheeconomicimpact,potentialgrowthareas,educationandworkforcedevelopmentissues,anddeveloprecommendationsforsustainedgrowthwithinthispartoftheKentuckyeconomy.Theresultsofthestudywillenable

21 http://www.lanereport.com/48224/2015/05/kentuckys‐exports‐are‐flying‐high‐with‐aerospace/



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Kentuckycompaniestounderstandandparticipateintheaerospace,aviation,anddefenseindustry,whileprovidingleaders,andpolicy‐makerswithaneffective,updatedinformationsourcetoinformthelegislativeprocessandhelpcontinuetogrowthissectoroftheeconomy.Thisstudyisexpectedtobecompletedbytheendof2017.

SummaryOthermodesoftransportationthatcouldpotentiallyimpactaviationdemandarebus,lightrail,high‐speedpassengerrail,andmultimodalfreightconnectionswithairports.Withtheexceptionofthehighwayandroadnetworkimpactingpassengerandcargoaccess,developmentsinothermultimodalconceptscurrentlyhavelimiteddirectimpacttomuchoftheaviationsystem.Truckingservesastheprimary,ifnotonlymodetointerlinewithaircargo.DespiteKentucky’sextensiveaviation,rail,andtruckingcomponents,interliningbetweenaviationandrailisnoteconomicallyviableduetothedisparityinweightandvaluecharacteristicsofthegoodsshippedbythetwomodes.Althoughtheimpactisminimal,severalofKentucky’sairports,includingCVG,havemultimodalconnectivitywithferryserviceacrossitsmajorbodiesofwater.HavinganunderstandingofthemultimodalissuesthatimpactaviationacrossKentuckyisessentialforstrategicallyimprovingthestate’stransportationsystemandprovidesopportunitiestofostergrowthinkeyindustries–suchasaerospacemanufacturing.

Technology Trends Advancesintechnologyhavehelpedaviationevolveoveritshistory,makingflyingsafer,faster,andmoreefficient.Forexample,theinventionofthejetengineenabledaircrafttoflyfaster,farther,andmorereliablythanpiston‐poweredaircraft,openingnewcommercialopportunitiesforaviation.Technologicalchangesareexpectedtoalteraviation,improvingthewaypeopleandgoodsaremoved.TwoinnovationsthatarelikelytoimpactaviationinKentuckyarethedevelopmentofanewairtrafficcontroltechnologyknownasNextGen,andunmannedaerialvehicles.

NextGenTheNextGenerationAirTransportationSystem(NextGen)isalong‐termplanbytheFAAtotransformthewaytheU.S.airtransportationsystemoperatesthroughimprovementsinaircrafttrackingsystems,communicationsystems,andweathermonitoringandforecastingsystems.Verybroadly,NextGenaimstoshiftairnavigationfromaground‐basedsystemtoasatellite‐basedsystem.TheFAAexpectstheNextGensystemtodeliverincreasedoperationalefficienciesleadingtoshorterflightroutes,lessfuelconsumption,reducedcongestionanddelay,fewerenvironmentalimpacts,andgreatersafetyforaircraft.

NextGenisacomplexsystemcomprisedofmultiplecomponents.ThisnextsectionsummarizesthemajorcomponentsofNextGenandtheircurrentimplementationstatus.

AutomaticDependentSurveillance‐BroadcastAutomaticDependentSurveillance‐Broadcast(ADS‐B)isakeycomponentofNextGenandhastwosystems–ADS‐BOutandADS‐BIn.Usingacombinationofgroundstations,aircraftavionics,andthesatelliteglobalpositioningsystem(GPS),ADS‐BOutprovidesairtrafficcontrollerswithanaircraft’sposition,altitude,airspeed,andotherinformationcriticaltoensuringaircraftseparation.Becauseitreliesonsatellitesinsteadofground‐basedradars,ADS‐BOutimprovesthecoverageandsituationalawarenessofairtrafficcontrollers,includingtrackingofaircraftwhiletaxiingatairportswithadequatesurveillanceequipment,makinggroundmovementssaferforallaircraft.



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ADS‐BInallowsproperlyequippedaircrafttoreceiveweatherandaircraftpositioninformation(forcollisionavoidance)whileinflight.Thiswillbenefitbothgeneralaviationandcommercialairlineswithenhancedsafetybygivingpilotsanimprovedabilitytoavoidhazardousweatherandaugmenttheirresponsibilitytoseeandavoidotheraircraft.

TheFAAhasestablishedadeadlineofJanuary1,2020forallaircraftoperatingincontrolledairspacetobeequippedwithADS‐BOutavionics(theFAAdoesnotrequireaircrafttobeequippedwithADS‐BIn).ThecosttoequipandinstallADS‐BOutisseveralthousanddollarsperaircraft,whichisfairlyinsignificantfortheairlines,butcanbeasubstantialburdenonprivateaircraftowners.Furthermore,thebiggestadvantageforgeneralaviationaircraftisfromADS‐BIn,whichimposesadditionalequipmentandcostsontheaircraftowner.

CollaborativeAirTrafficManagementTechnologiesTheCollaborativeAirTrafficManagementTechnologies(CATMT)focusesonimprovingtheFAA’sTrafficFlowManagementSystem,whichisawiderangingsystemthatdeliversairtrafficdatatouserswiththeintentionofimprovingoverallawarenessofthenationalairtransportationsystem.Usersincludeairlines,military,airtrafficcontrol,andthetravelingpublic.Thedataavailableisextensive,andincludesweatheranditsimpactsonthenationalairspacesystem,flightschedules,andairtrafficcontrolactionsthatinfluencethenationalairspacesystem.

DataCommunicationsTheDataCommunications(DataComm)portionofNextGenenablescontrollersandpilotstocommunicatewithdigitallywrittenmessagesinsteadofovertheradio.Thisallowscomplexmessages,suchasflightplanroutings,tobetransmittedquicklyandwithreducedriskofcommunicationerrortoandfromtheaircraftcockpit.

TheFAAbeganDataCommin2013bydeliveringdepartureclearances(theinitialroutinganaircraftisexpectedtotake)toflightcrewsoperatingatMemphisInternationalandNewarkLibertyInternational.ThetrialsinMemphisandNewarkhaveshownthatuseofthesystemcanresultinfastertaxiouts,reduceddelays,andreducedpilotandcontrollerworkload.AsofMarch2016,18airtrafficcontroltowerswereequippedwithDataCommtechnology,includingLouisvilleInternational,whereUPSassistedtheFAAwithexpandingDataCommbeyondNewark.

TheFAAplanstoexpanditsDataCommservicesfromairtrafficcontroltowerstoall20airroutetrafficcontrolcenters(thefacilities,commonlyreferredtoascenters,thatprovideairtrafficcontrolservicesduringmostoftheenrouteportionofaflight)by2021.

NationalAirspaceSystemVoiceSystemTheNationalAirspaceSystemVoiceSystem(NVS)willreplacethecurrentswitch‐basedvoicecommunicationsystemusedbyairtrafficcontrolwitharouter‐basedsystemthatprovidesanationwidenetworking,monitoringandcommunicationsharingcapabilities.NVSisexpectedtoenabledirectcommunicationbetweenairtrafficcontrollersandaircrews,includingoperatorsofunmannedaerialvehicles.

Currentcommunicationtechnologylimitstheairtrafficcontrolfacilitiesthatanaircraftcrewcanreachbasedongeography.TheNVSenvisionsaninterconnectedairtrafficcontrolcommunicationsystemthatcanallowaircraftcrewstoreachanyairtrafficcontrolfacilitynetworkedintotheNVS.Thisisimportantforpurposesofshiftingworkloadbetweenfacilities,orintheeventthatanair



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trafficcontrolfacilityisoutofserviceanditscommunicationsneedtobeswitchedtoanotherfacility.TheNVSisundergoingtesting,whichisplannedforcompletionin2019.OperationalNVSisexpectedinthefirstFAAfacilitiesin2019withfulldeploymentofthesystemplannedfor2026.

NextGenWeatherTheweathercomponentoftheNextGensystemconsistsofseveralimprovementstothecollectionanddisseminationofweatherinformation.TheNextGenWeatherProcessorwillidentifyweatherhazardsintheterminalandenrouteenvironments.TheAviationWeatherDisplayconsolidatescurrentweatherdisplaysandprovidesconsistentweatherinformationforterminalandenrouteusers.TheCommonSupportServicesmodernizesinformationmanagementservicesforweather,andprovidestailoredweatherproductsthroughSystemWideInformationManagement(seebelow).Improvedweatherinformationisexpectedtoreduceweatherdelaysandenhancesafety.

SystemWideInformationManagementTheSystemWideInformationManagement(SWIM)infrastructureisaimedatallowingmoreefficientdatasharingamongaviationusers.Itaccomplishesthisbyestablishingdataformatstandards,translatingdatafromdifferentdatasystemsintostandardformats,andconsolidatingmultipledataconnectionsintoasingleaccesspoint.OneexampleofhowSWIMresultsinoperationalefficienciesisthatthesystemallowscollaborationbetweenairlinedispatchersandtrafficmanagersbyprovidingbothusergroupsaccesstocurrentweatherandflightplanninginformation.UsingSWIM‐enableddata,thesetwogroupsareabletocooperativelyreroutetrafficandtakeadvantageofthemostcurrentinformationonweather,airtrafficcontroltrafficmanagementinitiatives,runwayconfigurations,andairportdeicingoperations.TheFAAcompletedthefirstportionoftheSWIMinitiativein2015andanticipatesthesecondportionwillbecompletein2016.

EnrouteAutomationModernizationEnrouteAutomationModernization(ERAM)consistsofimprovementstoequipmentatairroutetrafficcontrolcentersthatwillbetterautomateanumberofairtrafficcontrolfunctions,extendsurveillancerange,andincreasethetrackingcapacityforeachcenterfromitscurrentlimitof1,100aircraftto1,900.AsofMarch2015,ERAMwasoperationalatall20ofthecontinentalcenters.Additionalenhancementsareplannedthrough2017.

TerminalAutomationModernizationandReplacementTerminalAutomationModernizationandReplacement(TAMR)isanequipmentupgradeprogramsimilartoERAM,butforairtrafficcontroltowersandterminalradarapproachcontrolfacilities.Thesefacilitiesreceiveimprovedradarprocessinganddisplaysystemsundertheprogram.The



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FAAisimplementingTAMRacrossthreephases,thefirsttwoofwhicharecompleted.TAMRisscheduledforcompletionby2020.

TheNextGensystemhasthepotentialtogreatlyimprovebothcommercialandGA.Forexample,thankstoNextGenmodificationsinarrivalproceduresatLouisville,UPSsavesmorethan7,700gallonsoffueleverynight.22Thisisaccomplishedthroughtheuseofcontinuousdescentarrivals,whichreducefuelburnandnoise.TheuseofADS‐BInandOutpromisestoincreasesituationalawarenessforallaviators,therebyenhancingsafety.

However,theGovernmentAccountabilityOfficehascriticizedthe$40billionprogramforbeingbehindscheduleandmorethan$4billionoverbudget.23Furthermore,thehighcostofequippingaircraftincomparisontothebenefitsreceived(especiallyforGA)mayrestrictthebenefitstoasmallerpoolofparticipantsthanoriginallyanticipated.Finally,concernshavebeenraisedovertheunencryptednatureofthesignalssentoutbyaircrafttosupportNextGentechnologies.TheNationalBusinessAviationAssociationhasstatedthatundertheNextGensystem,eachproperlyequippedaircraftbroadcastsitsaircrafttype,position,airspeed,anduniqueidentificationinrealtimeintheclear.Sincethesesignalsarenotencrypted,anyonewiththerightkindofreceivercancollectthedata.Infact,flighttrackingwebsitessuchasflightradar24.com,makeuseofthesekindsofreceiversoperatedbyvolunteersthatfeedthatdatatothewebsite.

UnmannedAerialSystemsThegrowthinunmannedaerialvehicles(UAV)hasbeenspurredbyimprovementsinenginetechnology,batterylife,andminiaturizationofcomponents,allofwhichhavedrivendownthecostsoftheseeasy‐to‐operatevehicles.Asaresult,recreationalandespeciallybusinessuseofUAVshasproliferated.ThefollowingindustriesarejustasampleofthebusinessesthatexpecttocapitalizeonUAVgrowth.

Agriculture–UAVoperationscanprovidefarmerswithinformationonhowtheircropsareperformingandprovidetheabilitytoapplypesticides,fertilizer,andseedtospecificareas.

Energy–Currently,pipelineandpowerlineinspectionsarecarriedoutbymannedaircraft.UAVoperationshavethepotentialtoconducttheseinspectionsforreducedcosts.

Retailing–CompaniessuchasAmazonandWalmartareexploringhowUAVscanbeusedtodeliverproductsorderedonline.

FilmIndustry–ThemovieandTVindustryexpecttomakeuseofUAVsasaerialfilmingplatforms.

22 NextGen Update: 2014 (2014). FAA, August 2014. 23 Air Traffic Control Modernization: Management Challenges Associated with Program Costs and Schedules Could Hinder NextGen Implementation (2012). Government Accountability Office, GAO‐12‐223, February 16, 2012.



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Insurance–UAVoperationscanprovidetheinsuranceindustrywithinformationmorequicklyandefficientlythancurrentmethods.Forexample,UAVscanbeusedtoinspectroofstoevaluateahomeowner’spolicy,orsurveydamagefromatornadotospeedclaims.

RealEstate–UAVuseisexpectedbeaboonfortherealestateindustry,givingtheabilitytoviewhardtoreachareasofpropertiesandprovideviewsthatareinaccessibletothoseontheground.

LawEnforcement–PolicedepartmentsareinterestedinusingUAVstoaidintrackingsuspectsandmonitoringforillegalactivity.

SearchandRescue–UAVoperationsareidealforwhensearchandrescueisundertakeninremoteareaswhereaccessislimited.

SafelyintegratingUAVoperationsintothenationalairspacesystemremainsachallenge.CongressdirectedtheFAAtodeveloprulesforUAVoperationsbySeptember2015.TheFAApublishedregulationsforthecommercialoperationofUAVsthatweighupto55poundsinJune2016.TheFAAcontinuestodeveloprulesforotherUAVsoperations.TheFAAalsoimplementedinDecember2015aUAVregistrationprocessforallUAVsweighingmorethan0.55pounds.ThisregistrationregulationwasvacatedinMay2017bythecourtsbecauseitviolatedtheFAAModernizationandReformActof2012.TheFAAisintheprocessofreviewingrecommendedrulesforsmallerUAVs,calledmicro‐UAVs,thatwouldbelessrestrictivethantherulesforheavierUAVs.

WiththeFAAstillintheprocessofdevelopingUAVrules,theKentuckyDepartmentofAviation(KDA)hasservedasaclearinghouseforUAVissuesandactivitiesinthestate.Withitsfocusoneconomicdevelopment,KDAhasreachedouttoprivatebusinessesengagedinUAVoperationsinanefforttopromotethecommercialuseofUAVswhilesimultaneouslyencouragingtheirsafeintegrationwithotherairspaceusers,andhelpingresolveissuesthatoccur.

EngineeringandcomputersciencestudentsarealsoindemandbytheUAVindustryandatleast50universitiesintheU.S.havecenters,academicprograms,orclubsfordroneengineeringorflying.TheUniversityofKentuckyhasanUnmannedSystemsResearchConsortium(USRC)thatseekstoadvancetechnologiesassociatedwithUAVs.Dr.SuzanneSmithisthedirectoroftheKentuckySpaceGrantConsortiumattheUniversityofKentuckyandleadsresearcheffortsthatincludessensordevelopmentandaircraftdesign.ShehasnotedthattherearequiteafewcompaniesinKentuckythathaveappliedtotheFAAforpermissiontooperateUAVs.Shesaidthatseveralfactorscontributetothistrend,includingthelargenumberofmilitarybasesinKentuckythatsupplyatechnicallyskilledworkforce,andtwomajorpackagedeliveryfirmsthatarepushingtouseUAVs.Notableareasofusethatsheindicatedincludeatmosphericresearch,agriculturalsurveying,andbridgeinspections,butsheexpectsthattherearemanyfutureusesofUAVsthatareasyetnotidentified.

WideAreaAugmentationSystemAviationanticipatedsignificantimprovementstonavigationwiththedevelopmentoftheglobalpositioningsystem(GPS).Whilethesystemprovidedexcellentenroutepositionalawareness,itwasinitiallyfoundtolacksufficientaccuracyforuseinallbuttheleastdemandinginstrumentapproachprocedures,andcouldnotbeusedtoprovideanysortofglideslopeguidance.ThatchangedwiththedevelopmentoftheWideAreaAugmentationSystem(WAAS),asystemthatimprovesthehorizontalandverticalaccuracyofGPStothepointwhereWAAS‐guidedapproachesnowmatchtheaccuracyofprecisioninstrumentapproaches,andcanofferverticalguidancetoaslowas200feetabovetheairportsurfaceinaslittleas0.5milesofvisibility.



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InKentucky,30airportsrelyonWAAS‐enabledapproachestoprovidethemwiththebestapproachminimumsavailable.TensofthousandsofgeneralaviationaircraftarealreadyequippedwithGPSandmanythousandsalsohaveWAASbecauseitisanattractiveupgrade.Inaddition,somecommercialoperatorshavealsoequippedscheduledserviceaircrafttoflyWAAS‐guidedapproaches.ItisexpectedthattheFAAwillcometorelymoreandmoreonWAASapproachesbecausetheycanbeimplementedwithouttheneedforadditionalground‐basedequipment.

Summary Technologyisakeydriverintheadvancementofaviation.Severalexamplesofthishavebeenhighlightedinthisreport.NextGenisreshapingthewayairtrafficcontrolandaviatorsworktogethertomakemoreefficientuseoflimitedairspace.UPShasalreadyassistedtheFAAwithdemonstratingsomeofthebenefitsanticipatedbytheaviationindustryoncetheNextGensystemisfullydeployed.Generalaviationexpectstoreapsafetydividendsonthein‐cockpitweatherandbettercollisionavoidancetechnologythatNextGenoffers.

DemandforcommercialUAVservicesappearstobegrowingdespiteuncertaintyaroundhowtheFAAplanstointegrateUAVoperationssafelyintothenationalairspacesystem.TheuseofUAVsisexpectedtoimpactairspaceandairportoperationalstandards.

WidespreaduseofWAAS‐supportedinstrumentapproacheshasenhancedaccessibilityfornumerousKentuckyairports,increasingthesafetyandversatilityofthosefacilities.

Finally,itshouldbementionedthatgovernmentalpolicieshavethepotentialtoimpactgeneralaviationactivity,eitherpositivelyornegatively.Someexamplesincludethepersonalpropertytaxonaircraft,environmentalcompliancerequirements,andthelimitforaircarriersonjetfuelsalestax,whichdeprivesthestateofneededaviationrevenuewhileencouragingcommercialairlineactivity.