bqn analysis report 2.8enplanements of the mia, sju, and bqn airports (fy 2014 vs fy2015)..... 27...
TRANSCRIPT
UNIVERSITYOFPUERTORICO
INTERDISCIPLINARYRESEARCHINSTITUTE
CensusInformationCenter
BQN ANALYSIS REPORT Commisioned by the Aeronautical and Aerospace
Institute of Puerto Rico
BQN Analysis Report 1
TableofContents
I. INTRODUCTION .................................................................................................................................................... 2 II. RAFAELHERNÁNDEZAIRPORTFLIGHTROUTEMAPS .............................................................................................. 2
Map1.1RafaelHernándezAirporttoJohnF.KennedyInternationalAirportFlightRouteMap ....................................... 2 Map1.2RafaelHernándezAirporttoFortLauderdale,FL,AirportFlightRouteMap ...................................................... 3 Map1.3RafaelHernándezAirporttoNewarkLibertyInternationalAirportFlightRouteMap .......................................... 3 Map1.4RafaelHernándezAirporttoOrlandoInternationalAirportFlightRouteMap .................................................... 4 Map1.5RafaelHernándezAirporttoO’HareInternationalAirportFlightRouteMap ..................................................... 5 Map1.6RafaelHernándezAirporttoGeorgeBushIntercontinentalAirportFlightRouteMap ........................................ 5 Map1.7RafaelHernándezAirporttoLosAngelesInternationalAirportFlightRouteMap .............................................. 6 Map1.8RafaelHernándezAirporttoRobertL.BradshawInternationalAirportFlightRouteMap ................................... 6 Map1.9RafaelHernándezAirporttoCyrilE.KingAirportFlightRouteMap .................................................................. 7 Map1.10RafaelHernándezAirporttoLasAméricasInternationalAirportFlightRouteMap ........................................... 7 Map1.11RafaelHernándezAirporttoQueenBeatrixInternationalAirportFlightRouteMap ......................................... 8
Figure1.1Top4DestinationAirportsoftheBQN(2015vs2016incalendaryear) ...................................................... 9 III. BQNVSMIASTATISTICS ....................................................................................................................................... 9
Map2.1BQNFacilitiesDiagram ................................................................................................................................ 11 Map2.2MIAFacilitiesDiagram ................................................................................................................................. 12
Table2.1FacilityInformationoftheMiamiInternationalAirport(January1989toJanuary2017) .......................... 13 Table2.2FacilityInformationoftheRafaelHernándezAirport(January1989toJanuary2017) .............................. 14 Table2.3PassengerAirlinesandDestinationsoftheRafaelHernándezAirport ..................................................... 15 Table2.4CargoAirlinesoftheRafaelHernándezAirport .................................................................................... 15 Table2.5PassengerAirlinesandDestinationsoftheMiamiInternationalAirport ................................................. 17 Table2.6CargoAirlinesoftheMiamiInternationalAirport ................................................................................. 22 Table2.7Cargo,inpounds,oftheMIA,SJU,andBQNAirports(FY2014vsFY2015) ............................................... 26 Table2.8EnplanementsoftheMIA,SJU,andBQNAirports(FY2014vsFY2015) ................................................... 27
Figure2.1EnplanementsintheBQNandMIA(CY1990toCY2016*) ........................................................................ 28 Figure2.2MilitaryEnplanements,ItinerantOperations(CY1990toCY2016*) .......................................................... 29
Table2.9EfficiencyStatisticsoftheMiamiInternationalAirport(MIA)(FY2009toFY2016) ................................... 30 Table2.10CapacityStatisticsoftheMiamiInternationalAirport(MIA)(FY2009toFY2016) ................................... 31
IV. AMENDMENTSINTHECABOTAGELAWSFORALASKAANDITSPOTENTIALIMPACTINPUERTORICO ..................... 32 Figure3.1CargoandPassengersoftheTedStevensAnchorageInternationalAirport(1997to2015) ........................ 38
Table3.1CargoandPassengers’GrowthRateafterCabotageChanges(1997-2002and2003-2009) ...................... 39 V. REFERENCES ...................................................................................................................................................... 43
BQN Analysis Report 2
BQNANALYSISREPORT
I. INTRODUCTION
An exemption of the air cabotage laws represents an opportunity for growth for the aeronautical
industry in Puerto Rico and specifically the Aguadilla Rafael Hernandez Airport (BQN). This study,
commissioned by the Aeronautical and Aerospace Institute of Puerto Rico, has been prepared to
present a comparative analysis of current Rafael Hernandez routes and capabilities, the Miami Airport
and the Alaska Anchorage airport. The last section includes an analysis of the potential impact of the
amendment of the cabotage laws for Puerto Rico and the Rafael Hernandez Airport.
II. RAFAELHERNÁNDEZAIRPORTFLIGHTROUTEMAPS
Map1.1RafaelHernándezAirporttoJohnF.KennedyInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoNewYorkis3hours50minutes.
• DistancefromAguadillatoNewYorkisapproximately2,536kilometers.
BQN Analysis Report 3
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
Map1.2RafaelHernándezAirporttoFortLauderdale,FL,AirportFlightRouteMap
• FlighttimefromAguadillatoFloridais2hours30minutes.
• DistancefromAguadillatoFloridaisapproximately1,580kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
Map1.3RafaelHernándezAirporttoNewarkLibertyInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoNewJerseyis3hours50minutes.
• DistancefromAguadillatoNewJerseyisapproximately1,585kilometers.
BQN Analysis Report 4
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
Map1.4RafaelHernándezAirporttoOrlandoInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoOrlandois2hours50minutes.
• DistancefromAguadillatoOrlandoisapproximately1,129kilometers.
BQN Analysis Report 5
Source:BureauofTransportationStatistics(BTS);andGoogleMaps,2017.
Map1.5RafaelHernándezAirporttoO’HareInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoChicago,Ilis7hours35minuteswithlayover.• DistancefromAguadillatoChicago,Ilisapproximately3,264kilometers.
Source:BureauofTransportationStatistics(BTS);andGoogleMaps,2017.
Map1.6RafaelHernándezAirporttoGeorgeBushIntercontinentalAirportFlightRouteMap
• FlighttimefromAguadillatoHoustonis7hours55minuteswithlayover.
• DistancefromAguadillatoHoustonisapproximately3,124kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
BQN Analysis Report 6
Map1.7RafaelHernándezAirporttoLosAngelesInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoLosAngelesis9hours05minuteswithlayover.
• DistancefromAguadillatoLosAngelesisapproximately5,343kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
Map1.8RafaelHernándezAirporttoRobertL.BradshawInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoSt.Kitts&Nevisis10hours50minuteswithlayover.
• DistancefromAguadillatoSt.Kitts&Nevisisapproximately486kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
BQN Analysis Report 7
Map1.9RafaelHernándezAirporttoCyrilE.KingAirportFlightRouteMap
• FlighttimefromAguadillatoSt.Thomasis10hours10minuteswithlayover.
• DistancefromAguadillatoSt.Thomasisapproximately229kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
Map1.10RafaelHernándezAirporttoLasAméricasInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoSantoDomingois5hours55minuteswithlayover.
• DistancefromAguadillatoSantoDomingoisapproximately269kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
BQN Analysis Report 8
Map1.11RafaelHernándezAirporttoQueenBeatrixInternationalAirportFlightRouteMap
• FlighttimefromAguadillatoArubais9hours50minuteswithlayover.• DistancefromAguadillatoArubaisapproximately732kilometers.
Source:BureauofTransportationStatistics(BTS)andGoogleMaps,2017.
BQN Analysis Report 9
Figure1.1Top4DestinationAirportsoftheBQN(2015vs2016incalendaryear)
Source: Bureau of Transportation Statistics, T-100 Domestic Market (US Carriers), 2017. Retrieved from: https://www.transtats.bts.gov/airports.asp?pn=1&Airport=BQN
III. BQNVSMIASTATISTICS
In1940,duringWorldWarII,theUnitedStatesArmedForcesbuiltarunwayinAguadilla,PR.
After eight years, thenamedmilitarybaseofficially became the “RameyAir ForceBase”with3,796
acres. In1973,theUnitedStatesDepartmentofDefensedeactivatedthemilitarybaseandnamed it
“BorinquenInternationalAirport”undertheadministrationofthePortsAuthorityofPuertoRico.Later,
in1987,itchangeditsnametotheRafaelHernándezAirport(BQN)inhonorofthePuertoRicanwriter,
and continues being a civil-military airport. In 2012, it became the first airport in Puerto Rico
designated to the “Free Trade Zone” (FTZ) of the Department of Commerce of the United States,
achievingbenefitssuchas:“100%exemptiononMunicipalLicenseTaxesonexportsoutsidetheUnited
States”,“100%exemptiononexportsforthezoneandsub-zone”,amongothers.
29
62 63
48
73
66 64
54
0
10
20
30
40
50
60
70
80
Florida (FLL) New York (JFK) Orlando, FL (MCO) New Jersey (EWR)
Pass
enge
rs (0
00)
Destination (City, Airport Code)
2015 2016
BQN Analysis Report 10
AccordingtoSenateProject936ofJune15,2009,therunwayoftheBQNis“aNASAalternative
to land ferries in emergencies”. BQN has facilities that could be comparable with the Miami
InternationalAirport(MIA)inFlorida,USA.MIAisoneofthemajorairportsinNorthAmerica;in1920,
GlennH.Curtissdonatedtheland,butitwasinauguratedin1928asacivilairport.BQNhasthelargest
runwayintheCaribbeanwithadimensionof11,702ft.x200ft.,whiletheMIAhasfourrunways:three
aresmaller than theBQNandone is slightly larger (13,016 ft. x150 ft.). In the lastFederalAviation
Administration (FAA) evaluation1, completed inMarch 2017, it is explained that all runways of the
airportsstudiedarepavedwithasphalt,but thatBQN’s runway is inpoorconditions,while thoseof
MIA are in good conditions. According to the FAA reports, all runways of these airports have good
lights.
Anotherfactorthatdeterminesthetotalcargoandpassengerstransportedatbothairports is
thequantityofgatesineachterminal.TheMIAhasonehundredtwenty-five(125)gatesdistributedin
six(6)terminals,whiletheBQNhastwo(2)gatesandone(1)terminal.AccordingtotheFAAofficial
reports, the MIA covers approximately 3,230 acres, while the BQN, 1,600. That may explain the
difference inmovement at both airports, but authorities point out that BQN could reach a greater
capacity than the current one, since it has an additional space that could beused for its expansion
(Map2.1and2.2).
1 Retrieved from: http://www.gcr1.com/5010WEB/airport.cfm?Site=BQN&CFID=2281952&CFTOKEN=36798871 and http://www.gcr1.com/5010WEB/airport.cfm?Site=MIA&CFID=2281952&CFTOKEN=36798871.
BQN Analysis Report 11
Map2.1BQNFacilitiesDiagram
Source: Federal Aviation Administration, 2017. Retrieved from: https://www.faa.gov/air_traffic/flight_info/aeronav/digital_products/dtpp/search/results/
BQN Analysis Report 12
Map2.2MIAFacilitiesDiagram
Source: Federal Aviation Administration, 2017. Retrieved from: https://www.faa.gov/air_traffic/flight_info/aeronav/digital_products/dtpp/search/results/
BQN Analysis Report 13
Ontheotherhand,MIAhasfifteen(15)jetswhileBQNhasone(1)jetandnine(9)helicopters.
Both airports have communication towerswithUSA. However,MIA has two towers combinedwith
other systemswhile the BQN in August 2008, had its first control tower as an FAAmember. Since
January1989untilAugust2003,theMiamiInternationalAirportwasclassifiedas“TowerswithRadar”.
Then,itwaschangedto“CombinedTRACONandTowerwithRadar”.Duringeveryperiod,theMIAwas
anFAAFacility,accordingtotheAirTrafficActivitySystem(ATADS)(Table2.1).
Table2.1FacilityInformationoftheMiamiInternationalAirport(January1989toJanuary2017)
Source:AirTrafficActivitySystem(ATADS),2017.
BQN Analysis Report 14
However,theRafaelHernándezAirport,sinceJanuary1989untilJuly2007,wasclassifiedasa
“Non-FAAFacility”.AccordingtotheAirTrafficActivitySystem,thistermchangedinFebruary2013to
“FederalContractTower”(Table2.2).
Table2.2FacilityInformationoftheRafaelHernándezAirport(January1989toJanuary2017)
Source:AirTrafficActivitySystem(ATADS),2017.
Currently, the Airports-Worldwide (2017) website states that BQN has four (4) commercial
airlines and fourteen (14) cargo lines. Meanwhile, MIA (one of the most important airports in the
UnitedStates)hasfifty-two(52)commercialairlinesandthirty-four(34)cargoairlines(2017)(Tables
2.3to2.6).
BQN Analysis Report 15
Table2.3PassengerAirlinesandDestinationsoftheRafaelHernándezAirport
Airlines Destinations
ContinentalAirlines Newark
JetBlueAirways NewYork-JFK,Orlando
PAWADominicanaPuertoPlata[seasonal],PuntaCana,Santo
Domingo
SpiritAirlines FortLauderdale
Source: Airports-Worldwide, 2017. Retrieved from http://www.airports-worldwide.com/puerto_rico/rafael_hernandez_puerto_rico.php.
AccordingtotheAirports-Worldwide(2017)website,BQNhasthree(3)commercialairlinesto
UnitedStatesandone(1)toDominicanRepublic(Table2.3).
Table2.4CargoAirlinesoftheRafaelHernándezAirport
Airlines Destinations
AmeriflightAruba,Barbados,Curaçao,Grenada,Providenciales,SanJuan,
SantiagodelosCaballeros,St.Croix,St.Thomas,St.Lucia
AtlasAir Malta(chartersseveraltimespermonth)
CaribEx
Worldwide/CaribExIntl
Airlines
DailyflightstoSantoDomingoandondemandflightstothe
CaribbeanandtheUS
CaribEx
Worldwide/CaribExIntl
Antigua,Miami,Providenciales,SanJuan,Santiagodelos
Caballeros,SantoDomingo,St.Kitts,St.Lucia,St.Maarten
BQN Analysis Report 16
Airlines Destinations
Airlinesoperatedby
SkywayEnterprises
ContractAirCargo SantiagodelosCaballeros,SantoDomingo
CorporateAirAruba,Barbados,Curaçao,PortofSpain,Santiagodelos
Caballeros,St.Lucia
FedExExpress Memphis,Greensboro(NC),Indianapolis
FedExFeederoperated
byMountainAirCargoSantiagodelosCaballeros,SantoDomingo
MartinairCargo Amsterdam,Bogotá,Lima,LondonStansted
MerlinVenturesLtd Barbados,Miami
MerlinExpress Providenciales,SantiagodelosCaballeros
MountainAirCargo Providenciales,SantiagodelosCaballeros,SantoDomingo
RoblexAviation
TradewindsAirlinesDallas/FortWorth,Greensboro/HighPoint/Winston-Salem,
Hartford,Indianapolis
Source: Airports-Worldwide, 2017. Retrieved from http://www.airports-worldwide.com/puerto_rico/rafael_hernandez_puerto_rico.php.
TheAirports-Worldwide(2017)websiteinformsthatBQNhasfive(5)cargoairlinesgoingtothe
UnitedStatesandeight(8)othercompaniesusuallyflyingtotheUSVirginIslands,Europe,andother
territoriesinSouthandCentralAmerica.CaribExWorldwide/CaribExIntlAirlines,operatedbySkyway
EnterprisesandMerlinVenturesLtd,carrymerchandisefromtheBQN(Table2.4).
BQN Analysis Report 17
Table2.5PassengerAirlinesandDestinationsoftheMiamiInternationalAirport
Airlines Destinations Concourse
AerolíneasArgentinas BuenosAires-Ezeiza,PuntaCana J
Aeromexico MexicoCity F
AeromexicoConnect Mérida,Monterrey F
Aerosur Camagüey,Havana,SantaCruzdelaSierra F,G
AirBerlin Düsseldorf
NewRoutes:Berlin-Tegel[November19]
J
AirCanada Toronto-Pearson
Seasonal:Montréal-Trudeau
J
AirEuropa Madrid
Seasonal:Tenerife-North
F
AirFrance Paris-CharlesdeGaulle,Pointe-à-Pitre,Port-au-Prince H
AirTranAirways Atlanta[endsOctober7],Baltimore G
AlaskaAirlines Seattle/Tacoma F
Alitalia Milan-Malpensa,Rome-Fiumicino H
AmericanAirlines Antigua,Aruba,Atlanta,Barbados,Baltimore,BelizeCity,Belo
Horizonte,Bermuda,Bogotá,Boston,BuenosAires-Ezeiza,Cali,
Cancún,Caracas,Chicago-O'Hare,Curaçao,Dallas/Ft.Worth,
Denver,Detroit,GrandCayman,Grenada,GuatemalaCity,
Guayaquil,Hartford,Houston-Intercontinental,Kingston,La
Paz,LaRomana,LasVegas,Liberia(CR),Lima,London-
D,E
BQN Analysis Report 18
Airlines Destinations Concourse
Heathrow,LosAngeles,Madrid,Managua,Maracaibo,
Medellín-Córdova,MexicoCity,Minneapolis/St.Paul,Montego
Bay,Montevideo,Montréal-Trudeau,Nashville,NewOrleans,
NewYork-JFK,NewYork-LaGuardia,Newark,Orlando,Panama
City,Paris-CharlesdeGaulle,Philadelphia,Phoenix,Port-au-
Prince,PortofSpain,Providenciales,PuertoPlata,PuntaCana,
Quito,Raleigh/Durham,Recife,RiodeJaneiro-Galeão,St.Croix,
St.Kitts,St.Louis,St.Lucia,St.Maarten,St.Thomas,Salvador
daBahia,SanSalvador,SantaCruzdelaSierra,SãoPaulo-
Guarulhos,SanFrancisco,SanJosé(CR),SanJuan(PR),San
PedroSula,SantiagodeChile,SantiagodelosCaballeros,Santo
Domingo,Tampa,Tegucigalpa,Toronto-Pearson,Tulsa,
Washington-Dulles,Washington-Reagan
Seasonal:Eagle\Vail
NewRoutes:Brasília[November17]
AmericanEagle Atlanta,Birmingham(AL),Charleston(SC),Charlotte,
Cincinnati/NorthernKentucky,Columbus(OH),
Greensboro/HighPoint/Winston-Salem,Indianapolis,Knoxville,
Jacksonville,Louisville,Memphis,Norfolk,Pensacola,
Pittsburgh,Richmond,Savannah,Tallahassee
NewRoutes:Cleveland,Nassau[bothNovember18]
D
BQN Analysis Report 19
Airlines Destinations Concourse
AmericanEagle
operatedby
ExecutiveAirlines
Camagüey,Cienfuegos,FortMyers,Freeport,Gainesville,
GeorgeTown,Governor'sHarbour,Havana,Holguín,
Jacksonville(FL),KeyWest,MarshHarbour,Nassau,North
Eleuthera,SantiagodeCuba,TreasureCay
D
Avianca Barranquilla,Bogotá,Cali,CartagenadeIndias,Medellín-
Córdova,Pereira
J
AviorAirlines Barcelona(Venezuela) F
Bahamasair Nassau G
BritishAirways London-Heathrow F
CaribbeanAirlines Georgetown,PortofSpain J
CaymanAirways GrandCayman,CaymanBrac F
ContinentalAirlines Houston-Intercontinental,Newark
Seasonal:Cleveland
H
Continental
Connectionoperated
byGulfstream
InternationalAirlines
MarshHarbour,NorthEleuthera,Orlando,Tampa G
ContinentalExpress
operatedby
ExpressJetAirlines
Cleveland H
CopaAirlines PanamaCity H
Corsair Paris-Orly[resumesDecember17] F
BQN Analysis Report 20
Airlines Destinations Concourse
DeltaAirLines Atlanta,Cincinnati/NorthernKentucky,Detroit,Memphis,
Minneapolis/St.Paul,NewYork-JFK
NewRoutes:London-Heathrow[March27,pending
governmentapproval],Washington-Reagan[October31]
H
DeltaConnection
operatedbyPinnacle
Airlines
NewRoutes:Raleigh/Durham[November20] H
Finnair Seasonal:Helsinki F
Gulfstream
InternationalAirlines
Havana F,G
IBCAirways CapHaïtien J
IberiaAirlines Madrid F
InselAir Bonaire,Curaçao,Port-au-Prince,St.Maarten F
Lacsa SanJosé(CR) J
LANAirlines Bogotá,Caracas,Guayaquil,PuntaCana,SantiagodeChile J
LANArgentina BuenosAires-Ezeiza,PuntaCana J
LANEcuador Quito
NewRoutes:Guayaquil[October4]
J
LANPerú Lima,PuntaCana J
Lufthansa Frankfurt,Munich
Seasonal:Düsseldorf
J
SBAAirlines Caracas F
BQN Analysis Report 21
Airlines Destinations Concourse
Seasonal:Maracaibo
SkyKing Havana,Holguín F,G
SunCountryAirlines Seasonal:Minneapolis/St.Paul F
SurinamAirways Aruba,Paramaribo F
SwissInternational
AirLines
Zürich J
TACAAirlines GuatemalaCity,Managua,SanPedroSula,SanSalvador
Seasonal:Roatán
J
TAMAirlines Manaus,RiodeJaneiro-Galeão,SãoPaulo-Guarulhos J
TransaeroAirlines NewRoutes:Moscow-Domodedovo[October27] F
UnitedAirlines Seasonal:Denver J
UnitedExpress
operatedbyShuttle
America
Chicago-O'Hare,Washington-Dulles J
USAirways Charlotte,Philadelphia J
VirginAtlantic
Airways
London-Heathrow F
VisionAirlines Camagüey,Havana,Holguín,SantiagodeCuba F,G
WestJet Toronto-Pearson F
Source: Airports-Worldwide, 2017. Retrieved from http://www.airports-worldwide.com/usa/florida/miami_international_florida.htm. Note: “All flights to Cuba are operated as scheduled by Special Authority Charters”.
BQN Analysis Report 22
AccordingtoAirports-Worldwide(2017),outoffifty-two(52)commercialairlinesintheMIA,
justten(10)carrypassengerstotheUnitedStates,asshowninTable2.5.AmericanAirlinesistheonly
commercialairlineoftheMIAthatcarriespassengersdirectlytoSanJuan,PuertoRico.
Table2.6CargoAirlinesoftheMiamiInternationalAirport
Airlines Destinations
ABSACargoAirlineCaracas,CiudaddelEste,Lima,Manaus,Quito,SaoPaulo-
Viracopos,Vitoria
ABXAir Cincinnati,Paramaribo,SantoDomingo
AirAtlantaIcelandic NewYork-JFK,Oslo-Gardermoen
AirJamaicaCargo Kingston,MontegoBay
AirTransportInternational GuatemalaCity,PanamaCity,SanJosédeCostaRica
AmerijetInternational
Aruba,BelizeCity,Campinas,Curitiba,Lima,Manaus,Maracaibo,
Mérida,PortofSpain,Salvador,SanJuan,SanPedroSula,San
Salvador,SantiagodelosCaballeros,SantoDomingo,St.Maarten
AtlasAirChicago-O'Hare,Lima,Manaus,Oslo-Gardermoen,SaoPaulo-
Viracopos,RiodeJaneiro(FromSeptember3rd)
CathayPacificCargo Anchorage,HongKong,Houston-Intercontinental
CapitalCargoInternational
AirlinesMérida,Orlando,Toledo
BQN Analysis Report 23
Airlines Destinations
CaribbeanAirlinesCargo Barbados,PortofSpain
Cargolux Houston-Intercontinental,Luxembourg,MexicoCity
CaymanAirwaysCargo GrandCayman
CenturionAirCargoBogotá,Caracas,Iquitos,Lima,Manaus,Medellín,Santiagode
Chile,SaoPaulo-Viracopos,SanJuan
ChinaAirlinesCargo Anchorage,Atlanta,Seattle/Tacoma,Taipei-Taoyuan
CielosdelPerúBogotá,Caracas,Iquitos,Lima,Managua,Manaus,Montevideo,
Quito
DHLAirways Cincinnati/NorthernKentucky,Toledo
DHLAeroExpreso PanamaCity,Quito,SanJosédeCostaRica
EstafetaCargaAérea Cancún,Mérida
FedExExpress Memphis,Quito,SanJuan,Valencia(Venezuela)
FloridaWestInternational
Airways
Bogotá,GuatemalaCity,Guayaquil,Lima,LosAngeles,Manaus,
Medellín,Quito,SantoDomingo,SanJosédeCostaRica
IBCAirwaysFreeport,GrandCayman,Havana,Kingston,MarshHarbour,
MontegoBay,Nassau,Port-au-Prince,Providenciales
KoreanAirCargo Anchorage,Dallas/FortWorth,Seoul-Incheon,Toronto-Pearson
LANCargo
Amsterdam,BuenosAires-Ezeiza,Caracas,Curitiba,Guatemala
City,Guayaquil,Lima,Manaus,Montevideo,PortoAlegre,Quito,
SanJosédeCostaRica,SanMigueldeTucumán
LíneaAéreaCarguerade
ColombiaBogotá,Curitiba,Manaus,Medellín,Quito,SaoPaulo-Viracopos
BQN Analysis Report 24
Airlines Destinations
MartinairCargoAmsterdam,Bogotá,BuenosAires-Ezeiza,Guayaquil,Lima,Quito,
SantiagodeChile
MasAir MexicoCity
MountainAirCargo Freeport,Kingston
SkywayEnterprises Nassau
TampaCargoBarranquilla,Bogotá,Cali,Caracas,Lima,Manaus,Medellín,
Quito,Valencia(Venezuela)
TradewindsAirlines Lima
TransportesAéreos
BolivianosCochabamba,PanamaCity,SantaCruzdelaSierra
UPSAirlines
Bogotá,Greenville/Spartanburg,GuatemalaCity,Guayaquil,
Jacksonville(FL),Lima,Louisville,Managua,Philadelphia,Quito,
SanJosédeCostaRica,SanPedroSula,SantoDomingo,SaoPaulo-
Viracopos,WestPalmBeach
VenezolanaServiciosExpresos Caracas,Maracaibo
WorldAirwaysCargo Bogotá,Caracas,Cali,Lima,Manaus,Quito
Source: Airports Worldwide, 2017. Retrieved from http://www.airports-worldwide.com/usa/florida/miami_international_florida.htm.
BQN Analysis Report 25
OneinterestingpointabouttheMIAcargoisthatseven(7)outofthirty-four(34)cargoairlines
carry merchandise to the United States, as shown in Table 2.6. The other cargo airlines distribute
merchandisetotheUSVirginIslands,Europe,SouthandCentralAmerica,Alaska,andCanada,among
otherlocations.CenturionAirCargoandFedExExpresstransportmerchandisefromMiamitoSanJuan,
PuertoRico(AirportsWorldwide,2017).
In pursuit of the BQN expansion andwith focus on turning it into Puerto Rico’smain cargo
airport,amasterplanhasbeendevelopedthatconsiderstheexpansionofthecurrentrunway,along
withother infrastructure constructions thatwouldallow it to competedirectlywith the LuisMuñoz
MarínInternationalAirportinSanJuan,PR.In2012,thePuertoRicoDepartmentofTransportationand
PublicWorkspublishedatransportationplanthatincludedtheBQN,statingthat“toimprovecapacity
we must increase the number and size of freeways and traffic services, and also include new
construction, expansion of existing facilities and the redesign of specific locations”.2Both airports
receivedfederalfunds(AIPGrants)toincreaseitscapacityandimproveitsservicesandinfrastructure.
From2006to2016 (fiscal years)BQN received22.5milliondollars and theMIA135.2milliondollars
(figuresnotadjustedbyinflation).3
AccordingtotheFederalAviationAdministration (FAA), in2015thetotalcargoweightof the
Miami InternationalAirport (MIA)was 7,630,761,702pounds, falling in the fifth positionof the 132
airports studied. However, the Rafael Hernández Airport (BQN) had a total cargo weight of
713,335,570poundsandtheLuisMuñozMarín InternationalAirporthad1,008,603,300pounds.The
differencebetweenthecargosmayrespondtothesizeofeachhub:thelargerthehub,thegreaterthe
cargo.Intermsofgrowth,thehighestincreasetookplaceinSJU(18.62%)whencomparingthethree
2 Puerto Rico Transportation and Public Works Department (February 2012). Aguadilla Urbanized Area-2032 Long Range Transportation Plan. Retrieved from: http://www.dtop.gov.pr/carretera/det_content.asp?cn_id=254 3 Retrieved from: https://www.faa.gov/airports/aip/grant_histories/
BQN Analysis Report 26
airports in this study. The second highest increase was in BQN with 8.00% and the lowest rate
correspondedtotheMIAwith6.09%(Table2.7).
Table2.7Cargo,inpounds,oftheMIA,SJU,andBQNAirports(FY2014vsFY2015)
Rank ST LocIDAirport
NameCity
Svc
LvlHub
2015Landed
Weight
(pounds)
2014Landed
Weight
(pounds)
%
Change
5 FL MIAMiami
InternationalMiami P L 7,630,761,702 7,192,790,882 6.09%
24 PR SJU
LuisMuñoz
Marín
International
SanJuan P M 1,008,603,300 850,270,758 18.62%
34 PR BQNRafael
HernándezAguadilla P N 713,335,570 660,524,330 8.00%
Source:FederalAviationAdministration,2017.
AccordingtotheFederalAviationAdministration(FAA),in2015thetotalenplanementsofthe
Miami International Airport (MIA) were 20,986,349, obtaining the eleventh position of the 1,555
airportsstudied.However,theRafaelHernándezAirport(BQN)hadatotalof202,197enplanements
andtheLuisMuñozMarínInternationalAirporthad4,187,888.Intermsofgrowth,thehighestincrease
tookplace in theMIA (7.78%)whenconsidering the threeairports in this study.Thesecondhighest
wasSJUwith1.09%.ThelowestratecorrespondedtoBQNwith-4.73%(Table2.8).
BQN Analysis Report 27
Table2.8EnplanementsoftheMIA,SJU,andBQNAirports(FY2014vsFY2015)
Rank ST LocIDAirport
NameCity
Svc
LvlHub
2015
Enplanements
2014
Enplanements
%
Change
11 FL MIAMiami
InternationalMiami P L 20,986,349 19,471,466 7.78%
43 PR SJU
LuisMuñoz
Marín
International
SanJuan P M 4,233,638 4,187,888 1.09%
182 PR BQNRafael
HernándezAguadilla P N 202,197 212,239 -4.73%
Source:FederalAviationAdministration,2017.
From 1990 to 2016, the Miami International Airport (MIA) had increased the total of
enplanementsandtotalaircarriers,asshowninFigure2.1.Eventhoughtotalenplanementsincreased
from11.7millionin1990to15.9millionin2000,theydecreasedto13millionin2002.However,since
2002, ithasbeen increasingagain, reaching19.8million in2016.The trendsof the totalair carriers
weredifferentduringtheperiods.BQN,ontheotherhand,had10,335aircarriersin1990,increasing
to140,791in1995.Then,in1999,thequantitydecreasedto17,472andin2008,thequantityincreased
to238,354.In2015,theamountofaircarriersdecreasedto198,679,andagainincreasedto244,242in
2016.
BQN Analysis Report 28
Figure2.1EnplanementsintheBQNandMIA(CY1990toCY2016*)
Source: Federal Aviation Administration, Terminal Area Forecast (TAF), 2017. Note: (*) = The 2016 data is estimated.
According to Figure 2.2, themilitary enplanements in Rafael Hernández Airport in Aguadilla,
PuertoRico,werehigherthanintheMiamiInternationalAirport,exceptin1998,2002,and2007.Since
2006 until 2007, the quantity in this airport decreased from 12,962 to 624, respectively. InMiami
InternationalAirport,since1990until2016,thetotalmilitaryenplanementsdecreasedfrom7,178to
1,115,respectively.
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
0
50,000
100,000
150,000
200,000
250,000
300,000
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
20
15
2016
*
Enpl
anem
ents
in M
IA
Enpl
anem
ents
in B
QN
Period (In calendar year)
Aguadilla Miami
BQN Analysis Report 29
Figure2.2MilitaryEnplanements,ItinerantOperations(CY1990toCY2016*)
Source: Federal Aviation Administration, Terminal Area Forecast (TAF), 2017. Note: (*) = The 2016 data is estimated.
The FAA prepared Capacity Profiles for theMIA and other airports in theUnited States; the
international airports of Puerto Rico were not included. The MIA Capacity Profile details that the
“estimatedcapacityrate inMarginalConditions” is148operationsperhour,whiletheMIAreported
132 in 2014. The “estimated capacity rate in Instrument Conditions” is 148 operations per hour,
whilethe MIAreported in 2014 was 104. The “estimated capacity rate in Visual Conditions” is 150
operations per hour; however, the airport reported 132 in 2014. Finally, a capacity rate of 106
operationsperhourisestimatedaspartoffutureimprovements.4
4Retrieved from: https://www.faa.gov/airports/planning_capacity/profiles/media/MIA-Airport-Capacity-Profile-2014.pdf
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
1990
19
91
1992
19
93
1994
19
95
1996
19
97
1998
19
99
2000
20
01
2002
20
03
2004
20
05
2006
20
07
2008
20
09
2010
20
11
2012
20
13
2014
20
15
2016
*
Mili
tary
Enp
lane
men
ts
Period (In calendar year)
Aguadilla Miami
BQN Analysis Report 30
Table2.9EfficiencyStatisticsoftheMiamiInternationalAirport(MIA)(FY2009toFY2016)
PerformanceIndicator 2009 2010 2011 2012 2013 2014 2015 2016
AverageGateArrival
Delay
(MinutesperFlight)
7.1 4.5 1.9 -0.1 1.6 1.1 3.9 4.5
AverageNumberof
Level-offsperFlight
(CountsperFlight)
* * 2.2 2.2 2.2 2.1 2.1 2.1
DistanceinLevelFlight
fromTopofDescentto
RunwayThreshold
(NauticalMilesper
Flight)
* * 27.3 29.2 29.3 29.2 28.3 29.3
EffectiveGate-to-Gate
Time
(MinutesperFlight)
169.4 167.1 163.1 160.1 159.9 159.0 172.9 180.3
Tax-InTime
(MinutesperFlight)8.7 8.7 8.0 8.1 8.2 7.7 9.2 10.2
Tax-OutTime
(MinutesperFlight)16.8 17.0 16.9 16.6 16.8 17.3 18.2 19.2
Source: Federal Aviation Administration, NextGen, 2017. Notes: 1) (*) = Consistent data for the time period prior to FY 2011 are not available. 2) “As described by the International Civil Aviation Organization (ICAO), efficiency addresses the operational and economic cost-effectiveness of gate-to-gate flight operations from a single-flight perspective. In all phases of flight, airspace users want to depart and arrive at the times they select and fly the trajectory they determine to be optimum.”
BQN Analysis Report 31
Toimproveday-to-dayoperations,theUnitedStatesDepartmentofTransportationcreatedthe
NextGENtool.Itprovidesefficiencyandcapacitystatisticsfortheparticipatingairports.Oneofthemis
theMIA,butnotBQN(Tables2.9and2.10).
AccordingtoTable2.9,theaveragegatearrivaldelayoftheMiamiInternationalAirport
decreasedfrom7.1minutesperflightin2009,to4.5in2016.Theaveragenumberoflevel-offs
per flightwas stable, close to 2.2 and 2.1 counts per flight from2011 to 2016. In 2011, the
distance in level flight from top of descent to runway thresholdwas 27.3 nauticalmiles per
flight,while in 2016, it increased to 29.3. The effective gate-to-gate time increasedbetween
2009and2016,from169.4to180.3minutesperflight.Thetax-intimeincreasedfrom8.7to
10.2minutesperflightintheperiod2009-2016.Ontheotherhand,thetax-outtimeincreased
from16.8to19.2minutesperflightbetween2009and2016.
Table2.10CapacityStatisticsoftheMiamiInternationalAirport(MIA)(FY2009toFY2016)
PerformanceIndicator 2009 2010 2011 2012 2013 2014 2015 2016
Average Daily Capacity (Number of Operations)
2,062 2,015 2,071 2,037 2,050 1,987 2,052 2,042
Average Hourly Capacity During Instrument Meteorological Conditions (IMC) (Number of Operations)
121 111 118 109 116 108 108 108
Source: Federal Aviation Administration, NextGen, 2017. Note: “As described by the International Civil Aviation Organization (ICAO): The global Air Traffic Management (ATM) system should exploit the inherent capacity to meet airspace user demands at peak times and locations while minimizing restrictions on traffic flow. ICAO also notes: The ATM system must be resilient to service disruption and the resulting temporary loss of capacity.”
BQN Analysis Report 32
TheFederalAviationAdministration(FAA)calculatestwocapacitystatistics forsomeairports.
From 2009 to 2016, the average daily capacity in number of operations of theMiami International
Airport(MIA)decreasedfrom2,062to2,042,asshowninTable2.10.Thelowestaverageoccurredin
2014with1,987andthehighestaveragearosein2011with2,071.Similarly,intheperiod2009-2016,
the average hourly capacity during instrument meteorological conditions in number of operations
decreasedfrom121to108.
Inconclusion,theBQNcouldbebetterpositionediftheairportisenhanced,takingadvantage
oftheFreeTradeZoneandoftheaerospacenichejustcreatedinAguadilla.BQNisagreatresourcefor
theexportofPuertoRicogoods.TheMIAisanairportthathadanacceleratedgrowthinthelastyears.
However, ithasbeensaid that, toprovideagoodservice,airports shouldnotoverrun itsmaximum
capacity utilization. In this direction, the United States Department of Transportation is providing
assistanceand theFAA in2015 (fiscal year)hasdesignated2.7milliondollars to conductanAirport
MasterPlanStudy.
IV. AMENDMENTSINTHECABOTAGELAWSFORALASKAANDITSPOTENTIALIMPACTINPUERTO
RICO
1. BackgroundReview
Itwouldbehelpfultostartthissectionbydefiningwhatcabotageisanditsorigin.Cabotageis
maritime, fluvial, lacustrine, ground and air transportation of persons, goods, and national or
nationalizedluggage,betweendifferentpartsofacountry’sterritorybyvehiclesregisteredinanother
country (Lexicoon, 2017). In naval terms, cabotage is the transportation of cargo and passengers
BQN Analysis Report 33
between ports of the same country, sailing relatively near the coast. Etymologically, it means to
navigate cape in cape and comes from the French word “caboter”, which refers to the navigation
formedbetweenheadlands.Thisreportemphasizestheaircabotage lawsandtheirconsequences in
thedevelopmentofaircargotransportation.
ForthedevelopmentofaircargointheAnchorageInternationalAirportinAlaska,senatorTed
Stevensdecidedin2003topresentamendmentstoexemptAnchorageairportfromtheaircabotage
laws that limited economic development in the area. In general, the purpose was to create and
maintainjobsandenhancethecargocapacity.Theamendmentstatedthefollowing:
CargoinAlaska:
I. Ingeneral,eligiblecargotakenonoroffanyaircraftataplace inAlaska inthecourseof
transportationof thatcargobyanycombinationof twoormoreaircarriersor foreignair
carriersineitherdirectionbetweenaplaceintheUnitedStates(US)andaplaceoutsidethe
US,shallnotbedeemedtohavebrokenits international journeyin,betakenonin,orbe
destinedforAlaska.
II. Eligible cargo - for purposes of paragraph (I), the term “eligible cargo” means cargo
transportedbetweenAlaskaandanyotherplace intheUSonaforeignaircarrier(having
been transported from, or thereafter being transported to a place outside the US on a
differentaircarrierorforeignaircarrier)thatiscarried:
a. underthecodeofaUSaircarrierprovidingairtransportationtoAlaska;b. onanaircarrierwaybillofUSaircarrierprovidingairtransportationtoAlaska;orc. underatermarrangementorblockspaceagreementwithanaircarrier;d. underthecodeofaUSaircarrierforpurposesoftransportationwithintheUS.
Stevens(2003-2004)explainedtothePresidentoftheUnitedStatesthat:
BQN Analysis Report 34
“Thisamendmentdealswithprotectingexisting jobsandcreatingnew jobson theground in
Alaskarelatingtotheairport.Anchorageisthetop-rankedcargoairportinNorthAmerica:600
widebodycargocarriersperweek;19airlinesprovidingall-cargomaindeck freighterservice
throughAnchorage;9hoursbyairfrom95percentoftheindustrializedworld;3000milesfrom
Tokyo; 3000miles fromNew York city; 4000miles from London; 4000miles from Frankfurt;
4400milesfromHongKong…Foreignairlinesprovidemuchofthisinternationalcargolifttoand
fromtheUSthroughAnchorage.FederallawallowstheseplanestolandinAlaska,creatingan
enormousnumberofjobsontheground.Federallaw,ascurrentlyinterpreted,doesnotallow
U.S.carrierstouseexcesscapacityontheirforeignpartnerstomoveinternationalcargofrom
Anchoragetothelower48.Theforeigncarriermustmakethefulltripbyitself.Itisprohibited
fromtransferringcargotoorfromaU.S.carrierflyingtheinternationallegofthejourney”.
Stevens(2003-2004)alsohighlightedthefollowing:
“Anchorage is under attack from foreign cargo hubs seeking to exploit this weakness. Cities
suchasTashkent,Kharbarovsk,andAnadyr inAsiaandCalgaryandVancouver inCanadaare
aggressively pursuing the cargo carriers that Anchorage now serves. TheUS is losing jobs to
foreign countriesbecauseof it. This amendmentwill reverse thatdecline.American carriers,
both cargo carriers and passenger carriers, which accept cargo will make use of this
amendment invariousways: relocationofsortandtransferoperations fromAsiabacktothe
UnitedStates;enhancedservicetoUS,Asian,andEuropeancities;increasedopportunitiesfor
integrated logisticsproductssoldbyUScompanies,andmoreopportunities tostrengthenUS
carriers through international partnering. This amendment does not create more flights by
foreigncarriers.ItdoesnotreducethenumberofflightsflownbyUScarriers.Allcargomoving
underthisauthoritymustbeshippedonaUScodeshareorsimilararrangement,suchasaUS
BQN Analysis Report 35
waybill. It preservesand createsAmerican jobs in the increasingly important global air cargo
sector”.
Brehmer (2014), in the article Rare cargo options offered at Stevens Airport, which was
publishedintheAlaskaJournalofCommercesaid,thatthankstothelittletwo-paragraphamendment
bythesenatorTedStevens,presentedandapprovedin2003,nowAnchorageairportisopentomore
businessopportunities thanvirtually anyotherhubonEarth.Healsoquoted theAnchorageAirport
managerJohnParrotthatdelineated,“Whatweweredoingistryingtofindwaystocontributetothe
efficiency of the overall global supply, specifically the supply chain that connects Asia and North
America”(Parrott,andinBrehmer,2014).
AUSDepartmentofTransportationexemptionforAlaskaintheFederalAviationAdministration
authorizationpassedin2004.Thisallowedcargolandedinthestateonitswaytoandfromthelower
48 states to be shuffled among planes and carriers at that time without being subject to federal
regulations. It is still considered tobeon its international journey. “Nowhereelse in theworld, ina
significant country, is a foreign carrier allowed topickup cargowithin a country, take it to another
placeinthatcountryandoffloadit,”Parrott(nd)inBrehmer(2014)argued.
About the location and the services thatAnchoragebrings toother countries,Duerre (2013)
statesthatintheAnchorageAirportmostofthetransportcargocomesfromAsiancountries.Parrott
(nd)asquotedbyDuerre(2013)alsoexpressesthat“AnchorageisstrategicallylocatedbetweenAsia
andthelower48statesasmostwide-bodycargoplanescarryonlyenoughfueltotravel4,000miles.
ForAsianproducts to reach theeast coast, cargoplanesmust travel twice thatdistance,butAlaska
existsin-between.So,toeffectivelyutilizetheseaircraftsallovertheworldinallmarkets,youneedan
airplanethatwillgoabout4,000milesandworkallovertheglobeaslongaswearehereasafueling
BQN Analysis Report 36
stop”.TheexceptionoftheaircabotagelawsbringsgrowthopportunitiesinAnchorageforaprocess
calledcargo-transfer.Itallowsforeigncarrierstoexchangecargoamongtheirownfleetortotransfer
cargoamongdifferentcarrierswithinUSsoil.
OneofthemostinterestingpointsthatParrot(nd)inDuerre(2013)emphasizesisthat,“TheUS
DepartmentofTransportationrecognizesthatAlaskaispartoftheUnitedStates,butitissodifferent
geographically that it can, in some cases, be treated as a separate country”. This point reflects the
similarities between Alaska and Puerto Rico (PR) in many respects. Puerto Rico is geographically
separated to the mainland, with an economic structure that differs significantly from the US. The
condition of being an island forces Puerto Rico to be extremely dependent on marine and air
transportation to trade in this globalized world. Cabotage laws have not allowed Puerto Rico to
contractforeigncarriersinordertotradewiththeUS,thefirsttradepartnerofPuertoRico.
PuertoRicoisgeographicallywelllocatedin“themiddle”ofAmerica.Thus,itisrelativelyeasy
to fly from Puerto Rico to the US, Europe, South America, Central America, and the Caribbean. A
“Stevens Amendment for Puerto Rico” would help economic development in this economically
depressed island. This would allow the entry of new air cargo companies, a greater usage of its
capacityforthebenefitoftheinternationaltransport,andthecreationofnewjobs.Inadditiontothe
benefitsthattheeconomyofPuertoRicocouldobtain,theseforeignairlineswouldnotbepenalized
forstoppinginPuertoRico,whichcreatesamutualprofitablerelationship.
InaletterwrittenbyLectora(2016),thePuertoRicoTaskForceCommitteeisaskedtoconsider
an amend, such as the Stevens Amendment to reestablish a “transit-without-visa” program on the
island.Hesupportshisargumentbyexplainingthat:
BQN Analysis Report 37
“Alaska and Puerto Rico share important similarities regarding the air cargo industry, which
justify the application of the Stevens Amendment to Puerto Rico. Both are geographically
isolatedfromthemainland;therefore,bothareheavilydependenton-airtransportation.Both
havean importantstrategic locationthat is idealforan internationalaircargohub.However,
prior to 2004 Alaska could not fully utilize this geographic location advantage becausemost
cargoflightswereoverflyingthestate;thesameishappeninginPuertoRiconow.Furthermore,
planesthatmakerefuelingstopsinPuertoRicoorpickupcargocannottakefulladvantageof
cargo transferoptionsdue to limited legalauthorityandcabotage laws”. Inaddition, Lectora
(2016)explainedthat:
“The Stevens Amendment leveled the playing field for Alaska against competing airports,
makingAlaskamore attractive to domestic and foreign air carriers for cargo flights refueling
andtransfers.Alaskaisnowamajorinternationalaircargohub.Thesameshouldbedonefor
Puerto Rico. Implementing the Stevens Amendment will attract domestic and foreign air
carriersthatcouldcombinetheirnetworksontheIslandbytransferringandconsolidatingtheir
cargosbetweenairplanesandbetweenairlines.Thus,helpingcreateamajoraircargohubto
serveairtraderoutesbetweenNorthAmerica/SouthAmericaandEurope/SouthAmericaand
theMiddleEast/SouthAmerica(sic)”.
PuertoRico is indireneedofneweconomicgrowthinitiativessuchastheonesgiventoAlaskawith
theStevensAmendment.Villamil(2014)inthearticleLeydeCabotajebeneficiasoloaEstadosUnidosy
noalaIsla(CabotagelawbenefitsonlytheUnitedStatesandnottheIsland)statedthat"Wearenow
inwhatIcallan‘institutionalgap’,wherethelawsoftheUnitedStatesareadoptedtofulfillaneedfor
thatcountry,butwhenapplyingthelawtoPuertoRico,itisnotnecessarilycompatiblewithourreality,
whichresultsinunexpectedandnon-beneficialimpacts".
BQN Analysis Report 38
2. PotentialImpactofAmendingAirCabotageLawsforPuertoRico
ThereareproposalstoamendfederalregulationswiththeobjectiveofexcludingPuertoRicoof
thefederalaircabotagelaws,asachievedinAlaska.IfthisexceptionappliestotheRafaelHernández
AirportinAguadilla,whichhasthepotentialcapacityofhandlingrelativelylargeoperations,agreater
numberofpassengersandcargocouldbetransportedinthiswell-locatedairport.Theproposalwould
allowtheestablishmentofnewindustriesthatinturn,wouldcreatenewjobsandnewmoneythatwill
beinjectedintotheeconomy.Inaddition, itcouldbeofgreathelpinsettingupnewbusinessesand
subsequentjobcreation.
Figure3.1CargoandPassengersoftheTedStevensAnchorageInternationalAirport(1997to2015)
Source: Forecast Technical Report Alaska International Airport System, May 2013, 1995 to 1999 data; Activity Summary Report FY2000-2009 and 2010-2015.
InFigure3.1wecanobservethegrowththatthetotalpassengersandcargo
experiencedinAlaskaaftertheStevensAmendmentin2003(redline).Thereweresome
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
2,500,000
3,000,000
3,500,000
4,000,000
4,500,000
5,000,000
5,500,000
6,000,000
6,500,000
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Car
go (L
BS
in th
ousa
nds)
Pass
enge
rs
Period (In years)
Passengers
Cargo (LBS IN THOUSANDS)
BQN Analysis Report 39
cyclicalmovementsaround2010thatmayrespondtoexternalfactors,butingeneraltherewas
asolidgrowthinbothserieswhenweconsideredthewholeperiod1997-2015.
Infact,inTable3.1weillustratethegrowthobtainedaftertheStevensAmendment.Afterthe
cabotageamendmentsinAlaska,bothaveragecargoandaveragepassengersgrewincomparisonto
theimmediateperiodbefore.Theaverageannualcargogrewby33.1%fromtheperiod1997-2002to
theperiod2003-2009.Inthecaseofpassengers,thegrowthamountedto18%annually.
Table3.1CargoandPassengers’GrowthRateafterCabotageChanges(1997-2002and2003-2009)
Description 1997-2002 2003-2009 GrowthRate
Averageofannual
cargo(LBSin
thousands)
3,466,951 4,614,700 33.1%
Averageofannual
passengers5,016,209 5,904,590 17.7%
Source: Forecast Technical Report Alaska International Airport System, May 2013, 1995 to 1999 data; Activity Summary Report FY2000-2009 and 2010-2015.
BQN Analysis Report 40
Figure3.2EstimationofincreasesinBQNbasedongrowthratesinAlaskaafteramendments
Source: Forecast Technical Report Alaska International Airport System, May 2013, 1995 to 1999 data; Activity Summary Report FY2000-2009 and 2010-2015. Note: The * indicates projections
BasedontheAlaskaexperience,bothpassengersandcargofigureswouldincreaseinthenext
eleven(11)years.However,itisimportanttopointoutthatthisforecastedprocessyieldsconservative
figures for the following reasons: Projections shown in Figure 3.2 are solely based on the Alaska
experience;However,forsomeyearstheAlaskagrowthratesafteramendmentswerenegativewhile
theFederalAviationAdministration5projectedthatthegrowthrates,withoutassuminganychangesin
thecabotagelaws,forthefollowing11yearsinBQNwouldbecloseto1%.
5 The Federal Aviation Administration provides a forecast for BQN terminal in their webpage https://www.faa.gov/data_research/aviation/taf/
-
100,000
200,000
300,000
400,000
500,000
600,000
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000 Passengers (right axis)
Cargo (left axis)
BQN Analysis Report 41
Table3.2PotentialEconomicImpactofNewPassengersinBQNBasedonAlaska’sexperience,
2016-2028
NewPassengersfrom2016to2028 289,603
AverageExpendituresbyVisitor(in2015) $757.30
AccumulatedNewDirectEconomicActivity $219.3million
AccumulatedDirectandIndirectEconomic
ActivityGenerated $403.5million
AccumulatedDirectandIndirect
EmploymentGenerated 6,045
Source:Author’scalculationsbasedonthePlanningBoardofPuertoRico
Byassumingthatthecabotageamendmentswouldhavecreatedasimilar impact inBQN,we
canproject thepotentialeconomic impactof suchamendmentsbasedon theAlaskaexperience.By
assumingso,cabotageamendmentscouldpotentiallyincreasevisitorstoPuertoRicoby17%annually
(from Table 3.1, with approximates of 290 thousand of accumulated additional visitors by 2028).
AccordingtothePlanningBoard,thetotalaverageexpendituresofvisitorswere$757dollarsin2015.
Under such scenario, the direct economic activity would represent $219.3 million dollars and the
indirecteconomicactivity(usingthe2013inputoutputmatrix)wouldamountto$184.2milliondollars.
Using input-output projections, we find that the total employment generated in Puerto Rico could
approximate 6,045. These are conservative figures because we are not considering the economic
activitygeneratedbyadditionalcargomovementandweareonlyprojectingeconomic impact inthe
Aguadillaairport,disregardingthelargestairportinPuertoRico(SJU).However,itisimportanttopoint
outthateventhisconservativeestimationofaccumulatedemploymentgeneration,isgreaterthanthe
current totalnumberofworkers inmunicipalities in theNorthwestern regionofPuertoRico (where
BQN Analysis Report 42
BQN is located) such as Quebradillas (whose employed population was 5,967 in 2014) and Rincón
(whoseemployedpopulationwas4,268).
IfPuertoRicoadheres to free trade, liberated fromthecabotage federal lawsas inAlaska, it
could have even more opportunities to the immediate economic activity: interaction with other
countries,growthoftechnologicalcapacity,andimprovementofitscompetitiveness,amongothers.
BQN Analysis Report 43
V. REFERENCES
Airports-Worldwide.(2017).RafaelHernándezAirport.Retrievedfromhttp://www.airports-
worldwide.com/puerto_rico/rafael_hernandez_puerto_rico.php.
Albarran,R.(2014).LasleyesdecabotajeenPuertoRico.Prezi.Retrievedfrom
https://prezi.com/rdhu9bjvehcc/las-leyes-de-cabotaje-en-puerto-rico/
Brehmer,E.(2014,November19).RarecargooptionsofferedatStevensAirport.AlaskaJournalof
Commerce.Retrievedfromhttp://www.alaskajournal.com/business-and-finance/2014-11-
19/rare-cargo-options-offered-stevens-airport#.WOt_dFXyuUk
Duerre,A.(2013,April2).TedSteven’sAirportManagerExcitedaboutFutureofAirCargo.Alaska
publicmedia.Retrievedfromhttp://www.alaskapublic.org/2013/04/02/ted-stevens-airport-
manager-excited-about-future-of-air-cargo/
Lectora,J.(2016,December12).Submission1:UnitedStatedSenateCommitteeonFinance.Retrieved
fromhttps://www.finance.senate.gov/imo/media/doc/Jeronimo%20Lectora%20
(Submission%201)EDITED.pdf
Lexicoon.(2017).Cabotaje.LexicoonOnlineEdition3.9.Retrievedfromhttp://lexicoon.org/es/cabotaje
Stevens,T.(2003-2004).S.Amdt.923toS.824.Congress.gov.Retrievedfrom
https://www.congress.gov/amendment/108th-congress/senate-amendment/923
Villamil,J.(2014).LeydeCabotajebeneficiasoloaEstadosUnidosynoalaIsla. MetroOnline.
Retrievedfromhttps://www.metro.pr/pr/economia/2014/01/30/ley-cabotaje-beneficia-
estados-unidos-no-isla.html