Hartford Business Journal

14 Hartford Business Journal • October 5, 2020 • www.HartfordBusiness.com By Sean Teehan steehan@hartfordbusiness.com I t was just over a year ago that Bradley International Airport officials began construction on a $210-million ground transportation center that will eventually house all rental car companies at the airport — elimi- nating the need for shuttle service to off-site locations. During the July 2019 groundbreak- ing ceremony, Gov. Ned Lamont gushed at Bradley's "rapidly rising popularity and ridership," and the importance of the new transportation center as a convenience for travelers. "More and more people through- out New England are recognizing the multiple benefits this airport provides," he said at the time. Oh, how the world has changed since then. As a result of COVID-19, Bradley Airport's passenger traffic is down about 60% from last year, travel to international and domestic destinations is restricted or limited, and car rental companies dependent on airline passengers are hurting, with industry behemoth Hertz filing for bankruptcy in May. Normally, such economic condi- tions might put a major development like the ground transportation center on hold. That's not happening. Instead, the Connecticut Airport Authority (CAA) is moving ahead with the project — scheduled to be com- pleted in 2022 — because it has no choice. The lion's share of the approximately $151 million to fund the ground transportation facility is already bonded out, and the airport's debt repayment plan hinges on fees it will charge rental car companies. The situation has created an uneasy dynamic, with a black swan possibility of all eight rent- al car companies operating at Bradley eventu- ally leaving the airport amid the toughest economic conditions the airline industry has ever faced. That's extremely unlikely to hap- pen, according to CAA Executive Di- rector Kevin Dillon, but the current conditions are a major challenge. However, he and other industry experts say airlines and rental car companies will eventually see a return of customer traffic, averting a scenario that shatters the ground transportation center's intended funding mechanism. In the mean- time, the CAA, which oversees Bradley, is work- ing with rental car companies to lower fees they pay to the airport. "When we do get back to those pre-pandemic levels [of busi- ness], and then resume our growth beyond pre-pandemic levels, this facility is going to be very, very important for our future," Dillon said. "It's still a vital project." Less traffic, fewer rentals The years leading up to the COVID-19 pandemic were good ones for Bradley, with the airport growing passenger traffic for seven consecutive years before March's air-travel arma- geddon. Amid consistent growth at Connecticut's largest airport, the CAA embarked on the ground transportation project to eliminate the need for shuttle service to car rental locations, and add parking spaces. The facility will also be accessible by bus, and could eventually add a rail connection, Dillon said. The CAA last year issued two Rental car companies at Bradley Airport Alamo Avis Budget Dollar Enterprise Hertz National Thrifty Source: CT Airport Authority Turbulent Ride Bradley Airport's $210M ground transportation center faces financial roadblocks Chris Brown, Executive Editor, Auto Rental News Jeffrey Lack, Fitch Ratings Kevin Dillon, executive director of the Connecticut Airport Authority. PHOTO | HBJ FILE

• Cover