recommendations from the strategic planning process december 2014 recommendations from the strategic...
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Recommendations from the Strategic Planning Process
December 2014
Recommendations from the Strategic Planning Process
December 2014
CMI Task Force Accomplishments
CMI Task Force Accomplishments
Page 2
Overview of Accomplishments
Lessons Learned Reality of Consumer Behavior
Strategic Recommendations Action Items for the Short and Long Term
Air Service Development Service Targets Development Strategy
Marketing and Branding Re-Connecting the Airport with the Region
The Task Force’s Ongoing Mission Educating the Community
Page 4
Free Parking Doesn’t Impact Travelers
CMI: 33%
ORD: 16%
MDW: 9%
BMI: 6%
IND: 35%SPI: 1%
Source: Champaign/Urbana True Market Study; Sixel Consulting Group
People don’t use BMI Free parking does not sway
consumers Its all about fare and
service
Page 5
Parking Rate Change Has Little Consumer Impact
Rate Change Forecast
Source: Sixel Consulting Group Forecast for Parking Revenue
Loss of 3.5% of parking customers. Increase in parking revenue of $131,131 in first year.
New Daily Rate $7 New Weekly Rate (Max) $42Daily Rate Change $2 Weekly Rate Change $7
Change/Parking Days -3.5% Change/Long Term Cust. -3.5%Long Term Days 70,056.5 Long Term Customers 17,514.1
Long Term Revenue $490,395 Change in L/T Revenue $131,131Short Term Revenue $95,501 Change in S/T Revenue $0
Total Revenue $585,896 Change in Total Revenue $131,131
Page 6
Willard Retains Well in Immediate Area
Passenger Retention by Airport, Higher Retention Represented in Red
CM
I R
ete
nti
on
IND
Rete
ntio
nB
MI R
ete
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People in Champaign Urbana Don’t‘ Use BMI
Indianapolis Captures Many More than Central Illinois Airports
Page 7
Willard: Low Costs and High Revenue
Peer Market Comparisons
Source: FAA Form 127, Fiscal Year 2013
Non-Hub Airport Average: $8.58
Willard Airport: $4.89
Peoria, IL (PIA) $3.19
Bloomington/Normal, IL (BMI) $1.89
Lansing, MI (LAN) $15.69
Rochester, MN (RST) $4.68
San Luis Obispo, CA (SBP) $6.29
State College, PA (SCE) $6.31
Springfield, IL (SPI) $1.77
Source: FAA Form 127
Fiscal Year 2013
Cost per Enplanement
Peer Airports (Ranked by Enplanements)
Willard Airport: $10.28
Peoria, IL (PIA) $4.74
Bloomington/Normal, IL (BMI) $4.45
Lansing, MI (LAN) $11.23
Rochester, MN (RST) $4.94
San Luis Obispo, CA (SBP) $11.40
State College, PA (SCE) $8.17
Springfield, IL (SPI) $10.77
Source: FAA Form 127
Revenue per Enplanement
Fiscal Year 2013
Peer Airports (Ranked by Enplanements)
Page 8
People Love This Airport
Yelp Reviews
Short QueuesFriendly Personnel
“No lines and who needs an executive lounge when you have free WiFi and the whole terminal to yourself?”
“This airport makes flying pleasurable (or at least tolerable).”
Boarding is efficient Plenty of rental cars
No lines No crowds
Close to campus
Convenient
Cute little airport…
Unchanging: “I will always love CMI”
Page 10
New Airport Management
Develop and release a standard RFP for a management firm
Develop a job description for an airport CEO
New authority for an airport executive director
Ensure the director is an integral part of the community
Page 11
Establish an Airport Advisory Committee
12-member committee of community leaders Representation:
Willard Airport Leadership/Management Tenant Representative Airline Representative Pilot Representative
University of Illinois at Urbana-Champaign Representative
City of Champaign Representative City of Urbana Representative City of Savoy Representative Champaign County Representative Champaign Co. Economic Development Corp. Rep. Champaign County Chamber of Commerce
Large Business Representative Small Business Representative
Visit Champaign County Representative
Page 12
Make Ground Transportation More Efficient
Automate parking Two a ticket machines at entrance. One automated exit and one manned booth.
Work with Champaign and Urbana for new taxi licensing requirements, including:
More stringent appearance standards to taxis; More stringent driver training in customer service; Regulations concerning the acceptance of credit cards.
Ensure MTD’s Airbus service continues. Work to align schedules with flight operations.
Page 13
Build a New Rental Car Service Facility
The current service facility for rental cars is inadequate.
The development of a permanent rental car service facility is already in Willard Airport’s land use plan
Located at or near the spot of current servicing; The facility will include an automatic car wash.
Cost estimate ranges from $600,000 on the low end to $1 million on the high end.
Paid through rental car fees/consumers.
Page 14
Protect the Airport for the Long Term
Perform land capacity analysis to determine what existing infrastructure can support;
Work with Savoy, the County and other jurisdictions to adopt land use controls to protect the airport;
Prioritize land acquisition based on runway protection and development;
Improve wayfinding and beautification;
Prioritize airport land acquisition: Route 45, Old Church, Interstate 57;
Utilize the University of Illinois Foundation to acquire strategic parcels for non-airport related land for development.
Page 15
Secure Funding for New Tower
The current tower is functional, but is lower in elevation than currently required.
The FAA has completed all design work on a new tower.
The projected cost is $10 million. The FAA has paid for the design, but has not allocated funding to actually build the tower. The airport will not be required to provide any funding for the construction or operation of the facility.
Page 18 Source: Sixel Consulting Group Analysis
BMI
SPICMI
American
US Airways
PIAMLI
Dallas/Ft. Worth
Chicago O’Hare
Miami
Charlotte
Washington National
New York Kennedy
UNLIKELY
UNLIKELY
POSSIBLE
LIKELY
There is Significant Competition for Resources
Page 20
An Airport Can Use Standard Incentives
Scope of the program: Revenue guarantee
One-time, $500,000 SCASD Grant. Fee waivers
Landing fees waived for two years; Terminal rent waived for two years.
Marketing support $100,000 in cash in first calendar year; $50,000 in cash in second calendar year.
Program written in strategic plan has been vetted against FAA standards and is compliant.
Page 21
A Community Coalition Will Be Critical
Regional air service alliance. Separate from the University, aligned with the airport’s
goals. It should include members from:
University of Illinois Champaign Urbana Savoy Rantoul, Champaign County Regional economic development agencies Regional chambers of commerce Regional visitors’ bureaus Major business leaders
501c4 non-profit organization. Funding goal per route: $1 million in guarantees.
Page 23
New Brand Will Rollout in Early 2015
Fly Champaign-Urbana, C-U at the beach; Fly Champaign-Urbana, C-U in New York City; Fly Champaign-Urbana, C-U in Dallas/Ft. Worth, with daily
flights Fly Champaign-Urbana, C-U in Europe.
Fly Champaign-UrbanaUniversity of Illinois – Willard Airport
Page 24
Marketing Will Launch in Early 2015
Brand re-launch in region through traditional media: Targeted on-line; Website enhancement; TV/Radio/Print; Speaker circuit;
Continue direct airline outreach and communication; Develop air service marketing toolkit; Identify event marketing opportunities; Corporate sales meetings; Outreach throughout region; E-mail and targeted marketing based on outreach.
Page 26
The Mission of the Task Force
Spread the Message of Your Work Detail the recommendations Illustrate the value of this process Speak to as many groups as possible
Detail the Changes Taking Place Stay informed as recommendations are enacted Help explain value of changes
Be Ambassadors for the Airport’s Message Check “Fly C-U” First! Be a part of the solution by using the airport Understand the value of local service
CMI Task Force Accomplishments
Prepared by
Sixel Consulting Group, Inc.
Jack PenningExecutive Director, Strategy
CMI Task Force Accomplishments
Prepared by
Sixel Consulting Group, Inc.
Jack PenningExecutive Director, Strategy