30th Annual FAA Aviation Forecast Conference

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30th AnnualFAA Aviation Forecast Conference
Airport Management in Uncertain Times Tony
Storck Director, Air Service Development Baltimor
e/Washington International Airport (BWI)
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Nonstop Scheduled Service at BWI 1985
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Nonstop Scheduled Service at BWI 1995
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Nonstop Scheduled Service at BWI 2005
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Low Fare Growth
Low Cost Carrier Scheduled Weekly Seats as
Percent of Total Airport Seats 1985 - 2005
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The Four Cs

• The Comparative Advantage
• The Cost-Conscious Airport
• The Collaborative Airport
• The Contrary Approach

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The Comparative Advantage

• Stretching Location
• New York
• LGA, JFK, EWR
• PHL, ABE, ISP, HPN, SWF
• The Bay Area
• SJO, SFO, SAC, OAK
• New England
• PVD, BOS, MHT, BDL, ORH
• South Florida
• MIA, FLL, PBI

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The Comparative Advantage

• Multi-Airport Multi-Airport Operators
  Competition

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The Comparative Advantage

• Euro-Copies
• Ryanair has stretched locational advantage
• Miles Market
• Hahn 75 Frankfurt
• Torp 75 Oslo
• Skavsta 55 Stockholm
• Beauvais 65 Paris

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The Comparative Advantage
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The Cost-Conscious Airport

• Airports are fanatical about revenues, yet
  casual about costs.
• Airport Operators, large and small alike, should
  control costs.
• Airlines should concede that some airport costs
  reduce airline operating costs.

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The Cost-Conscious Airport

• Must someday abandon average cost (residual)
  pricing for airfields.
• The Concept of Benefit Sharing
• Pool the Upside

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The Collaborative Airport

• What about the other side of the city pair?
• BWI LHR
• BWI DUB
• BWI SEA
• BWI ???

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The Collaborative Airport

• TAG TEAM
• Approach target airport first
• Pool resources
• Consultants
• Contacts
• Data
• Joint presentation to target carriers

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The Collaborative Airport

• Leverage all public and private resources
• Economic Development Agencies
• Convention Visitors Bureaus
• Other Public/Private Entities

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The Collaborative Airport
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The Contrary Approach

• Prepare for the Flip Side
• Planned Shrinkage
• Hub/Spoke Deconstruction
• Consolidation
• Changing Market Dynamics

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The Contrary Approach

• Scheduled Passenger Carriers
• In 1978 41
• Since 1978 327
• Remaining
• In 1978 13
• Since 1978 76

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The Contrary Approach
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The Contrary Approach

• Chapter 7 and Chapter 11 Planning
• Should not come as a surprise!
• All airport departments (and beyond) are
  affected
• Customer Service
• Media
• Operations and Security
• Finance/Business
• Legal

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Time-tested Strategic Innovations

• Know your Comparative advantages
• Always be Cost-conscious
• Seek and exploit Collaboration
• Keep the Contrary in mind, too

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Thank You!
QUESTIONS
Tony Storck Director, Air Service
Development Baltimore/Washington International
Airport