CMI Task Force Accomplishments

Report
CMI Task Force Accomplishments
Recommendations from the Strategic Planning Process
December 2014
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 2
Lessons Learned
Free Parking Doesn’t Impact Travelers
ORD: 16%
MDW: 9%
BMI: 6%
CMI: 33%
SPI: 1%
Source: Champaign/Urbana True Market Study; Sixel Consulting Group
Page 4
IND: 35%
People don’t use BMI
Free parking does not sway
consumers
Its all about fare and service
Parking Rate Change Has Little Consumer Impact
Loss of 3.5% of parking customers.
Increase in parking revenue of $131,131 in first year.
Rate Change Forecast
New Daily Rate
Daily Rate Change
Page 5
$7
$2
New Weekly Rate (Max)
Weekly Rate Change
$42
$7
Change/Parking Days
Long Term Days
-3.5% Change/Long Term Cust. -3.5%
70,056.5 Long Term Customers
17,514.1
Long Term Revenue
Short Term Revenue
$490,395 Change in L/T Revenue
$95,501 Change in S/T Revenue
Total Revenue
$585,896 Change in Total Revenue $131,131
Source: Sixel Consulting Group Forecast for Parking Revenue
$131,131
$0
Willard Retains Well in Immediate Area
IND Retention
CMI Retention
Passenger Retention by Airport, Higher Retention Represented in Red
Indianapolis Captures
Many More than Central
Illinois Airports
Page 6
BMI Retention
People in Champaign
Urbana Don’t‘ Use BMI
Willard: Low Costs and High Revenue
Peer Market Comparisons
Cost per Enplanement
Revenue per Enplanement
Fiscal Year 2013
Fiscal Year 2013
Non-Hub Airport Av erage:
$8.58
Willard Airport:
$4.89
Peer Airports (Ranked by Enplanements)
Willard Airport:
Peer Airports (Ranked by Enplanements)
Peoria, IL (PIA)
$4.74
Peoria, IL (PIA)
$3.19
Bloomington/Normal, IL (BMI)
$4.45
Bloomington/Normal, IL (BMI)
$1.89
Lansing, MI (LAN)
$11.23
Lansing, MI (LAN)
$15.69
Rochester, MN (RST)
$4.94
Rochester, MN (RST)
$4.68
San Luis Obispo, CA (SBP)
$11.40
San Luis Obispo, CA (SBP)
$6.29
State College, PA (SCE)
$8.17
State College, PA (SCE)
$6.31
Springfield, IL (SPI)
$10.77
Springfield, IL (SPI)
$1.77
Source: FAA Form 127
Source: FAA Form 127
Page 7
$10.28
Source: FAA Form 127, Fiscal Year 2013
People Love This Airport
Yelp Reviews
Cute little airport…
“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).”
Convenient
Boarding is efficient
Short Queues
No lines
Plenty of rental cars
Close to campus
Unchanging: “I will always love CMI”
Page 8
No crowds
Friendly Personnel
Strategic Recommendations
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 10
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 11
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 12
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 13
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 14
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 15
Air Service Development
There Are Few Airlines to Recruit
1978
1990
2000
Today
Page 17
There is Significant Competition for Resources
Chicago O’Hare
MLI
PIA
BMI
SPI
CMI
New York Kennedy
UNLIKELY
UNLIKELY
Washington National
LIKELY
Charlotte
Dallas/Ft. Worth
American
POSSIBLE
US Airways
Miami
Page 18
Source: Sixel Consulting Group Analysis
Our Targets Will Require Risk Mitigation
Network Service
Low Cost Service
Page 19
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 20
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 21
Marketing and Branding
New Brand Will Rollout in Early 2015
Fly Champaign-Urbana
University of Illinois – Willard Airport
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.
Page 23
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 24
The Task Force’s Ongoing Mission
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
Page 26
CMI Task Force Accomplishments
Prepared by
Sixel Consulting Group, Inc.
Jack Penning
Executive Director, Strategy
[email protected]
sixelconsulting.com

similar documents