PRE 070619 Report 2007 AAAEAnnualConference AndExp

Toronto Pearson Chapter Meeting June 26, 2007: 

Toronto Pearson Chapter Meeting June 26, 2007 Report On AAAE Annual Conference and Exposition Washington, D.C. June 10-13, 2007

Conference Sessions: 

Conference Sessions AAAE/IAAE Board Meetings- Eric Simple Solutions-Tim/Bryan Airport Master Planning Trends-Tim Airline Properties Reps.-Bryan Skybus Airlines-Bill Airline Route Planning-Bill JetBlue Airways- Bill

AAAE Board Meeting: 

AAAE Board Meeting Strong financial performance in 2006 and YTD 2007 Net income over $1mil (budget $500K) Goal is "Financial Performance for a Purpose" Focus on government affairs and legislative issues Political fundraising is the norm Organized 5 fundraisers this year that have raised $125K for congressional campaigns. IAAE Canada presentation Small size of organization Financial turnaround from 2005 to present  New course offerings  Successful accreditations  Threat of ACI Accreditation program  

IAAE Board Meeting: 

IAAE Board Meeting Role of IAAE vis a vis AAAE and IAAE Canada IAAE Canada Same issues as previous day in more detail Success of Pearson Chapter Bill gave update on Communications Bryan gave update on Training Discussion on future meetings Need to refocus from US to International  

MWAA Host Event: 

MWAA Host Event Sunday evening social event at Udvar-Hazy Centre. New exhibit hall of Smithsonian Display of aircraft from WW1 fighters to the Space Shuttle Enterprise. Hawker Hurricane and Enola Gay to the first plane to circumnavigate the globe on a non-stop flight. Highlight was police escort from DC to Dulles. 

Simple Solutions: 

Simple Solutions Tom Schmitt President and CEO of FedEx Global Supply Chain Services Arnold Perl Chairman, Memphis-Shelby County Airport Authority Co Authors of: “Simple Solutions: Harness the Power of Passion and Simplicity to Get Results” People Skills: Put people first, every time Collaboration: Think “one big team” Time Management: Align your time with the right goals Execution: Don’t sacrifice “good” now for “better” later. Try to leave every situation a little better than you found it.

Simple Solutions: 

Simple Solutions Team Management: Choose members for optimistic outlook over sheer talent. 3 main approaches to goal achievement. Analytical Imaginative Collaborative Each person has a dominant style from among those 3 traits. When composing your team, always pick people who are better than you in at least one of these areas.

Simple Solutions: 

Simple Solutions Team Management: Don’t entertain a chronic “devil’s advocate”. Look for people who say “that might work if…” as opposed to “that won’t work because…” Getting the best from your team—manage for effect.

Simple Solutions: 

Simple Solutions Work and Time Management: Don’t get Process confused with Results. Be “Directionally Correct”—avoid paralysis by analysis…when you find a solution or approach that looks workable, get started! If you hold out for the perfect answer, you’ll still be looking while your competitor gets the business. Don’t sacrifice “Good” now for “Better” (maybe) later. Time cards for managers. Was my use of time today aligned with my goals? Was my use of time today aligned with my Division’s goals? Was my use of time today aligned with the Organization’s goals?

Airport Master Planning Trends: 

Airport Master Planning Trends Jeff Bilyeu, AAE Airport Director, Lone Star Executive Airports Michael J. Cheyne, AAE, PMP Director, Aviation Planning, Seattle-Tacoma International Airport Steve Peters, AIA Vice President, Carter & Burgess, Inc. Kenneth E. Simmons, AAE Airport Operations Officer, Rapid City Regional Airport

Airport Master Planning Trends: 

Airport Master Planning Trends Past: Big roof…extra capacity for future needs Planning based on annual activity projections. Changing to: Busy Hour approach Build for flexibility. Why build what you don’t need? Considerations: Technology: rapid change, major impact…flexibility required. LCC’s—fast turnaround, low costs, make life easy for pax. Sustainability: environmental, financial, social.

Airport Master Planning Trends: 

Airport Master Planning Trends “INSPANSION”—Use of “Latent Capacity” Leverage New Technology to Defer Need for Expansion Remote ticketing and check in (electronic and web based). Kiosks vs. counters. Shared use everything—no duplication. Get more value from existing space. Environmental Benefits Less waste to landfill. Less resources used. Financial Benefits retain existing patterns of use eliminate need for new support facilities (roads, utility corridors, etc.)

Airport Master Planning Trends: 

Airport Master Planning Trends SUSTAINABILITY Financial Design with total cost of ownership in mind. Initial cost is only part of LCC. Environmental Imported materials may be financially cheaper than local materials, but… What are the environmental costs of importing? Social Imported materials may be cheaper and environmentally acceptable, but… What are the social costs of importing?

Airline Properties Reps.-Deal or No Deal: 

Airline Properties Reps.-Deal or No Deal Speakers: Laura Einspanier  V.P Corporate Real Estate, American Airlines Robert Montgomery  V.P of Properties, Southwest Airlines Joseph E. Richardson, Airport Properties Manager, UPS Main Theme: Airport development costs and impact to their (airlines/cargo) operations

Airline Properties Reps.-Deal or No Deal: 

Airline Properties Reps.-Deal or No Deal  Southwest : “ Costs Headwinds” airport cost headwinds of $89M representing a 20% increase More consultation required on Capital spending on airport improvements City costs mainly due to inefficiencies. Why should they have to subsidize this? High airport costs is a contributing factor to airline bankruptcies

Airline Properties Reps.-Deal or No Deal: 

Airline Properties Reps.-Deal or No Deal  American Airlines: American remains the only legacy carrier to not file for bankruptcy Airport and airlines are at crossroads Bemoaned FAA (AIP Issues), inadequate TSA funding Need for increased capacity. Increased dialogue airports/airlines Aging infrastructure… way forward US carriers have lost $35B over the years Airport costs are running at approximately 8% New terminal at JFK. $ 1.3 B Project, housing 55 gates and processing 14M passengers/year

Airline Properties Reps.-Deal or No Deal: 

Airline Properties Reps.-Deal or No Deal UPS: Airports should spend more time with the cargo express people His message was “ out of sight, out of mind” Touted the impact cargo has on airlines/ airports bottom lines Airports target their runway and taxiway maintenance /repairs for after hours to minimize impact to airlines but pay little attention to cargo operators. Their business model is “ small on airport space.” The cargo business is gaining a higher profile from revenue generation to airport security.

Airline Properties Reps.-Deal or No Deal: 

Airline Properties Reps.-Deal or No Deal Summary: Airlines are very concerned about airport costs and are demanding more say in future developments. The Southwest Representative talked about “the next fool theory.” Translation: Airports make questionable investment now then try to sell it later to a bigger fool, or you are worth what the next fool is willing to pay you. The UPS theme fits with our definition of the GTAA customer as being the traveling Public and Cargo shippers!

Skybus Airlines- Bill Diffenderfer, CEO: 

Skybus Airlines- Bill Diffenderfer, CEO New LCC hubbing in Columbus OH 4 A-319’s growing to 80 Aircraft usage of 15 hours per day Use airports capable of 25 minute turns 100% internet sales No connections/transfers offered Airport’s responsibility to “drive costs down”

Airline Route Planning-UAL & AirTran: 

Airline Route Planning-UAL & AirTran United’s strategy: Expand international services Protect domestic network through express services Fill out spokes and hubs and develop new cities Lower turn times and increase aircraft utilization AirTran’s strategy: Focus on niche markets with risk mitigation, e.g., Seattle, Daytona Drive down costs and renew fleet Maintain strong position in ATL and on East Coast Observations: Airport costs are relatively small compared to fuel and labour Consideration if two new markets are close on all other factors

jetBlue Airways-David Neeleman, Chair: 

jetBlue Airways-David Neeleman, Chair Issues impacting air travel: Redefine priorities for air space use in congested areas Develop alternative fuels, e.g., coal distillates Improve customer experience, e.g., customer bill of rights, taxi-out times, in-flight amenities Lower airport costs lead to lower fares