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30 th Annual FAA Aviation Forecast Conference

30 th Annual FAA Aviation Forecast Conference. Airport Management in Uncertain Times Tony Storck Director, Air Service Development Baltimore/Washington International Airport (BWI). Nonstop Scheduled Service at BWI 1985. Nonstop Scheduled Service at BWI 1995.

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30 th Annual FAA Aviation Forecast Conference

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  1. 30th AnnualFAA Aviation Forecast Conference Airport Management in Uncertain Times Tony Storck Director, Air Service Development Baltimore/Washington International Airport (BWI)

  2. Nonstop Scheduled Service at BWI 1985

  3. Nonstop Scheduled Service at BWI 1995

  4. Nonstop Scheduled Service at BWI 2005

  5. Low Fare Growth Low Cost Carrier Scheduled Weekly Seats as Percent of Total Airport Seats 1985 - 2005

  6. The Four Cs • The Comparative Advantage • The Cost-Conscious Airport • The Collaborative Airport • The Contrary Approach

  7. 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

  8. The Comparative Advantage • Multi-Airport + Multi-Airport Operators = Competition

  9. The Comparative Advantage • Euro-Copies • Ryanair has stretched locational advantage: MilesMarket Hahn 75 Frankfurt Torp 75 Oslo Skavsta 55 Stockholm Beauvais 65 Paris

  10. The Comparative Advantage

  11. 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.

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

  13. The Collaborative Airport • What about the other side of the city pair? • BWI — LHR • BWI — DUB • BWI — SEA • BWI — ???

  14. The Collaborative Airport • TAG TEAM® • Approach target airport first • Pool resources: • Consultants • Contacts • Data • Joint presentation to target carriers

  15. The Collaborative Airport • Leverage all public and private resources: • Economic Development Agencies • Convention & Visitors Bureaus • Other Public/Private Entities

  16. The Collaborative Airport

  17. The Contrary Approach • Prepare for the Flip Side • Planned Shrinkage • Hub/Spoke Deconstruction • Consolidation • Changing Market Dynamics

  18. The Contrary Approach • Scheduled Passenger Carriers: • In 1978: 41 • Since 1978: 327 • Remaining: • In 1978: 13 • Since 1978: 76

  19. The Contrary Approach PrincetonAir Link Connectair OceanaireLines L’Express

  20. 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

  21. Time-tested Strategic Innovations • Know your Comparative advantages • Always be Cost-conscious • Seek and exploit Collaboration • Keep the Contrary in mind, too

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

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