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HomeMy WebLinkAbout2013-03-12 Airport Committee Minutes Meeting Agenda City of Bangor Airport Committee Meeting City Council Chambers rd 3 Floor March 12, 2013 @ 5:15 PM Formatted: Font: 12 pt April 17, 2012 5:00 PM The following City Councilors were in attendance: Charlie Longo, James Gallant, Pauline Civiello, David Nealley, Joseph Baldacci, and Nelson Durgin. and Pat Blanchette. The following City staff was also in attendance, Interim Airport Director, Anthony Caruso, Marketing Manager Risteen Bahr, and Assistant Airport Director James Canders. and Risteen Bahr, Marketing Manager. Cathy Conlow, City Manager was also in attendance. Councilor Longo opened the meeting. Formatted: Indent: Left: 2", First line: 0.5" Agenda: Formatted: Font: 12 pt 1. Industry update/overviewIndustry Update/Overview a. Passenger statistics Formatted: Centered, Indent: Left: 2", First line: 0.5" Our numbers are still positive. The decrease in Allegiant by the 22.3% is due to the decreased FLL Flight. Our passenger count was down by 3.5%. We are still increased by 7% for the year. Our load factor is still strong. The Formatted: Font: 12 pt market is good and we still have strong demand. We have positive signs but Federal Cuts are still looming and fuel remains high and unstable. With sequestration, there are threats of reduced services provided by the Gov’t. The parking shuttleairport’s new shuttle lot has been doing very well for the Formatted: Font: 12 pt over flowfor us in managing the high parking demand. Passenger Statistics for the month of February 2011 was up by 31.2% and YTD Formatted: Font: 12 pt 23.7%. For the month of March it was up by 19.5% and YTD up by 22%. Airport Interim Director Anthony Caruso attributed this increase to the increased demand during this peak season, the new flight to Florida and the flights to DC. The traffic remains strong. Tony indicated that we do have concerns with the fuel increase and the airlines have also increased the fares have also increased several times thus far this year. Also, some of the airlines have cut back on the capacity. Questions/Comments: Formatted: Font: 12 pt b. Allegiant: 2013 Airport’s Conference Both Sanford/Orlando and Tampa/St Pete flights are operating very well. AAY is pleased with performance of both routes. Bangor should look Formatted: Numbered + Level: 1 + Numbering Style: a, forshould begin seeing the new Airbus aircraft (319, 320) late 2013 or early b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" 2014…on the East coast and given our long stage lengths for flights. AAY will look to automate the boarding passes. AAY will develop service metrics with + Indent at: 1.25" Formatted: Indent: Left: 1.25", No bullets or numbering Formatted: Font: 12 pt Formatted: Indent: Left: 0.5", No bullets or numbering Formatted: Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" + Indent at: 1.25" Formatted: Indent: Left: 1.25", No bullets or numbering their Vendors, such as establishing service levels and measure us on ground handling (As an example, how long do checked bags get from aircraft to baggage claim). Questions/Comments: Councilor Nealley asked about the metrics. Caruso responded that the metrics will be geared to servicebenchmark the performance of customer’s service. c. 2013 Network USA Conference Marketing Manager Bahr attended this conference. This was held in San Antonio. She met with several airlines and they are happy with the services they receive in Bangor. Both Delta and US Airways will be increasing their Formatted: Indent: Left: 1.25", No bullets or flights this summer. Delta will be doing dual class adding Detroit service and numbering LGA. US Airways will add more service to DCA. American, United, South West, and Jet Blue are still on the radar. We still have the Small Community Air Service Development Grant available for the Chicago Service. Both United and American are interested so we will keep in frequent touch with them. Fuel is still an issue with Airlines. But the meetings still remained very positive and positive feedback on BGR. Questions/Comments: Formatted: Numbered + Level: 1 + Numbering Style: a, Councilor Civello asked about the Rewards Program, Bahr responded that it is going very b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" well and we will be having some more local participates signing up. + Indent at: 1.25" Councilor Durgin questioned the communication between BGR and the new Cross Insurance Center. Bahr responded that she has been in contact with Global Spectrum, Formatted: Indent: Left: 1.25", No bullets or and the managers from their will be coming up for meetings. Bahr indicated that she numbering has given them, hotel information, and will continue to work with them to advertise the airport for services to promote the airport and the new convention center. Councilor Gallant asked about the vendor leasing and updating the terminal and marketing BGR and the kiosk at the Airport. Caruso responded that BGR has a contract with Clear Channel formally known as Interspace Advertising. As we upgrade the terminal we will also be looking into the kiosks for pre/post security locations. Also this summer with the increased flights we will be using the international jet bridges. James Canders is currently working on this. Councilor Nealley asked about the united service from before. Caruso responded that they did service here before and they are interested again and isthey remain interested in the SCASDGs Grant, but non-committmal. 2. Update on possible effects of Sequestration a. Airport Director Caruso indicated that Bangor is still mainly undetermined if wehow BGR will be affected. The BGR Air Traffic Control Tower overnight closure is still possible. The Formatted: Indent: Left: 1.25", No bullets or Airport will remain “open” during this period and we will be getting “pilot controlled numbering lighting”. We have been in contact with the Congressional Delegation expressing our concerns. Bangor has significant activity in the overnight hours., weWe also experience have a mix of aircraft activity, and given BGR’s designation as a diversion point for security Formatted: Font: Not Bold issues, per TSA and this is a national significance., we also haveBGR must also provide support for ME ANG role and missions, and. Lastly, Bangor is a U.S. Port of Entry Formatted: No bullets or numbering forproviding CBP services. The BGR staff will still be at the Airport 24 hours a day. Boston Center will be ourcontinue to provide radar coverage for a certain level and altitude. This Formatted: Numbered + Level: 1 + Numbering Style: 1, will impact our operations. Assistant Airport Director, Canders discussed the Pilot Board 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0" lightening. This will be able for the Pilots to control the lights for 5 to 10 miles approaching the runway by clicking their microphone. We are currently scramblingworking to put this + Indent at: 0.25" into effect.EE BGR will remain an Independent Dealer but will continue to review branding options. Questions/Comments Councilor Blanchette commented that this was great news and a good indication that the next couple of years should be good too. She was very pleased with the figures. easeApprove 2. Business Development Activities Networks 2012- In March, BGR participated in Network USA, an air service development conference. We had 30 minutes to present our case to each airline. BGR presented proposals for scheduled service to Atlanta, Baltimore, Boston, Charlotte, Chicago, and JFK. We also had the opportunity to discuss BGR as a location for seasonal chartered service to Las Vegas and the UK with a charter airline company. We offered our air service incentive program and our Small Community Air Service Development grant as appropriate to the airlines. While none of the airlines gave us a definite yes, neither did any airline say that they were absolutely not interested in Bangor. Our strong passenger growth was a positive selling pint along with our strong Canadian traffic numbers. We will continue to keep the discussions open for future opportunities and providing more information as it becomes Formatted: Font: Bold available.oooBMrQuestions/Comments Formatted: Font: 12 pt, Bold Councilor Durgin asked if we would have to have different regulations with this, Caruso responded no. Formatted: Indent: Left: 0" Formatted: No bullets or numbering Formatted: Font: 12 pt Formatted: Indent: Left: 0.25", No bullets or numbering Formatted: No bullets or numbering Councilor Nealley asked if we currently have a vendor in mind for the “Pilot Lighting System”, Canders responded yes, and that we will have to rewrite the manual if the sequestration happens. Councilor Baldacci asked if this happens and we are not a 24/hour ATCT airport, do you think this will affect “new” airlines coming to Bangor. Caruso, responded yes, this could impact it. Councilor Gallant asked if there were other airports that have an Air Base on it that is not a 24/ATCT operation, Caruso responded that yes there are. Councilor Longo indicated that if there is anything else the Committee can do just let them know and to keep them informed on this issue. st With ,and 30is appreciativenot terminal 1 llant continue the design work thehighat the airport. The concept is to develop a small museum inside our terminal for these itemsthe grant$Meeting Adjourned a. Questions/Comments Councilor Blanchette asked if there any plans for Mike Boyd to come with some information. She would like to see a complete workshop for all the Councilors. Caruso responded that Ms Bahr has contacted Mike Boyd and they have been discussing several dates for this meeting. We anticipate scheduling this meeting during the June Airport Committee meeting and inviting all City Councilors to attend. th b. AAAE/ACI-NA Legislative Conference- On March 14-15, Tony attended the annual AAAE/ACI-NA legislative conference. This conference provides airports with the opportunity to review and discuss th airport and aviation priorities for the second session of the 112 Congress. The AAAE/ACI-NA Washington Legislative Conference provides airport executives and operators the opportunity to discuss critical airport issues in today’s political environment. One of the major topics discussed was related to the recent requirement by the Department of Transportation (DOT) for airports to develop Tarmac Delay Contingency Plans. Tony was asked to present and serve on a panel for discussion of the tarmac delay plan. Bangor International Airport is seen in the industry as having Formatted: Superscript expertise in the handling of aircraft diversions. c. Airport ground handling initiatives conference-On March 31-April 2, 2012, Tony attended the annual ground Handling Initiatives conference. This conference provides discussion and recommendations to airports to support and establish operational standards for non-hub airports to provide their own ground handling services. The topics included discussions and presentations to on how, through Formatted: Font: 12 pt such services, airports can improve customer service, reduce ground handling costs and improve operational efficiencies in order to retain and/or attract air service. Tony was asked to present and serve on a panel for discussion among airports that do provide the ground handling service for airlines. Bangor International is seen in the industry as having expertise in performing the ground handling for airlines. Questions/Comments None 3. Airport’s Advertising & Marketing Plan presentation and overview Risteen indicated that we will present this at the next meeting. She indicated that the campaign will be “warmer place calling you”. Questions/Comments None 4. Airport Committee meeting schedule: discussion: During the March 5, 2012 Airport Committee meeting, the Committee members requested further discussion on the possibility of adjusting this Committee’s schedule. Currently, the Airport Committee is scheduled to meet on the first Monday of each month immediately following the Finance Committee. Tony indicated that he has three suggestions. One was stay with the way it is now, the first Monday of each month following the Finance Committee. The second was on either the second or fourth Tuesday of each month following the Government Operations Meeting. The final option was to hold the meeting on the second Wednesday of each month. Questions/Comments Councilor Blanchette indicated that the Tuesday following Government Operations work best for her. Councilor Longo agreed. Councilor Longo and Caruso discussed that they will hold the next Airport th Committee meeting on the 4 Tuesday of the month following the Government Operations meeting as a trial run. They will then discuss if this works for the rest of the Committee. 5. Contracts/leases: a. SST Aero lease renewal: Airport Interim Director, Caruso, indicated that as the Committee is well aware, SST Aero Services, owned by Telford Allen, has been a valuable tenant of Bangor International Airport since 2009. SST Aero is an aircraft and engine leasing company. Approving this lease agreement will strengthen our partnership and enhance our relationship with this company. This lease agreement has been reviewed and approved by City Legal. The Airport respectfully submits this amendment for Airport Committee review and recommends approval by full City Council. b. T-3 Lease renewal: Airport interim Director, Caruso, indicated that this agreement outlines a one (1) year term, with two one year extensions, for the lease of hangar space in building 123 (also known as the Corporate hanger facility). The current lease is due to expire this year and both Parties are interested in having T-3 Leasing remain as a tenant. The terms and conditions of the lease remain unchanged with the exception of an annual rate increase. The new lease rate reflects a modest 3% increase each year. As the Committee is well aware, T-3 Leasing, owned by Telford Allen, has been a valuable tenant of Bangor International Airport since 2009. T-3 Leasing is an aircraft management and leasing Company. Approving this lease agreement will strengthen our partnership and enhance our relationship with this company. This lease agreement has been reviewed and approved by City Legal. The Airport respectfully submits this amendment for Airport Committee review and recommends approval by full City Council. c. Easement agreement renewal for FAA: This agreement is between the Federal Aviation Administration (FAA) and the City of Bangor, Airport Department. This agreement, DTFAEN-11- A-00003, is for an underground power line easement and airport access right-of-way easement at Bangor International Airport. This power line supports the FAA’s airport surveillance radar (ASR) system located at the airport. This easement has expired and the FAA is requesting a renewal for the same purpose. The term of the easement renewal is from October 1, 2008 through September 20, 2018. This easement agreement has been reviewed and approved by City Legal. The Airport respectfully submits this amendment for Airport Committee review and recommends approval by full City Council. Questions/Comments Councilor Blanchette moved to make these all ok to go to full Council on Monday. These items are all routine in nature and are all renewals. Meeting adjourned.