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HomeMy WebLinkAbout2013-04-09 Airport Committee Minutes Meeting Agenda City of Bangor Airport Committee Meeting City Council Chambers rd 3 Floor April 9, 2013 Formatted: Font: 12 pt April 17, 2012 5:00 PM The following City Councilors were in attendance: Charlie Longo, James Gallant, David Nealley, Nelson Durgin, Benjamin Sprague. 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: Justified, Indent: Left: 2", First line: 0.5" Agenda: Formatted: Font: 12 pt 1. Maine Department of Transportation Cooperative AgreementIndustry Update/Overview This is a ten (10) year cooperative agreement with the State of Maine Department of Formatted: Indent: Left: 2", First line: 0.5" Transportation (MDOT). This is a renewal of the cooperative agreement that primary airports, such as BGR have with the State to ensure expenditures for Federal AIP grants are made. These standard cooperative agreements stipulate the process for reimbursement from the State for their share of the FAA approved capital improvement projects for the airport. The State’s Formatted: Font: 12 pt portion is 5% of the AIP cost. This agreement also outlines the responsibilities of the airport such as documentation required to be submitted for reimbursement approval. The City’s Legal Department has reviewed and approved the agreement. The Airport respectfully submits this agreement for discussion and recommends approval. Formatted: Font: 12 pt airport’s new shuttle lotfor us in managing the high parking demandPassenger Statistics for the month of February 2011 was up by 31.2% and YTD 23.7%. For the Formatted: Font: 12 pt 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 Councilor Durgin asked if there were any changes on this agreement. Airport Director Caruso, indicated there are no substantial changes to this new agreementno. Motioned to approve and seconded. 2. Industry update/overview: Formatted: Font: 12 pt Formatted: Indent: Left: 0.5", No bullets or numbering Formatted: Font: 12 pt Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.25" Formatted: Indent: Left: 0.5", No bullets or numbering a. Passenger statistics for March 2013 Airport Director Caruso indicated that the numbers for the month of March were positive, even though a modest change. We were up by .1% for the total monthly passengers and YTD we were up .4%. We have solid Formatted: Numbered + Level: 1 + Numbering Style: a, numbers. The Market share is split even between all air carriers serving our b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" market. We have a strong load factor for Allegiant Air, but we werethe load factors were lower on Delta and US Air because of the effects of winter + Indent at: 1.25" storms which delayed and/or cancelled flights. should begin seeing the newingus As an example, Formatted: Indent: Left: 1.25", No bullets or numbering Questions/Comments: Councilor Gallant asked about Delta’s number down, Director CarusoMarketing Manager Bahr responded that due to the snow events we had a lot of cancellations and delays which can directly affect this figure. servicebenchmark b. Business Airport World Expo (BAWE) 2013 rd Marketing Manager Bahr attended this conference. This was the 3 annual show for BAWE and exhibitor attendance was up from last year’s event. BGR had the opportunity to give a presentation on Tech Stops, outlining the elements of a successful tech stop using Bangor’s best practices as examples. It was a successful show. BAWE is a European trade show for airport operators and the world’s business aviation destinations. It is aimed at business jet owners and operators as well as private jet hire companies. This show brings together key decision makers who have the ability to drive business to our location. Shannon Ireland, one of BGR’s top competitors in Formatted: Indent: Left: 1.25", No bullets or this market, continues to exhibit at this show claiming quick tech stops and numbering an excellent alternative to other locations.BGR met with key personnel from corporate aircraft operators such as Harrods, BBA Aviation, Victor, Moonjet and HADID. Discussions revolved around formula pricing, invoicing, and continued business. Additionally, BGR had meetings with press representatives from the aviation trade publications Corporate Jet, Fly Corporate, AIN and Falken Communications as part of our new Public Relations initiative in Europe. Questions/Comments: Councilor Durgin ask what do you do at these shows. Marketing Director Bahr Formatted: Numbered + Level: 1 + Numbering Style: a, responded that the Airport has a booth about 8 X 10 on one side of the area we meet b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" with the clients, we are usually at the show 6-12 hours, we do networking, meet with vendors, and we had brochures we hand out. + Indent at: 1.25" Formatted: Indent: Left: 1.25", No bullets or numbering Formatted: Superscript Councilor Nealley asked what kind of clients stop at the booth. Bahr responded mostly we have customers for the tech stops. Councilor Gallant asked if at these shows the customer knows of all the services that the Airport has. Bahr responded yes, they tell the customers all the services that are available and also talks about the Bangor area and what is available in the community. c. 2013 AAAE/ACI-NA Legislative conference On March 19-21, 2013, Airport Director Caruso 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 113 Congress. The AAAE/ACI-NA Washington Legislative Conference provides airport executive and operators the opportunity to discuss critical airport issues in today’s political environment. The conference helps address crucial policy issues facing airports and the aviation industry and how best to make the industry’s voice heard in the halls of Congress. One of the major topics discussed was related to the recent Federal Budget cuts, and the effects of the Sequestration. While in Washington, DC, he had the opportunity to meet with the Maine Congressional Delegation to discuss these effects and gain their support to continue to oppose any reduction in hours of the Bangor FAA Air Traffic Control Tower (ATCT). Formatted: Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" Questions/Comments: + Indent at: 1.25" Councilor Durgin thanked Tony for everything he is doing on these issues. Formatted: Indent: Left: 0" Councilor Nealley asked about the diverted flights, if we get reimbursement. Caruso responded that we do get revenues from the landing fees, ground services, fuel ect. Formatted: Superscript d. Upcoming events Marketing Director Bahr indicated that we have two events coming up. The first is the tenth rd anniversary of the Troop Greeters. This will be on May 3 and we will be doing something for th this. The second event is on May 24, this will be the memorial walkway. We will be laying bricks for those Troop Greeters who passed away during the warpast year. they remain, but non-committmal a. how BGR.We also experienceand given .BGR must also provide support for.Lastly, U.S. providingcontinue to provide and altitudeworkingEE 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. Formatted: Indent: Left: 0" Formatted: Numbered + Level: 1 + Numbering Style: a, b, c, … + Start at: 1 + Alignment: Left + Aligned at: 1" + Indent at: 1.25" Formatted: Indent: Left: 0" Formatted: Superscript Formatted: Superscript Formatted: Indent: Left: 1.25", No bullets or numbering Formatted: Numbered + Level: 1 + Numbering Style: 1, 2, 3, … + Start at: 1 + Alignment: Left + Aligned at: 0" + Indent at: 0.25" Formatted: Font: Bold Formatted: Font: 12 pt, Bold Formatted: Indent: Left: 0" 2. ApproveBusiness 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 Formatted: Font: 12 pt 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 Formatted: Indent: Left: 0.25", No bullets or airlines gave us a definite yes, neither did any airline say that they were absolutely not numbering 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 Formatted: No bullets or numbering opportunities and providing more information as it becomes available.oooBMrQuestions/Comments Councilor Durgin asked about the Shuttle Lot. Caruso responded that we are still atin the peak season now and the lot is full. We have had somefew complaints and we will fix these as they as are known, but many compliments on the shuttle service provided. Councilor Sprague asked if we are aware that Armed Service Day is approaching and if we were going to do anything. Caruso responded that we would be doing something with the Troop Greeters. They typically host an event each year during this date at the airport. The th Troop Greeters have scheduled this event for May 18. Councilor Gallant asked if we could utilize the fencing area as to put signs up for advertising on them. Bahr responded that she will read the City Ordinance and find out if this is something we can do. 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 Formatted: Superscript Formatted: Superscript Formatted: Font: 12 pt 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 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 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.