Recommendations from the Strategic Planning Process December 2014 Recommendations from the Strategic...

Recommendations from the Strategic Planning Process

December 2014

Recommendations from the Strategic Planning Process

December 2014

CMI Task Force Accomplishments


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

Lessons LearnedLessons Learned

Free Parking Doesn’t Impact Travelers

CMI: 33%

ORD: 16%

MDW: 9%

BMI: 6%

IND: 35%SPI: 1%

Source: Champaign/Urbana True Market Study; Sixel Consulting Group

People don’t use BMI Free parking does not sway

consumers Its all about fare and

service

Parking Rate Change Has Little Consumer Impact

Rate Change Forecast

Source: Sixel Consulting Group Forecast for Parking Revenue

Loss of 3.5% of parking customers. Increase in parking revenue of $131,131 in first year.

New Daily Rate $7 New Weekly Rate (Max) $42Daily Rate Change $2 Weekly Rate Change $7

Change/Parking Days -3.5% Change/Long Term Cust. -3.5%Long Term Days 70,056.5 Long Term Customers 17,514.1

Long Term Revenue $490,395 Change in L/T Revenue $131,131Short Term Revenue $95,501 Change in S/T Revenue $0

Total Revenue $585,896 Change in Total Revenue $131,131

Willard Retains Well in Immediate Area

Passenger Retention by Airport, Higher Retention Represented in Red

CM

I R

ete

nti

on

IND

Rete

ntio

nB

MI R

ete

ntio

n

People in Champaign Urbana Don’t‘ Use BMI

Indianapolis Captures Many More than Central Illinois Airports

Willard: Low Costs and High Revenue

Peer Market Comparisons

Source: FAA Form 127, Fiscal Year 2013

Non-Hub Airport Average: $8.58

Willard Airport: $4.89

Peoria, IL (PIA) $3.19

Bloomington/Normal, IL (BMI) $1.89

Lansing, MI (LAN) $15.69

Rochester, MN (RST) $4.68

San Luis Obispo, CA (SBP) $6.29

State College, PA (SCE) $6.31

Springfield, IL (SPI) $1.77

Source: FAA Form 127

Fiscal Year 2013

Cost per Enplanement

Peer Airports (Ranked by Enplanements)

Willard Airport: $10.28

Peoria, IL (PIA) $4.74

Bloomington/Normal, IL (BMI) $4.45

Lansing, MI (LAN) $11.23

Rochester, MN (RST) $4.94

San Luis Obispo, CA (SBP) $11.40

State College, PA (SCE) $8.17

Springfield, IL (SPI) $10.77

Source: FAA Form 127

Revenue per Enplanement

Fiscal Year 2013

Peer Airports (Ranked by Enplanements)

People Love This Airport

Yelp Reviews

Short QueuesFriendly Personnel

“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).”

Boarding is efficient Plenty of rental cars

No lines No crowds

Close to campus

Convenient

Cute little airport…

Unchanging: “I will always love CMI”

Strategic RecommendationsStrategic 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

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

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.

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.

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.

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.

Air Service DevelopmentAir Service Development

There Are Few Airlines to Recruit1978 2000

Today

1990

Source: Sixel Consulting Group Analysis

BMI

SPICMI

American

US Airways

PIAMLI

Dallas/Ft. Worth

Chicago O’Hare

Miami

Charlotte

Washington National

New York Kennedy

UNLIKELY

UNLIKELY

POSSIBLE

LIKELY

There is Significant Competition for Resources

Our Targets Will Require Risk Mitigation

Network Service

Low Cost Service

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.

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.

Marketing and BrandingMarketing and Branding

New Brand Will Rollout in Early 2015

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.

Fly Champaign-UrbanaUniversity of Illinois – Willard Airport

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.

The Task Force’s Ongoing MissionThe 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


Prepared by

Sixel Consulting Group, Inc.

Jack PenningExecutive Director, Strategy

[email protected]


Prepared by

Sixel Consulting Group, Inc.

Jack PenningExecutive Director, Strategy

[email protected]

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