Beruflich Dokumente
Kultur Dokumente
December 2006
Economic Feasibility Study
Airport Business Plan
TABLE OF CONTENTS
INTRODUCTION....................................................................................3
SECTION 1 - BACKGROUND AND OPERATIONS
1.1 Location, Airport History & Ownership/Administration................................4
1.2 Business/Economic Analysis & Employment...............................................6
1.3 Development History, Current Facilities & Desired Future Plans.................7
1.4 Aeronautical Role........................................................................ ................9
1.5 On Airport Businesses/Lease Agreements........................................ .........10
1.6 Based Aircraft, Fleet Mix and Operations Activity Profile...........................10
SECTION 2 – MISSION, VISION, BUSINESS GOALS AND STRATEGIES
2.1 Mission and Vision................................................................................... ..14
2.2 SWOT Analysis......................................................................... .................15
2.3 Business Goals and Objectives.................................................................. 16
SECTION 3 - FINANCIAL DISCUSSION AND ANALYSIS
3.1 Introduction................................................................. .............................18
3.2 Market Analysis /Service Area..................................................... ..............19
3.3 Airport Financial Condition...................................................... ..................22
3.4 Revenue Source Comparison & Existing Airport Revenue Sources............28
3.5 Expense Discussion .................................................. ...............................35
3.6 Baseline Forecast of Revenue and Expenses ........................................... .39
3.7 Grants – Federal and State................................................................... .....42
3.8 Alternative Financing Methods.................................................. ................48
SECTION 4 – AIRPORT OPPORTUNITIES & RECOMMENDATIONS
4.1 Airport Opportunities – Current and Proposed Devleopment Plan.............51
4.2 Foregin Trade Zones and Keystone Opportunity Zones.............................53
4.3 Recommendations............................................................ ........................56
4.4 Executive Summary................................................................. .................71
APPENDICES
Appendix 1: Marketing Plan Outline ............................................. ..................73
Appendix 2: Economic Impacts of Aviation – Bedford Airport .........................83
Appendix 3: Twelve Year Plan (December 2006) ............................................84
Appendix 4: Selections from Capital Improvement Program ..........................85
EXHIBITS
Exhibit 1 - Location Map ............................................................................... ....4
Exhibit 2 - Desired Grant Projects – 2007 through 2010 ...................................8
Exhibit 3 - “Intermediate” SASP Facility Recommendations............................10
Exhibit 4 - Forecast: Based Aircraft Projection......................................... ........12
Exhibit 5 - Based Aircraft Forecast – Fleet Mix .............................................. ..12
Exhibit 6 - FAA Airport Master Record (5010) Operations by Type ..................13
Exhibit 7 - Projected Itinerant, Local and Total Operations..............................13
Exhibit 8 - General Aviation Radius of Influence/Primary Service Area ...........21
Exhibit 9a - Loan/Debt Summary as of December 31, 2005 ...........................23
Exhibit 9b - Fixed Asset Summary as of December 31, 2004..........................24
Exhibit 10 - Summary of Historic Airport Profit/(Loss) – 2001 through 2005....25
Exhibit 11 - Summary of Historic Financial Components – 2001 - 2005...........26
Exhibit 12 - 2004 Airport Operating Revenue by Source.................................27
Exhibit 13 - 2004 Airport Operating Expense by Source.................................27
Exhibit 14 - Projected Revenue and Expenses................................................. 41
Exhibit 15 - Proposed Airport Development....................................................52
Exhibit 16 - Hangar Development Model..................................................... ....59
Exhibit 17 - Proposed Land Acquisition................................ ...........................65
Exhibit 18 - Bedford County Registered Aircraft Owners ................................81
INTRODUCTION
The Bedford County Air Industrial Park
Authority has accepted the services of L. Robert Kimball & Associates,
Inc. to conduct an Economic Feasibility Study/Airport Business Plan with
the goal to determine the best approach for the Airport to manage
aviation and non-aviation related development to maximize revenue
generation to support future development and maintenance of the
Bedford County Airport (HMZ). The Plan will help identify where the
Airport is today, where it has been in the past and where it wants to go.
The steps taken in this process will also make the Airport aware of the
competition, explore alternatives, be pro-active rather than reactive and
ensure that actions and recommendations are consistent with available
resources and constraints.
• SWOT Analysis
• Create a mission and current and long-term vision for the
Airport
• Determine supporting goals and objectives
• Evaluation of business operation and financial results
• Baseline projection of revenue and expenses
• Identification of strategies for meeting goals and objectives
• Suggest preferred course of action and implementation of such
• Test and make adjustments as necessary
Contained herein are the following sections that include the
sources/results of this Study/Plan:
SECTION 1
BACKGROUND AND OPERATIONS
This section will explore where the Airport has been and where it
is currently from an operations standpoint including a look at
management structure, Airport facilities, service area, employment,
operations, planned projects and Airport classification. Reviewing and
understanding Airport background and management structure will assist
in identifying opportunities, challenges and strengths of the Airport.
Location
Bedford County Airport (HMZ) is located on approximately 168
acres in Bedford Township, Pennsylvania. The County is located in the
Southern Allegheny Mountains, between Fulton and Somerset Counties.
Bedford County has a land area of approximately 1,015 square miles
and a 2004 Census population of approximately 50,230 people. Bedford
is 30 miles south of Altoona and approximately 30 miles northeast of
Cumberland, Maryland (reference Exhibit 1).
Airport History1
1
Source: Noel, Earl. Altoona Flight Service Station, Airport Profile, Bedford profile, Bedford Airport,
htt://www.faa.gov/ats/afss/aooafss/airport2.htm, Accessed June 04 2004
Ownership/Administration
Advisors to Authority
Gordon Stroup, Esq., Solicitor
Frank E. Grazier, Technical Advisor
Bette B. Slayton, Director, Office of Economic Development
Business/Economic Analysis
Employment
Development History
Current Facilities
The Civil Air Patrol (CAP) has offices in the Airport’s Maintenance
Hangar. Besides this group and the FBO, there are no other
businesses/organizations located at the Airport.
sealant, seal
coating and
remark
Construct East Apron/Taxilanes, Ph
I, Design
150,000 142,500 3,750 3,750
Construct East Apron/Taxilanes, Ph
II, Construction (site prep, grading
and electrical) 600,000 570,000 15,000 15,000
Install MALSF – R/W 14 960,000 912,000 24,000 24,000
$3,217,0 $
TOTAL 00 2,389,250 $ 62,875 $413,875
Based Aircraft
Fleet Mix
2005
Aircraft Actual 2010 2015 2020 2025
Single Engine- Piston 14 15 16 17 18
Single Engine-Turbo
prop 0 1 2 2 3
Multi – Piston 3 3 3 3 3
Multi – Turbo prop 1 2 3 5 5
Jet 5 6 7 8 10
Rotorcraft 0 1 1 1 1
TOTAL 23 28 32 36 40
Operations
According to Airport Master Records dated July 7, 2005, there
were 17,758 annual aircraft operations in 2004 consisting mainly of
general aviation local and general aviation itinerant with minor
contributions from air taxi and military operations. Air taxi and military
operations are considered to be itinerant operations which results in
itinerant operations at 35% and local operations at 65%. Details by
type of operation are included in Exhibit 6 below.
Estimat Forecast
Operations
e 2005 2010 2015 2020 2025
Itinerant Operations 4,800 5,180 6,700 8,600 13,200
Local Operations 9,000 9,220 10,100 10,600 10,800
(2)(3)
Total Annual 13,800 14,400 16,800 19,200 24,000
Operations
SECTION 2
MISSION, VISION, BUSINESS GOALS AND STRATEGIES
2.1 Mission and Vision
Prior to the start of this project, there was no mission statement
for the Bedford Airport. Like many other airports in the state and
across the county, the airport mission was simply to run the airport as a
general aviation transportation facility and operate it as such and to
continue existing measures. The following mission was created by a
task force charged with studying the future development of this Airport
as follows:
Below are the visions and related services that were identified to
support the mission:
Strengths
• The Airport offers traditional FBO services including major
repair, storage facilities (T-hangars and Unit hangars) and
fueling services.
Weaknesses
• This airport has only one (1) runway with dimensions of 5,005’
x 75’. Although this is sufficient for current and projected
operations, a 7,000’ runway is the minimum which will allow
for effective marketing of turbo jet aircraft of all sizes.
• Airport cash flow is minimal and the County does not subsidize
Airport Operations.
• The current FBO contract was renewed in May 2005 for a five
(5) year period with options to renew after term. This will limit
options for terms of revenue enhancement at the FBO level.
Opportunities
•
There are several options available for land
acquisition that would greatly benefit the
airport in terms of revenue generation and in terms of
achieving the Airport’s mission/vision.
Threats
• FBO facilities may not be opportune for full-service FBO
provider.
Objectives:
• Fuel Sales
• Hangar Rentals
• Land Leases for Corporate Hangar Development
• Perform Financial Analysis with Focus on O&M Expenses
• Standard Policy – Lease, Rules & Regulations, Minimum
Standards, etc.
• Development of both Owned and Non-Owned Parcels
• Full Service FBO (as it relates to above)
C) Private Investment
Objectives:
• Create Public-Private Partnerships
D) Economic Stimulator
Objectives:
• Teaming of Airport with Local Business, Redevelopment
Authority, Chamber of Commerce, Bedford County
Development Authority, etc.
• Continue to Serve Existing Client Base
• Implementation Plan
SECTION 3
3.1 Introduction
Generating adequate airport revenue to cover operating and
maintenance costs, capital investment needs and depreciation, while at
the same time maintaining and expanding the airport’s tenant and user
base, is typically one of the most important and most challenging issues
facing airport operators. Airports, like many other components of public
transportation systems, are often subsidized by their public sponsors.
This has not been the case at Bedford as there has been minimal
financial support by the County.
4
Per PennDOT Bureau of Aviation Website – Airport Directory, October 26, 2005
Background
Non-Operating/Debt
Non-operating expenses consist mainly of depreciation, interest
income and interest expense. In September 2005, Bedford County
committed $357,414 to the Bedford County Air Industrial Park Authority
for pay-offs on two (2) lines of credit (LOC) and a guaranteed revenue
series. In the past, Bedford County has not subsidized Airport
operations nor should this be expected going forward.
2005 Estimate
d
Bank Interest Years Loan Principal Interes
t
Project Loan Term Rate Left Balance Payment Paymen
t
M&T: Corp 1 15 variable
Hangar Years 3.39%
$250,00 begin @12/31/0 7.4 $153,395 $17,018 $5,689
0 8/1998 5
First 15 variable
Commonweal Years 4.25%
th: 304,000 begin @12/31/0 10.75 255,574 17,906 11,517
Corp 2 2002 5
Hangar
M&T: 15 variable
Years 4.76%
begin @12/31/0 9.2 187,618 15,906 9,258
T-Hangars 265,000 4/2000 5
First
Commonweal ----
th: 200,000 12,500 5,500 316
LOC (a)
Bedford Dev. 10
Council: Years NY Prime start start
Bridge Fin. (b) 100,000 begin 100,000 9/2007 9/2007
10/200
2
First Closed WSJ
Commonweal 150,000 9/2005 Prime + To be
th: 1% Closed 5,500 - 6,902
LOC (c)
First
Commonweal Closed
th: 200,000 9/2005 6% Closed - 10,000 8,095
Guaranteed
Rev Series (c)
M&T: LOC (c) 81% of
Closed Prime to
45,000 9/2005 Float Closed - 14,000 1,328
Old Vehicle Closed
Loan - 9/2005 Closed - 400 775
Subtotal $714,587 $80,73 $43,88
1 0
Depreciati Accumulat
L Cost on 2004 ed Book
ife Depreciatio
Asset n
Land $1,848,67 $0 $0 $1,848,67
8 8
Runway, Terminal, 40 16,203,51 348,818 2,896,006 13,307,5
& Taxiways 9 13
Hangars 40 1,559,472 38,987 276,507 1,282,96
5
Maintenance 40 370,128 9,253 78,652 291,47
Buildings 6
Fuel Facility 40 303,088 15,154 159,121 143,96
7
Sewerage 20 75,753 3,788 39,770 35,98
Treatment 3
Airport Buyout 90,628 0 0 90,62
8
AWOS III 20 112,129 5,342 44,234 67,89
5
Beacons 20 190,664 9,512 56,877 133,78
7
Equipment 20 222,346 11,341 111,118 111,22
8
Utilities 294,898 7,365 25,777 269,12
1
Total $21,271,3 $449,560 $3,688,062 $17,583,2
03 41
Operating Expense
Advertising 296 705 444 715 958
Airport Maintenance/Repair 17,879 18,810 16,003 7,972 6,050
Airport Director’s Salary 16,416 13,414 9,600 8,290 13,261
Legal & Auditing 576 3,991 1,728 3,113 4,216
Dues & Subscriptions 592 1,185 580 477 584
Utilities 10,285 10,797 10,423 9,658 7,853
Insurance 19,391 19,390 17,695 17,590 13,975
Supplies 2,384 2,830 1,930 1,932 1,934
Telephone 1,448 1,993 2,197 2,026 974
Travel & Training 8,760 6,954 5,379 3,057 743
Total Operating Expense 78,027 80,069 65,979 54,830 50,548
NOTE: The Authority implemented a new financial reporting model (GASB No. 34) which provides for
significant changes in terminology: recognition of contribution in the Statement of Revenues, Expenses,
Changes in Net Assets and other changes. This statement excludes amortization on fixed assets acquired by
grants and results in a reduction in total operating results for 2001 and 2002 of $344,543 and $343,955,
respectively.
225,000
Operating Revenue
150,000
Operating Expense
-150,000
-225,000
-300,000
-375,000
-450,000
-525,000
Other
5%
Fuel
Hangar Flowage
Rentals Fee
36% 39%
FBO Rental
20%
Travel
Training Advertising
Telephone 9% 1%
Airport
2%
Maintenance
Supplies 23%
4%
Insurance Salary
25% 17%
Dues Utilities
Legal
Subscriptions 13%
Auditing
1% 5%
Data from the AAAE studies are presented where applicable in the
following review of sources of revenue.
• Fuel flowage fee – Fuel flowage fees typically apply to all FBOs
selling fuel to airport users. As previously discussed, FBO fuel
B) Activity-Related Revenues
Activity-related revenues (39% or $47,944) are those generated
through the use of Airport facilities and/or services and for this Airport is
solely fuel flowage fees collected from the FBO.
Most Airports collect a per gallon fuel flowage fee which can range
from $.05 to $.10 ($.07 average from AAAE study). Another option,
although not as common, is for the Owner to collect a percentage of
gross fuel sales. The Authority has an extremely good arrangement
with the FBO. With current fuel prices, overall profit to an Airport
Owner or FBO is generally estimated at $.50/gallon on Avgas and
approximately $1.00 on Jet “A” fuel. Additional details/suggestions to be
discussed in Section 4 (Objectives A1 and A7).
Landing Fees
Landing fees are not currently collected at the Airport. Most
Airports determine landing fees based on an aircraft’s maximum
allowed takeoff weight (MATOW) of the aircraft landing at the Airport.
The AAAE National Average Rates are presented below for informational
purposes only and are presented as a cost per 1,000 pounds of aircraft
weight.
Parking Fees
The Airport does not generate revenue from automobile parking
fees. It should be noted that many airports collect aircraft parking fees
(overnight and/or monthly tie-down fees) and vehicle parking fees.
National average automobile parking rates are presented below for
those airports currently collecting them. As the data indicates, parking
rates generally decrease with declining hub sizes, so does the number
of airports in each hub size collecting parking fees. For example, survey
results indicate that less than 10 percent of the non-hub airports
responding to the survey collect parking revenues. For all but the
busiest non-hub airports, the costs associated with implementing and
collecting parking fees generally outweigh the revenues generated from
automobile parking. It is anticipated that this would be the case at this
Airport; therefore, the implementation of parking fees at the Airport is
not considered a feasible means of generating additional revenue. It is
important to note that by not collecting these fees, parking lot
construction and/or maintenance is Airport Improvement Program (AIP)
eligible.
The maintenance hangar measures 4,000 sq. ft. with four (4)
garage bays, two (2) offices, meeting area and kitchen. Only one-half of
this building provides rental income to the Authority as two (2) of the
bays are used for snow removal equipment storage and another for
miscellaneous storage. The remaining bay is rented for $1,500 per
year. The Civil Air Patrol (CAP) utilizes this hangar and related office
space for weekly meetings and remits $1,200 annually to the Authority.
The annual rate per square foot for the area rented is $1.35. This
group also provides a 25% reimbursement on electric and heat for this
building. The Authority pays the water and sewer bill.
All of the hangar lease agreements are for a one-year lease period
with an option to renew. The lease does include a provision for a price
increase.
D) Other
Other revenue for 2005 consisted mainly of Authority dues and
was a very small percentage of total operating revenue. Each of the 15
board members pays $100 annually. For 2004, other income
represented 5% of total income and consisted of Authority dues and a
salary related grant reimbursement.
Airport Insurance
Airport insurance for 2005 and 2004 was $19,390 and accounted
for approximately 25% of the total expense in both years. The
Authority’s property policy covers the four (4) main hangar units at the
field. In addition, there is coverage for the snow removal/grass cutting
equipment, business vehicle and errors and omissions on Authority
members. There is also a $10 million per occurrence general liability
(G/L) policy that encompasses hangarkeepers liability. Deductibles
range from $250 to $5,000. The FBO carries a policy to cover property
and G/L coverage on the main hangar and terminal building.
Insurance costs are detailed below. General Liability, including
Hangarkeepers and Errors & Omissions, have been allocated to facility
based on square footage.
G/L, E/O & Total
Facility Property Hangarkeepers Insurance
Auto
Corporate Hangar 1 $510 $2,375 $2,885
Corporate Hangar 2 1,035 2,375 3,410
T-Hangar 731 3,818 4,549
Maintenance Hangar 753 905 1,658
Terminal/Hangar FBO 4,049 4,049
Equipment/Auto 2,840 ----- 2,840
Subtotal Insurance $5,869 $13,522 $19,391
Airport Maintenance
Maintenance expense was $17,879 for 2005 and represented 23%
of total operating expense in both 2005 and 2004. There are
Salary Expense
Salary and related benefits are generally a significant percentage
of overall expense but is not the case at this Airport at the present time.
One Authority member serves as the Airport Director. In the past, a
portion of the Director’s salary was paid by the County; however, this is
no longer the case. Salary expense for 2005 is projected to be $20,416;
however, only $16,416 (21% of total expense) is reported due to $5,000
credit from grant funding related to a recent project. This reduction
should not be expected or planned going forward. Salary expense for
2004 was $13,414 or 17% of total expense. Note that this expense is
strictly salary related with no associated benefit or retirement expense.
Utility Analysis
Total utility expense is projected to be at $10,285 or 13% of total
expense for 2005. Details of this expense by facility are presented
below. It should be noted that the FBO pays for heat and electric for the
entire terminal building and attached hangar as well as utilities related
to the runway and fuel farm. Per the FBO, this expense runs
approximately $800-$850 monthly. In addition, the Civil Air Patrol (CAP)
utilizes the maintenance hangar, particularly the office, meeting area
and kitchen and reimburses the Authority for 25% of electric/heating
bills.
Heat
Facility Expense
Corporate Hangar 1 $2,446
Corporate Hangar 2 2,446
Maintenance Hangar 924
Subtotal Heat $5,816
Electric expense was $3,884 in 2005 with actual expense
presented below for the corporate hangars, maintenance buildings, t-
hangar facility, beacon and pole light. Because these facilities are
metered separately, actual electric costs are presented below along
with the cost per square foot.
Utility
Repair 775 283 360 385 98 1,901
The only revenue line items not included in the table above are
fuel flowage fee income and other miscellaneous income of $60,822.
This revenue covers the unallocated expense presented above of
$49,454 and allows for a net profit of $11,368. In addition, the net
profit by facility contributes to bottom line operating results and
provides the Authority with an estimate of profit by facility.
Operating Revenue
FBO: Fuel Flowage $60,15 $68,63 $72,74 $77,11
Fee 8 $61,955 $65,052 0 8 3
25,20 25,20 25,20 26,46
FBO: Rentals 0 25,200 25,200 0 0 0
Hangar Rental - 70,77 71,54 73,98 73,98
existing 8 71,544 71,544 4 3 3
66 60 60 60
Other - Dues 4 600 600 0 0 0
156,80 165,97 172,53 178,15
Subtotal Revenue 0 159,299 162,396 4 1 6
Operating Expenses
29 2,50 2,50 3,00
Advertising 6 2,500 2,500 0 0 0
17,87 18,00 20,00 20,00
Airport Maintenance 9 18,000 18,000 0 0 0
16,41 22,30 22,97 23,66
Salary Expense 6 21,028 21,659 9 8 8
57 62 64 66
Legal & Auditing 6 593 611 9 8 8
59 64 66 68
Dues & Subscriptions 2 610 628 7 6 6
10,28 11,23 11,57 11,92
Utilities 5 10,594 10,911 9 6 3
19,39 21,18 21,82 22,47
Insurance 1 19,973 20,572 9 5 9
2,38 2,60 2,68 2,76
Supplies 4 2,456 2,529 5 3 4
1,44 1,58 1,63 1,67
Telephone 8 1,491 1,536 2 0 9
8,76 9,00 9,00 9,00
Travel & Training 0 9,000 9,000 0 0 0
Subtotal Expenses 78,02 86,245 87,947 89,70 93,50 95,86
7 1 7 7
$78,77 $76,27 $79,02
Net Income from Ops 3 $73,054 $74,449 4 4 $82,289
Note a: Existing Project /Local Share @2.5%: Master Plan ($3,947) & Snow Removal
Equipment ($3,625)
Note b: Actual cash per 2005 Audited Financials
Note c: Donations pledged that remain from ‘01 Capital Campaign.
Summary
As a summary and assuming an airport is part of NPIAS and has
no air carrier service, most airport development projects (if selected)
will be funded as follows:
Block Grant:
- 95% federal share: This source comes from the Airport
Improvement Program (AIP) which is funded through the
Airport and Airway Trust Fund. The revenues for the fund
come from various sources such as aviation fuel taxes and
passenger ticket taxes.
- 2.5% state share: The state share comes from the Aviation
Restricted Account. The source for the revenue for this
account comes from aviation fuel taxes.
- 2.5% local share: The source is airport operating revenues
or from airport donators. The Airport must attest that this
share is available prior to the start of a project via a
resolution signed by the owners of the Airport.
For fiscal year 2005 through September 30, 2005, the ARC has
funded over $5.4 million of projects in Pennsylvania. Some of the
current ARC funding has been granted to Planning & Development
Commissions with some funding for Industrial Park Development. This
ARC’s Area Development Program (ADP) addresses the goals of the
Commission’s strategies, and the focus of this Commission includes
promoting a diversified region economy through strategies that help
communities create and retain businesses and jobs and helping
communities to develop an educated, skilled workforce. Specifically,
there are a few initiatives in this program that may be applicable to
operations at the Airport or surrounding area of an Airport. Some of the
specific grant initiatives are explored below.
Municipal Bonds
Municipal bonds are securities issued by a local or state
government for a public or private purpose. These securities can
consist of long- and short-term issues. Short-term notes generally
mature in a year or less and can be used to gain funds quickly in
anticipation of future revenues such as state or federal grant payments
Returns are generally tax free from federal tax, and local
governments will sometimes make their debt non-taxable for residents,
thus making these bonds completely tax-exempt. Some revenue
producing projects may be taxable (i.e., rental car facilities and airline
offices). Because of this tax advantage, the yield is general lower than
other types of bonds that are taxable. There are two basic types of
municipal securities as follows:
• General Obligation (GO) Bonds: The bonds are issued with the
belief that a municipality will be able to repay its debt
obligation through taxation or revenue from other projects.
There are no assets required to be used as collateral. Principal
and interest are secured by the full faith and credit of issuer.
These bonds finance projects that do not produce revenue and
are backed by the creditworthiness and taxing power of the
municipality operating the airport.
• Revenue Bonds/Revenue Financing: Many public projects are
financed by these bonds and include airport projects. They are
generally the most common funding source at larger
commercial service airports. However, airports with sufficient
operating surplus/net revenue may qualify for this type of bond
issue. Principal and interest are secured by revenues derived
by the users of the facility built with the proceeds of the bond
issue. Revenue bonds may help bridge the gap between
federal and state grant funding and the funding required by the
airport, which is generally 50% of project costs for some of the
larger capital projects. In order to successfully issue a bond on
behalf of a hangar project, a substantial waiting list and/or
long-term executed leases will most likely need to be available
to substantiate future revenue stream to support the bond
issue.
Private Financing/Development
This method of financing is used by an airport sponsor who
decides to use a third-party developer or a tenant to finance a
construction project. This is typical with hangar development.
Individuals and/or corporations lease land from the airport on which the
private developers fund the construction of hangar facilities. These
facilities are typically then leased by the developers to private aircraft
Aviation Development
Aviation development represents a two-fold means for improving
an airport’s operating income. Revenues generated from new aviation
facilities through lease rates or user fees will increase an airport’s net
operating revenue. In addition, increased activity levels that may result
from aviation development, generate additional revenue through fuel
sales and other fees. Two primary potential aviation development
opportunities to be discussed in Section 4.3 are land development and
related hangar construction. Exhibit 15 presents the proposed Terminal
Area plan for the Airport and highlights various areas on Airport
property and related development. The development will be discussed
throughout Section 4.3 (Recommendations).
4.3 Recommendations
Below are the goals as discussed in Section 2. This section will
explore and discuss related business objectives and recommendations
and includes a discussion of County/Owner priorities.
Business Goals:
A. Self Sufficiency
B. Attract Businesses – Aviation, Aviation Related & Other
C. Private Investment
D. Economic Stimulator
E. Enhance Airport Safety & Environmental Sensitivity
Authority/Owner Priorities
The Authority has done a good job of keeping both the
Stakeholder and Community Advisory Group informed of current status
• FBO Fuel Sales: Bun Air provides the fueling services at the
Airport and sold approximately 200,500 gallons of fuel in 2005
providing $60,158 to the Authority based on the $.30 per
Expense
1,70 1 1,7 1
Hangar Insurance 0 ,700 00 - ,700
Interest/Principal -$1980
mth ** 11,88
(non-operating) 0 23,760 - - -
Depreciation-40yrs/SL 7,5 7
(non-operating) ** 7,500 7,500 00 - ,500
Other Suggestions:
A. Full Capacity: The Authority should consider a Snow Removal
Equipment (SRE) storage building. There are currently two (2)
units in the maintenance hangar being used for storage of
SRE. In addition, the Authority recently received a grant
application related to the purchase of additional equipment.
Although the Authority would be responsible for local share
and minimal utility expense, the revenue generated from two
(2) additional rental units at current price would be
approximately $4,000. Besides these units, it appears that
the Bedford Airport is leasing every possible space at the
Airport.
B. Business Permitting Fee: Per current Airport Rules and
Regulations, a one-time fee of $75 has been established to
accompany each request for lease/license. It is suggested
that procedures be updated to include a statement such as,
“Individuals providing services for a fee at the Airport,
whether operating as a business or not, will be charged an
For all but the busiest non-hub airports, the costs associated
with implementing and collecting parking fees generally out-
weigh the revenues generated from automobile parking.
This is mentioned as a general note should parking become
substantial at this Airport in the future.
Lease rates and charges vary by airport and tend to reflect market
conditions. Furthermore, the nature of an airport’s activity can also be a
major determinant of the types of revenue sources that exist at the
airport as well as the appropriate level of fees to be imposed on airport
users. While the actual charges may vary, common approaches are
The Authority has a good relationship and fairly good lease terms
with the current FBO, Bun Air Corporation. The fuel flowage fee is
significant at $.30 per gallon sold and the FBO handles most expenses
and issues related to the terminal building and adjacent hangar. The
Authority also leases the fuel farm and snow removal equipment to the
FBO. It is suggested that the Authority consider an increase in the
annual rental rate of $25,200 as it has been more than four (4) years
since a price change. The Authority may also want to explore
implementing a gross percentage of revenue fee on FBO fuel sales
beyond a certain number of gallons sold.
APPENDIX 1
MARKETING PLAN OUTLINE
INTRODUCTION
Product, Price, Promotion and Place are the basis for a
marketing plan. Target markets and their needs will be identified with
appropriate pricing strategies developed to reach these markets. The
Airport’s image development will also be an important part of the
PRODUCT
Details on product, services and facilities were outlined in detail in
Section 1 and will only be reviewed briefly in this section for purposes of
having all information available in this Appendix to assist with a
comprehensive marketing plan.
Local attractions include but are not limited to: Old Bedford Village,
Bedford Springs Golf Club, Blue Knob Ski Resort, Shawnee and Raystown
Lakes, Fort Bedford Museum and Espy House (national registry).
PRICE
Price will simply mean offering the most competitive price for the
services being offered at the Airport. Assumed preferences for the various
types of customers will be reviewed below, and it will be important to
conduct a survey to make sure the list of preferences are complete and
ranked in order of importance.
PLACE
All products and services are provided at the Bedford County
Airport and a brief summary of based operations will be presented.
Based Aircraft
Both based and annual operations are expected to increase but
not significantly. There are 23 aircraft currently based at Bedford
County Airport with breakdown by aircraft as follows: 14 single engine,
four (4) multiengine, and five (5) jets. This number can vary based
on the season and according to activity at surrounding airports, i.e.
paving projects, runway closures, inadequate services, lack of space,
etc. Referencing Exhibit 4 (Based Aircraft Forecast Study) of this
report, the preferred average forecast for 2025 is 40 based aircraft with
Aircraft Operations
According to Airport Master Records, 13,400 annual aircraft
operations were estimated for 2005 consisting mainly of local general
aviation at 65% and itinerant operations at 35%. The preferred
operations forecast provides for an increase of roughly 79% to 24,000
by 2025 using the preferred forecasting method.
TARGET MARKETS
Bedford County Airport customers consist of based aviation and the
community. With land development and the “corporate business center”
concept as a vision for this Airport, the marketing plan should target not
only business/corporate customers but also recreational users of the
Airport, tenants and the community. Marketing materials should
emphasize the value an airport brings to the community. With specific
expansion ideas, this could mean increased operations at the Airport and
more opportunities for the community in terms of jobs and working
relationships with local businesses. The needs for each of these target
markets that exist at Bedford County Airport are explored below.
Business/Corporate Customers
The following attributes should be highlighted when appealing to
the business/corporate environment:
1. Runway Length/Strength, including the availability of
multiple runways and approaches
2. Proximity to Customer Destination
3. Availability of Adequate/Quality Storage Facilities for Aircraft
4. Availability of Adequate/Quality Facilities for Office Space,
parking, etc.
5. Service Availability – FBO fuel services, competitive fuel
pricing (24-hour and/or self serve), maintenance and
instruments
6. Ground Transportation – rental cars, courtesy cars and
limousine service
7. Presentable/Comfortable Terminal Facilities (space,
refreshments, etc.)
8. Safety and Security Related Features such as precision
instrument approaches, timely snow removal and published
safety procedures.
Recreational Customers
Tenants
Airport tenants look for the following attributes when locating on
Airport property. Representatives from the Authority should meet bi-
annually (at a minimum) with all Airport tenants to discuss the Airport
and to get tenant feedback.
1. Responsive and resourceful airport management
2. Facilities that are maintained and kept current
3. Availability of Standard Policy and consistent application of
such
4. Availability of an Airport Mission and Business Plan
Community
The following are assumed attributes for the community.
Website
It is suggested that Bedford County hire a firm to design a website
that would not only offer general information about the Airport such as
runway length, services offered and accommodations but also
information on new projects at the Airport, proposed land development,
future projects, special events to be held at the Airport as well as
community events. This website should be designed to allow Authority
members or the Airport Director to update general information such as
current prices, standard rates and charges, etc.
Business/Corporate Surveys
Surveying local businesses/corporations is also a necessity.
At a minimum, the services/facilities should be highlighted. In order to
increase marketability, perhaps the Airport could be introduced as a
facility offering a business meeting setting with catering services.
General Community
If Charter Service should become a reality at this Airport, it is also
recommended that a survey be sent to residents of the local community
to determine why or why not the Airport is being used by the
community. The survey should also request if there are any other
destinations that would be beneficial to the community. Again, general
Airport information should be highlighted via the appeal to general
additional business. School tours should continue and use of Airport
property by the community should be offered.
Image Development
Image development is an important element and/or
outcome of the overall marketing plan. Image development could
include the following:
EFFECTIVENESS OF PROGRAM
APPENDIX 2
ECONOMIC IMPACTS OF AVIATION
APPENDIX 3
TWELVE YEAR PLAN (TYP)
APPENDIX 4
SELECTIONS FROM CAPITAL IMPROVEMENT PROGRAM