1 / 13

Lehigh Northampton Airport Authority

Lehigh Northampton Airport Authority. Managing LVIA Through Uncertain Times George F. Doughty, Executive Director March 18, 2005. Governance. Lehigh-Northampton Airport Authority Pennsylvania Municipal Authorities Act Nineteen Members Appointed by Lehigh and Northampton Counties

fitzgerald-gardner
Download Presentation

Lehigh Northampton Airport Authority

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Lehigh Northampton Airport Authority Managing LVIA Through Uncertain Times George F. Doughty, Executive Director March 18, 2005

  2. Governance • Lehigh-Northampton Airport Authority • Pennsylvania Municipal Authorities Act • Nineteen Members Appointed by Lehigh and Northampton Counties • All Municipal Powers – Except Power to Tax

  3. Sources of Revenue – 2005 Budget Total - $21,078,269

  4. Expenses – 2005 Budget Total - $15,859,187

  5. LVIA Market - 2.5 million people (40 mile radius)

  6. Our Chronic Issue – Most of our passengers use other airports Real potential of LVIA Market is not known, but probably is at least 5 million passengers • Frequency • Nonstops • Price

  7. Why have major airlines not exploited the potential of LVIA? • Yield – not volume • Premium price for convenience • Hub concentration – PHL, EWR • “If you don’t want to pay us $1,000 at ABE – then we will take $500 from you at PHL.”

  8. Historical Successes • Major Carriers AC, CO, DL, NW, UA, US Scheduled Charter Southeast Airlines Initiated Service - August 2002 Carried 516,048 passengers through 11-30-04 (PIE, SFB, FLL, LAS) Service reliable and well received Saved LVIA passengers over $10 Million Brought $2 Million Income to LNAA Proved LVIA to FL market

  9. Historical Successes • Southeast terminated on 11-30-04 • 30% of market replaced with: TransMeridian Airlines (started on 2-10-05) Lehigh Valley Air (start on 3-24-05)

  10. More Bad News Possible • UA, US in Chapter 11 • DL Weak • Continued flat growth by majors • Loss of short haul business traveler

  11. Strategies • Cost Containment • Staff Reductions • Defer Capital Projects/Expenses • Focus on Mission Critical Items • Debt Refinancing/Restructuring • Moving Functions In-House • Fixed Base Operator (FBO) - LVAS • Ground Handling Services • Aircraft Fueling

  12. Strategies - continued • Revenue Management • Vehicle Parking Lot Rate Adjustments • Hangar Rental Rate Adjustments • Airline Fee Adjustments • Verification of Full Cost Recovery

  13. Future Options • New Service • Expand LVAir • Real Estate Development

More Related