Sanford Regional Airport
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1 Sanford Regional Airport Gateway to Southern Maine Sanford Regional Airport Business Strategy - Community Presentation Presented to: The Town of Sanford, The Industrial Development Corporation, and Airport Stakeholders October 5, 2011 QED/KRAMER aerotek
2 Agenda Project Overview 1 Airport as an Economic Engine 2 Opportunities 3 Marketing Plan 4 Closing Thoughts 5 2
3 Sanford Regional Airport Annual Ragwing Fly In 1 OVERVIEW 3
4 Project Goals Initiate a business strategy that would Grow airport activity Increase revenues to the airport Create jobs Propose a marketing plan that would Identify long range market opportunities Set priorities for next 12 months Develop the airport brand 4
5 Approach Site visits to airports in the region Identify opportunities Consultants review and screen Airport/IDC review Prepare next steps on opportunities Outline marketing strategy Present to community Community begins implementation Diagnostics Opportunities Priorities Next Steps 5
6 2 Sanford Regional Airport Aerial View AIRPORT AS AN ECONOMIC ENGINE 6
7 The Airport Contributes to the Sanford Economy Jobs Payroll Visitor Expenditures Tax Receipts Money Circulating in Sanford and Southern Maine (multiplier effects) Photo: Russ Bacon via Guitar Suspension Solutions 7
8 The Airport is an On-Going Enterprise Airport Assets Land Area - 1,115 acres Infrastructure 2 runways/parallel taxiway ILS & GPS approaches 2 Fuel Farms Jet A, 100LL, and MOGAS Development FBO Terminal Cockpit Cafe 57 aircraft hangars Southwest ramp development site Southern Maine Aviation FBO Services Fuel Aircraft and helicopter maintenance Flight training Sightseeing Flights Concierge Recent Investments at Airport Airfield $2.3 million parallel taxiway $5.2 million runway renovation GPS runway approaches Ramp expansion New 64,000 sq. ft southwest ramp Water quality units to protect groundwater Landside FBO terminal renovation 25 hangars in last 5 years Commercial hangar/office complex New above ground fuel farm 8
9 There are Many Important Stakeholders Town of Sanford Industrial Development Corporation of Sanford Sanford Regional Economic Growth Council Sanford-Springvale Chamber of Commerce Southern Maine Aviation Cockpit Cafe Based Aircraft Owners Area Industries & Resort Businesses York County Communities Stakeholders are individuals or organizations who are interested or engaged in the airport and can influence or be influenced by the outcomes of an airport initiative. 9
10 Here s a Snapshot of the Airport Change Source Based Aircraft (estimates for 2005) % Airport Hangars (estimates for 2005) % Airport Annual Gallons of Avgas Fuel Sold 81,000 50,000-38% Airport data Annual Gallons of Jet-A Fuel Sold 125,000 55,000-56% Airport data Annual Direct Operating Revenues $76,300 $ 80,300 5% Airport data Property Tax on Hangars $25,200 $ 48,000 90% Airport Excise Tax on Aircraft NA $ 6,500 Airport Total Direct/Indirect Revenues from Airport $101,500 $ 134,800 33% Airport Annual Operating Expense $ 225,542 $ 206,400-8% Airport Based aircraft and hangar development are growing nicely at the airport Declines in fuel sales impacted by volatile fuel prices, recession and closure of Sanford s primary runway May to November in 2010 Jet fuel sales in 2005 included trips by Air Force One Operating revenues are up 5% with annual expenses down 9% President Bush Arrives at Sanford Regional Airport 10
11 Sanford Has an Excellent Runway Length Comparables Sanford Beverly Laconia Nashua Competitors Auburn-Lewiston Brunswick Portland International Jetport Portsmouth International at Pease Primary Runway Length (feet) Beverly 5,001 Laconia Nashua Sanford Auburn-Lewiston 5,890 5,501 6,389 5,001 Brunswick Portland 7,200 8,000 Portsmouth 11,321 11
12 Sanford, Laconia, Auburn-Lewiston & Portsmouth Lead in Growth of Based Aircraft Based Aircraft Sanford Beverly Laconia Nashua Auburn-Lewiston Portland Portsmouth Source: FAA Terminal Area Forecasts With sales tax on aircraft and aircraft parts eliminated, there is potential for migration of based aircraft back to Maine 12
13 Price of Fuel Hasn t Helped the Aviation Industry $4.50 $4.00 Retail Price per Gallon by Refiners $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0.00 Jan-83 Jan-84 Jan-85 Jan-86 Jan-87 Jan-88 Jan-89 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 U.S. Avgas U.S. Kerosene-Type Jet Fuel Source: U.S. Energy Information Administration 13
14 Findings from Airport Visits Sanford s main competitors are Portsmouth and now Brunswick, both of whom have larger staffs and more extensive marketing resources Portland is focused on commercial air service and to a lesser extent, on corporate aviation Auburn-Lewiston and Nashua are examples of well developed industrial activity at airports (Tenants aren t always airport users) 14
15 Takeaways Sanford needs to be a nimble competitor with Portsmouth and Brunswick Southern Maine Aviation has contributed extensively to the growth of recreational segment Attraction of jet aircraft activity would be a definite positive for the airport An effective marketing program for Sanford will require focus, preparation, and determination Marketing resources can be extended with a clear plan and message, use of other agencies, and community volunteers 15
16 3 Pratt & Whitney 2000 High Compressor Maintenance OPPORTUNITIES 16
17 Screening Criteria 17
18 Commercial Air Service to Sanford is Unlikely Commercial Airports Mileage and Travel Time From Sanford, ME Primary Runway Length (ft) Portland, ME 35 miles 50 min 7,200 Manchester, NH 76 miles 1 hrs 38 min 9,250 Boston, MA 88 miles 1 hrs 52 min 10, and 90 mile radius from Sanford 18
19 Opportunities Selected for Additional Evaluation 1. Aviation Education 2. Aircraft Refurbishment 3. Fire Fighting Training Center 4. Resort Traffic 5. Center for Aviation Innovation and Transient Hangar (combined) 6. Corporate Aviation Transition Base 7. Engine Test Facility 8. Logging Helicopter Base 9. Maintenance, Repair, & Overhaul (MRO) 10. Sky Diving 19
20 Opportunity Assessment Criteria Resort Traffic PW Training Center Center for Innovation Transient Hangar Transition Base Aircraft Refurbishment Fire Fighting Training Center Potential for Improving Airport Revenue Local Job Impact Airport Visibility Airport Activity Airport Assumption of Risk Low Low Medium/High Low Medium High City/Airport Capital Required Low Low Medium/High Medium Medium/High High Immediate or Long-Term Prospect Immediate Immediate Long-Term Long-Term Long-Term Long-Term Positive Neutral 20
21 Example of Recommendations: Immediate Prospect: Tourism Opportunity Increase recreational segment of the market Attract, hangar, and service jet aircraft Recruit aircraft owners that base airplanes in other states because of repealed taxes. Next Steps Visitor survey Southern Maine Aviation Hotels, resorts, golf courses, summer camps, marinas Flight plan analysis Design marketing campaign Brochures Advertising Networking Earned media Airport event for resorts Promotional packages Aircraft club fly-ins NBAA Schedulers & Dispatchers Conference, January 2012, San Diego Southern Maine Coast 21
22 Brand Definition Vision Mission Values Brand Nurturing Evaluation Progress Fine Tuning 4 Brand Development Foundation of Airport Business Value Propositions Positioning Brand Delivery Identity Messaging Architecture Initiatives Action Plans MARKETING PLAN 22
23 Brainstorming Vision, Mission, & Values Our most important customers are... We stand out from the competition because... Our airport is known for... We are great at... We want our customers to be... We strive to... Our community would like... We are: A community airport Serve Sanford & York County Gateway to Southern Maine beaches Safe, efficient, cost competitive facility Outstanding restaurant Center for composites, engine technology, innovative hangar structures Pilots appreciate long runway and taxiway Environmentally friendly airport We are growing
24 Examples of Brand Definition Vision Mission Values Sanford Regional Airport is the gateway of choice for industry, entrepreneurs, and travelers to Southern Maine s coastal resources and centers of business. Together, we will serve our community and customers by providing excellent service, access to the rest of the world, a safe and environmentally friendly airport, and new solutions for the aviation industry. Community friendly Stewardship Excellence Contributor to the regional economy 24
25 Brand Development Foundation of Airport Business Value Propositions Positioning Airport Operating Model Leadership Operating Excellence Customer Service 25
26 What do your Customers Want? Recreational Flyers Safety Friendly Environment Good Service Competitive Fuel Prices Cockpit Café Fly-ins Visitors Safety and Efficiency Access to the Coast via Rental Cars or Shuttle Clean and Inviting Terminal Land packages Corporate Travelers Safety and Efficiency Reliable Access. Upscale Terminal and Lounge Concierge Services Aircraft Charters Rental Cars Transient Pilots Safety and Efficiency Reliable Access. Aircraft Services Fuel Deicing Overnight Hangar Light Maintenance & Repair Flight Planning Cabin Cleaning Catering Pilot Terminal and Lounge Rental Car or Courtesy Car Industrial Commercial Tenants Improved Sites Utility Hookups Highway Access Fair Market Value Tenant Synergy Airport Reinvesting Transparent Leasing Program, Process, Design Standards Sanford Regional Airport Value Propositions 26
27 Strategic Initiatives Excellence Customers Gateway Value and Innovation Sustainability Empower airport employees and service providers to deliver the Sanford quality product Expand the customer base while preserving the hometown atmosphere Became a leading gateway to Southern Maine resorts, commerce and industry Deliver value and innovation through development of airport assets Improve and ensure the long-term sustainability of the airport 27
28 Airport Identity - What s in a Name? Portland International Jetport Brunswick Executive Airport Portsmouth International at Pease 28
29 What Name is Right for Sanford? Sanford Regional Airport (not to be confused with Sanford-Orlando International Airport) Coastal Maine Regional Airport at Sanford Southern Maine Coast Airport Southern Maine Regional Airport Sanford-Kennebunk Airport Sanford-York County Airport Brand Delivery Identity Messaging Architecture Initiatives Action Plans You want your current and future customer base to recognize and remember the airport as their first choice for air access 29
30 Messaging Architecture Brand development involves custom messages to influence the choices of your target audience What s in it for the customer is much more important than a message that describes what we do 30
31 Basic Marketing Toolkit Airport Name, Logo, and Tagline Standalone Website Brochure Airport Signage Press Kit (can also be on website) Contact Information Factsheet about the Airport Image Library Airport Newsletter News Releases Staff Biographies Airport Tenants and Businesses Members of the Airport Advisory Committee Airport Statistics Business Cards and Letterhead Sanford Regional Airport Open House 31
32 Initiatives for 2011 and Beyond Brand Development Name, Logo, & Tagline Internal Communications Elevator Pitch (30 second speech) Stakeholder Agreement Shared Priorities Positive Visitor Experience External Communications Standalone Website Brochures Press Kit Prioritize Opportunities Pursue Opportunities Aviation Education Resort Traffic Aircraft Refurbishment ARFF Training Center Transition Base Center for Aviation Innovation/Transient Hangar Detailed Action Plan Begin the Work 32
33 Steps to Assemble Action Plan 1 Additional market research to target opportunities Prioritize opportunities 2 Select objectives for next 12 months 3 Identify what sequence of actions are needed to accomplish each objective 4 5 Estimate the resources required for each action (time, people, & money) Prepare a list of specific tasks to accomplish each action including the person or persons responsible, dates of completion and budget 6 Implement, monitor progress, adjust to improve outcome 33
34 Brand Nurturing Brand Nurturing Evaluation Progress Fine Tuning Evaluation Customer/Tenant Surveys Community Awareness Regional Market Share Changes Tracking Progress Based Aircraft Hangar Rentals Fuel Sales Operating Revenues Customer Satisfaction Brand Recognition Action Plans are Works-in-Progress. Expect to fine tune. 34
35 5 CLOSING THOUGHTS 35
36 Every Opportunity Will Need Partners Public/Private Partnerships Grants Incentives Cash Donations In-Kind Volunteer Support Area Resorts Existing/New Industries Developers CDBG EDP MTI Seed Grants MTI Development Awards MTI Cluster Initiative Program Pine Tree Development Zone Tax Incremental Financing Employment TIF Tax Credits & Exemptions Direct Loans Equity Financing Credit Enhancements Commercial Bonds Individuals Businesses FBO Fundraising Events Experts in other local government departments Experts on Airport Advisory Board Ad agencies Newspapers Local Radio & TV Consultants Maine Technical Assistance MITC Maine PTAC Maine & Company Business Answers Maine MEP Maine SBDC Chamber of Commerce SREGC Maine DOT FBO 36
37 Closing Thoughts Build a vision and goals; set realistic objectives Obtain airport, FBO, City, IDC, Growth Council, Chamber of Commerce buy-in/support Select one person to be responsible and focused on the tasks Keep the tasks meaningful and interesting to motivate your volunteers Stay flexible as opportunities develop Keep track of progress, celebrate success, fine tune the plan Communicate regularly with your stakeholders Expect that business development and marketing is a multi-year effort 37
38 QED/KRAMER aerotek THANKS For additional information contact: Ron Price Lois Kramer 38
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