Challenges and Changes! Jeff Hamiel! Metropolitan Airports Commission!
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1 Challenges and Changes! Jeff Hamiel! Metropolitan Airports Commission!
2 Industry Consolidation!
3 Trend: Airline Outsourcing! Above- and below-wing services! Aircraft cleaning! Wheelchair assistance services! Unaccompanied minor services! Regional flying!
4 Key Role of the Regionals! Provide at least 50% of departures from airports in 35 states! Carry 22% of U.S. passengers! Provide only scheduled air service to 70% of commercial airports! Feed traffic to airline hubs!
5 Challenges For Regional Service! Shift in airline focus from market share to profits! Decline of 50-seat aircraft! Softening support for Essential Air Service! Growing pilot shortage! 53 Upper Midwest airports at risk of losing some or all service*!!!*source: FlightPath Economics!
6 Causes of Regional Pilot Shortage! Regulations increasing training hours from 250 to 1,500 for Airline Transport Pilot s (APT) License! Cost of obtaining license! Movement of qualified pilots to mainline carriers! Retirement of 18,000 pilots through 2022! Increased use of drones in military and greater retention of drone-experienced pilots! Fewer college-bound students seeking a career as a pilot! More pilots choosing careers as flight instructors or private pilots!
7 What Can Be Done! Repeal/amend legislation requiring 1,500 hours of training for APT license! Convince FAA to use its latitude to alter regulations on training hours or credentialing! Create defined path for certified instructors to gain a Restricted Air Transport Pilot s license! Use loan consolidation/ guarantees or financial aid to reduce cost of pilot training and resulting debt! Educate potential students on benefits of career as pilot!
8 Changes and Challenges at!
9 Minneapolis-St. Paul International! Recent Recognition 17 th busiest airport in North America (passengers)! 11 th busiest in operations! Delta Air Lines 2 nd largest domestic hub! Most Efficiently Managed Airport - North America Air Transport Research Society, 2013 Best Food & Beverage Program in North America Airports Council International-North America, 2013 Best Overall Airport Concessions Program, Airport Revenue News, 2014 Airport with the Most New Routes anna.aero, airline network news & analysis, 2014 Third Best Airport in North America Travel & Leisure Magazine, 2014
10 Keeping Airline Costs Low! Cost Per Enplaned Passenger Airport Forecast 2014 ($) Washington- Dulles John F. Kenney- New York Newark Miami Los Angeles LaGuardia- New York San Francisco Boston Chicago O Hare Denver Philadelphia Washington- Reagan Las Vegas SeaWle Dallas- Fort Worth 8.04 San Diego Houston- Bush InterconYnental Detroit BalYmore 9.50 Minneapolis- St. Paul 6.74 Orlando 5.88 Atlanta 5.61 Tampa 5.41 Fort Lauderdale- Hollywood 4.61 Phoenix 5.53 Salt Lake City 3.82 CharloWe- Douglas 0.94 Airline costs per boarding passenger are significantly less at MSP than at most large hub airports Average 12.10
11 MSP Passengers! Millions
12 MSP Aircraft Operations! 600, , , , , ,
13 2014 vs (Through August)! 24,500,000 24,000,000 23,500,000 23,000,000 22,500,000 Passengers , , , , , ,000 OperaBons
14 Draft Forecast of MSP Enplanements!
15 Draft Forecast of MSP Airline Operations!
16 Air Service Success Measures! Additions since 2008:! Alaska Air, 2008! Southwest Airlines, 2009! Great Lakes, 2011! Spirit, 2012! Air France, 2013! Condor, 2014! Competitive incentives program! MSP is served by every major U.S. airline except Jet Blue.
17 MSP Nonstop Service to 142 DesBnaBons: 9 th most in the United States
18 Nonstop Service to 119 U.S. Destinations, 33 Competitive Destinations (Yellow)!
19 23 International Destinations, 11 of Which Are Competitive!
20 2014 Improvements! Terminal 1! Expanded FIS carousels! Larger FIS inspection space! Automated passport control kiosks! Largest solar project in Minnesota begun! Terminal 2! New auto rental and ready-return facilities! In-line bag screening facility under construction! Holiday station!
21 Still To Come in 2014! Expanded security checkpoint 7! Completion of Terminal 1- Quick Ride Ramp! Completed short film space near Gate C18! Finish lactation rooms on Concourses C and F! Expand seating for gates 1 and 2 at Terminal 2!
22 Concessions rebid! Future Improvements! Restroom and seating improvements! Aircraft viewing area off Longfellow Road! Consolidation of Terminal 1 security checkpoints! Nursing mother s room on Concourse E! Pet relief station on Concourse E! Three gate (four jet bridge) expansion of Terminal 2 Automated passport control kiosks at Terminal 2 Plan additional parking at Terminal 1! Explore development of airport hotel!
23 More Information! Follow us on Facebook and Twitter:! On Android, BlackBerry or iphone, download our app:! FlySmart TM!
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