ACI NA Airport Board Members and Commissioners

Transcription

1 Enhancing Air Service Through Community Partnerships ACI NA Airport Board Members and Commissioners April 12, 2010 Bradley D. Penrod, CEO/Executive Director Allegheny County Airport Authority 1 1 1

2 History Historic post deregulation hub State of the art terminal and airfield Significantly business focused city Airline bankruptcy Community demand 2

3 Changing Passenger Mix Passengers (million) Year O&D Connecting Total O&D % % % % % % % % * % % YE 3q % *Record volume Oliver Wyman analysis of U.S. DOT Domestic and International O&D Surveys, DOT T-100 Report for Foreign Flag Airlines and Pittsburgh International Airport Statistics 3

4 US Airways Trends US Airways operations have stabilized for the first time since US Airways Destinations and Daily Departures Nonstop Destinations Markets Daily Departs Departures April Markets Daily Departs Source: Oliver Wyman analysis based on OAG Schedule data for November of each year. 4

5 The Total Number of Nonstop Pittsburgh Destinations Has Been Relatively Stable Since 2008 Pittsburgh Nonstop Destinations by Year April 2010 Source: Oliver Wyman analysis based on OAG Schedule data for November of each year. 5

6 Pittsburgh Means Business Eight Fortune 500 companies Home to more than 100 corporate or business unit HQs Westinghouse selects Pittsburgh for new HQ Creates 2,000+ jobs BNY Mellon plans expansion in Pittsburgh Creates 2,000+ jobs 6

7 Pittsburgh Companies with Global Ties Major global companies based in the region include Old line industrial stalwarts that are long time global players. Operations in 44 countries. Operations in 37 countries. Operations in 42 countries. Presence in 39 countries. Old line companies new to the global game. Made first foreign acquisition in Presence in 12 countries. Major acquisitions in Germany in 1993 and Operations in 7 countries. 7

8 Foreign Owned Firms by Country in Pittsburgh Country Companies Operations Country Companies Operations Argentina 1 1 Japan Australia Luxembourg 8 8 Austria 4 4 Mexico 2 5 Bahrain 1 1 Netherlands Belgium 8 9 Norway 3 3 Brazil 3 3 Russia 2 3 Canada Singapore 1 1 China 2 2 South Korea 3 4 Czech Republic 1 1 Spain 2 2 Denmark 1 1 Sweden Finland 4 4 Switzerland France Taiwan 2 2 Germany Turkey 1 1 India 6 6 UAE 2 3 Israel 3 3 United Kingdom Italy Grand Total Source: Pittsburgh Regional Alliance, August

9 Pittsburgh Based Companies with Foreign Ties Country Operations Country Operations Country Operations Country Operations Argentina 8 Germany 73 Malaysia 9 South Africa 16 Australia 60 Ghana 3 Mexico 52 South Korea 3 Austria 4 Greece 5 Morocco 2 Spain 31 Bahrain 2 Guatemala 1 Nepal 1 Suriname 3 Belgium 16 Guinea 1 Netherlands 33 Sweden 11 Botswana 5 Highveld 1 New Zealand 15 Switzerland 12 Brazil 33 Honduras 2 Nigeria 7 Syria 1 Brunei Darussalam 1 Hong Kong 6 Norway 6 Taiwan 19 Bulgaria 4 Hungary 12 Oman 1 Thailand 9 Canada 129 Iceland 2 Papua New Guinea 1 The Seychelles 1 Chile 6 India 44 Peru 2 Trinidad & Tobago 1 China 97 Indonesia 11 Philippines 7 Turkey 3 Colombia 3 Ireland 10 Poland 11 UAE 14 Costa Rica 4 Israel 3 Portugal 4 Ukraine 4 Cyprus 1 Italy 42 Puerto Rico 1 United Kingdom 106 Czech Republic 8 Jamaica 1 Romania 3 Uruguay 1 Denmark 4 Japan 39 Russia 17 Venezuela 9 Egypt 3 Kazakhstan 1 Saudi Arabia 2 Vietnam 1 El Salvador 1 Korea 10 Serbia 3 Zimbabwe 5 Finland 1 Latvia 1 Serbia 16 Grand Total 1170 France 59 Luxembourg 1 Slovakia 5 Source: Pittsburgh Regional Alliance, August

10 Pittsburgh China Connection Chinese firms with operations in Pittsburgh (2) Asian Metal, Taiyuan Iron and Steel Group (TISCO) Pittsburgh firms with operations in China (97) Alcoa, Allegheny Technologies, Inc., Ansys, DDI, Heinz, K&L Gates, PPG, Reed Smith, Westinghouse and others 38 total companies 10

11 Pittsburgh UAE/Dubai Connection UAE firms with operations in Pittsburgh (2) Dubai Investment Group, Nova Chemical Pittsburgh firms with operations in UAE (14) Alcoa, Aquatech, Burt Hill, Heinz, Industrial Scientific, K&L Gates, Kennametal, Mine Safety Appliance, Reed Smith, WESCO 12 total companies 11

12 Pittsburgh Innovative Energy Solutions Major contract to build nuclear reactors in China and around the world Has recently established a coal supply relationship with China; only privately owned coal focused research and development facility in the U.S. Software and services to build the important smart grid technology for the next generation of energy transmission Specializes in electrically conductive polymer inks used to make inexpensive solar panels Adapting legacy manufacturing expertise to serve the wind energy sector 12

13 Education & Medical Sector Leading the Nation Source: Pittsburgh Regional Indicator Education and Health Service jobs are significantly higher than the benchmark average. Two of the nations premier research institutions Carnegie Mellon and The University of Pittsburgh call our region home. So do 32 other colleges and universities, which produce nearly 28,000 graduates annually. Allegheny Conference on Community Development Pittsburgh is also home to cutting edge developments in the health care field courtesy of world class healthcare provider UPMC. ses/2009/pages/hand transplant july09.aspx ses/2009/pages/2009 us news honor roll.aspx 13

14 Regional Air Service Partnership (RASP) Formed December 2003 Three local partners; Elected Officials, Allegheny County Executive Business Community, Allegheny Conference on Community Development Airport Authority Dedicated and shared resources 14

15 Partnerships Airports can not go it alone Airports know a lot, but not all Airports need to know their community Business community needs buy in from the top (CEO) It takes time to understand airline logic Develop genuine, open and trusting lines of communication 15

16 The Pittsburgh Air Travel Market O&D traffic has fallen similar to nationwide trends PIT Traffic is fragmented with no single dominant carrier Pittsburgh O&D Traffic by Year (excludes flow traffic) 2009 Passenger Share by Airline JetBlue 2% AirTran 8% All Other 3% US Airways 29% * Southwest 19% (est.) Source: Allegheny County Airport Authority * US Airways % does not reflect capacity and frequency pulldowns for end of 2009 and going into 2010 American 5% Delta 17% Star Alliance Skyteam oneworld Continental 7% United 10% 16

17 Pittsburgh International Airport Route Map Paris-CDG Minneapolis Toronto Boston San Francisco Las Vegas Denver Milwaukee Chicago-MDW, ORD St. Louis Detroit Cleveland Cincinnati Hartford Pittsburgh New York-EWR, JFK, LGA Philadelphia Baltimore Washington-DCA, IAD Raleigh Los Angeles Phoenix Memphis Charlotte Atlanta Dallas-DFW Destinations Airlines 110 Daily Departures 159 Source: OAG Schedule, March 18, 2010 Houston Orlando Tampa Ft. Myers Ft. Lauderdale Miami 17

18 Pittsburgh International Airport Top 50 O&D Markets TOP 50 Markets for YE3Q09 March 2010 Service TOP 50 Markets for YE3Q09 March 2010 Service Rank Dst Airport Pax Airline N/S Deps/Day Rank Dst Airport Pax Airline 1 MCO Orlando 670 WN, FL 6 26 JAX Jacksonville PHL Philadelphia 518 US, WN PBI West Palm Beach TPA Tampa 389 WN, FL 3 28 STL St Louis 94 US 3 4 ATL Atlanta 386 DL, FL BDL Hartford 89 US 3 5 LAS Las Vegas 385 WN, US 3 30 MSY New Orleans LGA NY-LaGuardia 378 US 6 31 DCA Washington DC Ronald Regan 80 US 5 7 BOS Boston 351 US, B MCI Kansas City FLL Ft Lauderdale 326 FL 2 33 SAT San Antonio ORD Chicago-O'Hare 300 UA, AA 8 34 SNA Orange County MDW Chicago-Midway 280 WN 5 35 BNA Nashville RSW Ft Meyers 250 FL 2 36 MIA Miami 62 AA 1 12 PHX Phoenix 243 US, WN 3 37 AUS Austin DFW Dallas Ft. Worth 224 AA 4 38 MEM Memphis 62 DL 3 14 JFK JFK New York 223 DL, B6, AA 7 39 PDX Portland LAX Los Angeles 209 UA 1 40 SLC Salt Lake City EWR Newark 189 CO 6 41 PVD Providence SFO San Francisco 175 UA 1 42 MKE Milwaukee 53 YX, FL 6 18 DEN Denver 172 UA 2 43 CHS Charleston SC IAH Houston 155 CO 4 44 ORF Norfolk, VA MSP Minneapolis/ St Paul 145 DL 4 45 MHT Manchester CLT Charlotte 133 US 7 46 SJC San Jose, CA SAN San Diego ALB Albany, NY BWI Baltimore 117 WN 3 48 MYR Myrtle Beach 39 D SEA Seattle HNL Honolulu RDU Raleigh-Durham 103 US 3 50 SJU San Juan 39-0 N/S Deps/Day Source: APGdat, DOT 18

19 PIT s Commitment to Develop Non Aviation Revenue Sources 10. Exploring for natural resources 9. Industry and the Community training 8. Go Hollywood 7. Catch Up on Tenant Facility Maintenance Responsibilities 6. Ground Handle Airplanes 5. Boarding Bridge Rehabilitation 9 4. Advertising on the Highway 3. Awareness Advertising 2. Develop Real Estate 1. Throw a Party G ACAA s airport airline relationship for financial management operates under a residual cost approach. Over this past decade ACAA has been able to refund yearly to its signatory carriers. 19

20 Incentives Airport based Passenger and cargo FAA restrictions Community based Economic sense Business benefits 20

21 ACI Award Winning Web Site and Advisory Newsletter Weekly newsletter: e mailed to more than 40,000 subscribers Airport website: FlyPittsburgh.com promotes air service 21

22 PIT Actively Promotes Travel The Allegheny County Airport Authority: budgets $350,000 annually to promote use of the Pittsburgh International Airport Erie Youngstown Warren The media buy : Pgh mkt and Youngstown/Warren, OH mkt Advertizing uses multiple types of media: Print, Radio, Internet, TV, Outdoor, Google Ad Words Ad partnerships exist with: Pittsburgh Steelers Pittsburgh Pirates Pittsburgh Penguins Univ. of Pittsburgh Football & Basketball Steubenville PIT Cambridge Wheeling Pittsburgh DMA Clarksburg Weston Johnstown Altoona Cumberland Media % of Budget Outlying Areas TV 36% 21% Radio 22% 22% Sponsorships 21% 10% Print 14% 4% Outdoor 5% 2% Internet 1% 1% Misc. 1% Click Save Fly! Lower Fares Everyday! FlyPittsburgh.com 22

23 Advertising Location, Location, Location 23

24 Why It Works Airports are Community assets Authority willing to make an investment Community willing to make an investment Open and trusting lines of communications Cultural asset support 24

25 Why It Works Pre planning network allows rapid response When opportunity knocks it is not an exercise The community and corporations buy airline seats Airlines are corporations 25

26 Success To Date Healthy mix of legacy and low cost carriers True community and corporate support Low cost carrier expansion Delta to Paris United to West Coast Cargo niche 26

27 The Pittsburgh Summit (G 20) September 24 25, Pittsburgh builds upon its historic strengths as a hub for manufacturing, finance, business services and energy. 2. Pittsburgh leverages human capital to create new industries based on research, innovation and entrepreneurship. 3. Pittsburgh capitalizes on its natural and cultural assets to invest in infrastructure and facilities that improve our quality of life. 27

28 ACI NA Annual Conference September 26 29, 2010 Pittsburgh, PA 28