Airport Management FBO Operations Property Development Revenue Enhancement Strategies

Transcription

1 Airport Management FBO Operations Property Development Revenue Enhancement Strategies American Airports Corporation 2425 Olympic Boulevard, Suite 650 East Santa Monica, California (310) FAX (310)

2 American Airports Corporation ( AAC ) is a highly experienced operator and manager of public airports and fixed base operation (FBO) facilities. Founded in 1997 and headquartered in Santa Monica, California, AAC is one of the largest general aviation airport management companies in the United States. AAC also develops and owns individual aviation and FBO facilities. We manage a combined network of 5 airports and 1 FBO, with the airport operations of over 430,000 per year, and manage over 1,500 tenants at airports ranging from Primary Reliever, to uncontrolled fields. Since December 2000, AAC has successfully operated and managed all of the Los Angeles County owned Airports on behalf of the County of Los Angeles, California. The most recent addition is our operation at Clinton National Airport, where we have just completed over $30,000,000 in new capital improvements, which added 14 new employees, while creating additional jobs in the area as a result of this new development. With annual revenues in excess of $20 Million, and an experienced airport management team, AAC is well qualified to provide comprehensive management, operations, development and maintenance services. The uniqueness of our size, and that we are an American-owned and headquartered company, allow for all key personnel in the firm to be familiar with, and closely involved in, the development decisions of each project, as well as for unprecedented responsiveness to customer needs. American Airports Corporation provides high-quality management and operations assistance (including security & safety), marketing, business development and land development services to airports in the Continental United States. Our mission is quality service, promotion of aviation and the enhancement of Airports or aviation assets. Unparalleled Competence and Expertise The professionals associated with AAC are experts in working with airport operators in developing creative and innovative public/private partnerships for the management, operation and development of airports and FBOs. American Airports Corporation recognizes that each airport presents unique challenges, as well as exceptional opportunities. It requires experience, creativity and innovation to structure an appropriate plan for each airport. The following are a few of the benefits and services as well as management philosophy that AAC s thoughtful planning can provide: Lower costs to airport owner. AAC s innovative management practices and crossutilization of employees result in increased efficiency (and as a result, lower costs) in the existing aviation operations, such as terminals, hangar rentals, tie-downs, storage facilities, fixed base operations, management of control tower operations, and other aviation-related services. Increased revenues. As a result of lower costs, increased net income can be used to modernize facilities and improve infrastructure, resulting in increased revenues.

3 Increased tax revenues from development of underutilized land. One of the primary benefits AAC provides is the professional creation and execution of a plan for the development of underutilized airport land. This will increase jobs in the region and create new taxable revenue streams from sales tax, employment tax and property taxes. Development opportunities include, but are not limited to: o Renovation and construction of new terminals, hangars and storage facilities o Master planning, ground leasing and development of hotels, office buildings, retail facilities, industrial parks, storage facilities, etc. o Development of golf courses, parks and other recreational facilities o Leasing land for agricultural uses where appropriate Private and government financing. AAC can provide, or assist airport owners in securing, private financing for the development of new airport facilities, as well as the renovation of existing facilities. We are also experts in obtaining and administering FAA, Federal, State and local grants. Value enhancement. An improved image of an airport and, consequently, the surrounding areas, will attract new development in the community. This brings new jobs and new sources of taxable revenue. Improved user satisfaction. Upgraded facilities and increased efficiencies will lead to higher user satisfaction, which generates additional uses, creating a more profitable operation. Success for public officials and airport authority. A properly structured public/private partnership will be viewed as a success for elected officials and the airport authority. This success will come, in part, from increased revenues for the airport, improved image for the region, increased property tax base, as well as perks for the region, such as parks and recreational sports complexes. Airport Operation. Team members of AAC are recognized leaders in bringing airports into compliance with required Federal regulations, and providing model operating manuals and compliance with the rapidly growing security requirements of aviation facilities. Airport Management AAC operates safe airports in compliance with Federal, State, local laws, and is responsive in dealing with noise and community relations. AAC has instituted safety and security training at all the Los Angeles County airports. AAC has expertise in general aviation and uses industry best practices gained from experiences at other airports and business operations. Airport users and neighbors will gain an airport operator that is experienced and without any disruption in quality service or needing a steep learning curve.

4 Fixed Base Operator Development & Management AAC has over twenty-six years of experience in operating state-of-the-art FBO facilities. Our unmatched industry-leading customer service sets AAC apart from our competitors. AAC Supermarine FBOs are admired as the finest in the industry. We are dedicated in delivering the highest quality of customer service in the friendliest most professional manner possible. AAC accomplishes this mission through detailed attention to our customers needs and requirement while providing services in a safe and secure environment. Financial Capabilities AAC is an established, reputable airport management firm with a solid balance sheet, strong banking relationships and credit facilities. AAC s management combined has 145 years of aviation experience. AAC s continuity and longevity of its excellent working relationship with the County of Los Angeles demonstrates that AAC can fulfill all contractual obligations. Since taking over the management and operations of the Los Angeles County Airport System in 2000, American Airports Corporation has shown a history of steady revenue growth and a reduction in operating expenses. AAC grew revenues from $6,000,000 in 2001 to $17,000,000 in 2012, a 183% increase. AAC currently pays the County of Los Angeles the greater of a minimum annual payment or a percentage of revenue. AAC is an excellent partner which maintains and invites open communication and is quick and responsive to questions or requests. AAC provides detailed reporting and receives excellent audit results and tenant satisfaction surveys. At a time where many U.S. airports are facing closure or are having difficulty maintaining the airport s infrastructure, an experienced, efficient, financially stable, professional general aviation airport management company such as AAC can ensure that airports and FBOs are safe, well maintained and well funded profitable enterprises.

5 American Airports Corporation Executive Team David G. Price Chairman and Chief Executive Officer For over thirty years, David G. Price and his companies have worked to develop innovative public/private partnerships for the management of publicly owned assets. Under these relationships, Mr. Price has efficiently and successfully managed numerous municipal and privately held assets. Mr. Price is the owner/developer of the highly successful Supermarine FBO and the Museum of Flying at the Santa Monica Municipal Airport, CA, and has a broad range of experience in the development of airport properties. Mr. Price was the founder and Chairman of American Golf Corporation and National Golf Properties, which he sold in early American Golf managed/leased more than 350 golf courses, many of which were municipal and third-party leases. Edward R. Sause President Edward R. Sause has over 30 years of experience in finance and administration, and has served in a broad spectrum of industries including aviation, leisure, entertainment, and food & beverage. Mr. Sause currently serves as the President for American Airports Corporation and is responsible for acquiring properties, raising the necessary capital to leverage opportunities, and direct strategic financial development. Mr. Sause served as Vice Chairman and Chief Financial Officer of American Golf Corporation, and Chief Financial Officer of National Golf Properties, and was responsible for all financial and administrative matters, including budgeting, forecasting, MIS, treasury, tax, legal, purchasing, and Internet development. A Certified Public Accountant (CPA), Mr. Sause also served as an Audit Manager for Price Waterhouse, as well as Vice President and Controller for Columbia Pictures Television, Columbia Pictures Motion Picture Division, Columbia Pictures International, and for the Entertainment Business Sector of The Coca- Cola Company. Mr. Sause is a trustee of the Museum of Flying. Scott A. Wardle Vice-President and Director of Operations Mr. Wardle has over 20 years of aviation experience. He was previously the General Manager of Supermarine of Santa Monica and the Facility Manager of a full service FBO at Van Nuys Airport. Prior to working in general aviation, he served as an avionics technician in the Marine Corps and is a Gulf War veteran. As Director of Operations, Mr. Wardle is responsible for overseeing the daily operations of airports and FBOs.

6 Robert D. Trimborn Director of Business Development Robert D. Trimborn has over 30 years of experience in managing and directing general aviation reliever airports. Mr. Trimborn is responsible for the development of innovative public-private partnerships related to the development, management, and operation of airports and FBO s including aviation and non-aviation facilities. He spent the last seventeen years at the City of Santa Monica as their Airport Director where he managed one of the busiest and most high profile general aviation airports in the nation. He was instrumental in establishing and implementing a myriad of industry-leading programs and initiatives. A Proven Leader in the Field of Airport and FBO Management and Development As an established General Aviation Management Company with a track record of success in both managing and operating airports and FBOs, American Airports Corporation is uniquely qualified and positioned to help airports achieve their goals and objectives. Contact us to further discuss your airport s needs and to explore a partnership that will lead to enhanced and improved economic performance and operation of your airport or FBO. For additional information, please contact: Robert Trimborn, Director of Business Development 2425 Olympic Boulevard, Suite 650-E Santa Monica, California rtrimborn@americanairports.net (Direct) (Main) Fax: or: Edward R. Sause, President 2425 Olympic Boulevard, Suite 650-E Santa Monica, California esause@americanairports.net (Direct) (Main) Fax:

7 Operation of Los Angeles County Airport System For the past 13 years AAC has operated five airports under a lease contract with the County of Los Angeles. Gross annual revenues from these airports are over $16,000,000, and AAC makes guaranteed lease payments to the County. Over 1,500 tenants are serviced by 80 employees based at these airports. Services provided for the County of Los Angeles include: Manage and operate the airports for the use and benefit of the County and the general public seven days a week, 24 hours a day, in a safe and efficient manner and maintain them in a clean, orderly, safe, and operational condition in conformity with all applicable Federal, State, and Local laws, rules and regulations. Operate, maintain, repair, and inspect all airport grounds, facilities, buildings, runways, taxiways; and provide all services as are customary and usual to such operations, including inspections of aircraft storage hangars and daily inspection of airport grounds. Maintain written logs of all complaints received, i.e., those concerning employee appearance, attitude, service, lack of facility maintenance, or anything in connection with airport operations, maintenance, or fuel facility operation. Provide for the operation, maintenance, regulatory compliance, and repair of the aircraft fueling facilities (both self-service and truck-based into-plane) and equipment, maintaining responsibility for product quality control and provide continuous service 24 hours, 7 days a week. Provide for the operation, maintenance, and repair of Crash Fire Rescue vehicles, including having personnel trained for emergency response 7 days a week and 24 hours a day. Administer and monitor existing and future agreements and leases with airport tenants (i.e., Fixed Base Operators, concessionaires, etc.) Develop plans for capital infrastructure, facility improvements, and special projects. Prepare and negotiate new lease agreements. Collect all fees and payments due, using uniform procedures to provide accountability, control, and security of funds. Prepare reports and statistical data such as monthly financial and operational reports.

8 Prepare annual operating budgets for each airport. Attend monthly meetings of the aviation commission and with various groups, organizations, and governmental agencies, including airport associations, airport users, safety, planning, and community meetings. Ensure a positive image for the airports by being responsive to community complaints and inquiries and organizing annual airport open houses or other events, which foster good community relations. Provide information for County officials to answer inquiries by the news media, such as aircraft accidents, airspace problems, construction projects, damaged infrastructure, disaster-related concerns, etc. Proactive Public Relations and Involvement AAC proactively addresses public information dissemination, hearings and strategies for the County of Los Angeles five airports including performing the following services: Manage and operate the airports for the use and benefit of the County and the general public seven days a week, 24 hours a day, in a safe and efficient manner and maintain them in a clean, orderly, safe, and operational condition in conformity with all applicable Federal, State, and Local laws, rules and regulations. Attend monthly meetings of the aviation commission and with various groups, organizations, and governmental agencies, including airport associations, airport users, safety, planning, and community meetings. Ensure a positive image for the airports by being responsive to community complaints and inquiries and organizing annual airport open houses or other events, which foster good community relations. Provide information for County officials to answer inquiries by the news media, such as aircraft accidents, airspace problems, construction projects, damaged infrastructure, disaster-related concerns, etc.

9 Synopsis of Airports Currently Operated Under Contract Brackett Field Airport (KPOC) - La Verne, CA Brackett Field is a controlled 258-acre general aviation airport, which is located within the city limits of La Verne, and is 25 miles east of downtown Los Angeles. The airport has 300 based aircraft and experiences over 114,000 annual operations. It is home to a state-of-the-art FAA air traffic control tower; three FBO operators; helicopter maintenance; aircraft maintenance; instrument sales and repairs; and Mount San Antonio College Aviation Department, its Power Plant School, and A&P Airframe. Brackett Airport has two paved runways. Runway 8R/26L, the primary runway, is 4,839 feet long, 75 feet wide, with medium-intensity runway lighting (MIRL). The secondary runway, runway 8L/26R, is 3,661 feet long, 75 feet wide. The airport has one precision approach (ILS RW 26L), and each end of runway 8R/26L is equipped with precision approach path indicators (PAPI). A new high-speed taxiway exit has just been completed and Brackett also has a new AWOS.

10 Compton/Woodley Airport (KCPM) - Compton, CA Compton/Woodley Airport is a 77-acre, uncontrolled general aviation airport. The airport is located near Interstate 91 and the new Home Depot Center sports complex, about 10 miles south of downtown Los Angeles. The airport has 192 based aircraft and approximately 60,000 annual operations. It is home to several FBOs that offer aircraft maintenance, painting, and other aircraft services. Compton/Woodley Airport has two paved parallel runways: 7L/25R and 7R/25L. Runway 7L/25R is 3,670 feet long, 60 feet wide, with no lighting. This runway is used for VFR operations during the day only. Runway 7R/25L is 3,670 feet long, 60 feet wide, with medium-intensity runway lighting (MIRL). Only runway 25L has runway end identifier lights and a two-box precision approach path indicator (PAPI). The Airport has a new AWOS and recently went through a $6.8 million Pavement Rehabilitation Project, replacing all the old pavement on the airport.

11 El Monte Airport (KEMT) - El Monte, CA This controlled 103-acre general aviation airport is located within the city limits of El Monte, California, and 15 miles east of downtown Los Angeles. El Monte Airport has 300 based aircraft and experiences over 97,000 annual operations. It is home to a state-of-the-art FAA air traffic control tower, three FBO/flight schools, several air-craft maintenance facilities, flying clubs, and several local law enforcement helicopter operations. The airport is often the backdrop for the nearby motion picture industry. The well-known TV show, America s Most Wanted, has filmed on the premises. El Monte Airport has one paved runway. Runway 1/19 is 3,995 feet long, 75 feet wide, and is equipped with medium-intensity runway lighting (MIRL). Each end of the runway is equipped with precision approach path indicators (PAPI) and runway end indicator lights (REIL). The airport itself has undergone some significant upgrades such as comprehensive runway lighting and signage improvements, and AOA perimeter fencing on the west side of the airfield. The construction of a 7,650 square foot Administrative Building was completed in August 2001, and serves airport patrons and the community with a restaurant, a pilot s lounge, gift shop, airport management offices, and a multi-purpose meeting area. Completed projects include a slurry seal for the runway, taxiway and ramp areas, and a new AWOS; and projects under way include a new security access system and perimeter fencing on the remainder of the airfield.

12 General William J. Fox Airfield (KWJF) - Lancaster, CA Fox Airfield is a 1200-acre, controlled general aviation airport, located three miles northwest of Lancaster, California. It is the only general aviation airport in the Antelope Valley, serving several communities including Palmdale, Rosamond and Lancaster. The airport has 160 based aircraft and experiences over 50,000 annual operations. It is home to a state-of-the-art FAA air traffic control tower, two FBO operators, a U.S. Department of Forestry Base, Aircraft Museum, and several other aviation-related businesses. Fox Airfield has one paved non-precision instrument runway. Runway 6/24 is 7,200 feet long, 150 feet wide, with medium-intensity runway lighting (MIRL). Each end of the runway is equipped with a 4-light precision approach path indicator (PAPI). The airport has also become a preferred site for still photography at twilight s magic hour. The airport itself has undergone some significant upgrades, including the extension of the runway from 5,000 feet to 7,200 feet, new lighting and signage, a new AWOS, and a complete retrofit of the fueling facility. Other projects currently under way are the overlay of the tie-down and ramp areas, reinforcement of parking areas for heavy aircraft, and the installation of a wireless security and monitoring system. Improvements to the infrastructure include the upgrade of the water system from its current well water system to City water. Future projects include land acquisition, restaurant modifications, security fencing, electric gates, and hangar development for aircraft parking.

13 Whiteman Airport (KWHP) - Pacoima, CA Whiteman is a controlled, 184-acre general aviation airport, located in the middle of the San Fernando Valley and three major freeways, with downtown Los Angeles 15 miles to the southeast, and Santa Monica 15 miles to the south. The airport has 500 based aircraft and experiences over 115,000 annual operations. Whiteman is home to a state-of-the-art contract air traffic control tower, three FBOs, three major maintenance repair stations, flight schools, and helicopter maintenance operation. It is often a backdrop for the motion picture industry, including Warner Brothers: Matrix 2 & 3 and Showtime; Paramount Pictures: The Italian Job; KNBC Productions: Jag and Las Vegas; BMW with the BMW Corporation; Red Line Productions: Charlie s Angels; and Fox: X-Men 2 (X2) and 24. The airport also offers a convenient site for film production equipment parking. Whiteman Airport has one paved runway. Runway 12/30 is 4,120 feet long, 75 feet wide, and is equipped with medium-intensity runway lighting (MIRL). Each end of the runway is equipped with a two-light precision approach path indicator (PAPI). A new access road and security system were completed for the control tower, as well as completed construction of a new perimeter road, which will keep vehicle traffic on the airfield to a minimum, and allow tenants and other customers access to FBOs and a future industrial center. Whiteman also has a new AWOS.

14 Synopsis of Current Fixed Base Operation Current: Supermarine of Little Rock - Clinton National Airport, AR Size: 10,000 SF Executive Terminal 95,000 SF Hangar and Office Space additional 170,000 SF planned Cost: $30,000,000 Annual gallons sold: 1,400,000 Under the Supermarine brand, AAC operates and has developed a new fullservice FBO on 25 acres at Little Rock National Airport. The project consists of a new executive terminal, community and corporate hangars, office, maintenance shop, upgraded and expanded ramps, parking, and a new fuel farm. Synopsis of Previously Operated Fixed Base Operations Supermarine of Santa Monica - Santa Monica Airport, CA Size: 9,400 SF Terminal 74,000 SF Hangar Bldg 70,000 SF Office 200,000 SF Ramp Cost: $20,000,000 Annual gallons sold: 3,000,000 Under the Supermarine brand, AAC developed, owned and operated the FBO facility at Santa Monica Municipal Airport, one of the busiest G/A and Reliever airports in the U.S. The FBO serviced and fueled over 9,000 private jets each year.

15 Supermarine of Stewart Stewart International Airport, NY Size: 6,000 SF Exec. Terminal 120,000 SF Hangar Cost: $14,000,000 Annual gallons sold: 7,000,000 Under the Supermarine brand, AAC owned and operated Stewart International Airport s premier, fullservice FBO which included hangar space capable of holding aircraft up to a B-737, and a 40,000 gallon fuel farm. Its modern facilities and unique capabilities provided fuel, aircraft storage, and aircraft maintenance. AAC has also managed airports at: Former Airport Management Contracts Midway Atoll for the US Department of Fish & Game Part 139 FAA Certified Altoona-Blair County, PA Winder-Barrow, GA Newman-Coweta, GA