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Revenue and Cost Saving Ideas for IAA
 

Revenue and Cost Saving Ideas for IAA

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Complied list of cost savings recommendations made to the Indianapolis Airport Authority. Completed Summer 2010 as Intern for the Indianapolis Airport Authority.

Complied list of cost savings recommendations made to the Indianapolis Airport Authority. Completed Summer 2010 as Intern for the Indianapolis Airport Authority.

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    Revenue and Cost Saving Ideas for IAA Revenue and Cost Saving Ideas for IAA Document Transcript

    • IND Revenue Ideas June 14, 2010 By Chris Homko
    • Table of ContentsTable of Contents....................................................................................................2Introduction.............................................................................................................3 Fuel Flowage Fee Increase...............................................................................................3 Airport Rescue Fire Fighting Training Academy............................................................3 Fire Extinguisher and Personal Protective Equipment Training for Airlines..................3 Hay and Crop Permits......................................................................................................3 LED Lighting...................................................................................................................4 Infrared Deicing...............................................................................................................4 Terminal Revenue Ideas..................................................................................................4 Scavenger Hunt............................................................................................................4 Shop-And-Buy Parking Rate Reduction Program.......................................................4 Expos................................................................................................................................4 2
    • IntroductionThese are brainstorming ideas suggested to help increase airport revenue and possiblylower the per passenger enplanement fee. Please keep in mind that these ideas have notbeen researched thoroughly and I do not have inside knowledge of the fee structure ofIAA, nor the history or reasons for such fees.Fuel Flowage Fee IncreaseSince 2008, passenger enplanements have been down due to the dip in the economy.Regardless of how many passengers are taken aboard an aircraft, it still must carry thesame amount of fuel to reach its intended destination and then it’s alternate with areserve. Therefore, fuel is a more consistent revenue source than passenger enplanements.Raising the fuel flowage fee, even by a few cents may be enough to allow for a decreasein the passenger enplanement fee and be “transparent” to the Airlines.Airport Rescue Fire Fighting TrainingAcademyI am uncertain, but almost sure that IAA does not have an ARFF training academy. Thisacademy could charge a nominal fee to train fire fighters in the arts of airport firefighting. This academy could also correspond with the national fire fighters convention inIndianapolis that is typically held annually in June. Some notable airports that offer suchtraining are Denver International and Dallas Fort Worth International Airport FireDepartments.Fire Extinguisher and Personal ProtectiveEquipment Training for AirlinesGoing off of the ARFF training academy idea, airline crewmembers must be trainedinitially and every 24 calendar months on basic fire extinguisher use and personalprotective equipment training (initially) as per FAA CFR 121.417. A nominal fee couldbe charged for these services by the fire department.Hay and Crop PermitsFarming of crops in the immediate vicinity of airports has been deemed as anincompatible use of airport land due to the attraction of birds. However, IAA currentlyhas thousands of undeveloped acres of land away from the immediate vicinity of theairport. The state of Alaska uses the following fee schedule for hay and crop permits atAnchorage International Airport. Hay - $1 per acre/year and crops - $25 per acre/year or25% of gross revenue. 3
    • LED LightingMany airports across the country seem to be installing Light Emitting Diode (LED)lighting in both indoor and outdoor applications including the airport runway lighting andsignage. It is said that LED lighting can reduce airport lighting electricity fees 80% orgreater. Some airports implementing this idea are: • Port Authority of NY (JFK, LGA, TEB, EWR) • PIT Airport • MCO Airport • TPA AirportInfrared DeicingThe Port Authority of NY is currently utilizing IR deicing that can handle an aircraft thesize of a Boeing 747. It is said that this reduces the use of glycol de-icing fluid by 90%.This would be accomplished by the elimination of the need to use Type II 50/50 watermix fluid to remove the ice and snow from an aircraft. Type IV fluid (the sticky jelly typeof fluid) would still be needed to prevent ice and snow build-up post deicing. Thewastewater processing of glycol is an expensive process and may be worth the trade inelectricity cost, especially if implemented in conjunction with LED airport lighting.Terminal Revenue IdeasScavenger HuntDenver International Airport currently lists a scavenger hunt on their website for both preand post security areas. This would allow passengers (especially children) something todo while waiting for a flight. Read more about it here:http://flydenver.com/airportscavengerhuntShop-And-Buy Parking Rate Reduction ProgramMalls such as the Simon Properties Circle Center Mall utilize such a program. From:http://www.simon.com/mall/GuestServices.aspx?id=163“An Event Parking rate of $20.00 may be charged during major downtown functions.Visitors will be notified of Event Parking schedules upon entry into any Circle Centregarage. If a visitor shows a $20 receipt from any Circle Centre merchant from that day,normal parking rates will apply.” This could help boost the retail sales of concessionairesand help make the airport a shopping destination rather than just an airport terminal.ExposCurrently other airports host expos that are aviation oriented. Examples of such might be: • AOPA’s Annual Expo • Chicago’s Systems Safety ExpoExpos could be held at Indianapolis Regional Airport (Mount Comfort) in addition to theannual Indianapolis Air Show. 4