2013-14 Year In Review

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Flying Ahead

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Building on the successes of recent years, Blue Grass Airport

made great strides in Fiscal Year 2014 (July 2013-June 2014). Air service expanded to include two new destinations and several additional flights. Our community relations efforts continued to thrive through new events and corporate partnerships. Our departments have become more efficient and reflect the airport’s core values of integrity, respect and responsiveness. In all that we do—from public safety efforts to guest services—we continually seek ways to advance toward the ideal and innovative airport of the future. We are proudly flying ahead!

At A Glance:

3,478 Jobs

104 million

$

Payroll

370 million

$ Photo by Faron Collins

Output

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Message from the Executive Director Over the past several years, we have transformed our organization in ways that strengthen its foundation and engender greater efficiency and innovation. Completed terminal renovations enable us to serve our customers even better, and a realigned secondary runway enhances safety and supports our general aviation community. And, this past year, we finalized a master plan that outlines our long-term strategy for improvement projects, ensuring that we have the needed infrastructure to continue as an economic driver for our community for a long time to come. From building strong relations with the general aviation community to bringing our terminal advertising program in-house, our goal is always to be an airport worthy of the wonderful community we serve. We will follow the course we have charted for the future while seamlessly taking advantage of beneficial opportunities as they arise. We are poised for ongoing success. Our very own history book—Blue Grass Airport: An American Aviation Story—chronicles aviation in central Kentucky from early air strips through the present day, portraying it through a national lens, shedding light on nearly forgotten community memories and stories. We released this book in spring 2014 and appreciate all of our partners, whose generous support made this book possible.

n

Looking back, we are proud of how far we have come. For this, I would like to thank the Lexington-Fayette Urban County Airport Board, our employees and our many stakeholders. Their boundless enthusiasm and energy have shaped the airport into what it is today. Flying ahead, we are eager to experience what is next. Sincerely,

n

Eric J. Frankl, A.A.E. Executive Director

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Airport Board of Directors Like many commercial service airports in the United States, Blue Grass Airport is owned and operated by an independent unit of local government. As Blue Grass Airport’s governing body, the Lexington-Fayette Urban County Airport Board represents the interests of the community and provides oversight and policy direction to maximize the value of this important asset. Established in 1945, the airport board currently comprises 10 members appointed by the mayor and confirmed by the members of Urban County Council. Members are limited to two four-year terms.

Top left to right: Richard Hopgood; Nancy Wiser (Chair); Chuck Ellinger; W.V. Alford, Jr.

Top left to right: Doris Benson (Secretary); Kelley Sloane; James Coles

Bottom left to right: J. Robert Owens; Larry Deener (Vice Chair and Treasurer); Roszalyn Akins

Bottom: Elizabeth Woodward

Our Core Values

Our Vision

Integrity Service Respect Flexibility Innovation Responsiveness Inclusiveness

Blue Grass Airport will be a responsive and essential link in the economic and cultural vibrancy of the Bluegrass.

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Our Mission To provide convenient transportation facilities and services that meet or exceed the needs of the region in a safe, efficient, customer service-oriented, and fiscally and environmentally responsible manner.

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Commercial Aviation Blue Grass Airport continued to work with the airlines to encourage new routes and more frequency in the region. The merger of American Airlines and US Airways this past year resulted in the country’s largest airline by total passengers served. The airport was fortunate to add two new non-stop destinations to its expanding route map. American Airlines/US Airways began service to Philadelphia on June 5. With three daily flights, leisure passengers can explore Philly and enjoy its world-famous cheesesteak sandwiches, or business travelers can connect through the city for access to destinations worldwide. Following the launch of this new service, the combined airline serves 127 destinations in 25 countries from Philadelphia.

service to Orlando and today serves five vacation destinations from Lexington including Orlando, Punta Gorda, Fort Lauderdale, Tampa Bay and Myrtle Beach. As part of its recent master plan, the airport evaluated the state of the aviation industry and projected future passenger and commercial aviation demand. Key factors, including community demographics, level of airline service provided and competition from nearby airports, were considered. This information assists the airport in assessing its long-term strategic vision and keeps us flying ahead.

571,198 Enplanements 572,126 Deplanements

1,143,324 Total Passengers

5.4% increase from FY 2013

Allegiant began seasonal service to Myrtle Beach on May 29. Central Kentuckians can enjoy access to South Carolina’s Grand Strand with twice weekly service offered throughout the summer. Known as the “Seaside Golf Capital of the World,” Myrtle Beach offers world-class golf and more than 60 miles of sandy beaches. Allegiant first began service at Blue Grass Airport in 2008 with non-stop

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Flying Ahead: More Partners, More Services The past year brought several new on-site partners including AirMart Aircraft Brokerage and Sales, a family business with 40 years of experience in aircraft sales. NexGen Aviation also became a partner and offers scenariobased flight training for people seeking to earn a pilot’s license, whether to begin a career in aviation or because of strong affinity interests in aviation.

General Aviation

2013 By the Numbers LEX Serves University Basketball and Football

8 94 4,329 Charter Operators

Charter Flights

Athletic Charter Passengers

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General or private aviation continues to be a significant component of the total operations at Blue Grass Airport. As the economy has grown stronger, general aviation flights to and from Lexington increased. This increase is expected to continue in the future, according to a demand analysis completed as part of the master plan process, which considered historical data, regional demographics, FAA projections and industry trends. To accommodate an ever-growing demand for aircraft storage, the airport broke ground for new hangars alongside Runway 9-27. The airport collaborated with Keeneland and area stakeholders to develop plans for structures that are architecturally reflective of Lexington’s equine heritage. These new hangars will balance the needs of airplane owners while maintaining the character of the region.

Additionally, TAC Air, the airport’s fixed-base operator, recently won two awards. The readers of Professional Pilot magazine named TAC Air “Best Line Service” and “Best Value.” TAC Air provides the aviation community with valuable services, including fueling and deicing, from its flagship facility in Lexington. In addition to managing the needs of the business and leisure traveler, Blue Grass Airport provides much support to university athletics, especially during football and basketball season. At left are some of the highlights from 2013 collegiate tournaments.

Flight school Aero-Tech, Inc. was recognized for its high standard of accomplishment in flight training by the Aircraft Owners and Pilots Association (AOPA), which awarded AeroTech a place on the Flight Training Excellence Awards Honor Roll.

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The LEX Experience We pride ourselves on the convenience and hospitality provided to our passengers. The airport recently upgraded its wireless internet throughout the terminal, making it two and a half times faster—and it’s still free! This upgrade provides passengers faster and easier access to tools such as the airport’s mobile website—complete with flight status information—or apps for mobile boarding. In its ninth year of service, The Club at Blue Grass continues to provide an upscale environment offering business services, personalized attention and a comfortable lounge for airline club members and day pass guests. As a way to thank our service men and women, The Club provides complimentary admission to all uniformed military members along with a small gift and personalized thank-you note from airport staff. Airport partner The Paradies Shops began its “Treat Our Troops” program this past year. Passengers participate by visiting any of the airport gift shops and purchasing an extra snack, drink, toiletry or phone card for troops. These items are distributed to local organizations and various base camps located overseas. To date, passengers at Blue Grass Airport have donated items totaling more than $17,000 to the program.

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Top

10

Destinations

1.

Orlando (Sanford)

2.

Ft. Lauderdale

The airport completed a renovation of its administration area, including a new board room and several smaller conference rooms, complete with top-of-the-line technology for meetings. Located pre-security, these rooms are available for rent and provide great venues for corporate interviews and meetings. Food and beverage options in the terminal continue to expand. The airport and concessionaire Creative Food Group welcomed national coffee brand Dunkin’ Donuts and Pepper’s Mexican Grill—a second full-service restaurant in Concourse B.

3.

Punta Gorda (Southwest Florida)

4.

St. Petersburg/Clearwater

6.

Chicago O’Hare

6.

Dallas

7.

New York LaGuardia

8.

Atlanta

9.

Washington, DC

10.

Los Angeles

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Community and Business Outreach

10,000+ Coloring Books Distributed to Young Travelers

Blue Grass Airport continuously strives to improve the quality of life for its stakeholders through community and business outreach. The airport partnered with organizations such as the American Red Cross, Aviation Museum of Kentucky, Bluegrass Hospitality Association, Bluegrass Tomorrow, Kentuckians for Better Transportation, Lexington Minority & Women Contractor Training Program and Urban League of Lexington. Initiatives included: Honor Flight of the Bluegrass: Forty veterans flew to Washington, D.C. to visit the memorials and were greeted at the airport by hundreds of members of the community upon their return.

600

Horses Transported

Commerce Lexington Business Link: Local business members met for an evening of networking at the airport, resulting in the most highly attended Business Link of the year.

Disadvantaged Business Enterprise (DBE) Partnerships: The airport continued to support participation by DBEs in its design and construction projects. Airport efforts have resulted in over a decade of successfully exceeding its DBE contracting goals. United Way 5K on the Runway: More than 700 runners participated in this unique race, which serves as the United Way’s largest fundraising event of the year. The airport continued to build new relationships with corporate partners through its Terminal Advertising Program, which recently included the addition of two large digital displays. These video walls provide advertisers with the unique opportunity to promote their company to a large volume of travelers.

Group Tour Program: More than 500 school children explored the terminal for a glimpse into daily airport operations.

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Introduced this spring, Blue Grass Airport: An American Aviation Story sheds light on the remarkable history of aviation in central Kentucky. Early airfields, air circuses, airplane crashes and famous aviators made headlines in Lexington’s local papers. Politics, private aviation, transporting horses by air, visiting celebrities and royalty, and a notorious hijacking are just some of the fascinating stories revealed in this book. Over 400 photographs illustrate the challenges, triumphs and tragedies that Lexington experienced as it began to look to the skies for transportation and commerce. The book was launched with multiple book signings by NASA astronaut Story Musgrave, who wrote the introduction to the book and earned his pilot’s license in Lexington. Purchase the book at area retailers or visit bluegrassairport.com/book for online sales. Clockwise from top: President and Mrs. Eisenhower at Blue Grass Field (1956); Secretariat’s arrival (1973); original terminal (circa 1946)

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Photo by Faron Collins

Operations & Safety Regional Fire Training Center Located on 20 acres adjacent to the airport, Blue Grass Airport’s Regional Fire Training Center hosts a variety of classes throughout the year including basic aircraft rescue firefighting and FAA-required certification burns.

35+ 9 400

Training Classes

States Represented

Blue Grass Airport is dedicated to the highest safety standards and is committed to providing a secure airport. Emergency response plans are routinely tested throughout the year and during an annual table-top exercise and triennial full-scale exercise. The 2014 fullscale exercise had more than 300 participants from the airport, airlines, Lexington Division of Police, Lexington Fire Department, Federal Bureau of Investigation, Transportation Security Administration, American Red Cross and many others. This exercise provides an opportunity to practice, evaluate and improve emergency response skills and includes a simulated aircraft incident where all airport staff and emergency response agencies respond to the scene as if it were an actual emergency. In October 2013, Blue Grass Airport implemented a new mass notification system for all administrative employees. This comprehensive system keeps employees informed before, during and after all emergency or non-emergency events. It includes features

such as geo-notification, text-message alerts and an app for smartphones that employees can use to receive notifications and up-todate information. Airport staff continuously sought ways to improve efficiencies in airport operations and communications. The public safety and operations teams received new 800 MHz simulcast radios providing better coverage across the 285 square-mile metropolitan area as well as full interoperability among Blue Grass Airport, Lexington’s police and fire departments and University of Kentucky. Upon completion of its new master plan, Blue Grass Airport was able to improve its data in utilities, leasing, airfield, airspace and other airport facilities with a state-of-the-art geographic information system (GIS). Further steps have been taken to create a complete property facilities inventory that will be transitioned into the GIS over time. This system will be invaluable for capital improvement project planning in the future.

Attendees

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Photo by Faron Collins

Flying Ahead: Educating Future Aviators Through partnership with local schools and universities, the airport invests time in preparing students for future aviation and business careers. Students from Woodford County High School, Dunbar High School, Eastern Kentucky University and University of Kentucky interned with the airport operations, accounting, marketing and engineering departments. Additionally, Scott County School District engaged the skills of the airport’s public safety director for a mock aircraft disaster training exercise.

Fiscal Responsibility Blue Grass Airport makes a commitment to the community and its stakeholders that it will adhere to the strongest ethical standards and ensure fiscal responsibility. The airport remains financially healthy as administrative staff prudently managed its operating expenses along with $7.8 million in capital improvement projects this fiscal year. We are pleased to report that the relationships with our airlines and stakeholders remain strong. These partnerships have been mutually beneficial and are critical to the airport’s long-term success.

Fiscal Year 2014 Gross Operating Revenue

Fiscal Year 2014 Gross Operating Expense

in (000s)

in (000s) 516

Airline

$ 5,167

Parking 4,771 Car Rental 2,045 General Aviation

1,177

Concession 516 Advertising

364

Other 355 Total

364 355

$ 14,395

1,177 5,167 2,045

Salaries and Benefits $ 5,915 Maintenance 1,380 and Supplies

458

Utilities 1,043

1,043

Supplies and Equipment 4,771

336

360 427

458

265 150

5,915

1,380

Marketing 427 Other 360 Insurance 336 Professional Services

265

Travel 150 Total

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$ 10,334

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4000 Terminal Drive, Suite 206 Lexington, KY 40510-9607 859.425.3100 bluegrassairport.com

Photos by Bill Straus Photography, unless otherwise noted

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