Strategic Business Plan 2014-2019
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O u r A p p r o a c h t o t h e Fu t u r e
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Lexington-Fayette Urban County Airport Board Nancy Wiser, Chair Larry Deener, Vice Chair & Treasurer Doris Benson, Secretary Roszalyn Akins W.V. Alford, Jr. James Coles Chuck Ellinger Richard Hopgood
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Our Strategy, Our Approach As the primary air transportation provider for central Kentucky, Blue Grass Airport is a catalyst for economic growth in the region. Through an array of services, including commercial flights, private aviation and horse transport, the airport supports the transportation needs of the community. To ensure its long-term success, the LexingtonFayette Urban County Airport Board has developed a comprehensive strategy to outline its approach to the future. This Strategic Business Plan highlights the vision and mission of the airport along with the core values the Airport Board members and staff strive to maintain through all of their business practices. This plan will guide us in setting new standards of excellence as we provide greater access to the rest of the world, best-in-class customer service and operational efficiency— all while helping our local economy thrive. Like many commercial service airports in the U.S., Blue Grass Airport is owned by an independent unit of local government and
operated by a governing board. Its 10 members are appointed by the mayor and approved by the Lexington-Fayette Urban County Council. Our airport operates without local tax dollars. For that to continue, we must remain prudent and plan effectively so we can add long-term value for the next generation. The Airport Board was pleased to participate in the development of this Strategic Business Plan and will partner with the executive director and airport staff to see its execution through to fruition. We look forward to focusing on the strategic initiatives outlined on the following pages and will review them annually as we develop our budget and observe changes in the industry. We are confident these initiatives will allow us to seize opportunities, better serve our customers and achieve our vision of being an essential link in the economic and cultural vibrancy of the Bluegrass. Sincerely,
Nancy Wiser, Chair Lexington-Fayette Urban County Airport Board
Kelley Sloane Elizabeth Woodward
STRATEGIC PLANNING PROCESS The airport strategic planning process began with preplanning activities, including the engagement of an industry consultant who led the Airport Board and staff through a SWOT analysis and brainstorming sessions. The process then proceeded to assessment and development of (1) the organization’s historical context, mission, vision, and core values; (2) the internal and external environment in which the organization operates; (3) the organization’s strategies for creating competitive advantage; (4) specific initiatives and action plans that must be implemented for the organization’s vision to be successful; and (5) an evaluation plan to report progress.
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Adapted from: Airport Cooperative Research Program Report 20, Strategic Planning in the Airport Industry, January 2010
Commercial Aviation Facilities >
AIRPORT FACILITIES MAP
< West General Aviation Campus
Maintenance & Public Safety Facilities > East General Aviation Campus > Consolidated Rental Car Facility > Potential Development >
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Our Vision
Blue Grass Airport will be a responsive and essential link in the economic and cultural vibrancy of the Bluegrass.
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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Our Core Values Integrity Service Respect Flexibility Innovation Responsiveness Inclusiveness
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Strategies Attract and Retain Air Service to Match the Needs of the Community Blue Grass Airport will position itself to be an attractive, cost-effective venue for airline partners and air service opportunities. The airport will seek ways to obtain new service to markets that the local population will support and will work with its airlines to keep existing service successful.
Initiatives:
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Update market analysis to identify sustainable target destinations for potential air service development
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Monitor markets currently served (airline, aircraft size, frequency, load factors, average fares) in an effort to retain existing service and respond as necessary
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Educate external stakeholders on the challenges of attracting air service and the potential influence of community support
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Keep airport rents and fees at or below the level outlined in the airport’s Master Plan
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Conduct ongoing passenger and corporate surveys specific to air service
Implement the Airport’s Master Plan To guide the airport’s infrastructure development over a phased period of time, we will continue to build upon the progress of our Master Plan created in 2013. Based on forecasted activity, airline industry trends, and historic growth and economic conditions, implementation of this Master Plan is key to meeting central Kentucky’s future aviation needs. The Master Plan identifies multiple initiatives to enhance operational safety and improve aircraft movements.
Initiatives: •
Construct a new maintenance complex
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Design and construct a public safety facility
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Design and construct Taxiway “A” realignment
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Design and construct the commercial service runway rehabilitation with safety area improvements
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Relocate and develop private and corporate aviation facilities
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StrategIes, continued Strengthen Financial Sustainability Blue Grass Airport is committed to fiscal responsibility, cost-efficient development and excellence in debt management. Notwithstanding the uncertain federal funding and policy environment, and the dynamics of the domestic airline industry, we will maintain our financial wellbeing by prudently managing our finances and resources to create value for our region.
Initiatives:
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Maximize FAA discretionary grant opportunities
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Build unrestricted reserves by at least $500,000 annually with the goal of achieving 365 days of unrestricted cash on hand
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Re-invest a minimum of 50 percent of the annual surplus (in excess of the $500,000 designated for reserves) into locally-funded capital improvement projects that provide long-term value
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Analyze projected cash flows on a monthly basis to ensure the airport’s investments are maximized and invested for the appropriate duration
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Continue to monitor the variable rate debt to ensure the airport is not paying more in interest expense than earning on its internal investments
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Budget expenses to increase no more than four percent over the previous year’s budgeted operating expenses
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Achieve an eight percent return on investment for any revenue producing capital outlays
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Optimize employee benefits and align incentives to achieve strategic goals
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Manage the airport’s resources consistent with the Airport Board’s values and policies
Diversify Airport Revenue Sources In an ever-changing aviation industry, Blue Grass Airport aims to grow nonaeronautical revenue to ensure financial stability. We will seek new revenue sources that provide greater revenue diversification and allow us to operate more independently in the future.
Initiatives: •
Build a new rental car maintenance facility, then raze and prepare current site for potential development
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Determine non-aeronautical industries for commercial development and create an appropriate site plan and marketing strategy
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Acquire property outlined in the Master Plan
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Benchmark parking rates against similar size airports and communities and implement a rate structure to optimize revenue
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Evaluate potential growth opportunities for the terminal advertising program and act accordingly
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Strategies, continued Provide Best-In-Class Guest Service Serving our customers—our guests and business partners—is our first and foremost priority. By providing safe, efficient and comfortable facilities and staff who embrace and exhibit our core values, we will continue to exceed our commitment to providing a quality travel experience.
Initiatives:
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Conduct a baseline passenger survey to determine current guest service satisfaction and develop metrics to evaluate satisfaction in the future
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Collaborate with business partners to satisfy our guests and expand the “secret shopper” program to include parking, retail shops, restaurants, restroom cleanliness and terminal facilities
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Improve the customer experience by leveraging technology such as social media, mobile boarding, use of SmartPhones/iPads, and automated parking equipment and then increase the use of those technologies
Organizational Excellence As an employer, we strive to cultivate a culture of excellence that is built upon our core values. These values provide the framework for staff to make educated decisions and successful plans for the future. We will engage our employees and foster an environment that encourages growth, participation and responsiveness.
Initiatives: •
Evaluate the airport board’s governance duties and processes to maximize effectiveness, provide proper oversight and monitor progress on the strategic goals
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Achieve excellence in airport safety, security and operations by educating staff in core competencies and emerging trends
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Develop a crisis communications plan and media policies
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Create programs and training initiatives that encourage staff development to prepare them for succession opportunities
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BLUE GRASS AIRPORT 4000 Terminal Drive, Suite 206 Lexington, KY 40510-9607 859.425.3100 bluegrassairport.com
This Strategic Business Plan was adopted by the Lexington-Fayette Urban County Airport Board in August 2014.
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