JITI Airport Seminar 2014 Presentation 6.12.14 HMT Airport Seminar 2014... ·...

BWI Thurgood Marshall AirportJITI Airport Seminar 2014

BWI Thurgood Marshall Airport Layout

Maryland Aviation AdministrationOrganizational Chart

MARYLAND AVIATION ADMINISTRATIONCHIEF FINANCIAL OFFICER

OFFICE OF COMMERCIAL MANAGEMENT

ABM Database AdministratorRachel A. Goodman

Administrative Assistant, ExecutivePatricia R. VanDaniker

Asst. Mgr, Airline AffairsCathy L. Heline

Contracts TechnicianVacant

(ADCI-Leigh Fisher Contract)

Manager, Airline AffairsPatricia C. Hollar, C.M.

Contracting OfficerJenelle C. Kiernan

(ADCI-Leigh Fisher Contract)

Contracting OfficerNorman E. Hunt

Manager, Commercial Business ServicesMorris E. Williams III

Program AdministratorJeanette M. Brewer

Manager, Concessions ActivitiesAndrea J. Bickley, C.M.

Manager, Commercial DevelopmentPriya Prasad

Director, Office of Commercial ManagementHelen M.Tremont, C.M.

Chief Financial OfficerJames Walsh, A.A.E

Executive Director/Chief Executive OfficerPaul Wiedefeld, A.A.E

BWI - Economic Engine

Airport Generated Jobs 21,155

Visitor Generated Jobs 72,636

Total Jobs 93,791

Total Business Revenue $5.6B

Total Passenger Trends

International Passenger Growth

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

12 Months Ending Mar 13 12 Months Ending Mar 14

Remaining Competitive

Cost per Enplaned Passenger

$153$181

$226

Average Passenger Airfare

Fares do not include any ancillary charges such as checked baggage or change fees. BWI’s largest carrier, Southwest does not charge these fees.

Maryland Department of TransportationTransportation Trust Fund

Where the Money Comes From: Where the Money Goes:

Motor Fuel Taxes 22.0% MDOT Capital Expenditures 51.0%

Federal Aid 19.0% MDOT Operating Expenditures 38.0%

Vehicle Titling Taxes 16.0% Debt Service 6.0%

Registrations and MVA Fees 14.0% Local Govts and General Fund 5.0%

Bonds 12.0% 100.0%

Operating Revenue 9.0%

Corporate Income Taxes 3.0%

Sales & Use Tax 2.0%

Other 3.0%

100.0%

Transportation Trust FundWhere the Money Comes From

Motor Fuel Taxes, 22.0%

Federal Aid, 19.0%

Vehicle Titling Taxes, 16.0%

Registrations and MVA Fees, 14.0%

Bonds, 12.0%

Operating Revenue, 9.0%

Corporate Income Taxes, 3.0%

Sales & Use Tax, 2.0%

Other, 3.0%

Transportation Trust FundWhere the Money Goes

MDOT Capital Expenditures, 51.0%

MDOT Operating Expenditures, 38.0%

Debt Service, 6.0%

Local Govts and General Fund, 5.0%

Capital Program Funding Sources

84.2 40%

25.0 12% 45.1

21%

50.9 , 24%

1.0 0%

1.9 1%

3.2 2%

FY 2014 *

State TTFFederal AIPPFC PaygoPFC BondRegionalTSA OTACFC

* Millions of Dollars and Whole

Free Time in Airport

Connecting passengers at BWI have grown from 23% to 33% of total domestic enplanements

7,805(77%)

7,620(77%)

7,876(75%)

8,001(74%)

7,827(75%)

7,852(75%)

7,840(71%)

7,758(69%)

7,577(67%)

7,445(67%)

2,391(23%)

2,333(23%)

2,679(25%)

2,773(26%) 2,652

(25%)2,721(26%)

3,192(29%)

3,456(31%)

3,669(33%)

3,671(33%)

0

2,000

4,000

6,000

8,000

10,000

12,000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Annual Passengers(Thousands) Connecting

Origin & Destination

Terminal Expansion Plan

A B

C

E D

B/C Connector

Old Concourse C

New Concourse C

New D/E Connector

New D/E Security Checkpoint

New Art Gallery

Outdoor Lounge/Observation Area

Airport Revenue Per Passenger(CY 2013)

Enplaned Passengers 11,291,788

RevenueRevenue Per Passenger

Flight Activities $ 60,440,913 $5.35

Rents and User Fees $ 59,045,488 $5.23

Public Parking $ 58,144,948 $5.15

Rental Cars $ 18,064,468 $1.60

Retail, Food and Beverage $ 13,258,064 $1.17

Other Passenger Concessions $ 4,353,638 $0.39

Non‐Passenger Concessions $ 4,442,318 $0.39

Other Revenue $ 14,697,750 $1.30 Total BWI Marshall Revenue $ 232,447,587 $20.59

Notes‐ Includes parking revenue retained by bond trustee for debt service‐ Excludes Martin State Airport revenue‐ Source: MAA Financial Management Information System (FMIS)

Flight Activities, $5.35 , 26%

Rents and User Fees, $5.23 ,

25%

Public Parking, $5.15 , 25%

Rental Cars, $1.60 , 8%

Retail, Food and Beverage, $1.17 , 6%

Other Passenger

Concessions, $0.39 , 2%

Non-Passenger Concessions,

$0.39 , 2%

Other Revenue, $1.30 , 6%

Rental Car Concession Revenue

Alamo, $1,351,299 , 8%

Avis, $3,682,000 ,

20%

Budget, $1,930,341 ,

11%

Dollar, $1,069,571 , 6%

Hertz, $4,413,000 ,

24%

National, $2,411,244 ,

13%

Thrifty, $687,562 , 4%

Enterprise, $2,519,451 ,

14%

Alamo $ 1,351,299 Avis $ 3,682,000 Budget $ 1,930,341 Dollar $ 1,069,571 Hertz $ 4,413,000 National $ 2,411,244 Thrifty $ 687,562 Enterprise $ 2,519,451

$ 18,064,468

‐ Source: MAA Financial Management Information System (FMIS)

2014 Signatory Airlines(Agreement Term July 1, 2014 – June 30, 2019)

• Air Canada• American Airlines• British Airways• Condor Airlines• Delta Airlines• FedEx

• Jet Blue Airways• Southwest Airlines• Spirit Airlines• United Airlines• UPS• US Airways

Airlines Serving BWI

• Air Canada• Air Transport International• Alaska Airlines (9/2/14)• American Airlines• Bahamasair (Charter)• British Airways• Condor Airlines• Delta Airlines• FedEx

• Frontier Airlines (Charter)• Jet Blue Airways• Omni Air International (Charter)• Southwest Airlines• Spirit Airlines• United Airlines• UPS• US Airways

Airline Market Share at BWI Airport

New and Expanded Service

– Southwest

• Oakland (June 8)• Portland, Oregon (June 8)• Dallas Love Field (October)

– International conversions from AirTran to Southwest

• Aruba (July 1)• Cancun (August 10)• Montego Bay (July 1)• Nassau (July 1)

– Alaska

• Seattle (September 2)

– Bahamasair

• Freeport (May 1)

– Spirit

• Minneapolis/St. Paul (May 1)• Chicago O’Hare (May 22)

Lot/Garage Scheduled Frequency1

Express Lot On Demandii

Daily Garage 5 Minutes

Long Term A 5 Minutes

Long Term B 5 Minutes

MARC/Amtrak 10 Minutesiii

BWI Shuttle Schedule

i Schedule 24 hours per day, 7 days per week, 365 days per year.ii Service offered is trunk to terminal. Small ADA Accessible vehicles will pick patrons up upon arrival to the lot at the trunk of their vehicle and drop them off at the terminal.Iii Service frequency is 20 minutes between the hours of 2 a.m. and 4 a.m.

Parking Rates Short Long Economy Valet

Hourly $4.00 $1.00 $3.00 $0.00

Daily $22.00 $8.00 $12.00 $0.00

#Spaces 4,900 10,100 9,700 0

ParkingParking (CY 2013)

Parking 24,700 $54,757,297 $0

AIRLINE LOT DESIGNATION SQ. FT. RATEANNUAL

REVENUE

Brekford Gold Overflow 7,500 $0.46 $3,450.00

Porsche ClubMathison Way Overflow "B" $0.67 $2,268.56

($283.57 per day x 8 days)

Fed Ex West Mathison Way 126,500 $0.46 $58,190.00

MANG ESP "B" 218,194 $0.55 $120,006.70 Utilities 218,194 $0.07 $15,273.58

Morris TransportWest Mathison Way(6 Standard Spaces) 6 $88.00 $6,336.00

Enterprise RAC West Mathison Way 93,865 $0.58 $54,441.70

Utilities (7.25% of 1,293,384 sf) $2,645.29

PPE Casino West Employee 661,660 $0.58 $383,762.80

Utilities (51% of 1,293,384 sf) $21,846.18

Ravens Employee Lot E-176 2,720 $0.59 $1,604.80

TOTAL $669,825.61

BWI Marshall Parking Lot Revenue(Vacant Lots)

BWI Rail Station

Services

• Connections to Baltimore Light Rail via Shuttle Bus

• 3 Tracks• Parking available• Wheelchair accessible• Passengers (2013) 710,513

Preceding Station

AMTRAK Following Station

Washington, D.C. Acela Express Baltimore(toward Boston)

New Carrollton(toward Norfolk, Newport News or Lynchburg)

Northeast Regional

Baltimore(towardBoston, South Station or Springfield)

New Carrollton(toward Washington, DC)

Vermonter Baltimore(toward St. Albans)

MARC

Odenton(toward Union Station)

Penn Line Halethorpe(toward Perryville)

BWI Marshall AIRMALL Sales(CY 2013)

News & Gifts $ 18,524,187

Retail $ 13,565,411

Food & Beverage $ 73,357,248

Services $ 5,058,910

Total $ 110,505,756

Source: AIRMALL monthly sales reports

News & Gifts, $18,524,187 ,

17%

Retail, $13,565,411 ,

12%

Food & Beverage,

$73,357,248 , 66%

Services, $5,058,910 ,

5%

Concession Statistics CY2013 v. Historical

AIRMALL MARYLAND DATA 2013 HMS HOST DATA (2003‐2004)PERCENTAGE INCREASES UNDER

AMM CONTRACT

F&B RETAIL COMBINED F&B RETAIL COMBINED F&B RETAIL COMBINED

MINORITY PERCENTAGES* 46% 27% 39% Host FFY03 minority participation combined total was 8% and 13% for FFY02.MINORITY CONCESSION OWNERS TOTAL 11 4 15

MINORITY CONCESSION LOCATIONS TOTAL 23 12 35

CONCESSION OWNERS TOTAL 20 26 46 Host operated a total of 40 F&B and retail units.CONCESSION LOCATIONS TOTAL 48 47 95

CONCESSION GROSS SALES TOTAL $ 73,277,345 $ 37,113,322 $ 110,390,667 $ 38,342,191 $ 20,834,231 $ 59,176,422 91% 78% 87%

CONCESSION REVENUES TOTAL $ 11,220,034 $ 7,387,937 $ 18,607,971 Data not available

MAA REVENUE TOTALS $ 7,854,024 $ 5,171,556 $ 13,025,580 $ 5,249,378 $ 2,446,523 $ 7,695,901 50% 111% 69%

AIRMALL REVENUE TOTAL $ 3,366,010 $ 2,216,381 $ 5,582,391

REVENUE PER ENPLANED PASSENGER $ 0.70 $ 0.46 $ 1.16 $ 0.51 $ 0.22 $ 0.75 37% 109% 55%

SALES PER ENPLANED PASSENGER $ 6.50 $ 3.29 $ 9.79 $ 3.73 $ 1.88 $ 5.76 74% 75% 70%

** as of 1st Quarter CY2013. Revised 5/2/2014

Concession Statistics CY2013 v. HistoricalAIRMALL MARYLAND

CAPITAL INVESTMENT** Total AMM and subtenant investment is $59.4MAIRMALL MARYLAND (AMM)

INVESTMENT$19.5M initial investment with $1M used to subtenant build‐out assistance since 2004.

SUBTENANT INVESTMENT $37M with approximately an additional $15M anticipated with future development.

JOBSAMM estimates 1,500 jobs are associated with the concessions program. Pre‐2003 (Host operated), the number of estimated employees was 500.

OWNERSHIP: LOCAL (MD/DC/VA) VS NON LOCAL

There are currently 46 local concepts or local operators, which is 48% of the 95 total concessions currently operating. Notable operators are HMS Host (5 stores), Pandora (1 store), Onsite News (5 stores), Dan Food Co. (3 stores), and Fire & Ice (1 store), all headquartered in Maryland.

OTHER: Workplace Development; Employee Enrichment for Subtenants and its employees; Outreach to Disadvantage Business Enterprises.

AMM has a workplace development program in place to provide customer service training and to impact employee growth and development at the airport.

AMM assists with employee enrichment through its partnership with Anne Arundel Community College and Anne Arundel Workforce Development. Classes for employees that enhance work skills are FoodSafe training, ESL for employees where English is a secondary language and GED Exam prep.

AMM will include additional language in new subleases that encourages all subtenants to employ persons who were formerly employed by other subtenants at the Airport, and to make a good faith effort to interview such persons.

AMM has held job fairs at the Airport for displaced workers when concession locations have closed or changed operators.

Current ACDBE program make‐up consists of the following categories of operators: 38% are African American; 32% are Asian; 29% are Women and 1% are Hispanic.

AMM works to generate leads for ACDBE‐qualified operators. AMM regularly solicits interest from ACDBE concession operators on its social media sites as well as attendance at minority conferences.

* Airport Concession Disadvantaged Business Enterprise (ACDBE) as of 2nd Quarter FY2014

Concessions Revenue

News & Gifts, $18,524,187 , 17%

Retail, $13,565,411 , 12%

Food & Beverage, $73,357,248 , 66%

Services, $5,058,910 , 5%

Concessions

MARCH 1, 2011

BWI Obrycki's named Top 10 U.S. airport restaurant

If you keep track of these things - lists, that is, - Baltimore isn't typically lauded for very much. Just for the important stuff, like education and health. But I digress.

Frommer's travel website and guide today named the Top 10 restaurants at U.S. airports and O'Brycki's at BWI-Marshall is on the list. Huzzah! And pass the mallet.

O'Brycki's, famous for its crabs, has two airport locations -in Baltimore and in Cleveland, but the list singles out the one at BWI for its crab cake sliders. The restaurant announced last fall that it would be closing its downtown location after this year's crab season to move to Arundel Mills slots parlor. The owners said they would continue to operate the BWI location. A twofer within a few miles. Kinda like hitting the jackpot. (And while the Pratt Street restaurant closes in winter, the one at BWI is open year round.)

Other airport restaurants making the list include Rick Bayless' Tortas Frontera at O'Hare and Deep Blue Sushi at JFK.

Posted by Michelle Deal-Zimmerman at 2:00 PM | Permalink | Comments (0)

New HotelProposed Site:

Why a Hotel at BWI?A business or leisure traveler does not have to worry about getting a car, cab or shuttle. Passengers will be able to walk to their rooms, never worry about missing a flight due to being stuck in traffic and arrange their business meetings or family reunions.What type of hotel is being envisioned?The MAA is planning to develop a convenient, full-service Airport Hotel that offers direct access to the BWI Marshall terminal building. Currently, there are no hotels located within reasonable walking distance to the BWI Marshall terminal building.How many rooms and what type of amenities will the hotel provide?It is anticipated that the Airport Hotel will provide 200-250 guest rooms, with associated restaurant, meeting facilities, and other amenities.What are MAA’s expectations from proponents?The MAA is seeking proposals from interested and qualified firms to design, develop, construct, finance, and manage a full service Airport Hotel for the benefit of the traveling public and other guests.

Objectives

• To enhance the Airport with a nationally branded or independent, first-class, full service Airport Hotel;

• To have an Airport Hotel with a sense of place reflective of the BWI Marshall’s role as a gateway to the Baltimore-Washington Metropolitan Area;

• To have an Airport Hotel that is a gateway feature for the Airport with an architectural theme complementing and enhancing the architecture of the Airport terminal buildings;

• To have an environmentally responsible Airport Hotel.

New HotelKey Elements of the RFP

2.5 acre site for developing an Airport Hotel facility with surface and garage parking.Pedestrian connection to 6th floor of the Hourly Garage through a new Skybridge (to be built by developer).All utility connections are available close to the site.15 years of experience in designing, developing, constructing, financing and managing/operating hotels is

expected from the developer and/or developer’s team.MAA expects a 50 year lease term.MAA expects the developer to provide sufficient detail of the quality and design of the Airport Hotel including:

Concept Design PlanPedestrian, Parking, Utility and Access Roadway PlanDesign, Construction and Pre-Opening PlanOperation, Management & Maintenance PlanMarketing PlanFinancing PlanFinancial Pro-Forma (5 year model)ACDBE Plan

Economic benefits to the state shall be identified.Technical proposals will be evaluated by a Selection Panel.Proponents will be shortlisted and interviewed (if necessary).Invitation to submit Financial Proposals will be sent to shortlisted firms.Financial proposals will be evaluated however technical proposals will be given greater consideration.Best and Final offers will be accepted if Administration deems necessary.Final Evaluation will be performed and a Recommendation for Award will be submitted.Contract will be awarded contingent upon Contractor successfully completing security/background investigation.Environmental Assessment with Finding of No Significant Impact (FONSI) as approved by the FAA is available for review.

New Hotel

Terminal E Hourly Garage

New Hotel

Thank you!

JITI Airport Seminar 2014 Presentation 6.12.14 HMT Airport Seminar 2014... ·...

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