Despite industry challenges for the Lake Charles Regional Airport, 2012 was a “successful year” but “marked a significant
shift in the airport’s finances,” said an airport official.
“We have been very focused on the
expense side of our budget — operating extremely lean while taking
advantage of every opportunity
to save a few dollars,” Executive Director Heath Allen told the
airport authority board at its regular monthly meeting last
week.
In terms of personnel, the airport is at the minimum with which it can operate the facility effectively and efficiently, he
said.
“We continue to have people wearing
several hats in order to accomplish our mission,” Allen said in his
report. “While I don’t
see that ending, given the efficiencies gained, we will continue
to explore the use of contract and part-time labor to help
supplement our full-time employees when appropriate.”
The airport has also realized new revenue.
In addition to new contracts, the
airport is now seeing benefits from the state maintenance reimbursement
program. Through
Louisiana Airport Managers and Associates, the state airports have
worked with the state aviation department to establish
a program that reimburses $100,000 to commercial airports annually
for maintenance and other expenses. The airport also received
assistance from the Calcasieu Parish Police Jury that will help it
acquire much-needed capital equipment — a lawn mower, 15-foot
rotary mower, a small off-road utility vehicle and an operations
vehicle — and provide marketing funds for air service promotion.
Allen said 2012 was not without challenges in commercial air service. Substandard service from Colgan Airlines, which flew
on behalf of United Airlines, hampered the airport beginning in 2011 and continued through the first quarter of 2012.
“By substandard, I mean month after month where delays exceeded 50 percent,” Allen said in his report to the board. “This
caused harm that we are still recovering from today. Above all else, our travelers require flights that get them to their
destination on time. Many of those travelers abandoned the Colgan Service, opting for other alternatives.”
He said Colgan is no longer in the market and the airport has seen a “vast improvement in on-time performance.”
The airport ended the year with traffic down more than 8 percent. By comparison, capacity was down by 15 percent.
“This, combined with the Colgan issues
early in the year, account for this drop,” Allen told the board. “I’m
always looking
for the silver lining and I can say that the numbers could have
been worse. Interestingly enough, rental car revenue was up
3 percent.”
Allen hopes to see a rebound in 2013.
“We’ve seen mergers, bankruptcies and
complete airline closures. Fewer airlines flying fewer airplanes equate
to the bar being
raised for small and mid-size markets,” he said. “With 50-seat and
smaller jets being retired at an ever-increasing pace and
no new aircraft to take their place, the future is certainly dicey
for many markets.”
The airport has seen capacity constrained in the market, however, yields remain strong and the carriers are making money,
he said.
“This is, of course, the bottom line,” he said in his report. “Add to this the fact that Southwest Louisiana appears to be
on the verge of a significant economic boom and that gives us reason to be optimistic. An airport’s activity is indicative
of a region’s economic activity and vice versa. That fact bodes well for LCH and Southwest Louisiana.”
The airport will devise an Air Service
Master Plan with the help of the Boyd Group International utilizing
police jury and
airport funds. From that plan, the airport will implement an air
service recruitment/retainment and strategic marketing strategy
aimed at achieving its air service objectives.
“There is no silver bullet solution when it comes to air service,” he said. “Incentives and guarantees to airlines can work
for a short period of time but ultimately it is the market that dictates air service levels.”
Last year continued what has been an
unprecedented period of airport construction. Through the efforts of
LAMA and the state
aviation department, the airport was successful in increasing the
State Aviation Trust Fund from about $9 million three years
ago to $30 million in 2012.
The airport now has eight to 10 projects going at any given time. Most of those are 100 percent state funded.
“We are very fortunate in that regard considering the ever-increasing uncertainty of federal funds,” Allen said to the board.
Even though no general funds are used to fund the FAA and its associated programs, the industry can expect to be targeted
for cuts.
Allen said hopefully the airport organization’s lobbying efforts will be successful nationwide.
In spite of the federal issues in 2012
alone, the airport completed a slurry seal of their secondary runway,
expanded the
airport fire station, took delivery of a new fire truck,
constructed the terminal drive through the canopy, installed gate
check conveyor systems on both loading bridges, replaced the
parking and boulevard lighting systems, added three electronic
gates and completed runway safety area improvements.
The airport also awarded contracts to
rehabilitate phase one of the airfield drainage, complete an airport
master plan, acquire
a mass casualty incident vehicle/trailer, replace airfield signs,
acquire an interactive airport training system and complete
a wildlife management plan.
Allen said 2013 will begin with a flurry of activity with these projects and a major runway rehabilitation.
“Taking the primary runway down for maintenance is always a challenge for airports. Fortunately we have the ability to continue
operations uninterrupted on the secondary runway, though we do lose some capability,” Allen said.
In the coming year, Allen expects to
accomplish the fuel farm relocation, Runway Protection Zone land
acquisition, airfield
pavement rehabilitation, phase one of the perimeter fencing project, phase II of the airfield drainage rehabilitation and the
passenger lounge expansion.
Collectively, these projects represent more than $12 million dollars in improvements to the airport’s facility.
When economic impact multipliers are factored in, these projects represent many more millions than that, Allen said.
Allen said he was “pleased” with the current position that the airport is in but “not satisfied.”
“We all know that challenges certainly
remain and I’m not remotely suggesting that our work is done,” he told
the board. “Looking
ahead to 2013 we will continue all of our efforts relating to
planning, construction, cost savings and revenue development.”