Record year for LC airport

Published 8:28 am Monday, January 12, 2015

Lake Charles Regional Airport experienced an increase in passengers, tenants and revenue in 2014 — a record year for the airport in anticipation of economic growth in Southwest Louisiana.

“By virtually every measure, the airport is growing,” Heath Allen, executive director of the airport, told the Airport Authority at its monthly meeting.

The increases in revenue are the result of rent escalations, increases in assessed values in Calcasieu parish which positively affects the airport’s ad valorem, and increases in non-aeronautical revenue.

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“This has enabled the airport to replenish and build our reserve balance while enhancing our operations,” Allen said in his annual report on the activities and progress of the airport. “This is extremely important as we work to satisfy the needs of our region in terms of air transportation.”

Southwest Louisiana leads the nation in announced industrial development projects. Estimates total nearly $86 billion in projects for the region.

“It remains to be seen how this development will affect air transportation,” Allen said.

He anticipates increased traffic both on the commercial and corporate flights. However, Allen said industrial development does not generate as much business travel as a headquarters facility. But there will be an increase in travel to and from the project sites by managers, executives, salespeople and others — certainly during the construction phases, he said.

In terms of potential for revenue generation, the airport’s land is its greatest asset, Allen said.

The airport has more acres than New Orleans Armstrong International and is among the larger airports in the state in terms of land mass.

“While aviation is our core business and is always front and center, by focusing also on developing our land for non-aeronautical revenue, we are able to support our core business and offer greater value to our aeronautical stakeholders,” he said. “Airports can no longer count on airline fees, hangar rental or fuel flowage fees to balance the budget.”

Allen projects that 69 percent of the Airport’s revenue will come from non-aeronautical sources in 2015.

In 2014, airport officials executed leases for a pipe storage facility, a gas station, pipeline right-of-way and cell phone tower space. Looking ahead, Allen said the airport will focus on rebranding its overall image with a new logo.

“We expect to unveil a new logo soon that will set the stage for what we strive to be,” he said. “It will be modern and forward looking, but yet state exactly who we are — LCH. The logo is the beginning of an effort to bring us into the digital age. Marketing has changed, and we need to change with it.”

Due to financial constraints, Allen said marketing has “often taken a back seat to more acute needs.”

“There is no doubt that this is a disadvantage to the Airport and while money is always a challenge, we are at a point where we can and should put forth a better marketing effort,” he said. “We want to speak not only to passengers, but all stakeholders. Even if a resident of this Region never steps foot on an airplane, they are a stakeholder, and we want them to realize the impact that this airport has on SWLA — over 1,600 jobs, $52 million payroll, $224 million in economic output. This effort will take time to develop, but it will be well worth it.”””

(American Press Archives)