Sanford Regional AirportBusiness Strategy - Community PresentationPresented to:

The Town of Sanford, The Industrial Development Corporation, and Airport StakeholdersOctober 5, 2011

QED/KRAMER aerotek

Gateway to Southern Maine

Sanford Regional Airport

Agenda

• Project Overview

• Airport as an Economic Engine

• Opportunities

• Marketing Plan

• Closing Thoughts2

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OVERVIEW

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1Sanford Regional Airport Annual Ragwing Fly In

Project Goals

• Initiate a business strategy that would– Grow airport activity– Increase revenues to the airport– Create jobs

• Propose a marketing plan that would– Identify long range market opportunities– Set priorities for next 12 months– Develop the airport brand

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Approach

• Site visits to airports in the region• Identify opportunities

– Consultants review and screen– Airport/IDC review

• Prepare next steps on opportunities• Outline marketing strategy• Present to community• Community begins implementation

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Diagnostics Opportunities Priorities Next Steps

AIRPORT AS AN ECONOMIC ENGINE

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2 Sanford Regional Airport Aerial View

The Airport Contributes to the Sanford Economy

• Jobs

• Payroll

• Visitor Expenditures

• Tax Receipts

• Money Circulating in Sanford and Southern Maine (multiplier effects)

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Photo: Russ Bacon via Guitar Suspension Solutions

The Airport is an On-Going Enterprise

Airport Assets• Land Area - 1,115 acres• Infrastructure

– 2 runways/parallel taxiway– ILS & GPS approaches– 2 Fuel Farms – Jet A, 100LL, and MOGAS

• Development– FBO Terminal– Cockpit Cafe– 57 aircraft hangars– Southwest ramp development site

• Southern Maine Aviation FBO Services– Fuel– Aircraft and helicopter maintenance– Flight training– Sightseeing Flights– Concierge

Recent Investments at Airport• Airfield

– $2.3 million parallel taxiway– $5.2 million runway renovation– GPS runway approaches– Ramp expansion– New 64,000 sq. ft southwest ramp– Water quality units to protect

groundwater• Landside

– FBO terminal renovation– 25 hangars in last 5 years– Commercial hangar/office complex– New above ground fuel farm

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There are Many Important Stakeholders

• Town of Sanford

• Industrial Development Corporation of Sanford

• Sanford Regional Economic Growth Council

• Sanford-Springvale Chamber of Commerce

• Southern Maine Aviation

• Cockpit Cafe

• Based Aircraft Owners

• Area Industries & Resort Businesses

• York County Communities

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Stakeholders are individuals or organizations who are interested or engaged in the airport and can influence or be influenced by the outcomes of an airport initiative.

Here’s a Snapshot of the Airport

• Based aircraft and hangar development are growing nicely at the airport

• Declines in fuel sales impacted by volatile fuel prices, recession and closure of Sanford’s primary runway May to November in 2010

• Jet fuel sales in 2005 included trips by Air Force One• Operating revenues are up 5% with annual expenses down 9%

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2005 2010 2011 Change Source

Based Aircraft (estimates for 2005) 80 88 10% Airport

Hangars (estimates for 2005) 40 60 50% Airport

Annual Gallons of Avgas Fuel Sold 81,000 50,000 -38% 2006-2010 Airport data

Annual Gallons of Jet-A Fuel Sold 125,000 55,000 -56% 2006-2010 Airport data

Annual Direct Operating Revenues $76,300 $ 80,300 5% 2005-2010 Airport data

Property Tax on Hangars $25,200 $ 48,000 90% Airport

Excise Tax on Aircraft NA $ 6,500 Airport

Total Direct/Indirect Revenues from Airport $101,500 $ 134,800 33% Airport

Annual Operating Expense $ 225,542 $ 206,400 -8% Airport

President Bush Arrives at Sanford Regional Airport

Sanford Has an Excellent Runway Length

Comparables• Sanford

• Beverly

• Laconia

• Nashua

Competitors• Auburn-Lewiston

• Brunswick

• Portland International Jetport

• Portsmouth International at Pease

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11,321

7,200

8,000

5,001

6,389

5,501

5,890

5,001

Portsmouth

Portland

Brunswick

Auburn-Lewiston

Sanford

Nashua

Laconia

Beverly

Primary Runway Length (feet)

Sanford, Laconia, Auburn-Lewiston & Portsmouth Lead in Growth of Based Aircraft

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Source: FAA Terminal Area Forecasts

With sales tax on aircraft and aircraft parts eliminated, there is potential formigration of based aircraft back to Maine

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Sanford Beverly Laconia Nashua Auburn-Lewiston Portland Portsmouth

2000 2010

Based Aircraft 2000-2010

Price of Fuel Hasn’t Helped the Aviation Industry

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Reta

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U.S. Avgas U.S. Kerosene-Type Jet Fuel

Source: U.S. Energy Information Administration

Findings from Airport Visits

• Sanford’s main competitors are Portsmouth and now Brunswick, both of whom have larger staffs and more extensive marketing resources

• Portland is focused on commercial air service and to a lesser extent, on corporate aviation

• Auburn-Lewiston and Nashua are examples of well developed industrial activity at airports (Tenants aren’t always airport users)

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Takeaways

• Sanford needs to be a nimble competitor with Portsmouth and Brunswick

• Southern Maine Aviation has contributed extensively to the growth of recreational segment

• Attraction of jet aircraft activity would be a definite positive for the airport

• An effective marketing program for Sanford will require focus, preparation, and determination

• Marketing resources can be extended with a clear plan and message, use of other agencies, and community volunteers

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OPPORTUNITIES

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3Pratt & Whitney 2000 High Compressor Maintenance

Screening Criteria

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Commercial Air Service to Sanford is Unlikely

1860 and 90 mile radius from Sanford

Commercial AirportsMileage and Travel Time

From Sanford, MEPrimary Runway

Length (ft)Portland, ME 35 miles 50 min 7,200 Manchester, NH 76 miles 1 hrs 38 min 9,250 Boston, MA 88 miles 1 hrs 52 min 10,083

Opportunities Selected for Additional Evaluation

1. Aviation Education

2. Aircraft Refurbishment

3. Fire Fighting Training Center

4. Resort Traffic

5. Center for Aviation Innovation and Transient Hangar (combined)

6. Corporate Aviation Transition Base

7. Engine Test Facility

8. Logging Helicopter Base

9. Maintenance, Repair, & Overhaul (MRO)

10. Sky Diving

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Opportunity Assessment

Criteria Resort TrafficPW Training

Center

Center for InnovationTransientHangar

Transition Base

Aircraft Refurbishment

Fire Fighting Training Center

Potential for Improving Airport Revenue

Local Job Impact

Airport Visibility

Airport Activity

Airport Assumption of Risk Low Low Medium/High Low Medium High

City/Airport Capital Required Low Low Medium/High Medium Medium/High High

Immediate or Long-TermProspect Immediate Immediate Long-Term Long-Term Long-Term Long-Term

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Positive Neutral

Example of Recommendations: Immediate Prospect: Tourism

Opportunity• Increase recreational segment of

the market

• Attract, hangar, and service jet aircraft

• Recruit aircraft owners that base airplanes in other states because of repealed taxes.

Next Steps• Visitor survey

– Southern Maine Aviation– Hotels, resorts, golf courses,

summer camps, marinas• Flight plan analysis• Design marketing campaign

– Brochures– Advertising– Networking– Earned media– Airport event for resorts

• Promotional packages• Aircraft club fly-ins• NBAA Schedulers & Dispatchers

Conference, January 2012, San Diego

21Southern Maine Coast

MARKETING PLAN

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Brand Definition• Vision• Mission• Values

Brand Development• Foundation of Airport

Business• Value Propositions• Positioning

Brand Delivery• Identity• Messaging Architecture• Initiatives• Action Plans

Brand Nurturing• Evaluation• Progress• Fine Tuning

Brainstorming Vision, Mission, & Values

• Our most important customers are...

• We stand out from the competition because...

• Our airport is known for......• We are great at....• We want our customers to

be....• We strive to...• Our community would

like.....

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We are:• A community airport• Serve Sanford & York County• Gateway to Southern Maine

beaches• Safe, efficient, cost –

competitive facility• Outstanding restaurant• Center for composites,

engine technology, innovative hangar structures

• Pilots appreciate long runway and taxiway

• Environmentally friendly airport

• We are growing• .....• .....

Examples of Brand Definition

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Vision

Mission

Values

•Sanford Regional Airport is the gateway of choice for industry, entrepreneurs, and travelers to Southern Maine’s coastal resources and centers of business.

•Together, we will serve our community and customers by providing excellent service, access to the rest of the world, a safe and environmentally friendly airport, and new solutions for the aviation industry.

•Community friendly•Stewardship•Excellence•Contributor to the regional economy

Airport Operating Model

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Leadership

Operating Excellence

Customer Service

Brand Development• Foundation of Airport

Business• Value Propositions• Positioning

What do your Customers Want?

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Recreational Flyers•Safety•Friendly Environment•Good Service•Competitive Fuel Prices•Cockpit Café•Fly-ins

Visitors•Safety and Efficiency•Access to the Coast via Rental Cars or Shuttle•Clean and Inviting Terminal•Land packages

Corporate Travelers•Safety and Efficiency•Reliable Access.•Upscale Terminal and Lounge•Concierge Services•Aircraft Charters •Rental Cars

Transient Pilots•Safety and Efficiency•Reliable Access.•Aircraft Services•Fuel•Deicing•Overnight Hangar•Light Maintenance & Repair•Flight Planning•Cabin Cleaning•Catering•Pilot Terminal and Lounge•Rental Car or Courtesy Car

Industrial Commercial Tenants•Improved Sites•Utility Hookups•Highway Access•Fair Market Value•Tenant Synergy•Airport Reinvesting•Transparent Leasing Program, Process, Design Standards

Sanford Regional Airport Value Propositions

Strategic Initiatives

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Excellence

•Empower airport employees and service providers to deliver the Sanford quality product

Customers

•Expand the customer base while preserving the hometown atmosphere

Gateway

•Became a leading gateway to Southern Maine resorts, commerce and industry

Value and Innovation

•Deliver value and innovation through development of airport assets

Sustainability

• Improve and ensure the long-term sustainability of the airport

Airport Identity - What’s in a Name?

• Portland International Jetport

• Brunswick Executive Airport

• Portsmouth International at Pease

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What Name is Right for Sanford?

– Sanford Regional Airport(not to be confused with Sanford-Orlando International Airport)

– Coastal Maine Regional Airport at Sanford

– Southern Maine Coast Airport

– Southern Maine Regional Airport

– Sanford-Kennebunk Airport

– Sanford-York County Airport

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Brand Delivery• Identity• Messaging Architecture• Initiatives• Action Plans

You want your current and future customer base to recognize and remember the airport as their first choice for air access

Messaging Architecture

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Brand development involves custom messages to influence the choices of your target audience

“What’s in it for the customer” is much more important than a message that describes “what we do”

Basic Marketing Toolkit

• Airport Name, Logo, and Tagline

• Standalone Website

• Brochure

• Airport Signage

• Press Kit (can also be on website)– Contact Information

– Factsheet about the Airport

– Image Library

– Airport Newsletter

– News Releases

– Staff Biographies

– Airport Tenants and Businesses

– Members of the Airport Advisory Committee

– Airport Statistics

– Business Cards and Letterhead

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Sanford Regional Airport Open House

Initiatives for 2011 and Beyond

Brand Development• Name, Logo, & Tagline

• Internal Communications– Elevator Pitch (30 second

speech)

– Stakeholder Agreement

– Shared Priorities

• Positive Visitor Experience

• External Communications – Standalone Website

– Brochures

– Press Kit

Pursue Opportunities• Aviation Education

• Resort Traffic

• Aircraft Refurbishment

• ARFF Training Center

• Transition Base

• Center for Aviation Innovation/Transient Hangar

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Prioritize Opportunities

Detailed Action Plan Begin the Work

Steps to Assemble Action Plan

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1•Additional market research to target opportunities•Prioritize opportunities

2•Select objectives for next 12 months

3• Identify what sequence of actions are needed to accomplish each objective

4•Estimate the resources required for each action (time, people, & money)

5•Prepare a list of specific tasks to accomplish each action including the

person or persons responsible, dates of completion and budget

6• Implement, monitor progress, adjust to improve outcome

Brand Nurturing

• Evaluation

– Customer/Tenant Surveys

– Community Awareness

– Regional Market Share Changes

• Tracking Progress

• Action Plans are ‘Works-in-Progress’. Expect to fine tune.

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Brand Nurturing• Evaluation• Progress• Fine Tuning

Based Aircraft

Hangar Rentals Fuel Sales Operating

RevenuesCustomer

SatisfactionBrand

Recognition

CLOSING THOUGHTS

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Every Opportunity Will Need Partners

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Public/Private Partnerships

•Area Resorts•Existing/New Industries•Developers

Grants

•CDBG EDP•MTI Seed Grants•MTI Development Awards•MTI Cluster Initiative Program

Incentives

•Pine Tree Development Zone•Tax Incremental Financing•Employment TIF•Tax Credits & Exemptions•Direct Loans•Equity Financing•Credit Enhancements•Commercial Bonds

Cash Donations

•Individuals•Businesses•FBO•Fundraising Events

In-Kind

•Experts in other local government departments•Experts on Airport Advisory Board•Ad agencies•Newspapers•Local Radio & TV•Consultants•Maine Technical Assistance•MITC•Maine PTAC•Maine & Company•Business Answers•Maine MEP•Maine SBDC

Volunteer Support

•Chamber of Commerce•SREGC•Maine DOT•FBO

Closing Thoughts

– Build a vision and goals; set realistic objectives– Obtain airport, FBO, City, IDC, Growth Council, Chamber of

Commerce buy-in/support – Select one person to be responsible and focused on the

tasks– Keep the tasks meaningful and interesting to motivate

your volunteers– Stay flexible as opportunities develop– Keep track of progress, celebrate success, fine tune the

plan– Communicate regularly with your stakeholders– Expect that business development and marketing is a

multi-year effort

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THANKS

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QED/KRAMER aerotek

For additional information contact:Ron Price qedron@aol.comLois Kramer lois@krameraerotek.com