Small and Large Airport Concession Agreements

March 2013

Shared Ride at airports

Is inherently green, and……….

It’s not easy being green!!

Shared Ride at airports

Is inherently green Is an after thought (taxi’s, mass

transit) Can take up to 6 cars off the road Removes private cars from traffic

flow Reduces emissions Improves air quality

Shared Ride at airports

Is non subsidized mass transit!!! Lower price point……. But goes door to door

Common for all airports

Financial healthBe able to make investments

InsuranceState minimum is not enough

SafetyComprehensive plan

Experience

TechnologyDispatch and rez

Exclusive– Too Small of a market to be financially

healthy• Nashville experience

– Provide an airport office to cut overhead

– Waiting area to build loads/ age the passenger.

– Curb space is minimum– Minimum signage……– But good location (not the back 40)

Small Airports

Nashville case study

4 providers– One primarily military– Two to city areas– One convention hotel that provides the

service • The hotel has a ticket counter as you get to

baggage claim• Other 3 share a booth causing commodity

pricing

Nashville

Nashville O&D 4.7 million Ridership was primarily

hotel/convention traffic Average fare was approximately $17 SS used vans, competitor used

Sprinters No one company had high density

Nashville

Open transportation market Over 90 providers City attempted to pass an ordinance

to limit that number

Nashville

At the same time airport was asked to put out an exclusive RFP

Airport would put out a RFP for door to door residential only – too small of a market

One carrier pulls out, one looks to sell citing losses

Nashville

No RFP ever put out However, the transportation

ordinance passed!

Large Airports

Multiple carriers without flooding the market– LA had 3, seems 2 is optimal– SF going through this process now– Usually many competitors (taxi, black

car, private bus, city bus etc)

Large Airports

Maximum signage– ORD

Adequate curb space (multiple vans) Curb or airport staff (or both) Technology

– Kiosks– Boarding signs

Orlando case study

13th largest airport-35 million passengers

Great transportation market– Largest rental car market

One dominant provider Underserved residential market MCO wants second provider to be

DBE Prior 2 DBE’s went out of business

Orlando

Will not give a second contract to non DBE company

SS starts service using a reservations only system

Rides are matched remotely and communicated to passengers

Service to all areas

Orlando

SuperShuttle carries approximately 15,000 passengers per month

Approximately 3 passengers per trip 50% go to residential areas All prepaid, pre arranged Not paying concession fee to MCO Only need is for curb space for

staging and walk up business

A word on concession fees

The spirit of partnership– Both parties share in success– Structure fee, “the better I do the better

you do”– Fees should vary by market and market

density– How much market protection does the

airport really offer these days?

Summary

Even though shared ride is sometimes overlooked as an important part of airport transportation solutions, as you know, it is green, it eases congestion, it is non-subsidized mass transit and can be a good source of revenue for airports.