2011 airport update - colliersnh.com · 3 308,000 sq. ft. passenger terminal with fourteen gates...
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2011 AIRPORT UPDATE March 25, 2011
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Airports are important economic engines for the regions they serve; creating jobs,
facilitating commerce and providing access to the global marketplace
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308,000 sq. ft. passenger terminal with fourteen gates
11,500 short-term, long-term and garage parking spaces
Runway 17/35 – 9,250 feet; Runway 06/24 – 7,650 feet
An average of 130 daily passenger and cargo flight operations
Approximately 2.9 million passengers and 175 million pounds of air cargo annually
1,900 people are employed by airport companies
The airport has invested more than $500 million improving airport facilities, runways, taxiways, navigational aids, roadways and parking
The airport now contributes approximately $1.24 billion each year to the local economy
AIRPORT HIGHLIGHTS
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CURRENT MHT CAPACITY
Las Vegas
Phoenix
Tampa
Orlando
Atlanta
Charlotte
Chicago Midway
O’Hare
Detroit
Cleveland
Toronto
Washington National
Dulles
Baltimore
Philadelphia
New York LaGuardia Newark
DL ATL 1
WN BWI 8
CO CLE 3
US CLT 1
US DCA 3
DL DTW 5
CO EWR 4
WN FLL 0
UA IAD 2
WN LAS 1
US LGA 4
WN MCO 3
WN MDW 3
UA ORD 2
US PHL 7
WN PHL 4
WN PHX 1
WN TPA 3
AC YYZ 2
TOTAL 57
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ECONOMIC IMPACT STUDY
$152.9 million in
annual payroll
(Hillsborough, Merrimack and
Rockingham Counties only)
$1.24 billion in total
economic impact
(Hillsborough, Merrimack and
Rockingham Counties only)
$752.8 million in out-
of-state passenger
expenditures*
(lodging, food/beverage, retail
purchases and entertainment)
3,820 airport-
related jobs
(Hillsborough, Merrimack and
Rockingham Counties only)
* Employment and payroll related to
out-of-state passenger expenditures
were not calculated as part of the
study
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LOCATION - Centrally located in the heart of New England. Serves air travelers from ME, VT, NH and MA
CONVENIENCE - Great highway access, no congestion and plenty of inexpensive on-airport parking
POPULATION - Over five million people live within a one hour’s drive of the airport
SUPPORT - Strong support from local, state and federal officials, neighbors, the business community and the FAA
RELIABILITY - Exceptional winter operations track record
Boston
MANCHESTER’S STRENGTHS
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AIRLINE MARKET SHARE
United
8%
US Airways
17%
Delta
9%
Southwest
59%
Continental
7%
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A CHANGING INDUSTRY
Airlines have cut approximately 20% of system-wide capacity and “retired” more than 800 active commercial passenger aircraft since 2008
Low cost carriers (LCC) are chasing away legacy airlines from many markets
Competition in New England has increased dramatically with JetBlue, Southwest, AirTran, Sun Country and Virgin America all adding service at Logan
Perception that Big Dig has made getting to Logan “much easier”
Frequent bus service from southern New Hampshire to Logan
Airline long-range planning has been hampered by jet fuel price instability and a prolonged global recession
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MHT SEAT CAPACITY
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11
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MHT AVERAGE AIRFARE
0
20
40
60
80
100
120
140
160
180
2000 Q1 2001 Q1 2002 Q1 2003 Q1 2004 Q1 2005 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1
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MHT LOAD FACTOR
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
Jan-9
0
Jan-9
1
Jan-9
2
Jan-9
3
Jan-9
4
Jan-9
5
Jan-9
6
Jan-9
7
Jan-9
8
Jan-9
9
Jan-0
0
Jan-0
1
Jan-0
2
Jan-0
3
Jan-0
4
Jan-0
5
Jan-0
6
Jan-0
7
Jan-0
8
Jan-0
9
Jan-1
0
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IMPACT OF DECREASED AIR SERVICE
Seat Capacity
=
Passenger Activity
=
Airline Revenue
Parking and Concession Revenue
PFC & CFC Revenue
=
Operating Budget
2008 - $58M 2010 - $48M
2009 - $52M 2011 - $45-$46M
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Transitioned airport-funded bus service to private ground transportation company
Staffing vacancies and consolidations
Deferred some non-essential capital projects
Restricted non-essential employee and contractor overtime
Deferred non-essential vehicle, equipment and IT purchases
Reduced consultant usage
Renegotiated existing contracts, insurance policies and service agreements - law enforcement and ARFF - parking and parking shuttle - airport security - terminal cleaning - snow removal - interior landscaping - auto/equipment insurance - airport operators insurance - cell phones and pagers
Reduced sponsorships and advertising
Reduced energy consumption - converted to energy efficient lighting in terminal and parking garage - installed motion sensors - turned off lighting on garage roof and in vacant surface parking lots - installed window film on exterior windows to reduce solar gain
Modified operation of The Granite Club, an airport-operated business center
Eliminated free parking validation for state and federal employees traveling on business
Reduced staff development and employee travel
Relocated Employee Parking Lot and eliminated employee parking shuttle bus
2009 – 2011
EXPENSE BUDGET REDUCTIONS
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2010 MASTER PLAN UPDATE
Passenger terminal efficiencies and expansion
Improved international capabilities
Airport roadway system improvements
Environmental initiatives
Additional parking garage and/or surface parking
Relocation and expansion of rental car operations
Air cargo facility expansion
Local zoning regulations
Intermodal facilities
New revenue opportunities
Long-range land use planning
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RECENT PROJECTS &
ONGOING INITIATIVES
Residential Sound Insulation Program (1,300 homes; $54 M)
Airport Environmental Action Committee
Airport District Energy Audit
Increase public ground transportation between the airport,
northern MA and popular regional destinations
Commuter passenger rail between New Hampshire and
Massachusetts
NHDOT Airport Access Road (State of New Hampshire)
Pettingill Road industrial Park (Town of Londonderry)
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Residential Sound Insulation Program
Airport Environmental Action Committee
Increase public ground transportation between the airport,
Boston and other popular regional destinations
NHDOT Airport Access Road
Londonderry Industrial Park access
Improved Federal Inspection Services (FIS) facilities and
international air service capabilities
Commuter passenger rail between New Hampshire and
Massachusetts
NHDOT AIRPORT ACCESS ROAD/
PETTINGILL ROAD PROJECTS
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GOOD NEWS!
Adding one daily MD-88 (142-seat aircraft) between MHT –
ATL in April, 2011
Adding four daily regional jets (50/70-seat aircraft) between
MHT – DTW by April, 2011
Additional 1,600 seats per week; doubling capacity of MHT
operation
