The airport industry finds itself in an interesting crossroad as 2016 gets underway.
New technology is revolutionizing how facilities are managed, customer demands for service keep growing and safety needs linger all while industry leaders scramble to find ways to pay for these improvements with a murky federal funding outlook still locked in political battles.
Airport Business recently sent out a survey to readers to see what concerns are on your minds as airport leaders and FBO services. A lot of needs persist, but some leaders show they’re ready to make some changes to take service to the next level.
Improving Facilities
Attracting air services is the No. 1 issue facing airports today according to the survey results. Nearly 30 percent of respondents said it was their top issue, followed by security issues at 11 percent. About 16 percent said their aging facility was a top priority, but 20 percent had concerns with funding renovations.
Airports are making plans to market themselves in 2016, with signage leading the way at 40 percent. About 37 percent plan to use a new website, while one-third plan broadcast promotion and chamber of commerce promotions. Multiple respondents also mentioned plans to up social media campaigns this year.
Although renovations are not the top concern for the industry, nearly three-quarter of respondents said they need to renovate their airports within the next five years. About 22 percent said their terminal has the biggest need, followed by runways at 20 percent. Security upgrades came in at 15 percent.
However, 20 percent listed their major concerns as “other” issues, such as an aging pilot workforce, city support, passenger leakage, attracting tenants and staving off unwanted encroachment. Others listed government interference as a major issue.
55 percent screen badged employees at security checkpoints. The same amount said they plan to screen the employees within the next year.
Overall security isn’t a big concern for most airports in the U.S., with 62 percent saying their perimeter security isn’t a concern. Roughly 58 percent of respondents plant to add more cameras for perimeter security, with 34 percent want to add more fencing. Only 20 percent plan to add additional security manpower.
Technology continues to be a big topic for airports, with 41 percent saying they want to make improvements in airfield area innovation. About 35 percent want to improve IT technology while 28 percent want to make upgrades in digital signage.
Airports are looking to upgrade passenger amenities as well, with concessions, retail and lounges leading the pack. Nearly 45 percent want to improve concessions, while 35 percent want to improve retail and lounges. Parking advancements are also on airport radars as 30 percent want to make improvements.
A Shared Concern in Ground Transportation
Ride sharing is getting a cold reception from airports when it comes to ground transportation. About 73 percent said they don’t work with companies like Uber or Lyft to provide service. Leading concerns about this service include validity of driver background checks, insurance liability, tracking pickups and collections and taxi service concerns.
The Mobile Airport Authority in Mobile, Ala., bucked the trend by recently negotiated a 1-year deal with Uber to allow the ridesharing service to provide rides at the airport.
Roger Wehner, executive director of the authority, said the airport decided to explore an Uber agreement due to reliability issues with some morning cab services.
“For us it seemed like at least a viable option to explore at least another solution to provide to our customers,” he said.
Wehner said he had some concerns with Uber related to safety of passengers and who did background checks of drivers. The city of Mobile has a process in place for Uber driver checks and vehicle inspections, so the airport authority incorporated the same policies into its own agreement.
It also included an agreement to bar Uber drivers who don’t adhere to policies at the airport if they repeatedly cause issues.
“It really shouldn’t matter to Uber at the end of the day,” Wehner said. “We’re both interested in their brand and their brand’s success, so they shouldn’t want bad actors in their brand like we don’t want those same bad actors on our property.”
Wehner said airport officials also turned to peers in the southeast with Uber agreements in order to place certain policies in place. By knowing what the company agreed to at other facilities it allowed them leverage if the company fought them on implementing policies already agreed to in other places.
Uber also agreed to paying $30 more per month than taxi service providers in an effort to make it “more equitable.”
Wehner said the airport is hoping for a complaint-free year related to the service and to make sure reliability and safety are sustained.
“They’re going to want the longest term possible, but we determined that’s not in our best interest,” Wehner said. “Keep them on a short leash.”
FBOs See Clear Challenges
FBO challenges seem pretty clear going into 2016, with 30 percent saying their top concern is attracting new customers. Only 5 percent were concerned about losing customers.
FBOs planning on making major investments in the next 10 years are focused on new hanger construction. About 38 percent are planning new hanger construction, while 27 percent are focusing on FBO renovation.
Only 8 percent plan additional staff additions.
Nearly half of all FBOs said they plan to make an investment in technology upgrades as well. About 38 percent plan office space renovations and 30 percent plan terminal upgrades. Only one-quarter of respondents planned security upgrades.
About 40 percent want to invest in accounting software along with 22 percent looking at fuel tracking software.
Only 13 percent of FBO respondents said there IS-BAH certified. Just 22 percent said they plan to achieve the certification within the next decade as 84 percent said they saw no additional value in obtaining it.
Terry Yeomans, IS-HAB program director for the International Business Aviation Council (IBAC), said since the certification launched in 2014, the number of stakeholders taking part in getting the certification.
“It’s working well for those who have done it,” he said.
Rollie Vincent, president of Roland Vincent Associates, of Plano, Texas, said given the makeup of the FBO world, it’s not too surprising to see reluctance to change among some players. Large FBOs adopt to new standards quicker while smaller “mom and pop” organizations may initially repel change.
“Any sort of standard that comes in, it’s going to take some time to build awareness,” he said. “People are naturally a little bit skeptical and say ‘wait a minute, I’ve been doing this for 33 years and now you’re telling me what I’m doing is wrong and who’s to tell me that.’ It’s a natural progression and it’s expected the earliest certified organizations are expected to be the bigger players.”
Vincent said with some costs associated with getting the certification, FBOs are more cautious of their spending and that’s also a concern.
It’s a processed-based industry and Vincent said the certification is there to help FBOs have a smarter, safer business at its core. It also tackles new regulations on the horizon before they’re in place.
Vincent said it’s key to educate FBOs on the certification as it moves forward to make sure they understand the cost benefit it will yield to them and accept this coming change.
“I think communication has been an issue, which is not unusual,” he said. “But anything as complex as a safety management system isn’t going to be easy to put down on one page and say ‘here, this is why you want to do it.’
“It needs to be easy to understand and to take action.”
