Connecticut Airport Authority
Total Page：16
File Type：pdf, Size：1020Kb
Connecticut Airport Authority Annual Report – Fiscal Year 2015 Bradley International Airport Kevin A. Dillon, A.A.E. [email protected] Terminal A, 3rd Floor Executive Director, CAA www.ctairports.org Administrative Offices p. (860) 292-2054 www.bradleyairport.com Windsor Locks, CT 06096 f. (860) 627-3594 Table of Contents I. Executive Summary ............................................................................................... 2 Highlights II. Activities of the Authority ...................................................................................... 3 Fiscal Year 2015 Activities Fiscal Year 2016 Planned Activities III. Operating and Financial Update ......................................................................... 10 IV. Legislative Recommendations ............................................................................. 12 V. Appendix ............................................................................................................... 15 CAA Board of Directors CAA Advisory Committee Fiscal Year 2015 Audited Financial Statements Fiscal Year 2015 Federal Single Audit Fiscal Year 2015 Parking Facility Audit Executive Summary Effective July 1, 2011, Public Act 11-84 established the Connecticut Airport Authority (CAA) and vested in this quasi- public agency the responsibility for developing, improving, and operating Bradley Airport (BDL) and five of the state’s general aviation airports (Danielson, Groton-New London, Hartford- Brainard, Waterbury-Oxford, and Windham). The CAA is charged with serving as an economic driver in Connecticut, making the state’s airports more attractive to new routes, new commerce, and new companies that may be considering making Connecticut their home. As part of Public Act 11-84, the CAA is required to report annually to the Governor and the joint standing Committees of the General Assembly having cognizance over matters relating to transportation and commerce. The required report shall include a summary of activities of the Authority, a complete operating and financial statement, and recommendations for legislation to promote the purposes of the Authority. The following report shall serve to meet the requirements of the statute. Highlights Throughout FY 15, the CAA has focused on developing Bradley’s route structure, leading to the launch of new daily, nonstop service to Houston, TX (George Bush Intercontinental Airport). This added emphasis on route development, along with other CAA initiatives, resulted in the Authority’s second consecutive year of significant year-over-year passenger growth at Bradley. The Authority also managed a robust capital development plan to enhance all of its airport facilities and engaged in numerous initiatives to improve the customer experience at CAA airports. The CAA continued to strengthen its partnerships with state, regional, and local entities in an effort to promote economic development in surrounding areas, and the organization also exercised its role as the statewide authority over aeronautics by initiating a new statewide airport system plan. Additionally, BDL financially outperformed its budget expectations while simultaneously generating a high level of debt service coverage, completing negotiations on a new airline operating and terminal lease agreement, and successfully implementing a new CAA financial management system. Bradley also maintained high credit ratings with the major reporting agencies. CONNECTICUT AIRPORT AUTHORITY - DECEMBER 2015 2 Activities of the Authority Throughout FY 15, the CAA remained actively engaged in the development, promotion and operation of the state airport system. The CAA strives to provide first-class aviation facilities, operations, and services in a safe, secure, and customer-focused manner. The CAA is also working to link Connecticut to the global economy by developing, managing, and promoting the airport system as a catalyst and conduit for robust economic activity and growth in all regions of the state. Fiscal Year 2015 Activities The CAA established a set of broad objectives to advance its mission. Some of the CAA’s major FY 15 accomplishments included the following: 1) Route Development The CAA continues to work with airlines, cargo operators, and other stakeholders to increase activity on existing routes and develop new domestic and international service. To help spur additional service development at Bradley, the CAA offers an Airline Incentive Program that provides marketing assistance and various fee waivers to airlines. In FY 15, the CAA announced the addition of service between Bradley and Houston, TX. On October 6, 2014 United began offering new daily, nonstop service to George Bush Intercontinental Airport in Houston, TX. The new service has performed well since its inception, and the CAA is pleased to provide its passengers with direct connectivity into another major US business hub. The CAA has also focused its attention on the reestablishment of direct transatlantic service at Bradley International Airport. This initiative has major regional economic implications, allowing area businesses to conveniently access European destinations and beyond without the need to drive to airports in New York or Boston. Throughout FY 15, the Authority held in-depth discussions with a number of airlines regarding potential service opportunities, and the CAA partnered with the State and regional businesses to make significant progress in these negotiations. Further information on the transatlantic service initiative is provided later in this report. The addition of new service, in Bradley Passenger Growth conjunction with increased efforts to promote existing service in the 6,000,000 Fairfield County region, has 5,800,000 resulted in a year of notable 5,600,000 passenger growth at Bradley. In FY 14, passenger numbers 5,400,000 increased approximately 7.5% over 5,200,000 FY 13 figures. In FY 15, Bradley 5,000,000 passenger numbers increased 4,800,000 nearly 4.2% year-over-year. This FY 2013 FY 2014 FY 2015 continued growth is especially impressive when viewed in the Total Bradley Passengers context of last year’s tremendous passenger increases, as well as the CONNECTICUT AIRPORT AUTHORITY - DECEMBER 2015 3 past year’s particularly disruptive winter weather. The enduring growth of Bradley’s passenger numbers shows the benefits of a renewed focus on strengthening relationships with the CAA’s airline partners and providing best-in-class customer service. The CAA is also dedicating energy towards potential route development at one of its general aviation airports. A major initiative was launched in FY 15 to reestablish commercial passenger service at Groton-New London Airport. Some businesses in Eastern Connecticut currently travel to Rhode Island’s T.F. Green Airport, and the reestablishment of convenient commercial service at Groton- New London Airport would help curb Connecticut companies exporting segments of our economy over state borders. The CAA has started collaborating with companies and regional business organizations to understand their unique business travel needs and hone a pitch to potential airlines. While this initiative is difficult to achieve at a general aviation airport in the context of national airline cutbacks, the significant business base and substantial tourism industry in Eastern Connecticut make the region particularly attractive. The CAA is committed to furthering its partnerships with regional stakeholders to fully explore this potential opportunity. In addition to the Groton-New London Airport endeavor, the CAA has also engaged a number of airlines regarding the potential for new scheduled charter service from various CAA general aviation airports. 2) Capital Development The CAA strives to develop and maintain best- in-class infrastructure at all of its airports, and the organization undertook an aggressive capital development plan in FY 15 to provide safe, convenient, and customer-friendly facilities. These advances will pave the way for the future of Bradley International Airport, and numerous steps were also taken to maximize the potential of each GA airport. Figure 1: Ground transportation center (l) and new Terminal B (r) renderings. Terminal B Demolition and Ensuing Projects. In August 2014, the CAA began the demolition of Terminal B (also known as the “Murphy Terminal”) at Bradley and initiated the first step in a multi-phase process of airport modernization. This complex undertaking is expected to be completed by the end of FY 16 Q3. After the demolition is complete, the CAA plans to realign the airport’s roadway system and begin construction on a new ground transportation center. The center will consolidate all of Bradley’s rental car facilities in one convenient location with direct, enclosed access to the existing terminal facilities. The center will also include hundreds of public parking spaces, as well as a transit component with bus docks providing regional bus service and high-frequency service to the Windsor Locks train station. The CAA also hopes to develop direct light rail connectivity from the New Haven – Hartford – Springfield rail line to Bradley’s ground transportation center as a long-term goal. Based on current passenger traffic projections, a new Terminal B facility will be needed in approximately 2025. Planning continued for both the ground transportation center and new Terminal B facility in FY 2015. CONNECTICUT AIRPORT AUTHORITY - DECEMBER 2015 4 Other Bradley Projects. The CAA has also started work on a number of other