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Qualicum Beach Airport Business Plan 2016

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Qualicum Beach Airport Business Plan 2016 Qualicum Beach Airport Business Plan 2016 Qualicum Beach Airport Business Plan 2016 1 Qualicum Beach Airport Business Plan 2016 Qualicum Beach Airport Business Plan 2016 TABLE OF CONTENTS A. Executive Summary B. Business Plan Development C. History and Economic Impact 1. Airport History 2. Airport Operator 3. Airport Users Committee 4. Economic Impact D. External Factors and Market Influences 1. Planning Environment 2. Location E. Challenges and Opportunities 1. Branding, Marketing and Partnerships 2. Land Development Opportunities 3. Business Processes and Airport Presence 4. Capital Funding and Revenue Generation F. Strategy and Implementation 1. Maintain Airside Capacity 2. Administrative Initiatives 3. Confirm Governance and Airport Presence 4. Establish Land Use and Development Plan 5. Develop Terminal and Parking Area 6. Apply for Provincial and Federal Funding 7. Implement Marketing and Communications Initiatives G. Vision and Mission 1. Vision 2. Mission H. Financial Strategy and Reporting 1. Airport Fee Review and Update 2. Annual Business Plan 3. Annual Report I. Key Deliverables Appendix A Airport Attendant Job Description Appendix B Land Use Plan 2 Qualicum Beach Airport Business Plan 2016 A. Executive Summary Centrally-located on Vancouver Island the Qualicum Beach Airport has a long history of contributing to the community’s social, recreational and economic wellbeing. The airport also has the potential to contribute further to the quality of life for residents of the community through the maintenance and enhancement of services, such as air Medivacs, while also contributing to the economic sustainability of Qualicum Beach through further employment and business development. This business plan does explore diversifying revenues by using airport lands for compatible business and commercial development to grow the financial base in support of airport operations. It does this while recognizing, preserving and remaining the niche aviation market, within which the airport operates. This plan does not contemplate or recommend expanding the airport runway in favour of larger aircraft nor does it look to competing in the larger market that is currently satisfied by regional airports such as Nanaimo and Comox. The Qualicum Beach Airport is currently in an excellent tourism location with arguably the best weather in British Columbia. The airport was built by volunteers and still has a strong volunteer base, a committed flying club, private aircraft owners, a world-class skydiving company, two air carriers, and provides a safe location for Medivacs from the central Vancouver Island Region. The airport is already well run, meets all Transport Canada standards and has a committed and balanced Airport Users Committee. Financially, the airport struggles to break even and the Town operates the airport using town staff on a part-time basis. The airport has 18 tenant leases, 45 private aircraft, a terminal and an excellent restaurant. Businesses located at the airport support 64 full and part-time jobs. This plan recommends that the Town of Qualicum Beach adopt a new vision and mission statement for the airport, as follows: Vision “To become a viable community-based Municipal Airport and Business Hub while contributing to the economic growth and quality of life for residents of the Town of Qualicum Beach.” Mission “To provide safe, high quality airport services and facilities to meet the needs of shared community air services, general aviation, helicopter and medivac operations while contributing to the economic viability of the airport through airport-compatible business development including maintenance, distribution and storage facilities, small cargo operations, training facilities, high tech facilities and related support services”. Priorities for action have been divided into seven goal areas with a brief description of the key initiatives described below. 3 Qualicum Beach Airport Business Plan 2016 Goal 1: Airside Facilities and Capacity A key requirement to maintain the full capability of the runway is tree removal. This is a challenge for all airports in BC. The town is currently negotiating with private owners and this removal will be needed to allow continued night operations. Additionally, the high frequency of Medivacs dictates the need for further apron management and helipad identification, as well as a capital development plan for tie downs and apron facilities. Goal 2: Administrative Initiatives A primary detriment to investment in the airport for hangars and other commercial development is the current 5-year lease term. Lengthening the term to 30 or even 40 years would provide more certainty and be consistent with the vision recommended. It is also recommended that the current fee structure be updated and innovative collection procedures be put in place, as well as an annual business plan and short annual report. Goal 3: Confirm Governance and Airport Presence By confirming the proposed mission statement and delegating additional responsibilities to the Airport Users Committee, the Town sets the stage to develop the airport as a community asset and realize additional revenues. It is recommended that a part-time Airport Attendant be hired or contracted to provide a presence at the airport, respond to customers, carry out airport maintenance and collect fees. Goal 4: Land Use and Development Plan A key element in attracting any business is both stability and a clear plan. By adopting a land use plan and identifying available development areas with both aviation and non aviation-related areas it is expected that the town will be able to attract storage facilities, aquaculture cargo, technical training facilities, movie production facilities and terminal support industries, such as car rental and garage facilities. Goal 5: Terminal and Parking Area To attract more passengers and more tourists, it is recommended that the existing terminal be redeveloped and expanded to better use existing space; repair the air conditioning; establish a pilot briefing area; and expand the restaurant which is a major draw to the airport. The parking lot could be expanded and divided into long term and short term with a minimal parking charge. Electronic pay systems such as “pay-by-phone” are recommended to minimize facility costs. Goal 6: Apply for Provincial and Federal Funding Starting with the proposed apron and helipad development, it is recommended that the airport apply for capital funding in accordance with a 10-year Capital Plan. Goal 7: Marketing and Communications Along with the vision statement, it is recommended that Qualicum Beach Airport be branded as XQU (the IATA location code). XQU deserves an expanded web page, as part of the town web site with links to both Orca and KD Air, as well as the flying club. A partnership for marketing with the Parksville Qualicum Beach Tourism Association is recommended. 4 Qualicum Beach Airport Business Plan 2016 Detailed action plans for these goals are contained in the following report. It is recognized that development takes time and attracting the right anchor tenants requires advance planning, detailed design, servicing and town approvals. This plan should provide a stable framework for the Town to pursue new businesses which will provide both increased revenues and jobs. It is also recognized that the airport must continue to be an integral part of the community and consultation will be required, as well as maintenance of good neighbour policies. B. Business Plan Development Aeroedge Consulting Inc. was selected through a competitive process to complete a business plan for the Qualicum Beach Airport. The objective is to provide an overview of the airport market in a regional and municipal context; consult with stakeholders; identify opportunities for the airport; provide comparisons with other airports; examine alternatives; establish achievable goals and objectives; and formulate a strategic business plan for 1, 5 and 10-year periods. The resulting business plan is intended to be strategic and conceptual in nature rather than provide detailed financial and engineering proposals. Business Plan Objectives Vision - a clear statement of where the airport is going. Size and expectations. The vision will govern the investment, land use and operational priorities for the airport. Key Elements - define the key elements for success including defining “low-hanging fruit” and the changes or possible investments required to grow. Opportunities - define what the opportunities are for this size of airport. Create a recommended approach and governance structure to deliver. C. History and Economic Impact Airport History The Qualicum Beach Airport (XQU) was built by volunteers of the Qualicum Beach Rotary Club, beginning in 1954. In 1957, the Province transferred 160 acres of Crown land to the Town of Qualicum Beach for airport purposes. In 1986, the runway was widened to 75 feet and in 1989, the runway was extended to its current length of 3,564 ft. The runway has displaced thresholds to ensure adequate clearance from trees located at the ends of the runway 11-29. In 1996, runway lights were installed to permit extended hours of operation in the summer and winter. The airport noise management program ensures that the airport is closed from 10 pm to 6 am except for Medivac or prior approval (PPR). The airport has provided scheduled passenger service since 1975 and in 1991, the airport terminal was constructed. The airport serves a “niche” market offering passenger service to Vancouver,
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