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En Terrific Reasons Why Massport Should Have Had a Miserable Year in Fiscal 1981

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En Terrific Reasons Why Massport Should Have Had a Miserable Year in Fiscal 1981 EN TERRIFIC REASONS WHY MASSPORT SHOULD HAVE HAD A MISERABLE YEAR IN FISCAL 1981: THE AIRLINE INDUSTRY WAS OFE \r>sr Yw <y PROPOSITION 2>k. r Ö Z f S»" 1/1 Qt SOARING FUEL COSTS. O g o O Vl OUR AIR CARGO FACILITIES 0) o U\ WERE STRETCHED TO D ir- THE LIMIT a } O Q ■ c . (/■> BOND RATINGS FELL ACROSS (ft THE STATE AND NATION. <j3 INTEREST RATES REACHED NEW HIGHS. THE BOSTON FISHING INDUSTRY IS STRUGGLING TO REGAIN ITS STRENGTH. THE PORT OF BOSTON IS SADDLED WITH PROBLEMS. WE OWN HUNDREDS OF ACRES OF OBSOLETE 4R WATERFRONT PIERS. 387.3M3 Ml*l83r 1981 WE RUN A MAJOR U.S. AIRPORT THAT SITS IN PEOPLE’S BACKYARDS. TEN REASONS WHY WE DIDN’T: 1. DAVID R BERNSTEIN ADMINISTRATION HR AND FINANCE DIRECTOR 387, 3 h 3 MMI 2. WILLIAM C. COLEMAN AVIATION DIRECTOR I n \ 3. ELIZABETH L TAYLOR & BUDGET DIRECTOR 4. MARTIN C. PILSCH. JR. PORT DIRECTOR 5. DAVID R WEINER ENGINEERING DIRECTOR 6. ELLIOT K. FRIEDMAN DEVELOPMENT DIRECTOR a 7. KENNETH C. PEARSON BRIDGE DIRECTOR 8. ROSLYN M. WATSON COMMONWEALTH PIER PROJECT MANAGER 9. NORMAN J. FARAMELLI PLANNING DIRECTOR 10. CLAIRE R. BARRETT MANAGER. NOISE ABATEMENT OFFICE 1 » 2 “ WITHOUT STRONG MANAGERS, MASSPORT WOULD HAVE HAD A WEAK y e a r :1 The value of strong, capable managers was never more apparent at Massportthan during fiscal 1981. Financially, Massport enjoyed its best year ever, despite a host of eco­ nomic. legal, and environmental problems. The airline industry, our largest source of revenue, underwent serious retrenchment and losses, fueled by rising energy costs, lower seat demand, and a post­ deregulation realignment. Investors, to whom we turn to finance many of our activities, were influenced by Proposition 2}k, as it created large question marks for the public sector in Massachusetts. In the face of a growing urgency for new air cargo facilities, a major airport development project met with environmental problems. Interest rates climbed to new highs as we sought private capital to redevelop our obsolete waterfront properties. Amid strong external and internal pressures on the Port of Boston, we kept expanding our seaport container capacity. As Logan airport continued to gain air service, we insisted on a noise abatement program that was second to none. And, while many other organizations shrank from such responsibilities, Massport expanded its commitment to equal opportunity. Taken together, these factors could have been suitable apologies for Massport's having a weak year. Yet, in fiscal 1981, Massport grew stronger and better, accomplishing virtually all of its major goals. The reason Is Inescapable: Massport is blessed with managers of exceptional skill, judgment, and dedication. The 700-some people who work for the Authority made fiscal 1981 a success. Therefore, it is with pride that I dedicate this report to them. Massport, The Massachusetts Port Authority A GUIDE TO THE ACCOMPLISHMENTS OF MASSPORT MANAGERS IN FISCAL 1981. PAGE 10. BIRD ISLAND FLATS HITS PAYDIRT. After two years of planning and review, Logan's badly-needed PAGE 6. air cargo/commercial LOGAN SOARS complex goes into UNDER the ground. DEREGULATION. The airline indus­ N. try staggers, other airports didn't cope, yet Logan International outperforms its East Coast rivals. PAGE 12. TURNAROUND AT THE PORT. Overshadowed by Logan, saddled with a chronic lack of space, the working port of Boston under­ goes a major buildup. PAGE 16. COMMONWEALTH PIER LURES NATIONAL DEVELOPERS. Five nationally-known development firms vie for the right to recycle the huge pier. PAGE 18. RENAISSANCE AT THE FISH PIER. Rescued from demc T lition, the Fish Pier enters the fine F it r r r ! ? stages of modernization, reviv­ m t t a 11 III 11 ing the industry and the area. ■i...... * . •■"'iiiiii,, “ WITHOUT STRONG MANAGERS, MASSPORT WOULD HAVE HAD A WEAK PAGE 20. I MASSPORT GAINS HIGHEST FINANCIAL RATINGS. Moody’s and Standard & Poor’s give Massport a fiscal P 1 checkup and pronounce it In fine form. \>r r - \ Y y DEVELOPMENT BEYOND 2 1/2. Enjoying exceptional financial strength, Massport launches a building boom for the 1980s. PAGE 22. MORE PEACE AND LESS NOISE. The nation’s 10th busiest airport remains the nation’s most successful on noise abatement bringing relief to some PAGE 24. REAFFIRMING A COMMIT­ MENT TO PROGRESS. With innovative programs for women, minorities, smalfbusi- ness, and the community, Massport remains resolute on equal opportunity. 5 “ At other airports, deregulation caused chaos and frustration. At Logan, we adapted smoothly because we're not locked into long-term leases that make changes in the airline industry difficult to accommodate. And our marketing program allowed us to grow intelligently and quickly.’ W illiam C. Coleman Aviation Director William C. Coleman Thomas J. Kinton Joseph EXreene Aviation Director Building Maintenance Manager Ground Transportation Manager ogan International soars European traffic at Logan is to Denver and points beyond in June, under deregulation. As the expected to accelerate with the advent 1981. Earlier, New York Air launched a L ™ J dust settled from deregulation of Northwest Orient’s London service, spirited campaign to of the airline Industry, Logan Interna­ which began in May, 1981. Massport unseat 20-year incum­ tional emerged as the dominant growth was especially gratified by this route bent Eastern Airlines, airport In the Northeast corridor. award since it capped a four-year cam­ whose shuttle has long In the two years paign by the Authority to restore dominated the highly since deregulation, Boston/London service lost under a desirable (3rd busiest 1978-80, Boston led U.S.-Brltish aviation agreement signed in the U.S.) Boston/New York run. all other East Coast in 1977. The competition was soon joined by airport cities in domes­ Strong marketing also brought the newly-formed People Express and by tic passenger growth nation’s 9th leading airline to Boston, World Airways, both of whom offered rate and outdistanced the other East Continental, which inaugurated service discount fares between Boston and Coast gateways with a 29 percent Newark airport, which serves the New surge in trans-Atlantic travelers. York area. In addition, four new com- , muter airlines opened regional service during FY81. 6 Richard J. Dalton Bernard t.u eary wmiam u. jerrrey jo a n n. mitcnen Field Maintenance Manager Parking Garage Manager Assistant Fire Chief Public Information Manager New international carriers brought To ease congestion for Logan trav­ major U.S. airlines plunged to $356 to Boston included El-AI, with weekly, elers on the ground, Massport took a million in CY80, Logan maintained its non-stop charters to Tel Aviv, and Capi­ number of steps to improve its already price competitiveness with other air­ tol, offering new seats to Brussels and well-developed ground transportation ports, showing net operating revenues other European cities. system. The terminal-to-subway of $38 million for the same period. Increased activity at the world’s 13th Shuttle Bus service was streamlined, Moreover, Massport took steps in busiest airport prompted Massport to while the price was held at 250 a ride; financial management that made adopt a peak pricing concept for small new bus and limousine service was Logan Airport virtually “inflation-proof, aircraft using Logan to minimize future brought to the airport; insuring that the airport will remain a airport congestion and strengthen and the Share-A-Cab stable source of funds to underwrite safety and efficiency. program was refined. Massport's objectives for many years. Financially Logan —which accounts for 70 cents of every dol­ lar in Massport revenue—remained strong: Revenues grew to $72 million in FY81. While operating losses for 7 “ At other airports, deregulation caused chaos and frustration. At Logan, we adapted smoothly because we're not locked into long-term leases that make changes in the airline industry difficult to accommodate. And our marketing program allowed us to grow intelligently and quickly." W illiam C. Coleman Aviation Director William C. Coleman Thomas J. Kinton Joseph E. Greene Aviation Director Building Maintenance Manager Ground Transportation Manager 8 Richard J. Dalton Bernard E. Cleary William D. Jeffrey Joan E. Mitchell Field Maintenance Manager Parking Garage Manager Assistant Fire Chief Public Information Manager "Bird Island Flats is finally going forward because we managed to resolve the complex and sensitive issues that had stalled this project in the past. Under the mixed-use concept we re committed to, everyone benefits-the airfreight industry, business, labor, the community.and Massport.” Norman J.Faramelli Planning Director Norman J. Faramelli Christian W. Dame Planning Director Bird Island Flats Project Manager1 n ird Island Flats hits paydirt. K Between 1964 and 1973, J ninety acres of Boston Harbor ^ were filled to create an area of Logan airport known as “ Bird Island Flats." For the next seven years, the prime par-, cel lay virtually vacant, a victim of, among other things, its proximity to residential neighborhoods. Finally in 1979, under Executive Director Davis, Massport introduced a unique proposal for the site: Develop it . 10 - 1 ^ 1 » V MS CL M L ' \ I 1 ili ' - ' M Richard R Marchi Albert V. Bratt Edward M. Baldwin Assistant to the Aviation Director Assistant Director of Aviation, Planning Aviation Planner ■ as a combination air cargo and com- the way was finally smoothed for eventually create over 2,000 perma­ ■ mercial center. This mixed-use plan met development of the new air freight nent new jobs, and generate substantial the growing need for expanded air- complex. tax revenue for the City of Boston. ■ freight facilities at Logan while offering Over the next two years, Massport The new cargo facilities will assure substantial noise relief to residents and private developers will invest an businesses that depend on time- shielded by the new commercial estimated $134 million to create an air- sensitive deliveries, such as the region’s structures.
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