MESSAGE FROM THE AMAC president
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President and CEO
AMAC MEMBER SPOTLIGHT
Spotlight on AMAC's Joe Waller
As Senior Vice President of Business Development for Westfield Concessions Management and former Vice President of Business Development for HMSHost Corp, Joe Waller knows what it takes to be a success in airport concessions. He shares some advice for prospective ACDBEs.
"Start by asking a ton of questions," he says emphatically. "Talk to the AMAC members who are already in airports. They are exceptional people and good people. They are willing to share their experiences."
An airport concession is a tough business, he says. "Don't be fooled by those who say 'you've got a captive market'. It can actually be more difficult than having a store on the street. You've got people moving quickly, spaces are much smaller, there are higher rents, TSA regulations, and business interruptions."
He suggests that the major concession companies are looking for partners that have drive, determination and experience in their business. "We look for those who know their target audience and how to attract them, who have demonstrated strong business skills and are willing to work closely with the airport leadership and their partner," he said.
"You also have to be passionate about customer service and about the quality of your products," he adds.
Those interested in airport concessions should spend time in different airport terminals observing customers, concept designs, menus, service models, and speed of service. They should attend airport industry conferences like the AMAC Business Diversity Conference and Regional Forums. And, they should stay informed about new airport regulations, industry news, trends, and competitive business intelligence, the experts say.
"The biggest mistake that you can make is to be afraid to ask for advice and learn from the people who know the pitfalls," he said. "Networking with the AMAC team will help you immeasureably."
Waller notes that Westfield is a development company in the business of creating customer experiences that allow their tenants to maximize their profitability. He recommends that new concessionaires work closely with their design and construction team to create just the right atmosphere for their customers. "The smartest people ask questions, then listen and absorb."
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THE AMAC TRAINING INSTITUTE
Moore, who is head of management consulting firm Animer Consulting, LLC (www.animerconsulting.com), is an expert in building strategic alliances and creating teaming relationships. She is charged with leading the push to develop a structure and framework for AMAC's new Training Institute.
"The Institute's goal will be to insure that there is a future for business workforce and contracting diversity in the airport industry by educating and training industry leadership," she says.
Target audiences for the Institute will be airport decision makers and professionals, DBE Liaison Officers, large and small businesses in the aviation industry and professionals interested in career development and leadership skills, as well as those who want to understand the business of airports, Moore notes.
"We will be developing a series of ongoing training opportunities delivered in a variety of formats," she says. These will include regional training conferences, a speaker's bureau, regular webinars and periodic seminars and workshops. "We will cultivate cooperative agreements with AMAC member training organizations like mine to offer services," she added.
Airlines Rake In $5.5 Billion, Most Profitable Quarter Since 2007
Lower fuel costs and steady travel demand continue to boost the nation's airlines, which enjoyed the most profitable quarter since 2007.
Commercial airlines reported net income of $5.5 billion for the three months that ended in June, a 53% increase over the same period last year, according to financial data released Monday by the U.S. Department of Transportation.
That's the highest net income since the carriers collected $5.9 billion in the same period in 2007.
The latest financial data show the industry remains on firm footing after losing billions of dollars in the wake of the 2001 terrorist attacks and the 2008 recession.
The formula for the ninth straight profitable quarter: fuel costs that have dropped about 30% since the same period last year, combined with passenger totals that have jumped nearly 10%, and fees from checked bags and reservation changes that have climbed about 5%, according to federal data. Revenue from fares has remained nearly flat over the last year.
The most profitable airline in the second quarter was Delta Air Lines, with net income of $1.5 billion, up nearly 85% compared with the same period last year, according to the U.S. Department of Transportation.
Dayton Airport Begins Construction On $14M PSA Hangar
Dayton International Airport has broken ground on a $14 million expansion for PSA Airlines Inc., city of Dayton officials announced.
The new 69,000 square foot hangar will house aircraft and serve as an engine parts storage facility for the Dayton-based regional carrier. Construction of the hangar follows completion of a 7,500 square foot operations control center earlier this year. Work is expected be complete by spring 2016.
Officials said the new facility is expected to create space for 42 new jobs at PSA, which already employs more than 440 workers in Dayton, taking the airline's projected total local payroll to more than $20 million. New positions will include flight instructors, ground instructors, mechanics, supervisors, administrative support, clerical and parts personnel.
R.L. Fender Inc. was awarded a $4.1 million contract to complete the first phase of the project, which will include site work, utilities, building foundations and installation of electrical, mechanical and plumbing systems. The Dayton-based company also will install underground storage tanks for the hangar's fire suppression systems and reconfigure the parking lot.
DOT Awards Small Community Air Service Grants
The U.S. Department of Transportation (DOT) has committed to provide $5.5 million to help 11 small communities in 11 states develop solutions to improve their local air service needs under the Small Community Air Service Development Program.
This year, DOT received 49 eligible applications from 29 states. The communities that will receive grant awards this year are: Tallahassee, Florida ($750,000); Salmon, Idaho ($150,000); Presque Isle, Maine ($250,000); Traverse City, Michigan ($750,000); Great Falls, Montana ($385,000); Fargo, North Dakota ($500,000); Redmond, Oregon ($500,000); Sioux Falls, South Dakota ($500,000); College Station, Texas ($475,000); Pasco, Washington ($750,000); and Riverton, Wyoming ($481,810).
The communities that have been selected are contributing more than $4.6 million in local financial resources to complement the federal support, DOT representatives said.
Airline Consolidation Hits Smaller Cities Hardest
The Wall Street Journal
AMAC Represented on Distinguished CBC Panel in Tunica
Bhavesh A.Patel of Denver International Airport Receives Catalyst Award
Bhavesh A. Patel, representing the Denver International Airport, has been honored by AMAC with The 2015 Airport Concessions Innovation and Inclusion Award. This award honors an airport or corporation whose concessions program has met or exceeded their ACDBE goal over a period of not less than two years.
Metropolitan Airports Commission Leader Jeff Hamiel Set To Retire Next Spring
After close to 40 years of working in aviation -- a stint that saw airline bankruptcies, a terror attack and a vast expansion of passenger travel -- the longtime executive director of the Metropolitan Airports Commission has announced plans to retire next spring.
AMAC member Jeff Hamiel, 68, began his career with the MAC in 1977 as the organization's first noise program manager, following a stint as a pilot in the Air Force. He rose through the ranks at the MAC and was named CEO/executive director in 1985.
Hamiel oversees the day-to-day operations of one of the nation's largest airport systems, which includes Minneapolis-St. Paul International, plus Airlake in Lakeville, Anoka County-Blaine, Crystal, Flying Cloud in Eden Prairie, Lake Elmo and St. Paul Downtown.
The MAC has 580 employees and a budget of about $300 million this year.
Traffic at MSP increased to nearly 35 million passengers last year, up from 8.4 million in 1977, when Hamiel joined the MAC. The number of flights increased in that period by 56 percent to 412,695 in 2014 -- the airport is now the 16th busiest in the United States.
Hamiel's last day will be May 16, 2016. A replacement is expected to begin work in mid-April.
AMAC at the 2015 CBC Foundation Celebration
Affordable Space Available
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UPCOMING AMAC EVENTS
AMAC Southeast Regional Forum
IAA Plans Business Diversity Event for Professional Services
For more information and to register, visit https://www.eventbrite.com/e/business-diversity-outreach-event-for-professional-services-registration-15376024102
AMAC Western Region Economic Opportunity and Policy Forum to be Held in LA
AMAC is pleased to announce that our 2015 Annual Economic Forum will be held in Los Angeles this year on December 2nd and 3rd.
On December 2nd, the day will begin with a Project LIFT event for college students to introduce them to the variety of career opportunities in the aviation industry. At the same time, Ken Weeden of KWA, a full service Disadvantaged Business Enterprise (DBE) Programs Consultant, will conduct an all-day training on site for Disadvantaged Business Enterprise Liaison Officers and staff.
Also that day, a scholarship fundraising golf tournament will be held at one of our local golf courses by the ocean. In the evening, enjoy a networking reception, "A Taste of LAX", at a facility that overlooks the LAX runways.
On December 3rd, there will be a full day of workshops with speakers discussing topics, including: legislative updates, concession and construction opportunities at the airports in the western region, how to finance your business and steps to success in the airports. Students in the Western Region who have been selected for scholarships will receive their awards.
Highlighting the second day will be a behind-the-scenes tour of the newly renovated, award winning Tom Bradley International Terminal at LAX; Exhibitors' Booths; and an evening networking reception. The events on the 3rd will be held at the Sheraton Gateway LAX Hotel, located on Century Blvd.
Information on how to register for this exciting event will be available shortly in this section of Connections.
Scholarships to Attend VA Transportation Conference Available
Airports Going Green Group Looks at Diversity
Is the phrase "Green Airports" an oxymoron? AMAC member Ernest Huffman Jr., airline representative and aviation economist at the Chicago O'Hare International Airport, doesn't think so. He firmly believes that airports, sustainability, diversity and community are all connected.
At an upcoming Airports Going Green Conference hosted by the Chicago Department of Aviation (CDA) and the American Association of Airport Executives (AAAE), Huffman will moderate a panel to discuss "Sustainability and Diversity."
The conference will be held on October 26-28 at the Holiday Inn Chicago-Mart Plaza, 350 W. Mart Center Dr., Chicago, IL 60654. For more information and to register, click http://www.airportsgoinggreen.org/
The Airports Going Green Conferenceis the industry's leading sustainability forum, bringing together aviation sustainability leaders, experts, and innovators from around the world. Session topics include airport, tenant, and stakeholder collaboration strategies; innovations in renewable energy and alternative fuels; waste and recycling initiatives; emerging technologies; and much more.
"The diversity panel format will be an Agree/Disagree concept which will allow a great deal of participation from the audience members" says Huffman. "I hope to get discussions going that push the diversity agenda at every AAAE conference."
Huffman will be joined on the panel by:
- Shannetta Griffin - Senior Director of Planning and Development, Indianapolis Airport Authority
- Meenakshi Singh - Former Deputy Director of Planning and Development, City of San Jose
- Liza Milagro - Senior Sustainability Planner, Dept. of Aviation-Hartsfield Jackson, Atlanta International Airport
- David Comeaux - Assistant Vice President of Workforce Diversity & Inclusion, Dallas/ Fort Worth International Airport
- Carol Bell - Vice President for B. Coleman Aviation, Gary/Chicago International Airport
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