Loading...
HomeMy WebLinkAbout02 - Section 1 - IntroductionSECTION 1 1 Introduction 1.1 Purpose The purposes of this Business Case Analysis for the City of Georgetown's Municipal Airport (GTU) is to assist City Management and Airport Management in developing and operating the Municipal Airport in a manner that would be financially and operationally sustainable in both the immediate and long term. In this case, financial sustainability would refer to having enough airport generated revenue to cover all operating, capital, maintenance, debt and depreciation expenses. The desired outcome of the business case analysis is to, in consultation with City and airport management staff, provide a recommendation as to the most effective and financially sustainable form of long term management for the airport. 1.2 Governing Assumptions 1. Established through discussions with airport and City staff, the following assumptions were used to guide the business analysis: GTU is a key public transportation facility, tied directly to the long term economic well being of Georgetown. The facility must be developed as a business and job creator as well as serving its intended transportation functions. It is estimated that the airport is utilized by as many as 20 fortune 1000 businesses per week, and as many as 5 fortune 100 businesses per week. 2. The airport should be viewed as one of the most significant economic development sites within the City. As such, the airport will require a focused and streamlined development approval process in order to remain competitive with other competing airports in the region. 3. The City should embrace a new Brand and Vision for the airport, and develop a policy statement that speaks to the communities' goals for the airport. 4. Competition for Austin metropolitan area aviation demand is stronger than ever. The City and GTU staff must think strategically about how the airport will remain viable in the face of the changing aviation market. 5. The current GTU airport master plan is now outdated and has lost its usefulness. A new strategic airport master plan should be executed as soon as possible in order to help provide a single focus through all of the needed direction the airport has regarding long term capital investment, capital maintenance requirements and strategic goals. A workable solution to airport runway length limitations is also an important subject for the new airport master plan to consider. 6. In order for GTU to remain viable in its chosen role, it must be able to retain sufficient earnings to cover its operating expenses, and if possible, its local share of capital expenditures. 7. For the purposes of this business plan, it is assumed that the GTU market role will continue to accommodate all aspects of General Aviation with an emphasis on keeping and developing high end users that will make the airport more financially viable in the long term. 1.3 Process As documented in the following sections, the process to conduct the business case analysis was determined with City staff, and included the following approach: 1. Assemble all of the available information and background data. 2. Assess best practices from other successful airport operations. 3. Determine best practices which best suit GTU. GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS 1 COPYRIGHT 2013 BY CH2M HILL, INC. INTRODUCTION 4. Develop a 10 -year baseline financial model. 5. Recommend alternative airport operating models. The analysis recommends industry best management practices, and included consultations with airport management to customize the best practices to work more effectively in the Georgetown market. The analysis also considers case studies for the long term management of the airside business component. 2 GEORGETOWN MUNICIPAL AIRPORT BUSINESS CASE ANALYSIS COPYRIGHT 2013 BY CH2M HILL, INC.