Professional Documents
Culture Documents
Prepared for:
County of Northampton
Prepared by:
THE
February 6, 2009
TABLE OF CONTENTS
EXECUTIVE SUMMARY................................................................................... See Separate Document SECTION 1 INTRODUCTION ........................................................................................................ 1-1 SECTION 2 STAKEHOLDER SURVEY ....................................................................................... 2-1 2.1 Survey Results...................................................................................................................... 2-1 2.2 Survey Summary................................................................................................................ 2-19 SECTION 3 COMPARABLE AIRPORTS ANALYSIS .............................................................. 3-1 3.1 Comparable Airports Data Collection, Screening and Selection.............................. 3-1 3.2 Comparable Airports Overview........................................................................................ 3-4 3.3 Human Resources ............................................................................................................. 3-25 SECTION 4 AIR SERVICE ANALYSIS ......................................................................................... 4-1 4.1 Analysis of Interview with LVIA...................................................................................... 4-2 4.2 Comparison to Peer Airports ............................................................................................ 4-8 4.3 Summary and Conclusions .............................................................................................. 4-10 SECTION 5 ORGANIZATIONAL ANALYSIS ........................................................................... 5-1 5.1 National Governance Models ........................................................................................... 5-2 5.2 National Organization of Operations Models ................................................................ 5-2 5.3 Governance of Lehigh Northampton Airport Authority ............................................. 5-4 5.4 Organizational Analysis.................................................................................................... 5-10 5.5 LNAA Departmental Analysis ........................................................................................ 5-12 SECTION 6 FINDINGS AND RECOMMENDATIONS ........................................................ 6-1 6.1 SWOT Components........................................................................................................... 6-1 6.2 SWOT Results ..................................................................................................................... 6-2 6.3 Summary............................................................................................................................... 6-5 APPENDICES
1.0
INTRODUCTION
Lehigh County and Northampton County, Pennsylvania, retained The Louis Berger Group, Inc. in association with Signet Human Resources Management and TranSystems (Study Team) to perform the Airport Management Study of the Lehigh Northampton Airport Authority (LNAA) and Lehigh Valley International Airport (LVIA). The purpose of the study was to evaluate the efficiency and effectiveness of the airport functions to include the current state of air service, policies, revenue goals, planning/engineering, contracts, personnel, operational procedures, property management, and project management and to provide recommended actions to enhance the value of Lehigh Valley International Airport (LVIA) to the Lehigh Valley.
1.1 Study Scope
In order to accomplish the above study objectives, Berger defined a study scope which was submitted to and approved by Lehigh and Northampton Counties. The scope provided for several key study elements, including: a) to identify and gather relevant study information; b) methods for evaluating information concerning LNAAs management and organizational structure; c) the comparison of LNAA to comparable airports; d) the assessment of air service marketing and development initiatives; e) organizational evaluation including a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis; and f) to report on findings and provide recommendations.
1.2 Study Process
The Study was conducted over approximately five (5) months and the process involved the collection of various data and reports, the development and analysis of stakeholders perspectives by conducting surveys and interviews, assessing information from comparable airports, attending Board meetings, on-site observations, and completing exercises to evaluate the overall organization of LNAA. These efforts culminate in the identification of findings and recommendations documented as part of this report.
Data Collection The Study Team collected over 50 documents regarding LNAA on various subjects. These included: governmental documents such as the Pennsylvania Municipal Authorities Act and LNAA By-Laws; financial, administrative and policy documents including LNAAs current Financial Statement, New Board Member Orientation Presentation, LNAA Policies and Procedures for Union Employees, and Policies and Procedures for Non-Bargaining Unit Employees; and planning, operational and marketing documents such as LVIA Marketing and Advertising Package, Airline Marketing Presentations, and the LVIA Airport Master Plan Update, among others. The primary purpose for gathering and reviewing these documents was to provide the necessary input needed for the Study Team to make accurate observations concerning the overall governance of the Authority. Development of Stakeholder Perspectives The study included an extensive effort to understand the perspectives of various stakeholders (a stakeholder being defined as someone who has an interest in LNAA or the Airport). To do this, multiple methods were used that included in-person and telephone interviews, as well as a survey instrument that is discussed later in the report. The interviews were primarily conducted in Lehigh County offices with members of the Study Team. For logistical reasons, only a few of the participants found it necessary to be interviewed via telephone. Over 40 individuals representing a cross-section of Airport Employees, Airport Management, Board of Governors, County Administration, and Regional and Community representatives (stakeholders) participated in the interview process each of which were approximately 30 minutes in duration or longer. In addition to those people that were interviewed, a parallel survey was conducted. Surveys were conducted with each member of the LNAA Board of Governors, LNAA, appropriate Lehigh and Northampton County officials and a cross section of regional and community representatives. A total of 92 surveys were distributed electronically (web based) of which 48 people responded representing a response rate of approximate 52%. Assessment of Comparable Airports This component of the study effort identified five (5) airports to compare LNAA against and evaluate common and best practices among them. To choose the comparable airports, the Study Team identified airports that were in close proximity to
Lehigh & Northampton Counties February 6, 2009 Introduction Page 1-2
major domestic and international hubs, similar to LVIA. Additional criteria included the number of passenger enplanements, existing governance type, multiple airport operator status, and FAA hub classification. From these criteria, the study developed a list of potential comparable airports. After further evaluation, the Study Team in coordination with the Counties chose the following five comparable airports in which comparative data was collected and evaluated: 1. General Mitchell International Airport (Milwaukee, WI) 2. T. F. Green Airport (Providence, RI) 3. Orlando Sanford International Airport (Sanford, FL) 4. Harrisburg International Airport (Harrisburg, PA) 5. Stewart International Airport (Newburgh, NY) Each of these comparable airports were reviewed and compared to LVIA in various categories. In addition, the recent past and present activities regarding LVIAs Air Service Development activities were also assessed and is reported Section 4. A comprehensive review of all air service development marketing efforts was performed. Information was gathered through meetings with airport marketing officials, through the collection of information on incentive plans, recent air service development studies, and on other efforts tailored to market airlines. Organizational Evaluation The Study Team performed an organizational evaluation to review the data and information collected through the various study efforts discussed above. Included with this effort was a SWOT analysis conducted with LNAA. The SWOT analysis was held at LNAA offices and provided key inputs into the overall evaluation. This information as well as information collected on the various governance models of todays airports in the United States and the comparable airports in this study provided key input into the overall development of findings and recommendations for this study. Findings and Recommendations The Airport Management Study provides strategic findings and recommendations for the Counties to consider for implementation in its effort to increase the efficiency and effectiveness of airport operations with regard to the management of the Counties three airports: Lehigh Valley International Airport, Queen City Airport, and Braden Airpark. The essence behind each finding and recommendation identifies areas where the efficiency and effectiveness of LNAA can be enhanced for the betterment of the Lehigh Valley as a whole.
Lehigh & Northampton Counties February 6, 2009 Introduction Page 1-3
1.3
Document Outline
This report is divided into multiple sections providing information on each of the efforts completed for this comprehensive review. First, a standalone Executive Summary of the Study undertaking was produced and highlights some of the findings and recommendations made during the study process. The full results of the study can be found in Sections 1 through Section 6 as identified below. Section 1 Introduction. Provides an introduction to the study presenting the studys scope and process. Section 2 Stakeholder Research. Examines the stakeholder input process involving the information gathered as a result of the survey process. Section 3 Comparable Airports Analysis. Identifies the basis on which comparable airports used for the study were selected and assesses LNAA and LVIA in comparison with comparable organizations and airports in the areas of operations, management and organizational structure. Section 4 Air Service. Provides an overview of the air service marketing and development initiatives and of the overall efficiency and effectiveness of LNAAs approach toward air service development LVIA. Section 5 Organizational Analysis. Building on the data and analysis from Sections 2 and 3, provides a descriptive narrative of how LVIA compares in key areas. This section also examines commonly used airport governance models, as well as the organizational and governance structure of the LNAA. Section 6 Findings and Recommendations. Provides a summary of the SWOT analysis and presents the findings made by the Study Team along with strategic recommendations to be considered by the Counties and LNAA for implementation.
1.4 Key Project Staff The following provide brief biographies of the key project staff that conducted this study. Steven T. Baldwin, Senior Vice President Mr. Baldwin is responsible for Bergers National Aviation Program and the delivery of all domestic aviation services throughout the firms network of offices. He brings with him 27 years of airport and aviation experience to this effort. Prior to Joining Berger in 1996, he served the NYSDOT Aviation Division for 14 years. There he had responsibility for the day-to-day operations of Stewart International Airport in Newburgh, NY and Republic Airport on Long Island. While with the DOT Aviation Division, he also directed the States planning and environmental programs for the State owned and operated airports, in addition to providing staff services to two governor appointed commissions. In addition, Mr. Baldwin served as the Governors congressional liaison to Congress on matters concerning overflight noise, and served two years in the NYS Governors office as a senior advisor assigned to the Governors Office of Regulatory Reform. He is an active commercial instrument rated multi-engine pilot and flight instructor, and holds a Bachelor of Science degree in Airport Management from Florida Institute of Technology and a Masters Degree in Public Administration from the Rockefeller College of the State University of New York. Russell B. Vachon, Senior Aviation Associate Mr. Vachon brings 4o years of transportation/aviation industry experience to this study. Prior to joining The Louis Berger Group, Mr. Vachon was the Director of Aviation for the New York State Department of Transportation where he managed various aviation programs to include: annual grants to 85 eligible airports sponsors totaling an average of $5.5M for planning and development which leveraged an average of $70M annually in FAA Airports Improvements Program funds, ranking NY among the top three states in federal funds administered nationally; 100% State funded grants to 38 airports for $10M; FAA-financed, $0.5M annual aviation system planning program; FAA 5010 inspections of 150 airports annually; specialized technical assistance to airports to address environmental, financial and development needs; the operation of Stewart International and Republican Airports involving the policy and decision-making oversight of 100 employees, coordination of programs with separate, politically appointed, advisory commissions, the administration of both an $8 million annual operating budget, completely underwritten with airport revenues, and a $10 million annual capital budget, as well as all lease negotiation policy decisions. He also represented New York State in national associations: the Airports Council International-North America serving as a member of the Government Affairs Committee, American Association of Airports Executives, The National Association of Aviations Officials, and the New York Airport Managers Association.
Marc C. Champigny, Management Associate Mr. Champignys experience includes financial, safety, security, operational, and planning services at several airports of varying size and function. Having worked as an Operations Coordinator at Morristown Municipal Airport and in the public sector for the New York State Department of Transportations Aviation Services Bureau, Mr. Champigny brings a comprehensive base of experience and a strong understanding of the airport operators requirements. As an Assistant Director, he has managed projects relating to airport management, financial feasibility, market comparables, business planning and strategy, rate analysis and modeling, master planning, and FAA 5010 safety inspections. As an active Private Pilot, Mr. Champigny also brings unique experience related to aircraft operations. Mr. Champigny holds a Bachelor of Science degree in Aviation Management from Embry-Riddle Aeronautical University and a Masters Business Administration from the College of Saint Rose.
2.0
STAKEHOLDER SURVEY
To review and evaluate the efficiency and effectiveness of LNAA and the Lehigh Valley International Airport, a 15-point questionnaire was deigned to facilitate dialogue and gather key information from Board of Governors members, Airport Management employees, and NonManagement Airport employees, Regional Executives, Stakeholders and Non-Airport employees. In conjunction with on-site interviews, the Study Team used online survey software to develop and electronically distribute, via email, a comprehensive survey to obtain opinions and perceptions of the Airport. Survey questions focused on the following areas: Survey participants level of understanding of the Airports organizational structure; The level of economic importance of the Airport to the local community and the region; The current state of Airport service and its ability to meet air traveler needs; The Airports relationship with stakeholders and the general public; The effectiveness of Airport Management; and The effectiveness of Airport Authority public outreach and communication initiatives. Throughout the survey development process, the Study Team worked closely with the Counties to ensure survey questions would generate responses that provide the necessary information needed to meet the Studys objective within the Studys scope of work. Typically, large survey invitation lists are associated with lower response rates, thus it was important for the Study Team to obtain the most focused and high-quality representatives to survey as possible. A complete list of proposed survey participants was provided by Lehigh and Northampton Counties. The list included a comprehensive cross-section of participants from Airport employees and Board members, to Stakeholders and Regional Executives. 2.1 Survey Results In order to obtain the most accurate responses in the opinion of the survey taker, the Study Team prefaced the survey with an introduction that assured the confidentiality of participant identity by explaining that survey results would be collected and presented to the Counties in aggregate form. A copy of the survey questions are provided as an Appendix within this report.
Lehigh & Northampton Counties February 6, 2009 Stakeholder Survey Page 2-1
The survey was opened and distributed via email on September 24, 2008 and was closed on October 31, 2008. Participants completed received were survey by the sent wasnt survey reminder emails bi-weekly if a
which 48 completed surveys were received, resulting in a 52% response rate. Metadata compiled by survey systems that use email invitations indicate that the average survey response is 32.5%. As mentioned, a function of the survey software allowed the Study Team to selectively follow up with non responders and improve the response rate. Despite the ambiguity of what response rates mean, the credibility of survey statistics are often linked to response rates. The demographic profile of survey respondents is shown on the following page in Figure 2.1, Results of Survey Question 1. Of the total responses, 56% indicated they were either a Board of Governors member or an Airport Employee, while 44% identified themselves as a Regional Executive, an Airport Stakeholder or a Non-Airport Employee.
In regards to Lehigh Valley International Airport, how would you classify yourself?
Regional Executive, Airport Stakeholder or Non-Airport Employee Non-Management Airport Employee 10%
44%
15%
31%
0%
20%
40%
60%
80%
100%
In order to evaluate the efficiency and effectiveness of the Lehigh Valley International Airport from an economic development and Airport management standpoint, the survey questions were designed to assist the Study Team in understanding the respondents general perception of the Airport. Following each question, the respondent was given the option to provide additional comments related to their response. Individual comments were analyzed and reviewed for consistency. Common characteristics were identified among comments, which allowed the Study Team to make observations of the perception and opinions of the current state of the Lehigh Valley International Airport. Question 2 The survey asked the respondents to provide their overall perception of the Airport. Answers to this question are provided in graphical form in Figure 2.2 on the following page. As the chart shows, 90% of all respondents feel that the Airport is a valuable economic asset. Only 10% either believe it is just another mode of transportation or did not have an opinion. None of the respondents believed that the Airport is an unnecessary asset.
Lehigh & Northampton Counties February 6, 2009 Stakeholder Survey Page 2-3
An unnecessary asset 0%
No opinion
2%
8%
90%
50%
60%
70%
80%
90%
To further analyze the survey responses, specific questions within the survey were cross-tabulated what the respondents answered in question 1, In regards to LVIA, how would you classify yourself? As you can see in the cross-tab analysis in Figure 2.3 on the following page, 100% of the Board of Governors respondents as well as management and non-management Airport employees believe that the Airport is a valuable economic asset while a smaller percentage, (76%) of regional executives, Airport stakeholders, or non-Airport employees believe this to be true. This demonstrates that generally the more removed one is from the development, operation, and/or daily management of the Airport; the more likely they are to view an airport as just another mode of transportation. Overall a small percentage of respondents (8%) perceive the Airport as just another mode of transportation, however, of more significance is the fact that none of the respondents view the Airport as an unnecessary asset. Those who view the Airport as just another mode of transportation identified themselves as Regional Executives, Airport Stakeholders, or Non-Airport Employees.
Lehigh & Northampton Counties February 6, 2009 Stakeholder Survey Page 2-4
76%
19%
5%
100%
100%
100%
60% No opinion
80%
100%
An unnecessary asset
Question 3 Generally, Airports provide economic growth to communities in the form of jobs, tourism and business links. Question 3 asked the respondent to rate the importance of aviation growth in the city/county from an economic perspective. As Figure 2.4 on the next page indicates, nearly 80% of all respondents believe that aviation growth within the local area is very important. Notably, the cross tabulation chart shown as Figure 2.5 that follows, indicates that 100% of Airport employees who took part in the survey believe that from an economic perspective, aviation growth is very important.
Not important 0%
Somewhat important
21%
Very important
79%
0%
10%
20%
30%
40%
50%
60%
70%
80%
From an economic perspective, how would you rate the importance of aviation growth in the city/county?
Regional Executive, Airport Stakeholder or Non-Airport Employee Non-Management Airport Employee Airport Management Employee Board of Governors Member 0% 20%
71%
29%
100%
100%
73%
27%
40%
60%
80%
100%
Very important
Somewhat important
Not important
The next two survey questions related to the Airports organizational/management structure and the effectiveness of the Airport Authority in satisfying its primary mission, which is, To develop and operate facilities to serve the short and long term needs of the travelling public, air cargo shippers, general aviation community and the economic development of Lehigh Valley. Question 4 Figure 2.6 below indicates that more than 54% of all survey respondents fully understand the Airports organizational /management structure. Figure 2.6- Response to Question 4
How well do you understand the airport organizational/management structure?
8%
Somewhat understand it
38%
I fully understand it
54%
0%
10%
20%
30%
40%
50%
60%
A cross tabulation of these results is shown in Figure 2.7. The chart indicates that the 8% of respondents that do not understand the organizational structure were either, Board of Governors members, Regional Executives, Airport Stakeholders, or Non-Management Airport Employees. This cross-tab analysis also demonstrated to the Study Team that the more removed the person is from Airport Management or the day-to-day operation of the Airport, the less likely they are to understand the organizational structure. 40% of Non-Management employees as well as 14% of Airport Management employees do not fully understand the Airports organizational structure.
Lehigh & Northampton Counties February 6, 2009 Stakeholder Survey Page 2-7
Regional Executive, Airport Stakeholder or Non-Airport Employee Non-Management Airport Employee Airport Management Employee Board of Governors Member 0%
33%
52%
14%
60%
40%
86%
14%
67%
27%
7%
20%
40%
60%
80%
100%
I fully understand it
Somewhat understand it
A review of the comments on Question 4 indicated that some respondents feel the management structure is overly complicated in the sense that there exist too many tiers of management. Respondents also stated that there may be opportunities for management to integrate more closely with Non-Management employees. Question 5 Survey question 5 addressed whether or not the Airport Authority is effective in satisfying its core mission. As the figure on the following page shows, over 42% of all respondents believe that the Authority is effective in satisfying the mission, while 10% believe that the Authority is ineffective in satisfying the mission.
The primary mission of the Airport Authority is to develop and operate facilities to serve the short and long term needs of the travelling public, air cargo shippers, general aviation community, and the economic devlopment of Lehigh Valley. How well do you feel the Authority satisfies this mission?
2%
10%
46%
42%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
The cross tabulation analysis shows that the 100% of individuals who believe that the Authority is ineffective in satisfying the mission are either, Regional Executives, Airport Stakeholders or NonAirport Employees. Two percent of the respondents said that they didnt have enough involvement or exposure allowing them to respond.
The primary mission of the Airport Authority is to develop and operate facilities to serve the short and long term needs of the travelling public, air cargo shippers, general aviation community, and the economic devlopment of Lehigh Valley. How well do you feel the Authority satisfies this mission?
Regional Executive Airport Stakeholder or Non-Airport Employee Non-Management Airport Employee Airport Management Employee Board of Governors Member 0%
14%
62%
24%
80%
20%
86%
14%
47%
47%
7%
20%
40%
60%
80%
100%
The Authority is effective in satisfying the mission The Authority is only somewhat effective in satisfying the mission The Authority is ineffective in satisfying the mission I do not have enough involvement or exposure allowing me to respond
The next few questions in the survey focused on passenger use of the Airport, the specific years that respondents used the Airport for air travel, their frequency of use, typical destination airports and the adequacy of the Airport in meeting their travel needs. Question 6 and 7 Of all respondents, over 90% have used the Airport for business or leisure travel over the last 5 years. Of all respondents who have used the Airport over the last 5 years, the following chart depicts a breakdown of the percentage of those who used the Airport in a specific year. The chart shows a gradual increase in travel from 2005 through 2007. Due to the survey closeout date of October 31, 2008, the 52% of respondents that indicated they travelled in 2008 does not include the months of November and December. Historic industry travel data has shown that due to the holidays of Thanksgiving and Christmas, the months of November and December tend to be busy travel months. Consequently, one can assume that the trend between 2005 and 2007 would continue through 2008 if the respondents considered all 12 calendar months.
Lehigh & Northampton Counties February 6, 2009 Stakeholder Survey Page 2-10
2004
68%
2005
64%
2006
73%
2007
80%
2008
52%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Question 8 Figure 2.11 on the following page depicts the frequency of travel among those respondents that have used Lehigh Valley for their air travel needs over the last five years. Nearly 70% of all respondents have used the Airport less than ten times and almost 15% of all respondents have used the Airport over 30 times. While we do not know the exact number of times those who have used the Airport less than 10, it can be said that the nearly 15% who have used the Airport more than thirty times in the last five years, use it an average of at least 6 times a year.
How often did you use the airport in the last five years?
More than 30
14%
10-30
18%
Less than 10
68%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Question 9 The survey requested that those respondents who have used the Airport in the last 5 years provide some typical destination airports. The most common destination airports provided by respondents included: Atlanta, GA Chicago, IL Charlotte, NC Cleveland, OH Columbus, OH Denver, CO Las Vegas, NV Los Angeles, CA Orlando, FL Pittsburgh, PA San Francisco, CA
Question 10 The next chart, Figure 2.12 depicts the responses on how well the Lehigh Valley International Airport meets air travelers needs. Thirty three percent of respondents indicated that the Airport meets all of their air travel needs well. Two percent of respondents (one individual) indicated that Lehigh Valley was not used for air travel needs.
As an airport user, how well does Lehigh Valley International Airport meet your air travel needs?
I do not use Lehigh Valley for my air travel needs
2%
Does not meet my needs very well Meets some of my needs but the airport needs improvement to satisfy them all Meets all my air travel needs very well
21%
44%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Comments provided in response to this question suggest that respondents feel that Philadelphia and Newark provide cheaper, more direct flights. However, there was consensus among travelers, noting satisfaction with the convenience provided at Lehigh Valley. Regarding the level of service, some indicated through comment that the level of service at Lehigh Valley exceeds that of Philadelphia and Newark. Question 11 Survey question 11 asked the opinion of the state of air service at Lehigh Valley since 2004. As shown in the results of the next question in Figure 2.13, in comparison to previous years, over 50% of respondents feel that since 2004, the state of air service has worsened. Twenty one percent feel that air service has improved while 26% of respondents believe that the state of air service at Lehigh Valley is unchanged in recent years.
Since the year 2004, how would you rate the state of the air service at Lehigh Valley?
52%
21%
26%
20%
30%
40%
50%
60%
70%
80%
90%
100%
When asked what may be some contributing factors to a reduction of the state of service at Lehigh Valley, common responses were. Too few airline options Higher ticket prices than Philadelphia or Newark Too few destination airports Poor economy/industry trends
The two final survey questions addressed the issue of communication and the relationship between the Airport Authority and Airport Stakeholders. First, whether or not they believe that the Authority has established effective communications with the business community and the general public in a manner that is proactive and one which shows dedication to serving the publics interest. Secondly, the respondents were asked whether they believed the relationship between the Authority and Stakeholders is positive enough as to show dedication in promoting good working relationships.
Question 12 As shown in Figure 2.14, thirty-eight percent of respondents believe that the relationships between the Airport Authority and stakeholders are in fact positive and promote good working relationships. Forty-two percent feel that the relationships are somewhat positive but believe that more effort is needed in this area to more effectively promote good working relationships. Twenty percent believe that the relationships between the Authority and Airport Stakeholders are negative. Figure 2.14- Response to Question 12
In your opinion, are the relationships between the Airport Authority and Stakeholders positive so as to promote good working relationships?
42%
No
Yes
38%
0%
20%
40%
60%
80%
100%
In Figure 2.15, a cross tabulation of respondents, shows that 89% of those who believe the relationships are not positive have classified themselves as either Airport Stakeholders, or NonAirport Employees or Regional Executives. Figure 2.15- Cross Tab Analysis of Question 12
In your opinion, are the working relationships between the Airport Authority and Stakeholders positive so as to promote good working relationships?
Regional Executive, Airport Stakeholder or Non-Airport Employee Non-Management Airport Employee Airport Management Employee Board of Governors Member 0%
Yes No
3 (18%)
8 (89%)
10 (53%)
3 (18%)
2 (11%)
6 (35%)
5 (29%)
1 (11%)
7 (37%)
20%
40%
60%
80%
100%
Question 13 This question asked: What do you like/dislike about the current state of communications between the Community and/or Region and the Airport Authority? Some of the comments received indicated the perception that the Airport Authority has very little communication with the community or the region, while others highlighted the Authoritys effort to communicate with the community through various news publications, press releases, and public meetings, as well as an airport website and 24 hour call center available to the public. Overall, there were varying opinions that provided insight into the effectiveness of communication between the Airport Authority and the community or the region. This information will be utilized as a context in the organizational analysis.
Question 14 Regarding communications and the Authoritys establishment of effective communications that are proactive and show dedication to serving the publics interests, 40% of all respondents believe that the Authority has established communications that show dedication to the public. Combined, almost 60% believe that the Authority has been only somewhat effective in establishing such communication or that the Authority has not been effective in doing so. Figure 2.16- Response to Question 14
In your opinion has the Airport Authority established effective communications with the business community/general public in a manner that is proactive and shows dedication to serving the public's interest?
29%
No
31%
Yes
40%
0%
20%
40%
60%
80%
100%
Of the 30% of respondents who believe that the Authority has not been effective in establishing effective communication, 80% of those respondents, as shown in Figure 2.17 on the next page, are either Regional Executives, Stakeholders, or Non-Airport Employees. Of those who believe that the Authority has established effective communication, the majority are either Airport Management Employees or Non-Management Airport Employees.
In your opinion has the Airport Authority established effective communications with the business community/general public in a manner that is proactive and shows dedication to serving the public's interest?
5 (26%)
12 (80%)
4 (29%)
3 (16%)
1 (7% )
1 (7%)
6 (32%)
1 (7%)
5 (26%)
2 (13%)
8 (57%)
0%
20%
40%
60%
80%
100%
Yes
No
Question 15 The last question of the survey asked: Given your exposure to the Airport, what improvements are needed at the Airport to improve its efficiency and effectiveness? In general, comments to improve air service included: the need for more destination airports, competitive pricing, and an increase in the choice of airlines. A general suggestion to improve management and organization included possibly reducing the levels of management which may encourage better communication between management, stakeholders, airport employees, and the travelling public.
2.2 Survey Summary The Airport survey was sent to a list of 92 possible respondents, of which 48 completed surveys were received for a 52% response rate. Ninety percent of respondents believe that the Airport serves as a valuable economic asset. More importantly, 80% of all respondents believe that aviation growth in Lehigh Valley is very important while the remaining 20% believe aviation growth is somewhat important to the area. A review of overall survey comments shows consistency in sentiment. Overall, the improvements needed at the Airport to improve its efficiency and effectiveness include the following: More airlines; Cheaper airfare; More destination airports; More non-stop flights and; Improved communication and public outreach initiatives.
To supplement the survey results, Study Team members met with various stakeholders to conduct interviews. The interviewee was asked to describe their background and their familiarity with the reporting structure at LVIA. In addition, they were also asked to provide their opinion on the general efficiency and effectiveness of the Airport and their Department, challenges faced by the Airport and suggestions for Airport improvement. The Study Team has thoroughly assessed all survey and interview findings and has considered them within the organizational evaluation, findings and recommendations section of this report.
3.0
In an effort to better correlate current practices relating to airport management with the Lehigh Northampton Airport Authority (LNAA), an analysis was performed comparing several key aspects of LNAA and Lehigh Valley International Airport (LVIA) with similar airports throughout the Region and the United States. The following sections: (1) describe the approach employed to determine the list of comparable airports; (2) provide an overview of the selected comparable airports in the context of an organizational, management, and operational framework; (3) compare human resources data and practices; and (4) provide an overview of comparable airport trends. 3.1 Comparable Airports Data Collection, Screening and Selection
The screening process to determine comparable airports began with collecting passenger boarding data, also called enplanements, from the Federal Aviation Administration (FAA). Data from 2006 was used as it was the last complete year for which this data set was available at the time this study was commenced. The data set was imported into Excel spreadsheet format and included information for all domestic airports that had scheduled air carrier service. This data included: Rank (based on enplanements); City and State; Three-letter airport code (e.g. ABE); Airport name; Service level; FAA hub classification; 2006 enplanements; 2005 enplanements; and Percentage change in enplanements between 2005 and 2006
This data was then organized first by each airports 2006 enplanements (passenger boardings), then by service level; and lastly by hub type to remove from the list airports that are not comparable to LVIA. Upon removing the identified non-comparable airports from the data, only airports meeting the following criteria from the remaining data were kept to consider: Proximity to a large hub airports (e.g. Philadelphia International Airport); Serves as a regional airport; Operates a system of airports; and Governance/Management structure (Authority, Board, County, Municipal, etc.).
The data set remaining for further analysis consisted of sixteen (16) airports chosen by the Study Team that met some or all of the above criteria. An airport was not required to meet all criteria, but rather provide examples of different governance structures from similar situated airports. For example, the Study Team considered other airports in Pennsylvania that have an Authority and were formed under the same municipal authorities act as LNAA; others were considered as a result of their County governance model; and others were looked at because of their Authority type governance structure formed outside of Pennsylvania, both large and small scale. The five (5) comparable airports chosen to be included in this analysis are a mix of the criteria discussed above, providing the Study Team with a cross representation of comparable airport information. These airports are identified in Table 3.1. Detailed information obtained from these airports is presented later in this Section of the report.
U.S. Rank
FAA Loc. ID
City
State
Airport Name
Hub Type
CY 06 Enplanements
CY 05 Enplanements
% Change
Governance Structure
Dist. to Large Hub (mi) 72 Authority 78 73 33 62 110 97 Authority Yes / 2 County Authority Quasi-State Yes / 2 No / 0 Yes / 6 Yes / 3 System of Airports/#
134 Newark M S M 2,588,992 2,846,002 -9.03% Boston Logan Philadelphia S 577,559 647,468 -10.80% Baltimore Washington Lehigh Valley Newark JF Kennedy N 156,638 199,741 -21.58% LaGuardia Albany 915,135 789,795 15.87% Orlando 3,630,098 3,602,536 16.76% Chicago OHare
ABE
Allentown
PA
49
MKE
Milwaukee
WI
92
SFB
Sanford
FL
60
PVD
Providence
RI
General Mitchell International Orlando Sanford International Theodore Francis Green Airport
108
MDT
Harrisburg
PA
Harrisburg International
92 72 79 Authority 69 98 Yes / 6
Source: Federal Aviation Administration and Yahoo Maps. Note: Hub Type is FAAs Airport Classification: M = Medium Hub; S = Small Hub; N = Non-Hub.
194
SWF
Newburg
NY
Stewart International
3.2
When making comparisons between airports, it is most useful to balance quantitative metrics, those things capable of being expressed numerically, and qualitative metrics, those things described in terms of quality or character. In an airport environment there are both numerous quantitative and qualitative metrics that can be considered. For this study, a framework was developed for use when contacting representatives of the comparable airports that included questions related to both qualitative and quantitative metrics in three key contexts: Organizational; Management; and Operational.
A copy of this framework is provided in the Appendix. Contact information for key personnel including the Airport Directors and Human Resources Directors from each comparable airport was compiled and is also found in the Appendix. Initial and follow-up telephone interviews with each key person identified were conducted between August 15 and December 1, 2008. All five airports that were contacted were willing to participate and included the following airports: General Mitchell International Airport (Milwaukee, WI); Orlando Sanford Airport (Sanford, FL); Theodore Francis Green Airport (Providence, RI); Harrisburg International Airport (Harrisburg, PA); and Stewart International Airport (Newburgh, NY).
The information garnered from the interviews is presented below within the three contexts of the framework identified previously (organizational, management, and operational). Organizational charts provided by each of the airports contacted are found at the end of this section.
3.2.1
Organizational Context
The Organizational Context is comprised of those aspects of the airport which directly relate to organizational structure and size, governing body, financing, etc.
Milwaukee is owned and operated by Milwaukee County, with an approximate staff of 200 personnel. Financing for CIP projects comes from a mix of user fees and AIP entitlement funds. The Airport is overseen by a 19-member County Board who are elected officials from the community at-large. The Board is responsible for setting policy and budget approval. The Airport Director is an at-will employee of the County who is hired by the Director of Public Works, who then must get approval from the County Executive and then the County Board. The Airport Director must go through a performance review and approval from the County Board every 4 years.
Providence is owned and operated by the Rhode Island Airport Corporation (RIAC), a quasiindependent agency, and is overseen by an Airport Board. RIAC employs 185 full and part time employees. Financing is through AIP and user fees. The Airport Board consists of seven (7) members and is charged with setting policy, budget approval, and the hiring of the CEO. One Board member is appointed by the Mayor of Warwick, and six by the Governor of Rhode Island. The CEO is hired by the Board and is a contract employee of the Board.
system of airports serves the needs of southern New York, southwestern Connecticut and northern New Jersey (New York Metropolitan Area). Financing for Stewart comes from a mix of AIP, PFC, and user fees. The Airport has a staff of approximately 54 full time staff, which is a mix of PANYNJ staff, private management and consultants. The PANYNJ Board of Commissioners consists of 12 members. Both New York and New Jersey appoint 6 members, which are subject to state Senate approval, with members serving 6year overlapping terms. The Commissioners serve as public officials, are responsible for setting policy and budget approval for all of the transportation services that are covered by the PANYNJ. The General Manager is a direct at-will employee of the PANYNJ. A summary table of the comparable airports organizational comparison can be found in Table 3.2 below and the airports organizational charts can be found on the following pages.
Single or Multi Airport System Number Of Full Time Staff Governing Body Number Of Governing Officials
MultiAirport
MultiAirport
Single Airport
MultiAirport
129
200
55
185
120
Airport Authority
County Board
Airport Authority
Airport Board
Airport Board
19
19
15
organization
Official Selection
5 Years
5 Years
4 Years
5 Years
5 Years
No
No
No
No
Primary Financing
Director of Administration
Airport Planner
Superintendent of Maintenance
Systems Director
Systems Tech.
Properties Manager
Clerk
Parking Attendants
Accounting Clerk
Accounting Mgr.
Desk Reps
QC LineOps Mgr.
Line Techs
Executive Director
(Non-Airport)
(Non-Airport)
Administration
2 Airport Interns
Noise Abatement
. (8)
Accounting Contracts
Secretary
Properties Mngr
Properties Spc
Operations Mngr
Environmental Mngr
Maintenance Mngr
Admin. Asst.
Properties
Human Resources
Office Administration
Building Maintenance
Manager Audit
VP Public Affairs & Air Service Marketing Receptionist Admin Asst. TSS Director Human Resources
Sr Admin Asst.
Community Relations
TSS
TSS II
VP Commercial Programs
Corp. Controller
Proc. Specialist
Senior IT Analyst
IT Analyst
Finance Mgr.
IT Analyst
Accounting
Accounting
IT Analyst
Accounting
Accounting
Grants/Contracts
Project Acct
Executive Director
Accounting Manager
H.R. Manager
H.R. Assistant
Property Manager
AR/AP Specialist
Purchasing Agent
Receptionist
Techs
General Manager
Resident Engineer
Program Manager
Project Managers
3.2.2
Management Context
The Management Context is comprised of those aspects of the airport which directly relate to airport management issues such as executive management spending authority, minimum standards, procurement, capital improvement program, capital projects management, and overall budget. For consistency in reporting, the Study Team utilized the Federal Aviation Administrations (FAA) Compliance Activity Tracking System (CATS), Report 127 for each comparable airport. None of the comparable airports utilized participated in the most recent benchmarking survey completed by the Airports Council International North America.
existing facility, with a redesign occurring in 1998. There are no spending authority limitations; however expenditures must fall within the approved budget. Capital improvements are managed by a combination of PANYNJ and consultant staff. As reported by the FAA, Stewart had $42.7 million in unrestricted financial assets in 2006 (2007 was not available as a result of the transition of the Airport from a private firm to the PANYNJ) with operating expenses of $6.2 million equating to an expense ratio of approximately $39.43 per enplaned passenger. The Airports Rate Base to Airlines was not available. A summary table of the unrestricted financial assets and the operating expense comparisons can be found below in Table 3.3. A summary table of the comparable airports management comparison can be found in Table 3.4. Table 3.3 Comparable Airports Financial Comparison
Airport Unrestricted Financial Assets ($ Million) $ 8.3 2.1 110.9 41.5 3.8 42.7 Annual Enplanements (rounded) 427,000 643,000 3,751,000 2,500,000 986,000 455,000 Operating Expense ($ Million) Total Expense Per Enplaned Passenger $ 36.401 21.75 12.21 11.52 7.30 39.43 Total Expense Per Employee $ 120,155 116,667 231,000 155,675 130,909 114,814 Airline Rate Base Per Enplaned Passenger $ 14.15 14.65 4.61 N/A N/A N/A
2007
Lehigh Valley Harrisburg Milwaukee Providence Sanford Stewart5
Notes: 1. 2. 3.
4. 5. Sources: 1. Airline Rate Base information provided directly by each airport. 2. Federal Aviation Administration AAS-400 Compliance Activity Tracking System (CATS), Report 127. 3. FAA Calendar Year Enplanements Compiled from Air Carrier Activity Information System (ACAIS).
LVIAs Total Expense per enplaned passenger is higher as a result of providing various revenue generating services that are not provided by the comparable airports with the exception of Stewart. N/A = Not available. None of the comparable airports for this study participated in the most recent Airports Council International North America (ACI-NA) Benchmarking Survey. Expense includes all operating expenses. It does not include non-operating expenses such as interest expense, etc. SWF is 2006 data. 2007 was not available.
Airports
Lehigh Valley International General Mitchell International Orlando Sanford International Harrisburg International Stewart International Yes 30 Day Average Cycle As Approved by the Budget Only Staff with Consultants As Needed Built: 1970 New Terminal: 1997 Redesign: 1998 T.F. Green (Providence) Yes
Minimum Standards
Yes
Yes
Yes
Procurement Cycle
Varies
Spending Authority
Board Approval Over $15,000 Staff with Consultants As Needed Built: 1970s Remodeled: 1996
As Approved by the Budget Only Staff with Consultants As Needed Built: 1955 Expanded: 1984, 1990, & 2007
Varies
Board Approval Over $50,000 Staff with Consultants As Needed Built: 1961 Remodeled: 1996 Improvemen ts: 2008
Executive Director: $50,000 Deputy Directors: $5,000 $10,000 Staff with Consultants As Needed Built: 1970 New Terminal: 2004
management
CIP Management
Staff with Consultants As Needed Built: 1940 Remodeled: 2001 New Garage: 2007
Terminal Facilities
3.2.3
Operational Context
The Operational Context is comprised of those aspects of the airport which relate directly to the Fixed Base Operations (FBO) and airline operations, airside/landside airport operations, contract services, and FAA services, among others.
Airports
Lehigh Valley International General Mitchell International Orlando Sanford International Harrisburg International Stewart International 2 Private Ownership Full Service 4 5 Ticket Counters & Bag Offices: Exclusive All Other Areas: Common Contract 24 Hour Service Daily Operational Needs T.F. Green (Providence) 2 Private Ownership Full Service 10 24 Ticket Counters & Bag Offices: Exclusive All Other Areas: Common FAA Limited Hours: 6 am 11 pm
No. of FBOs FBO Ownership Services Provided No. of Airlines No. of Destinations
1 Private Ownership Full Service 11 47 Ticket Counters & Bag Offices: Exclusive All Other Areas: Common FAA
1 Private Ownership Full Service 7 13 Ticket Counters & Bag Offices: Exclusive All Other Areas: Common FAA
operational
ATC Staffing
FAA
ATC Hours
24 Hour Service
24 Hour Service
24 Hour Service MDT: Parking , Janitorial, Snow Removal CXY: Daily Operational Needs
Parking
None
(1) Daily Operational Needs: Includes operations, parking, janitorial, & maintenance (2) JVU: Queen City Airport N43: Braden Airpark CXY: Capital City Airport
3.3
Human Resources
This section reviews the general conditions of employment of the Lehigh Northampton Airport Authority (LNAA). Research of the current policies and procedures of LNAA was conducted and obtained through: Telephone calls and exchange of emails to the Deputy Director of Administration at LNAA provided much of the information. Reviews of LNAA printed matter including the LNAA Policies and Procedures for NonBargaining Unit Employees as well as the LNAA Policies and Procedures for Union Employees and the various bargaining agreements currently in place. Additionally, the Airports website was also available for review. Assessment of LNAAs Policies and Procedures Manual for Non Bargaining Employees and other related policies which included employment, hours and compensation, employee benefits, safety, conduct and discipline, employee relations and various pertinent appendices of the manual. Examination of LNAAs organization chart, employee salary schedules, employment application, job vacancy notices, and benefit packages offered to employees. The specific methodology of this survey will be discussed under Section 3.3.2 Compensation and Benefits Survey. Unless otherwise stated, the analysis and recommendations within this report are based upon information obtained during the months of October and November 2008. The assessment was to determine (a) if the human resources practices at LNAA meet generally accepted practices, and (b) if these practices are comparable to those of airports of similar size.
3.3.1
The focus of the assessment was to determine: If the LNAAs human resources infrastructure is adequate, If the employment practices meet generally accepted human resources practices, and If these practices are comparable to the practices of airports of similar size.
Acceptable policies are in place to handle the selection, management, discipline and termination of employees. Currently there is no dedicated human resource staff to directly oversee the human resources operation at LNAA. The Deputy Executive Director is the chief negotiator for union contracts and has overall responsibility for the Human Resource function and there is a Director of Administration reporting to him, as well as a HR and Accounting generalist who provide staff support. In the event of an increase in the number of Airport employees, a more formal human resources structure may need to be established to meet the needs of the Airport employees. A review of all documents relating to LNAA employment that was provided by staff was completed. The majority of these policies and procedures meet generally acceptable standards. A detailed analysis of the publication, Lehigh-Northampton Airport Authority Policies & Procedures Manual reveals a few items that may need to be addressed in order to comply with acceptable practices, and to reduce potential risk. While these recommended revisions are minor in scope, they are included below for consideration: The Policy Manual Purpose (Section 1.1) should include the following statements: o This Policy and Procedure manual supersedes any Policy and Procedure manuals previously issued and thus any manual previously issued is hereby revoked.
A page should be included which documents an acknowledgement of receipt of the manual by the new employee. The signed copy can be filed in an appropriate file. The signed document will also indicate understanding of at-will employment.
The Manual should indicate an effective date. This would enable the management team an opportunity to keep track of changes and revisions.
Although there is mention of a Personnel Manager throughout the manual, there is no such position listed on staff. Management staff may wish to use alternative titles for consistency purposes.
There are different dates of enrollment for employee benefits. Given the little or no turnover experienced at the Airport in recent years, this may not create any concern. However, management staff should consider enrolling all new employees in the benefit plans (especially health and welfare) using the same waiting period, i.e., first of the month following employment or other alternative.
Similarly, in Section 4.22, mention is made of a Severance plan which employees may join after one year of service. There is no description in the Benefit section for this particular plan.
Discussions with Airport staff confirmed that there are no difficulties with recruitment and retention of Airport employees. The overall turnover rate for full-time employees at LNAA was reportedly 2% in 2006. Discussions with the staff at LNAA indicated that they did not track turnover in 2007 and 2008 because it is so low. This initial information suggests that there appears to be little difficulty with LNAA recruiting and retaining employees. A more comprehensive industry comparison utilizing information from the airports in the survey will be discussed in the next section.
3.3.2
The comparable airports Human Resources departments were contacted to complete a Compensation and Benefits Survey. Surveys were sent via e-mail and were followed up with telephone calls and e-mails. A copy of the survey instrument is included in the Appendix of this report. All five airports identified for this study completed the survey instrument. Key Survey Findings The comparison survey with the five responding airports show that the airports ranged in size from 54 to 221 employees, with the average number of employees equal to the number of employees for LNAA (LNAAs 129 positions compared to the survey sample average of 129 employees). The turnover rate for LNAA was appreciably below others and, in fact has not been tracked over the past two years. The average fringe benefit rate of the survey respondents was approximately 25.65%, substantially lower than the LNAA reported fringe rate of 37%. Further review of the specific fringe benefits offered by the airports indicated that LNAAs practice of employer pay all for employee benefits to be the principal reason for the variance. Other benefits, such as retirement, leave, and miscellaneous benefits were generally comparable to benefits offered by the other responding airports. LNAA reported lower than average salary increase than any of the other responding airports in the survey. LNAAs average increase (non-union staff) was 2.30% compared to an average of 3.45% for three respondents. The wage comparison section of the survey suggests that LNAAs salary ranges are competitive since turnover has been nil and the spread between range minimums and maximums are within the generally accepted guidelines of 80% of midpoint as minimum and 120% of midpoint as maximum.
3.3.3
Survey Results
Number of Employees At the time of the survey, LNAA had 129 employees. Based on the number of employees on staff, LNAA ranked the fourth smallest of the five airports included in the survey (Figure 3.1). Data obtained on Orlando Sanford was obtained through their website. Figure 3.1 Number of Employees
NUMBER OF EMPLOYEES
AVERAGE Milwaukee AIRPORT Providence Lehigh Valley Harrisburg Sanford Stewart 0 50 54 100 150 200 250 77 109 129 184 129 221
Annual Fringe Benefit Cost Fringe Benefits are non-payroll benefits that employers provide their employees. Not only do fringe benefits include health insurance, but also programs to provide financial security and to improve quality of life. An employers Fringe Benefit Rate is normally calculated by adding the annual costs of all of benefits and presenting that as a percentage rate compared to overall payroll costs. For example, a Fringe Benefit Rate of 25% could be interpreted to mean that for every one hundred dollars ($100) paid to an employee through payroll, the company pays an additional twenty-five dollars ($25) in fringe benefits. Five of the six participating airports responded to the question regarding their Fringe Benefit Rate. Information regarding General Mitchell International Airport was obtained from the Milwaukee County website (staff at this airport is employed by Milwaukee County). Of the five (including
Lehigh & Northampton Counties February 6, 2009 Comparable Airports Analysis Page 3-29
LNAA) their average rate was 25.65%. LNAAs rate was significantly higher, at 37% as reflected in Figure 3.2. Figure 3.2 Annual Fringe Benefit Cost
0.00%
Turnover Rates The annual turnover rate of an organization reflects the number of employee separations divided by the average number of employees throughout the year. LNAAs annual turnover rate for 2006 was estimated to be 2%. According to the Deputy Executive Director, turnover was so low, that it has not been tracked in recent years. Turnover for the year 2007 at three other airports ranged from 3.4% (Providence) and 5.0% (Harrisburg) to 18.75% (Sanford). Pay Increases Respondents were asked if pay increases to their employees were based on merit (performance), based solely on cost of living adjustments, or based on a combination of performance and cost of living. LNAA employee pay increases are based on a combination of merit and cost of living increases. One of the airports (Sanford) reported that their pay increases were based solely on cost of living adjustments. The other airports reported that increases were based on a combination of both.
Lehigh & Northampton Counties February 6, 2009 Comparable Airports Analysis Page 3-30
Figure 3.3 reflects the pay practices of the airports and provides the average annual increase for each airport in 2007. LNAA reported an average pay increase of 2.3%, slightly less than the average of all other respondents. Figure 3.3 Pay Increases
3.3.4
Benefits
Health Care Benefits The Health Care portion of this section asked specific questions regarding the types of health care insurance offered and the amount of premium shared by the employer and the employee for four tiers of coverage (single, employee + child, employee + spouse, full family coverage). As not all respondents answered these questions in there entirety, only the employer cost of single coverage and the number of plans offered could be adequately compared. Figure 3.4 shows the types of health care plans offered by the participating airports. LNAA offers a PPO plan, with a low deductible.
PPO 80/20
PPO 90/10
HMO
POS 70/30
1 1 1 1 1 1
1 1 2 1 1
The employer share of single coverage premium is shown in Figure 3.5. Three of the airports report that they provide and pay for 100% of single coverage for their employees. LNAA is the only airport that pays 100% of all benefits regardless of family/employee coverage levels. Figure 3.5 Employer Portion of Single Health Insurance Coverage
3.3.5
Figure 3.6 compares the other types of insurance benefits offered by the airports in addition to the Health Care benefits. LNAA does not offer short-term disability as compared with four of the five respondents. Figure 3.6 Other Insurance Benefits Offered
Type Dental Insurance Life Insurance Optional Life Short Term Dis. Long Term Dis. Vision Insurance X X X Lehigh Valley X X X Milwaukee X X X X Sanford X X X X X X Providence X X X X X Harrisburg X X X X X X Stewart X X X X X X
Leave Benefits LNAA offers its employees paid leave through vacation, sick leave, personal time off, holidays, bereavement and other standard time off programs. In comparison to the other airports that reported this data, LNAA is in line with a standardized form of vacation practices. Three of the five airports provide some form of personal time off program of 3 days off (exceptions: Providence and Sanford). Figure 3.7 Leave Benefits
Airport Lehigh Valley Milwaukee Sanford Providence Harrisburg Stewart Paid Hours 1<5 yrs/service 80 80 80 80 56 120 Paid Hours 5<10 yrs/service 120 120 80 120 80 152 Paid Hours 10<15 yrs/service 160 160 120 144 120 216 Paid Hours More than 15 yrs/service 172 200 120 224 208 216
Other paid leave benefits provided by LNAA are comparable to the benefits of the other survey respondents. In addition, LNAA provides a parental leave to eligible employees which provide a paid benefit of five days. Figure 3.8 Other Paid Leave Benefits
Type Bereavement Holidays Jury Duty Military Lehigh Valley 4 days 10 Yes Yes Milwaukee 3 days 9 As needed Yes Sanford 1-5 days 11 As needed 17 Providence 3 days 10 As needed 10 Harrisburg 3 days 9 As needed 10 Stewart 3 days 11 As needed As needed
Financial/Retirement Benefits LNAA offers a 457 Deferred Compensation plan and a Defined Benefit Pension plan (with vesting after 5 years). In addition some type of Severance plan is available to employees after a oneyear waiting period is met. The comparison of LNAA with the other airports surveyed is shown in Figure 3.9 below. Figure 3.9 Financial/Retirement Benefits
Type 401(k)no match 401(k)with match Pension Plan Section 125/FSAs Incentive Stock Options 457 Plan Profit Sharing State Retirement System X X X X (TRANSFERS) X X X X X X X X X X X Lehigh Valley Milwaukee X 414(h) X X X Sanford Providence Harrisburg Stewart
Other Miscellaneous Benefits Other Miscellaneous Benefits provided by the airports in the survey are presented in Figure 3.10. Figure 3.10 Miscellaneous Benefits
Type Tuition Assistance Career Counseling Matching Charitable Contributions Gym Membership Food Services/ subsidized cafeteria Legal Assistance Free/ Discounted Uniforms Milestone rewards (yrs of service, etc.) Discounted event tickets Employee Assistance Plan Parking Allowance / free parking Smoking Cessation X Lehigh Valley X Milwaukee Sanford X Providence X Harrisburg X Stewart X
X X X X X
3.3.6
Compensation
Based on the ability to compare across organizations that have various definitions and duties, the following seventeen positions were selected to be compared in the Compensation section in the survey. Figure 3.11 shows the results of this survey.
As indicated in Figure 3.11, midpoint salary information was utilized for Lehigh Valley and Stewart. Since specific salary was not available at the time of this study for many positions, data was provided as a range, from which the midpoint salary data shown was calculated. For LNAA, salaries of union employees (ARFF/Police/Custodial) were derived from the rates given in the union agreements. The salary for the Director of Airports position was taken from LNAA Board meeting information.
In addition, based upon a review the non-union salary ranges currently in place at LNAA, it appears that the salary program is in a competitive position as compared to the other airports that participated in this survey. Collective Bargaining Structure(s) As indicated by Figure 3.12, four the five reporting airports are located in states having high union representation. The exception to this is SFB, which is in the Southeast region. The data indicates that non-union employees enjoy the same level of salaries and benefits provided to those of the various unions. This is especially true at LNAA/ABE where 37% of the staff is covered by three collective bargaining agreements and the remaining 63% of the non-represented employees is provided the same benefit structure. Figure 3.12 Collective Bargaining Structures
AIRPORT Lehigh Valley Milwaukee Sanford Providence Harrisburg Stewart AVERAGE NONUNION % 63% 19% 100% 22% 90% N/A 41% UNIONIZED% 37% 81% 0% 78% 10% N/A 59% TOTAL STAFF 129 221 77 184 109 54 122
3.3.7
Comparison to Counties
After completion of the comparable airports analysis, the Study Team felt that an examination of the benefits offered by LNAA compared to those benefits that are offered to Lehigh County employees would provide a local perspective to the study. Figure 3.13 below compares the benefits offered by both entities in 9 areas.
Figure 3.13 Benefits Comparison of LNAA to Lehigh County Entity LNAA Medical Insurance Dental Insurance Prescription Vision Coverage Retirement Deferred Compensation Life Insurance Short Term Disability Long Term Disability 3.4 Summary 100% of Premium Paid by LNAA 100% Paid By LNAA 100 % Paid by LNAA 100% Paid by LNAA Yes Yes Yes No Yes Lehigh County Single - $15/Payroll by Employee Emp/Child - $33.73/Payroll by Employee Emp/Spouse - $35.73/Payroll by Employee Family - $55.82/Payroll by Employee Single - $2.21/Payroll by Employee Emp/Child - $12.71/Payroll by Employee Emp/Spouse - $12.71/Payroll by Employee Family - $24.32/Payroll by Employee $18.97/Payroll by Employee Single - $.30/Payroll by Employee Family - $4.29/Payroll by Employee No Data No Data No Data No Data No Data
While there are various items identified by the Study Team that can improve the efficiency and effectiveness of LNAA, overall the facility compares favorably to the airports chosen for this Study. The information presented in this Section will be utilized throughout the remaining analyses completed as part of this effort and be incorporated into the overall Findings and Recommendations found in Section 6.
Benefit Type
4.0
As part of this Airport Management Study, a task was developed to assess air service development activities at LVIA. By way of the collection and synthesis of various data, an evaluation was performed of the overall efficiency and effectiveness of the Airports air service development approach. Besides an in-depth interview with the Authoritys Executive Director and the Director of Business Development, the following air service related documents were obtained directly from LVIA: Plane Talk newsletter for Fall 2008 LVIA incentive program 2009 budget worksheet for the LVIA Business Development Department Flight guide for July September 2008 Report from mall kiosk for 8/16/08 9/11/08 LVIA Air Service Assessment (March 2008) Lehigh Northampton Airport Authority New Board Member Orientation 2008 Resolution Establishing Air Transportation Company Rates and Charges and Operating Requirements at Lehigh Valley International Airport Marketing and Business Development 2007 2008: community outreach and business opportunities Airport monthly traffic reports: December 2007 May 2008 Airline communication status report for 2008 Jangle Media recommendation for Allegiant Air service to Fort Lauderdale, Florida Air service presentations: o American Eagle at company headquarters (June 2007) o American Eagle at Network 2008 (March 2008) o AirTran at JumpStart 2008 (June 2008) o JetBlue at JumpStart 2008 (June 2008)
Due to the sensitive nature of air service development, these data and information will not be published in this document, although they will be referred to for purposes of overall program evaluation. 4.1 Analysis of Interview with LVIA
As a member of the Study Team, TranSystems Corp. conducted an interview with the LNAA Executive Director and LVIAs Director of Business Development (The Director) on October 29, 2008, in the Authoritys conference room. The interview covered budgets, air service and marketing reporting structure, carrier meetings, carrier correspondence, air service consultant use, air service conference attendance, relationships with local organizations and corporations, the Small Community Air Service Development Program, incentive programs, and advertising. The following provides a summary of the information discussed in each of these categories.
Budgets