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Evaluating and Understanding the Organization 45
section of the worksheet are particularly significant as they will be critical inputs to the strate-
gic planning process.
If relatively few individuals on the planning team have worked at the organization
for an extensive length of time, consider inviting long-term/tenured staff or former
employees (former airport managers, and so forth) to participate in the historical
review process.
If a common strategic plan is being developed for a multi-airport system, Worksheet 4.01
should be completed for each airport that the organization oversees.
To conduct a historical review of an organization, complete Worksheet 4.01,
"Documenting Key Past Events and Historical Trends."
4.2 Reviewing Historical Performance Statistics
Members of the planning team should supplement the historical events analysis with a review
of historical performance statistics. The results of the online survey indicated that many airport
operators (46 percent of survey respondents) currently sort, review, and analyze historical perfor-
mance data. Of these, 88 percent use past performance data to project future trends. Historical
trend analysis was also cited by survey respondents as their top tool (out of eight options) for assess-
ing future risks/uncertainties.
While any pertinent statistic can be reviewed using the framework set forth in Worksheet 4.02,
"Analyzing Historical Performance Statistics," the most commonly reviewed statistics relate to
four general categories: operational, financial, market share/market presence, and other. The
main sample statistics as well as "additional" sample statistics are listed for each category below:
· Operational sample statistics include, but are not limited to, the following:
Aircraft movements for different types of traffic (domestic, international, general aviation,
military, and so forth)
Enplaned passengers for airports with commercial service, categorized as domestic, inter-
national, and total, as well as connecting versus origin and departure passengers
Cargo volume (in tons or pounds)
Based aircraft
Jet fuel and Avgas sales (in gallons)
· Additional operational sample statistics are the following:
Landed weight for different types of traffic (passenger airline, all-cargo airline)
Enplaned passengers per departure
Enplaned passengers per gate
U.S. Customs and Border Protection arrival clearances
· Financial sample statistics include, but are not limited to, the following:
Cash flow from operating activities
Operating revenue/operating expense ratio
Operating margin
Total operating revenue per enplaned passenger
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46 Strategic Planning in the Airport Industry
Operating expense per enplaned passenger
Airline cost per enplaned passenger
Non-aeronautical revenue as a percentage of operating revenue
Debt service coverage ratio
Bond ratings
· Additional financial sample statistics are the following:
Debt capacity
Airline revenue per enplaned passenger
Cargo revenue per cargo operation
Concession, parking, and rental car revenue per enplaned passenger and by facility/unit.
Total general aviation/FBO revenue (for airports that are not general aviation)
Landing fee (per 1,000 pound units of landed weight) for signatory and nonsignatory pas-
senger airlines and signatory all-cargo airlines
Capital contributions such as passenger facility charge [PFC] revenue, government grants,
and so forth (reviewing government grant statistics is particularly important for general avi-
ation airports as they are typically dependent on government grants to fund most of their
capital improvements)
Operating cost per square foot of terminal space
· Market share/market presence sample statistics include, but are not limited to, the following:
Airline market shares based on enplaned passengers
Airline market shares based on cargo weight
FBO market share
Number of nonstop cities served by airlines and service frequencies on key routes
Number of outbound airline seats available (international and domestic)
· Additional market share/market presence sample statistics are the following:
Number of origin and destination passengers in most important markets
Average airfare(s) (could separate into short-haul, 0 to 600 miles; medium-haul, 601 to
1,800 miles; and long-haul, over 1,800 miles)
· Other sample statistics include, but are not limited to, the following:
Passenger satisfaction survey results
Operating revenue per employee/operating expense per employee
Percentage of employees satisfied with their jobs
Number of safety and security incidents
Number of noise complaints
Economic impact on the surrounding communities
· Additional other sample statistics are the following:
Total employees per enplaned passenger and per square foot of terminal space
Employee turnover rate
Security screening wait times
By completing Worksheet 4.02, "Analyzing Historical Performance Statistics," the planning
team will be able to do the following:
· Compare actual performance versus targeted performance (if available) for the relevant sta-
tistics selected.
· Assess whether there is a relationship between the performance reflected and a particular key
event internal or external to the organization.
· Review the historical statistical data analyzed and determine whether any discernible trends
have the potential to affect the organization's future performance. These trends should then
be ranked in order of importance. Similar to Worksheet 4.01, "Documenting Key Past Events
and Historical Trends," the answers to Worksheet 4.02 are particularly important, as they will
be inputs to the strategic planning process.
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Evaluating and Understanding the Organization 47
CASE STUDY
Historical Performance Statistics of Particular Relevance to General Aviation Airports--
Centennial Airport (Denver, Colorado)
Centennial Airport (the Airport) in Denver, Colorado, is the second busiest general aviation
airport in the United States. The Airport is currently home to over 700 based aircraft, consisting
of a mix of single-engine, multi-engine, and jet aircraft and helicopters. Five fixed base operators provide a
full variety of services for both locally based and transient pilots.
According to Robert Olislagers, Executive Director of Centennial Airport, the airport operator, Arapahoe County
Public Airport Authority, has tracked the following fuel and operational statistics on a monthly basis for many
years and reports them as part of monthly Board of Commissioners meetings (actual example below for
December 2008):
· Year-to-date (YTD) Operations: Down 4.8% from 2007 at 319,593 operations.
· YTD Fuel Totals: Down 10.2% from 2007 at 11,654,719 gallons.
· YTD Jet Fuel Totals: Down 10% from 2007 at 11,031,378 gallons.
· YTD AvGas Totals: Down 13.8% at 623,341 gallons.
· YTD Market Share [listed by FBO] for AvGas and Jet Fuel Combined: 59.2% for Denver Jet Center; 22.9% for
TAC Air; 15.8% for Signature; 1.9% for Xjet Club; and 0.1% for the Heliplex.
· Monthly Operations: Down 6.5% at 19,461 operations.
· Monthly Jet Fuel Sales: Down 21.5% at 815,473 gallons.
· Monthly AvGas Sales: Down 8.2% at 35,375 gallons.
· Monthly Market Share [listed by FBO] for AvGas and Jet Fuel Combined: 53.7% for Denver Jet Center; 21.2%
for TAC Air; 21.2% for Signature; 3.9% for Xjet Club; and 0% for The Heliplex.
The Arapahoe County Public Airport Authority also tracks various financial and noise statistics as part of the
monthly Board reports. Financial statistics tracked for the Airport consist of operating revenues, operating
expenses, and capital expenses and any deviation from the budget for each statistic. Noise complaints are
tracked on a YTD and monthly basis (according to the total number of noise complaints and number of
households reporting) and are further sorted by region and distance from the Airport.
Informally, the Executive Director regularly checks with numerous vendors that use or are based at the Airport
regarding their level of business activity. These checks include updates on flight school activity (including hours
flown and aircraft rented) and the activity of various aircraft detailing companies, aircraft charter operators,
and caterers.
The two most useful statistics for gauging Airport performance are jet fuel sales and operational activity
and, in particular, the relationship between the two statistics. For example, Mr. Olislagers noted that,
"during the summer [of 2008] when fuel prices escalated, our operational levels continued at the same pace,
but fuel sales dropped. Following conversations with our FBOs, we discovered more customers [filled up
their tanks] at their home [airport] or wanted to enter into contract fuel deals. We adjusted our prices and
volume went up along with ancillary service purchases."
If a common strategic plan is being developed for a multi-airport system, Worksheet 4.02
should be completed for each airport that the organization oversees.
To review an organization's historical performance, complete Worksheet 4.02,
"Analyzing Historical Performance Statistics."
