Market RewardsQuick Reflexes, Fluid Planning

Everyone knows an airport that dutifully writes a master plan, gets it approved and promptly places it on a shelf, where it remains unopened for 15 to 20 years until the next plan is due. Not at MSP. Officials there frequently reassess their capital program, which plans spending and anticipated projects for the next seven years. The program is extremely detailed regarding events in the next year, less so for years two to three and even more fluid for years four through seven.

These days, having a plan in place to deal with short-term events is often essential. Continual fluctuations in funding, technology, consumer preferences and the political climate either force change or present opportunities that would otherwise be lost if the typical decision-making cycle were utilized.

There are plenty of examples to cite. Hybrid Wi-Fi programs allow airports to move from 100% free to a mix of free for casual users and paid access for heavier users. The airport still provides one of the most sought-after amenities - free Wi-Fi - but doesn't sacrifice the opportunity to earn some revenue. On the concessions front, helping passengers use smartphones to order food could increase sales. And valet service and online reservations are already boosting parking income at some airports.

What's the take-away on this? Market forces are creating revenue opportunities where none existed a short time ago. It takes an open mind and an ear to the ground to leverage changes in consumer patterns and technology enhancements. It also requires a willingness to dust off plans on a regular basis and reconsider previous strategies.

Sure, we may be limited by the slight loss of AIP funding and freezing of PFC dollars. But airports are huge economic engines. By virtue of the sheer economic might our customers represent, we have an equally huge opportunity - not only for providing new and growing sources of revenues, but also for increasing operating efficiencies. My friends, our proverbial glass is half full. Perhaps even two-thirds.

Cheers, Paul