Eastern Iowa Airport: The Winds of Change
Transportation
Written by Meghan Flynn   
Tuesday, 01 September 2009
Eastern Iowa Airport: The Winds of Change
As the airline industry adjusts in a new economy, Dan Mann and his team at this Midwest regional airport are developing creative ways to change with it.
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When Dan Mann became airport director at Eastern Iowa Airport four years ago, there was a lot he was impressed with: the old facility had been kept up well, and the front-line employees were knowledgeable and service-oriented. But, he said, some re-prioritizing was necessary.

“The master plan in place had lofty goals for the airport, but the FAA hadn’t bought into them, and I wasn’t convinced our usage warranted them,” said Mann. “There were certain things that needed to be taken care of right away, and after that, we began figuring out what the best next steps were for this airport.”

Eastern Iowa Airport: The Winds of Change
Dan Mann, airport director
One of the immediate actions Mann took was to bring industry experts with more varied experiences onto his leadership team. He said most of the previous leadership had only worked at Eastern Iowa, and the teams on the ground needed a wider vision. The shift brought in new marketing and operations directors and a new operations manager.

The new approach was most noticeable in the airports hiring practices for public safety officials. In the past, Eastern Iowa had simply hired former police officers or firefighters; today, the goal is to attract a diverse pool of professionals. Mann said of the most recent public safety officers, one has an aviation degree, one has a degree in criminal justice, and a third has a background in maintenance. That diversity, he said, has been crucial in managing the many capital projects the airport has under way.

“By bringing in a larger variety of skills, we’ve created a stronger foundation to build on in the future,” he said.

Under construction
The first capital projects Mann and his team tackled were the total reconstruction of Eastern Iowa’s primary runway and the construction of a new rescue station. The latter, a $5 million project, will be completed in August and support the airport’s growth for up to 20 years.

The old rescue station had been built in the 1960s, didn’t have 24-hour support capabilities, and was too small to fit today’s modern equipment. Last June, the airport launched 24-hour services and since then has expanded the facility to include bunkrooms, a workout room, and more.

The total reconstruction of a primary runway is a tall order for any airport, but the road became easier for Eastern Iowa after Mann and his team developed a new work plan that won the approval of the FAA.

“Its buy-in for these types of projects is crucial, and by adopting this new plan, we earned one of four letters of intent the FAA sent out in 2006 to fund projects of this kind,” Mann said.

The $42 million project required the construction of a parallel taxiway that will serve as the primary runway this year while Eastern Iowa updates the existing runway. Mann said it will take 112 days and will be operational by September of 2010.

In the meantime, Eastern Iowa renovated its C concourse to update the look and feel of the area. The first step was a terminal study, the results of which concluded the airport could expand to handle as many as 1.7 million passengers. The project included new carpeting, lighting fixtures, furniture, new food and retail options for passengers: a branch of a popular local pub, a coffee shop, and a newsstand. In addition, a third of all the seats have outlets, and the concourse now offers free WiFi.

“We are a completely self-sufficient airport; all of our projects are paid for by our tenants. Our goal is to give us room to grow but not overburden our tenants with a huge bill,” explained Mann.

The next step for Eastern Iowa will be a renovation of its main lobby and, later, its B concourse. Mann said TSA baggage scanning machines and personnel will be relocated behind the scenes to relieve congestion. He said that project, which he estimates to cost between $3 million and $4 million, is slated for summer of next year.

Creative revenue options
Unfortunately, the recession has put a damper on Mann and his team’s plans. Eastern Iowa had set passenger records from 2005 to 2008, but he said the pressure has been turned up for all airports that aren’t the main hubs for airlines, adding that things are worse now than after Sept. 11.

“In 2001, we knew the airline service was going to come back, but what we’re seeing now is more indicative of a shift in the industry toward consolidation,” he explained. “Airlines don’t have the resources to dedicate planes to hundreds of non-hub airports, and after passengers get used to using different airports, it’s hard to recapture that business.”

His solution is to generate new lines of income for the airport. First, Mann and his team looked at every contract the airport had and eliminated all those not directly related to safety or improving the customer experience. One example is fuel sales for rental cars and the grounds crew. The airport had been using a third-party retailers but owned the infrastructure. Mann said a combination of cost reduction and new revenue ideas like these amounted to about $1 million in annual savings.

Over the next few months, Eastern Iowa is transforming another expense into revenue: its phone service. It used to buy from the city but will soon transition to an independent provider and save an estimated $118,000 a year. Once the testing phase is complete this winter, Mann said the airport will be able to sell the service at a discounted rate to its tenants.

“We are doing everything we can to provide a positive experience for our customers, our tenants, and our employees in these difficult times. Frugality now will be rewarded with greater success later,” Mann concluded. 
 
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