LONG BEACH, CALIFORNIA
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LONG BEACH, CALIFORNIA
Strategic Planning and
Achieving Your Vision
Mario Rodriguez
Executive Director
Long Beach Airport
Mario.Rodriguez@longbeach.gov
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Using Strategic Planning To
Achieve Your Vision
• Vision
• Traditional Master Planning
• Strategic Planning
• The Long Beach Airport
Commercial
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Using Strategic Planning To
Achieve Your Vision
Vision
Traditional
Master Planning
Non-Traditional
Strategic Planning
Rigid
Approach
Flexible
Approach
Over-Building
Under-Building
Wrong Location
Obsolete Facility
Achieving the Vision
LGB Vision: Improve
Customer Service
• To Continuously Exceed Our Customer’s Increasing
Expectations
– How will We Achieve Our Vision
• Personnel Training and Commitment
• Maintaining The Existing Facilities In Top Condition
Providing Unique and Superior Facilities
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LGB Vision: Improve
Customer Service
• What Are Our Customer’s Expectations?
– Ease of Use and Convenience
• 20 minutes from curb to plane
– Low Cost
• Passengers - Lowest ticketed price in CA and 2nd lowest in US
• Airlines - 2nd lowest EPAX in CA
Unique and Superior Facilities
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LGB Vision: Improve
Customer Service
• The Challenge - Delivering Unique and Superior Facilities
Without:
– Reducing The Existing Ease of Use and Convenience
– Increasing Cost to Passengers and Our Airline Partners
Right-Sizing and Developing Flexible Facilities
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Traditional Master Planning
• Approach
– FAA AC 150/5070-6A
– ICAO – Airport Planning Manual
• Development
– Forecast (Pick One)
– Alternative Development Scenarios for the Forecasts
– Preferred Alternative Selection
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Traditional Master Planning
• The Risk with Master Planning
– Forecasts are Always Wrong
– Fails to Take A Business Approach to Development
• Market conditions place practical constraints on deliverables
– Fails to Anticipate the Risk of Change in Market Conditions
– Seldom Analyzes Financial Implications
Public Works Approach vs. Business Approach
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Strategic Planning
Why Strategic Planning?
• Strategic Planning recognizes that that there is a massive
uncertainty in long range forecasting and planning
• Endeavors to understand the
dynamics of development
• Factors in market realities to
place practical constraints on
what can be achieved
Unworkable Projects Languish
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Strategic Planning
• Strategic Options Should Define a Wide Range of Possible
Developments
- Taking Into Consideration
• Business Reasons
• Costs
• Risks
• Flexibility
Your Plan Should Only Commit to Immediate First
Stage Decisions.
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Designing LGB’s Future
• Home to over 15,000 FullTime Jobs
• LGB’s Economic Impact:
$4.12 billion
•
Over 3 Million Annual
Passengers
• 41 Daily Commercial Service Flights & 25 Commuter Flights
• Averages 310,000 Annual Operations
Your Decisions Have Lasting Effects
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Current Market Conditions
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Current Market Conditions
• FAA Scaled Back Forecasted Industry Growth from 2% to
0.4% in 2010
• System-wide Capacity Expected to Drop by Another 1.6% in
2010
• Commercial Operations Expected to Drop 2.2% in 2010
No Rapid Recovery for Aviation Industry
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Current Market Conditions
• 39 National Airports Have Received Downward Airport Bond
Rating Outlooks
• Significant Reductions in Passenger Traffic for Competitors
- LAX and John Wayne experienced traffic decreases above 5%
compared to 2008
- Ontario International enplanements decreased 21.6% compared
to 2008
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The LGB Commercial
Uncommon Solutions
• Focused on Our Core Mission &
Vision
- Customer Service
- Safety & Security
• Employed a Strategic Approach
- Demand for new construction
- Scalable Development
- Flexible Development
Employ Enterprising Solutions!
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The LGB Commercial
Right-Sizing Development
• Meet Short-Term Needs
• Scalable
• Immediate Return or Financed by Leveraging PFCs
• CIP Structured to Maximize AIP and Minimize use of Airport
Funds
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The LGB Commercial
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The LGB Commercial
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The LGB Commercial
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Terminal Improvement
Strategy
• Right-Sized Project Scope
to Fit Market Conditions
• Ensures LGB Meets
Customer Needs
• Maintains Airport’s viability into the Future
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Terminal Improvement
Strategy
Project Priorities
• Passenger Experience
- Providing a Unique Experience
- Convenience: Maintaining What is Great About LGB
- Comfort: Replacing Existing Trailer Facilities
- Safety: Building Location and Orientation
• Cost Control
- Balancing Airport Needs and Affordability
- No Undue Financial Burden to the Airlines
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Terminal Improvement
Strategy
Project Priorities
• Meet Immediate Needs
- Permanent Holdrooms
- Enhanced Concessions
- Consolidated Passenger Screening
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Terminal Improvement
Strategy
Building a Better Way to Fly!
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Strategic Outcomes
Development Outcomes
• No Negative Effect on Airlines’ Rate-Base
• Designed Common Area for Provide a Unique Experience
• Prioritized Revenue Generating Areas
• Financed with GARB and PFC-Backed Bond
Empty Gates & Concessions Do Not Make Money
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Outcomes
Airport Enterprise Fund Outcomes
• Passenger Traffic Remained Stable in 2009 and 2010
• Bond Rating Outlook Remains Stable
• Maintained Low EPAX for Airlines
– $6.45 compared to statewide competitors averaging $10 - $20
• Attracted Two New Airlines in 2010 – Frontier and Allegiant
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Using Strategic Planning To
Achieve Your Vision
Question & Answer Period
Mario Rodriguez
Executive Director
Long Beach Airport
Mario.Rodriguez@longbeach.gov
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LONG BEACH, CALIFORNIA
Strategic Planning and
Achieving Your Vision
Mario Rodriguez
Director
The Long Beach Airport
Mario.Rodriguez@Longbeach.gov
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