Centerlines - September 2008 - (Page 66)

ON MANAGEMENT “TLC” AT JOHN WAYNE B Y JODI R IC H A R DS Transparency, listening, and conservative spending key to rates and charges presentation mong the top concerns of airlines, particularly in a time of skyrocketing fuel costs, are rent and other terminal fees paid to the airports at which they operate. Rates and charges are a necessity, but one airport has found a way to make at least the presentation and discussion of the numbers more agreeable. A The Meaning of TLC Loan Leblow, assistant airport director at John Wayne Airport (SNA), cited three key aspects to managing the rates and charges at the airport and working with the airlines, “We truly believe in TLC: transparency, listening to our airline partners and being fiscally conservative,” she said. “I think any airport that is able to provide transparency and listen to the carrier for what they need and be fiscally conservative—really helps to pave a good working relationship with your tenants.” Located in Santa Ana, Calif., John Wayne is owned and operated by Orange County, with leadership from a five-member board of supervisors. According to Jenny Wedge, public relations manager, John Wayne is currently served by 10 carriers and is in talks with other airlines to replace bankrupt Aloha Airlines. The airport operates on a compensatory rate structure, owns all the facilities and “the air carriers only pay for the area they use,” Leblow said. Providing the rates and charges information in a useful way for each airline tenant can be a challenge. “We have 10 different carriers; they have 10 different business models,” commented Leblow. The current lease, which is the same for all the airlines, has a five-year term and will expire in December 2010. “We have the same terms and conditions, regardless of how much market share an individual carrier has,” Leblow said. “We believe in being fair with all our tenants and we treat them the same. I think that really helps the relationship.” “ACI-NA understands the important of airport-airline use and lease agreements, and as such has developed a working group as part of the Finance Committee to review agreements and best practices”, said Liying Gu, THE airport shares the entire operating budget—both aeronautical and nonaeronautical—with the airlines. 66 CENTERLINES | SEPTEMBER 2008

Table of Contents for the Digital Edition of Centerlines - September 2008

Centerlines - September 2008
Welcome to Boston
President’s Message
Canadian Airports
Associates’ Corner
Policy Center
On the Hill and On the Stump
Downes Award
ACI-NA 60th Anniversary
Host Airport Profile
Cover Story: James L. Oberstar
Regulatory Front: Security Standards
Security: Checkpoint Evolution
Environment: Measuring Greenhouse Gases at Sea-Tac
Air Service: Wild, Wild Ride
Passenger Focus: DOT’s Complaint Desk
On Management: “TLC” at John Wayne
Revenue Arena: A Tale of Two Diversified Cities
Media Relations: New Media
Now Underway
Grand Openings
New Members
Conference Sponsors
Conference Exhibitors
Index of Advertisers/
Box Scores

Centerlines - September 2008