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McKinney National Airport

Presented by Mark Jaraczewski, General Manager

AIRPORT’S DEPENDENCE ON CITY FUNDING • City has owned and operated the airport since 1979 • City contributed General Fund money to its operation –

approximately $550,000 a year -- since 2002 • $71 million was invested in airport infrastructure to

support private development since 2002 • Development was slow to non-existent • City was forced to explore new revenue sources and

enhanced development initiatives

NEW DIRECTION -- NEW PLAN • The McKinney Airport Development Corporation (MADC)

was established by City Council in 2006 to look for business solutions

• MADC’s Stated Strategic Plan Objectives: Reduce the airport’s financial dependence on the

City of McKinney. Enhance the airport’s economic development role

in the community by increasing its utility and business activity.

ACQUISITION OF FIXED BASE OPERATION (FBO) • After years of due diligence, McKinney purchased the FBO

and hangars from Schuler Development November 1, 2013 • Schuler’s FBO management agreement with a private FBO

expired October 31, 2013 • City took over the FBO on November 1, 2013 under the

name McKinney Air Center • Acquisition cost was $25 million • The airport was challenged to become financially self-

sufficient as possible.

• Employees • Vacant Hangars • Tenants Trust • Declining Fuel Sales • Facility Management • Business Plan • Community Awareness

FBO START UP CONCERNS

KEY FACTORS FOR SUCCESS

• Educating Staff • Customer Service • First Impression • FBO Margins/Leases • FBO Business Plan / Marketing Branding • Community Involvement

• Line Staff all NATA Safety 1st Certified. • Education of Staff on FBO expectations Dashboard Goals On time performance Exceeding customers expectations Clean Facilities / Image / To Do List? Accountability

EDUCATING STAFF

7-Nov 32 575 3546 Busy day, Best day of the month 8-Nov 25 522.1 2122 nice volume 100ll 9-Nov 37 840.9 1566 Srtong 100ll very busy day for everyone Great Work TEAM

10-Nov 15 355.9 312 Hangar/ Aero floors look good / TRES floor needs clean

• The assistance and advice provided by a company to those people who buy or use its products or services.

Making your customers know they matter Knowledge of Product Positive Attitude Time Management Paying attention details, on time performance Going above and beyond Listening to your customers Promoting aviation websites

CUSTOMER SERVICE

FIRST IMPRESSION

• You only get one chance, this must be your best effort.

• The first impression will make or break your customers

visit.

• A great first impression rewards repeat business.

FBO MAIN LOBBY

CUSTOMER SERVICE DESK

FBO MAIN LOBBY

Main Lobby

FBO TERMINAL

• Management must establish margins on fuel. Keep your fuel pricing consistent .

• FBO staff must understand your discount program if offered

• Don’t be afraid to charge for services. • Charge for hangar rent / Maintain your rates • Analyze all streams of revenue sources

FBO MARGINS

• Continuing to build relationships with your tenants/customers • Involvement with flight clubs/ EAA • Customers have seen major impact in service, and pricing.

I've been making frequent trips to McKinney for almost twenty years. I see many

of the same faces today as I did twenty years ago, including, Jimmy, the singing line boy. The service has always been first class and fast. The FBO has always been nice but the recent remodel is even better. It's easy in, easy out, friendly tower, good fuel prices, and friendly people.... Great stop.

Very clean, comfortable facility and always outstanding, courteous staff and excellent service. Thank you to all Jet Center team members!

Tenants / Customers

• New hangar construction • Increased automobile parking • Enhanced rental car service • A new terminal with expanded services and amenities • An innovative marketing plan designed to raise awareness of our

location, services and product offerings • The introduction of contracted services such as air charters,

turbo maintenance and enhance flight training • A close association with academia to support aviation education

FBO BUSINESS PLAN

• Hangar Capacity at 100% • Fuel Volumes increase 16% • New Transient Hangar Construction • Airport Operations increase 10.2% • $5.8 million ramp project under construction • $50 million referendum for airport development

FBO AND AIRPORT SUCCESS

• Challenge Air • McKinney ISD • Hangar Dance • EAA/ Local Flight Clubs • Banquets • Chamber of Commerce

COMMUNITY INVOLVEMENT

VOTED #1 US FBO 2014