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Published byPrimrose Butler Modified over 9 years ago
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GO Airport Express
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Airport Concession Agreements & Long Term Investment Strategy
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Railroad Transfer Service Parmelee Transportation 1853 – 1955 –Regulated by state –Contract with Railroad Board
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Airport Ground Transportation Continental Air Transport 1938 – 2008 –Regulated by State –Concession Agreement – City of Chicago
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Airports Provide Economic Engine Air travel is critical to a city’s convention, meeting and tourism industry. Businesses locate in cities with easy air travel access Airports create good jobs and tax dollars
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Connecting the Airports with the City Ability to meet fluctuating demand –Convention business has many peaks and valleys.
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Chicago Market
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Managing Capacity Transportation provider must have the resources to: a.Build capacity to meet peak demand periods b.Carry the cost of infrastructure during slow periods
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Single v Multiple Operators Single Operator can better support slow periods and better serve low volume locations due to higher earnings from busy periods and high volume locations
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Single v Multiple Operators Multiple operators can cause ruinous competition and bring about poor service during both busy and slow periods and no service to low volume locations.
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Efficient Use of Airport Resources Maximizing the use of the curb space –Multiple operators = Greater demand for curb space –Single operator can more efficiently dispatch vehicles from the curb.
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Emissions Fewer Vehicles at curb reduce unneeded emissions.
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Load Factor Fewer vehicles at curb increase the number of passengers per trip and lessen the number of trips operated.
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Revenue Per Trip Greater load factors generate lower fares and higher revenue per trip.
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Security and Safety Drivers: –The greater revenue a vehicle generates the higher wage that can be paid a driver. –The higher compensation a driver the more selective will be the hiring process.
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Investment Required Vehicles Maintenance
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Investment Required Communications –With Driver Dispatch System Radio GPS Mobile Data Terminals (MDTs) DriveCam
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Investment Required With Customer –Website –Reservation System –Ticketing System –Phone System –Ticket Kiosks
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Investment Required Branding –Providing Recognized Consistent Quality Service
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Recognizable Name Easy to recognize GO vans make the customer more comfortable and confident they will receive the quality service they deserve no matter where they are in the world.
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Quality of Service How Soon? –Frequency How Long? –Number of Stops How Much? –Fare
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Quality of Service – Creating the Experience Training –Safety –Customer Service Weather- Sight- Bite
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Quality Service – Creating the Experience Providing Added Value –Historical Fact of the Day –Giving out Lottery Tickets –Offering Discounts at Local Sights.
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Fact of the Day September 15, 2008 Chicago History Minute September 15, 2008 On September 15, the Nicaraguan community in Chicago comes together to celebrate its Independence Day, often with picnics, festivals and traditions such as La Gigantona. Learn more>> LINK: http://www.encyclopedia.chicagohistory.org/pages/890.html.
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Quality Employment Drivers, Ticket Agents and Reservation Agents –Valuing Front Line Personnel
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Quality Employment Employment Package –Close to 70% of employees are union members. Compensation formulas are well above market level Drivers and ticket agents receive free health insurance. Other benefits include paid vacations, holidays and sick days.
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Achieving Airport Minority Goals 82% of employees are minorities. 80% of employees reside in Chicago. All vehicles and fuel are purchased through MBE firms. Most marketing is done through a WBE firm. DBE firms are used at every opportunity. Uniforms, printing, security work, office suppliers, etc. are purchased through DBEs.
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Commitment to the Community Providing leadership and support for local organizations –Chamber of Commerce –Convention and Tourism Bureau –Rotary –Metropolitan Planning Organization (local MPO) –Principal for a Day –Universities –Hospitals –Travelers Aid
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Long Term vs Short Term Strategy Building Customer Loyalty vs Creating a One- time Rider
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Long Term vs Short Term Strategy Investing in state of the art technology vs getting by with what one has.
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Long Term vs Short Term Strategy Making a larger investment that requires a long term payback.
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Long Term vs Short Term Strategy Investing in the Community vs. taking the money and run.
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Long Term vs Short Term Strategy Employees being vested in their job vs. Employees wanting a better job elsewhere.
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Airport Concession Agreement A healthy long term financial environment offers the best overall return. –The Airport receives greater fees –Customer receives higher quality of service and lower fares. –Operator has better Return on Investment –Employee receives greater compensation & benefits. –The community profits from all the above.
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