Airport Services and Properties

Overview

As highlighted below, Western Peak’s Principals, team members and strategic partners bring a unique breadth and depth of experience with Airport Services and Properties to assist airports and related businesses in optimizing passenger experience and customer service as well as the related aeronautical and non-aeronautical revenues. Our principals have worked for two of the largest airports in the U.S. including Denver International Airport (DEN) and San Francisco International Airport (SFO) and one of the top 10 non-aeronautical corporate tenants, Budget Rental Car Corporation. Our team has diverse private enterprise business experience from hospitality, food and beverage to FBOs.

Developing and managing these services require the application of sound commercial practices adapted to the unique constraints of airport terminals with increasing security demands, air operations areas (AOA) and landside operations. Each airport has a unique passenger and support service base defined by the local or regional economic businesses that sometimes includes unique tourism drivers. Our team understands the public procurement requirements under which individual airports operate from non-hub to large-hub airports.

Click below to expand and to read more about Western Peak services in the areas of Airport Concessions, Air Service Development and Retention, Fixed Base Operations services, Airport Properties and Asset Management and Rental Car Concessions including Consolidated Rent-a-Car projects.

Airport Concession Development

In addition to our related experience working directly for large-hub to small- or non-hub airports, Western Peak’s Principals bring an entrepreneurial edge from private enterprise to assist our airport clients with their concessions programs. This includes all aspects of concessions development, procurements and management.  As in our other service areas, our focus is on the real-world implementation of concessions program strategies and marketing plans with direct accountability for results. As a key differentiator, our Principals’ relevant private sector experience includes years of involvement with the development and renovation, leasing and property management of many different types of retail facilities, from stand-alone retailers and restaurants to large regional malls. We have managed properties that include festival food courts, a wide variety of entertainment and service tenants (movie theaters, athletic clubs, ice rinks, bowling alleys, etc.) and major public spaces which required constant programming. We are highly experienced in managing tenants, leasing and property management firms, creating merchandising plans, drafting and negotiating retail lease documents, enforcing rule and regulations and managing all the complexities of retail tenant accounting and lease administration.  These services require the application of sound commercial practices adapted to the unique constraints of airport terminals, with increasing security demands, air operations areas (AOA) and landside operations. Our airport and retail real estate experience, combined with our corporate due diligence skills (honed through mergers and acquisitions  work for major US companies), provides Western Peak with unique capabilities and skills to help airports optimize the passenger experience while growing the revenues per enplanement. Within the inherently political context of communicating with current and potential concessionaires, we also help airports incorporate the appropriate balance of local character in their concession mix to achieve the optimal balance of national/local tenants and to help maximize DBE/ACDBE opportunities. Western Peak helps our client achieve program balance based on market research, analyzing historical data, and forecasting based on the terminal zone areas respective origination and destination (O&D) passenger demographics. Understanding air carrier service risks or potential market shifts are key to aligning supportable capital investments for the concession lease terms.

Concession Skills and Capabilities

Some of the specific skills and tools that Western Peak bring to our airport concession clients include the following:

Marketing and Technology Expertise

Western Peak's marketing and technology team members will create and set in motion marketing plans and technology tactics and tools to drive airport revenues and optimize the passenger experience.  Please see our Airport and Real Estate Marketing overview and visit the website of our marketing partner, Resolution Graphics. Western Peak’s unique airport concessions services overlap and are supported by our other specialties, including airport properties and asset management, airport commercial real estate, airport-centric economic development and even non-airport commercial development and services. Please see summaries of these services as well together with some of the project summaries that demonstrate our experience in the retail arena.

Air Service Development & Retention

Overview

Western Peak provides expert air service development and retention-enhancement programming. We understand that annual passenger requirements must be achieved to satisfy airline profit margins. Maximizing passenger counts and cargo revenues to exceed bottom line profit goals is the best approach for growing air service. When air service underperforms, the carriers will move their equipment and crews to the most lucrative and strategic locations.

At Western Peak, we have hands-on experience effectively developing air service from multiple perspectives. Our team consists of former airport executives, elected officials, and air service analysts. We empower communities with key data to support airline business plans that are backed with a level of surety to maximize success and minimize new service risk.

The Western Peak team has experience developing community partnerships and aligning stakeholders with regional economic development objectives. Airports, chambers, DMOs, EDCs, municipal governments, and local business interests must all be rowing in the same direction. Western Peak’s legal expertise will help airports and communities to negotiate the key business terms of their airline agreements. We can also develop economic incentive packages, as allowed by the FAA, for new service.

 Air Service Research and Data Analytics

With Corporate America due diligence experience, Western Peak has the skills to analyze key market factors including:

  • Catchment area profile (demographics, economy, tourism)
  • Airport profile (facilities, traffic)
  • Market profile (size, top city pairs, leakage, etc.)
  • Alternative routing (frequency, schedule, aircraft)
  • Route analysis (market share, load factors, stimulation potential, self-diversion)
  • Other strategic considerations to maximize utilization of limited resources including fleet and crew
  • Understanding of Revenue Passenger Miles (RPM) and Revenue Ton Miles (RTM) and the respective yields, and
  • Look for codeshare opportunities (block space, free flow and capped free flow codeshare) plus other multi-modal codeshare opportunities such as air-rail alliances.
It is critical to evaluate various data sources to optimize the analysis of your market. Western Peak will help you establish a program to evaluate data sources that include, but are not limited to:

Western Peak Expertise Economic Development and Air Service Nexus

Air service is a very important decision factor influencing major employers to become partners in your community. Western Peak's principals, David Fiore and Dan Poremba -- together with the company's Sr. Economist Jeff Moffett -- have a proven hands-on track record to execute plans that have optimized air service for smaller airports and capitalized on existing air service at larger airports to successfully compete to recruit and retain major employers to the communities they served.

While managing the commercial development program at Denver International Airport (DEN) -- the largest airport commercial program in the U.S. -- Western Peak Principle Dan Poremba led a wide variety of airport-related economic development initiatives. This included his direction of hotly-contested airport-related economic development wins involving United Airlines and Panasonic.

In the Chicago area, Western Peak’s principal, David Fiore, actively worked on the City of Naperville’s economic development team using creative financing tools to recruit and retain such businesses as Office Max North American Headquarters, Tellabs, Nicor Gas, BP, ConAgra Foods and others. David Fiore’s understanding of the complex nature of transportation, airports, property and local government was unmatched in Chicagoland. In fact, Naperville’s Mayor designated David as the City’s appointee to the Chicago Metropolitan Airport Capacity Committee and other regional transportation planning committees. David's past participation in U.S. Department of Commerce trade missions aboard uniquely qualifies Western peak to evaluate open sky agreement opportunities and facilitate discussions on international codeshare opportunities.

Jeff Moffett, Western Peak's senior economist managed the air service development for one of Colorado's major resorts, Crested Butte Mountain Resort, positioning the airport to have 20% plus gains in the available airline seat miles compared to competitive mountain resort airports including Aspen (+9% for the same period), Steamboat Springs (+7% for the same period) and Eagle County - Vail (-0.5% for the same period). The retention component is the low-hanging fruit to develop community partnerships that are important to the airlines and giving the greatest chance to align corporate travel plans and logistics of shipping to help increase airline yields through the development of routine evaluation of Passenger Load Factors (PLF), RPM and RTM data.

Air service growth requires more than equipment and passenger demand. The local transportation system, demand drivers, lodging base in smaller and resort communities, and land uses in the region must all develop in concert with air service. The Western Peak team is prepared to support non-hub to large-hub airports and the communities they serve by developing strategic plans that align air service and the economic development objectives set by the communities they serve.

Scholarly Research

Please visit Western Peak's "Hot Topics" blog on this website to read related scholarly discussions and research including:

  • OPEC US Oil, Airlines and Planning for "Indefinite Uncertainty"
  • World Aviation Forum, ICAO, Shines Light on Economic Development
  • Expanding Int’l Air Service to More U.S. Cities, 22 TRANSP. L. J. 327 (1994) addressing matters pertaining to bilateral agreements and Open Skies, current legal research on topic.
  • Intermodal Transportation Planning for the Environment: Social, Cultural and Economic Considerations for an Interdisciplinary Solution for Change 23 TRANSP. L. J. 237 (1995) and continuing current legal research on topic.
  • Others
Western Peak's air service development and retention expertise overlaps and is complemented by our related experience offering, including non-airport Commercial Real Estate Services, Airport-Centric Economic Development, Airport City and Aerotropolis expertise, Airport Services and Properties and other service offerings. Click on the buttons below to read more.

Fixed Base Operation Contract Support & Professional Services

Western Peak principals have experience managing Fixed Base Operator (FBO) leases and agreements at airports ranging in size from General Aviation (GA) airports to large-hub airports including San Francisco International Airport. Our team also includes a former commercial pilot for a charter operation. Our diverse backgrounds in the aviation industry, including management of airport properties, provides our team with the expertise to optimize FBO services to align with the needs of the communities they serve. Further, our airport-centric economic development approach and services helps assure our airport clients that they are optimally positioned to compete nationally for FBOs seeking to expand their services to support their respective international clientele.

FBO Services Right Sized Yet Maximized

FBOs are the lifeblood of GA airports and have the potential to create jobs and tax revenues to the communities they serve. Fuel revenues at GA airports are often the largest revenue producers supporting the airport. FBOs commonly provide critical fueling services to airlines at commercial service airports, particularly small-hub and medium-hub airports. Regional carriers serving smaller commercial airports often depend on FBOs to provide other services from deicing, to aircraft repair, deplanement services for charter operations, among other unique services. A small-hub airport lacking critical FBO services may impact an airlines decision to provide passenger service to that community. Securing or renegotiating FBO agreements to secure critical services in a time when the airline industry is confronted with equipment and pilot shortages is simply smart business. Some of the FBO-related services provided by Western Peak include:

Airport Properties & Asset Management

Western Peak’s principals and strategic partners provide experience dealing with a wide range of property and asset management challenges that airports of all sizes deal face. This is further supported by Western Peak’s Principals’ deep experience with developing, leasing and managing many comparable property types in the private sector. Our experience has equipped us to bring real estate industry best practices to most airport property types. Western Peak’s airport-related development, leasing and asset management experience includes:

Extending this experience to additional specific airport property challenges, Western Peak’s expertise also includes:

In addition to their broad experience with many different types of airport and commercial properties, Western Peak Principals David Fiore and Dan Poremba are both licensed attorneys who have extensive experience negotiating, drafting and advising airport personnel on the detailed procurement and agreement documents involved in developing and managing various airport property assets.  Their experience includes close coordination with airport counsel (in-house and outside).

This experience also includes the related critical tasks of obtaining the consents and approvals of the multiple stakeholders involved with most airport property agreements. Sometimes this role requires the formulation and execution of detailed outreach plans and the various stakeholders may include:

Western Peak expertise is further enhanced through its related experience with airport commercial properties and airport-driven economic development. Please refer to our summaries of those services by clicking on the links below.

Rental Car Facilities & CONRACTs

Our Western Peak team has the broad experience to address rental car operational planning, facility planning and development of business models to optimize customer service for rental car operations. Our team will help develop financial models to support the development of Consolidated Rent a Car (CONRAC) facilities including the use of Customer Facility Charges (CFC) to back revenue bonds. Our team will also help identify other sources of revenues to support the development of CONRAC projects. Emerging interest from the private sector to participate in public-private partnerships (P3), particularly where other mixed-use opportunities exist, is projected to provide viable alternatives to enhance customer service beyond the first generation of CONRAC projects. These P3s can help push the envelope to bring alternative sources of non-aeronautical revenues to increase airport bottom line revenues.

Western Peak Principal David Fiore has been involved in CONRAC facilities nationwide at airports ranging in size from small-hub to large-hub airports as a former corporate attorney with Budget Group, Inc. David also was on the senior management of San Francisco International Airport’s (SFO) properties and real estate team earlier in his career and other smaller airports prior to joining SFO. In these roles, he worked on various rental car facilities, including CONRAC projects. Company Principal Dan Poremba brings complementary experience working on a wide-variety of CONRAC planning and finance matters during his time directing the commercial real estate program at Denver International Airport (DEN). In addition, he is well-versed in P3 projects and transit-oriented development projects.

Combined Airport & Rental Car Industry Experience

Understanding both airport operations and rental car operations, plus large project development management and financing, sets Western Peak apart from other consulting teams.  We have a command of the business and operational drivers at an airport and the integral aspects of leading a CONRAC project to meet the operational needs of the rental car industry, based on cost effective business models to ensure that economically-viable and sustainable facility economics are achieved for the rental car companies and, importantly, their customers.

The incentive for building CONRAC facilities include less congestion at the terminal curbside stemming from competitive shuttle buses replaced by common alternative forms of transportation, the possibility to recapture short term parking near terminal buildings to bolster non-aeronautical revenues, greater efficiencies for rental car companies with a higher level of service for airport customers. These factors all contribute to a much-improved passenger experience. CONRACS offer numerous environmental benefits too from reduced emissions.

Western Peak’s team has the experience to lead alternative common transportation studies including common busing, bus rapid transit (BRT) / inter-governmental agency alternatives, automated people mover (APM) systems, and other forms of efficiently moving people from the point of drop off to the terminal building.

Western Peak has the expertise to assist CONRAC stakeholders with planning from inception to certificate of occupancy including the following services:



Working for both airports and rental car companies, Western Peak principals have been involved with rental car facilities and CONRACs at numerous airports including, but not limited to Seattle International Airport, Portland International Airport, San Jose International Airport, later phases at San Francisco International Airport, Phoenix Sky Harbor Airport, Albuquerque Sunport,Reno Tahoe International Airport, Houston Intercontinental Airport, Minneapolis St. Paul International Airport, Chicago Midway Airport, Providence Warwick Airport, Boston Logan International Airport, others. See a few project portfolio examples at the bottom of this Airport Services section.

AIRPORT SERVICES AND PROPERTY RELATED PROJECTS

 

Western Peak’s airport service expertise overlaps and is complemented by our related experience and service offerings including Airport Commercial Real Estate, Commercial Development and Real Estate Services, Airport-Centric Economic Development, Airport City and Aerotropolis Expertise,  Airport and Real Estate Marketing and other specialized services. Click on the buttons below to read more.

 

Airport Commercial Real Estate Commercial Development & Real Estate Services Airport-Centric Economic Development Airport City | Aerotropolis Airport & Real Estate Marketing   Special Services