2015-04-29 Special Meeting
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 29, 2015 PAGE 284
ASSEMBLY
The New Hanover County Board of Commissioners met for a Special Meeting with the New Hanover
County Airport Authority on Wednesday, April 29, 2015, at 8:00 a.m. in the Conference Room of the Wilmington
International Airport, 1740 Airport Boulevard, Wilmington, North Carolina.
Members present: Chairman Jonathan Barfield, Jr.; Vice-Chairman Beth Dawson; Commissioner Skip
Watkins; Commissioner Woody White; and Commissioner Rob Zapple.
Staff present: County Manager Chris Coudriet and Clerk to the Board Teresa P. Elmore.
New Hanover County Airport Authority members present: Chairman John O. Perritt, III; Thomas C.
Barber, II; Jonathan S. Crane; Donna Girardot; Dan Hickman, Carter T. Lambeth; and Tom Wolfe.
Wilmington International Airport staff present: Julie Wilsey, AAE Airport Director, Gary Broughton, CM
Operations Director, Jim Morton, CM Finance Director, Whitney Prease, CM Facilities Director; and Rose Davis
Executive Assistant.
Chairman Barfield and Chairman Perritt called their respective Boards to order for the Special Meeting
reporting that the purpose of the meeting was to hear the Annual Report of the Wilmington International Airport
(ILM).
Airport Director Julie Wilsey presented the following update:
Airport Authority Changes in 2014:
August 2014 the Authority changed from a five member board to seven members with the following
new members: Donna Girardot, Dan Hickman, and Tom Wolfe:
Greater Public Participation
Diversity in Representation
Additional Business Expertise and Community Knowledge
Operations Director Gary Broughton provided an update on the Airport operations:
Record Ice Event in January February 2014:
136 airline flights canceled
Lost 1,273 seats
Lost 1,203 General Aviation Operations
Total passengers down 3.3% at end of year:
Seasonal reductions in LGA, ATL and DCA service
Revenue versus load factor
General Aviation down 13%
Military operations up 19.9%:
Off Shore Maneuvers
Air Wilmington has fuel contract with the military
Cargo up 2%
4AA – ILM Revenue Available Seat Mile (RASM) Performance:
ILM’s Charlotte RASM and load factor were slightly below American’s average at Charlotte
(84% system load factor and unit revenue at 31.6 cents)
ILM’s New York (LGA) RASM was significantly above American’s average at LGA, while load
factor was slightly below the system average (78% system load factor and unit revenue at 26.9
cents)
Operations Challenges:
Four major airlines: American, Delta, United and Southwest
Retain existing and add new air service
ILM has American and Delta
Phase out of 50 seat aircraft
Pilot Shortage due to:
Less time and disposable income
Major investment/low income return
Customs Overflight Rules
Provide greater focus on General Aviation
North Carolina’s 10 commercial air transportation airports serve residents throughout the State:
Asheville
Charlotte
Concord
Fayetteville
Greensboro
Greenville
Jacksonville
New Bern
Raleigh/Durham
Wilmington
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 29, 2015 PAGE 285
Publicly owned/operated airports in North Carolina = 62 General Aviation and 10 Commercial
Second Annual Aviation Day scheduled for October 10, 2015:
25 vendor participants in 2014
13 fly-ins/pancake breakfast in 2014
160 runners/Jones Racing Company in 2014
Double participation in 2015
Featuring: Stationary Aircraft Displays, Coastal Classic Car Show, Local Cuisine Food
Trucks, Remote Control Airplanes and more
Facilities Director Whitney Prease provided an update on the Airport facilities:
Facilities:
RWY 17-35 Rehab of Pavement - $6 million:
Received best airfield pavement project in US
RWY 17 Obstruction Clearing - $1.2 million adjacent to Blue Clay Road and Kerr Avenue
RWY 6-24 Ditch & Drainage Project - $4.6 million:
In progress through October 2015
Future General Aviation Projects = $9 million (estimated):
North General Aviation Apron Pavement Rehabilitation and Storm Water Improvements:
1. Apron Rehabilitation
2. Proposed Storm Pipe (Drainage System A)
3. Proposed Storm Pipe (Drainage System B)
4. Apron Expansion
5. Fill Existing Ditch/Temporary Facilities
Future Terminal Expansion $40-87 million (estimated) willenable ILM to meet customers’ needs for
the next 20 years:
Proposed ILM Expansion of Apron, Terminal and Parking includes:
Larger TSA Screening Area
Ten Aircraft Gates
More Retail and Amenities
Baggage Handling
2 Parking Decks ($20 million)
Proposed ILM Terminal Expansion 2018-2033
Observation Area Upgrades:
New and improved observation area to connect community to general aviation and Airport.
Live ATC feed to hear pilots and controllers in action
More improvements to come in the next few months
Finance Director Jim Morton presented an update on financial matters of the Airport:
Revenues up to $13 million reinvested back into Airport
ILM FY14 Capital Contributions:
Runway 17 Rehabilitation
New LED Taxiway Lighting
Runway 17 Land Easements
Runway 24 Ditch Piping
Land Purchase
New Rental Car Facility
New Business Park Road/Infrastructure
New Equipment
New Marketing Initiatives:
Redesign flyILM.com website (Traffic up 34%, Unique Visitors up 48%)
Launch “It’s Not Just a Long Drive” campaign
Develop relationship with local AAA (vacation packages)
Launched new Digital Marketing strategies:
Stronger Social Presence (15,000 likes on Facebook)
Improved customer recovery response time
Digital Re-Targeting Campaign
Pre-Roll Video Campaign
Mobile Boarding Pass Technology
Customer Appreciation Promotions:
Cake Pop Giveaway for Valentine’s Day
Mother’s Day Flower Giveaway
Military “Relax Packs” Giveaway
Partnered in hosting the Southeastern Bonanza Fly-In
First annual Aviation Day and 5k on the Runway
Partnered with NCDOT DOA for Sun N Fun (National Fly-In/Airshow)
ILM Business Park Layout:
Infrastructure Analysis
Sanitary Sewer: Upgrade
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 29, 2015 PAGE 286
Water: New and Relocated
Storm Water: Built and expanded retention basin
Developed new road for accessing parcels
Traffic Impact Analysis
Hotel Feasibility Study
New Flex Space Building:
Currently in design phase
10,000 square feet
Designed for tenant flexibility
7 Bays, 1,450 square feet each
Targeting office, retail, and restaurant tenants
Marketing Strategies for the Aviation Service District Parcels:
Collaborate with Economic Development partners
List the property with a Commercial Real Estate Firm
Update property information on NC Commerce website
List the property on Loopnet.com and Showcase.com
Schedule promotional event to be attended by NC Commerce officials and site consultants
Foreign Trade Zone Application (FTZ)
Attend Aerospace Conference and visit Aerospace Industry
Economic Development Partners:
Wilmington Business Development
NC Southeastern Regional Economic Development Partnership
New Hanover County:
Update A-I Airport Industrial Zoning regulations to include permitted uses such as aircraft
manufacturing and general manufacturing for development of airport property
Airport Director Wilsey concluded with the importance of aviation to the economy:
Aviation is important to a strong economy
Referenced in Garner Report as a major resource and economic driver
The State of North Carolina determined that the 72 airports contributed $25.9 billion throughout the
State from commercial and general aviation activities
108,000 jobs in the State
In 2008 ILM conducted a study:
Provided $641 million locally and 4,500 jobs
New activity from the VA clinic which opened in 2013 = 210 jobs
The County collects taxes on the based aircraft
Aviation services at ILM are important to businesses such as LOB, PPD, and many other small
businesses
Military and tourism benefit from services
NC will provide an update on the Economic Impact Study with new data
ILM’s One-Stop Connections 388 World-wide Destinations:
American and Delta provide one stop service to the world through their network
Connections through four International Gateways:
CLT and ATL are significant hubs for the carriers - important for business and leisure travel
Compliments about ILM’s convenience, outstanding service and southern hospitality
15 miles of highway gets one to the next county while one mile provides access to the world
Current Air Service:
Two airlines to five hubs and four international gateways
1,300 seats per day
American Airlines provides majority of service:
3 LGA flights/day starting June 2015
DCA flight June-September (Saturday only)
Additional flights to hubs for peak summer season
Still working on ORD or DFW
Small Community Grant from USDOT for more than $1 million to start ORD or DFW service:
Four year grant with 2 ½ years to go
Continue to remind American and United about the incentive - challenging endeavor
On the Horizon for 2015:
Maintain self-sufficient budget with low operating costs
Preserve current air service
Redevelop North Ramp to increase general aviation activity (part of master plan)
Recruit air service to Chicago or Dallas for Small Community Air Service Development Grant
(SCASD)
Obtain free trade zone status
Flexible building in business park
Financial plan for terminal expansion
NEW HANOVER COUNTY BOARD OF COMMISSIONERS BOOK 33
SPECIAL MEETING, APRIL 29, 2015 PAGE 287
ADDITIONAL ITEMS OF DISCUSSION
Prices of fuel from the fixed based operators are decreasing and making the prices more reasonable
Two corporate hangars are needed (one corporate fleet)
The old Piedmont hanger needs to be removed/torn down because of its deteriorating conditions and it
is not located in a good location
Discussion on the need and demand to have a flight school/pilot training program through Cape Fear
Community College:
No planes available for training at this time
Costly for pilots to obtain 1,500 flying hours for certification
Discussion of flight to Boston (analysis shows a need in the top ten)
Top requests for Chicago and Dallas
Proposed use for the old general aviation building:
Special use request for aircraft manufacturing
Corporate campus, training
Announcement of bio-technical conference coming to ILM and to be held at Union Station
ADJOURNMENT
Hearing no further discussion, Chairman Barfield expressed appreciation to the Airport Authority members
for their commitment to the Airport and thanked Staff for the update. Chairman Perritt expressed appreciation for
the Commissioners attending the meeting and their support of the Airport. The meeting adjourned at 9:15 a.m.
Respectfully submitted,
Teresa P. Elmore
Clerk to the Board
Please note that the above minutes are not a verbatim record of the
Special Meeting of the New Hanover County Board of Commissioners.