go airport express

GO Airport Express

Airport Concession Agreements & Long Term

Investment Strategy

Railroad Transfer Service

Parmelee Transportation 1853 – 1955– Regulated by state– Contract with Railroad Board

Airport Ground Transportation• Continental Air Transport 1938 – 2008

– Regulated by State– Concession Agreement – City of Chicago

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

Connecting the Airports with the City

• Ability to meet fluctuating demand– Convention business

has many peaks and valleys.

Chicago MarketQuarterly Demand

1Q 2Q

3Q 4Q

Chicago Market

Daily Ridership

0

1000

2000

3000

4000

5000

6000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

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

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

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.

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.

Emissions

• Fewer Vehicles at curb reduce unneeded emissions.

Load Factor

• Fewer vehicles at curb increase the number of passengers per trip and lessen the number of trips operated.

Revenue Per Trip

• Greater load factors generate lower fares and higher revenue per trip.

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.

Investment Required

• Vehicles• Maintenance

Investment Required

• Communications– With Driver

• Dispatch System• Radio• GPS• Mobile Data Terminals (MDTs)• DriveCam

Investment Required

• With Customer– Website– Reservation System– Ticketing System– Phone System– Ticket Kiosks

Investment Required

• Branding– Providing Recognized

Consistent Quality Service

Recognizable NameEasy 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.

Quality of Service

• How Soon?– Frequency

• How Long?– Number of Stops

• How Much?– Fare

Quality of Service – Creating the Experience

• Training– Safety– Customer Service

• Weather- Sight- Bite

Quality Service – Creating the Experience

• Providing Added Value– Historical Fact of the

Day– Giving out Lottery

Tickets– Offering Discounts at

Local Sights.

Fact of the Day September 15, 2008Chicago 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 .

Quality Employment

• Drivers, Ticket Agents and Reservation Agents– Valuing Front Line Personnel

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.

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.

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

Long Term vs Short Term Strategy

• Building Customer Loyalty vs Creating a One-time Rider

Long Term vs Short Term Strategy

• Investing in state of the art technology vs getting by with what one has.

Long Term vs Short Term Strategy

• Making a larger investment that requires a long term payback.

Long Term vs Short Term Strategy

• Investing in the Community vs. taking the money and run.

Long Term vs Short Term Strategy

• Employees being vested in their job vs. Employees wanting a better job elsewhere.

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.