doing business at cvg: business opportunities at the
TRANSCRIPT
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Doing Business at CVG: Business Opportunities at the
Cincinnati/Northern KY Int’l AirportMarch 25, 2015
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Welcome
Candace McGrawChief Executive Officer
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Agenda
Welcome and Introductions CVG Website & Vendor Registration Procurement opportunities Concessions Networking Break Air Service Update Construction & the CVG Master Plan Property Development DBE Certification & its benefits
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Joe HuberDirector Contract & Procurement
DBE/ACDBE Liaison Officer
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cvgairport.com
Business Opportunitieshttp://www.cvgairport.com/bidsProcurement & Concessions
Real Estate & Leasing Opportunitieshttp://www.cvgairport.com/about/biz/land
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Procurement
Diane RussManager ‐ Procurement
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How to do business with CVG
Competitive bid processThreshold of $20K
Advertise solicitation in the EnquirerUploaded to electronic bidding system
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How to do business with CVG
Professional services exceptionNo public bid requirement in KYMay be procured directly with known providersMay be procured through the public competitive process
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Procurement
2015 SchedulePolymer
Industrial Cleaning ServicesGarage Doors ‐ Overhead Doors ‐ Conc A
Conveyance Systems Consultant(1) F450 Dump Vehicle
Stormwater Monitoring System ReplacementOil Cooler (2) for Elevator Room Conditioner
Seating Terminal 3 TicketingBag Claim Furniture ‐ Seating
Air Stairs TruckInternet Service
PRCS MaintenanceHaz‐Mat Responder
Sprinkler & Fire Pump InspectionsFire Training Fuel
Roll Up Doors ‐ Conc A & Conc BGlycol & Stormwater Air Relief Valve Replacement
800 MHz and Non‐800 MHz Radio System Maintenance
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Procurement
2015 Schedule (cont.)ABM (Airport Business Manager) Support
PRCS Software (Build 19)Amano McGann ‐ Pay by App and Pay on FootNatural Gas Commodity & Related ServicesReplacement Actuators (Rotork) for DeiceReplacement Parts for Stormwater Valve
Radio System Upgrade/Replacement Program ‐ Phase 2Crack Sealant
Polyethylene BagsDeicing Fluid
Trucking Service ‐ Snow HaulingRental of 4‐Wheel Drive Rubber Tire Loaders
Runway & Taxiway Deicing Compound/Anti‐Icing MaterialCutting Edges
Snowbroom Refill CoresUrea Ammonia Nitrate
Phosphoric AcidPaper Roll Towels & Toilet Tissue
Air Filtration Filter Material
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Procurement2016 Schedule
Medical Billing ServiceAqueous Film Forming Foam (AFFF)
Asphalt – MaintenanceWater Blasting ServicesRunway Marking Paint
Glass Beads FAA Type IV‐BLawn Maintenance & Bush Hog Services
Fire Training FuelDiesel Fuel (On‐Road & Off‐Road), Gasoline and Bio Diesel
Diesel SupremePolymers
Laundry / Dry Cleaning Services Bulk Deicing Rock Salt
Deicing FluidTrucking Service ‐ Snow Hauling
Rental of 4‐Wheel Drive Rubber Tire LoadersRunway & Taxiway Deicing Compound/Anti‐Icing Material
Snowbroom Refill CoresUrea Ammonia Nitrate
Phosphoric AcidPropane (Bulk & Cylinder)
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Concessions
Dave KellermanSr. Manager Concessions
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ConcessionsRequest for Proposal Process – Long Term
Lease OpportunitiesRFP timeline Start to finish:
Initial Concept research Summary of opportunity forwarded to interested concessions listAdvertised in the Enquirer & RFP posted onlinePre proposal meeting & site visitProposals submittedProposals evaluated Recommendation to Committee and Board
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Concessions
Short Term License Agreements Opportunity to test concepts RFP process is not requiredUsually used for short term situations If concept is successful then an RFP would be released to obtain a long term agreement
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Concessions
Upcoming Opportunities
Concession Request for Proposals Ice Cream/Candy/Bakery (Second Quarter 2015) News and Gift/Specialty Retail (Third Quarter 2015)
Recently awarded Fast Casual Restaurant (Smashburger) Common Use Lounge (“The Club at CVG”) Candy Concept (Natalie’s Candy Jar)
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Concessions
Construction/Supplier Opportunities Concessionaire responsible for all Capital investments, hiring construction contractors
Selected by Concessionaires Corporate office Interested Construction/Supplier List Follow legal notices, CVG website for upcoming opportunities
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Concessions
Additional Support Opportunities Floor CleaningWindow Cleaning Electrical/PlumbingCarpentry
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Networking Break
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Air Service
Adam KresslerSr. Manager – Air Service Development
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CVG IND CMH SDF DAY LEXNon Stop Markets
57 35 32 20 15 13
Peak Day Departures
168 145 144 87 63 37
Average Daily Departures
141 134 131 72 57 32
Marketing Carriers
9 8 7 5 5 5
More Non Stop Markets, Peak Day Departures and Carriers than any otherTri‐State Region Airport
CVG is the Tri‐State Region’s Leading AirportCDG
LegendCVG – LegacyCVG – LCCDAY/IND
Peak Day and Average Daily Departure counts are based on the flight schedules for May 2015 as of January 5, 2015. The number of Non‐Stop Markets and Marketing Carriers are based on flight schedules loaded for the period between June 2014 and May 2015 as of January 5, 2015.
Source: Diio Mi, January 2015 and Vacation Express 2015 flight schedule card.
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DHL employs nearly 2,400 at CVG Processes 2.6 million cargo pieces a month and sorts 92% of all
US delivery shipments as well as all Canadian, Mexican, and LatinAmerican shipments at CVG
Connects over 100 service centers and international gateways inDHL’s International network in the U.S.
Global Super Hub for DHL
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Source: CVG Airport Statistics Landing Reports
Landed Weight TrendMonthly Landed Weight Totals March 2013 through February 2015
Diversity of operations stabilizes airport financials and continues to supportlow airport cost of operations
54%
46%
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Year over Year Enplaned Passenger Improvement in last fourteen reported months
YOY Percent Change FEB 2013 – JAN 2015Total Enplanement Trend
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Year over Year O&D Improvement in twenty‐two of of last twenty‐four reported months
YOY Percent Change FEB 2013 – JAN 2015
Local Origin & Destination Trend
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Year over Year Cargo Improvement in all but two months since January 2010
YOY Percent Change MAR 2013 – February 2015
Total Cargo Trend
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YOY Percent Change JAN 2005 – Jul 2015
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Monthly Seats Trend
110 consecutive months of Year over Year negative change
August 2005 October 2014
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OVER 30 NEW MARKET OR EXPANSION ANNOUNCEMENTS
New Service AnnouncementsFrontier Airlines• February 2014 – Trenton (discontinued)• September 2014 –Washington‐Dulles • October 2014 ‐ Dallas Ft. Worth, Ft.
Lauderdale, Orlando, Las Vegas & Phoenix • April 2015 – Ft. Myers & Atlanta
Allegiant Air• February 2014 ‐ Ft. Myers/Punta Gorda &
Orlando‐ Sanford• May 2014 –Tampa/St. Pete & Myrtle Beach• October 2014 – Ft. Lauderdale• November 2014 – Phoenix‐Mesa• December 2014 – Las Vegas• February 2015 – Jacksonville & New Orleans• May 2015 – Savannah/Hilton Head (seasonal)• June 2015 ‐ Austin
Vacation Express• August 2014 ‐ Freeport
Ultimate Air Shuttle• July 2014 ‐ Chicago‐Midway
Branson Air Express• May 2015 ‐ Branson
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January 2014 June 2015
Frontier Weekly Departures
Frontier Expanding Service at CVG
• Initiated CVG service in May 2013 with 6 weekly flights to Denver• Effective April 30, 2015, Frontier will be operating 59 weekly flights to 10 destinations• Offers daily service to Atlanta, Denver, Dallas, Ft. Lauderdale, Las Vegas, Orlando and Ft. Myers• Current schedules indicate Frontier will account for 10% of CVG total departing seat capacity in
June 2015, up from 3% in June 2014• Average load factor of 88% for the 12 months ending November 2014
HIGH LOAD FACTORS DEMONSTRATE MARKET STRENGTH
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• Initiated service in February 2014 with four weekly flights to two destinations• Announced six new markets in 2014 and two new markets to‐date this year• In the summer of 2015, Allegiant will operate 38 weekly flights to 10 destinations• Current schedules indicate Allegiant will account for 8% of CVG total departing seat capacity in
June 2015, up from 2% in June 2014• Average load factor of 90% for the 12 months ending November 2014
January 2014 June 2015
Allegiant Weekly Departures
WEEKLY FLIGHT ACTIVITY INCREASING FROM 4 TO 38 IN LESS THAN 18 MONTHS
Allegiant Expanding Service at CVG
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Development Construction Opportunities
Barb SchempfVP Planning and Development
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Near Term Proposed Construction Projects2015 - 2016
Planning for our Future: 2035 Master PlanOverall Development Plan
Overall Development Plan KCAB relocation projects T1/T2 demolition projects
Enabling projects Apron rehab projects Wendell Ford Blvd. extension project Non-airfield road rehab projects Long-term parking lot rehab project East service road rehab project Airport structures: rehab projects Fiber projects
Terminal Area Development Plan Passenger facility refurbishment projects Terminal roadway, curbside, and parking
improvement projects
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3232
Terminal Area Development Plan Future Proposed Construction Projects Beyond 2016
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Property Development
Susan SalletSr. Manager ‐ Property & Leasing
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Cincinnati/Northern KentuckyInternational Airport
Commercial Business Development
March 25, 2015
Land DevelopmentThird Party Development
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Land Development SitesNon‐Aeronautical – 600 Acres
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Site 3AAccess Agreement & Letter of Intent
“Due Diligence Period”
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Site 3A – Proposal DevelopmentIndustrial/WarehouseBuilding A – 416,000 SF Building B – 390,000 SF
37
47 Acres
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Site 6AAccess AgreementTed Bushelman Blvd.
38
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6AIndustrial/Warehouse Bldg.
522,830 SFTed Bushelman Blvd.
39
30 Acres
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6B‐W – Access AgreementBuild‐to‐Suit
Commercial Retail Facility ‐ 50,000 SF
40
7 acres
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6B‐E ‐ Access Agreement Ted Bushelman Blvd.
Build‐to‐Suit Industrial/Warehouse Building
175,000 to 200,000 SF
41
20 Acres
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Site 8 Terminal Dr. /Donaldson Hwy.
70 Acres
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Site 7 – North Bend Rd.1.7 to 2.7 Million SFAccess Agreement
“Due Diligence Period”
320 Acres ‐ Industrial/Warehouse
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Aeronautical Sites5 Sites – 200 Acres
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Development:
Hangar
MRO
FBO
Air Cargo
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Thank You!
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DBE/ACDBE Certification
About Us ‐ Diversityhttp://www.cvgairport.com/about/career/diversity
Business Opportunities – DBE Programhttp://www.cvgairport.com/about/biz/DBE
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DBE/ACDBE Certification
Basic Requirements for Certification For‐profit small businessAt least 51% owned by one or more individuals who are both socially and economically disadvantaged
Management and daily business operations controlled by socially and economically disadvantaged owners
Meet personal net worth and / or gross receipt limitations http://transportation.ky.gov/civil‐rights‐and‐small‐business‐
development/Pages/default.aspx