AAE Communications and Marketing

• 1. Registering their political affiliation as “Independent,” rather than affiliating with a particular political party.
• 2. Clearly understand their authority and when decisions must go before the governing body, especially in the areas of purchasing, negotiating and signing leases and user agreements and personnel decisions.
• 3. Speaking on behalf of the airport and the elected officials rather than expressing their own opinion.

Consent agendas are a bundle of items that are voted on, without discussion, and as a package. The agenda items typically do not need additional discussion and are only discussed if a governing official (e.g., board member), requests that an item be pulled off the consent agenda and placed on the regular agenda.

The regular agenda allows topics to be discussed in a public forum before the governing body votes on it.

• 1. What is the airport actually going to market to which market segments
• 2. How much marketing should be expected of the airport’s tenants
• 3. Should an airport, as a public entity, even do marketing; shouldn’t it justbe there to provide a public service
• 4. What do the Grant Assurances say about using airport revenue for marketing purposes
• 5. How much money should the airport spend on marketing
• 6. How should we measure the effectiveness of marketing efforts?

Essentially, while an airport can use its revenues to benefit theairport, it cannot use its revenues to benefit off-site non-aeronautical locations; however, there are some gray areas to this policy. For example, an airport could not launch a marketing campaign using airport revenues to promote a local amusement park or entertainment venue, but could promote the airport as being a location that is close to or has good access to such a venue.

The plan takes into consideration product and service mix, pricing, promoting, and means of distributing or delivering the services or products to be offered. A marketing plan must also consider the strengths, weaknesses, opportunities and threats (business risks) described in the airport’s strategic plan. The marketing plan establishes short and long term goals,takes into account the competition, the political, economic and social climate, discusses alternative strategies, and sets forth an implementable program as related to aspects of airport marketing, sales, and promotion.

(a) the market analysis, (b) objectives, (c) situational analysis, (d) marketplace issues, (e) the“marketing mix,” (f) implementation plan, and (g) feedback processes to help measure the effectiveness of the plan.

• Market analysis attempts to (a) confirm or discover existing and new competitive advantages, (b) determine whether the market is growing, stable, or volatile and (c) identify core competencies, benefits, and features that the airport must have orattract customers.
• Market analysis is a very indepth process that includes defining and analyzing the market through a variety ofmethods – market analysis is both an art and a science.
• Market analysis evaluates (qualitatively and quantitatively) the potential customer base, buying habits,available cash-flow, customer perspectives, and hidden opportunities. The marke tanalysis helps determine if there is a need or audience for your service or product.In a market analysis there are two basic types of research, primary and secondary. Primary research may include surveys, focus groups and interviews. Secondary research is research that has already been conducted and can be accessed inlibraries, chambers of commerce or economic development agencies, and online

It is a brief description of theproduct or service to be marketed linked to associated goals. Some airport objectives may be to promote a new service such as an FBO, restaurant, or scheduled service, or to promote available land or lease space.

Strengths-Weaknesses-Opportunities-Threats (SWOT)

• 1. Product/Service: what is unique about our products or services and whatmotivations exist to make the purchase(s)
• 2. Place: What is favorable about the airport’s location (geographic anddemographic)?
• 3. Price: how are prices perceived and how do they compare with competitorpricing?
• 4. People: what are the important demographic characteristics of those whocomprise your primary target market? Secondary market(s)? What problems do clients believe you are helping them solve (i.e., features and benefits)?

Marketing mix section focuses on promotion: what methods will you use to communicate your product or service to the consumer? Thisincludes methods the Airport Executive will use to advertise (print and broadcast media, Internet, etc), the advertising budget and how the airport will evaluate whether the marketing methods are effective.

The implementation plan addresses the short-term and long-term strategies and tactics to be used in the marketing campaign along with the allocation of time and budget.

• It answers seven essential questions:·
• who you are ·what business you're in ·for whom (what people do you serve) ·what's needed by the market you serve ·against whom do you compete ·what's different about your business ·what unique benefit is derived from your product or services?

The feedback or assessment phase discusses the evaluation processes to be used to determine if the marketing strategies are working. Like market analysis, this isoften a difficult task and often more an art than science. Typical metrics used include increases in leased space, passenger traffic, or aircraft.

Branding means attaching your product or service with a memorable image or toa feeling your customers have when they hear your airport’s name. With the onslaught of other advertising people tend to select something to believe in, andthen hold onto that feeling until being forced to change.

Positioning is the way you present your product or service that helps youstand out from the competition. It’s about how you want customers toremember you. Positioning requires focusing on only one or two dimensions in which you can claim to be “first.”

“Air service development” (ASD) is a broad term that encompassesactivities with the ultimate goal of retaining existing air service orimproving air access and capacity in order to develop the economy of acommunity or region ...“Air service development” refers to the organizedactivities that an airport and/or its affiliated communities undertake withthe ultimate goal of retaining existing air service or improving air accessand capacity in order to develop the economy of a community or region.

Air service developmentnot only includes the attraction or expansion of existing air service, but also theretention of existing air service, adding new service destinations, lowering fares,improving service reliability and upgrading aircraft.

Effective management of ASD includes an understanding of what is important to air carriers, the desires, character and economic drivers of the community and often the recruitment of local community and business leaders to be able to sellthe community to the airlines. ASD also involves an understanding of existingair fares and services to similar and nearby communities, airline revenue structures and the financial and non-financial incentives the airport and community can offer to the airlines, so that an effective presentation can be made to an airline. That said, success is never a guarantee in ASD.

• Runway length and the availability of adequately sized terminal facilities are key issues for air carriers. Air carriers are unlikely to fund improvements at the airport in order to operate, however, funding may be available from other sources such as the FAA through the FAA Capital Improvement Plan (CIP) program, particularly if the FAA is in support ofadding or expanding air service.
• Market research should be conducted to determine the current route deficiencies and if consumers are paying airfares that are too high, or there is a lack of serviceor lack of nonstop service. It is not unusual for passengers to drive 1-2 hours toanother airport that has lower airfares, or has service to a destination that theirlocal airport may not.
• The final component of an airport’s assessment is to determine the “leakage,” which is a measure of when passengers choose to fly from another, competing airport in the region.(Reverse leakage is a measure ofpassengers gained at an airport that could have selected another airport for their travel plans.)

Money is a key element in assessing the ability of an airport to sustain an ASD program. Airport revenues can be used provided the money is not used to promotethe local community. Outside revenue sources from private corporations, hotels,resorts, convention/visitor bureaus and area attractions that depend on tourism andthe travel industry can often provide additional revenue, resources and personnelto support an ASD program.According to an ACRP report “the greater the involvement of private corporations in your ASD efforts, the greater the likelihood of success in retaining existing orattracting new service...ASD efforts must rely on a task force that includes other local professionals and outside consultants”

Airlines decide whether to enter new markets based on the prospect of those new operations to generate profit. Route planners assess market size and forecast other elements, such as demand from frequent flyers. The actual formula for aprofitable route is far more complex. Other elements that air carriers consider are demographics such as economic data (per capita income, employment), airport operating costs, congestion at the air carrier’s existing facilities, incentive and limits on gates, and runway availability.

The airport is the fundamental stakeholder in an ASD effort and as such can provide perspective and direction to the ASD team. Airports should also look at what may be within their control to help the ASD effort, such as user fees, lease rates, gate fees, counter and office space rental and the costs of servicing theaircraft at the airport. While elements such as airfield costs may be under an airport’s control, what is not under the airport’s control are factors such as national and global economies, population changes, national fuel prices, wars, and disasters.

Challenges to small community ASD come in the form or proximity to legacy carrier hubs and the physical limitations of the airport such as runway length and strength. The loss of travelers to nearby airports (leakage) is compounded by the fact that most small commercial service airports are within 100 miles of a largehub airport or airport served by a low cost carrier. Passengers will drive the distance to the larger airport for the perceived (or actual) benefit of more non stop flights and more flight options. Another consideration is “reverse leakage,” whichis when travelers are pulled from another airport’s catchment area (the geographic region served by an airport).

• Grants are avaliable through Small Community Air Service Development Program.
• To be eligible for a grant, the community must not be larger than a small hub airport, and have insufficient air carrier service or have unreasonably high airfares.Grant funds can be used to cover the expenses of any new advertising orpromotional activities that can reasonably be related to improving the air serviceto the community. Funds may also be used for new studies designed to measureair service deficiencies, or to measure traffic loss or diversion to other communities, or for the employment or use of new, dedicated air servicedevelopment staff on a long-term basis, advertising or public relations agencies, universities, and consulting firms.In addition, grant funds may also be used for financial incentives, including subsidy or revenue guarantees, to air carriers in conjunction with their provisionof air service or the fare levels charged, or to ground service providers in providing access to air transportation services. The statute limits the use of grant funds for air carrier subsidy to a maximum period of three years. That same limitation applies to revenue guarantees and other forms of ongoing financial support for air carrier operations.

An assessment (or periodic review) ofthe airport and the region’s existing air services including scheduled and charter flights.

• The assessment should determine both destinations and load factors.
• The next step is to determine how passengers arrive at their destinations by looking at the number of nonstops vs. circuitous routes, which adds to travel time.
• Flight times, frequency and total travel time are also assessable elements. Business travelers generally prefer early morning and late afternoon flight times whereas leisure travelers havefewer concerns about times of flight during the day, but are more concerned about the cost.
• The type of aircraft can affect the traveling public’s perception of the quality of service.
• The geographic reach of the airport’s service area defines the airport’s catchment area. The catchment area encompasses the geography that various market segments demand travel to.

There are several incentive programs airports and communities use to attract airservice, including minimum revenue guarantees, waivers, marketing and advertising, nonfinancial, ground services handling, and retaining consultants.

Cost related ASD techniques include waivers of fees, discounted landing fees during promotional periods, cash subsidies, reduced terminal rent, gates,assistance with ground handling expenses, and breaks on local hotel cost for crew lodging.Waivers are appropriate when trying to attract new service where profitability is uncertain.

• 1. Local economic and demographic data;
• 2. Details about local businesses and travel habits (business activity,employers, employment, travel demand, financial support from the business community);
• 3.Local civilian, government and military facilities (areas largest government and military facilities, staffing levels, growth plans, militarycorporaterelated inbound traffic and outbound traffic to other facilities,particularly the airline’s hubs and major cities);
• 4.Local tourist attractions the drive inbound leisure traffic (names and descriptions of areas prominent hotels, conventions, prominent touristattractions, ratio of domestic v. international demand, financial supportfrom the tourism industry).

• 1. Proposed schedule (flight times in the target market, hub connections);
• 2. Aircraft type (seating capacity and configuration);
• 3. Comparison to similar markets;
• 4. Operating assumptions (O&D traffic forecasts and variables);
• 5. Financial assumptions (airfare projections and adjustments and cost projections and adjustments);
• 6. Forecast operating results (local and connecting passengers, number of departures, Revenue Passenger Miles (RPM)J and Available Seat Miles(ASM)K, projected load factor, airline’s market share);
• 7. Forecast financial results (daily and annual passenger and freight revenues, expenses, profit, cost per Available Seat Mile, breakeven loadfactor);
• 8. Financial sensitivity analysis (projection of potential changes in revenue available seat miles and Cost per ASM.

A standard presentation to the airlines should include an overview of the proposal, the core demographic and economic information including catchment area, local business development, air traffic trends, route opportunities, incentive program,airport development, and planned improvements.

• Public Relations (PR) is the art and science of establishing relationships between an organization and its key stakeholders. Airport public relations plays a key role in helping airports create strong relationships, promote the benefits of aviation to the community, promote air service and airport businesses, and, when done correctly instill public confidence in the airport’s ability to handle crises.
• Airport public relations include media relations and customer relations.

Public information consists of the processes, procedures, and systems to communicate timely, accurate, and accessible information on an incident’s cause,size, and current situation to the public, responders, and additional stakeholders (both directly affected and indirectly affected).

The first is when the airport desires to promote products, services or special activities. The second is when the airport must respond to a crisis - whether a political crisis within the management of theairport, or an aircraft incident or accident.

A primary reason for failed PR is when individuals that are not experienced inmedia outlets and journalism are charged with managing PR programs. Public relations experts with experience in journalism are better able to understand whatthe news media is looking for in terms of their readership and reporter’s perspectives.

A story is considered newsworthy if there isconflict, if there is controversy, if it is happening now, if it affects a significant number of people (i.e., impact) and if it’s nearby (proximity). If a story is prominent (highly visible people in the community), if it’s unique, if it has ahuman-interest component and if there is sound, photos or video available, then ithas the capacity of being newsworthy.

In contrast to a paid-for advertisement, “earned media” is information that the airport’s PR agent or staffer “pitched” to a reporter and subsequently earned the coverage, for free. Much content in daily newspapers started as a pitch from apublic relations person.

Respecting deadlines develops a positive working relationship with the media. If you miss deadlines, the media will go to alternative sources for this information – and those sources are usually sources that may be inaccurate or may even have a personal vendetta against the airport.

Establishing proactive relationships with key mediarep resentatives in the community is fundamental to successful media relations.

Similar to a marketing plan, amedia relations plan provides focus to the airport’s purpose, objectives, goals, and branding. Without a plan, public statements or promotional announcements couldwork against fulfillment of the airport’s marketing and business objectives.

• However, if an airport is going to issue a news release or “press release,” then it should be very concise and not based on “fluff” or sales promotion. It normally should be no more than one-page long and not include the entire story but rather just the highlights that will be of direct interest to the targeted audience.
• When writing a news release, compose or select content by considering theperspectives of the journalist or media service that will release the content. Explain why the information or activity is important and give the media an easyway to get in touch with the appropriate contacts at the airport – usually your PR representative.
• News releases can be used to announce a new service, like air carrier routee xpansions or new air carriers, to respond to a timely situation, discuss a new development, and present the airport’s perspective regarding adverse or conflictsituations.

• 1. Sudden emergencies
• 2. Creeping crisis
• 3. Predictable crisis
• 4. Crisis caused by improper decisions
• 5. Cyber Crisis

Sudden emergencies, such as natural disasters and airplane accidents or incidents require an immediate response to protect lives and to the extent possible, save property and mitigate the incident. After the physical danger has passed or is being addressed, appropriate PR begins with providing explanations of what happened that are based as accurately as possible to factual data and information,and not on conjecture. This is part of repairing and regaining the trust of the community.

Creeping crises can include employee lawsuits, and regulatory violations. The crisis may have initially begun as a small claim, but grows in severity since it was not handled correctly in earlier stages.

Predictable crises are ones that the airport operator can anticipate, such as a possible airline labor strike with an up coming expiration of a union contract, or community protests over the airports policies on wildlife or environmental management.

Crises caused by improper decisions often emanate from an airport employee or sponsor by someone not understanding the total complexity of a situation. This category overlaps issues related to human factors. For example, a lack of training or medical condition can lead to improper decision making that creates a crises.

Cybercrimes (Cyber Crisis) include “attacks,” by bloggers or those using the Internet to set up sites that oppose the airport management or the airport, or evenan inadvertent but complete shutdown of the airport’s e-mail, or IT systems. With malicious attacks, many times the information posted by these individuals is not accurate, meaning that the airport must be able to respond with the “truth,” assoon as possible in order to mitigate the damage. Attorney’s can also become involved as they would with any potential libel issues.

• The first step in crisis management is to be prepared before the crisis occurs.
• A crisis communications plan should also be constructed that includes the notification list of key personnel who should be immediately notified of a crisis, their contact information and the immediate steps that should be taken in acrisis.
• An airport spokesperson should be identified and this individual should not bethe airport director or top city elected official. Company policy should instruct employees to direct media inquiries to the designated spokesperson.

The function of the PIO is to collect, verify, and disseminate information to the public through effective communication with the media that will help citizens make decisions about their health, safety and welfare.The PIO is responsible for interfacing with the public and media and/or with other agencies with incident-related information requirements. The PIO develops accurate and complete information on the incident's cause, size, and current situation; resources committed; and other matters of general interest for both internal and external consumption.

News media outlets will typically seek standard information consisting of the“who, what, when, where, why, and how” as related to a news story.

• 1. How long will the event last?
• 2. How many media are likely to attend?
• 3. What logistics will be needed?
• The larger the event, the more media will arrive – plan the staging area accordingly.On scene, the media will want to know how close they can get and where they canfind access to newsmakers or persons in charge of the scene. They will want an explanation of the “big picture,” and at large-scale events, they will want ongoing status reports. From a logistics perspective, the media will want access torest rooms and indoor work space; for large-scale incidents information on they may also request to know the locations of the nearest, gas stations, restaurants,and lodging.

Media, Stakeholders, Employees, Elected officials, Regulatory Offcials

1. Be Cooperative 2. Provide Control 3. Demonstrate Caring and Concern 4.Demonstrate Competence 5. Be Credible 6. Be Consistent7. Be Clear 8. Be Concise 9.Keep Current 10. Act with Calm

1. Do not ever talk off the record; 2. Do not say “no comment”; 3. Do not say anything, whether you believe the cameras or recorders are offor not, that you don’t want repeated on the air and a million times later onYouTube; 4. Do not take the questions personally or become offended; 5. Do not assume an interview is a conversation; 6. Do not make up answers, if you don’t know the answer, say so; 7. Do not lie; 8. Do not go out in front of the press unprepared.

Primarily, that the airport acted responsibly, thatthe airport is concerned about the people involved, that there was a plan and it was followed to the extent possible, and that steps are being taken to either prevent a recurrence, or mitigate future problems (when possible). Keeping in mind that the audience is not knowledgeable in aviation, PIOs can useanalogies and illustrations to make their point. Avoid negative sound bites and unless it serves a message the airport is trying to support, avoid repeating areporter’s question when possible.

1. Have a plan in place: Don’t learn on the job;2. Have a team in place: Assign duties before disaster strikes;3. Designate a single spokesperson;4. Designate a media coordinator: cater to the needs of the media;5. Keep your website updated – this is the first place the media looks;6. Develop key messages: stay on message; stay calm;7. Meet with media regularly: keep the lines of communication open;8. Maintain an media list and log: Know who you’re talking with and when;9. Remember your audiences: the media also speaks with employers,neighbors, government, etc.;10. Be human: show concern and compassion while maintaining integrity.

• 1. A government agency points out deficiencies relating to health and safety;
• 2. The issue is significant enough that it is distracting the airport from conducting normal business;
• 3. This is a recurring issue in the media that does not appear to have been adequately addressed in the past;
• 4. This is a known issue that controversial as part of the airport’s history;
• 5. Recognizing that there will be a strong negative reaction to the story by the airport’s users;
• 6. There are legal elements involved;
• 7. The issue appears to be gaining momentum;
• 8. If this issue is ignored, negative consequences will result.

Airport Executives, transparency implies conducting business as if every decision,e-mail and business transaction will be scrutinized by media in a public forum.Some current issues important to transparency include executive compensation, the environment (especially noise abatement and wildlife), wetland and historical site preservation, airport development, commercial service, and the impact of larger jets or more aircraft traffic.

Its economic impacts and its transportation benefits.

Economic impacts are the regional economic activities, employment, and payrolls that can be attributed, directly and indirectly, to the operation of a local airport. They describe the importance of aviation as an industry.

Direct, indirect, and induced impacts.

Direct impact is the airport related dollars that are generated directly as a result of airport employment and the operation of airport businesses. It can be readily identified as those expenditures made by the airport and its businesses and which would not occur if the airport did not exist. These impacts are primarily calculated by determining airport employee payrolls, the amount of goods and services purchased by the airport businesses, the expenditure on capital improvement projects, and the payment of taxes from airport activity.

Indirect impact measures the economic activity associated with the dollars spentat the airport and in the community by airport patrons who use the airport. Peopleusing the airport as employment or access to a community invariably spend money in the community. Measurement of those expenditures is factored as an indirect benefit. Another indirect impact is generated from businesses that have chosen to locate in a community because the airport is integral to their operation, such as a travel agency or car rental business or a manufacturer needing overnight courier service.

Direct and indirect benefits comprise the primary economic impact of the airport. This represents the net economic impact to the community in terms of dollars spent. The direct and indirect impacts are important, but still do not represent the total economic impact to a community that is attributable to the airport. Rather,there is a further induced impact, which is added to the equation. Induced impact attempts to measure the multiplying effect of successive turnover of the dollars spent in the community.

The multiplier effect is an economic principle that recognizes that every dollar expended by an airport patron in the community is further recycled or channeled throughout the community to generate additional income or revenue. For instance,an airport construction project results in the expenditures to a local constructioncompany. The company hires additional employees and together each makes purchases in the community. The increased demand for goods and services resultsin additional employees being hired and goods being purchased. The cycle then repeats itself. Multipliers vary throughout the country, but typically they are 2.0for gross sale items, 1.75 for payroll sums, and 2.0 for employment. The induced impact, therefore, is the primary impact times the applicable multiplier.

The economic impact study is a tool frequently used by airport operators, planners, and regulatory agencies to measure the economic value that an airport contributes to its local and regional surroundings. It has become one ofthe standard airport planning documents, along with theairport master plan update, noise compatibility study, andrequired environmental documents. The traditional methods used in airport economic impact studies are based on guidance material provided at least 20 years ago. These methods, which focus on applying multipliers to airport jobs and visitor spending, may be inadequate today for capturing the unique value of an airport to its community.

Transportation benefits are the services that a community hopes to obtain by developing and maintaining an airport. They differ from economic impact in that they are less tangible in nature. They are reflected in the value of time saved and costs avoided by users of the air transportation system or in the enjoyment or entertainment value one receives from flying.

• Ensure that making a complaint is as easy as possible:· treat the matter seriously from the outset, whether you contact us by comment card,telephone, letter, fax, email, or via the website;·
• deal with it promptly, politely and, if possible, informally;·
• include in our response an apology where we accept we have got things wrong,and where appropriate, an explanation of how things went wrong and how we willimprove our performance in future;
• and· record the complaint on our complaints monitoring system.

• The Aviation Disaster Family Assistance Act of 1996 (ADFA) requires theNTSB to coordinate the disaster response resources of federal, state, local, and volunteer agencies, such as the Red Cross and Salvation Army. Their staff ofdisaster responders works with the airline to meet the needs of aviation disaster victims and their families. Family counseling, victim identification and forensic services, communicating with foreign governments, and translation services are afew of the services the NTSB coordinates.
• The Office of Transportation Disaster Assistance (TDA)R provides informationto family members following the accident. While on-scene, TDA personnel conduct briefings and provide updates on the investigation to family members.Once the on-scene phase of the investigation is over, TDA is the primary resourcefor information for family members as the investigation proceeds.

Demonstrating caring and concern means to convey to the media the sincere concern the organization has for the people that may be affected by the crisis. Any perceived callousness may create a negative impression that may influence future working conditions. A top priority for caring and concern should be to lookafter the victims and ensure family members issues and concerns are beingaddressed to the best of the organizations’ ability. After any tragedy, the media will actively seek a family member of a victim to interview as a way to determine the airport’s treatment of victims and related family. If the victim or family member reports that the treatment is not consistent with the actions or information message being demonstrated or disseminated by the airport, then that inconsistency will be the next story amplified by the media