by Mike Sharkey
Staff Writer
It’s a good thing Jacksonville International Airport and its administrative body, the Jacksonville Airport Authority, do a little more than just fly planes in and out of Jacksonville. If they didn’t, like many others in the aviation industry, they’d be broke.
Although it’s starting to slowly rebound, the airline industry has taken a beating since the terrorist attacks of Sept. 11. Entire airlines have disappeared and others have downsized dramatically. With virtually every airport in the country having to adopt strict — and expensive — new security measures, many are struggling simply to stay afloat, never mind make a profit.
All of this has forced JAA to look away from the planes and around the airport for potential revenue sources.
“We are looking at a lot of creative and innovative ways to generate revenue through our business development,” said Authority spokesperson Michelle Branham. “The whole aviation system is embarking on a new time.”
Late last year, JIA was declared by Transportation Security Administration officials the first airport in the nation to meet the baggage screening deadline and carry out 100 percent in-line baggage screening. The system, which uses two massive CTX9000 scanning machines and cost millions to implement, has proven so successful that JIA has become a national model for the system. That distinction has led JAA officials to offer symposiums for other airport officials, during which they offer tours of the system and explain the implementation process.
“We’re so far ahead, it’s a good opportunity to sell our knowledge,” explained director of business development Bingham Parkinson. “We have the next symposium scheduled for June.”
Branham said the baggage handling system at JIA has garnered worldwide attention.
“Once a week it seems that officials from airports from all over the world come in to see our HBS system,” said Branham. “All our quality control efforts have made our system the smoothest in the country. Most are struggling with a hybrid solution. They have stuff in the front and stuff in the back. If you didn’t know we had one, you wouldn’t know it exists.”
While consulting work is sporadic, JAA has already embarked on another venture that assures steady income. By taking over the “Smart-Cart” system, the rentable carts that allow passengers to move several bags at a time throughout the airport or to their cars, JAA figures to gross several thousand dollars a year. There are 8-12 dispensing units and 200 carts. JAA will use already-employed airport personnel to gather the carts when necessary and process the paperwork.
“There are rental and advertising opportunities,” said Parkinson. “We have an internal rental company and we expect to gross about $300,000 a year and net about $250,000 a year.”
The airport is also on the verge of taking advantage of perhaps its most valuable asset — the real estate they own surrounding the boundaries of the airport itself. While much of it is undevelopable and some has been set aside for future runways, the JAA is looking into several development opportunities, including office space and a public golf course. The project is called Woodwings and it promises to be a mix of light industrial and high-end office space.
“The airport owns 8,200 acres and 700 of that is for non-aviation development,” said Parkinson. “The light industrial space would be bordered by [Interstate] 295 and the new entrance road.”
Another future renevue-generating prospect involves completely taking over the baggage handling from the airlines. Right now, airport staff handles that task until the bags get on the tarmac, yielding to individual airline staff. According to JAA executive director John Clark, taking over baggage handling entirely could prove financially smart and help lure new carriers to Jacksonville.
“Several airlines have contacted us about handling the bags,” said Clark, adding the airlines would still handle things like ticketing and boarding. “The idea has not evolved to that, yet. This would be an opportunity to serve carriers that otherwise wouldn’t come to Jacksonville.
“We would put the infrastructure in place and, from a management standpoint, determine how best to manage it. We have formulated a business plan, but we would not staff up until we get the business.”
All of these ideas are ways many airports across the world are being forced to consider in order to stay in business and avoid laying off virtually everyone. However, stressed Branham, they are not a way to line the airport’s coffers.
“The Authority is not here to generate money for our stake holders,” said Branham. “We’re here to be a viable option for our customers. Any money we make is filtered back into the airport system.”