Worcester Regional Airport is currently in the middle of second 6 month extension starting January 1st, 2008 of their operating agreement with MassPort, where 32% of the operating losses incurred at ORH is paid by the City of Worcester.  Currently between their portion of the operating losses and the debt service the City of Worcester pays approximately $1,500,000 from the General Fund to balance the banks. 

Leigh Fisher Associates: They are putting together our 20 year Master Plan.  The final plan is suppose to be released in the Winter of 2007.  Although the study cost approixmately $400,000, 90% was picked up by the FAA and 10% by the Massachusetts Aeronautics Commission.  In December of 2006, the last community meeting was held.  I believe Leish Fisher Associates has been working on this for so long ( 3 years) that they have been bought out and are now called Jacobs Consulting.  As of March 17, 2007, we are still awaiting the final draft of the Master Plan and the final results are suppose to be issued during the summer of 2007.   As of April 10, 2008, the Master Plan still has not been released.

IMG:   DONE!!   A copy can be found at Official City of Worcester Web page under the reports tab on the left side.  Highlights of the study include the fact ORH should focus on cost-conscious direct service for the leisure traveler (in particular Florida), free parking should be provided at ORH, closure would not be good for Worcester, privatization would be a tough sale but a operating agreement with a private party with a term of 5-10 years, ephasizing the recruitment of commercial service has a  possibility. 

New England Regional Air Study Plan:  Final results issued October of 2006 and can be found on the website. This is the plan was put together by the New England Council to study how best to optimally utilize all the airports in co-ordinated fashion.    Although it forecasts tremendous passenger numbers by the 2020, ranging from 275,000 to 550,000, it does not provide any specific recommendations on how to get there other then various infrastructure improvements.

Annual Operating Deficit

Fiscal Year Ending

2007                        -1,520,762

2006                         -2,300,000

2005                         -1,920,586     

2004                         -2,288,131

2003                         -2,378,854

2002                         -1,938,700

2001                         -1,172,206

2000                            -948,439

1999                         -1,148,082

1998                         -1,120,434

     

Current MassPort agreement with the City of Worcester has been extended in 6 month increments at the same percentage (68% of the operating deficit paid by MassPort), until a final decision can  be made with the future of ORH.

July 1, 2006  -	June 30, 2007	68% covered
July 1, 2005  -	June 30, 2006	85% covered
July 1, 2004  -	June 30, 2005	100% covered

    

Old Agreement between MassPort and the City of Worcester

Privatization

In April, 1998, New York State selected the U.K. firm National Express to lease Stewart Airport for 99 years. Stewart thus became the first U.S. airport to be fully privatized and the first participant in the FAA’s airport privatization pilot program to complete the process.

National Express Group PLC   offered $35 million in cash up-front, plus a percentage of airport revenues. Its bid was judged superior to those of the other four finalist teams: American Port Services (Baltimore), D.M. Airport Developers (Morristown, N.J.), Airport Group International (Glendale, Calif.), and LCOR / Schiphol Airport (New York City).

National Express since taking over the airport has completely turned the airport around and last year decided to sell the 93 years remaining in the lease.   The Port Authority of New York and New Jersey pad 78.5 million for the remaining terms of the lease.   Invite National Express to ORH yesterday!!!! 

National Express, the former British government intercity bus operator, is also a privatized company. It was privatized in 1988 by the Thatcher government and went public on the London Stock Exchange in 1992. It has acquired bus operations in Europe and New Zealand and was a successful bidder for five of the 25 passenger rail franchises offered last year during the privatization of British Rail (including the Gatwick Express linking London to Gatwick Airport). It purchased two of the United Kingdom’s regional airports - Bournemouth and East Midlands - when they were privatized, and it recently was awarded a management contract to run the Subic Bay Airport in the Philippines.

In 1987, the British government kicked off the airport privatization trend by announcing the public sale of the British Airports Authority (BAA) , a government agency which owned and managed seven of the country’s largest airports, including London Heathrow, the world’s busiest international airport. A phenomenal 1.4 billion shares of stock raising 1.9 billion were sold to 2.2 million citizens in the initial public offering, and the newly privatized BAA remained as manager of the airports.

In addition to operating seven airports in the U.K., BAA operates several international airports. Its management of the airport in Sydney, Australia has been an unequivocal success, with improved efficiency, reduced costs, and increased employee and customer satisfaction.     In the U.S., BAA manages Indianapolis International Airport under a subsidiary company BAA Indianapolis LLC.  

Increasingly, airports are being viewed as enterprises, rather than as public services which are expected, at best, to break even. Around the world, governments in both developed and developing countries are turning to the private sector for airport management and development. Municipal and state governments in this country can use the private sector to improve airport operations in several ways.

For existing airports, the simplest form of privatization is contracting out management of the airport on a relatively short-term basis. Larger economic benefits can generally be obtained via a long-term lease or sale of the airport.  Federal airport grant (AIP) funds for capital investment projects can be used at all types of privatized airports, but so-called entitlement grants (based on passenger or cargo volume) are only available if government retains underlying ownership of the airport (which still permits management contracting or long-term leases). Tax-exempt bonds may remain in place when an airport is privatized, and in some cases tax-exempt financing can be used for new airport privatization projects.

The benefits of a more entrepreneurial approach to airport management include increased operating efficiency, increased airport revenues, improved airport amenities, possible new revenue streams for state and local governments, and reduced risk of developing uneconomic (white-elephant) projects. Airlines, passengers, private-plane owners, and taxpayers can all benefit from this new approach to airport management.

Who's Who

There seems to be some confusion between the two major studies being done right now.  

First, there is the New England Regional Air Study Plan, paid 100% by the FAA, being done by Louis Berger Consultants.   Most recently, we saw the 1st phase of the study being released in December, 2004, at a meeting in Portsmouth, NH.   Final two phases of the report are suppose to be released in the Spring of 2005.

The second study is our own Master Plan, which is being worked on by Leigh Fisher and Associates.  Although the cost is $400,000, the FAA is paying 90% of the cost, while the Massachusetts Aeronautic Commission is picking up the other 10%.   There was a community meeting in December of 2004, at the Worcester Regional Airport.   Another meeting is planned for the Spring of 2005 while the final recommendations will be released in the Fall of 2005.

The other major consultant that is mentioned quite often on matters concerning the Worcester Regional Airport is Infrastructure Management Group (IMG).  These are the consultants which are hired and paid by the City of Worcester to help advise us on matters concerning the airport.   Jane Garvey, the former head of the FAA, works for  IMG.

Lastly the Department of Transportation (DOT) awarded us a grant in the amount of $455,000 to help attract a commercial carrier.  The City of Worcester matched this grant at a rate of 33% or approximately $150,000.  In total, the City of Worcester has approximately $600,000 to spend to attract a commercial carrier back to Worcester Regional Airport.

Berger Group:     http://www.louisberger.com

Consulting Agency working on the New Engand Regional Air Study Plan.  The lead consultant was Bryon Rakoff but he has left to work for the FAA. Marc Champigny is the project manager.

Department of Transportation (DOT):    http://www.dot.gov

The Department of Transportation was established by an act of Congress on October 15, 1966, the Department’s first official day of operation was April 1, 1967. The mission of the Department is to:

Serve the United States by ensuring a fast, safe, efficient, accessible and convenient transportation system that meets our vital national interests and enhances the quality of life of the American people, today and into the future.

Norman Mineta is the US Secretary of Transportation.

Federal Aviation Administration (FAA):     http://www.faa.gov

An agency of the DOT, the mission of the FAA is to provide the safest, most efficient aerospace system in the world while continuously improving the safety and efficiency of aviation, while being responsive to customers and accountable to the public.  Ralph Nicosia-Rusin is the FAA representative who attends most of the meetings on the Worcester Regional Airport.

Infrastructure Management Group (IMG):       http://www.imggroup.com

Consulting agency hired by the City of Worcester in the fall of 2004.  

Leigh Fisher Associates:    http://www.leighfisher.com  

Consulting agency putting together the twenty year Master Plan for Worcester Regional Airport.   Leigh Fisher Associates are not only looking at the airport itself but the entire 1300 acre site and determining the best overall use.   Mark Lunsford is the project manager.

Master Plan:

This is a twenty year plan being put together by Leigh Fisher Associates to maximize the return not only on the airport but the entire area referred to as the Worcester Regional Airport.   In the Spring of 2005, the 2nd community meeting will introduce their preliminary recommendations to be followed by their final recommendations at the third community meeting in the fall of 2005.  

ORH:

FAA symbol for Worcester Regional Airport.

Massachusetts Port Authority (Massport):    http://www.Massport.com

The Massachusetts Port Authority (Massport) is an independent public authority which develops, promotes and manages airports, the seaport and transportation infrastructure to enable Massachusetts and New England to compete successfully in the global marketplace.    John Krakovik is our main contact with Massport.

New England Regional Airport System Plan:   http://www.nerasp.com

A study administered by the New England Council in 1995 identified "leakage" from regional airports-- that is, the number of passengers that were by-passing a closer regional airport in favor of using Logan or one of the New York City airports.   The study also identified specific markets that could profitably be served from the regional airports.  Last year the New England Regional Airport System Plan began last year with a 20-year regional forecast of aviation activity and the development of an Airport Choice Model to allocate demand to individual airports.  This will be followed by a broad evaluation of facilities required by each airport to meet potential demand.

New England Council:      http://www.newenglandcouncil.com

The New England Council is the country’s oldest regional business organization. An alliance of businesses, academic and health institutions, and public and private organizations throughout New England formed to promote economic growth and a high quality of life in the New England region.  The New Engand Council is dedicated to identifying and supporting federal public policies and articulating the voice of its membership regionally and nationally on important issues facing New England. The New England Council is also committed to working with public and private sector leaders across the region and in Washington through educational programs and forums for information exchange.

Small Community Air Service Development Pilot Program

Grant program administered by the Department of Transportation to help small communities to develop their air service.   In 2004, the Worcester Regiona Airport, for the 1st tiime, received a grant in the amount of $455,000 to help return commercial service to Worcester Regional Airport.  The grant is matched 1/3 by the City of Worcester so this brings the total amount to slightly over $600,000 to be spent over the next 3 years to bring commercial service back to ORH.

Demographics

Worcester is conveniently located in the center of Massachusetts and in the heart of New England

• Worcester, MA ranks 74th out of 316 metro areas in the country.
• Population of Worcester County is 790,000 people.
• Land area of 1,513 square miles, Worcester County is 43% larger then the state of Rhode Island.
• One million people live within a 25 mile radius and within a 50 mile radius, there is six million people.
• Worcester's outstanding educational institutions attract approximately 36,000 college students to the 14 school in the Colleges of Worcester Consortium.  Holy Cross, UMass Medical School, Mass College of Pharmacy, WPI and Clark University all call Worcester home.

Any questions e-mail Bill

 This web site is owned and operated by Bill Randell, a local businessman who sees the untapped potential in the Worcester Regional Airport, seeking to promote the return of commercial airline service to the Worcester Regional Airport.  This site is not affiliated or endorsed by the City of Worcester, owner of the airport, or the Massachusetts Port Authority ("Massport"), the current operator of the airport.