Aviation

Mission Statement

The mission of the Airport is to provide for present and future aviation infrastructure needs of general aviation, military aviation and air carrier aviation. The mission of City Shop is to maintain Boise City's vehicle rolling stock at a free market equivalent level of service and cost.

Strengths

• We are a low cost airport to the airlines. Our cost per enplaned passenger is approximately 50% less than the national average for a small hub airport.
• We have good revenue diversification as airline fees comprise 26% of total operating revenue while other fees, such as parking revenue, concession revenue, and rental income, make up the remaining operating revenue.
• Our Use and Lease Agreements with airlines allow us to increase fees to cover our costs. However the financial stability of the airline industry is questionable as several carriers have filed for bankruptcy reorganization or are teetering on the brink.
• We believe our costs will continue to flatten out over the next two years while our revenue will increase with new concession programs as well as projected airline and tenants increase.
• City Shop has adjusted their rates in order to attempt to break even (they have broken even in the past, but have not covered their Debt Service); last year we were able to break-even and cover debt service.
• City Shop has been successful in attracting outside revenue for other governmental agencies such as Garden City and Meridian Police Departments now bring their vehicles to City Shop for maintenance.

Weaknesses

• Airport's personnel costs have continued to increase due to staffing needs in the new terminal. Our cost per enplanement to the airlines, while still relatively low, has increased from $2.09 in fy 00 to $3.32 in fy 04.
  

Opportunities

• While some of the airlines attempt to maintain costs, they may see it more desirable to add service to BOI either by adding flights or increasing aircraft size.
• Our low debt level and the cash flow we generate from operations enable us to take advantage of grant programs and be responsive to tenant requests (we fund a significant amount of capital from operating cash flow).
• The third runway was completed and opened to military traffic November 2002. The $5.2 million runway was funded by the U.S. Air Force and is used exclusively by the Idaho Air National Guard.
• With the events of 9/11 the Airport has increased security and added staff. The additional staff includes three bomb-sniffing dogs that assist the police officers in providing security for the traveling public.
  

Threats

• Financial instability of the airlines poses the greatest threat to the Airport. We counter this by making sure the airlines keep current on the amounts they owe the Airport.