Lehigh Valley International Airport is Flying High

In recent years, Lehigh Valley International Airport (LVIA) has been a source of disappointment. Though it once boasted over 1 million passengers a year, it was under 600,000 in 2013. An unwieldy board of governors was slow to act as a $10.4 million judgment grew to over $26 million. Sporadic budget shortfalls occurred as management yawned at a $1 million Hooters Air Fuel bill. But in an upbeat presentation to Northampton County Council at their August 4 meeting, airport Executive Director Charles Everett, Jr. claims that the airport is once again flying high.

Everett ticked off a number of reasons for his optimism.

·         *  LVIA is the fourth largest airport in Pennsylvania, right behind Philadelphia, Pittsburgh and Harrisburg. 

*         It includes four passenger airlines and nine non-stop destinations. 

*         Commercial passengers increased 10% last year, three times higher than the national average.  

*         Air cargo increased 58% last year because LVIA is now one of five Amazon air hubs nationwide.

*         LVIA is responsible for 6,200 jobs and generates $528 million in direct and indirect economic impact annually.

*        LVIA's annual operating revenue is $23 million. 

*         LVIA spends $16.8 million or 70% of its invoices, on goods and services here in the Lehigh Valley.

*         LVIA recently hosted the Solar Impulse which landed here before 4,000 solar enthusiasts with only two days' advance notice as part of its trans-world flight. Everett explained that is "what an airport is all about, making sure you can share it with your community."   

Perhaps the biggest reason for this turnaround is the sale of a 260-acre parcel in May to FedEx. The sale is the end of a nearly two decades' long property dispute resulting in a judgment. "That little episode is behind us, and we are starting a new chapter, said Everett.

The 1.1 million sq ft Fed Ex ground facility, near the airport, will be built at a cost estimated between $227 and $330 million, including $40 million in road improvements along Willow Brook Road, Race Street and Airport Road. At full build out, it will be able to process 75,000 packages per hour. It will be the largest Fed Ex ground facility in the U.S. By 2030, it will have created 3,000 new jobs.

Everett reported that the agreement with Amazon, which resulted in five daily flights in December, created 50 new jobs at the airport. "We all know that Amazon is a huge player in e-commerce, and when they grow, we believe that we will grow also," predicted Everett. He stated trucks move merchandise from Amazon as far south as Richmond.

In addition, LVIA intends to extend its terminal and embark next month on a $2.5 million multimodal transportation center to link all transportation modes. There will be seven bus slips and a covered walkway. The old firehouse, next to the terminal, will be demolished. The lion's share of the money for this project - $1.75 million - will come from the state.    

In response to questions from Seth Vaughn, Everett doubted that LVIA will ever surpass Harrisburg because of the Lehigh Valley's proximity to Philadelphia and New York. "Airlines do not like making investments so close," said Everett. "They're getting our passengers now." He explained that LVIA instead focuses on convenience as a lure. He noted it only takes seven or eight minutes to get through security here. Passengers increased three per cent so far this year, according to Board member Mike Dowd.

Dowd, who accompanied Everett, indicated that LVIA is trying to augment its revenue through general aviation.

Everett told Bob Werner that LVIA will definitely consider gambling in its lobby if that proposal becomes state law. "We like nonaeronautical revenue," he said, noting that this reduces the pressure of relying exclusively on airline revenues and permits him to lower airline costsairport.

Updated: LVIA Exec Director Uses Airport Tahoe To Load up on Booze

From Secret Agent 102: This afternoon, I was at the Wine and Spirits store at Northampton Crossings. I was in the checkout line when I noticed that the person in front of me looked strikingly like Lehigh Valley International Airport Executive Director Charles Everett. He (and the gray-haired woman with him) bought more than a case of wine and booze.

I didn't think anything of it until I got to the parking lot when I saw them entering a late model Chevy Tahoe with a yellow "flasher" on the roof. Sure enough, as they pulled out, I noticed the Tahoe had "MG" plates. This was Saturday afternoon at about 1:55.

Here's the vehicle pulling out of the parking lot (you can see Red Robin to the right and the Wegman's "tower" in the distance).

I have sent this email to Executive Director Everett:

Charles, Perhaps you can help me. You were spotted Saturday afternoon leaving Northampton Crossings with a rather large quantity of booze. To each his own, I say, but you were transporting this precious cargo in a Chevy Tahoe bearing Municipal Plate MG5255M. Can you please educate me whether this type of personal use is permitted in an official government vehicle with an amber flasher. Thanks. 

Updated 10:19 AM: Everett Responds! Booze Runs OK! "I was enroute from the North Pole Express Charity Flight event at Lehigh Valley International Airport to my home. Incidental personal use of the vehicle is permitted. Thanks".

Bluebloods Angry Over Critical Airport Authority Story

Marc Troutman is pretty hot stuff. He's the bastard who turns off my juice when I forget to pay by First Energy electricity bill, He's also Chairman of Lehigh-Northampton Airport Authority's 15-person Board of Governors. That's a lot of Governors to order around, but the boss is unhappy. In fact, word has it that his panties are twisted out of joint over my story yesterday. In that little ditty, I told you the financially strapped airport board is meeting this morning at, of all places, the very posh and private Saucon Valley County Club. They plan on trying to replace their current lawyers (Florio Perruci and about out 10,000 other names, including former Judge Robert Freedberg) with some goofy firm.  One of their lawyers (she's "of counsel" and technically not part of the firm) just happens to be the wife of the Airport's Exec Director, Charles Everett.

It's all in the family, I guess.

Ironically, this is the same law firm that issued a bogus report claiming that just about everyone there has a conflict of interest. It was complete horseshit, and that bad legal advice alone should be reason to reject this outfit.

Well, Troutman is blowin' oil over my story so bad that someone should throw him on a lift and find out where he's leaking. He fired off this angry missive yesterday to all the little governors.

All,
We have a much bigger problem than Public Comment at our board meetings. If you haven’t been contacted, harassed or insulted by someone today because of this article. Please read it. I would like to discuss this tomorrow.

http://lehighvalleyramblings.blogspot.com/

The Executive Committee and staff were the only individuals who received the information discussed in the article. In addition the article is inaccurate at best as the evaluation and motion to be moved forward by the executive committee.

It was very inappropriate and embarrassing for a member of the executive committee, staff or board member who attended the meeting to leak confidential bid information to a “Blogger”. The article is clearly an inaccurate assessment of the process and motion. Not to mention it appears to be an attack on our executive director and the competence of all of us around the table. All actions we take are subject to right to know and there is a process for interested parties to obtain that information. Therefore I can only surmise that this release of misinformation was malicious in nature.

This is damaging as well as embarrassing for all of us.

In addition to staff, the following board members were given the RFPQ information:

Exec Committee:

Bert Dadey
Jane Baker
William Berger
Dean Browning
Marc Troutman

Others:
Ed Lozano
Jeff Matzkin

I am not pointing fingers at anyone listed above but raising a concern that we need to deal with. As we move forward and continue to negotiate with vendors, airlines etc to make land deals or purchase services, confidentiality is paramount and lack of can ruin deals , create liability and embarrass individuals and the authority.

Let’s discuss this tomorrow and how we want to deal with it from a policy or whatever perspective.

Sincerely,
Marc

Love to see this outfit's priorities. They can't rub two nickels together and are worried about the unwashed masses sounding off during a meeting. But that pales in comparison to the bottom-feeding "Blogger." I could see him holding his nose as he pens the word.

He does have a point. My story really is an attack on the Executive Director and the competence of those who are idiotic enough to conduct a public meeting at a private country club during a fiscal crisis. But I'll differ with him on one major point. The story is also accurate, and he knows it's accurate, which is why his nose is so out of joint.

Looks like he now wants to start an investigation to determine who the traitor is who leaked this story to me. Maybe he should hire that law firm again..

I think I'll drop in on the bluebloods today, although morning meetings and I don't mix well. Maybe Marc and I can get in a quick none holes during their so-called retreat.

"He's on his final hole. He's about 455 yards away, he's gonna hit about a 9 iron I think."

"Cinderella story. Outta nowhere. A bottom-feeding blogger, now, about to become the Masters champion. It looks like a mirac... It's in the hole! It's in the hole! It's in the hole!"

Muller to Replace Iannelli on Airport Board

Tony denies he will be going into shit biz with Angle

Lehigh Valley International Airport, plagued by both declining passenger traffic and a $26 million judgment, is going to have to seek a new Chair for its 15-member governing board. Tony Iannelli, the current current captain of this sinking ship, is being replaced.

Lehigh County Executive-elect Tom Muller has advised Commissioners that he plans to replace Iannelli with one of their own, Mike Schware. They must approve this appointment, and I understand the matter has already been listed for January 8.

The airport board has come under fire by Northampton County Council members Bob Werner, Scott Parsons, John Cusick and Peg Ferraro in recent months, especially over plans to sell Braden Airpark in Forks Township. In adopting their most recent budget, Council unanimously rejected a request from the airport for $250,000. Plans to sell Queen City Airport, which have been shelved, angered many in Lehigh County.

But this same Council also recently re-appointed Lehigh Valley Partnership point man, Bert Daday, to the board.

Unanimously.

Even though he's 758 years old.

Iannelli is the CEO and President of the Greater Lehigh Valley Chamber of Commerce, hosts Business Matters on WFMZ-TV69 and was even an ice hockey ref.

Not sure how Tony feels about this, but if I were he, I'd be delighted.

This "international" airport has been little more than a monument to the egos inside the unelected aristocracy known as the Lehigh Valley Partnership. In their latest trick, they've hired a consultant to tell them that the shrinking passenger base is really a good thing.

Don't worry. Be happy.

Imagine if a publicly-held private sector company sent out a press release saying, "Sure, we're shrinking, but we're OK with that." At the very next stockholders' meeting, that management team would be out. Faster than you can say Business Matters.

Maybe, just maybe, they should look at the noncompetitive prices of flights out of ABE, the frequent delays suffered by BE passengers, high parking fees and the lack of marketing to the business traveler. What's the draw?

Should We Bail Out the Airport?

The struggling Lehigh Valley "International" Airport has asked Northampton County for $250,000 next year. This will be voted on by Council tonight. President John Cusick said he's willing to kick in $125,000, but only if Lehigh County is willing to make a matching subsidy. "We'll see what they think about it over there," he remarked.

Bob Werner was a bit more strident. "They out to be able to seek a solution on their own." he also derided the Board's "management skills."

What do you think? Would you bail these guys out?

Let's Raise Rates at the Airport!

A Morning Call report that the Lehigh Valley "International" Airport intends to raise rates has Lehigh University Professor Steve Thode scratching his head. He's prepared the graph you see above, showing a declining passenger count, and makes this point.

Let's see if I have this right:

Passenger traffic at LVIA will drop 16-17% this year after dropping almost 20% last year;

Passenger traffic is off more than 40% since 2004;

Half the airlines serving LVIA have left. Even when there were 8 carriers, LVIA was operating well below capacity; and,

One of LVIA's fastest growing "routes" is the bus to Newark.

So, here's their great idea: since we have half as many tenants for our building, let's raise the rent on our (few) remaining tenants!

But Doctor Thode, at least Board Chair Tony Iannelli and Exec Director Chuck Everett are still paying their staff with no planned layoffs.

Perhaps they should read a little about the demise of Beth Steel, Mack Trucks, Lucent, and any of a number of other LV powerhouses now gone.

You don't pay people to do nothing.

... unless they work for the government.

Then you pay them a lot and hope they do nothing.

Updated 11:10 AM: The United Bus is Airborne!

This comes right from the LNAA webpage.

Been to Cancun, Lately?

Mexican baby food

Did you know that one out of every four LV residents visits Cancun every year??

That's what The Morning Call claims, so it must be true.

Yep. 218,444 LV residents (not 218,445) travel to Cancun each year. That's one out of four of us.

164,402 LV residents (not 164,401) visit Punta Cana each year. That's one out of five of us. Another 157,672 LV residents (not 157,673) are at Montego Bay each year. That's nearly one in five. And 225,000 LV residents travel to either San Juan, Nassau, or Aruba. That's more than one in four LV residents.

Man, we must be loaded!

No wonder so many people speak Spanish.

I've been to Philly, by the way.

This bullshit is being smeared on the pages of a newspaper, not a blog, to get the LVIA board to spring for some $5 million international customs station, so people can be searched even more closely.

Never mind that $26 million judgment. Maybe it will go away.

And as blogger Michael Molovinsky has observed, Dumbo the Flying Elephant will now be headquartered at LVIA.

Doughty Out, Krauter In, at LVIA

Following a three-hour executive session, the Lehigh-Northampton Airport Authority unanimously accepted the resignation from employment, by retirement, of Executive Director George Doughty, effective May 31, 2011. They accepted his resignation as Executive Director immediately, but will continue to furnish services as directed. Lawrence Krauter, who currently serves as the Chair of Bethlehem's Planning Commission, was unanimously appointed Interim Executive Director.

Krauter also serves as a member of the Board of Directors of the Pennsylvania Aviation Council.

Updated 5:45 PM: For the back story and more detail, check out Matt Assad (Morning Call) and Lynn Olanoff (Express Times). The Board is unhappy because of an unpaid $24 million judgment as well the declining business. During the three hours I spent in a hallway with reporters, we all could see the security staff sitting around, doing nothing.

Is Airport Authority Grounding Director Doughty?

That's the inside word. At a noon meeting today, Airport Authority Director George Doughty will get his wings clipped, and is expected to resign.

So How is the LV Airport Going to Pay That $26 MM Judgment?

$3,000. That's what is added daily, in fines and interest, to an 11 year-old judgment owed by the Lehigh Northampton Airport Authority. You see, it condemned land in Catasauqua for an expansion that, ironically, never occurred. Right now, the tab is around $26 million, give or take a million.

Now you had nothing to do with this colossal error, compounded by the Authority's refusal to pay. You can thank Executive Director George Doughty for that. But we all may end up paying the tab.

The Airport Authority has been around since 1946, believe it or not. An unwieldy, 19-member Board of Governors, oversees operations. Ten are from Lehigh County and nine from Northampton. They administer Lehigh Valley International Airport, located on 2,629 acres in five different municipalities. They also manage Queen City Airport (Allentown) and Braden Airpark (Forks Tp).

At one time, Lehigh and Northampton County provided financial assistance to the Authority in the form of direct grants and guaranteeing bonds. Then, the Federal Aviation Administration stepped in to provide grants for capital programs, which has saved both counties hundreds of thousands of dollars.

But who's going to pay that $26 million judgment? Looks like it might be you. I'm told the Authority will be asking both Counties to guarantee a bond to pay for the land grab debacle. Apparently, there is no other way to pay this debt.

"Looks like I picked the wrong day to quit sniffing glue!"

What this does is put taxpayers on the hook in the event of default. It will also have a negative effect on the bond rating of both counties.

Here's my question. Why do anything? With much better airports in nearby Newark and Philly, is there really a need to have an airport here? I've seen lemonade stands that are managed better.

A year ago, both counties received an Airport Management Study, prepared by the Berger Group. Recommendations include a smaller and more interested Board. Both Execs have appointed people who are willing to stir the pot. But is it enough?

ShakeUp at Airport Authority

A former fighter pilot is in command.

Lehigh Valley Internat'l Airport: An Indictment

One person can make a difference.

What follows below is an indictment of the management at Lehigh Valley International Airport, as related by retired consultant Jay Goldstein during last night's meeting of Lehigh County's Board of Commissioners. When he was done speaking, everyone wanted to appoint him.

"About two years ago, I met with leaders of Delaware County Council in Media, Pa. I got their help to set up a meeting in Washington, D.C., with top staff people of Senator Specter's and Casey's offices, who were monitoring Philadelphia International Airport's air traffic congestion crisis.

"The subject of the meeting was transporting LVIA into a reliever airport for Philadelphia International. The staff was very sensitive to the issue, but sadly indicated to me, that while there is a dire need for a reliever airport, LVIA could not be taken seriously by anyone in Washington because the folks back home don't take LVIA's commercial traffic seriously, and that was the end of the meeting.

***

"In the year 2009 bi-county study by the LVIA ... shows the average cost of the plane passenger at LVIA to be $36.40. For the same service at Harrisburg Airport, the cost is $21.75. That's more than a forty per cent difference between two airports in Pennsylvania, each about the same size, and less than 100 miles apart.

"There's the percentage of commercial air traffic vs. total air traffic at LVIA, reputedly down to six per cent in 2008, from fourteen per cent in 2007. That's a loss of some fifty-seven per cent in one year, and largely before the recession was in full bloom.

"With a reputed average of 320 flights per day in 2008, the LVIA averaged just 19.2 commercial flights in an 18-hour period per day, or about one flight per hour. Was 2009 worse than 2008? Where is the bottom in LVIA?

"The infamous $26 million judgment pending against the airport authority, may result in a very difficult situation for the authority to face, and the taxpayer and commercial fliers.

"Would the FAA balk at a $26 million bill? If so, is it because of the FAA's longstanding disappointment with our Airport Authority's lack of concern for the air traffic congestion crisis afflicting Philadelphia and Newark airports?

"What if the Airport Authority knew years ago that the FAA might not accept the total burden of a ten million dollar original judgment? How could the majority of the Board believe the continued appeals and court-ordered penalties and interest on top of the original judgment, already too big for the FAA to consider, was the right course of action?

"David Haines, a former Marine Corps fighter pilot and now a Delta Airlines Captain, went to the Airport Authority about two months ago, after being appointed by Northampton County Executive John Stoffa. He was quoted in The Morning Call, December 14, 2009 article as saying 'This Airport Authority hasn't put a focus on commercial aviation in years, and that's gotta' change.' If Captain Haines' claim is true, where was their focus, if not on commercial aviation? They had to be focusing on something, didn't they? Or is that the problem, that there has been no focus?

***

"Our Airport is critical to our area's economic well being, so it makes perfectly good sense for a Mayor of the tri-cities to serve on the Airport Authority, which does beg the question, ... why aren't all they serving on the Airport Authority, all of them? Why is there no mention of this whatsoever in the Airport Authority's bylaws? Most importantly, gentlemen, from your perspective, as our county's leaders, doesn't an economically viable tri-city region led by a commercially successful airport, translate into a reduced financial burden?"

Pawlowski Appointed to Airport Authority

Brain Callaway's well-written report appear above. The decision was unanimous. Even I agree. The Lehigh Valley's three city mayors might make a difference on that beleagured Airport.

Angle: Lehigh Valley Airport Run Like Private Country Club

Ron Angle, the Northampton County Bulldog, believes a well-run local airport is key to this area's economic development. It should be a cornerstone. But at last night's Northampton County Council meeting, he claimed the Lehigh Valley International Airport is a "little bit of a joke."

For one thing, he's always wondered how Hooters, which used to fly out of LVIA, could run up a fuel bill of over $1 million and just walk away. Some prominent local businessmen recently told Angle how that happened.

"The people who exercise a lot of influence in the Valley, the community hierarchy, whatever you want to call them, not the politicians necessarily, but the behind the scenes people; they like the fact that Hooter went to Myrtle Beach, where you could play golf. And they didn't want Hooters to stop going to Myrtle Beach because, quite frankly, they liked going to Myrtle Beach.

"I know in the real business world, if somebody tried to run up a fuel bill, way before they got to $1 million, somebody would say 'Hey, you're not getting any more fuel. You have to ship a payment over here if you want any more fuel.'

"Everybody just shluffed that off. Frankly, the airport is managed like a private country club."

According to Angle, the real problem is George F. Doughty, executive director of the Lehigh-Northampton Airport Authority, which owns the airport. Instead of serving the people of the Lehigh Valley, Angle maintains that Doughty serves a "small segment" of elitists. "He took care of his buddies over at Queen City, who like their private country club little airport over there. That was nice he was able to do that."

"His reward for lousy performance was a new contract."

Angle noted that LVIA recently acquired Southeast, when it should have gone after Southwest. "Delta's been trying to get in, but they have no interest in Delta or Southwest."

County Council member Mike Dowd, who serves on the Lehigh-Northampton Airport Authority, agreed it is poorly managed. "I think the Airport Authority is changing, Ron, and is far more active than it was."

Dowd declined to discuss Doughty's three-year contract, noting it is "inappropriate" to discuss a personnel matter. Angle retorted, "Well, he's being paid by the public, quite frankly, I don't know it's inappropriate to talk about it. His money comes from the Airport Authority, which is a public agency."

Executive John Stoffa agrees that Doughty does set the direction. "People have to decide if the leadership that's there is the leadership that we want. There's a need for some change." Stoffa noted he would not recommend any extension of Doughty's contract. ... I think there should be a clear message that new leadership is desired"

Stoffa asked Angle how he'd improve things. Angle responded, "If you and the Executive in Lehigh, Cunningham, get together on this, and I understand he's been approached, we have the authority to abolish the Authority and re-appoint a new Authority. That's one of the things I think we may do. Maybe we could get a group of good business people to take a look at should we be doing that."