Kelly Fredericks is stepping down as CEO of the Ontario lnternational Airport Authority (OIAA). During Fredericks' 16-month tenure, the airport's transfer to local control was completed as a major objective, and several initiatives were initiated to cut airline costs, develop airport businesses, and increase air services and customer services, consistent with the OIAA's strategic goals. Both Fredericks and the OIAA Commissioners acknowledge that their approaches to leadership and management of OIAA differ sufficiently that it is now mutually beneficial to part ways. While CEO of the OIAA, Fredericks and his team established the framework and achieved several initiatives to drive the strategic goals of the OIAA. To reduce costs, staffing transition plans were created, including a leaner senior management team and strategic outsourcing of services. To increase revenues, parking rates were adjusted in 2017 and a multi-million dollar plan for food and beverage in the passenger terminals was negotiated.
In an effort to develop more airport-related businesses, ground leases are being pursued on nearly 675 developable acres of airport property, which will focus on aeronautical revenue-producing uses compatible with the airport. Negotiations are also underway with existing and potential cargo operators to expand airport-related businesses.
To expand air service to the OIAA, aggressive marketing plans are targeted toward incumbent airlines and domestic and international airlines with the potential to serve the OIAA. Focus on strong regional support to airline network planners and all service incentive program concepts are aimed at building customer demand for OIAA flights. New flights to major destinations will continue to come on line in 2017. It is notable that for the first half of 2017, the OIAA has exceeded LAX in passenger traffic growth as a year over year percentage.
In an effort to provide more customer-friendly facilities and services, plans are in place to remodel food, beverage, and retail concessions in 2017. The OIAA began offering five parking products earlier this year, including: Premium, General, Value, Economy, and Valet. Complimentary wi-fi speed and reliability has been increased and plans are underway for new flight and baggage information display systems later this year. Expansion of the TSA security checkpoint at Terminal 4 is also planned for 2017, which will reduce passenger wait times. Plans are also in place to phase in access Transportation Network Carriers as an additional ground transportation option for travelers.
A capital improvement plan, subject to Commission approval as part of the 2017/2018 operating and capital budget, was developed to protect the OIAA's assets and strategically invest in the future.
Fredericks noted, "It has been an honor and privilege to work with the OIAA Commission and the staff at OIAA to help lay the foundation to achieve the OIAA's goals and serve the traveling community. I look forward to watching from afar as ONT becomes a leading destination airport for Southern California."
Alan D. Wapner, President of the OIAA, stated, "On behalf of the OIAA Commission, I commend Kelly for his leadership in successfully transitioning Ontario International Airport to local control. During more than 16 months at the helm, Kelly and his team made significant progress in furthering our mission to make ONT one of the most competitive, efficient, innovative and customer-friendly passenger, cargo and business airports in the United States. The Airport is a key economic engine for the Inland Empire and Southrn California, and plays a critical role in meeting the air transportation demands of one of the fastest growing regions in the country. We thank Kelly for his service and wish him well in his future endeavors."