Detroit Airports To Realign Business Operations

WCAA governs operations at Detroit Metro and Willow Run airports.

The authority’s board last week approved a $292 million budget for fiscal year 2012 that a spokesperson said “will include the strategic reorganization of staffing resources, wage and benefit changes for employees, and the exploration of shared services and partnerships with other governmental entities.” Part of the plan calls for the reduction of 100 jobs through process re-engineering and consolidation over the next 12 to 15 months.

“It’s imperative that we re-engineer Detroit Metro and Willow Run airports, so that they become the most competitive in North America,” said Turkia Awada Mullin, WCAA’s chief executive officer. “Our region has made major investments in our world-class airport facilities, and we must operate them efficiently to maximize the economic benefits that they generate for southeast Michigan.”

Mullin said that the authority’s cost-cutting measures “would in no way impact the safety and security of passengers or employees.”

The economic downturn throughout Michigan over the past decade has contributed to the authority’s financial pressures, as Detroit Metro last year served 4 million fewer passengers than it did at its peak in 2005, Mullin said. In addition, the authority carries high debt loads on the McNamara and North terminals, both of which opened within the last nine years and were designed to accommodate projected traffic growth that has yet to materialize.

Earlier this year, the board initiated $21 million in additional cuts by reducing operational costs and deferring planned capital improvement projects.

Mullin said many opportunities exist for the authority to realize savings and efficiencies through cross-training and consolidation of staff and also by working together with Wayne County government and local municipalities in the areas of human resources, information technology, dispatch, homeland security and emergency management.

In addition, Mullin said that the authority must stimulate new sources of non-airline revenue and improve customer amenities. “We will be adding free airport Wi-Fi and introducing new approaches to concessions where consumers may soon be able to download applications and use their smart phones to have their food and beverage selections delivered to their gates,” she explained.

The authority also will construct a new cargo processing facility at Metro to better serve the freight needs of local corporations and work will closely with the business community to pursue additional, direct flights to emerging markets in South America, India and the Pacific Rim. “Our goal is to become faster, better and cheaper so we will be the preferred choice for airlines and their business and leisure travelers,” Mullin said. “We believe the changes we are making beginning today will help us get to that status.”