City of Philadelphia - Division of Aviation - Achievement in Sales or Revenue Generation

Company: City of Philadelphia - Division of Aviation
Company Description: Operated by the City of Philadelphia, the Philadelphia International Airport (PHL) is the largest airport in Pennsylvania and the primary airport serving the Philadelphia metropolitan region. In 2019, the airport served 33 million passengers and partnered with 25 airlines to offer 500 daily departures to more than 140 international destinations. PHL is also a regional cargo hub for UPS Airlines.
Nomination Category: Achievement Categories
Nomination Sub Category: Achievement in Sales or Revenue Generation

Nomination Title: Stephanie Wear, PHL Airport, Achievement in Sales or Revenue Generation

Stephanie Wear, Director of Air Service Development and Cargo Services, joined DOA’s leadership team in January 2020. When the pandemic hit, she quickly switched focus, approaching the airport’s challenges as an opportunity to build on her department’s past successes and restore PHL’s cargo network in a more sustainable, valuable way.

In June 2020, Wear launched the COVID-19 Air Service Recovery and Incentive Program (CASRIP), created to drive airport revenue recovery and help stabilize Philadelphia’s regional economy. CASRIP has two major components - waiving select airline operating expenses and incentivizing strategic air service routes for domestic, international, and cargo airlines.

Shortly after pandemic-created challenges, flight suspensions, and lack of revenues rocked the airport, CASRIP boosted airport recovery from pandemic-related revenue losses and continues to do so. In addition to helping return PHL’s revenue to pre-pandemic levels, CASRIP ensures long-term financial success for the airport, encouraging current air carriers at PHL to expand their services and invest in new markets, furthering PHL’s strategic goals. Specifically, CASRIP helped bring back British Airways, Lufthansa, Qatar and Air Canada, which are a significant part of PHL’s international program. In addition, PHL is currently in negotiations with two other airlines, which will result in the likely return of all foreign flag carriers to the airport.

CASRIP not only offers benefits to air carriers, but the program has a widespread impact on revenue recovery as it drives revenue back into the airport so that jobs can be restored and PHL can reach greater financial stability.

The City of Philadelphia - Division of Aviation entered 2020 on a high, having set a record for passenger volume in 2019, in addition to the introduction of new routes and the completion of several significant development projects. In 2019, PHL served over 33 million passengers, documenting a 4.2% increase in traffic from the previous year. Additionally, PHL’s air cargo grew by 9.4%, making 2019 its second-highest cargo year to date.

When the COVID-19 pandemic hit in 2020, halting travel around the world, PHL was forced to rethink its entire strategy to keep the airport open and operational. PHL adapted to many new strict health and safety protocols and collaborated on innovative solutions to problems posed by a relentless global pandemic - including ensuring essential workers and medical professionals were able to travel to help those in need - while maintaining a safe and welcoming environment for our guests, colleagues, and stakeholders. Despite these challenges, PHL welcomed over 11 million passengers in 2020, and transported 623,123 tons of cargo - nearly 23,000 tons more than the previous year.

Despite the enormous industry-wide impact of the pandemic, PHL stands out as an industry leader when it became the first airport to launch an incentive program with the specific purpose of driving post-pandemic recovery. Serving as a model for other airports around the world, PHL took immediate action to address the challenges it faced and began looking at opportunities for growth.

One year into CASRIP, Wear’s program has successfully secured transatlantic programs from several major airlines, in turn boosting travel opportunities and revenue generation across the board. CASRIP’s impact on airport revenue has benefited several departments within PHL, as well as a range of stakeholders including airlines, employees, passengers, contractors, vendors and more.

CASRIP is an effort in progress and will remain active until June 30, 2022. However, Wear’s innovative thinking, ability to turn challenges into revenue opportunities and leadership during a time of crisis, cements PHL and the CASRIP program as an industry success story.

Reference any attachments of supporting materials :

Philadelphia International Airport COVID-10 Air Service Recovery and Incentive Program PDF: https://www.phl.org/drupalbin/media/21016_PHL-CASRIP_P7.pdf

Runway to Recovery with PHL CEO Chellie Cameron”: Air Service Development Post COVID-19 - A video interview with Stephanie Wear, Director of Air Service Development and Cargo Services: https://www.phl.org/newsroom/rtr/stephanie-wearc

PHL Introduces COVID-19 Air Service Recovery Program: https://www.phl.org/newsroom/casrip2020