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Retiring CAA Director Reflects on Growth, Potential at Bradley

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Kevin Dillon says Bradley has made great strides over the past decade
Tourism & Hospitality

Final Approach

Kevin Dillon says Bradley has made great strides over the past decade

Kevin Dillon says Bradley has made great strides over the past decade and has the potential to eventually welcome 10 million passengers per year.

Kevin Dillon will be retiring from his position as executive director of the Connecticut Airport Authority (CAA) in January, after 12 years in that job and a half-century in the aviation industry.

As he talked with BusinessWest late last month for what will likely be the last time in his tenure, he listed a number of accomplishments and milestones during his stint — everything from sharp increases in the number of carriers and non-stop flights at Bradley International Airport (12 and 47 are the current numbers) to the addition of trans-continental and trans-Atlantic flights; from the completion of the airport’s $210 million ground transportation center to the recent kickoff of $250 million worth of additional improvements to BDL.

“We’ve accomplished most of the goals we set down when we established the airport authority,” Dillon said. “Certainly the re-establishment of trans-Atlantic and trans-continental service was a very high priority for us, and we’ve been able to accomplish that with our Aer Lingus service and our LAX and other California service that we’ve had over the years.”

But he spent far more time with what has become his favorite subject — where this airport, the second-largest in New England, can go from here, building on the momentum gained over the past dozen years and the solid foundation that’s been built.

Indeed, Dillon has talked often over the years about Bradley reaching 10 million passengers per year (the current number is about 7 million) and what it will take to get there.

Specifically, it will take more of what the roughly 2.8 million people living and working in Bradley’s catchment area (mostly those within an hour’s drive from Windsor Locks) are looking for — more carriers, more flights, and especially more non-stop flights to more places, in this country and beyond.

Kevin Dillon

Kevin Dillon

“Business travel hasn’t come back to the level it was pre-pandemic. And that’s a question mark across the country; will the business ever get back to that level?”

Bradley was making considerable progress in these efforts, increasing passenger volume from just under 6 million to 7 million, before significant headwinds, in the form of the pandemic and its after-effects, set things back, as they did at airports across the country.

But slowly but surely, as air travel has recovered in dramatic fashion and Bradley has added more non-stops via carriers such as Breeze and, most recently, Avelo, the airport is back to roughly where it was before the pandemic, Dillon told BusinessWest.

“We’re turning over an airport that still has tremendous opportunity and potential in front of it,” he said. “Right now, we’re back to where we were before the pandemic, and we’re back on that growth mode. I certainly believe that the next person coming in has a real opportunity to bring that airport passenger count to that 10 million level.”

As it looks to make continued progress, the airport, as it eyes nonstops to London and other popular destinations, is facing enormous competition from every other airport looking to grow its numbers, he went on. Meanwhile, the carriers have only so many planes.

“We’re in competition with every other airport in the country for the airline assets,” he said. “Every airport is trying to convince airlines to put flights into their airport; we compete with every airport in the region for passengers, but we compete with every airport in the country for airline assets.”

Then there’s the still-sluggish business-travel market, which is an important part of the equation at Bradley, where, before the pandemic, roughly half the passenger volume was business-oriented — a high percentage for an airport of this size — and now, it’s closer to 40%.

“Business travel hasn’t come back to the level it was pre-pandemic,” he said. “And that’s a question mark across the country; will the business ever get back to that level?”

Overall, Dillon is bullish on Bradley and believes it has all the ingredients to become an even more popular alternative to Logan in Boston and the airports in and around New York. For this issue’s focus on travel and tourism, he talked about how to, well, get there from here.

 

Plane Speaking

Dillon became the first executive director of the CAA after its formation by state officials more than a dozen years ago in an effort to help Connecticut’s airports, and especially Bradley, reach their full potential.

“We’ve demonstrated time and time again that, if we have non-stop service to a location, we will capture at least 80% of everyone in our core area that’s looking to travel to that location.”

Prior to that, he had worked at several different airports and in various capacities, starting with more than 20 years with the Port Authority of New York and New Jersey, with his last assignment as acting general manager of LaGuardia Airport. Later, he served the Massachusetts Port Authority as director of Aviation Operations before working in Manchester, N.H. as director of its airport, in Orlando, and then as president and CEO of the Rhode Island Airport Corp., before taking the helm at the CAA in 2012.

As noted earlier, his time at Bradley has been marked by a number of accomplishments, including a doubling of non-stop flight destinations, the addition of several new carriers, an economic impact to the region of just under $4 billion, and several capital improvements.

These include upgrades to the terminal building, including $250 million in ongoing work, including an in-line baggage-check system that will also bring two additional gates to the airport, which are sorely needed as it continues to grow.

There’s also a vertical-circulation project that will change the way travelers move through the building, allowing the airport to expand its security checkpoint, Dillon explained, adding that these improvements will effectively extend the useful life of the terminal building.

Some of the biggest steps forward, though, have come with the adding of new carriers, especially those in the “ultra-low-cost” category, as he called it, which are in demand among consumers.

Such carriers include Breeze (which has made Bradley a hub), Frontier, Spirit, and, most recently, Houston-based Avelo, which will start service from Bradley to Cancun; Montego Bay; Jamaica; Charlotte/Concord, N.C.; Daytona Beach and Orlando, Fla.; Houston; and other destinations starting in November.

“That’s a level of carrier that didn’t really exist when the CAA was first created,” he noted, adding that, at the time, Bradley had most of the mainstream carriers — Delta, United, Southwest, and others — and has since has put a hard focus on the lower-cost carriers, “because we saw that’s what the marketplace was looking for, and it has really fueled a lot of the growth here at Bradley as well.”

Another key is the addition of more non-stop flights, which are also in demand among consumers, Dillon said, adding that the total is now at 47 and certain to climb higher. Many of them are to Florida, courtesy of Breeze, JetBlue, Southwest, and Spirit, he said, adding that such flights are popular and integral to the overall success of any airport in the Northeast.

“We know where people in our catchment area are flying to and what airport they’re using to do that — so it’s a matter of aggregating that data and then presenting it to an airline and making the business case for why an airline should start that level of service at Bradley.”

“We’re thrilled to see this level of coverage down into the Florida market,” he said. “It’s what allows us to continue to keep people in our market home instead of seeing them travel to a New York airport or Boston.”

 

Non-stop Action

These initiatives and others have positioned Bradley for continued growth, Dillon believes, adding that the priorities moving forward are to stress Bradley’s many assets while continuing to add more services to the mix.

Doing so will enable the airport to draw more customers from within that 60-minute-drive circle, while also perhaps expanding that radius, making Bradley an attractive alternative for people in various regions.

That includes Western Mass., the source of perhaps 20% of Bradley’s overall passenger volume, he said, adding that the 413 is definitely a potential source of additional growth, as is the area just east and south of Worcester — and Connecticut, for that matter, he said.

One of the priorities — and opportunities — moving forward is adding non-stop service to London, a key destination and part of the success quotient for any large airport.

“Far and away, I think London would be the most successful trans-Atlantic service for us, simply because of the high level of demand into London itself, but also all of the connectivity opportunities that exist,” he said, adding that Bradley has been in discussions with British Airways and other carriers about such service.

It would come with a certain amount of risk at mid-size airports such as Bradley, he went on, adding that, because of this, airlines look for revenue guarantees and/or business-community commitments that will guarantee a certain amount of revenue on the flight.

“There’s always risk when you start a service like that,” Dillon said. “But I do believe, based on the numbers we’re generating every day in the market area that we serve, of people who are traveling to London, that it would be a very successful service.”

Other priorities include additional non-stop flights to spots in the Caribbean and this country, including Seattle, an increasingly popular destination.

With more non-stops, the airport can, as he noted earlier, attract more people in its main catchment area.

“We’ve demonstrated time and time again that, if we have non-stop service to a location, we will capture at least 80% of everyone in our core area that’s looking to travel to that location,” Dillon said, adding that this bodes well for carriers looking to accept the risk of bringing more of these flights to Bradley.

“If we can bring Seattle service to Bradley, people are going to stay home and utilize Bradley for that service,” he went on. “Today, if you want a non-stop service into Seattle, you have to go to either Boston or New York. We have a lot of data available to us; we know where people in our catchment area are flying to and what airport they’re using to do that — so it’s a matter of aggregating that data and then presenting it to an airline and making the business case for why an airline should start that level of service at Bradley.”

Strong levels of business travel always help an airport make its case, he continued, adding that Bradley has historically been blessed with that quality. Thus, the future of business travel will be one of the factors determining the overall trajectory of its growth pattern.

Overall, many factors will ultimately decide where Bradley goes from here. And as Dillon prepares to step into retirement, he believes he’s helped put the airport on the proper flight path.

Bradley Grapples with Dramatic Decrease in Business Due to Pandemic

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Coronavirus Features Special Coverage

Plane Speaking

Travelers at Bradley

Travelers at Bradley (and there are fewer of them) will find a number of new protocols, from mandatory face coverings to more frequent cleaning and sanitizing.

Bradley International Airport has a contract with a medical laboratory willing to conduct COVID-19 testing for arriving passengers.

Kevin Dillon, executive director of the Connecticut Airport Authority (CAA), which manages the airport in Windsor Locks, Conn., thinks that would be an ideal way for healthy travelers to avoid a mandatory 14-day quarantine instituted by Gov. Ned Lamont in July.

But state leaders turned that option down.

“We have a lab that’s willing to start testing here, yet we can’t convince the Department of Public Health to allow that to occur. It makes no sense,” Dillon said. “Because what’s impacting us now is the travel advisory that’s been put in place here in Connecticut.”

According to the policy, both tourists visiting from other states and Connecticut residents returning from vacations in COVID-infested areas are required to fill out a travel advisory form and indicate where they will self-quarantine. Failure to do so incurs a $1,000 fine.

“Unfortunately, the airlines are reacting to the travel advisory by pulling flights out of the airport,” Dillon explained. “As you can imagine, it’s very, very difficult for someone to take a week vacation and then, when they come back, have to take a two-week quarantine. The same goes for business travel — people aren’t going away for two days when they have to quarantine for 14. That’s had a pretty chilling effect on our level of recovery.”

It’s a recovery — if one can call it that — from the most dramatic loss of business airports across the country have ever experienced, the post-9/11 period included. In April, passenger volume at Bradley was down 98% compared to the same period last year. The airport has recovered some of its volume, but a typical day is still some 70% to 75% below 2019 numbers. And the state of Connecticut is doing the airport no favors with one of the most rigid travelers’ advisories in the nation.

Kevin Dillon

Kevin Dillon

“Airports are competing for some very limited airline assets, aircraft and flights, so we want to present a market that’s viable. This travel advisory really starts to skew how some carriers look at Connecticut and Bradley Airport and this region.”

“I’m not questioning the medical necessity of a travel advisory — I’m not qualified to question that, and I take folks at their word that it’s is a necessary thing,” Dillon told BusinessWest. “What we have asked for here is a testing option. If you get a negative COVID test, you should be able to avoid a 14-day quarantine period. Massachusetts is doing that.”

He has other questions — including why it’s OK to cross the border for a funeral, but not a business meeting — and they all come, he said, from a place of common sense. “We’re not questioning the travel advisory, but I do think testing here at Bradley would make all the sense in the world.”

If the impact of discouraging interstate travel was a short-term thing, it would be less frustrating, but Dillon is looking far beyond 2020, when airlines will emerge from the pandemic as much smaller companies, with fewer planes to spread around the nation’s airports, and some tough decisions to make about where to put them.

“They’re really having a struggle,” he said, with some airlines saying they don’t expect to return to normal operations until 2023 or 2024. “There are going to be winners and losers coming out of this.”

This is true, he said, not only of airlines, but of airports.

“Airports are competing for some very limited airline assets, aircraft and flights, so we want to present a market that’s viable,” Dillon explained. “This travel advisory really starts to skew how some carriers look at Connecticut and Bradley Airport and this region. It’s a concern of ours not only for today but as we look to the future — what damage we’re doing to our relationships to airlines as well as their view of this market.”

Physical distancing

Physical distancing is easier when terminals are less crowded, as they are now.

For this issue’s focus on transportation, BusinessWest spoke with Dillon about how Bradley is navigating an unprecedented business challenge, and why it’s important to keep investing in the future, because the future is where this story really gets interesting.

Shifting on the Fly

Even before COVID-19 was a thing, Dillon often spoke about how Bradley was constantly competing on two levels: with Logan and the New York airports for passengers, and with every airport in the country for those precious aircraft assets. On thar front, Connecticut’s mandatory quarantine isn’t helping.

“Airlines have to be in locations like Boston and New York simply because of the population and business volume. But airlines have alternatives in terms of not having to serve Bradley and still serving a good portion of this market area,” he explained. “I don’t think it would serve the area really well without us, but an airline trying to skinny down as a result of cost-cutting measures could very well look at it that way.”

The more pressing issue in 2020 has been plummeting demand, of course. “If we don’t have passengers coming through the airport, airlines cut back, we don’t get airline fees, and no one’s here utilizing concessions, parking, renting cars, all the businesses here. When your business is off 75% to 80%, you have a corresponding drop in revenue. It’s a difficult balancing act.”

Dillon said Bradley was fortunate to receive some financial assistance from the CARES Act, which allocated $10 billion to airports across the country. Based on the allocation formula, Bradley received $28 million, which sounds like a lot of money, he went on, but to put it in perspective, that covers about three months of operating expenses and debt service. And the pandemic-related travel slowdown is now well into its sixth month.

“We are fortunate that, as an airport authority, we did create what I consider some healthy reserves, and we will rely on those reserves to some extent, but it wouldn’t be prudent to exhaust our reserves,” he said, noting that they impact bond ratings, among other things.

Bradley did institute a hiring freeze, not replacing most employees who chose to retire this year, and has cut department budgets by 10% to 20%. The CAA is also looking at further measures, including a voluntary severance program.

“It is a goal of ours to try to prevent involuntary severances,” Dillon said. “We don’t want to get to a place where we’re talking about layoffs. For now, that’s off the table. We tried to make a commitment to the employee base — first and foremost, to protect their health, and second, to protect their paycheck. As you can imagine, it’s a challenge.”

About $20 million in capital projects are on hold as well, but some are moving on, including an airport-wide restroom-renovation project that should be complete by October, and features a largely touchless experience with sinks, soap dispensers, hand dryers, and more. These features were planned well in advance of the pandemic, but Dillon said travelers will appreciate them more now.

“People want a safe, healthy, clean environment, and we try to deliver that the best we can,” he noted. “Folks think differently about hygiene in public places now; they have different expectations.”

Other protocols in place at Bradley include the expected: mandatory face coverings, more frequent cleaning and sanitization efforts at high-touchpoint areas, plenty of hand-sanitizer stations, signage detailing physical distancing rules, and plexiglass shields in high-passenger-interaction areas.

Some airlines have committed to limited capacity on planes as well, Dillon said, citing Southwest and Delta as two examples. And the airport is developing touchless kiosks where travelers don’t have to interact with an agent or touch the screen to activate the ticketing process.

Bradley’s restrooms

A major renovation of Bradley’s restrooms, including many touchless features to discourage the spread of germs, began well before the pandemic.

“The key for us is to keep differentiating ourselves from our larger competitors,” he told BusinessWest. “We want people to understand that Bradley is going above and beyond in terms of sanitizing and cleaning the facilities. And Bradley might represent a better option because it’s less congested. We’re going to keep highlighting to the traveling public why Bradley is a better alternative.”

View from the Ground

Again, however, all these efforts are blunted by the fact that considerably fewer people are traveling, and Connecticut is making it difficult to do so.

Airlines are struggling too, Dillon said, sending 135-passenger planes into the sky with only 25. And, like airports, they’re all having internal discussions about the future. Bradley’s five-year contract with carriers expired in June, and with no airlines in a position to sign another five-year deal, they opted for one-year extensions.

But even had longer-term contracts been in place, he explained, “I think a lot of people don’t understand how an airline agreement works. It doesn’t necessarily guarantee you full revenue coming in, because airlines pay revenue in large measure based on landing fees. Airlines can have a presence and pay rent for space, but they’re not required to operate a certain number of flights. If you have carriers cut operations in half, the landing fees we get are then cut in half from that carrier.”

As a difficult, uncertain year continues to unspool, there are a few bright spots, especially progress on a $210 million ground transportation center — expected to be fully operational in late 2021 — that will house car-rental services, expand public parking, and incorporate public-transit connections.

“All that money had been bonded prior to the pandemic, so we’re committed to the project,” Dillon said. “It will really transform the look of the airport and our operations. People who haven’t been to the airport recently will be surprised by the magnitude of the project and how it’s transforming the space out there.”

In addition, cargo business at Bradley has remained consistently strong. “I believe one factor is that people are staying home and doing a lot of online ordering, so we’re seeing small-package delivery — UPS, Fedex, and Amazon — all increase at the airport,” he noted. “Unfortunately, the revenue profile of cargo is much different than passenger traffic, as the bulk of the revenue at any airport comes from the passenger side of the house. But I appreciate that cargo is doing well right now.”

After all, in a year of startling setbacks, any good news is welcome. But what airports need now is clarity — and for people to get back on planes.

“It’s going to be a challenge,” he said. “I’m convinced that, by working smart and having employees work smart, we’ll be able to get through this. But it will be a balancing act for a while.”

Joseph Bednar can be reached at [email protected]