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Branson Airport: Private Aviation Success

Here are potential responses to the discussion questions: 1. Using the four functions as your guide, Jeff Bourk would face challenges related to planning (researching demand and selecting airlines), organizing (determining staffing needs and responsibilities), leading (motivating employees at a new private airport), and controlling (monitoring performance and addressing issues like the city contract dispute). 2. The managerial challenges setting up the airport operations were likely more focused on planning, organizing and leading a new venture, while current challenges managing the established airport operations involve more controlling-related tasks like monitoring performance, addressing ongoing issues and adapting to changes over time. 3. In negotiating contracts, Jeff Bourk would play a planning role by researching airline needs.

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Mian Mubeen
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143 views6 pages

Branson Airport: Private Aviation Success

Here are potential responses to the discussion questions: 1. Using the four functions as your guide, Jeff Bourk would face challenges related to planning (researching demand and selecting airlines), organizing (determining staffing needs and responsibilities), leading (motivating employees at a new private airport), and controlling (monitoring performance and addressing issues like the city contract dispute). 2. The managerial challenges setting up the airport operations were likely more focused on planning, organizing and leading a new venture, while current challenges managing the established airport operations involve more controlling-related tasks like monitoring performance, addressing ongoing issues and adapting to changes over time. 3. In negotiating contracts, Jeff Bourk would play a planning role by researching airline needs.

Uploaded by

Mian Mubeen
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Flight Plans

With a small year-round population, Branson, Missouri, is in a

location not easily accessible by air service. The city, best

known for its country music and music variety shows and

family-style attractions, also has the kinds of outdoor activities

that attracted more than 8 million visitors last year, “earning it

the unofficial nickname ‘Vegas without the gambling.’” About

95 percent of those visitors come by car or bus. But now there’s

a new show in town—the Branson Airport. The $155 million

airport, which opened in May 2009, is an experiment that many

people are watching. The airport is generating interest from city


governments and the travel industry because it’s the nation’s

first commercial airport built and operated as a private, for-

profit business with absolutely no government funding. As one

expert said, “...unpretentious little Branson Airport could have

an outsize effect it if works. It could turn what now is a mostly

regional tourist spot into a national destination for tourists.”

Steve Peet, the airport’s chief executive, admits that he had no

idea where Branson was in 2000. But by 2004, he was

convinced there was money to be made flying tourists there.

He says, “If you were ever going to think about building a

private commercial airport, this would be the place to do it.

How many more visitors would come here if we made it easier


and affordable for them? It seemed like an incredible

opportunity.” So, using private financing, he decided to build a

new commercial airport a short distance south of Branson’s

popular music shows district. Both Peet and Jeff Bourk,

executive director of the airport, continue to tackle the

managerial challenges of turning that dream into reality.

Construction work on the airport terminal and the 7,140-foot

runway (which can accommodate most narrow-body jets) went

smoothly. Bourk believed that much of that was due to minimal

red tape. Because the airport wasn’t using federal assistance, it

didn’t face the restrictions that accompany taking government

money, which also meant it could pick and choose the airlines it
allowed in. To attract those airlines, the airport agreed to not

allow other competitors in. Also, the airport owners kept the

airlines’ operating costs low since airport employees do much

of the work usually done by an airline’s ground staff. Initially,

the airport’s owners offered exclusive contracts to AirTran and

Sun Country on certain routes to Branson. Now, Frontier

Airlines and the newly-formed Branson Air Express have added

service. Mr. Peet emphasizes that they want the airlines to

succeed. “We want to build real service, sustainable service.”

The airport earns money from landing fees (based on number

of passengers, not on weight), aircraft fuel sales, a percentage

of every sale at the airport’s facility, and a $8.24 fee paid by the
city of Branson for each arriving passenger. To reach Peet’s goal

of 250,000 passengers a year, the airport needs only 685

passengers (five to six planeloads) a day. He says, “What we’re

doing is going to work.” But first, they have to deal with some

significant turbulence. Branson city officials (who have been

elected and hired since the original agreement was signed) now

say that the contract between the city and the airport regarding

the arriving passenger fee may not even be constitutional.

Airport officials respond that, “We have a legal document and

we expect to be paid.” And Bourk maintains that Branson

benefits from every tourist that goes through the airport. “We
bring in high-quality tourists all over the country to spend

money in Branson for a cheap price of $8.24.”

Discussion Questions

1. Using the four functions as your guide, what challenges would Jeff Bourk face in
managing the Branson Airport?

2. Again, using the four functions as your guide, do you think the managerial
challenges Jeff Bourk faced when getting the airport up and running are different
from what he faces now in actually overseeing the airport’s operation? Explain.

3. What management roles would Jeff Bourk be playing as he (a) negotiates new
contracts with potential airlines, (b) works with the airport employees in
providing a high level of customer service to arriving and departing passengers,
and (c) resolves the contractual issues with the city of Branson? Be specific and
explain your choices.

4. What skills would be most important to a manager like Jeff Bourk? Explain your
choices.

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