Lakeland Linder International Airport was faced with the challenge of finding a private vendor for its new Transportation Security Administration (TSA) checkpoint concession shop. Although several businesses were approached, response was lackluster due to low passenger volume at Lakeland Linder – eventually, however, an unlikely partnership formed between Lakeland Linder & Aerospace Center for Excellence (ACE), located nearby, and Lakeland Linder was finally successful in finding one!
Challenge: High-Risk, Low-Reward Proposition
At busy airports, concession shops thrive by catering to a captive audience of travelers in search of refreshments, reading materials and travel accessories. At Lakeland Linder Airport however, the situation differs dramatically with Avelo Airlines set to begin two weekly flights to New Haven Connecticut starting June 13th; thus limiting Lakeland Linder’s potential customer base solely to ticketed passengers who have cleared security as well as authorized personnel.
Kris Hallstrand acknowledged the high risk-low reward nature of the endeavor during its inaugural year. Hallstrand explained to commissioners, “We spoke to many individuals; none are interested.” One private sector player offered vending machines instead. I strongly disliked that idea.
Solution: Synergy and Educational Opportunities
Hallstrand discussed her dilemma with former Airport Director Gene Conrad, now serving as president and CEO of Aerospace Center & Sun ‘n Fun (ACE). Conrad proposed having ACE operate the concession shop with great enthusiasm from Hallstrand who immediately saw its potential synergy between both organizations.
“Look, let’s be realistic: talking about synergy is easy if you consider that we are huge contributors and supporters of aviation programs at ACE, thus helping them raise more funds,” Hallstrand commented.
Aerospace Center for Excellence: An Excellent Partner
Aerospace Center for Excellence (ACE) is a 501(c)(3) non-profit dedicated to aerospace and STEM education, boasting a 25-acre campus comprising 14 buildings on which it runs a variety of educational programs such as outreach initiatives, field trips, interactive laboratories, scholarships and summer camps for 50,000+ students annually. They are world leaders when it comes to producing licensed teenage private pilots.
ACE maintains facilities including the Florida Air Museum, Central Florida Aerospace Academy (a public high school), Skylab Innovation Center (containing flight simulators and drone labs) and ELEVATE Aerospace & Logistics Business Incubator. By operating its concession shop, ACE can generate additional income that supports its educational missions.
Lakeland City Commission unanimously approved ACE’s three-year lease to operate a retail space within Lakeland Terminal’s secure passenger lounge, including favorable terms such as waived rent for the first year, customary concession fees of 12% on gross revenue and up to $25,000 worth of improvements made to their space, at favorable terms for both parties involved.
Contract terms also allow either party to terminate with 30 days written notice, giving both ACE and the city more flexibility and creating more flexibility for both. Commissioner Sara Roberts McCarley applauded this initiative, noting “I love how Aerospace can use creative revenue streams; not to mention having students benefiting from sales.”
As Lakeland Linder Airport expands and welcomes more flights, the concession shop operated by ACE will serve as a testament to the power of collaboration and educational excellence within aviation.