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June 9, 2017 CFO of the Year 2017

Shea helps Bradley Airport liftoff to higher elevations

PHOTO | Steve Laschever
By Wendy Pierman Mitzel Special to the Hartford Business Journal

There's no doubt Bradley International, the second largest airport in New England, is taking off in terms of growth. That's due in large part to the hard work of Michael Shea, chief financial officer of the Connecticut Airport Authority (CAA).

Shea joined the CAA in 2013, landing back in New England after many years in San Diego, Calif., working in real estate development. That was the year the quasi-public Airport Authority, first established in 2011, truly gained autonomy and combined Bradley with the five general aviation airports in the state (Danielson, Groton-New London, Hartford-Brainard, Waterbury-Oxford and Windham).

During that transition, Shea developed a new financial management system much different than the centralized, state-run systems of yesteryear.

“The new entity allowed us to take a fresh look at everything,” Shea said. “We created new policies and procedures that allowed us to grow as an airport.”

The strategies appear to be working. The Airport Authority has grown revenue over the past five years to $70 million while keeping operational costs under budget and remaining competitive with costs per enplanement at $8.92 this fiscal year. Cost per enplanement measures how much an airline must pay to use an airport.

According to Shea, a giant step forward was the development of a new airline agreement, taking a 30-year-old document and working with Executive Director Kevin Dillon and the general counsel to modernize the offerings and create a sustainable cost structure for the airlines to operate within. This included new rates and charges for space as well as landing fees.

“Mike's efforts contributed greatly to the decision by S&P Global Ratings last year to raise Bradley's rating on its general airport revenue refunding bonds from 'A- to A,' ” said Dillon. “He has played a pivotal role in helping the CAA achieve its mission of operating in an efficient and entrepreneurial manner.”

“Finance is sometimes viewed as a back-office operation,” added Shea. “But it touches the whole organization, which is something I enjoy.”

One of the many financial improvements is the Airport Authority's 3.7 percent increase in total non-airline revenue in 2016.

“A healthy balance sheet is central for sustainable growth,” said Shea. “We are offering more amenities to travelers in a way that drives adequate revenue to the airport and allows those businesses to survive.”

Shea and the Airport Authority are optimizing customer service initiatives and offering more amenities modern-day travelers expect. The CAA has focused on convenient parking and rental car options and more restaurants and concessions, kiosks and retail offerings at Bradley.

Shea was heavily involved in the new $200 million ground transportation center plans to consolidate rental car facilities in a walkable location from the terminal to the cars.

“It's an expensive project but we've worked on structuring debt financing,” said Shea.

Debt structure is also important to enabling the many improvements and developments at Bradley to come to completion.

“Airports require constant upkeep and infrastructure,” said Shea. “And that can't occur without a solid capital improvement plan.”

By keeping up with industry trends and customer needs, Shea strategizes with the leadership team to lower the costs of getting a passenger into the airport and on a plane. The new terminal has been redeveloped and built in sections in anticipation of airline growth along with the understanding that airlines operate more efficiently now, needing fewer gates.

A goal for the CAA is to offer as many route choices to customers as possible. Within the past year, and looking ahead, Bradley will offer Aer Lingus to Europe, Norwegian Air to Scotland, Spirit to Orlando, Myrtle Beach and Fort Lauderdale, and Los Angeles as well as service to San Francisco.

While Bradley Airport operates on its own set of books, the state's general aviation airports have their own budgets. According to Shea, the smaller airports do not typically operate in the black and in the past received state subsidies. He is mindful of the need for careful management.

“Of course, with the current state of a tight budget, we are keeping an eye on budgeting needs,” said Shea.

While a focus on revenue generation has been successful, so has keeping an eye on spending.

“We've grown revenues of the [general aviation airports] as well as focused on cost control,” said Shea. “Maintaining a self-sustaining system is our goal.”

The five airports operate with private and recreational planes. According to Shea, a recent economic impact study shows general aviation brings nearly $400 million to the state in revenue outside the airport boundaries.

Part of increasing revenue includes bringing additional flight-based operations, or aeronautical service companies, into the airports.

“That these developers are willing to invest is a positive sign,” said Shea.

Shea has three young children with his wife, Teresa, and they moved back to his native New England to be closer to family.

According to Shea, “activities are many, time is short,” and he makes the most of it, coaching sports and skiing and hiking together with his family.

On the job

Guiding business principle: Maintain a sense of ownership for one's work. Be thorough and prepared.

Best way to keep your competitive edge: Embrace new technologies and challenge the status quo.

Judgment calls

Best business decision: Converting to a new financial management system

Goal yet to be achieved: Finance Bradley Airport's new ground transportation center

Personal touch in your office: Family pictures and kids' artwork

Personal side

Favorite way to relax: Family movie night

Hobbies: Golf, hockey, hiking

Last vacation: San Diego to visit family

The car you drive: Buick Enclave

Currently reading: “Hamilton”

Favorite cause: Education, cancer research

Michael Shea | Winner: Non-Profit (Full-Time Paid)

Title: Director of Financial Services & CFO

Organization: Connecticut Airport Authority

Size of organization: 150 employees; $75 million in operating revenue

Education: Bachelor’s degree in finance from Boston College; Master’s degree in accounting from University of Hartford

Previous job(s): Newland Real Estate Group, OneBeacon Insurance, AEW Capital Management and Arthur Andersen

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