How an Act of Political Courage Created the Airport Authority

It was an act of bipartisanship rarely seen these days.

In the late 1990s, against considerable odds and conventional political wisdom, Bob Cranmer, a Republican Allegheny County Commissioner, teamed up with a Democratic colleague, Mike Dawida, to create the Allegheny County Airport Authority.

“What Cranmer did was very important, and we would not have an authority if he had not done that,’’ said Jeffrey Letwin, the lawyer hired to shepherd the creation of the ACAA who now serves as its solicitor. “He was always someone who wanted to do the right thing and he knew in many instances it would cause the end of his political career.”

At the time, Cranmer and the other commissioners were in their last terms. A new form of county government, led by a single executive, would take office in 2000. In the race for County Executive, Democrat Cyril Wecht opposed the creation of an airport authority. Republican candidate Jim Roddey favored it.

On Sept. 16, 1999, the county commissioners approved the transfer of two airports to the airport authority in a 2-1 vote, with Republican Commissioner Larry Dunn the lone no. The deal still needed the approval of the Federal Aviation Administration, and the agency was in no hurry to make a ruling. The FAA tends to defer to local leaders on airport governance, so the agency waited for clarity.

On Nov. 2, 1999, Roddey defeated Wecht in the race for County Executive by 5,300 votes, or 1.5 percent of the 349,000 ballots cast. And with that slim margin making the difference, the FAA approved the transfer of the airports to the ACAA on Nov. 3. Lawsuits that had been filed by various parties to stop the transfer were withdrawn.

Changing how an airport is governed is not easy. Transitioning the financial, legacy obligations and dealing with opposing political positions is not for the faint of heart. The move to an authority was first suggested in Allegheny County in 1981 when airline deregulation was transforming the industry and USAir was growing rapidly at Greater Pittsburgh Airport.

But county commissioners wanted to keep the airport under their control, in part because of the jobs there. Under county government, airport leadership often changed after an election cycle. In the 10 years between 1987 and 1997, five different aviation directors ran the airport. From 1968 to 1981, there were four different directors, four deputy directors and eight assistant directors.

“The airport director was a plum job, but none of them knew anything about running an airport or airlines,’’ Cranmer recalled. “We needed professional management, and you cannot have a team that will win if the players are not qualified.”

Cranmer said former Pittsburgh Post-Gazette editor John Craig floated the idea of an airport authority to him in the mid 1990s. Cranmer and Dawida used the 5th anniversary of the Pittsburgh International Airport’s new terminals to announce their intent to create an airport authority to run PIT and Allegheny County Airport. USAir – an important voice – supported the effort in 1998.

For former County Executive Rich Fitzgerald, the creation of the authority professionalized airport management. “With the Department of Aviation, you might have a guy that was running the Parks Department one day and the next he’s running the Aviation Department. You need to have a professional that understands the industry as opposed to just running a physical plant.”

Fitzgerald hired current airport CEO Christina Cassotis in 2015. “I can tell you Christina probably would not have taken the job if it had been a director,’’ he said.

Best and the brightest

According to Airports Council International – North America, about 53 percent of the commercial airports in the country are run by cities, counties, or states; and more than 40 percent are run by authorities. ACI-NA does not take a position on which model is best, and, like the FAA, believes local communities should determine an airport’s governance model.

What is important is strong leadership, said ACI-NA Vice President Matt Cornelius.

“It makes a difference who your CEO is, but also having a board or a city council, whatever the model, to have a perspective on solving problems, being progressive. There are municipal airports that are similarly innovative and progressive,” Cornelius said.

Cranmer agrees. “Was it a good idea to change form of government? Yes. Absolutely. [But] what has happened with the airport since Christina Cassotis took over, I am an unabashed fan. She is the General Patton of Allegheny County. She gets things done and what she is doing justifies the battle I fought.”

For her part, Cassotis said in a recent Pittsburgh Business Times op-ed that the team is what is important.

“Good governance alone is not the answer. The team that I have assembled at ACAA, the people, have made our success happen … Operating as close as possible to a private business, we attract people who want to be innovators, and we give them a runway to succeed.”

So, perhaps the most important distinction in running an airport is having a hiring program that is not restricted by municipal covenants on residency. Airports also need to be able to hire the best in an increasingly competitive environment and compensate them at market rates, often competing with the private sector for top talent.

“If the pay and the benefits and the rules around employment aren’t keeping up with our industry, or just the general macroeconomic trends, then they’re going to find themselves less competitive than those who are able to recognize that ‘hey, we’re going to have to pay,’” Cornelius said.