Memphis-Shelby County Airport Authority (MSCAA) Market Research Report

Background

The Memphis-Shelby County Airport Authority (MSCAA) is a self-funded entity responsible for the operation and maintenance of Memphis International Airport (MEM) and two general aviation airports: General DeWitt Spain Airport and Charles W. Baker Airport. Established in 1969, MSCAA's mission is to provide a safe, efficient, and customer-focused airport system that drives economic growth in the Memphis region.

Key Strategic Focus

MSCAA's strategic objectives include:

Infrastructure Modernization: Enhancing airport facilities to accommodate increasing passenger and cargo traffic.

Operational Efficiency: Implementing advanced technologies and processes to streamline airport operations.

Economic Development: Fostering partnerships to stimulate regional economic growth through aviation-related activities.

Customer Experience: Improving amenities and services to enhance passenger satisfaction.

Financials and Funding

For Fiscal Year 2025 (July 1, 2024 – June 30, 2025), MSCAA approved a balanced Operations and Maintenance budget of $165.2 million. This budget reflects a 15% increase in operating revenues compared to the previous year, primarily due to higher terminal, landing, and passenger parking revenues. Operating expenses, debt service, and capital outlay increased by 7%, influenced by inflationary pressures and personnel expenses. The budget sets terminal rates at $114.63 per square foot and landing fees at $2.2976 per 1,000 lbs. of landed weight.

In March 2025, financial rating agencies updated MSCAA's ratings:

Moody’s Investors Service: Assigned an "A2" rating with a "Stable" outlook.

Fitch Ratings: Assigned an "A" rating with a "Stable" outlook.

Kroll Bond Rating Agency (KBRA): Assigned an "A+" rating with a "Stable" outlook.

These ratings reflect MEM's strong post-pandemic enplanement growth, solid financial performance, and significant cargo operations.

Pipeline Development

MSCAA has undertaken several significant infrastructure projects:

Concourse B Modernization: Completed in February 2022, this $245 million project consolidated airline, retail, food, and beverage operations, enhancing passenger flow and amenities.

Centralized Deicing Facility: Opened in November 2022, this $309 million facility accommodates 12 wide-body planes, improving operational efficiency during winter conditions.

Terminal Modernization & Seismic Program (TMSP): Initiated in July 2024, this is the largest capital project in MEM's history, focusing on seismic upgrades and terminal enhancements.

Technological Platform and Innovation

MSCAA leverages advanced technologies to enhance airport operations:

Automated Systems: Implementation of automated baggage handling and security screening systems to improve efficiency.

Sustainability Initiatives: Adoption of energy-efficient systems and sustainable practices to reduce environmental impact.

Digital Transformation: Utilization of data analytics and digital platforms to optimize airport management and passenger services.

Leadership Team

MSCAA is governed by a seven-member Board of Commissioners and led by a team of experienced professionals:

Board of Commissioners:

Michael Keeney: Chair

Jack Sammons: Vice Chair

Belinda Anderson: Secretary

Pamela Clary: Commissioner

Pace Cooper: Commissioner

Gregory Fletcher: Commissioner

Albert Glenn: Commissioner

Executive Leadership:

Terry S. Blue, A.A.E.: President & Chief Executive Officer

Marshall Stevens, A.A.E.: Vice President of Operations and Chief Operating Officer

Sylvester Lavender: Vice President of Finance and Administration/Chief Financial Officer

Nathan Luce, P.E., A.A.E.: Director of Airside Operations and Public Safety

Lori Morris: Director of Terminal Operations

Kenneth Parrish: Director of Procurement

Jeffrey W. Hanley, C.M.: Director of Finance

Brian A. Tenkhoff, P.E., C.M.: Director of Development

James A. Hay II, C.M.: Senior Director, Terminal Modernization

Zach Shaw, P.E., PMP: Director of Maintenance

David Ritter, C.M., ACE: Director of Information Technology

Glen Thomas, C.M.: Director of Strategic Marketing and Communications/Public Information Officer

Jason McBride, C.M.: Director of Properties

Wes Blair: Chief of Public Safety

Michael Fulton: Director of Government Affairs and Business Diversity Development

Amber Floyd: General Counsel

Regina Armstrong: Senior Manager of Business Diversity Development

Julie Stewart, P.H.R.: Director of Human Resources

Leadership Changes

In November 2023, Terry S. Blue transitioned into the role of President and CEO, succeeding the retiring Scott Brockman. Blue, who joined MSCAA in 2015, previously served as Executive Vice President of Operations and Chief Operating Officer.

Competitor Profile

Market Insights and Dynamics

Memphis International Airport (MEM) is a critical hub for both passenger and cargo traffic. In 2024, MEM served a record 4.9 million origin and destination passengers, reflecting a steady increase in passenger traffic. Additionally, MEM handled over 8.27 billion pounds of cargo, maintaining its position as the second busiest cargo airport globally.

Competitor Analysis

While MSCAA operates MEM, it faces competition from other regional airports in terms of passenger and cargo traffic. However, MEM's strategic location and status as FedEx's global hub provide a competitive advantage in the cargo sector.

Strategic Collaborations and Partnerships

MSCAA collaborates with various stakeholders, including airlines, federal agencies, and local businesses, to enhance airport operations and services. Notably, the partnership with FedEx has solidified MEM's position as a leading cargo hub.

Operational Insights

MSCAA's strategic initiatives, such as infrastructure modernization and technological advancements, have strengthened its market position. The focus on enhancing passenger experience and operational efficiency differentiates MEM from competitors.