Iftikhar Ahmad, president and CEO of RIAC PHOTO: GoLocal
Rhode Island’s best story continues to get better and better.
While the incompetence of state government continues — the failed Washington Bridge, the cost to taxpayers of building a minor league soccer stadium, and a failing healthcare system — there is a quasi-public agency that is a success.
The new numbers released by the management of the Rhode Island Airport Corporation are positive and outline a framework for revamping Rhode Island.
While we know the turnaround at the airport to be a PR bonanza — rated the best airport in the country and the fastest growing — an equally big story is that the business side of the management team is unmatched.
It was just over a decade ago that the airport was underutilized and financially underwhelming.
According to the recently released third-party financial reviews:
Some of the financial successes include: the debt service coverage of 2.69x (exceeding the minimum guideline: 1.5x) and the debt per enplaned passenger of about $55 (exceeding the guideline: $100)
Airport debt has been reduced by ~ 40% since 2016
Liquidity up more than 260%, from $30.7M to ~ $111M
Cost per enplanement down 36%
Debt service coverage improved from 2.14x to 2.69x
“These two independent reviews tell the same story,” said Iftikhar Ahmad, president and CEO of RIAC. “We are investing and modernizing while protecting affordability for passengers, airlines, and taxpayers.”
The RIAC success story can serve as a blueprint for other great turnarounds.
The leadership at RIAC, led by Ahmad, a focused visionary administrator, needs to be cloned.
Well done.
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