The Case
You are the Lead Asset Manager for the Northwood Regional Airport Authority. After years of planning, the authority has finally secured initial funding for "Project Phoenix," a critical expansion that includes a new international terminal and a longer runway. The mood, however, is far from celebratory. The initial proposal, championed by a since-departed development director, is now viewed as dangerously optimistic. Whispers in the boardroom are growing louder, questioning the project's financial foundations and its exposure to market volatility.
The Airport Director, a pragmatist, sees the storm clouds gathering. She has pulled you aside, expressing a complete loss of confidence in the original plan. The board is getting cold feet, and key financial backers are asking pointed questions about risk mitigation. The project's momentum is stalling, and its entire future is at risk.
Your mission is clear, if daunting. You must go back to the drawing board, armed with the latest data and a healthy dose of realism. You need to forge a new, integrated plan that honestly confronts the financial and operational risks. More than that, you need to create a communication strategy that can win back the trust of nervous stakeholders and get Project Phoenix cleared for takeoff.
Resources and Evidence
You have been given access to the following documents and data to conduct your analysis and prepare your briefing.
Key Document: MEMORANDUM: Project Phoenix Initial Proposal
Northwood Regional Airport: 10-Year Data & Projections
| Year | Passenger Volume Actual | Passenger Volume Projected | Operating Revenue M | Operating Expenses M | Construction Cost Index | Interest Rate Projected |
|---|---|---|---|---|---|---|
| 2014 | 2254890 | None | 90.2 | 73.1 | 98.5 | None |
| 2015 | 2361245 | None | 94.5 | 76.5 | 99.1 | None |
| 2016 | 2488310 | None | 99.5 | 80.1 | 100.2 | None |
| 2017 | 2615450 | None | 105.8 | 85.2 | 100.8 | None |
| 2018 | 2750110 | None | 112.8 | 91.1 | 101.5 | None |
| 2019 | 2885990 | None | 118.3 | 96.4 | 102.3 | None |
| 2020 | 1154396 | None | 55.2 | 68.9 | 102.8 | None |
| 2021 | 1985220 | None | 89.3 | 81.5 | 103.1 | None |
| 2022 | 2829315 | None | 124.5 | 102.1 | 103.7 | None |
| 2023 | 3001880 | None | 132.1 | 109.6 | 104.2 | None |
| 2024 | None | 3031898 | 134.9 | 113.3 | 105.0 | 4.5 |
| 2025 | None | 3062217 | 137.8 | 117.1 | 109.4 | 4.9 |
| 2026 | None | 3092839 | 140.7 | 121.0 | 113.8 | 5.3 |
| 2027 | None | 3123767 | 143.7 | 125.0 | 118.2 | 5.7 |
| 2028 | None | 3155005 | 146.7 | 129.1 | 122.6 | 6.1 |
| 2029 | None | 3186555 | 149.8 | 133.3 | 127.0 | 6.5 |
| 2030 | None | 3218421 | 152.9 | 137.6 | 131.8 | 6.9 |
| 2031 | None | 3250605 | 156.0 | 142.0 | 136.2 | 7.2 |
| 2032 | None | 3283111 | 159.2 | 146.5 | 140.6 | 7.5 |
| 2033 | None | 3315942 | 162.5 | 151.1 | 145.0 | 7.8 |
Key Document: EMAIL: Urgent Concerns re: Project Phoenix Financials
📊 View Diagram: Northwood Airport Expansion: Key Stakeholders
Your Task
Your assignment is to develop a briefing document that presents a realistic, integrated financial and risk plan for Project Phoenix. This document will be the primary tool for rebuilding confidence with the Airport Authority Board and other key stakeholders. Your analysis and recommendations will be evaluated based on the following rubric.
As the Lead Asset Manager, you must deliver a concise (2-3 page) briefing document for the Airport Authority Board. Your document must be structured to include four key sections: 1. Executive Summary: A brief, high-impact overview of the situation, your key findings, and your final recommendation for moving forward. 2. Revised Financial Plan: An analysis of the provided data, presenting a realistic financial forecast that integrates construction costs, interest rates, and revenue projections. 3. Risk Register: A clear identification of the top 3-5 financial, operational, and/or construction risks, along with a specific, actionable mitigation strategy for each. 4. Stakeholder Communication Plan: An outline of the key messages you will use to communicate your revised plan to three different stakeholder groups from the provided map (e.g., Lenders, Airline Partners, and Community Groups).
Submit Your Work
Insert DropBox here
Next Steps
Congratulations on completing the Project Phoenix case study. You've tackled a complex, real-world challenge in asset management. Please take a moment to upload your completed briefing document to the submission area.
Once your submission is complete, you can navigate back to the main course page to continue your learning journey.
