MuniMarket Pulse Interviews Kevin Kone of the San Francisco International Airport on Managing Costs and Using Opportunities Provided by the ARRA to Access Capital Markets
MuniMarket Pulse is the most listened-to podcast focused exclusively on the municipal bond market. We have posted more than 160 episode interviews with economists, bankers, issuers, bond lawyers and others on issue affecting the municipal market.

SAN FRANCISCO, CA, April 29, 2010 /24-7PressRelease/ -- MuniMarket Pulse recently posted a two-part podcast interview with Kevin Kone, Assistant Deputy Director of San Francisco International Airport (SFO) on "Steps the Airport Has Taken to Manage Costs and Increase Revenue Despite the Recession". This podcast discussion shows listeners that through smart financial management, a public airport authority like the SFO can successfully navigate the financial markets despite the recession and can emerge as a successful transportation hub for San Francisco and the Pacific Region.

The SFO increased revenues by finding out what customers wanted by using focus groups, a technique usually utilized by advertising agencies. According to Kone, "...after the events of 9/11 and SARS we lost a significant amount of our on-airport parking. In the current year, about $60 million of our revenues come from parking and five years back it was in the $40 million range... through focus groups, we found out what people are looking for, the conveniences...that the off-airport competitors simply couldn't offer."

By concentrating on keeping SFO in a strong financial position, the airport got a rare upgrade from Fitch last October. "We were an "A" and we went to "A+" and everybody knows that upgrades are hard to come by even in a good environment. The rest of the nation's airports have had downturns in growth during the same time. So I think it's a combination of financial management, overall airport management, growth in the enplanements, and adding of low-cost carriers to our mix of carriers have all played into the upgrade that we received from Fitch in October," said SFO's Kone.

In contrast to much of what has recently been written about municipalities having interest rate swaps that are underwater, the SFO seems to have successfully navigated through the derivatives minefield. "Swaps have been a good thing. I know that there's been a lot of disruption in the market with municipal issuers as well as swap providers, given where interest rates are and credit ratings...the thing that I like to tell people is that we need to remember that we're into these swaps long term. These are 30-year swaps and over the life of the swap it's going to produce savings. So we haven't been spooked," stated Kone.

MuniMarket Pulse is planning on interviewing a number of issuers this year. "We like to cover a variety of topics and invite guests that can bring insights to our listeners. Talking to municipalities about their experiences with tax-exempt bonds, swaps, BABs, and other debt structures is something that we will do throughout the remainder of this year," said MuniMarket Pulse producer Cynthia Heneage.

For more information about MuniMarket Pulse or its sister podcasts CapitalMarket Pulse and MMA MuniCast, please visit http://podcast.derivactiv.com/. A complete audio interview and transcript can also be found at http://podcast.derivactiv.com/

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