Overview of Air Service in the Treasure Valley

Overview of Air Service in the Treasure Valley

Key Discussion Points • Air Service Industry Overview • Current Air Service & Airport Comparisons • Future Opportunities • Initiatives and Action Steps

Air Service Industry Overview Airlines Decrease Capacity System Wide to Increase Load Factor and Yield

Air Service Industry Overview Industry Designed Based on Relatively Inexpensive Fuel 5 -Year Average US Price per Gallon of Jet Fuel

Air Service Industry Overview Industry Losses – Not Sustainable Long Term

Air Service Industry Overview Ten Major Carriers in 2000 – Four Today Four Airlines Account for Approximately 85% of the Market

Boise Air Service Overview and Opportunities

Route Map 2002 • Service by 7 airlines • 18 non-stop destinations 2007 • Service by 8 airlines • 21 non-stop destinations

Route Map - 2014 • Service by 6 airlines • 17 non-stop destinations

BOI Top 12 Destinations

Airline Passenger Share at Boise Alaska Delta Allegiant United USAirways Southwest Strong Competitive Environment with No Single Dominant Carrier

BOI Traffic/Capacity Trends YE Jul 2013 capacity down 5% with passengers down 4% = improved load factors.

2012 Airline Seats per Resident in MSAs with Populations of 550, 000 -750, 000 City/MSA 2011 MSA Population 2012 Seats per Resident Fort Myers, FL 631, 330 4, 348, 031 6. 9 Boise, ID 627, 664 1, 661, 018 2. 6 Charleston, SC 682, 121 1, 679, 559 2. 5 Little Rock, AR 709, 901 1, 577, 604 2. 2 Des Moines, IA 580, 255 1, 263, 669 2. 2 Syracuse, NY 662, 553 1, 331, 420 2. 0 Colorado Springs, CO 660, 319 1, 110, 411 1. 7 Greensboro NC 730, 966 1, 215, 618 1. 7 Madison, WI 576, 467 955, 349 1. 7 Harrisburg, PA 552, 911 900, 591 1. 6 Akron, OH 701, 456 1, 139, 634 1. 6 Wichita, KS 625, 526 967, 455 1. 5 Knoxville, TN 704, 500 1, 070, 739 1. 5 Sarasota, FL 709, 355 767, 362 1. 1 Wilkes-Barre/Scranton, PA 563, 223 347, 176 0. 6 Augusta, GA 561, 858 326, 745 0. 6 Toledo, OH 650, 266 94, 110 0. 1 Stockton, CA 696, 214 70, 855 0. 1 Youngstown, OH 562, 739 38, 308 0. 1

Seat Per Capita Comparisons Boise exceeds all comparison markets except Spokane in seats per capita for YE 2 Q 2013.

O&D Passenger and Airfare Comparisons Only 2 comparison markets have lower average fares than Boise: Spokane and Dayton.

BOI Forward Looking Schedule Year-over-Year Capacity growth will occur in every month (except March).

Recent Announcements / Additions • Increased Frequencies to Existing Hubs • Non Stop Service to San Diego (Alaska Airlines) • Non Stop to Salt Lake City (Alaska Airlines) • Non Stop Service to Chicago Midway (Southwest Airlines) Seasonal

Things to Watch • Spokane – Only Point to Point Service • New Routes – San Diego and Chicago MDW • New Competition – Alaska to Salt Lake City • Today’s Airline Environment Use It or Lose It!

Factors Influencing Service Decisions • Market Demand • Yield per Available Seat Mile • Cost per Available Seat Mile – Fuel is a major driver • Aircraft Availability – size and type • Route Stage Length • Fit within airline business strategy • Industry opportunities and challenges • Airport Costs

American/USAirways Merger Opportunities

Future Development Opportunities • Increased Frequencies to Existing Hubs • Domestic Airlines Are Not Adding Net New Aircraft (Replacement) • Build Service Through Increased Frequencies and Larger Aircraft Sizes • One Flight at a Time

Next Steps Three Key Ways to Support Air Service • Utilize Existing Service • Provide Information on Travel Needs • Support Air Service Recruitment Efforts

Thank You! Contact Info Rebecca Hupp rhupp@cityofboise. org Like Boise-Airport on Face. Book Follow iflyboise on twitter