Communicating the Air Service Reality ACI-NA Marketing & Communications Conference

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1 HVN Communicating the Air Service Reality ACI-NA Marketing & Communications Conference Tom Reich, Director or Air Service Development November 10, 2015 Communicating the Air Service Reality New Haven, CT (HVN)

2 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 1 NEW HAVEN A Continually Brighter Future Education & Culture Yale University & the New Haven Symphony Population Growth Highest population growth rate of any city in New England Top 60 Metropolitan Market Comparable to Knoxville & Omaha Top 30 Media Market Comparable to San Diego & Nashville Recession Proof 77,000 jobs in New Haven held steady through the recession Center for Investment Top 10 secondary city for venture capital deals #2 Bio Science cluster in New England

3 Source: U.S. Census data provided by Datasheer November 2015 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 2 HVN: 12 th Largest Catchment Area in the Northeast Rank: Airport(s): Population: 1 New York City (NYC): Kennedy/LaGuardia/Newark-Liberty 15,217,206 2 Philadelphia International Airport (PHL) 3,814,999 3 Boston Logan International Airport (BOS) 3,198,283 4 Pittsburgh International Airport (PIT) 2,066,242 5 Bradley International Airport (BDL) - Hartford, CT 2,037,830 6 TF Green Airport (PVD) - Providence, RI 1,969,204 7 Trenton-Mercer County Airport (TTN) 1,645,127 8 Westchester County Airport (HPN) - White Plains, NY 1,609,702 9 MacArthur Airport (ISP) - Long Island, NY 1,517, Lehigh Valley International Airport (ABE) - Allentown, PA 1,471, Albany International Airport (ALB) 1,396, Tweed New Haven Regional Airport (HVN) 1,376, Stewart Newburgh International Airport (SWF) 1,328, Buffalo/Niagara Falls International Airport (BUF) 1,233, Manchester-Boston Regional Airport (MHT) 1,194, Harrisburg International Airport (MDT) 1,139, Worchester Regional Airport (ORH) 1,111, Wilmington Airport (ILG) 1,101, Rochester International Airport (ROC) 1,067, Syracuse Hancock International Airport (SYR) 1,066, Atlantic City International Airport (ACY) 899, Lancaster Regional Airport (LNS) 878, Wilkes-Barre/Scranton International Airport (AVP) 749, Hagerstown Regional Airport (HGR) 724, Portland International Jetport (PWM) 550,456

4 Source: U.S. Census data provided by Datasheer November 2015 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 3 HVN: 12 th Largest Catchment Area in the Northeast PQI MSS BGR OGS PBG BTV RKD SLK AUG ART BHB PWM RUT LEB PSM ROC SYR BUF MHT ALB ITH ORH BOS JHW ELM BGM ERI BFD BDL PVD HYA AVP SWF FKL DUJ HVN IPT HPN MVY ACK SCE ABE ISP NYC PIT LBE JST AOO MDT LNS TTN PHL MGW HGR ILG ACY

5 Source: U.S. DOT O&D Passenger Survey & Adjusted ARC Passenger Booking Data (CY 2013) Communicating the Air Service Reality New Haven, CT (HVN) - Slide 4 HVN Catchment: Top 25 True-Market O&D Domestic Markets HVN Catchment BDL Catchment True Mkt. True Mkt. HVN vs. BDL Rank: Market Name: O&D PDEW O&D PDEW Ratio 1 Orlando/Sanford, FL (MCO & SFB) 347, , % 2 South Florida (FLL, MIA & PBI) 347, , % 3 Chicago, IL (MDW & ORD) 163, , % 4 LA Basin, CA (BUR, LAX, LGB, ONT & SNA) 145, , % 5 Tampa/St. Petersburg, FL (PIE & TPA) 144, , % 6 Washington/Baltimore (BWI, DCA & IAD) 130, , % 7 Las Vegas, NV (LAS) 129, , % 8 SF Bay Area, CA (OAK, SFO & SJC) 127, , % 9 Denver, CO (DEN) 98, , % 10 Atlanta, GA (ATL) 96, , % 11 Ft. Myers, FL (RSW) 95, , % 12 San Juan, PR (SJU) 85, , % 13 Charlotte, NC (CLT) 85, , % 14 Phoenix, AZ (PHX) 69, , % 15 Dallas/Ft. Worth, TX (DAL & DFW) 56, , % 16 San Diego, CA (SAN) 53, , % 17 Houston, TX (HOU & IAH) 51, , % 18 Seattle, WA (SEA) 48, , % 19 New Orleans, LA (MSY) 45, , % 20 Raleigh/Durham, NC (RDU) 44, , % 21 Nashville, TN (BNA) 40, , % 22 St. Louis, MO (STL) 39, , % 23 Charleston, SC (CHS) 37, , % 24 Detroit, MI (DTW) 37, , % 25 Jacksonville, FL (JAX) 35, , %

6 HVN Catchment: True Market O&D Passengers by Airport of Use BOS 3% HVN 2% Others* 0% BOS 3% Others** 1% HVN 0% PVD 7% HPN 6% EWR 5% BDL 36% EWR 11% LGA 7% BDL 5% JFK 18% LGA 23% JFK 73% New Haven Domestic True Market (3,372,855 O&D Passengers) New Haven International True Market (1,231,534 O&D Passengers) Source: U.S. DOT O&D Passenger Survey & Adjusted ARC Passenger Booking Data (CY 2013) *ABE, ALB, AVP, ISP, SWF Communicating the Air Service Reality New Haven, CT (HVN) - Slide 5

7 Source: U.S. DOT O&D Passenger Survey via DataBase Products Communicating the Air Service Reality New Haven, CT (HVN) - Slide 6 HVN s Historical O&D Passenger Levels Total HVN Annual O&D Passengers 300, , , , , , , ,000 68,370 50,000 0

8 Most New Haven Area Travelers Drive to Other Airports BOS Drive Time from New Haven HPN HVN BDL PVD Airport: Time: Miles: Tweed New Haven (HVN) 0:14 4 Hartford Bradley (BDL) 1:01 52 White Plains (HPN) 1:12 54 New York LaGuardia (LGA) 1:38 76 Providence TF Green (PVD) 1:39 95 New York Kennedy (JFK) 1:42 80 Newark Liberty (EWR) 1:58 94 Boston Logan (BOS) 2: EWR LGA JFK Note: Shortest Routing Shown, Does Not Take Into Account Traffic Source: Google Maps April 2012 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 7

9 Communicating the Air Service Reality and Developing Air Service Despite Industry Trends Communicating the Air Service Reality New Haven, CT (HVN) - Slide 8

10 Educating the Community Runway Length is a Limiting Factor Weight restrictions Airlines don t like these types of restrictions Limits new air service options We have a plan to pave runway safety areas to increase takeoff distances by 1,000 Driving to Other Airports Hurts the Community Flying from HVN proves more demand exists High performing PHL serve makes Washington discussions easier to have Prop aversion is making this a difficult sell Network Carriers are Serving Fewer Not More Destinations Larger airports get larger, while smaller airports get even smaller HVN s limited service puts us behind the 8-ball Airlines have an interest in HVN We just need the longer runway Leisure Destinations or LCCs Are Not Possible Without a Longer Runway Airlines don t flag stop for fuel Passengers don t appreciate unnecessary stops en route Longer runway solves this problem Communicating the Air Service Reality New Haven, CT (HVN) - Slide 9

11 Communicating the Air Service Reality New Haven, CT (HVN) - Slide 10 Funding A Marketing Strategy & Incentive Program How Will We Market New Air Service? Marketing helps fill planes airlines make money We need a plan and a budget We have a marketing plan and budget ready to implement Who Will Pay for the Marketing? Top 30 Media Market Advertising isn t cheap The airport has some money The community needs to put up the rest We have funding sources in place Show Me The Money!!! Pledge to shift Millions in air travel toward new HVN service Fund revenue guarantees Seek SCASDP funds Convincing people to put their money where their mouth is isn t easy

12 THANK YOU Communicating the Air Service Reality New Haven, CT (HVN)

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