Porter Today. First flight October rd largest scheduled carrier in Canada

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2 Porter Today First flight October rd largest scheduled carrier in Canada Highest on-time performance of the three major scheduled carriers in Canada 1,400 employees $2 billion annual economic impact at Billy Bishop Toronto City Airport Fleet of 26 Bombardier Q400 aircraft 19 destinations in Canada and the U.S. 2.5 million passengers in 2012 Over 9 million passengers since first flight 2

3 Current Route Map 3

4 Award-Winning Customer Experience Most legroom in premium economy Complimentary meals, beer, wine Business lounges for all passengers 4th highest rated airline in the world Porter s main hub is 2.8km from downtown Toronto Complimentary Toronto shuttle bus to Union Station Fast check-in and security Highest airline rating in North America Frequent daily flights 82% extremely or very satisfied independent business traveller 4

5 Billy Bishop Toronto City Airport Downtown location plus simplified terminal experience saves passengers two hours or more on a round trip flight 5

6 Highest Canadian On-Time Performance On-time Performance (A15) 85% 84% 78% Porter 83% 81% Westjet Air Canada 82%81% 81% 75% 72% 64% 63% 4Q Q % 1Q Q Q Q

7 Porter s Growth Porter has Reduced Fares by Up To 60% Porter has increased access to air travel through convenient local service and easy connecting service to Porter s other domestic and international destinations Markets have grown with stimulation from competition, reduced fares and repatriation of Canadian travellers from US border cities Increased air traffic increases economic activity Fare Impact Market Size Impact (000s) Pre-Porter Post Porter $232 $296 $316 Pre-Porter Post Porter $ $109 Sudbury -53% $99 Windsor -55% $ $109 Sault Ste Marie Timmins -60% -66% Sudbury Windsor Sault Ste Marie Timmins +38% +40% +67% +54% 7

8 Pedestrian Tunnel Opening in 2014 $82.5 million tunnel is fully private sector funded and ultimately paid for by the existing $20 passenger AIF 8

9 Porter s Plans Porter launched in 2006 with a goal to create a regional airline based out of Billy Bishop Toronto City Airport We have now successfully executed on this strategy serving key regional markets within an 800 mile radius of Toronto Porter has developed a 5 year strategic plan with consideration for the following: Implementation of a Runway End Safety Area currently being evaluated by Transport Canada Strong demand from our passengers to expand service from Toronto 9

10 Financial Highlights CS100 is the Ideal Airplane for BBTCA Latest in aircraft and engine technology These whisper jets are the quietest commercial jet in-production with the best environmental footprint Performance supports transcontinental flying with a modest runway extension Porter has finalized a conditional contract with Bombardier for 12 Firm and 18 Option CS100 aircraft plus 6 purchase rights for Q400 10

11 Transcontinental Opportunity Porter is pursuing a strategic plan that would accommodate an expanded range circle out of Billy Bishop Toronto City Airport 11

12 Financial Highlights Designed for an Urban Environment Advanced Aircraft Technology with game-changing engine creates a whisper jet with best-in-class environmental scorecard 12

13 Comparably Sized to the Q400 CS100 is only slightly larger than Porter s current Q400 13

14 CS100 will be operated out of London City Airport and Stockholm Bromma Airlines will soon fly the CS100 into some of the most geographically-constrained and environmentally-sensitive airports in Europe These airlines and airports continue to work in collaboration to reduce the airport impact on their local communities and residents, and are proud of their green practices London City Stockholm Bromma 14

15 Upsized Comfort Features include largest windows, largest storage bins and widest seats 15

16 Required Changes for Porter s Plans Porter is requesting an amendment to the Tripartite Agreement to allow for: 1. An exemption of only the CS100 for use at BBTCA. Other louder jet aircraft would not be able to utilize the airport 2. A runway extension into the water at each end of the runway, that does not change the enjoyment of Lake Ontario by Torontonians, including the boating community The Noise Exposure Forecast 25 will continue to restrict overall noise and activity at the airport Approval would be required by City of Toronto, Federal Government, Toronto Port Authority 16

17 The Quietest Commercial Jet in Production New technology has enabled the production of quiet whisper jets that could not have been envisioned when the Tripartite Agreement went into effect 30 years ago CS100 has a comparable sound profile to the Q400 and is 6% quieter than the Tripartite Agreement. Bombardier has guaranteed that the aircraft will be at most 86.5 EPNdB The Dash was permitted under the Tripartite Agreement and operated from BBTCA for over 20 years despite having a higher EPNdB level 97.5 EPNdB (average of take-off, sideline and approach) Decibel Logarithmic Scale Q400 CS Tripartite Agreement (1983) 87.3 Dash Other current seat aircraft* Aircraft in-service in 1983** 6% louder 6% quieter * Average of E190, B737 and A320. ** Average of B727, B707, DC-9 38% louder 115% louder 17

18 Extending the Runway Porter requires an extension of the runway of up to 200 metres into the water at each end Extension includes a 150 metre Runway End Safety Area, an airport safety initiative currently being evaluated by Transport Canada The runway design only requires an immaterial lateral movement of certain marine exclusion zone buoys which does not impact boating access along the western channel 18

19 Expanded BBTCA will remain small by historical standards Porter only represents up to 50% of total movements, including other airline, private, government and local traffic Forecasted 2018 levels will be similar to 2001, and only half of 1967 high 19

20 Growth is Limited at BBTCA BBTCA does have a defined ceiling on aircraft activity which protects against significant expansion of activity. The following existing control mechanisms will not change: Noise Exposure Forecast The Tripartite Agreement mandates the total noise footprint of all aircraft operating at BBTCA to be within a designated noise contour. The contour controls the total noise generated by the airport, limiting the daily activity at BBTCA. The NEF 25 is one of the most restrictive noise limitations of any airport in the world. Runway 08/26 BBTCA has a single main runway. With the regulated time gaps that exist between takeoff and landings, the single runway creates a natural limitation on the number of flights that can be operated each day Gate Limitations Porter built and owns the $55 million terminal used at BBTCA. The terminal has 10 operational gates which allows for some growth from today s level of activity. There is no apron area to expand gates which limits aircraft activity at BBTCA. 20

21 Plans in Place to Support City Infrastructure Several initiatives are underway or being considered to ensure infrastructure supports growth: Completion of pedestrian tunnel Current passenger and vehicle flow peaks and troughs on ferry arrivals every 15 minutes. Smoother flow of passengers into shuttle buses, taxis, cars will open up additional capacity for vehicles Expanded shuttle service. Porter owns and operates the shuttle service using a 3 bus rotation with 15 minute wait times. Porter will be increasing the number of shuttles to reduce wait and increase shuttle usage facilitating higher density Offsite parking Porter in partnership with Standard Parking will be launching discounted offsite parking for BBTCA. A dedicated shuttle service will provide passengers and employees with access to BBTCA and supports our efforts to minimize traffic into Eireann Quay Malting site re-development Opportunity for mixed use development and enhanced access to airport 21

22 Malting Site Update 22

23 Porter s Growth Creates Consumer Choice In 2005 only one national airline carrier servicing business and leisure passengers existed in Canada. By 2016, there will be three. Porter has reduced fares by up to 60% on its current routes and expects similar benefit to consumers on its planned routes Business Regional Longer Haul Leisure 23

24 Porter s Growth Supports Canadian Aviation Support Transport Canada s desire for RESA implementation in Canada through a proactive implementation of RESA at a high profile airport Porter supports the Canadian aerospace industry with an all Canadian fleet which could be up to 32 Q400 and 30 CS100 aircraft. Porter has been actively involved in Q400 sales efforts by hosting meetings with many potential customers Porter was first Canadian operator of Q400 and now all major operators have purchased the aircraft Porter expects to play a similar role on the CSeries program Q400 sales have almost tripled since Porter s launch of service and now stand at

25 Porter Plans will magnify BBTCA as a Major Economic Engine Today, Porter and BBTCA generate 5,700 jobs and over $2 billion of annual economic value. Porter s plans will magnify this economic impact as city staff report on economic benefits of Porter s plans show significant incremental benefit $134 million of incremental spending in Toronto by passengers $83 million of incremental labour income 1,900 new jobs $55 million in additional tax revenue 25

26 Torontonians Strongly Support the Airport Support for Porter s plans and BBTCA are consistent in all polling Ward Level Toronto Survey 19,500 Sample (1) 61% support Porter Airlines growth plans 66% support jets that are comparably quiet to Q400s 63% support runway extension if boating is not impacted Do you support Porter Airlines growth plans? Ipsos Reid Survey (2) 60% support the use of jets at BBTCA if they make no more noise than the Q400s 85% agree that BBTCA is an important part of Toronto s future economic growth 87% agree that BBTCA is a valuable asset for the city Forum Research Poll 51% approve of jets at BBTCA (vs. 35% disapprove) 52% approve of extending runways at BBTCA (vs. 36% disapprove) Support for jets at BBTCA has increased from 37% in September Source: ifusion Reseach conducted in April Source: Forum Research conducted in July Source: Ipsos Reid Annual Public Opinion Survey conducted on behalf of the Toronto Port Authority in August

27 Thank you Merci Billy Bishop Toronto City Airport Toronto, Ontario Canada M5V 1A1 Tel: (416) Fax (416) www.