MOVING TOWARD THE FUTURE WITH DAILY REGIONAL AIR SERVICE Youngstown-Warren Regional Airport DAN DICKTEN, A.A.E. DIRECTOR OF AVIATION WESTERN RESERVE PORT AUTHORITY 1 YOUR YNG AIRPORT IMPORTANT TO THE NATIONAL AIRPORT INFRASTRUCTURE YNG – CURRENT ROLE NON-HUB COMMERCIAL SERVICE JOINT-USE MILITARY AIRPORT HOME OF 910TH Air Lift Wing – USAF RESERVE 9,003 FT. LONG RUNWAY, AMONG LONGEST IN OHIO FRONT DOOR TO MAHONING VALLEY HOW YNG FITS THE FUTURE? DAILY AIR SERVICE 2 YOUR YNG AIRPORT NOT JUST AN AIRPORT – PART OF THE FUTURE & PART OF THE SOLUTION STRAINED NATIONAL AIRPORT INFRASTRUCTURE (Delays/Late Departures & Arrivals) YNG IS PART OF THE SOLUTION YNG HAS WHAT IS NEEDED COST-EFFECTIVE EFFICIENT CONVENIENT 3 YOUR YNG AIRPORT KEY TO LOCAL INFRASTRUCTURE FACILITY FOR BUSINESS & GENERAL AVIATION BOTH ARE KEY TO REGIONAL ECONOMIC GROWTH IMPORTANT ALTERNATIVE TO BUSY AIRPORTS PIT CLE CAK 4 YOUR YNG AIRPORT ONCE A THRIVING COMMERCIAL SERVICE AIRPORT 1999 YNG AIR SERVICE SUMMARY 2001 SERVICE REDUCED TO 2 DAILY UNITED FLIGHTS TO CHICAGO 4 DAILY NORTHWEST FLIGHTS TO DETROIT 5 DAILY US AIR FLIGHTS TO PITTSBURGH MANY YNG FLIGHTS STOPPED AT CAK THEN ON TO DESTINATION – NOT VERY POPULAR 2 DAILY NORTHWEST FLIGHTS TO DETROIT 2003 NORTHWEST STOPPED ALL SERVICE 5 YOUR YNG AIRPORT 2002 / 2003 - 26 US AIRPORTS LOST SERVICE INCLUDING YNG ALL WERE ESSENTIAL AIR SERVICE FUNDED 2002 – 70 MILE RULE AIRPORTS CLOSER THAN 70 MILES TO A LARGE HUB LOST EAS FUNDS PIT < 70 MILES –BUILT ON WRONG SIDE OF PITTSBURGH AIRLINES PERCEIVE YNG AS ONE OF “THOSE AIRPORTS THAT COULDN’T SUPPORT SERVICE” LOW FARE SOUTHWEST/AIR TRAN - BUILT UP CAK AND NEGLECTED YNG CHANGING THE LOSER PERCEPTION WITH ALLEGIANT’S GREAT SUCCESS 6 YOUR YNG AIRPORT SUCCESSFUL ALLEGIANT AIR ORLANDO, FL – 96% (Load Factors) ST. PETERSBURG, FL – 97% MYRTLE BEACH, SC – 90% YNG AIRPORT PASSENGER NUMBERS AT RECORD HIGH WITH 60% INCREASE 2010 42% INCREASE PROJECTED 2011 Proposed New Service Las Vegas Myrtle Beach POTENTIAL ALLEGIANT CITIES FT. LAUDERDALE, FL PUNTA GORDA/FT. MYERS, FL LAS VEGAS, NV Orlando St. Petersburg Punta Gorda Proposed New Service Proposed New Service Ft. Lauderdale 7 YOUR YNG AIRPORT OTHER SUCCESSFUL AVIATION SERVICE CASINO FLIGHTS FROM YNG YSU AND OTHER SPORT TEAM CHARTERS ATLANTIC CITY – GOLD AVIATION TUNICA, MS – ALLEGIANT AIR SUN COUNTRY SOUTHWEST AIRLINES MIAMI AIR CORPORATE FLIGHT DEPARTMENTS GENERAL AVIATION (GA) 8 YOUR YNG AIRPORT PLANNING FOR THE FUTURE COMPATIBLE, NOT COMPETITIVE WITH CONTINUE ROLE AS A BUSINESS/GA FACILITY SUPPORT ALLEGIANT AIR TO: PIT CLE CAK ORLANDO ST. PETERSBURG MYRTLE BEACH ATTRACT NEW DAILY NON-STOP REGIONAL SERVICE 9 YOUR YNG AIRPORT WHY YNG IS ATTRACTIVE CLOSE TO BUSINESSES IN MAHONING VALLEY CLOSE TO STRONG GROWTH AREAS YOUNGSTOWN WARREN NILES BOARDMAN SHARON VERY IMPORTANT FOR THE FUTURE 10 YOUR YNG AIRPORT YOUNGSTOWN-WARREN-SHARON CATCHMENT AREA AND MSA Primary Catchment Area: Total Population 725,280 YNG/CLE Equal Drive Line YNG/ERI Equal Drive Line Total Number of Households 309,642 Western Side of Interstate 79 Average Household Income $36,538 Regional MSA: Total Population 588,222 Total Number of Households YNG/CAK Equal Drive Line 30 Mile Radius 250,866 Average Household Income $36,646 Catchment Area Catchment Area & MSA Overlap MSA Excluded from Catchment Area 1.7 M – 1 Hour Drive 7.6 M – 2 Hour Drive 11 YOUR YNG AIRPORT WHAT ABOUT PIT, CLE, CAK? WORLD CLASS FACILITIES, HOWEVER, THEY’RE NOT FOR EVERYONE ONLY PART OF THE FLYING PUBLIC WILL USE YNG FOR DAILY SCHEDULED SERVICE SUCH SERVICE WOULD COMPLIMENT, NOT COMPETE WITH PIT, CLE AND CAK THE RESULT – BETTER AIR SERVICE FOR THE NE OHIO REGION 12 YOUR YNG AIRPORT LOCAL SURVEY RESULTS 2010 SURVEY – LOCALS PREFER TO USE YNG FOR BUSINESS TRAVEL TOP 12 BUSINESS DESTINATIONS: CHICAGO NEW YORK ATLANTA DALLAS WASHINGTON D.C. PHILADELPHIA HOUSTON BALTIMORE Detroit Chicago (O’Hare) YNG DETROIT NEWARK CHARLOTTE TORONTO New York (JFK) Newark Philadelphia Washington (Dulles) 13 YOUR YNG AIRPORT LOCAL SURVEY RESULTS, CONTINUED TOP 10 LEISURE DESTINATIONS IDENTIFIED: ORLANDO √ MYRTLE BEACH √ LAS VEGAS ST. PETERSBURG (TAMPA BAY) √ FT. LAUDERDALE FT. MYERS – SW FLORIDA ATLANTIC CITY √ TUNICA (MS) √ NEW YORK CITY PHOENIX 14 YOUR YNG AIRPORT WE SERVE THIS REGION, TOO OUR GATEWAYS TO THE WORLD PIT CLE YNG CAN SERVE THE TRAVELING PUBLIC TOO AS THE REGION’S NEEDS CHANGE, SO MUST YNG’S ROLE 15 YOUR YNG AIRPORT AIR SERVICE PROSPECTS LOW-FARE / LOW FREQUENCY SERVICE TO LEISURE DESTINATIONS (ALLEGIANT AIR) DAILY NON-STOP “NETWORK” SERVICE TO KEY BUSINESS DESTINATIONS AND MAJOR CARRIER CONNECTING AIRPORTS 16 YOUR YNG AIRPORT POTENTIAL AIR SERVICE MARKETS LEISURE: ORLANDO √ ST. PETERSBURG √ MYRTLE BEACH √ FT. LAUDERDALE - LAS VEGAS – SW FLORIDA BUSINESS MARKETS WHERE TIME IS IMPORTANT: CHICAGO - WASHINGTON D.C. – DETROIT – PHILADELPHIA NEW YORK/NEWARK YNG SERVICE GEARED TO CAPTURE A PORTION OF O&D BUSINESS TRAVELERS 17 YOUR YNG AIRPORT ADVANTAGES NO HASSLES CONVENIENT (CLOSE TO HOME) REQUIRES LESS ROAD TIME TO AND FROM LOW COST PARKING $6.00/ A DAY vs. $12-$18 CLE/PIT KEEPS $$$ IN THE COMMUNITY 18 YOUR YNG AIRPORT THE ECONOMIC REALITIES A NEED FOR YNG CAPACITY IS HERE A MARKET FOR DAILY REGIONAL SERVICE AT YNG IS HERE TRAFFIC/MARKET NEED EXISTS TODAY ATTRACTING APPROPRIATE AIRLINES IS POSSIBLE AND IN PROCESS 19 YOUR YNG AIRPORT WHAT AIRLINES LOOK FOR A HIGH LEVEL OF COMMITMENT FROM LOCAL BUSINESSES AND COMMUNITY PARTNERSHIP WITH REGIONAL CHAMBER AND LOCAL TOURISM & CVB STRONG COMMUNITY SUPPORT – YNGAIR PARTNERS 3RD PARTY FULL SERVICE PASSENGER & AIRCRAFT HANDLING – WINNER AVIATION YNG HAS ALL OF THESE ! 20 YOUR YNG AIRPORT WHAT AIRLINES LOOK FOR, CONTINUED STRONG BUSINESS / LEISURE TRAVEL MIX FOR REGIONAL NETWORK SERVICE – STRONG LEVELS OF BUSINESS TRAFFIC ACCESS TO LARGE POPULATION CENTERS EASY ACCESS TO AIRPORT LOW AIRPORT COSTS LOW COMPETITIVE PROFILE ACCESS TO STRONG MARKET YNG HAS THIS, TOO! 21 YOUR YNG AIRPORT CURRENT AND NEAR FUTURE AIRLINE OPPORTUNITIES POSSIBILITIES FOR YNG INCLUDE: DELTA CONNECTION: DETROIT (DTW); ATLANTA (ATL) US AIRWAYS EXPRESS: PHILADELPHIA (PHL); CHARLOTTE (CLT) UNITED EXPRESS: WASHINGTON - DULLES (IAD) CHICAGO O’HARE (ORD) AMERICAN EAGLE: CHICAGO O’HARE (ORD) NEW YORK LAGUARDIA (LGA) ALLEGIANT AIR: FT. LAUDERDALE (FLL); LAS VEGAS (LAS) PUNTA GORDA (PGD) SW FLA; NEW YORK; PHOENIX; HILTON HEAD; HONOLULU; YNG MANAGEMENT IN DISCUSSIONS WITH AIRLINES FOR ALL THE ABOVE. 22 YOUR YNG AIRPORT REGIONAL CHAMBER SUPPORT REGIONAL CHAMBER HAS RECEIVED AND SENT LETTERS OF SUPPORT FROM 60+ MEMBERS TO AIRLINES DELTA – DETROIT/ATLANTA US AIR – PHILADELPHIA UNITED – CHICAGO O’HARE/WASHINGTON-DULLES AMERICAN EAGLE – CHICAGO O’HARE/ NEW YORK LETTERS SENT TO AIRLINES MARCH 15, 2011 PROMPTED POSITIVE DISCUSSIONS WITH AMERICAN EAGLE, DELTA AND US AIRWAYS 23 YOUR YNG AIRPORT SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT DOT GRANT – PROVIDES “GUARANTEES” TO ATTRACT COMMUTER AIRLINES TO CONNECTING AIRPORTS FUNDING SHARE - $575,000 DOT FUNDING SHARE - $287,500 LOCAL $862,520 TOTAL IN-KIND SERVICES - $467,220 BUSINESS COMMUNITY GUARANTEES AIRLINES PROFITABILITY THROUGH “START-UP” PHASE OF NEW SERVICE 24 YOUR YNG AIRPORT MINIMUM REVENUE GUARANTEE PLAN MINIMUM REVENUE GUARANTEE MANHATTAN (KS) REGIONAL AIRPORT (MHN) SUCCESS MHN $2 M (2 YEARS) AMERICAN EAGLE (AE) REGIONAL JET SERVICE TO DALLAS-FT. WORTH 420 MILE ROUTE/EMBRIER 145 (50 SEAT) RJ COST $4,334 PER FLIGHT (BREAK EVEN + 3% PROFIT MARGIN) ANYTHING UNDER $4,334 TICKET SALES – AE DRAWS DOWN FROM FUND TO GUARANTEE PROFITABILITY ANYTHING OVER $4,334 THRESHOLD RECEIVED A CREDIT FINISHED WITH $1,000,000 CREDIT /VS DRAW DOWN 25 YOUR YNG AIRPORT CARRIER SERVICE USING AN MRG Detroit- (DTW) YNG DL – DTW Delta Connection US- PHL US Airways Express Chicago O’Hare – (ORD) New York – (LGA) Philadelphia – (PHL) UE – ORD/IAD United Express AE – ORD/LGA American Eagle Washington – Dulles (IAD) 26 YOUR YNG AIRPORT NEW DAILY NETWORK SERVICE - PARTNERS TO PROMOTE IT & WHO TO TARGET • Organizing Local Marketing Efforts • Advocating Support of YNG Air Service to the Local Community • Increasing community awareness of air service •Billboards •TV Commercials •Radio Ads •Face book/Twitter •Website promotion • Organizing Local Community Activities • Advocating Support of YNG Network Air Service • Promoting Tourism and use of local hotels • Creating positive economic impact • Attracting Conventions and Tradeshows • Advocating Support of YNG Air Service by Local Business • Attracting new employers that will generate additional business traffic 27 YOUR YNG AIRPORT PROPOSED DELTA CONNECTION NONSTOP SERVICE TO DETROIT (DTW) 3 DAILY FLIGHTS M-F/2 DAILY FLIGHTS SATURDAY & SUNDAY 50 SEAT REGIONAL JET AIRCRAFT 145 DOMESTIC CONNECTING DESTINATIONS FROM DTW 25 INTERNATIONAL CONNECTING DESTINATIONS YNG-DTW SERVICE CONNECTS THE COMMUNITY TO THE ENTIRE WORLD VIA DTW 28 YOUR YNG AIRPORT DTW – CONNECTING YNG TO THE WORLD To: To: To: ANC ANC ANC ANC To: To: To: ANC YVR YVR YVR YVR YVR YVR SEA SEA SEA SEA SEA SEA YQB YQB YQB YQB YQB YQB PDX PDX PDX PDX PDX PDX YUL YUL YUL YUL YUL YOW YOW YOW MQT MQT MQT CIU CIU YOW YOW YOW BTV CIU MQT MQT MQT CIU CIU BTV BTV BTV BTV PWM PWM PWM PLN PWM PWM PWM ESC ESC ESC PLN PLN PLN PLN ESC ESC ESC APN APN APN APN APN MHT MHT MHT TVC TVC TVC MHT MHT TVC TVC TVC MSP MSP CWA CWA CWA MSP MSP MSP CWA CWA CWA BOS BOS GRB GRB YYZ YYZ YYZ BOS GRB BOS SYR SYR ALB GRB GRB YYZ YYZ YYZ ROC SYR ALB SYR SYR ALB ALB ALB BOS ATW ATW ATW ROC ATW ATW ROC ROC ROC BUF BUF PVD PVD BDL BDL BUF PVD L LSE LSE SE MBS MBS MBS BDL RST RST RST ITH ITH BUF ITH PVD PVD LSE BDL BDL YXU LSE LSE MBS MBS MBS YXU RST RST RST ITH ITH ITH YXU BGM BGM YXU YXU BUF BGM BGM BGM SWF FSD FSD FSD ELM ELM ELM FNT FNT FNT FSD FSD FSD ELM ELM ELM FNT FNT SWF SWF MSN MSN GRR GRR LAN LAN SWF SWF MSN GRR LAN MKE MKE MKE MSN MSN GRR LAN LAN MKE MKE MKE GRR HPN HPN HPN AVP AVP HPN HPN AVP AVP AVP LGA LGA AZO AZO LGA AZO JFK JFK LGA LGA AZO AZO JFK JFK JFK ABE ABE ABE ORD ORD ABE ORD ORD ORD SBN SBN SCE SCE MDW MDW SBN SCE MDW EWR EWR CID CID SBN SBN SCE SCE ABE MDW MDW EWR CID EWR EWR CID CID MDT MDT PHL PHL FWA FWA MLI MLI T TOL OL MDT DSM DSM PHL FWA MLI TOL TOL MDT MDT DSM PHL PHL FWA FWA MLI MLI TOL DSM DSM OMA OMA OMA OMA OMA PIA PIA PIA PIA PIA CMH CMH CMH BMI BMI BMI BWI BWI BWI CMH CMH CMH BMI BMI BMI BWI BWI BWI IAD IAD IAD DAY DAY DAY DCA DCA CMI CMI IAD IAD IADDCA CMI DAY DAY DAY DCA DCA DCA CMI CMI IND IND IND IND IND CVG CVG CVG CVG CVG CHO CHO CHO CHO CHO CHO MCI MCI MCI CRW CRW CRW CRW CRW RIC RIC RIC RIC RIC STL STL STL STL STL SDF SDF LEX LEX SDF ORF ORF ORF LEX SDF LEX LEX ORF ORF ORF ROA ROA EVV EVV ROA EVV ROA ROA EVV EVV SDF ICT ICT ICT ICT ICT ICT SGF SGF TRI TRI SGF TRI GSO SGF SGF TRI TRI GSO GSO GSO GSO RDU RDU RDU RDU RDU TYS TYS BNA BNA TYS TYSAVL BNA BNA BNA TYS TUL TUL AVL CLT TUL AVL CLT TUL TUL XNA AVL AVL CLT CLT CLT XNA XNA XNA XNA XNA GSP GSP GSP GSP GSP GSP OKC OKC OKC OKC OKC MEM MEM MEM HSV HSV MEM MEM MEM HSV HSV HSV MYR CAE CAE CAE MYR MYR MYR LIT LIT CAE CAE CAE MYR LIT LIT LIT ATL ATL ATL ATL CHS CHS BHM BHM BHM ATL CHS CHS CHS SAV SAV SAV SAV SAV SAV DFW DFW DFW DFW DFW DFW JAN JAN JAN JAN JAN DLH DLH DLH DLH DLH DLH To: To: To: HNL HNL HNL HNL To: To: To: HNL DTW DTW YNG YNG SLC SLC SLC SLC SLC SLC SMF SMF SMF SMF SMF SFO SFO SFO SFO SFO DEN DEN DEN DEN DEN DEN LAS LAS LAS LAS LAS LAS LAX LAX LAX LAX LAX LAX SNA SNA SNA SNA SNA SAN SAN SAN YHZ YHZ YHZ YHZ YHZ YHZ BGR BGR BGR BGR BGR BGR PHX PHX PHX PHX PHX PHX JAX JAX JAX JAX JAX JAX ICN ICN AUS AUS AUS AUS AUS AUS SAT SAT SAT SAT SAT NRT NGO NGONRT IAH IAH IAH IAH IAH IAH PVG PVG MSY MSY MSY MSY MSY MSY MCO MCO MCO MCO MCO MCO TPA TPA TPA TPA TPA PBI PBI PBI PBI PBI RSW RSW RSW RSW RSW RSW FLL FLL FLL FLL FLL FLL MIA MIA MIA MIA MIA MIA MTY MTY MTY MTY MTY MTY To: To: To: MEX MEX MEX MEX To: To: To: MEX To: To: To: CUN CUN CUN CUN To: To: To: CUN HKG HKG 29 YOUR YNG AIRPORT PROPOSED YNG-DTW FLIGHT SCHEDULE Youngstown – Detroit Departs: Arrives: Frequency: 6:50am 7:50am X7 12:00pm 1:00pm Daily 5:00pm 6:00pm X6 Detroit – Youngstown Departs: Arrives: Frequency: 10:30am 11:30am X7 3:30pm 4:30pm Daily 9:30pm 10:30pm X6 30 YOUR YNG AIRPORT ECONOMIC IMPACT OF SERVICE ASSUMING YNG RECAPTURES 30% OF PIT LEAKAGE $1.3 MILLION ECONOMIC BENEFIT TO THE MAHONING VALLEY ASSUMING YNG RECAPTURES 30% OF PIT, CLE AND CAK LEAKAGE $2.5 MILLION ECONOMIC BENFIT TO THE MAHONING VALLEY *LEAKAGE = RESIDENTS OF MAHONING VALLEY USING OTHER AIRPORTS – CLE, CAK, PIT 31 YOUR YNG AIRPORT YNG FUTURE FOCUS SOUTHWEST ISN’T COMING, BUT . . . . . DAILY REGIONAL SERVICE IS POSSIBLE FOCUS ON HIGH-YIELD DAILY CONNECTING BUSINESS TRAVEL CONTINUE TO FOCUS ON SUCCESSFUL ALLEGIANT AIR LEISURE SERVICE 32 YOUR YNG AIRPORT MARKETING CAMPAIGN YNG HAS AN ANNUAL REQUIREMENT TO PROVIDE $25,000 IN ADVERTISING FUNDING $25,000 FOR IN-KIND ADVERISING ACCEPTING CONTRIBUTIONS/IN-KIND SERVICES ADVERTISING MARKETING WEBSITES, ETC. 33 YOUR YNG AIRPORT PLANNED IMPROVEMENTS TERMINAL UPGRADES (NEW HOLD ROOM RESTROOMS ) ADDITIONAL RENTAL CAR SERVICE DEVELOPMENT TERMINAL INTERIOR ADVERTISING (TERM. ADV., INC) NEW TSA SCREENING TECHNOLOGY; CONVEYOR UPGRADE BAGGAGE RETURN SYSTEM EXPANSION PARKING LOT SECURITY / REVENUE CONTROL SYSTEM UPGRADE / SECOND EXIT WITH AUTO PAY / PAVING REPAIRS SOUTH COMMUTER TERMINAL - ADDITION OF RJ JET BRIDGE PHYSICAL PLANT - TERMINAL HVAC / BOILER UPGRADES NEW TERMINAL CURB FRONT; SIDE WALKS; FAÇADE REPAIRS HIGH TECH AIRCRAFT IDENTIFICATION / TRACKING SYSTEM SHEDDING THE “BLACK HOLE” REPUTATION 34 35 YOUR YNG AIRPORT SUMMARY READY TO BECOME A REGIONAL ECONOMIC GENERATOR BUSINESS & GA CONTINUE TO PLAY A STRONG ROLE LEISURE AIR SERVICE IS PROVEN – 5 YEARS THE RETURN OF DAILY SCHEDULED SERVICE IS POSSIBLE AND IN PROCESS REVENUE GUARANTEES WILL BE NEEDED YNG IS PART OF THE NATIONAL AND REGIONAL AIRPORT CAPACITY SOLUTION 36 FLY YNG - YOUR YNG AIRPORT! YOUNGSTOWN – WARREN REGIONAL AIRPORT 1453 YOUNGSTOWN-KINGSVILLE RD., NE VIENNA, OH 44473 (330) 856-1537 WWW.YNGAIRPORT.COM DDICKTEN@YNGAIRPORT.COM WESTERN RESERVE PORT AUTHORITY 37