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Jobs, Expansion andTransportation (JET)Task ForceKick-Off MeetingApril 11, 2014

Agenda IntroductionsPurpose of JET Task ForceDescription of Working GroupsUpdates on 3 Areas of FocusDiscussion2

Mayor Michael B. Coleman appointed a 14-member task forceto maximize one of our community’s strongest assets, PortColumbus.Jet Task Force Members Dan Rosenthal, Milestone Aviation Group, Task Force ChairmanTed Adams, L BrandsElizabeth Blount, Uniglobe Travel DesignersKacey Brankamp, Create Columbus CommissionJean Carter-Ryan, Columbus-Franklin County Finance AuthorityGeoffrey Chatas, Ohio State UniversityMichael Dalby, Greater Columbus Chamber of CommerceMichael Johnson, East Columbus Civic AssociationStephen Lyons, Columbus PartnershipJolene Molitoris, former director of Ohio Department of TransportationWilliam Murdock, Mid-Ohio Regional Planning CommissionMark Patton, Jobs OhioAnthony Precourt, Columbus CrewJonathan Ramsden, Abercrombie & Fitch3

Jobs, Expansion and Transportation (JET)Task Force Purpose: Develop an actionable plan forincreasing direct flights, expandingeconomic development and examining thefeasibility of making Port Columbus aregional transportation center. Vision: Redefine our airport as an economichub and the center of transportation for theregion.4

Jobs, Expansion and Transportation (JET)Task ForceThree Working Groups: Economic Development Regional Transportation Center Air Service5

Updates on 3Areas of Focus forTask Force6

Columbus Regional Airport AuthorityOur Vision:Connecting Ohio with the WorldOur Mission:To develop & operate ouraviation system assets in amanner that providespassengers, businesses & thecommunity the highest level ofservice, safety, satisfaction andeconomic benefit.7

The Authority’s Strategic Business Plan8

Port Columbus is ARegional EconomicEngine9

Maximizing Regional Economic GrowthEconomic Impact Study UpdateCRAA’sAirportsTotal JobsLCKInland PortTotalImpact38,37415,79854,172Total Payroll 1.3B .5B 1.8BTotal Output 4.6B 1.9B 6.6B CRAA Airports and Inland Port are an importanttransportation resource for Central Ohio Critical economic catalysts Airport impact growth since 2004:– Employment has increased 28%– Annual payrolls has increased 68%– Annual output has increased 69%Source: November 2012 Economic Impact Study Update prepared by CDM Smith10

Port Columbus is the Gateway to the Cityand Positioned for Growth Over 700 million invested for capital improvements since2000– I-670 / Steltzer Road interchange– International Gateway Roadway improvements– Welcome signage and extensive landscaping– New replacement runway– Inline baggage screening system Enhanced Customer Experience– Free WiFi, 2000 free power outlets Expanded concessions featuring local companies: Donatos,Jeni’s Splendid Ice Creams, and Max & Erma’s 80 Million Terminal Modernization Program11

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New Developments NetJets world headquarters completed in2012. New Marriott Fairfield Inn & Suites to openAugust 2014. Flight Safety relocation / expansion acrossfrom NetJets beginning in 2014. Daimler development on north airfieldbeginning in 2014.13

Port Columbus International Airport14

Port Columbus International AirportFlight Safety – Relocation and ExpansionTerminal Loop Road StudyNorth AirfieldNorthDevelopmentAirfield DevelopmentNetJets HeadquartersFairfield Inn & Suites15

Port Columbus Area DevelopmentPartnership Columbus, Gahanna, and Whitehallpartnered to craft economic developmentstrategies for entire area around PortColumbus Recommendations made from the 20072008 Partnership Study can provideguidance for the JET Task Force WorkingGroup to prioritize and help implement.16

JET Economic Development Working GroupPurpose:Leverage and partner with communitystakeholders to grow the economic wealth ofour region by creating joint economicdevelopment strategies to coordinate futureland use planning, infrastructure investment,service delivery, development incentives andmarketing efforts for the entire area aroundPort Columbus.17

Next Steps Discuss how to best use all of economicdevelopment tools to pursue companiesthat supply, service or innovate for thevarious modes of transportation, as wellas, companies that have the need to benear the airport or offer servicesconducive to our efforts. Review the City’s development priorities,CRAA’s Strategic Business Plan, and theJoint Economic Development Strategy.18

Port Columbus as aRegionalTransportationCenter19

Regional Transportation CenterWorking GroupPurpose:Evaluate transportation options forenhancing multimodal infrastructure, rail,bus and more efficient car services andconnectivity to and from Port Columbus toDowntown Columbus and other key jobcenters and destinations (i.e. Easton andOSU).20

Port Columbus as Multi-Modal HubIntercity Passenger Rail – The City helped fund a feasibility studyand business plan on high speed rail service to Chicago and proposes adowntown station and one along with some maintenance services atPort Columbus;Light Rail – We share an interest in light rail. We should explore directservice from the airport to downtown, including the use of the OhioPanhandle line as a foundation for light rail to the eastern part of theColumbus region;COTA, pedestrian and bicycling, and private sector services, liketaxis and car rentals – We should examine how we can use othertransportation modes to connect the airport to other important visitordestination and job centers like Downtown, OSU, Easton, defenselogistics, and health services;Intercity Bus Service – We should explore feasibility of creating aregional hub for private bus carriers, including Greyound and MegaBus, in the airport area.21

Loop Road StudyThe City has committed to fund asupplemental scope of work to an existingAirport Authority funded Loop Road Studywhich is evaluating future on-airport landuses including best locations for multiplesurface transportation options to and fromthe Airport.22

Loop Road Study will:1. Complete an inventory of existing infrastructurein and adjacent to Port Columbus.2. Identify and document potential corridors for railaccess to Port Columbus and identify how railcould interface with a multimodal transportationcenter.3. Identify opportunities for increased connectivityand service enhancements and establishmultimodal goals and objectives.4. Submit recommendations for future capitalinvestments and prioritization of investments toenhance multimodal infrastructure.23

Port Columbus International Airport24

SecuringAir Service25

Air Service Working GroupPurpose:Identify and prioritize top air service needsof the community; expand awareness ofand support for air service developmentefforts; and develop tools and strategies toattract targeted airlines to meet theidentified air service needs.26

Understanding, Improving andExpanding Direct Air ServiceGood Air Service Supports Economic Development –and Economic Development Drives Air Service Levels Columbus is a strong and growing market for airservice. Community has good air service, however, we wantmore non-stop flights. A partnership between the City, businesscommunity, CRAA and other stakeholders is criticalfor success.27

Columbus Market is Strong Growing population baseA diverse economyHome to 15 Fortune 1000 headquartersNearly 600 international firmsMore than 50 college and universitycampuses with nearly 150,000 enrolledstudents.28

Columbus Air Service 1Q2014142 peak day departures 34 airports29

Top Three Ohio Airports2013 Airline Market Share83% of Ohio’s 16.6m SeatsColumbusCleveland35%Southwest11%American ada1%Frontier1%AirCanada1%American USAirways28%United14%FrontierAirlines0%Southwest AirTran34%Delta23%United10%American Delta72%Source: CRAA Analysis of Diio Mi Schedule data, 12 months ending December 201330

Airport Departure lumbusMAR 2005166AUG 2001160APR 2000141MAR 2005675643444220148SEP 2001210141Historical PeakCurrent31

. a Changing IndustryPresents Challenges2007Air Canada20132014Air CanadaAir CanadaAmerican AirlinesAmerican AirlinesDelta Air LinesDelta Air LinesAmerica WestAmerican AirlinesContinental AirlinesDelta Air LinesJetBlueMidwestFrontier AirlinesNorthwest AirlinesSkybusSouthwest AirlinesSouthwest AirlinesSouthwest AirlinesUnited AirlinesUnited AirlinesUnited AirlinesUS AirwaysUS AirwaysUSA3000AirTran Airways32

-10.0%-20.0%SeatsTampaSt. LouisPittsburghNashvilleMilwaukeeLouisvilleKansas teChange in Annual Seats & Operations2009 vs. 201320.0%10.0%0.0%-30.0%-40.0%-50.0%Flights33

Scheduled Seat CapacityColumbus vs. Peer Markets 1Q2014CityCapacity (Seats)1Q 2014% ee1,029,505-0.6%Kansas 517,050-5.2%St. 6,762-8.1%Akron/Canton243,892-13.4%Source: CRAA Analysis of Diio Mi Schedule data, 1Q201434

Air Service Strategy – Our Goals Retain existing service Secure new service to target markets– Not currently served– Or underserved Provide competition, increase airline seats Target Markets:– Domestic: San Francisco, Seattle, San Diego– International: London, Paris, Tokyo Incentives– Waived airport fees (landing and terminal rentals)– Marketing assistance Partnerships– City of Columbus, Franklin County, Jobs Ohio,Columbus 2020, Experience Columbus, etc.35

2014 Tactical StrategyDomestic incumbent & prospective carriersOther North American Carriers Continued development of SFObusiness plan and dialogue with UAplanningWill remain in expansion mode with newaircraft coming online Aggressively pursue equipmentupgrades across several regionaljet marketsBusiness model and scope have improved atBoston and New York since previous CMHserviceCarrier focused on SFO/LAX expansion;network growth likely on hold until 2015Service from LCK Pursue expansion in existingmarkets & continue new marketdiscussions Position CMH for internationalservice as Allegiant’s businessmodel evolvesCarrier hub focused on Seattle, LAX & newSan Diego expansionNew Encore/Q400 product will presentinteresting opportunity – but likely for 2015and beyond36

2014 Tactical StrategyDomestic incumbent & prospective carriers Pursue other keymarket opportunitiesex: Houston Hobby Position CMH forinternational serviceas Southwest’sintegration andbusiness modelevolution nearscompletion Work with newAmerican planninggroup to optimizepost-merger servicepattern Continue to promotetactical point-to-pointopportunities,including Seattle andPhiladelphia Monitor performanceof new LAX non-stop Monitor performanceof LAX non-stop Continue promotingjoint AA/BA businesscase to London Continue to monitorany change in carrierstrategy at Salt LakeCity37

InternationalLargest U.S. Cities without European ServiceEurope, Middle East, Africa, and India Passengers Daily Each WayCentral Ohio411St. Louis399Cleveland391Indianapolis342 AustinFor Comparison: Currently has service to Paris323Columbus306Kansas City300New Orleans293Nashville291San 450Source: IATA BSP and ARC passenger ticketing date via Diio Mi Emi for 12 Months Ending October 201238

Access via International Gateway’sPassengers Daily Each Way Port 3AllianceEUROPEASIAAirlinesSource: IATA BSP and ARC passenger ticketing date via Diio Mi Emi for 12 Months Ending October 201239

2014 Tactical StrategyInternational prospective carriersOther EuropeanCarriers#1 European Target Re-engage with the newfaces on the BritishAirways team; drivesupport for CMH at thenew American as well Create compellingopportunity plans forboth near and long term- Emphasize CMH’scompetitiveness toother marketsService to Paris orAmsterdamService to FrankfurtAlternative European targets Understand carrierstrategies for NorthAmerica expansion Create long and nearterm strategic planOther InternationalCarriersContinue to maintaindialogue Columbus’ regionalcorporate environmentoffers a strong marketprofile to Japan Maintain dialogue withLatin America carriersregarding consistentMexico leisure service- Potential for longerterm expansion toother markets40