Regional Airlines America s Connection to the World. Wichita Aero Club July 17, 2012

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1 Regional Airlines America s Connection to the World Wichita Aero Club July 17, 2012

2 Ford Tri Motor at Wichita Airport Safe. Professional. Reliable.

3 The TWA Network Safe. Professional. Reliable.

4 Regional Airlines Then Safe. Professional. Reliable. 1980

5 5 Fun Facts About Our Industry Safe. Professional. Reliable. 1. Nearly 75% of US -- about 500 US cities -- served only by a Regional Airline 2. 50% of all scheduled passenger flights flown by a Regional Airline 3. 1 out of every 4 passengers flown by a Regional Airline 4. In 2011, Regional Airlines carried million passengers - nearly double the # since ,000 Regional Airline professionals

6 US Airports Served Exclusively by Regional Airlines Safe. Professional. Reliable.

7 Regional Airline Industry Growth Revenue Passenger Miles

8 Regional Airline Industry Growth Revenue Passenger Miles

9 Regional Airline Industry Growth Revenue Passenger Miles Passengers

10 Regional Airline Industry Growth Revenue Passenger Miles Passengers

11 Regional Airline Industry Growth Revenue Passenger Miles Passengers Average Seating Capacity

12 Regional Airline Industry Growth Revenue Passenger Miles Passengers Average Seating Capacity

13 Regional Airline Industry Growth Revenue Passenger Miles Passengers Average Seating Capacity Average Passenger Trip Length

14 Regional Airline Industry Growth Revenue Passenger Miles Passengers Average Seating Capacity Average Passenger Trip Length

15 Regional Partnerships Now 2012 Safe. Professional. Reliable. Source: RAA July 2012

16 Who s Your Daddy? Well, Who Owns What Source: 2011 RAA

17 The System we have developed: one ticket to take passengers anywhere in the world

18 The System we have developed: one ticket to take passengers anywhere in the world Santa Fe Santa Fe Dallas American Eagle Flight 2850 ERJ140...connecting Dallas Buenos Aires American Airlines Flight 997 Boeing 777 Dallas Buenos Aires

19 The System we have developed: one ticket to take passengers anywhere in the world Appleton Chicago O Hare United Express ExpressJet Flight 5877 ERJ145...connecting Chicago O Hare Beijing American Airlines Flight 187 Boeing 777 Santa Fe Appleton Chicago Beijing Dallas Santa Fe Dallas American Eagle Flight 2850 ERJ140...connecting Dallas Buenos Aires American Airlines Flight 997 Boeing 777 Buenos Aires

20 The System we have developed: one ticket to take passengers anywhere in the world Appleton Chicago O Hare United Express ExpressJet Flight 5877 ERJ145...connecting Chicago O Hare Beijing American Airlines Flight 187 Boeing 777 Santa Fe Santa Fe Dallas American Eagle Flight 2850 ERJ140...connecting Dallas Buenos Aires American Airlines Flight 997 Boeing 777 Appleton Chicago Dallas Atlanta Montgomery Madrid Prague Montgomery Atlanta Delta Connection Atlantic Southeast Airlines Flight 5506 CRJ900...connecting Atlanta Madrid Delta Airlines Flight 108 Boeing connecting Madrid Prague Czech Airlines Flight 701 Airbus 319 Beijing Buenos Aires

21 ICT Nonstop Directly to 6 of 9 Largest US Hubs Safe. Professional. Reliable. Wichita (ICT)

22 ICT Nonstop Directly to 6 of 9 Largest US Hubs Safe. Professional. Reliable. Minneapolis/ St. Paul (MSP) Denver (DIA) Chcago (ORD) Wichita (ICT) Dallas (DFW) Atlanta (ATL) Houston (IAH)

23 Total Departures Comparable to Similar- Sized Cities AIRPORT RANK (SMSA) DAILY DEPARTURES Colorado Springs, CO (COS) Fresno, CA (FAT) WICHITA, KS (ICT) Baton Rouge, LA (BTR) Sarasota, FL (SRQ) Birmingham, AL (BGM) 50 10

24 Regional/Mainline service Shares Comparable to Wichita AIRPORT SMSA RANK POPULATION SHARE OF Rochester, NY (ROC) 51 1,05M Dayton, OH (DAY) , Charleston, SC (CHS) , Columbus, OH (CMH) M WICHITA, KS (ICT) ,

25 Major/Regional Share of Scheduled Service Revenue Passenger Miles Available Seat Miles Average Seating Capacity Average Passenger Trip Length

26 Major/Regional Share of Scheduled Service Revenue Passenger Miles Available Seat Miles Average Seating Capacity Average Passenger Trip Length

27 Seamless, Transparent Customer Service Customer enjoys single point of contact for: Reservations Ticketing Check-in Baggage check & claim Inflight experience Airline identified entire trip - beginning to end Making reservation Ticketing/itinerary Airplane door Boarding pass Inflight announcements & seatback cards

28 How are we doing? 3 Source: DOT Reports

29 The traveling experience for the passenger Modern aircraft Seamless service with majors Coordinated schedules Baggage check One level of Safety 1980 NO NO NO NO NO 2010 YES YES YES YES YES

30 Safety Successes Voluntary safety programs-raa Members ASAP 100% FOQA 98% ASIAS 93% DOD 99% VDRP 100% IEP 99% LOSA 85% AQP 85%

31

32 NBC News-Pilot Supply Safe. Professional. Reliable. m/id/ /vp/ #

33 A Look Forward Pilots Pilot Supply & Demand Safe. Professional. Reliable. INCREMENTAL DEMAND FROM DUTY AND REST RULE CHANGE Mainline Carriers Pilots % Increase Furlough Returns Demand 52,590 4,207 1,060 3,147 Regional Industry Pilots % Increase Mainline Demand Total Incremental Demand 16,847 1,349 3,147 4,494 Supply Issues Boeing Survey 460,000 new pilots next 20 years 69,000 N. Am Age 65 retirements/education $/ glamour gone 1,500-hour rule kicks in August 2013 Flight/Duty rules Result Service reductions to communities bigger & smaller than Wichita. 9

34 RAA 38 th Annual Convention May 6-9, 2013 Montreal Safe. Professional. Reliable.

Regional Airlines: The RAA perspective

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