CVG Overview Connect with CVG March 29, 2017
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1 CVG Overview Connect with CVG March 29, 2017
2 Launching Point Strategic Plan
3 CVG Launching Point Strategies for 2016 and Beyond Vision: Make travel through CVG and unforgettably positive experience Mission: To become the airport of choice to work for, fly from and do business with Brand Promise: To deliver worldclass professionalism with Midwestern Charm
4 CVG Launching Point Goals TAKE FLIGHT Expand and diversify passenger carriers Grow air cargo and related businesses Increase corporate flight activity GROW BUSINESS Maintain competitive cost structure and strong financial position Diversify airline and non-airline net revenue streams PROPEL COMMUNITY Act as a socially responsible neighbor Foster relationships with local governments, business and community leaders to strengthen and grow our business Build a culture of collaboration and teamwork ELEVATE SERVICE Ensure safety and security of employees, passengers and stakeholders Manage assets strategically to ensure clean, effective and efficient operations Deliver outstanding customer service GO BEYOND Activate brand promise and enhance reputation among key audiences Provide a seamless passenger experience through innovative solutions
5 The of Tomorrow TAKE FLIGHT 9,000,000 PASSENGERS BY 2021 GROW BUSINESS 350 ACRES OF AIRPORT LAND LEASED FOR DEVELOPMENT BY 2021 PROPEL COMMUNITY $5 BILLION ANNUAL ECONOMIC IMPACT BY 2021 ELEVATE SERVICE FUNCTIONALLY OBSOLETE TERMINAL FACILITIES DEMOLISHED AND STATE-OF-THE-ART CONSOLIDATED RENTAL CAR FACILITY CONSTRUCTED BY 2021 GO BEYOND AIRPORT SERVICE QUALITY (ASQ) RANKING SUPERIOR TO PEER AIRPORTS BY 2021
6 Airport Overview: Infrastructure and Governance
7 CVG Campus APPROXIMATELY 420 EMPLOYEES Police (52), Fire (52) Airfield Operations & Maintenance Commercial & Business Management Customer Service & Housekeeping Finance; Administration External Affairs & Air Service Development 12,000 BADGED EMPLOYEES 60% Kentucky 30% Ohio 10% Indiana SELF SUSTAINING NO LOCAL TAX DOLLARS OVERSIGHT BY 13 MEMBER BOARD $4.4B ANNUAL ECONOMIC IMPACT
8 Grow Air Service: Air Service Update
9 Air Service Overview 166 Peak Day Departures 55 Non-Stop Destinations 6.8M Annual Passengers 89% Local Origination 9 Passenger Airlines 18 Operating Carriers Non-Stop Destinations Seasonal Destinations Source: Diio Mi schedules loaded as of January 10, 2017
10 Monthly Origin Passenger Trend YOY Percent Change March 2015 February th consecutive months of YOY originating passenger growth
11 Grow Cargo: Cargo Update
12 DHL Hub at CVG Home to one of three DHL global super hubs; other hubs are located in Leipzig, Germany and Hong Kong DHL employs a local workforce of over 2,600 employees at CVG Processes 2.6 million cargo pieces a month and sorts 92% of all US delivery shipments as well as all Canadian, Mexican, and Latin American shipments at CVG Connects over 100 service centers and international gateways in DHL s International network in the U.S. DHL recently completed a ramp expansion to accommodate an additional 16 aircraft ($108 million) Total investment by DHL at CVG since 2009 exceeds $280 Million
13 DHL Ramp Expansion and Improvements
14 Multi Tenant Cargo Building West Service Area Projected Completion Fall 2017
15 Future Home of Amazon Prime Air Global Hub C = near term lease area A & B = longer term lease area Totals approximately 900 acres Amazon announced plans to invest $1.4 billion U.S. in a new centralized air hub At full build out, the Amazon operation will occupy approximately 900 acres at CVG Anticipate a local workforce of over 2,700 employees Current aircraft fleet of 40 Boeing 767 Freighters (including orders) Operations at CVG are slated to begin as early as May 2017
16 Facilitate Economic Growth: Land Development Overview
17 Initial Land Development Sites 11 Sites - Approximately 600 acres Next Slide
18 Commercial Development Bosch Development 350,000 SF (2 buildings on 32 acres) 180,000 sf new building 4 under construction Future Retail Development 90,000 SF on 7 acres Future retail or warehousing On 20 acres Vantrust Development 511,000 SF warehouse on 41 acres
19 Vantrust - 511,000 SF speculative warehouse on 41 acres Construction began September 2016
20 Robert Bosch (formerly ZF Steering) 350,000 SF (2 buildings) on 32 acres Completed December 2011 New Building (4) 180,000SF Under Construction
21 Future Retail Development - 90,000 SF on 7 acres
22 Future retail or warehousing on 20 acres
23 Deliver Operational Excellence: Facilities & Construction Update
24 Demolition of Obsolete Facilities
25 Terminal Modernization & Improvement Project Baggage Claim Baggage Claim Area GTC Baggage Claim Exterior Curb Parking Garage Vestibules Purpose Enhance the airport experience for passengers and CVG partners, Improve, modernize and beautify identified facilities, Incorporate energy reduction opportunities, and Celebrate CVG s region by incorporating design elements hometown air travelers will proudly recognize, while giving out-of-town travelers an immediate and positive impression of what the area has to offer. Tunnel Connector to Parking Garage Concourse B Carpet Only Schedule Final Design 2Q 2017 Construction 3Q 2017 Project Complete 4Q 2017
26 Consolidated Rental Car Project (CONRAC) Overall Site & Roadway Plan View Project Highlights: Direct Terminal Access Terminal Curb Traffic Reduced Wayfinding Simplified New Texas Turnaround Vehicle Inspection Area Ground Transportation Center Increased Premium Garage Parking within T2 Garage Fire Department Access Limited Access under Security Checkpoint New Cell Phone Lot o CSB Customer Service Building o GTC Ground Transportation Center o QTA Quick Turnaround Facility o RR Ready Return Garage 10
27 Design Option 3: Preferred Option Schedule Final Design 2017 Construction Facility Operational 2021
28 Elevate Service: Managing Assets Strategically
29 2017 Master Plan Study Update Purpose Road map for efficiently meeting airport demand through the foreseeable future while preserving flexibility necessary to respond to changing aviation industry conditions. Last update completed in Goals and Objectives Framework for providing near-, medium-, and long-range plans (2040 plan horizon) Graphic depictions of existing airport features, future airport development, and anticipated land uses Realistic schedule and financial plan for implementation of proposed development Comply with FAA requirements 10
30 Deliver World-Class Professionalism: SkyTrax Awards
31 2017 Skytrax World Airport Award Winner # 1 for Best World Airport Serving 5 10 Million Psgrs. # 1 for Best Regional Airport in North America* # 26 for World s Top 100 Airports (Top U.S. Airport) # 2 for Best Airport (Overall) in North America # 2 for World s Best Regional Airport # 5 for Best Airport Staff in North America *Best Regional Airport in North America 2011, 2012, 2013, 2014,and 2015 The 2017 Awards are based on million airport survey questionnaires that were completed by 105 different nationalities of air travelers during the survey period. The survey operated from July 2016 to February 2017, covering 550 airports worldwide and evaluating traveler experiences from check-in, arrivals, transfers, shopping, security and immigration through to departure at the gate.
32 Thank You and Questions Your first stop: CVGairport.com Candace McGraw, CEO / CVG Airport
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