Presentation to El Centro, CA
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1 Presentation to El Centro, CA September 4, 2012
2 Agenda SeaPort Airlines Snap Shot Review EAS Proposal & DOT Selection Reason for Delay in Service Proposed Alternative Service Plan Response to Misconceptions Questions & Answers 2
3 Snap Shot: SeaPort Airlines, Inc. Founded years as Wings of Alaska prior to acquisition in 2008 by SeaPort Air Group Headquarters in Portland, OR with operational bases at Portland, Memphis, Juneau, and beginning May 1 San Diego 175 employees operate an average of 90 departures each day across 8 states flights and employees increase during summers to serve Alaska tourists Fleet of 16 aircraft 4 more deliveries scheduled through 2013 Focus on increasing interline agreements to expand connecting opportunities for our customers - technology investments made, on-going discussions with virtually all carriers (each have different criteria). 3
4 4
5 A Track of Record of EAS Success Service to eight EAS communities OREGON: Pendleton ARKANSAS: El Dorado, Harrison, Hot Springs KANSAS: Salina TENNESSEE: Jackson GEORGIA: Athens Satisfied communities & customers Partner with each EAS community Customers value our personalized service and frequency of flights Those who choose us come to love us have never lost an EAS contract renewal in the Lower 48 At urging of communities, reselected during 2012 to provide EAS at Salina and Pendleton with four-year contract term (rather than standard two). We take on the challenge of rebuilding traffic in markets that other carriers have decimated 5
6 Active In All Of EAS Our Communities 6
7 Inventory Distributed Globally, Focused on Expanding Interline Partnerships Flights available at all major GDS systems, and online travel agencies. Invested in a new reservation system capable of interline e-ticketing and baggage check, interline boarding passes, and screening of passengers in TSA s secure flight. Building our portfolio of interline partnerships to enhance connectivity at hub airports. Spanish-language website planned for late 2013/early
8 Background on EAS Selection USDOT selected SeaPort to provide 29 weekly to San Diego - annual subsidy of $1.896MM SeaPort and community preferred option of 17 weekly to San Diego and 12 weekly to Burbank - annual subsidy of $2.156MM USDOT states that the selection of SeaPort stands and that we only need to provide 29x weekly to SAN at end of our initial contract, the choice will be reselect SeaPort or select the bid of a competing carrier DOT will approve an alternate service pattern request if: The pattern meets EAS minimum service levels The community and the airline are in agreement Does not cost USDOT more money 8
9 Benefits of San Diego and Burbank San Diego 17 major airlines offer service to 50 nonstop destinations on average of 250 daily departures. Alaska Airlines developing a focus city at San Diego, Burbank Average of 75 daily departures operated by six airlines. 30 minutes to downtown Los Angeles v 40 minutes from LAX if you ve got business in LA, this is your airport! International destinations include Mexico, Canada, United Kingdom, and Japan. Consistently ranks high among US airports for in customer satisfaction Short security lines, curbside pick-up/drop-off, and quick access to car rentals (no shuttle bus transfers) Easy rail access with station at the airport. Low-fare airlines include Southwest, jetblue, Frontier, Virgin America, & Spirit Ranked #1 for lowest fares in Airfare Affordability Report. Low-fare airlines include Southwest and jetblue. 9 9
10 Benefits of San Diego and Burbank SAN DIEGO San Diego offers global connectivity & single-connection flights to nearly all major metropolitan areas. Burbank provides convenient access to downtown Los Angeles, plus easy connections to major markets along the west coast. BURBANK 10 10
11 Proposed Alternative Service Pattern 12x weekly roundtrips to Burbank Two roundtrips each weekday, one on Saturday, and one on Sunday Flights timed to allow for out in the morning, full-day of business, and return the same evening Secondary consideration is timing to connect with Southwest Airlines service to Sacramento 12x weekly roundtrips to San Diego Two roundtrips each weekday, one on Saturday, and one on Sunday Flights timed primarily for connections with emphasis on Alaska Airlines Lower frequencies of alternative service pattern factor longer flight to Burbank (186 miles) relative to San Diego (94 miles) Additional frequencies will be considered if demand is there we provide more than contracted service in two EAS markets Four departure times is still double the current SkyWest schedule 11
12 Proposed Alternative Schedule 12 Weekly RTs to San Diego (SAN) + 12 Weekly RTs to Burbank (BUR) Depart Arrive Frequency Stops Depart Arrive Frequency Stops Imperial/El Centro to Burbank/Los Angeles Burbank/Los Angeles to Imperial/El Centro 5:15am 6:30am ExSun 0 8:00am 9:15am ExSun 0 4:30pm 5:45pm ExSat 0 6:15pm 7:30pm ExSat 0 Imperial/El Centro to San Diego San Diego to Imperial/El Centro 9:30am 10:15am ExSun 0 10:45am 11:30am ExSun 0 2:00pm 2:45pm ExSat 0 3:15pm 4:00pm ExSat 0 12
13 Delayed Start: Unexpected Costs Budgeted $8,000/month for SAN based on $140/sq. ft. year Did not expect (and were not told) that SAN used 80/20 Rule 20% of all airport costs (joint use terminal space, airfield, etc.) divided equally by number of airlines 80% allocated by percentage of enplanements Treats SeaPort the same as United, Southwest, or Japan Airlines Most airports with 80/20 formula have an exemption for small aircraft and/or airlines that generate less than 1% of total enplanements (i.e., PDX or PHX) Adds $17,000/month in unexpected costs Lobbying other airlines to support exemption Working on commuter terminal issues 13
14 Thank You. Questions? We like to socialize. Follow us for news, contests, special offers, and career opportunities. 14
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