Prepared by ACI-LAC / ICF International News Bulletin Page 1 Issue 2 A ISSUE 2 A ugust 2015 UGUST 2015

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1 Prepared by ACI-LAC / ICF International News Bulletin Page 1 ISSUE 2 Issue AUGUST 2 August

2 In this issue: A Revolutionary Development in International Airport Access...1 Liberalization of US Mexico Aviation is Long Overdue...4 Self-Connections: Capturing the Smart Traveller...8 Trip Propensity Can Be a Powerful Addition to Airport Forecasts A Revolutionary Development in International Airport Access By Barbara Mejia, Principal, ICF International Crossing the US-Mexico Border Directly Into and Out of Tijuana International Airport, Without Long Immigration Lines. The border between Tijuana and the United States is the world s busiest crossing and it can take several hours to get through immigration going into the United States. This is frustrating for passengers who use Tijuana International Airport (TIJ), but are going to the United States, especially since the Tijuana airport is only a few meters from the border. There are nearly 12 million people of Mexican heritage living in California, many of whom travel to Mexico regularly, primarily from the greater Los Angeles area. Currently, almost 60% of the passengers at TIJ are traveling to or from the United States. Southern California airports (principally LAX) have many flights to Mexico but travelers often choose TIJ due to lower fares on the Mexican carriers at TIJ, the fact that TIJ offers service to places in Mexico that are not served from LAX, and the comfort of the Spanish language and of being at home. Tijuana is an industrial Mexican city that is home to nearly 2 million people, and has an economy that is largely based on the manufacture and assembly in the electronics, automotive and aerospace industries. The companies based in Tijuana are primarily from United States, though tourism remains a portion of the economy, especially in nearby Ensenada. ACI-LAC / ICF International News Bulletin Page 1

3 Tijuana International Airport served 4.3 million passengers in the 12 months ending April The airport is under the management of Grupo Aeroportuario del Pacífico (GAP), a private Mexican airport group, that maintains and operates 12 airports in Northwestern and Central Mexico. Tijuana Airport Proximity to the U.S. border United States Tijuana Airport branded as CBX) The Mexican Civil Aviation Authority has authorized a 180 million pesos investment for airport integration with the CBX. The investment includes changes and expansion for customs, immigration and the international arrivals area, as well as the bridge and the build up to the airport border. The cross-border facility would reduce the time for passengers travelling to and from Southern California via Tijuana airport by at least 2-3 hours. The cross-border facility will be a landside lobby for the airport on the US side of the border, only for the use of passengers traveling to and from the Tijuana airport. The cross-border facility will contain customs and immigration, with a reasonable fee to use the time-saving facility. Access to the bridge will be granted only for Tijuana airport arrival passengers or passengers departing within the next 24 hours. Tijuana Airport Proximity to Los Angeles The accompanying exhibits show the location of the CBX, the Tijuana Airport and the US-Mexico border, with a representative perspective of the CBX Terminal Building and parking lot. 204 km Location of Tijuana International Airport and the Current U.S. Mexico Border Crossings United States Source: ICF International Analysis; google maps The Tijuana airport is located on the U.S. border, just 25 miles from San Diego and 126 miles from Los Angeles. It is served by two nearby border crossings to the U.S. San Ysidro and Otay Mesa, which are located 5 km. and 3.5 km. respectively from Tijuana. These existing San Diego/Tijuana border crossings are extremely congested northbound, making it difficult for passengers to plan their travel to and from the Tijuana airport. Source: ICF International Analysis; google maps Tijuana Airport Representative Perspective of the CBX Infrastructure and Tijuana International Airport On August 2010, a presidential permit was issued authorizing Otay - Tijuana Venture L.L.C. to construct, operate and maintain an international pedestrian bridge, called San Diego Tijuana Airport Cross-Border Facility (now Source: Grupo Aeroportuario del Pacifico ACI-LAC / ICF International News Bulletin Page 2

4 It is believed that far more passengers from the US will use Tijuana International Airport if they can cross the border more rapidly. This represents a new business opportunity for the Mexican airlines, as they can increase service at Tijuana. According to a projection by ICF International s aviation experts, The Tijuana airport is expected to see an 11 percent growth in passengers in the CBX s first year of operation, and by 2030 the airport expects to serve almost 7 million passengers. The new cross-border facility, exclusive for Tijuana airport users, is scheduled to open by the end of Barbara Mejia, MBA Principal, ICF International Barbara Mejia has over 20 years of experience in the aviation industry, focusing primarily on strategic business planning and economic analysis for airlines and airports. Ms. Mejia works with clients worldwide to support their strategic decision making, including market and passenger analysis, traffic forecasts, business plan assessments and presentation and report preparation for clients to deliver to Transportation Ministers, Companies CEOs and Upper Level Management. Prior to joining ICF, Ms. Mejia worked ten years for AeroMexico Airlines in Network planning. Ms. Mejia has an MBA from the Thunderbird School of Global Management and a BSc in Actuarial Science from the Universidad Nacional Autonoma de Mexico. ACI-LAC / ICF International News Bulletin Page 3

5 Liberalization of US Mexico Aviation is Long Overdue By Eric Toler, Associate, ICF International and Carlos Ozores, Principal, ICF International It s been 21 years since the signing of the North American Free Trade Agreement (NAFTA), but air service between the US and Mexico remains heavily regulated. That s about to change. Two major events will shake up the US Mexico air travel market in 2016 an expanded Air Services Agreement ( Open Skies ) between the US and Mexico, and anti-trust immunity for SkyTeam members Aeromexico and Delta, whose applications are currently under review. These events will increase competition and have far-reaching implications for airlines from both the US and Mexico. US Mexico Market Dynamics The US Mexico transborder air traffic market has achieved healthy growth in recent years, recovering from the global financial crisis, thanks to improved economic conditions and robust capacity expansion. Between 2010 and, passengers between the US and Mexico grew 5 percent per year on average. The US Mexico market has historically been dominated by US carriers, which have consistently Southwest 6% Volaris 8% Share of US Mexico Seat Capacity by Airline, June 2015 Delta 11% Other 17% Aeromexico 14% Source: OAG Schedules held more than two thirds of capacity over the last decade. American Airlines (including US American Airlines 24% United 20% Airways) is the leader in the transborder market, with a 24% share of seats as of June United Airlines and Aeromexico are the second and third largest carriers in the market, with a 20% and 14% share, respectively. Turbulent market conditions have led to airline bankruptcies on both sides of the border, though the effect has been uneven. In the US, bankruptcies have been followed by restructuring and mergers, without dramatic reductions in service; in Mexico, the most significant bankruptcy in recent years (Mexicana) resulted in a cessation of operations, and a noticeable decline in Mexico s share of transborder capacity (12 percentage point drop in 2011 following Mexicana s collapse). Although US carriers dominate the US Mexico market with a 72% seat share, Mexican carriers have been expanding into transborder markets in recent years. In June 2015, Mexican carriers registered year-over-year seat growth of 49% in the US Mexico market, compared to 4% growth US Mexico Capacity Share, US vs. Mexican Carriers, June 2005 June % 80% 60% 40% 20% 0% Source: OAG Schedules Mexican Carriers US Carriers ACI-LAC / ICF International News Bulletin Page 4

6 by US carriers. Mexico s four largest carriers (Aeromexico, Volaris, Interjet, and VivaAerobus) have all contributed to this expansion. In the domestic Mexican market, heightened competition has put pressure on yields, which have fallen from 27 US cents per mile to 20 US cents per mile between 2006 and. In search of stronger revenue growth, Mexican carriers are looking to expand their international capacity, particularly in the transborder market, to offset weak domestic routes. Meanwhile, yields on transborder routes have performed well in recent years, increasing from 14 USD cents per mile in 2006 to 18 USD cents per mile in. USD, Cents USD, Cents Historical Yields, CY 2006 CY US Mexico Transborder Market Domestic Mexico Market Sources: US Mexico Yields - US DOT O&D Survey; Domestic Mexico Yields IATA PaxIS The increasing penetration of low cost carrier (LCC) service has been one of the most significant developments in the transborder market in recent years. LCCs have increased their share of the US Mexico market from just 4 percent in 2009 to 24 percent in Most growth has been driven by the entry of Mexican LCCs Interjet, Volaris, and VivaAerobus, which currently account for 55% of total US Mexico LCC capacity. Four US LCCs operate in the transborder market Southwest, Frontier, Spirit, and jetblue with recent growth led by jetblue and Spirit. In general, US LCCs have focused on serving leisure destinations such as Cancun and Puerto Vallarta, while Mexican LCCs serve mostly VFR 1 traffic from destinations such as Guadalajara and Monterrey. In 2016, LCC competition will increase, as Southwest pursues expansion into Mexico from its new hub at Houston Hobby. Outlook for the US Mexico Market Competition in transborder markets is expected to remain strong in the coming years as Mexican carriers grow international service and as Open Skies takes effect. The revised Air Services Agreement will enter into force January , and will eliminate current restriction that restrict service to only two airlines from each country in city pairs between the two countries; three airlines from each country are allowed on certain city pairs, including routes to major destinations like Cancun, Guadalajara, Monterrey, Puerto Vallarta and Los Cabos but not to Mexico City, Mexico s most valuable and sought-after market. According to the US Department of Transportation, the new agreement will allow for unlimited market access for US and Mexican air carriers, improved intermodal rights, Low Cost Carrier Share of the US Mexico Market, June 2005 June % 80% 60% 40% 20% 0% Source: OAG Schedules 1 Visiting Friends and Relatives Full Service Low Cost ACI-LAC / ICF International News Bulletin Page 5

7 pricing flexibility, and other important commercial rights. Moreover, the agreement will allow new entrants on all city pairs between the US and Mexico, whereas previously a maximum of two or three carriers from each country was allowed. As a result of Open Skies, the transborder market will see significant expansion in the coming years, though growth will likely be concentrated in the larger business, ethnic and leisure destinations where the maximum carriers allowed has Share of US-Mexico Market by Number of Airlines Serving, June Carriers 0% 4 Carriers 2% 3 Carriers 10% 2 Carriers 22% 1 Carrier 66% Source: OAG Schedules already been reached. Currently, 66% of US Mexico city pairs are served by only one carrier, reflecting small market sizes in many VFR routes. Only 10 city pairs are served by three US carriers, and only three city pairs are served by three Mexican carriers. Routes where US carriers have reached their limit include Guadalajara, Puerto Vallarta, Cancun, and San Jose del Cabo. To take advantage of the expanded bilateral, large aircraft orders will support the Mexican carriers international expansion All major Mexican carriers will take delivery of aircraft in the coming years. Major Mexican Carriers Current Fleet and Orders, As of March 2015 Active Aircraft Deliveries Carrier Fleet Aeromexico Interjet VivaAerobus Volaris Source: ACAS Another change on the horizon for the US Mexico air traffic market includes the pending approval of a joint venture between Aeromexico and Delta, which have been codeshare partners since The two SkyTeam alliance members are seeking anti-trust immunity from the US and Mexican authorities to establish a metal-neutral joint venture on US Mexico routes. Combined, they would represent the largest carrier in the transborder market. According to the carriers filings, the proposed joint venture would focus on developing Delta s hubs in New York and Los Angeles. Aeromexico s hubs in Mexico City, Monterrey, and Guadalajara will provide Delta access to secondary domestic Mexican cities served from these hubs. Delta and Aeromexico forecast that up to 14 new routes and up to 39 additional daily departures will be created over the next five years as a result of the joint venture. The carriers also plan to up-gauge aircraft on existing US Mexico routes. The two airlines have highly complementary networks, with overlap on only two city pairs (JFK-MEX and LAX-GDL). Delta and Aeromexico Transborder Markets, June 2015 Source: OAG Schedules ACI-LAC / ICF International News Bulletin Page 6

8 AICM is considered saturated from 6am to 9pm. This means that new entrants have to settle for less desirable slots, and that until a new airport is built, congestion at AICM will only get worse. It also means that the intended economic benefits of Open Skies will not be fully realized for many years to come. Hourly Distribution of Flights at Mexico City International Airport, Fridays, June 2015 Even with Open Skies, new service at Mexico City Mexico s most in-demand market faces another major obstacle: capacity constrained infrastructure at Mexico City International Airport (AICM). Delta, Aeromexico, and other carriers will face significant challenges expanding service at Mexico City due to its saturation. The airport has declared capacity is 61 movements per hour, with up to 40 arrivals (separation of 4 nautical miles). 2 According to published airline schedules, the airport already reaches and even exceeds the maximum capacity during most of the day. Movements per Hour Hour of Day Source: OAG Schedules Departures Arrivals In order to reap the full benefits of the new Air Services agreement with the US, the Mexican government must ensure the timely completion of the new Mexico City airport, the first phase of which is planned to open in Eric Toler Associate, ICF International Eric Toler has experience in aviation-related market analysis and research, forecasting (both airport-wide and route level), and other supporting data analysis. Mr. Toler has conducted air traffic forecasts and air service analysis for numerous studies and assists with the preparation of project deliverables. Mr. Toler has an M.A. in Latin American Studies/International Trade and Economic Development from Georgetown University and a B.A. in Latin American Studies/Business Administration from the University of North Carolina Chapel Hill. Carlos Ozores Principal, ICF International Carlos Ozores has more than a decade of aviation industry experience and has advised dozens of airlines and airports on the development of their commercial and network strategies. He also has considerable expertise in revenue management, pricing, sales, and distribution, and he is an expert user of NetWorks, a scheduling and route analysis software. His focus is on network and schedule development and optimization, airline commercial strategy, and air service marketing. Prior to joining ICF, Mr. Ozores was a pricing analyst for Air France where he was responsible for off-tariff U.S. market pricing, evaluating competitive trends, and recommending pricing strategies to increase revenue and market share on North Atlantic routes. During the course of his work, he gained expertise in marketing information data tapes (MIDT) analysis, distribution, and the challenges of commercial policy harmonization within the scope of a global alliance. Mr. Ozores also was a revenue management analyst at American Airlines. 2 Mexican SCT (Secretaria de Comunicaciones y Transportes) ACI-LAC / ICF International News Bulletin Page 7

9 Self-Connections: Capturing the Smart Traveller By Kata Cserep, Principal, ICF International and Rob Walker, Principal, ICF Intnerational Self-connection is often preferable, and sometimes the only option. The explosive growth of low cost carriers (LCCs) and retreating traditional network airlines from short-haul services has led to a transformation of the connecting opportunities for passengers, especially at airports where LCCs mix with traditional long-haul hub airlines. Due to their business models, which focus on simplicity, LCCs do not typically offer passengers a traditional connecting service, which has led passengers to find and make their own connections. There are many reasons why self-connections make sense for passengers: Routing: Many markets are simply not served by traditional carriers. Their focus on higher yielding long haul and their hub nature presents opportunities for new markets to be served through self-connection. Price (Fare): LCCs have a lower cost base so are able to serve the markets at a lower price to the consumer. Also, in some cases flying on two separate tickets can help to avoid significant aviation taxes Availability: LCCs have grown to 30% of European short haul capacity and present significant feed potential with the volumes they currently carry Schedule: On many routings with limited service, an LCC option may provide a superior schedule, reducing total journey time Definition The term self-connection refers to two (or more) tickets being purchased by a passenger who makes their own connection between them i.e. not on a traditional interline or codeshare ticket. Self-Connection is Set to Grow The aviation industry continues to evolve and numerous indicators support the continued growth of the selfconnection market. LCCs driving market growth: LCC volumes are forecast to double in the next years LCCs Evolving: LCCs growing new and incremental revenue streams, connecting options have not yet been fully pursued Legacy carriers retrenching from short-haul: Airlines such as Air France, Alitalia are cutting short haul capacity providing opportunity for other airlines/ models Alliances evolving: The major alliances are known to be looking at supporting LCC association or lite memberships; this will further drive demand for selfconnections Smarter travellers, enabled by technology: Passengers are becoming wiser to the options available and the savings that can be made through self-connections, thanks to booking engines that are now able to create self-connecting itineraries ACI-LAC / ICF International News Bulletin Page 8

10 Some airports have woken up to the potential of selfconnections, and they offer enhanced transfer products for those on two separate tickets, either independently or via their airline partners. Potential benefits for airports from targeting selfconnections include: Incremental passengers What s In It for Airports? Traditionally, airports have not catered specifically to self-connecting passengers but simply treated them as a subset of local passengers. Many airports have no idea how many passengers make their own, self-connections in their terminals. ICF analysis suggests that airports such at Gatwick in the UK, could have as many as a million selfconnecting passengers a year. Increased non-aeronautical revenues through F&B, duty free and other commercial spend Ancillary revenues through advertising, insurance, brand partnerships What is the Business Case? The benefits do not come free, however, and it is important that any airport considering a targeted self-connection service carefully weigh the costs and benefits. Geography, existing network and regional competition play a big role in determining the potential scale of the operation. The operation will also involve some increases in capital expenditure and operating expenditure to cater to the increased numbers, as well as investments in marketing and airline engagement. Kata Cserep Principal, ICF International Kata Cserep, co-leader of ICF International s Airport Business Advisory Services, is an economist with over 10 years of aviation experience, focused on commercial airports and airlines. Kata s expertise is wide ranging, including airline diagnostics and business planning, detailed market studies including socio-economics and tourism, due diligence of airline and airport transactions and the impacts of network changes on airlines and airports. She is an experienced project manager and is a qualified Prince2 Practitioner. Prior to joining ICF, Kata worked as an analyst with various economic think tanks, researching and commenting on regulatory, strategic and operational issues in a wide range of United Kingdom and international sectors, including commercial aviation. Kata holds a MA, Economics, University of Cambridge, Trinity College, United Kingdom, 2007 and a BA, Economics, University of Cambridge Trinity College, United Kingdom, 2002 Rob Walker Principal, ICF International Rob Walker, an integral member of ICF International s Airport Business Advisory team, has a decade of direct aviation experience having worked for British Airways and Virgin Atlantic across several departments before joining ICF. He has been involved in high level strategic planning for airports and airlines and has often led work streams around strategic growth analysis and network deployment scenarios. Rob has a strong understanding of leisure and corporate sales, and delivering sustainable growth in this industry. His recent work has involved forecasting demand for United Kingdom and overseas airports whilst leading revenue modelling projects for several alliances and airlines analysing route performance, growth aspirations, and potential synergies. Rob holds BSc, Physics, University of Bristol, United Kingdom, ACI-LAC / ICF International News Bulletin Page 9

11 Trip Propensity Can Be a Powerful Addition to Airport Forecasts By Elizabeth Jaedicke, Principal, ICF International Projecting future passenger traffic in Latin America is extremely challenging because there are often multiple factors at work, some of them economic and some of them not. Traffic forecast consultants use a wide variety of drivers as inputs to traffic forecasting models. One of the most heavily relied upon is Gross Domestic Product (or GDP). Indeed, some forecasters use GDP as the sole driver. However, GDP alone does not always reflect all of the factors that influence air traffic levels and it should not be exclusively relied upon when estimating future traffic levels. Trip propensity (as measured by air O&D passengers per capita) can be a useful metric for identifying when other drivers besides GDP play a prominent role. This article provides a comparison of current trip propensity values around the world and provides two country examples: the United States and Colombia. propensity by country based on the latest calendar year of data (). The trend lines shown on the graphs indicate that typically countries with a higher GDP per capita (measured on the x-axis) also tend to have higher trip propensity (measured on the y-axis). For example, in Exhibit 1 the United States has a GDP per capita of $54,600 per person and a domestic trip elasticity of 1.43 while Ecuador has a GDP per capita of $6,300 per person and a domestic elasticity of However, domestic elasticity is also driven by the size of the country. Austria, which has a similar GDP per capita ($51,300) as the United States, but a land mass less than 1% of the U.S., also has a lower domestic trip propensity at Exhibit 1: Domestic Trip Propensity by Country As per capita income increases, people typically increase the amount of disposable income that they spend on luxury goods including travel. Across the world over the last 20-years, we have seen increased air trip propensity as people switch from traditionally cheaper modes (such as bus, car, and rail) to air travel. In addition, trips that would not have been taken at other income or fare levels are now being taken. Exhibits 1 and 2 show a snapshot of trip Domestic Passengers per capita Belize Bahamas United States 1.00 Colombia Trinidad and Tobago Bolivia 0.10 Ecuador Brazil Peru Mexico Venezuela Argentina Panama Costa Rica Honduras Austria 0.01 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 GDP per capita ( USD) Source: IMF World Economic Outlook (April 2015); IATA AirportIS ACI-LAC / ICF International News Bulletin Page 10

12 Similarly, international trip propensity is also correlated with GDP per capita, as illustrated by the trend line shown in Exhibit 2. As a country moves along the x-axis (or increases GDP per capita), international trip propensity increases. As with domestic trip propensity, international trip propensity is highly affected by geography. For example, sovereign island nations (see Dominica, Barbados, Antigua & Barbuda and the Bahamas in Exhibit 2) have higher than expected international trip propensities given their GDP per capita levels. International Passengers per capita Honduras 0.10 Bolivia Dominica Belize Guyana Exhibit 2: International Trip Propensity by Country Barbados Costa Rica El Salvador Mexico Ecuador Nicaragua Peru Venezuela Brazil Paraguay Guatemala Panama Antigua and Barbuda Uruguay Colombia Bahamas Trinidad and Tobago United States Trip propensity can also be a useful measure 0.01 of how mature a national aviation market is. For this measure, we need to examine how one country moves along the graph over time. Exhibit 3 shows GDP and trip per capita data for the United States since Over time, the blue points move up and to the right, illustrating rising GDP per capita and passengers per capita as the domestic market matures. However, this trend is interrupted as the terrorist attacks on 9/11 (shown by the red points) $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 GDP per capita ( USD) Source: IMF World Economic Outlook (April 2015); IATA AirportIS caused trip propensity to plummet. A second important observation from Exhibit 3 is that both sets of points begin to cluster within a vertical band towards the end of the time period, indicating the maturation of the domestic and international passenger markets. Exhibit 3: Historical Trip Propensity United States Passengers per capita Domestic International / $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 $45,000 $50,000 $55, GDP per capita (2009 USD) 9/11 Source: IMF World Economic Outlook (April 2015); U.S. POINT O&D Survey via Database Products, and IATA AirportIS ACI-LAC / ICF International News Bulletin Page 11

13 For comparison, Exhibit 4 shows similar data for Colombia, which is categorized by the IMF as an emerging economic market. The slopes of the lines implied by the domestic and international points illustrate the expected trajectory increasing GDP per capita and increasing trip propensity. The jump in domestic trip propensity from 0.19 in 2005 to 0.31 in 2010, and then to 0.45 in, reflects the traffic boom that Colombia has experienced over the last decade, spurred by the entrance of low cost carriers and fare deregulation. A similar trend is evident in international propensity. Exogenous factors are also evident in the exhibit the drop in domestic trip propensity from 0.23 in 1995 to 0.20 in 2000 is indicative of both a lower GDP per capita, as well as the political uncertainty and safety environment that characterized Colombia during this time. Traffic forecasting in Latin America can be a challenging exercise, but we believe that by examining a country s trip propensity, forecasters can incorporate into forecasts assumptions regarding non-economic factors that can stimulate or depress traffic levels Exhibit 4: Historical Trip Propensity Colombia Domestic International Passengers per capita $10,000 $2,010,000 $4,010,000 $6,010,000 $8,010,000 $10,010,000 $12,010,000 GDP per capita (2005 COP) Source: IMF World Economic Outlook (April 2015); Aerocivil SERIE ANUAL PASAJEROS Y CARGA - ORIGEN-DESTINO Elizabeth Jaedicke Principal, ICF International Elizabeth Jaedicke is a principal with ICF s aviation practice with more than 11 years experience working on projects for airlines, airports and government transportation agencies. Elizabeth has extensive expertise in data analysis, statistical methods, and project management. She specializes in developing forecast models to predict passenger, cargo, and flight long-term growth that consist of consensus forecasts based on airport share models, econometrics, and trip propensity forecast techniques. Elizabeth s forecasts are frequently used to determine future infrastructure needs and as inputs to financial models in connection with airport privatization transactions. Elizabeth holds a MPA, Public Administration/ International Development, John F. Kennedy School of Government, Harvard University, 2003 and a BA (summa cum laude), History (minor in Mathematics), Texas A&M University, ACI-LAC / ICF International News Bulletin Page 12

14 aci-lac.aero icfi.com 2015 ICF International, Inc. Any views or opinions expressed in this article are solely those of the author(s) and do not necessarily represent those of ICF International. This article is provided for informational purposes only and the contents are subject to change without notice. No contractual obligations are formed directly or indirectly by this article. ICF MAKES NO WARRANTIES, EXPRESS, IMPLIED, OR STATUTORY, AS TO THE INFORMATION IN THIS ARTICLE. No part of this article may be reproduced or transmitted in any form, or by any means (electronic, mechanical, or otherwise), for any purpose without prior written permission. ICF and ICF INTERNATIONAL are registered trademarks of ICF International and/or its affiliates. Other names may be trademarks of their respective owners. About ICF International ICF International (NASDAQ:ICFI) provides professional services and technology solutions that deliver beneficial impact in areas critical to the world s future. ICF is fluent in the language of change, whether driven by markets, technology, or policy. Since 1969, we have combined a passion for our work with deep industry expertise to tackle our clients most important challenges. We partner with clients around the globe advising, executing, innovating to help them define and achieve success. Our more than 4,500 employees serve government and commercial clients from more than 70 offices worldwide. ICF s website is ACI-LAC / ICF International News Bulletin Page 13