2011 AIRPORT UPDATE. March 25, 2011
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1 2011 AIRPORT UPDATE March 25,
2 Airports are important economic engines for the regions they serve; creating jobs, facilitating commerce and providing access to the global marketplace 2
3 AIRPORT HIGHLIGHTS 308,000 sq. ft. passenger terminal with fourteen gates 11,500 short-term, long-term and garage parking spaces Runway 17/35 9,250 feet; Runway 06/24 7,650 feet An average of 130 daily passenger and cargo flight operations Approximately 2.9 million passengers and 175 million pounds of air cargo annually 1,900 people are employed by airport companies The airport has invested more than $500 million improving airport facilities, runways, taxiways, navigational aids, roadways and parking The airport now contributes approximately $1.24 billion each year to the local economy 3
4 CURRENT MHT CAPACITY DL ATL 1 WN BWI 8 CO CLE 3 Las Vegas Phoenix Detroit Chicago Midway O Hare Atlanta Toronto Cleveland Philadelphia Washington National Dulles Charlotte Tampa Orlando Baltimore New York LaGuardia Newark US CLT 1 US DCA 3 DL DTW 5 CO EWR 4 WN FLL 0 UA IAD 2 WN LAS 1 US LGA 4 WN MCO 3 WN MDW 3 UA ORD 2 US PHL 7 WN PHL 4 WN PHX 1 WN TPA 3 AC YYZ 2 TOTAL 57 4
5 ECONOMIC IMPACT STUDY $152.9 million in annual payroll (Hillsborough, Merrimack and Rockingham Counties only) 3,820 airportrelated jobs (Hillsborough, Merrimack and Rockingham Counties only) $1.24 billion in total economic impact (Hillsborough, Merrimack and Rockingham Counties only) $752.8 million in outof-state passenger expenditures* (lodging, food/beverage, retail purchases and entertainment) * Employment and payroll related to out-of-state passenger expenditures were not calculated as part of the study 5
6 MANCHESTER S STRENGTHS LOCATION - Centrally located in the heart of New England. Serves air travelers from ME, VT, NH and MA Boston CONVENIENCE - Great highway access, no congestion and plenty of inexpensive on-airport parking POPULATION - Over five million people live within a one hour s drive of the airport SUPPORT - Strong support from local, state and federal officials, neighbors, the business community and the FAA RELIABILITY - Exceptional winter operations track record 6
7 Best in the Business! 7
8 AIRLINE MARKET SHARE United 8% Continental 7% Delta 9% US Airways 17% Southwest 59% 8
9 A CHANGING INDUSTRY Airlines have cut approximately 20% of system-wide capacity and retired more than 800 active commercial passenger aircraft since 2008 Low cost carriers (LCC) are chasing away legacy airlines from many markets Competition in New England has increased dramatically with JetBlue, Southwest, AirTran, Sun Country and Virgin America all adding service at Logan Perception that Big Dig has made getting to Logan much easier Frequent bus service from southern New Hampshire to Logan Airline long-range planning has been hampered by jet fuel price instability and a prolonged global recession 9
10 MHT SEAT CAPACITY 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 10
11 MHT AVERAGE AIRFARE Q Q Q Q Q Q Q Q Q Q Q1 11
12 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 MHT LOAD FACTOR
13 IMPACT OF DECREASED AIR SERVICE Seat Capacity = Passenger Activity = Airline Revenue Parking and Concession Revenue PFC & CFC Revenue = Operating Budget $58M $48M $52M $45-$46M 13
14 EXPENSE BUDGET REDUCTIONS Transitioned airport-funded bus service to private ground transportation company Staffing vacancies and consolidations Deferred some non-essential capital projects Restricted non-essential employee and contractor overtime Deferred non-essential vehicle, equipment and IT purchases Reduced consultant usage Renegotiated existing contracts, insurance policies and service agreements - law enforcement and ARFF - parking and parking shuttle - airport security - terminal cleaning - snow removal - interior landscaping - auto/equipment insurance - airport operators insurance - cell phones and pagers Reduced sponsorships and advertising Reduced energy consumption - converted to energy efficient lighting in terminal and parking garage - installed motion sensors - turned off lighting on garage roof and in vacant surface parking lots - installed window film on exterior windows to reduce solar gain Modified operation of The Granite Club, an airport-operated business center Eliminated free parking validation for state and federal employees traveling on business Reduced staff development and employee travel Relocated Employee Parking Lot and eliminated employee parking shuttle bus 14
15 2010 MASTER PLAN UPDATE Passenger terminal efficiencies and expansion Improved international capabilities Airport roadway system improvements Environmental initiatives Additional parking garage and/or surface parking Relocation and expansion of rental car operations Air cargo facility expansion Local zoning regulations Intermodal facilities New revenue opportunities Long-range land use planning 15
16 Airport Land Use Plan 16
17 Highlander Property 17
18 Noise Land Available for Sale or Long-term Lease 18
19 RECENT PROJECTS & ONGOING INITIATIVES Residential Sound Insulation Program (1,300 homes; $54 M) Airport Environmental Action Committee Airport District Energy Audit Increase public ground transportation between the airport, northern MA and popular regional destinations Commuter passenger rail between New Hampshire and Massachusetts NHDOT Airport Access Road (State of New Hampshire) Pettingill Road industrial Park (Town of Londonderry) 19
20 NHDOT AIRPORT ACCESS ROAD/ PETTINGILL ROAD PROJECTS Residential Sound Insulation Program Airport Environmental Action Committee Increase public ground transportation between the airport, Boston and other popular regional destinations NHDOT Airport Access Road Londonderry Industrial Park access Improved Federal Inspection Services (FIS) facilities and international air service capabilities Commuter passenger rail between New Hampshire and Massachusetts 20
21 GOOD NEWS! Adding one daily MD-88 (142-seat aircraft) between MHT ATL in April, 2011 Adding four daily regional jets (50/70-seat aircraft) between MHT DTW by April, 2011 Additional 1,600 seats per week; doubling capacity of MHT operation 21
22 THANK YOU 22
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