Agenda. 1. Reduce Airline Cost. 2. Develop Airport Related Businesses. 3. Provide Customer Friendly Facilities and Services. 4. Expand Air Service
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1 O N T
2 Agenda 1. Reduce Airline Cost 2. Develop Airport Related Businesses 3. Provide Customer Friendly Facilities and Services 4. Expand Air Service
3 Agenda 1. Reduce Airline Cost
4 Reduce Airline Cost
5 Reduce Airline Cost
6 Agenda 2. Develop Airport Related Businesses
7 Building a Plan
8 Building a Plan
9 Building a Plan
10 Building a Plan
11 Building a Plan
12 Agenda 3. Provide Customer Friendly Facilities and Services
13 Provide Customer Friendly Facilities and Services
14 Agenda 4. Expand Air Service
15 Ontario is the Most Convenient Airport For a Large Part of the Los Angeles Region
16 Over Five Million People Within Two Hours of ONT Live Closer to ONT than Any Other Airport Note: Shaded Area Represents 2 Hour Drive Around ONT Closest to BUR Closest to ONT Closest to LAX Closest to LGB Closest to SNA Population Households Total Households Earning Over $50K Closest to ONT 5.2 Million 1.6 Million 864,000 2 Within Hour 2 hour Drive Drive 18.9 Million 6.1 Million 3.5 Million Closest to SAN Source: U.S. Census Bureau, 2014.
17 The Total Population and Household Income Within 75 Minutes of ONT Significantly Exceeds that of LAX ONT 75-Minute Drive from ONT 60-Minute Drive from LAX LAX ONT LAX ONT % 75 mins. 60 mins. of LAX Population (mil.) % Household Income (bil. $) $388.1 $ % = 500 persons Median Household Income $64,197 $65,676 98% Source: U.S. Bureau of the Census, 2010 survey; Target Pro DriveTime mapping; LAX penalized 15 minutes for airport congestion
18 There are a Significant Number of ONT Passengers who Live Between ONT and LAX LAX ONT = 100 persons Source: YE Q2 2015, U.S DOT O&D Survey and adjusted ARC.
19 Ontario International Airport has been Grossly Underserved
20 Ontario Has Nonstop Service to Only 15 Markets From 7 Airlines SEA PDX SMF OAK SFO SJC LAS SLC DEN MDW ONT Seasonal PHX Note: Southwest starts nonstop service to Portland in August, 2016; Aeromexico serves Mexico City seasonally. Source: Innovata schedules for the week of May 9, GDL MEX DFW IAH Southwest American Alaska United Delta Volaris Airline Aeromexico Total # of Destinations 8* * Weekly Flights * Includes multiple carriers to DEN, GDL and PHX. Weekly Seats 30,926 9,123 4,656 4,588 1, ,333 Seat Share 59% 17% 9% 9% 3% 2% 1%
21 Among Medium Hubs, Ontario s Decline in Seat-Departures was Only Surpassed by Cincinnati Which Lost a Hub 75% 66% Change in Domestic Seat-Departures 2015 Compared to Average 50% 32% 25% 18% 10% 7% 7% 2% 1% 0% -25% -50% -3% -3% -7% -11% -11% -12% -15% -15% -16% -16% -16% -18% -20% -21% -21% -26% -29% -30% -31% -36% -39% -41% -48% -75% -74% -100% Source: Innovata Schedule.
22 -2% -2% -3% -4% -4% -4% -5% -6% -8% -10% -10% -10% -11% -12% As a Result of Capacity Reductions, Among Medium Hubs Ontario s Decline in Domestic O&D Passengers was the Greatest by Far 125% 100% 98% Change in Domestic O&D Passengers 2015 Compared to Average 75% 50% 50% 32% 31% 25% 20% 19% 14% 7% 4% 4% 3% 2% 1% 0% -25% -17% -23% -27% -27% -50% -40% Source: U.S. Domestic O&D Survey.
23 Ontario s MSA Population Alone Would Rank it as the 15 th Largest Metro Area in the U.S Rank Metro Area Population Source: U.S. Census Bureau, New York-Newark, NY-NJ-CT-PA CSA 23,632,722 2 Los Angeles-Long Beach, CA CSA 18,550,288 3 Chicago-Naperville, IL-IN-WI CSA 9,928,044 4 Washington-Baltimore-Arlington, DC-MD-VA-WV-PA CSA 9,546,404 5 San Jose-San Francisco-Oakland, CA CSA 8,607,423 6 Boston-Worcester-Providence, MA-RI-NH-CT CSA 8,099,575 7 Dallas-Fort Worth, TX-OK CSA 7,352,286 8 Philadelphia-Reading-Camden, PA-NJ-DE-MD CSA 7,164,790 9 Houston-The Woodlands, TX CSA 6,686, Miami-Fort Lauderdale-Port St. Lucie, FL CSA 6,561, Atlanta--Athens-Clarke County--Sandy Springs, GA CSA 6,254, Detroit-Warren-Ann Arbor, MI CSA 5,315, Seattle-Tacoma, WA CSA 4,526, Phoenix-Mesa-Scottsdale, AZ Metro Area 4,489, Ontario-Riverside-San Bernardino, CA Metro Area 4,441, Minneapolis-St. Paul, MN-WI CSA 3,835, Cleveland-Akron-Canton, OH CSA 3,497, Denver-Aurora, CO CSA 3,345, San Diego-Carlsbad, CA Metro Area 3,263, Portland-Vancouver-Salem, OR-WA CSA 3,058, Orlando-Deltona-Daytona Beach, FL CSA 3,045, Tampa-St. Petersburg-Clearwater, FL Metro Area 2,915, St. Louis-St. Charles-Farmington, MO-IL CSA 2,910, Pittsburgh-New Castle-Weirton, PA-OH-WV CSA 2,657, Charlotte-Concord, NC-SC CSA 2,537, Sacramento-Roseville, CA CSA 2,513, Salt Lake City-Provo-Orem, UT CSA 2,424, Kansas City-Overland Park-Kansas City, MO-KS CSA 2,409, Columbus-Marion-Zanesville, OH CSA 2,398, Indianapolis-Carmel-Muncie, IN CSA 2,354,902
24 Ontario has by Far the Largest Population per Domestic Flight Among the 20 Largest Metro Areas Population Per Domestic Flight Source: Census Bureau, U.S. DOT T-100 Report, YE December MSA/CSA
25 Ontario has by Far the Largest Population per Domestic Seat Among the 20 Largest Metro Areas Population Per Domestic Seat Source: Census Bureau, U.S. DOT T-100 Report, YE December MSA/CSA
26 Nearly 2 Million Originating Passengers from The Area Closest to ONT Use Other Airports 2,500,000 Airport Choice of Originating Passengers from Area Closest to ONT 2,000,000 1,500,000 1,000, ,000 1,222,178 1,938,203 SNA SAN BUR LGB LAX 0 Source: Adjusted ARC ticketing data. Using ONT Not Using ONT
27 ONT has Significant Growth Potential in the Region While the Other Airports Do Not
28 Ontario has None of the Constraints that Most of the Other Los Angeles Area Airports Face LAX Terminal renovation and consolidation will be occurring over the next several years With terminal and gate constraints, carriers are facing growing CPE s nearing $25 by / Some experts expect LAX s CPE to become the highest in the country by 2023 SNA Through Settlement Agreement 2/ amendments, passengers limited to 10.8 million through 2020, expandable to 11.8 through 2025 and up to 12.5 through 2030 no facility improvements with the latest amendments Capacity allocated annually through Access Plan (Average Daily Departures - ADDs) Limitations on hours of operations Runway limitations impact aircraft performance (virtually one runway to operate from) LGB Noise caps limit the number of larger commercial aircraft flights to 50 (recently revised upward from 41) No FIS facility BUR Pressure to make voluntary noise curfew mandatory Runway length restricts operations Stalled plans to replace the current terminal keeping the current 14 gate maximum at airport 1/ LAWA Board of Airport Commissioners Los Angeles International Airport Fiscal Year 2014 LAX Plan of Finance 2/ Settlement Agreement is between County of Orange, the City of Newport Beach and two community organizations
29 From the February 4, 2016 LAWA Industry Forum Today our (LAX) curbsides, our roadways (and) surrounding neighborhoods suffer from congestion, uncertainty, poor way-finding, and (provide a) poor experience." Deborah Flint Our goal is to fix the traffic gridlock coming in and out of the airport and to connect to sustainable public transportation. BOAC President Sean Burton I imagine that at some point everybody in this crowd has gone through LAX and bemoaned its condition. LA City Councilman Mike Bonin, in whose 11th District LAX sits. They joined Mayor Garcetti in promising to fix LAX by 2023 after spending another $8.5 billion. In the meantime, ONT has a great opportunity to set the standard for the Southern California airports and provide travelers with an attractive alternative. Source: Torrance Daily Breeze, February 5, 2016.
30 Ontario Can Easily Support a Return Back to Passenger Levels and Region Share Ontario Passenger Share of the LA Region Ontario Passengers (millions) 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% 7.6% 8.2% 8.4% 8.3% 8.1% 8.2% 8.0% 8.0% 7.3% 6.2% 5.9% 5.4% 5.0% 4.5% 4.4% 4.3% ONT Share of Region ONT Passengers (millions) Source: Airport statistics.
31 Largest Ontario Markets Without Nonstop Service Passengers Daily Each Way Note: Washington includes BWI, DCA and IAD; New York includes EWR, HPN, ISP, JFK, LGA and SWF; Boston includes BOS, MHT and PVD. Sources: U.S. Domestic O&D Survey, CY 2015, Innovata Schedules.
32 When ONT has Nonstop Service, it Captures Nearly 9% of the Los Angeles Area s O&D Passengers 25% % of Los Angeles Area Using ONT 20% 15% 10% 5% 20.5% 12.6% 9.9% 9.1% 9.0% 7.6% 6.6% 6.5% On average 8.9% use ONT when it has nonstop service 5.8% 4.9% 4.6% 0% When ONT does not have nonstop service, but another area airport does, ONT captures only 4.1% of the traffic Note: Bay Area includes OAK, SFO and SJC; Dallas includes DAL and DFW, Houston includes HOU and IAH, Chicago includes MDW and ORD. Sources: U.S. Domestic O&D Survey, CY 2015, Innovata Schedules.
33 If ONT Captured 8.9% of the Regions O&D Passengers, ONT s Top Unserved Markets are Much Larger Passengers Daily Each Way Currently Use ONT Recapture from Other LA Area Airports if ONT had nonstop service Note: Assumes ONT captures 8.9% of each of the markets where they do not have nonstop service, but another LA Area airport does have a nonstop. Sources: U.S. Domestic O&D Survey, CY 2015, Innovata Schedules.
34 Ontario International Airport 26 domestic gates and 2 international gates Current facility supports 10 million annual passengers Equipped to handle any aircraft Customs facility
35 Ontario International Airport No slot restrictions No curfews, 24/7 operation Two runways (10,200ft and 12,200ft) All-weather operational
36 Why Go Anywhere Else???
37
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