Air Service at GMIA ASQ Milwaukee January 21, 2013
Airlines that have served MKE
GMIA Airlines 2002 to 2013
GMIA Total Passengers - Enplaned & Deplaned 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 1960 1970 1980 1990 2000 2010
GMIA Total Passengers - 1989 to 2011 10,000,000 9,000,000 8,000,000 Enplaned/Deplaned 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
GMIA Transfer and O&D Passengers - 1989 to 2011
GMIA Total O&D Passengers 10,000,000 9,000,000 8,000,000 (Enplaned/Deplaned) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
GMIA Total Passengers 10,000,000 9,000,000 8,000,000 (Enplaned/Deplaned) 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Airline Market Share At GMIA - By Seats December 2011 Seat Share December 2012 Seat Share US Airways 3% United 4% Southwest 12% American 3% Continental 3% Air Canada 1% AirTran 35% US Airways 5% Frontier 5% United 8% American 4% Air Canada 1% Southwest/ AirTran 52% Delta 17% Frontier 22% Delta 25% Source: Innovata Schedules for December.
Nationwide Trends in Aviation
Rising Fuel Prices Airlines spent $31 billion on fuel in 2011, compared to $10 billion in 2000 Fuel is largest single component of airline costs, exceeding payroll and fringe benefits
Historic Jet Fuel Prices - October 1990 to October 2012 Cost Per Gallon Source: U.S. Energy Information Administration
Cost per Available Seat-Mile (cents) Cost per Available Seat-Mile - CASM with and without fuel
Average U.S. Domestic Fares - 1995 to 2012 (1Q) non-adjusted Source: Bureau of Transportation Statistics
Adjusted Airfares Have Decreased Compared to 1979 Source: Airlines For America
Summary of Airline Fees - April 2012 Airline Carry-on Luggage 1 st Checked Bag 2 nd Checked Bag Ticket Change Fee Seat Selection Fee AirTran Alaska Allegiant American Delta Frontier JetBlue Southwest Spirit United US Airways
Billions of Dollars Accumulated Net Losses & Gains - Legacy and low-cost airlines, 2001-2011
U.S. Domestic Market Share Chart 30 JetBlue 1% Hawaiian AirTran ATA 1% 2% 2% Alaska 3% America West 4% Continental 7% Northwest 9% December 2002 Seat Share Frontier 1% Aloha 1% Spirit 1% Midwest 1% Delta 18% American 15% Frontier 2% Alaska JetBlue 4% 4% US Airways 12% December 2012 Seat Share Spirit 1% Hawaiian 1% Virgin America 1% Allegiant 1% Other 1% Southwest 22% US Airways 10% United 12% Southwest 14% American 13% United 17% Delta 21% Source: Innovata Schedules for December.
Airline Industry Consolidation -Percent of domestic passenger capacity
Airlines Cut Shorter Flights Between June 2007 and June 2012, airlines reduced the number of domestic scheduled passenger flights by 13.9% Flights less than 250 miles decreased by 24% Flights between 250 and 499 miles decreased by 16% These reductions accounted for 3,000 fewer flights per day Financial pressures have forced 51 passenger and cargo airlines to file for bankruptcy since 2000.
Overall reduction in flights Year-over-year changes in departures, by U.S. carrier Airline 2012 Departures 2013 Departures Percent Change American 310,575 315,547 1.6% Delta 466,389 446,230-4.3% United 490,806 473,777-3.5% US Airways 288,980 278,767-3.5% Alaska 70,337 72,091 2.5% JetBlue 63,706 67,669 6.2% Spirit 18,063 20,845 15.4% Virgin America 12,831 12,589-1.9% Southwest/AirTran 335,577 321,082-4.3% Frontier 32,613 21,285-34.7% Totals 2,089,877 2,029,882-2.9% Source: Innovata/Aviation DataMiner
Billions of passengers Passenger Traffic and Capacity - Domestic, 2000 to 2011
Average Fares by Flight Length - New fees also increase revenue $226 $237 $191 $177 $164 $116
Change in the Nation s Hub Network
U.S. Domestic Market Share December 2012 Seat Share Frontier 2% Other 13% Southwest 22% US Airways 12% American 13% Delta 21% United 17% Source: Innovata Schedules for December.
Historic Hub Cities - 38 Hub Cities Seattle Minneapolis Portland San Francisco Reno Salt Lake City Denver Colorado Springs Kansas City Milwaukee Chicago Dayton Cincinnati St. Louis Detroit Cleveland Pittsburgh Columbus Baltimore Boston New York City Newark Philadelphia Washington, D.C. San Jose Los Angeles Las Vegas Phoenix Dallas Memphis Nashville Atlanta Raleigh Charlotte Houston Orlando Fort Lauderdale Miami
Historic Hub Cities - 15 Cities Lost Hub Status Portland Milwaukee Dayton Pittsburgh Reno Colorado Springs Kansas City St. Louis Columbus San Jose Las Vegas Nashville Raleigh Los Angeles Fort Lauderdale
Current Hub Cities - 22 Hub Cities Seattle Minneapolis Detroit San Francisco Salt Lake City Denver Chicago Cincinnati Cleveland Newark New York City Philadelphia Washington, D.C. Baltimore Phoenix Memphis Dallas Atlanta Charlotte Houston Orlando Miami
Flight Cutbacks at Hub Airports - June 2007-June 2012 Hub Airport Hub Airline Scheduled Passenger Flights June 2007 Scheduled Passenger Flights June 2012 Percent Change Cincinnati Delta 12,781 4,710-63% Cleveland Continental 9,070 6,684-26% Memphis Northwest 8,227 5,308-36% Pittsburgh US Airways 7,462 4,470-40% St. Louis American 9,503 7,127-25% Total 5 hubs 47,043 28,299-40%
Current Cities With 2 Hubbing Airlines - 5 Cities Chicago Denver Phoenix Dallas Atlanta
Timeline: Air Service at GMIA
12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 Midwest/Frontier Timeline - 1989 to 2011 2011 Frontier De-Hubs 2010 2006 2007 November Midwest Southwest AirTran 2009 TPG/Northwest August June Merged Attempts 2009 Purchases 23 13 Into 2003 Milwaukee Frontier Enters Republic Midwest Southwest Frontier Purchase AirTran Airways Takeover Brand Enters Frontier Midwest Airlines Airlines - 29% Midwest - 36% (2011) Acquires 1989 1993 Midwest Convergence Midwest Midwest Airlines Airlines Airlines - - 53% 34% 35% Frontier Airlines - 7% From (June for $31 - Bankruptcy 2012) 53% Million Northwest Airlines Northwest - 35% Total Airlines Passengers: Midwest - 25% Airlines 6,142,124-35% Midwest Express Total Passengers: 7,299,294 Midwest - Midwest 14% Total Total Express Airlines Passengers: - 25% Serves 9,522,456 9,848,377 7,935,124 44 7,712,535 Cities Frontier Frontier/Midwest Airlines Total Airlines Passengers: Airlines Serves Serves 36 Serves Cities 7,935,124 42 32 36 44 Cities (2011) Cities Total Passengers: Total 4,308,295 Frontier Passengers: Midwest Airlines 4,521,872 Airlines Serves 4 Serves Cities 32 (2012) Cities Midwest Express Midwest Serves Express 20 Cities Serves 31 Cities 2002 AirTran Enters Midwest Airlines - 37% Total Passengers: 5,589,127 Midwest Airlines Serves 44 Cities Total GMIA Midwest AirTran 0 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11
GMIA Air Service Today
The airlines are flying into GMIA to serve the aviation transportation demand of Southeastern Wisconsin. The airlines compete for passengers and cargo. Ticket prices are set by the airlines and the market. Where airlines fly is a decision made by the airlines.
Average Air Fares - 2000 to 2012 (2Q) $400 $380 $360 $340 $320 $300 $280 $260 NAT MKE MDW ORD $240 $220 $200 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
GMIA s Top 30 Markets 1 Orlando (MCO) AT, DL, FR, SW 2 Las Vegas (LAS) SW 3 New York (LGA) AT, DL, SW 4 Phoenix (PHX) SW, US 5 Denver (DEN) FR, SW, UA 6 Washington (DCA) AT 7 Atlanta (ATL) AT, DL 8 Minneapolis/St. Paul (MSP) DL, SW 9 Boston (BOS) SW 10 Los Angeles (LAX) SW 11 Dallas/Ft. Worth (DFW) AA 12 Tampa (TPA) AT, SW 13 Ft. Myers (RSW) AT 14 San Francisco (SFO) SW 15 Baltimore (BWI) SW 16 Kansas City (MCI) SW 17 Ft. Lauderdale (FLL) SW 18 Philadelphia (PHL) US 19 Seattle (SEA) SW 20 San Diego (SAN) - 21 Newark (EWR) UA 22 St. Louis (STL) SW 23 Charlotte (CLT) US 24 Pittsburgh (PIT) - 25 Omaha (OMA) - 26 New Orleans (MSY) SW 27 Houston (IAH) UA 28 San Antonio (SAT) - 29 Raleigh-Durham (RDU) - 30 Columbus (CMH) -
GMIA s Top 30 Markets - 2011 Passengers 1 Orlando 417,506 2 Las Vegas 412,821 3 New York 358,255 4 Phoenix 350,820 5 Denver 280,842 6 Washington 275,780 7 Atlanta 254,649 8 Minneapolis/St. Paul 246,885 9 Boston 224,463 10 Los Angeles 216,448 11 Dallas/Ft. Worth 195,347 12 Tampa 193,619 13 Ft. Myers 173,344 14 San Francisco 165,527 15 Baltimore 151,417 16 Kansas City 147,338 17 Ft. Lauderdale 144,824 18 Philadelphia 124,752 19 Seattle 123,060 20 San Diego 105,031 21 Newark 97,059 22 St. Louis 82,156 23 Charlotte 76,184 24 Pittsburgh 70,982 25 Omaha 68,580 26 New Orleans 66,393 27 Houston 60,253 28 San Antonio 58,618 29 Raleigh-Durham 58,064 30 Columbus 56,108 *Destinations in red denote no non-stop service from MKE
GMIA Passengers Flying Non-stop 68% of our passengers fly Non-stop 6% of our passengers reach our Top 30 Markets via connections 26% of our passengers fly to other markets
Air Canada NonStop Cities Served
American Airlines NonStop Cities Served
US Airways NonStop Cities Served
Frontier NonStop Cities Served
United NonStop Cities Served
Delta Airlines NonStop Cities Served
Southwest/AirTran NonStop Cities Served
GMIA Cities No Longer Served Non-Stop Akron Appleton Columbus Dayton Des Moines Flint Grand Rapids Green Bay Hartford Indianapolis Madison Manistee Marquette Nashville Omaha Pittsburgh Raleigh-Durham Rhinelander San Antonio San Diego Louisville
GMIA in Comparison
Wisconsin s Air Service
Central Wisconsin Non-Stop Cities - 3 Non-stop Cities Minneapolis Central Wisconsin Airport Detroit Chicago
La Crosse Non-Stop Cities - 3 Non-stop Cities Minneapolis La Crosse Chicago Detroit
Green Bay Non-Stop Cities - 5 Non-stop Cities Minneapolis Green Bay Detroit Chicago Orlando Ft. Myers
Appleton Non-Stop Cities - 7 Non-stop Cities Minneapolis Appleton Detroit Chicago Las Vegas Phoenix Atlanta Orlando
Madison Non-Stop Cities - 12 Non-stop Cities Minneapolis Madison Detroit Denver Chicago Cincinnati Cleveland New York City Newark Washington, D.C. Dallas Atlanta Orlando
Milwaukee Non-Stop Cities - 31 Non-stop Cities Seattle Minneapolis Milwaukee Detroit Toronto San Francisco Las Vegas Denver Kansas City Chicago St. Louis Memphis Cleveland Cincinnati Charlotte Boston New York City Newark Philadelphia Baltimore Washington D.C. Los Angeles Phoenix Dallas Atlanta New Orleans Houston Tampa Ft. Myers Orlando Ft. Lauderdale Cancun
Other U.S. Medium-Hubs
Change in Passenger Counts At Midwestern Hub Airports 2007 Minneapolis 2011 35,157,322-2,038,823 33,118,499 2007 Detroit 2011 35,983,478-3,577,319 32,406,159 2007 Milwaukee 2011 7,712,535 + 1,809,921 9,522,456 2007 Chicago O Hare 2011 76,177,855-9,518,146 66,659,709 2007 Cleveland 2011 11,459,390-2,256,506 9,202,884 2007 Cincinnati 2011 15,736,220-8,701,957 7,034,263 2007 Memphis 2011 11,290,477-2,220,390 9,070,087
Comparable U.S. Cities - 2011 City Population Passengers Conventions (in Room Nights) Kansas City, MO 2,052,676 10,400,854 252,291 Columbus, OH 1,858,464 6,378,722 354,651 Austin, TX 1,783,519 9,080,875 200,712 Indianapolis, IN 1,778,568 7,478,835 643,657 Nashville, TN 1,617,142 9,602,169 374,395* Milwaukee, WI 1,562,216 9,522,456 190,000 Louisville, KY 1,294,849 3,398,844 570,607 Oklahoma City, OK 1,278,053 3,561,605 322,720 * Nashville reported in Total Convention Attendance.
Kansas City Non-Stop Cities - 40 Non-stop Cities Seattle Portland Minneapolis Milwaukee Detroit Toronto Boston San Francisco Oakland Salt Lake City Denver Salina Chicago Indianapolis Kansas City St. Louis Cleveland Cincinnati New York City Newark Philadelphia Baltimore Washington, D.C. Los Angeles San Diego Las Vegas Phoenix Albuquerque Harrison Nashville Oklahoma City Memphis Charlotte Atlanta Dallas Houston New Orleans Tampa Orlando Ft. Lauderdale Cancun
Columbus Non-Stop Cities - 32 Non-stop Cities Minneapolis Detroit Toronto Boston Denver St. Louis Chicago Columbus Cleveland Raleigh-Durham New York City Newark Philadelphia Baltimore Washington, D.C. Los Angeles Las Vegas Phoenix Dallas Memphis Nashville Atlanta Charlotte Houston Tampa Ft. Myers Orlando Ft. Lauderdale Miami Cancun
Austin Non-Stop Cities - 33 Non-stop Cities Seattle Minneapolis Portland Detroit San Francisco Oakland San Jose Los Angeles Long Beach San Diego Salt Lake City Las Vegas Phoenix Denver Lubbock Dallas El Paso Houston Austin Harlingen Boston Chicago New York City Newark Philadelphia Baltimore Washington, D.C. Nashville Memphis Charlotte Atlanta Orlando Tampa Ft. Lauderdale Cancun
Indianapolis Non-Stop Cities - 32 Non-stop Cities Minneapolis Toronto Detroit Boston Los Angeles Salt Lake City Las Vegas Phoenix Denver Chicago Cleveland Indianapolis Kansas City Raleigh-Durham Charlotte Memphis Atlanta Dallas New York City Newark Philadelphia Baltimore Washington, D.C. Houston Tampa Ft. Myers Orlando Ft. Lauderdale Miami Cancun
Nashville Non-Stop Cities - 42 Non-stop Cities Minneapolis Toronto Detroit Boston Los Angeles San Diego Salt Lake City Las Vegas Phoenix Chicago Cleveland New York City Newark Denver Columbus Philadelphia Kansas City Cincinnati Baltimore St. Louis Washington D.C. Jackson Norfolk Memphis Nashville Greenville Raleigh-Durham Charlotte Austin Atlanta Birmingham Dallas Charleston Houston Jacksonville Panama City San Antonio New Orleans Orlando Tampa Ft. Lauderdale Miami Cancun
Louisville Non-Stop Cities - 21 Non-stop Cities Minneapolis Detroit Las Vegas Phoenix Denver Dallas Chicago Cleveland St. Louis Louisville Charlotte Memphis Atlanta New York City Newark Philadelphia Baltimore Washington D.C. Houston Tampa Orlando Miami
Oklahoma City Non-Stop Cities - 18 Non-stop Cities Minneapolis Detroit Chicago San Francisco Salt Lake City Denver Kansas City St. Louis Newark Baltimore Washington, D.C. Los Angeles Las Vegas Phoenix Oklahoma City Dallas Memphis Atlanta Houston
Milwaukee Non-Stop Cities (Current) - 31 Non-stop Cities Seattle Minneapolis Milwaukee Detroit Toronto San Francisco Las Vegas Denver Chicago Kansas City St. Louis Memphis Cleveland Cincinnati Charlotte Boston New York City Newark Philadelphia Baltimore Washington D.C. Los Angeles Phoenix Dallas Atlanta New Orleans Houston Tampa Ft. Myers Orlando Ft. Lauderdale Cancun
Comparable U.S. Cities - 2012 City Non-Stops Population Kansas City 40 2,052,676 Columbus 32 1,858,464 Austin 33 1,783,519 Indianapolis 32 1,778,568 Nashville 42 1,617,142 Milwaukee 31 1,562,216 Louisville 21 1,294,849 Oklahoma City 18 1,278,053
MKE As Chicago s Third Airport
Growth in Illinois Travelers Using GMIA GMIA continues to market aggressively to northern Illinois residents, who are frequent travelers.
The Northern Illinois Counties Are High Growth & High Income Chart 24 WASHINGTON OZAUKEE Lake & McHenry Counties WAUKESHA l Over 1 million population MKE l Median household income 47% and 39% above national average RACINE l $34.9 billion aggregate household income Wisconsin KENOSHA l Within 1 hour of MKE Illinois MCHENRY LAKE MKE - ORD Travel Time Midpoint DE KALB KANE COOK DUPAGE ORD MDW KENDALL WILL Source: U.S. Census, 2011 American Community Survey. GRUNDY
Growth in Illinois Travelers Using GMIA
Train-to-Plane via Airport Amtrak Station 12200 Annual Number of MKE Passengers Using Amtrak 10200 8200 6200 4200 2200 200 2005 2006 2007 2008 2009 2010 2011 2012
Chart 84 MKE s Share Of The Chicago 3-Airport Market Has Increased From 11% in 2002 to 16% in YE Q1 2012 MKE Passenger Share of ORD/MDW/MKE 20% 19% 18% 17% 16% 15% 14% 13% 12% 11% 10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0% Q1 2002 Q2 2002 Q3 2002 Q4 2002 Q1 2003 Q2 2003 Q3 2003 Q4 2003 Q1 2004 Q2 2004 Q3 2004 Q4 2004 Q1 2005 Q2 2005 Q3 2005 Q4 2005 Q1 2006 Q2 2006 Source: U.S. DOT, Origin-Destination Passenger Survey Year-Ended Moving Total Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 MKE passenger share rose 4 points since YE Q1 2008
Air Service Development Initiatives
U.S. Domestic Market Share December 2012 Seat Share Frontier 2% Other 13% Southwest 22% US Airways 12% American 13% Delta 21% United 17%
Air Service Initiatives GMIA met with, and made presentations to, 23 airlines in 2012.
Chart 88 47 Large Companies Have Headquarters In MKE Service Area -Johnson Controls -Northwestern Mutual -Manpower -Kohl s -American Family Insurance -Oshkosh -Harley-Davidson -Rockwell Automation -Fiserv -Wisconsin Energy -Manitowoc -CUNA Mutual Group -Bemis -Alliant Energy -JohnsonDiversey -Snap-On, Kenosha -Sentry Insurance Group -Joy Global -A.O. Smith -Briggs & Stratton -Regal-Beloit -Modine Manufacturing -MGIC Investment -Walgreen -Abbott Laboratories -Baxter International -Fortune Brands -W.W. Grainger -Tenneco -United Stationers -Hospira -Pactiv -Hewitt Associates -CF Industries Holding -Solo Cup -Packaging Corp. of America -ACCO Brands -Menard -Kohler -Schneider National -Roundy s Supermarkets -Ashley Furniture -ShopKo Stores -SC Johnson & Son -ABC Supply -Schreiber Foods -Jockey International Fortune 500 Company - WI Fortune 1000 Company - WI Fortune 500 Company - IL Fortune 1000 Company - IL Large Private Wisconsin Company Source: Fortune, ABRAZO Marketing.
Fortune 500 Headquarters Per Million People
Air Service Initiatives GMIA has hosted three groups of airline network planners in Milwaukee over the last few months.
North America Market Share US Airways Frontier Air Canada Other Delta GMIA is served by the 6 largest airlines in North America, including the 5 largest U.S. airlines, in addition to Frontier and Air Canada American United Southwest
U.S. Domestic Market Share Of Other Airlines December 2012 Seat Share Virgin America 1% Alaska 3% JetBlue 4% Spirit 1% Other 4% Airlines Currently serving MKE 87% Source: Innovata Schedules for December.
Alaska Airlines - Hubs and Focus Cities Seattle
JetBlue - Hubs and Focus Cities Boston New York City Long Beach (LA Area) Orlando Fort Lauderdale San Juan
Virgin America - Hubs and Focus Cities San Francisco Los Angeles
Spirit Airlines - Hubs and Focus Cities Detroit Dallas Fort Lauderdale
MKE Business Travelers
MKE Business Travelers Create Demand Stay involved in the efforts of M7, MMAC, GMC to bring businesses and jobs to the Milwaukee region
MKE Business Travelers Fly from MKE Understanding that demand for nonstop service at a profit is what will keep airlines flying from MKE, use your airport.
MKE Business Travelers Invite Business Partner with VISIT Milwaukee and host professional conferences.
MKE Business Travelers Communicate changes in your nonstop travel needs Airlines ask for info on new business ties between MKE and other cities Delta and Southwest have local sales reps
Thank You! Questions?