Planning Advisory Committee March 24, 2015

Planning Advisory Committee March 24, 2015

Opening Comments: Russ Forrest, Asst. County Manager Rick Lamport, GUC Airport Manager Introductions: Planning Advisory Committee (PAC) GUC Staff Jviation Staff Mead & Hunt Staff

PAC members will leave with: Understanding d of the air service market at GUC, and the dynamics of the airline industry An understanding of the future aviation demand forecasts and the methodologies used to identify future demand Awareness of the Airport s physical infrastructure and associated challenges An awareness a ess of next steps in the Master Plan

Start on time, end early One person speaks at a time Honor diversity of opinions Be hard on the issue, not the person Participate fully No sidebar conversations Stay focused and on point Disclose financial interests related to the airport Turn cells phones off/vibrate Use humor!

Enplanement Forecast supported by air service studies Air Service Market Research Passenger Demand Analysis

Airline industry has recovered since 9/11 and 2008 declines; primarily il through h consolidation and capacity discipline Fuel prices continue to fluctuate wildly during past 15 years Airlines are retiring smaller aircraft and replacing with larger aircraft 50-seat regional jet -> 76-seat regional jet Smaller mainline for larger mainline US airline industry dominated by 4 airlines controlling 85% of seats

Airlines now profitable Increase in ancillary Air rline earning gs (Billions) $30 $20 $10 $0 revenue (e.g. bag fees) ($10) Capacity ($20) restraint ($30) Consolidation Expect record profits for 2014/2015 Higher airfares Lower fuel costs ($40) ($50) ($11) B $26 B $23 B $18 B ($26) B ($58) B Cumulative profit since 1948 Source: Airlines for America 1990-2013

Source: Aviation Week

250,000,000 Scheduled Seats (CY 2014) 200,000,000 150,000,000 100,000,000 50,000,000 0 4 major U.S. air carriers (AA, WN, DL, and UA) control 84% of domestic capacity (i.e. seats) Source: Diio Mi Schedule (CY 2014)

$195 $185 $175 $165 $155 $145 $135 $125 Average Domestic Fare Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2008 2009 2010 2011 2012 2013 2014 Fares up almost 30% since 2009, attributable to: Less competition Elimination of unprofitable routes Adherence to capacity control Source: Diio Mi US Domestic O&D Average Fare

500,000,000 90 Capa acity/pass sengers 450,000,000 400,000,000000 000 350,000,000 300,000,000000 000 Capacity Passengers Load Factor 250,000,000 2008 2009 2010 2011 2012 2013 2014 Year Ended Double digit capacity declines since 2008 following fuel spike; load factors have continued to rise reaching ~85% for YE Nov 2014 Source: Diio Mi T-100 Seats/Onboards 12-month non-directional, one-way rolling average; LF=RPMs/ASMs 87 84 81 78 75 Load facto or %

Industry capacity growing overall in the past five years Small hub and non-hub 12% airports hurt by 8% reduction in regional 6% hubs with fewer options 4% and fleet transition 2% In an environment never seen before U.S. Domestic Capacity Change by Airport Size (July 2015 vs. 2010) 10% 11% 0% (2%) (4%) (6%) 3% (5%) % change in seats (2%) 7% Large hub Medium hub Small hub Non-hub Total Source: Diio Mi Scheduled Seats

Domestic departures down significantly since 2010 (~8%) Reductions have impacted domestic more than international capacity Even with record profits, capacity discipline is the new mantra in this Oligopolistic industry state Carrier Departures Seats 2010 2015 2015 vs 2010 2010 2015 Domestic Schedule Comparison 2015 vs 2010 AA/US 6,186 6,194 0.1% 591,041 623,989 5.6% DL/NW 5,825 5,242 (10.0%) 540,926 584,296 8.0% UA/CO 5,412 4,595 (15.1%) 448,814 399,564 (11.0%) WN/FL 4,152 3,776 (9.1%) 552,936 549,858 (0.6%) International Schedule Comparison AA/US 826 797 (3.5%) 118,687 123,177 3.8% DL/NW 538 571 6.1% 86,972 97,708 12.3% UA/CO 822 749 (8.9%) 108,273 110,245 1.8% WN/FL 10 56 460.0% 1,370 8,200 498.5% Source: Diio Mi Schedule (Friday Peak day schedule - July 2010 vs July 2015)

Merger officially closed December 9, 2013 Largest airline in the world with hubs in: Charlotte, Chicago, Dallas, Los Angeles, Miami, New York City (JFK), Philadelphia, Phoenix, and Washington (DCA) AA re-banking DFW, MIA, ORD hubs AA has begun to connect the dots across the system TUL, OKC, GRR, DSM, FWA, EVV to US Hubs US Airways is now part of oneworld alliance Large influx of new aircraft sets AA on path to be youngest fleet of legacy airlines Airbus, Boeing and new regional aircraft

1,000 MIA and LAX have seen 800 the largest growth yearover-year 600 400 DFW will continue to grow 200 to allow for connecting 0 the dots and large RJs Phoenix hub is mainly a large gauge connect hub 15 from SoCal to East - it will likely evolve in merger Unlikely l many or any of these hubs will see wholesale reductions 10 5 0 (5) July 2015 Peak Day Departures 831 672 504 469 341 311 254 199 169 112 100 DFW CLT ORD PHL MIA PHX DCA LAX LGA BOS JFK # of Destinations Served YoY 11 3 4 0 0 1 1 1 (2) (1) (1) DFW CLT ORD PHL MIA PHX DCA LAX LGA BOS JFK Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 1 8

July 2015 Peak Day Departures Focused on lowering 1,200 1,034 unit costs and 1,000 improving customer 800 experience 600 452 447 Reducing 50-seat 400 277 253 regional jets from 309 209 167 to 100 by 2015 200 127 89 0 Active in route network adjustments MEM is no longer a # of Destinations Served YoY Y hub 15 10 CVG down to 89 10 8 departures from 106 5 0 in 2014 0 Creating focus city at (5) (1) (1) SEA and shuttle in (3) (4) LAX (10) (7) (9) (15) ATL DTW MSP LGA SLC JFK LAX SEA CVG ATL DTW MSP LGA SLC JFK LAX SEA CVG Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 1 9

Top 4 hubs have major competition from another legacy Competition from other legacies and LCC s have likely affected UA s financial a performance Adding 70 ERJ- 175 (76-seat, dual class) with deliveries in 2014/2015 UA s financial performance has lagged industry 800 600 400 200 0 5 0 (5) (10) (15) July 2015 Peak Day Departures 628 618 441 414 318 253 181 57 ORD IAH EWR DEN SFO IAD LAX CLE # Destinations Served YoY 3 0 (2) (3) (3) (8) (9) (12) ORD IAH EWR DEN SFO IAD LAX CLE Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 2 0

Completed integration of AirTran at the end of 2014 International ti expansion Huge growth in DAL due to sunset of the Wright Amendment and other strategic focus hubs Expansion in major Northeast markets like BOS, EWR, LGA, and DCA 300 250 200 150 100 50 0 July Peak Day Departures MDW BWI LAS DEN PHX DAL HOU ATL LAX MCO OAK SAN BNA STL TPA 2014 2015 35 # of Destinations Served YoY 26 25 15 5 (5) 3 2 2 1 2 (1) (3) 3 1 3 2 3 2 2 Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 2 1

Consistently one of the more profitable major 400 airlines 300 Majority of flying based in SEA/PDX and focus to 200 fortify these hubs Added flying to SLC in 100 response to DL s growth in SEA 0 SAN has experienced a big push over the past year Major push over past 10 few years into Hawaii Ability to continue 5 expansion 737-900ERS and 0 737MAX Agreement with SkyWest for 7 E-175s (5) (3) July Peak Day Departures SEA PDX ANC LAX GEG SAN BOI SJC SFO FAI JNU SLC 2014 2015 5 # of Destinations Served YoY Y (1) 0 0 0 0 1 0 0 0 (1) SEA PDX ANC LAX GEG SAN BOI SJC SFO FAI JNU SLC Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 2 2

Recently announced the purchase of 6 additional A-319 aircraft Expected to have a total of 30 in the fleet by 2018 Higher ownership cost requires higher utilization and the need to move into larger markets Started moving into larger markets such as IND, PIT, MSY, JAX, OMA, etc. Currently serving 99 cities majority of growth in top markets continues to be in Florida markets; LAS and AZA are basically flat year-over-year 200 March 2015 vs 2014 Weekly Departures 150 100 50 0 SFB LAS AZA PIE PGD BLI CVG FLL CID FSD Source: Diio Mi Schedules for sample week in March 2015

Purchased by Indigo Partners LLC in December 2013 150 Previously owned Spirit 100 Airlines Transforming into an ULCC Looking a lot more like Spirit 50 Although DEN is still the largest market, flight capacity has dropped over 45% YoY Net loss of 18 destinations from 55 July 2014 to 37 in July 2015 Loss of large connecting hub affects smaller markets more substantially Focus is adding service to new, larger destinations with thin frequencies ATL, ORD, CLE, PHL, CVG, IAD, MSP, MIA Opportunistic play in places like CLE and CVG 0 20 10 0 (10) (20) (30) July Peak Day Departures DEN ATL ORD LAS MCO CLE PHL TTN CVG IAD MSP MIA 2014 2015 # of Destinations Served YoY 13 14 8 8 5 6 7 2 4 6 (3) (18) DEN ATL ORD LAS MCO CLE PHL TTN CVG IAD MSP MIA Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 2 4

Significant expansion through 2021 60 Adding 22 aircraft by end of 2015 63 additional aircraft by 2021 Future growth to be focused at medium/large airports ORD, IAH, BWI, CLE, MCI Strategy over the past year tends to favor breadth of service over depth of service Continued preference for daily service over LTD 40 20 0 25 20 15 10 5 0 July Peak Day Departures FLL ORD DFW LAS IAH DTW LAX ATL DEN MCO MYR ACY BWI 2014 2015 # of Destinations Served YoY 12 9 3 5 5 4 4 2 2 2 1 0 3 FLL ORD DFW LAS IAH DTW LAX ATL DEN MCO MYR ACY BWI Source: Diio Mi July 2015 vs July 2014. Peak day defined as Friday 2 5

JetBlue Airways Slowed growth from historical numbers Focused on improving the business and getting more aggressive on ancillaries Continued expansion to Caribbean and Latin America and growth in BOS and FLL New markets year-over-year include DCA, BDL, CHS, PHL, and DTW Virgin America IPO completed in November 2014 Margins have improved after putting the breaks on growth and fuel cost decreasing Expansion into DAL (Love Field), AUS, EWR, ORD, DCA, LGA, etc.

YE 2Q2014 Passenger Demand Analysis Used to determine travel patterns from local catchment area passengers Combination of passenger ticketed information from online travel agencies/catchment area travel agencies and US DOT airline data 4,781 Airline Reporting Corporation (ARC) tickets analyzed

True Market = The total number of passengers from a catchment area, including passengers flying from GUC and alternate airports Results of Study: GUC retains 23% of passengers overall ~57k annually 77% of passengers divert or leak to alternate airports ~188k annually ORIGINATING AIRPORT USE RANK AIRPORT PAX % Domestic 1 DEN 142,936 62 2 GUC 56,267 25 3 GJT 11,109 5 4 MTJ 9,647 4 5 COS 8,953 4 Subtotal 228,911 100 International 1 DEN 13,562 82 2 GUC 1,104 7 3 GJT 745 5 4 COS 710 4 5 MTJ 426 3 Subtotal 16,546 100 Domestic and international 1 DEN 156,497 64 2 GUC 57,371 23 3 GJT 11,853 5 4 MTJ 10,073 4 5 COS 9,663 4 Total 245,457 100

RANK DESTINATION GUC REPORTED PAX GUC RETENTION % DIVERTED PAX TRUE MARKET PDEW 1 Houston, TX (IAH) 6,212 42 8,743 14,955 20.5 2 Dallas, TX (DFW) 9,544 75 3,251 12,795 17.5 3 Boston, MA 1,709 14 10,128 11,837 16.2 4 Austin, TX 2,598 31 5,913 8,511 11.7 5 New York, NY (LGA) 2,192 27 5,905 8,097 11.1 6 Philadelphia, PA 656 10 6,153 6,810 9.3 7 Chicago, IL (ORD) 2,421 42 3,320 5,741 7.9 8 Los Angeles, CA 1,010 18 4,535 5,545 7.6 9 Tulsa, OK 740 14 4,708 5,448 7.5 10 San Antonio, TX 1,104 22 3,998 5,102 7.0 11 Seattle, WA 444 9 4,643 5,087 7.0 12 Atlanta, GA 1,408 29 3,426 4,834 6.66 13 Tampa, FL 1,042 22 3,679 4,721 6.5 14 Baltimore, MD 568 13 3,830 4,399 6.0 15 New Orleans, LA 666 16 3,584 4,250 5.8 16 San Francisco, CA 999 24 3,199 4,199 5.8 17 Nashville, TN 451 11 3,701 4,151 5.7 18 Pittsburgh, PA 486 12 3,595 4,081 5.6 19 Fort Lauderdale, FL 845 21 3,195 4,040 5.5 20 St. Louis, MO 565 15 3,186 3,751 5.1 21 Phoenix, AZ (PHX) 256 8 3,091 3,347 4.6 22 Newark, NJ 642 20 2,589 3,231 4.4 23 San Diego, CA 270 9 2,903 3,173 4.3 24 Minneapolis, MN 593 19 2,512 3,104 4.3 25 Detroit, MI 398 13 2,610 3,008 4.1 Top 25 destinations 37,820 26 106,398 144,218 197.6 Total domestic 56,267 25 172,644 228,911 313.6

RANK DESTINATION GUC REPORTED PAX GUC RETENTION % DIVERTED PAX TRUE MARKET PDEW 1 Toronto, Canada 132 10 1,148 1,281 1.8 2 Calgary, Canada 87 10 756 843 1.2 3 London, UK (LHR) 173 24 541 715 1.0 4 Monterrey, Mexico 68 10 592 660 09 0.9 5 Mexico City, Mexico 65 10 574 639 0.9 6 San Jose, Costa Rica 43 10 387 430 0.6 7 Victoria, Canada 39 10 337 376 0.5 8 Sao Paulo-Guarulhos, Brazil 37 10 318 355 0.5 9 Montego Bay, Jamaica 0 0 289 289 04 0.4 10 Dublin, Ireland 0 0 285 285 0.4 Top 10 destinations 645 12 5,227 5,872 8.0 Total international 1,104 7 15,443 16,546 22.7

REGION AIRPORT SW SE E W GL INTL NE NW C AK TOTAL DEN Pax 35,673 26,333 24,726 15,382 14,447 13,562 12,772 7,353 5,692 557 156,497 % 23 17 16 10 9 9 8 5 4 0 100 GUC Pax 24,792 8,104 7,039 3,910 5,452 1,104104 2,302 2,837 1,696 135 57,371 % 43 14 12 7 10 2 4 5 3 0 100 GJT Pax 1,783 1,431 1,020 4,125 1,002 745 372 937 387 54 11,853 % 15 12 9 35 8 6 3 8 3 0 100 MTJ Pax 2,611 1,926 1,470 1,717 789 426 489 400 238 7 10,073 % 26 19 15 17 8 4 5 4 2 0 100 COS Pax 3,197 1,971 1,230 611 838 710 429 446 217 13 9,663 % 33 20 13 6 9 7 4 5 2 0 100 Total Pax 68,056 39,765 35,484 25,745 22,528 16,546 16,363 11,974 8,230 766 245,457 % 28 16 14 10 9 7 7 5 3 0 100 GUC Retention % 36 20 20 15 24 7 14 24 21 18 23

US 10% Percentage Airline Use by Leaking Passengers AA 9% DL 7% OTHER 5% UA 32% F9 17% WN 20% Hub airlines at DEN control 69% of diverting/leaking passengers from GUC catchment t area

Many reasons passengers will choose another airport: Primary airport schedule & frequency Competing airport schedules & service levels Average fares

MONTHLY DEPARTURES DESTINATION MARKETING 2013 2014 AIRPORT CARRIER Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Chicago O'Hare United 0 0 0 0 0 2 1 2 5 0 0 0 Dallas/Ft Worth American 0 0 0 0 0 13 31 28 31 0 0 0 Denver United 61 58 33 31 30 44 37 39 58 31 31 30 Houston Intercontinental United 0 0 0 0 0 13 6 2 5 0 0 3 GUC Monthly Totals 61 58 33 31 30 72 75 71 99 31 31 33 GUC served by two airlines American Airlines Dallas/Ft Worth daily from December thru March United Airlines Year round daily service on United to Denver Winter, less than daily service to Chicago O Hare Summer/Winter less than daily service to Houston Intercontinental Source: Diio Mi

All competing airports offer significantly more service than GUC With over 167 destinations served, DEN provides convenient service to GUC s top markets Source: Diio Mi; March 2015 schedules WEEKLY DEPARTURES RANK DESTINATION DEN GUC GJT MTJ COS 1 Houston, TX (IAH) 111 1 7 7 21 2 Dallas, TX (DFW) 137 7 14 8 33 3 Boston, MA 48 0 0 0 0 4 Austin, TX 63 0 0 0 0 5 New York, NY (LGA) 68 0 0 0 0 6 Philadelphia, PA 44 0 0 0 0 7 Chicago, IL (ORD) 100 1 0 9 21 8 Los Angeles, CA 150 0 0 4 19 9 Tulsa, OK 53 0 0 0 0 10 San Antonio, TX 41 0 0 0 0 11 Seattle, WA 106 0 0 0 7 12 Atlanta, GA 107 0 0 2 7 13 Tampa, FL 37 0 0 0 0 14 Baltimore, MD 40 0 0 0 0 15 New Orleans, LA 38 0 0 0 0 16 San Francisco, CA 115 0 0 0 7 17 Nashville, TN 47 0 0 0 0 18 Pittsburgh, PA 21 0 0 0 0 19 Fort Lauderdale, FL 43 0 0 0 0 20 St. Louis, MO 60 0 0 0 0 21 Phoenix, AZ (PHX) 172 0 20 0 0 22 Newark, NJ 50 0 0 1 0 23 San Diego, CA 90 0 0 0 0 24 Minneapolis, MN 117 0 0 0 0 25 Detroit, MI 59 0 0 0 0 Total top 25 frequencies 1,917 9 41 31 115 Number of top 25 served 25 3 3 6 7 Total destinations served 167 4 6 8 11

AVERAGE ONE-WAY FARE GUC MAX RANK DESTINATION DEN GUC GJT MTJ COS DIFF. 1 Houston, TX (IAH) $168 $245 $263 $235 $213 $77 2 Dallas, TX (DFW) $122 $208 $211 $204 $154 $85 3 Boston, MA $204 $257 $242 $296 $231 $53 4 Austin, TX $127 $239 $172 $241 $152 $112 5 New York, NY (LGA) $178 $292 $239 $306 $230 $114 6 Philadelphia, PA $209 $303 $271 $281 $195 $108 7 Chicago, IL (ORD) $172 $230 $226 $240 $240 $58 8 Los Angeles, CA $132 $230 $138 $138 $184 $99 9 T l OK $150 $269 $262 $252 $184 $119 10 San Antonio, TX $156 $249 $223 $264 $170 $93 11 Seattle, WA $134 $330 $213 $259 $154 $196 12 Atlanta, GA $159 $236 $241 $213 $183 $77 13 Tampa, FL $181 $322 $241 $284 $188 $141 14 Baltimore MD $208 $278 $252 $254 $265 $70 15 New Orleans, LA $147 $321 $249 $273 $203 $174 16 San Francisco, CA $153 $253 $198 $227 $224 $101 17 Nashville, TN $153 $280 $240 $263 $171 $127 18 Pittsburgh, PA $214 $285 $297 $271 $215 $71 19 Fort Lauderdale, FL $152 $249 $257 $289 $201 $97 20 St. Louis, MO $136 $277 $229 $251 $164 $142 21 Phoenix, AZ (PHX) $96 $241 $139 $249 $180 $145 22 Newark, NJ $211 $346 $237 $330 $245 $134 23 San Diego, CA $126 $276 $194 $243 $198 $150 24 Minneapolis, MN $116 $237 $190 $239 $209 $121 25 Detroit, MI $136 $294 $238 $279 $219 $158 Average domestic fare $178 $256 $234 $260 $233 $78 GUC s fares are significantly higher than DEN; however, very similar to 9 Tulsa, OK $150 $269 $262 $252 $184 $119 GJT, MTJ & COS Leakage to other markets likely due 14 Baltimore, MD $208 $278 $252 $254 $265 $70 to service levels, not fare differences Source: Diio Mi; YE 2Q 2014

GUC has nonstop service to 3 of top O&D ski hubs: ORD, DFW, & IAH LAX is prime market for growth for GUC, as it s the largest US airport for ski destinations New York area combined is largest market but stage length is a concern for GUC RESORT AIRPORT GUC % RANK AIRPORT EGE ASE JAC HDN MTJ SUN GUC MMH TOTAL SHARE 1 Los Angeles, CA 54.9 111.5 45.9 16.1 41.6 39.7 1.6 57.6 368.9 0.4 2 Chicago, IL (ORD) 80.0 67.9 43.5 46.6 24.0 4.4 7.0 1.7 275.1 2.5 3 Dallas, TX (DFW) 88.3 20.00 32.9 45.9 24.44 31 3.1 35.2 15 1.5 251.3 14.0 4 Houston, TX (IAH) 57.4 42.6 17.5 56.6 34.2 1.7 15.8 0.8 226.7 7.0 5 New York, NY (LGA) 29.2 73.7 42.6 22.6 22.1 0.5 6.0 0.1 196.7 3.0 6 Newark, NJ 79.1 29.1 37.2 21.6 23.1 2.4 2.0 1.8 196.3 1.0 7 Atlanta, GA 51.2 20.6 29.2 35.9 15.1 3.0 5.1 0.5 160.5 3.2 8 San Francisco, CA 13.3 50.4 34.8 9.1 9.4 21.0 2.2 18.1 158.4 1.4 9 Miami, FL 115.6 17.3 6.5 8.3 5.3 1.0 0.8 0.4 155.1 0.5 10 New York, NY (JFK) 99.3 1.2 14.2 0.5 0.2 9.6 0.1 1.6 126.6 0.0 11 Boston, MA 20.8 18.3 35.6 14.9 12.6 2.8 5.2 1.2 111.5 4.7 12 Denver, CO 3.1 16.2 31.9 4.1 14.5 2.8 2.6 1.0 76.3 3.4 13 Seattle, WA 1.5 7.1 13.1 11.3 4.0 42.7 0.8 3.0 83.5 1.0 14 Minneapolis, MN 11.0 14.3 14.7 21.7 3.6 2.4 1.1 0.3 69.1 1.6 15 Philadelphia, PA 10.3 14.9 19.9 11.5 6.5 2.5 1.8 0.3 67.7 2.7 16 Fort Lauderdale, FL 15.3 19.4 6.6 12.5 6.0 0.7 3.4 0.1 64.0 5.3 17 Austin, TX 10.9 10.5 10.1 13.9 8.9 1.2 7.3 0.6 63.6 11.5 18 San Diego, CA 3.7 5.9 12.9 3.2 2.1 4.3 0.6 30.0 62.6 0.9 19 Washington, DC (IAD) 8.9 20.7 15.9 8.4 5.6 0.4 2.1 0.9 63.0 3.4 20 Tampa, FL 18.1 11.1 8.5 13.4 6.0 0.3 4.1 0.1 61.7 6.6 21 Washington, DC (DCA) 10.6 10.8 21.2 6.4 5.6 2.4 1.0 0.5 58.5 1.6 22 Orlando, FL (MCO) 11.3 11.7 13.4 11.5 4.1 1.4 1.9 0.8 56.1 3.4 23 Detroit, MI 6.9 13.6 10.6 7.3 3.9 0.7 1.5 0.3 44.8 3.4 24 Baltimore, MD 6.2 8.8 11.8 5.7 4.3 1.5 1.7 0.1 40.1 4.2 25 New Orleans, LA 8.4 7.1 4.7 10.6 2.8 0.3 1.8 35.6 5.1 Total 1,192.6 940.4 867.5 641.3 451.8 203.5 167.3 144.6 4,608.8 3.6

GUC service greatly impacted by support packages by RTA/CBMR Changes to current service levels can be made outside of normal airline economics Increase in service, aircraft gauge and frequency can be made by buying the service

Current Hub Service American Airlines Dallas/Ft Worth Will continue to evolve service as AA/US merge. Reintroduction of large regional jets at DFW could impact future schedules Spread schedule into shoulder or summer periods Additional frequency to allow more connecting opportunities without significant capacity increases United Airlines Denver UA s plan to significantly reduce 50-seat RJs could force GUC-DEN to 70-seat aircraft during off-peak months Houston Expand beyond current seasonal less than daily service Chicago - Expand beyond current seasonal less than daily service

New Hub Service American Airlines Merger has created significant ifi strains on resources at AA Potential for seasonal service to PHX or LAX hubs Delta Air Lines Strength/size of Atlanta hub could support seasonal service United Airlines SFO/LAX hubs only close hubs not served seasonally at GUC Alaska Has history of flying ski resorts with revenue guarantees; stage length of LAX or SEA could prove profit challenging depending on aircraft

Review historic and current activity Review air service reports Review trends/issues influencing growth Develop forecasts Commercial enplanements & operations GA & military operations Based aircraft Operations by aircraft type (feet mix)

Year Passenger Enplanements Commercial Passenger Operations General Aviation/ Air Taxi Operations Military Operations Total Operations 2004 38,175 928 28,946 150 30,024 2005 43,250 939 29,079 150 30,168 2006 48,775 950 29,450 150 30,550 2007 42,927 961 29,828 150 30,939 2008 37,742 2426 9,380 0 11,806 2009 41,102 1263 6,675 50 7,988 2010 37,135 2336 5,664 400 8,400 2011 36,730 845 5,682 98 6,625 2012 32,228 837 6,745 50 7,632 2013 30,771 272 5,220 22 5,514 2014 30,831 1,292 5,235 1,100 7,627

Aircraft Type Operations Percentages Commercial Service 1,292 16.9% Regional Jet 1,030 79.7% Narrow-Body 262 20.3% General Aviation and Air Taxi 5,235 68.6% Single-Engine Piston 181 3.5% Multi-Engine Piston 367 7.0% Turboprop 1,850 35.3% Business Jet 2,137 40.8% Helicopter 700 13.4% Military 1,100 14.4% Fixed Wing 1,000 90.9% Helicopter 100 9.1% Total 7,627 100.0%

Scenario One (Low): Minimal increase in retention ti rate. 1.2% AAGR Scenario Two (Medium): Four percent increase in retention rate. 1.7% AAGR Scenario Three (High): Nine percent increase in retention rate. 2.5% AAGR

60,000 50,000 40,000 30,000 Historical Enplanements 20,000 Jan. 2015 TAF Scenario One 10,000 0 Scenario Two Scenario Three

50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 Jan. 2015 TAF TAF Low Limit TAF High Limit 5,000 Preferred dforecast 0

Aircraft 2014 2019 2024 2029 2034 ERJ145 (50 seats) 339 156 0 0 0 CRJ7 (69 Seats) 177 312 429 442 468 CRJ9 (76 seats) 0 52 117 182 208 A319 (128 seats) 131 130 130 130 130 Departures 646 650 676 754 806 Operations 1,292 1,300 1,352 1,508 1,612 Average Seats/Departure 70.79 76.80 81.56 80.86 80.32 Enplanements 30,831 33,540 36,600 39,900 43,430 BLF 67.4% 67.2% 66.4% 65.4% 67.1%

30,000 25,000 Historical Operations Jan. 2015 TAF 20,000 Scenario One 15,000 Scenario Two 10,000 Scenario Three 5,000 0

8,000 7,000 6,000 5,000 4,000 Jan. 2015 TAF 3,000 TAF Low Limitit 2,000 TAF High Limit 1,000 Preferred Forecast 0

45 40 35 30 25 20 15 10 5 Historical Based Aircraft Jan. 2015 TAF Scenario One Scenario Two Scenario Three 0

Aircraft Type 2014 2019 2024 2029 2034 Commercial Service 1,292 1,300 1,352 1,508 1,612 Regional Jet 1,030 1,040 1,092 1,248 1,352 Narrow Body 262 260 260 260 260 General Aviation 5,235 5,620 6,140 6,710 7,340 Single-Engine Piston 181 195 235 260 300 Multi-Engine Piston 367 390 400 410 415 Turboprop 1,850 1,990 2,180 2,410 2,650 Business Jet 2,137 2,290 2,500 2,735 2,990 Helicopter 700 755 825 895 985 Military 1,100 1,100 1,100 1,100 1,100 Fixed Wing 1,000 1,000 1,000 1,000 1,000 Helicopter 100 100 100 100 100 Total Operations 7,627 8,020 8,592 9,318 10,052

Runway Design Code (RDC) 2014 2019 2024 2029 2034 A-I, A-II, B-I, B-II 3,339 3,633 3,952 4,300 4,678 C-I, C-II 1,793 1,951 2,122 2,309 2,515 D-I, D-II 314 342 372 404 440 A-III, B-III, C-III 329 329 329 329 329 C-IV 81 81 81 81 81 Unknown RDC (including helo, military, etc.) 1,771 1,684 1,736 1,895 2,009 TOTAL 7,627 8,020 8,592 9,318 10,052

Operations 2014 2019 2024 2029 2034 Commercial Service 1,292 1,300 1,352 1,508 1,612 Regional Jet 1,032 1,040 1,092 1,248 1,352 Narrow Body 262 260 260 260 260 General Aviation 5,235 5,620 6,140 6,710 7,340 Single-Engine Piston 181 195 235 260 300 Multi-Engine Piston 367 390 400 410 415 Turboprop 1,850 1,990 2,180 2,410 2,650 Business Jet 2,137 2,290 2,500 2,735 2,990 Helicopter 700 755 825 895 985 Military 1,100 1,100 1,100 1,100 1,100 Fixed Wing 1,000 1,000 1,000 1,000 1,000 Helicopter 100 100 100 100 100 TOTAL OPERATIONS 7,267 8,020 8,592 9,318 10,052 Local Operations 1,373 1,404 1,461 1,537 1,608 Itinerant Operations 6,254 6,616 7,131 7,781 8,444 Passenger Enplanements 30,831 33,540 36,600600 39,900900 43,430430 Based Aircraft by Type 25 27 29 32 35 Single-Engine Piston 20 21 22 23 25 Multi-Engine Piston 4 4 4 4 3 Helicopter 1 1 1 1 1 Turboprop 0 1 1 2 3 Business Jet 0 0 1 2 3

Inventory Topics Physical Facilities FAA Design Standards Airspace & Air Traffic Control Terminal Area - Building, Parking, Roads General Aviation Facilities Runway Protection Zones & Land Uses Pavement Condition Socio-Economic Characteristics & Trends Environmental Conditions Historical Aviation Activity

Inventory Criteria Condition of Physical Facilities Compliance with FAA Design Criteria Operational Capacity vs. Existing Demand Trends in Aviation Activity Regional Factors Impacting Activity Environmental Conditions

Inventory Conclusions Runways & Taxiways Provide Adequate Capacity Runway 6-24 Provides Adequate Length Terminal Building Space & Traffic Flows Are Inefficient: Creates Congestion & Confusion Non-compatible Land Uses South & Northeast Runway Pavement Deteriorating Needs Reconstruction Voluntary night curfew lights out Passenger Enplanements Declined by 44% between 2000-2013

Space Constrained Inefficient Layout Lack of Concessions Need FIDS & Signage

No curbside drop-ff or pick-up p No covered parking No cell phone lot No covered areas for bus loading Parking fees based on honor system

Gunnison Whitewater Park

Web Surveys of Airport Tenants Tenants Said Business Grew in 2014 Tenants Anticipate Growth in 2015 Peak Period = December-March Peak GA Traffic = July 4 th Holiday Tenants Identified Need For Additional Terminal Space GA Hangars Vehicle Parking Better Signage

Focus Group Discussions Airport Master Plan Video Production Ongoing Website Updates Social Media & Display Ads PAC Meeting Community Open House

PAC Comments on Phase I documents submitted by Friday April 10th Phase II Deliverables Facility Requirements Alternatives