Airline Market Shares of Enplaned Passengers. Scheduled Average Daily Aircraft Departures by Airline. Average Domestic One-Way Airline Fares

December 31, 2009 Mr. Mark Brewer Airport Director Manchester-Boston Regional Airport One Airport Road, Suite 300 Manchester, New Hampshire 03103 Re: Continuing Disclosure Certificate Dear Mr. Brewer: Jacobs Consultancy (JC) was asked by the Department of Aviation (the Airport) of the City of Manchester, New Hampshire (the City) to update certain tables from the June 23, 2005 Report of the Airport Consultant on the proposed issuance of City of Manchester, New Hampshire, General Airport Revenue Bonds, Series 2005 (the 2005 Feasibility Study), per the Airport s continuing disclosure requirements. On behalf of the Airport and the City, JC has updated the following tables from the 2005 Feasibility Study: Table 5 Table 6 Table 7 Table 10 Table 12 Table 14 Table 15 Table 16 Table 17 Airlines Serving the Airport Historical Enplaned Passengers Airline Market Shares of Enplaned Passengers Scheduled Average Daily Aircraft Departures by Airline Average Domestic One-Way Airline Fares Historical Air Cargo Historical Landed Weight Airline Shares of Landed Weight Historical, Estimated, and Forecast Enplaned Passengers Table 23 Revenues - FY 2003 and FY 2004 Table 24 Principal Nonairline Terminal Building Revenue - FY 2003 and FY 2004

2 Mr. Mark Brewer December 31, 2009 Where applicable, information that appeared for the first three quarters of FY 2005 in the 2005 Feasibility Study has been updated to reflect the entirety of FY 2009 and tables that compared revenues or aviation activity in FY 2003 to FY 2004 have been updated to compare FY 2008 to FY 2009. These tables are provided in Attachment A to this letter. In addition, JC has provided information that appears on the Summary of Debt Service Coverage Ratios table that appeared in the Official Statement for the City of Manchester, New Hampshire, General Airport Revenue Bonds, Series 2005 as Attachment B to this letter. This information was updated in a manner consistent with the methodology used in the 2005 Feasibility Study, using information provided in Manchester-Boston Regional Airport records and applicable on-line databases. Sincerely, NRR/sq Enclosure Nora R. Richardson Associate Director

A-1 Table 5 AIRLINES SERVING THE AIRPORT June 2009 Major/national Regional/commuter All-cargo Northwest Airlines (a) Air Canada (b) Air Now Southwest Airlines Continental Express FedEx United Airlines Delta Connection (c) United Parcel Service US Airways Northwest Airlink (a,d) Wiggins Airways (g) United Express (e) US Airways Express (f) Wiggins Airways (g) (a) Merged with Delta Air Lines on October 29, 2008. Recorded separately throughout FY 2009. (b) Operated by Air Georgian. (c) Operated by Atlantic Southeast Airlines. (d) Operated by Mesaba Airlines and Pinnacle Airlines. (e) Operated by Mesa Airlines and Trans States Airlines. (f) Operated by Air Wisconsin, Colgan Air, and Republic Airlines. (g) Wiggins Airways offers both charter passenger and all-cargo airline service. Source: Manchester-Boston Regional Airport records and Official Airline Guides Inc., on-line database, November 2009.

A-2 Fiscal Year Major airlines Table 6 HISTORICAL ENPLANED PASSENGERS Regional/commuter/ other airlines Total Annual percent increase 1991 282,077 82,925 365,002 --% 1992 283,648 103,049 386,697 5.9 1993 264,205 152,579 416,784 7.8 1994 260,305 167,352 427,657 2.6 1995 322,017 141,506 463,523 8.4 1996 303,343 175,259 478,602 3.3 1997 336,107 184,460 520,567 8.8 1998 423,866 206,943 630,809 21.2 1999 1,077,073 218,671 1,295,744 105.4 2000 1,281,698 235,321 1,517,019 17.1 2001 1,421,640 205,708 1,627,348 7.3 2002 1,450,532 191,776 1,642,308 0.9 2003 1,462,473 252,144 1,714,617 4.4 2004 1,543,179 352,229 1,895,408 10.5 2005 1,767,701 351,008 2,118,709 11.8 2006 1,662,282 421,541 2,083,823 (1.6) 2007 1,404,172 504,855 1,909,027 (8.4) 2008 1,477,766 501,306 1,979,072 3.7 2009 1,286,977 432,120 1,719,097 (13.1) Average annual growth 1991-1997 3.0% 14.3% 6.1% 1997-2009 11.8 7.4 10.5 1991-2009 8.8 9.6 9.0 Note: For Fiscal Years ended June 30. Source: Manchester-Boston Regional Airport records.

A-3 Table 7 AIRLINE MARKET SHARES OF ENPLANED PASSENGERS Enplaned passengers FY 2007 FY 2008 FY 2009 Share of Enplaned Share of Enplaned total passengers total passengers Share of total Major/national airlines Southwest Airlines 993,301 52.0% 1,121,235 56.7% 1,008,780 58.7% US Airways 145,441 7.6 145,596 7.4 111,868 6.5 United Airlines 111,717 5.9 99,890 5.0 86,324 5.0 Northwest Airlines 145,121 7.6 110,268 5.6 80,005 4.7 Continental Airlines 8,462 0.4 -- -- -- -- Delta Air Lines 130 0.0 777 0.0 -- -- Subtotal 1,404,172 73.6% 1,477,766 74.7% 1,286,977 74.9% Regional/commuter/ charter airlines US Airways Express (a) 176,305 9.2% 183,844 9.3% 182,288 10.6% Continental Express (b) 98,967 5.2 106,138 5.4 103,955 6.0 United Express (c) 73,265 3.8 68,440 3.5 60,919 3.5 Delta Connection (d) 142,768 7.5 115,279 5.8 40,953 2.4 Northwest Airlink (e) 3,701 0.2 17,839 0.9 37,643 2.2 Air Canada (f) 8,851 0.5 8,235 0.4 5,452 0.3 Subtotal 503,857 26.4% 499,775 25.3% 431,210 25.1% Other airlines 998 0.0 1,531 0.0 910 0.0 Total 1,909,027 100.0% 1,979,072 100.0% 1,719,097 100.0% Airline Group Southwest Airlines 993,301 52.0% 1,121,235 56.7% 1,008,780 58.7% US Airways 321,746 16.9 329,440 16.6 294,156 17.1 United Airlines 184,982 9.7 168,330 8.5 147,243 8.6 Northwest Airlines 148,822 7.8 128,107 6.5 117,648 6.8 Continental Airlines 107,429 5.6 106,138 5.4 103,955 6.0 Delta Air Lines 142,898 7.5 116,056 5.9 40,953 2.4 Air Canada 8,851 0.5 8,235 0.4 5,452 0.3 Other 998 0.1 1,531 0.1 910 0.1 Total 1,909,027 100.0% 1,979,072 100.0% 1,719,097 100.0% (a) Operated by Chautauqua Airlines through FY 2008, and by Air Wisconsin, Colgan Airlines, Mesa Airlines, Piedmont Airlines, Pacific Southwest Airlines (PSA) and Republic Airways throughout. (b) Operated by ExpressJet through FY 2007 and by Continental Express from FY 2008 onwards. (c) Operated by Go Jet through FY 2007, Mesa Airlines throughout and Trans States Airlines from FY 2008 onwards. (d) Operated by Atlantic Southeast Airlines and Comair throughout, and Freedom Airlines through FY 2008 (e) Operated by Compass Airlines and Mesaba Aviation from FY 2008 onwards, and by Pinnacle Airlines throughout. (f) Operated by Air Georgian throughout. Source: Manchester-Boston Regional Airport records.

A-4 Table 10 SCHEDULED AVERAGE DAILY AIRCRAFT DEPARTURES BY AIRLINE Manchester Boston-Regional Airport June 1998-2009 Increase June (decrease) 1998 2004 2005 2006 2007 2008 2009 1998-2009 Major/national airlines Southwest Airlines 10 22 30 28 30 29 26 16 Northwest Airlines 3 5 5 5 5 3 2 (1) US Airways 10 9 12 5 4 4 2 (8) United Airlines 4 4 4 3 4 3 2 (2) Delta Air Lines (a) -- 4 4 -- -- -- -- -- Continental Airlines 1 1 1 1 -- -- -- (1) MetroJet (b) 3 -- -- -- -- -- -- (3) 31 45 56 42 43 39 32 1 Regional/commuter airlines US Airways Express (c) 6 12 12 14 15 14 13 7 Continental Express (d) -- 7 7 7 8 8 8 8 United Express (e) 3 6 5 4 4 4 4 1 Northwest Airlink (f) -- 1 1 -- -- 2 3 3 Air Canada (g) -- 3 3 3 3 2 2 2 Delta Connection (h) 4 6 5 7 10 4 1 (3) Business Express (i) 8 -- -- -- -- -- -- (8) Continental Connection (j) -- 3 1 -- -- -- -- -- Independence Air (k) -- -- 4 -- -- -- -- -- 21 38 38 35 40 34 31 10 Airport total 52 83 94 77 83 73 63 11 (a) Initiated service in September 2000. (b) Ceased operations on December 1, 2001. (c) Operated by Air Wisconsin, Allegheny Airlines, Chautauqua Airlines, Colgan Air, Midway Air, Mesa Airlines, Trans States Airlines, Piedmont Air, PSA and Republic Airlines. (d) Operated by Express Jet and Continental Express. (e) Operated by Atlantic Coast Airlines, Air Wisconsin Airlines, Chautauqua Airlines, GoJet Airlines, Mesa Airlines and Trans States Airlines. (f) Operated by Compass Airlines, Mesaba Airlines and Pinnacle Airlines. (g) Operated by Air Alliance, Air Canada Jazz, and Air Georgian Airlines, and began service in August 2000. (h) Operated by Atlantic Southeast Airlines, Comair and Freedom Airlines. (i) Business Express operated under a code-share agreement with Delta Air Lines. (j) Operated by Commutair. (k) Initiated service in July 2004, ceased operations in January 2006. Source: Official Airline Guides, Inc., on-line database, November 2009.

A-5 Table 12 AVERAGE DOMESTIC ONE-WAY AIRLINE FARES FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 Manchester-Boston Regional Airport Continental Airlines $149 $161 $183 $176 $182 $174 $164 $172 Delta Air Lines 157 146 153 150 161 188 176 173 Northwest Airlines 160 171 179 171 175 184 193 176 Southwest Airlines (a) 89 101 102 93 102 114 121 129 United Airlines 180 187 181 175 189 194 188 176 US Airways/MetroJet (b) 135 150 148 113 135 158 167 168 Commuter/other 122 175 172 156 175 188 193 183 Manchester-Boston Regional Airport average $129 $139 $139 $125 $135 $145 $148 $149 T. F. Green Airport, Providence $126 $138 $139 $124 $136 $147 $155 $153 Percent difference from MHT (2.3%) (0.7%) 0.0% (0.8%) 0.7% 1.1% 4.3% 2.7% Boston-Logan International Airport $160 $167 $162 $148 $164 $171 $188 $180 Percent difference from MHT 24.0% 20.1% 16.5% 18.4% 17.7% 14.8% 21.3% 17.1% Note: Data were collected for Fiscal Years ended June 30. (a) Southwest had a code-share agreement with American Trans Air (TZ) prior to that carrier s bankruptcy in April 2008; it's published fares from Manchester are averaged into Southwest's. (b) US Airways began its MetroJet service at the Airport in June 1998 and ceased MetroJet operations on December 1, 2001. Fares published under American West (HP) are averaged into US Airways. Source: U.S. Department of Transportation, Origin-Destination Survey of Airline Passenger Traffic, Domestic, on-line database, November 2009.

A-6 Table 14 HISTORICAL AIR CARGO Calendar year Cargo (short tons) (a) Annual percent increase (decrease) 1991 25,934 --% 1992 40,148 54.8 1993 44,693 11.3 1994 50,837 13.7 1995 54,301 6.8 1996 58,939 8.5 1997 61,501 4.3 1998 66,964 8.9 1999 79,913 19.3 2000 83,469 4.5 2001 83,260 (0.3) 2002 90,671 8.9 2003 80,547 (11.2) 2004 81,042 0.6 2005 77,820 (4.1) 2006 88,191 13.3 2007 96,744 9.7 2008 89,078 (7.9) Notes: Does not include air mail. (a) A short ton comprises 2,000 pounds. Source: Manchester-Boston Regional Airport records.

A-7 Table 15 HISTORICAL LANDED WEIGHT Fiscal Year 1,000-pound units Passenger Cargo airlines airlines Total Annual percent increase (decrease) 1993 744,127 318,954 1,063,081 --% 1994 773,409 283,352 1,056,761 (0.6) 1995 766,205 308,573 1,074,778 1.7 1996 769,754 361,807 1,131,561 5.3 1997 811,180 361,560 1,172,740 3.6 1998 1,012,699 424,472 1,437,171 22.5 1999 1,731,904 445,532 2,177,436 51.5 2000 1,898,166 500,091 2,398,257 10.1 2001 2,084,246 483,628 2,567,874 7.1 2002 2,181,719 571,600 2,753,318 7.2 2003 2,326,129 527,636 2,853,765 3.6 2004 2,552,725 537,618 3,090,343 8.3 2005 3,003,913 535,307 3,539,220 14.5 2006 2,634,064 551,723 3,185,786 (10.0) 2007 2,411,972 550,225 2,962,196 (7.0) 2008 2,357,158 558,472 2,915,630 (1.6) 2009 2,060,696 502,970 2,563,666 (12.1) Average annual growth 1993-1998 6.4% 5.9% 6.2% 1993-2009 6.6 2.9 5.7 1999-2009 1.8 1.2 1.6 Note: Data were collected for Fiscal Years ended June 30. Source: Manchester-Boston Regional Airport records.

A-8 Table 16 AIRLINE SHARES OF LANDED WEIGHT Manchester Boston-Regional Airport 1,000-lb units FY 2007 FY 2008 FY 2009 Share 1,000-lb Share 1,000-lb (percent) units (percent) units Share (percent) PASSENGER AIRLINES Major/national Southwest Airlines 1,243,580 42.0% 1,340,156 46.0% 1,225,392 47.8% US Airways 184,903 6.2 171,233 5.9 122,067 4.8 United Airlines 139,615 4.7 116,294 4.0 108,646 4.2 Northwest Airlines 198,890 6.7 137,169 4.7 92,486 3.6 Continental Airlines 13,906 0.5 110 0.0 110 0.0 Delta Air Lines 130 0.0 780 0.0 -- 0.0 1,781,024 60.1% 1,765,742 60.6% 1,548,702 60.4% Regional/commuter US Airways Express (a) 251,804 8.5% 235,638 8.1% 230,736 9.0% Continental Express (b) 104,280 3.5 108,987 3.7 110,851 4.3 United Express (c) 80,816 2.7 79,936 2.7 69,763 2.7 Northwest Airlink (d) 4,512 0.2 21,954 0.8 43,849 1.7 Delta Connection (e) 171,466 5.8 130,860 4.5 43,688 1.7 Air Canada (f) 14,463 0.5 14,040 0.5 13,107 0.5 Charter/other 3,607 0.1 -- -- -- -- 630,948 21.3% 591,416 20.3% 511,994 20.0% Total passenger airlines 2,411,972 81.4% 2,357,158 80.8% 2,060,696 80.4% CARGO AIRLINES FedEx 263,895 8.9% 259,132 8.9% 240,341 9.4% United Parcel Service 207,754 7.0 216,830 7.4 207,855 8.1 Wiggins Airways 26,689 0.9 34,946 1.2 34,213 1.3 DHL Airways, Inc.(g) 42,313 1.4 42,183 1.4 15,898 0.6 Air Now 9,574 0.3 5,381 0.2 4,663 0.2 550,225 18.6% 558,472 19.2% 502,970 19.6% Total 2,962,196 100.0% 2,915,630 100.0% 2,563,666 100.0% (a) Operated by Chautauqua Airlines through FY 2008, and by Air Wisconsin, Colgan Airlines, Mesa Airlines, Piedmont Airlines, Pacific Southwest Airlines (PSA) and Republic Airways throughout. (b) Operated by ExpressJet through FY 2007 and by Continental Express from FY 2008 onwards. (c) Operated by Go Jet through FY 2007, Mesa Airlines throughout and Trans States Airlines from FY 2008 onwards. (d) Operated by Compass Airlines and Mesaba Aviation from FY 2008 onwards, and by Pinnacle Airlines throughout. (e) Operated by Atlantic Southeast Airlines and Comair throughout, and Freedom Airlines through FY 2008. (f) Operated by Air Georgian throughout. (g) Operated by ABX Air and ASTAR Air Cargo. DHL exited the US market in January, 2009. Source: Manchester-Boston Regional Airport records.

A-9 Table 17 HISTORICAL, ESTIMATED, AND FORECAST ENPLANED PASSENGERS The forecasts presented in this table were prepared using the information and assumptions described in the accompanying text. Inevitably, some of the assumptions used to develop the forecasts will not be realized and unanticipated events and circumstances may occur. Therefore, there are likely to be differences between the forecast and actual results, and those differences may be material. Fiscal Year Major airlines Regional/ commuter/ other airlines Total Annual percent increase Historical 2002 1,450,532 191,776 1,642,308 0.9% 2003 1,462,473 252,144 1,714,617 4.4 2004 1,543,179 352,229 1,895,408 10.5 2005 1,767,701 351,008 2,118,709 11.8 2006 1,662,282 421,541 2,083,823 (1.6) 2007 1,404,172 504,855 1,909,027 (8.4) 2008 1,477,766 501,306 1,979,072 3.7 2009 1,286,977 432,120 1,719,097 (13.1) Forecast (a) 2010 1,966,000 528,000 2,494,000 n.a. 2011 2,024,000 547,000 2,571,000 3.1 Average annual growth 2009-2011 25.4% 12.5% 22.3% Note: For Fiscal Years ended June 30. (a) Forecasts have not been updated for the continuing disclosure documents. Sources: Historical: Manchester-Boston Regional Airport records. Forecast: Jacobs Consultancy, May 2005.

A-10 Table 23 REVENUES FY 2008 AND FY 2009 Sources of Revenues FY 2008 Percent of total FY 2009 Percent of total Percent increase (decrease) Airline revenue Landing Fees $ 5,824,210 11.7% $ 5,118,427 11.4% (12.1)% Apron Fees 429,401 0.9 421,868 0.9 (1.8) Terminal Building Rentals 6,632,834 13.3 6,751,342 15.1 1.8 Total airline revenue $12,886,445 25.9% $12,291,637 27.5% (4.6)% Nonairline revenue Airfield 455,205 0.9% 394,850 0.9% (13.3)% Terminal Building (a) 9,087,912 18.2 8,745,807 19.6 (3.8) Parking 24,345,294 48.9 20,839,734 46.6 (14.4) Other Buildings and Areas 852,355 1.7 840,660 1.9 (1.4) Other revenues 2,196,799 4.4 1,619,870 3.6 (26.3) Total nonairline revenue $36,937,565 74.1% $32,440,921 72.5% (12.2)% Total Revenues $49,824,010 100.0% $44,732,558 100.0% (10.2)% Note: Revenues as defined in the Bond Resolution do not include PFC Revenues. (a) Includes revenues from terminal concessions, space rentals, advertising, car rentals, and customer facility charges. Source: Manchester-Boston Regional Airport records.

A-11 Table 24 PRINCIPAL NONAIRLINE TERMINAL BUILDING REVENUE FY 2008 AND FY 2009 Revenue FY 2008 FY 2009 Revenue per Revenue per enplaned Percent enplaned passenger of total Revenue passenger Percent of total Food and beverage $ 939,255 $0.47 10.3% $ 799,058 $0.46 9.1% News and gifts 427,357 0.22 4.7 376,282 0.22 4.3 Advertising 435,860 0.22 4.8 346,142 0.20 4.0 Rental cars (a) 7,050,581 3.56 77.6 7,045,773 4.10 80.6 Other (b) 234,859 0.12 2.6 178,553 0.10 2.0 Total $9,087,912 $4.59 100.0% $8,745,807 $5.09 100.0% (a) Includes rentals for ready/return spaces and terminal space, and customer facility charge revenue. (b) Includes revenues from telephones, vending machines, internet access fees and nonairline space rentals. Source: Manchester-Boston Regional Airport records.

Attachment B COMPLIANCE WITH RATE COVENANT AND COVERAGE REQUIREMENT City of Manchester, Department of Aviation FY 2009 Revenues (a) $ 44,691,408 Transfer from Revenue Credit Account from FY 2008 (b) 3,987,000 Less: Operation and Maintenance Expenses (a) 27,790,716 Net Revenues $ 20,887,692 Less: Prior Bonds Debt Service - Revenues Available for Bond Debt Service [A] $ 20,887,692 Coverage Amount from FY 2008 (b) 3,037,745 Revenues Available for Bond Debt Service plus Coverage Amount [B] $ 23,925,437 Required Debt Service Fund deposits $ 13,099,686 Required Debt Service Reserve Fund deposits (c) Debt Service Reserve Fund $ - Subordinate Debt Service Fund - Subordinate Debt Service Reserve Fund - Operation and Maintenance Reserve Fund 609,400 Renewal and Replacement Reserve Fund - Variable rate bond fees 308,662 Required Debt Service Reserve Fund deposits $ 918,062 Total required deposits [C] $ 14,017,748 Test 1 Revenues Available for Bond Debt Service [A] $ 20,887,692 Total required deposits [C] $ 14,017,748 Test 2 Revenues Available for Bond Debt Service plus Coverage Amount [B] $ 23,925,437 Required Debt Service Fund Deposits [C] $ 13,099,686 Revenue bond Debt Service coverage [B/C] 1.83 Rate Covenant Debt Service Coverage Requirement 1.25 (a) Source: City of Manchester, Department of Aviation, internal financial records for fiscal year ending June 30, 2009. (b) Calculated by Jacobs Consultancy, the Airport Consultant for the Department of Aviation, based on the methodology established in the Airline Operating Agreement and Terminal Building Lease. (c) Based on draft audited financial statements.