O N T
Agenda 1. Reduce Airline Cost 2. Develop Airport Related Businesses 3. Provide Customer Friendly Facilities and Services 4. Expand Air Service
Agenda 1. Reduce Airline Cost
Reduce Airline Cost
Reduce Airline Cost
Agenda 2. Develop Airport Related Businesses
Building a Plan
Building a Plan
Building a Plan
Building a Plan
Building a Plan
Agenda 3. Provide Customer Friendly Facilities and Services
Provide Customer Friendly Facilities and Services
Agenda 4. Expand Air Service
Ontario is the Most Convenient Airport For a Large Part of the Los Angeles Region
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.
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.) 15.0 12.5 121% Household Income (bil. $) $388.1 $341.1 114% = 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
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.
Ontario International Airport has been Grossly Underserved
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, 2016. GDL MEX DFW IAH Southwest American Alaska United Delta Volaris Airline Aeromexico Total # of Destinations 8* 2 2 3 1 1 1 15* Weekly Flights 210 66 40 82 20 5 3 426 * Includes multiple carriers to DEN, GDL and PHX. Weekly Seats 30,926 9,123 4,656 4,588 1,675 895 470 52,333 Seat Share 59% 17% 9% 9% 3% 2% 1%
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 2004-2006 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.
-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 2004-2006 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.
Ontario s MSA Population Alone Would Rank it as the 15 th Largest Metro Area in the U.S. 2014 Rank Metro Area Population Source: U.S. Census Bureau, 2014. 1 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 6,686,594 10 Miami-Fort Lauderdale-Port St. Lucie, FL CSA 6,561,971 11 Atlanta--Athens-Clarke County--Sandy Springs, GA CSA 6,254,633 12 Detroit-Warren-Ann Arbor, MI CSA 5,315,251 13 Seattle-Tacoma, WA CSA 4,526,991 14 Phoenix-Mesa-Scottsdale, AZ Metro Area 4,489,109 15 Ontario-Riverside-San Bernardino, CA Metro Area 4,441,890 16 Minneapolis-St. Paul, MN-WI CSA 3,835,050 17 Cleveland-Akron-Canton, OH CSA 3,497,851 18 Denver-Aurora, CO CSA 3,345,261 19 San Diego-Carlsbad, CA Metro Area 3,263,431 20 Portland-Vancouver-Salem, OR-WA CSA 3,058,958 21 Orlando-Deltona-Daytona Beach, FL CSA 3,045,707 22 Tampa-St. Petersburg-Clearwater, FL Metro Area 2,915,582 23 St. Louis-St. Charles-Farmington, MO-IL CSA 2,910,387 24 Pittsburgh-New Castle-Weirton, PA-OH-WV CSA 2,657,912 25 Charlotte-Concord, NC-SC CSA 2,537,990 26 Sacramento-Roseville, CA CSA 2,513,103 27 Salt Lake City-Provo-Orem, UT CSA 2,424,103 28 Kansas City-Overland Park-Kansas City, MO-KS CSA 2,409,939 29 Columbus-Marion-Zanesville, OH CSA 2,398,297 30 Indianapolis-Carmel-Muncie, IN CSA 2,354,902
Ontario has by Far the Largest Population per Domestic Flight Among the 20 Largest Metro Areas Population Per Domestic Flight 120 100 80 60 40 20 0 110 30 28 27 23 21 20 19 19 17 16 15 14 14 12 11 11 10 8 7 Source: Census Bureau, U.S. DOT T-100 Report, YE December 2015. MSA/CSA
Ontario has by Far the Largest Population per Domestic Seat Among the 20 Largest Metro Areas Population Per Domestic Seat 1.0 0.90 0.9 0.8 0.7 0.6 0.5 0.4 0.30 0.3 0.24 0.22 0.21 0.20 0.16 0.2 0.15 0.14 0.13 0.13 0.13 0.12 0.11 0.10 0.10 0.09 0.09 0.06 0.1 0.06 0.0 Source: Census Bureau, U.S. DOT T-100 Report, YE December 2015. MSA/CSA
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 1,000,000 500,000 1,222,178 1,938,203 SNA SAN BUR LGB LAX 0 Source: Adjusted ARC ticketing data. Using ONT Not Using ONT
ONT has Significant Growth Potential in the Region While the Other Airports Do Not
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 2019 1/ 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
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.
Ontario Can Easily Support a Return Back to 2000-2007 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% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 ONT Share of Region ONT Passengers (millions) 10 8 6 4 2 0 Source: Airport statistics.
Largest Ontario Markets Without Nonstop Service Passengers Daily Each Way 140 120 100 120 96 80 60 65 59 54 51 49 48 47 46 46 44 43 42 42 40 20 0 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.
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.
If ONT Captured 8.9% of the Regions O&D Passengers, ONT s Top Unserved Markets are Much Larger Passengers Daily Each Way 700 600 500 400 596 Currently Use ONT Recapture from Other LA Area Airports if ONT had nonstop service 300 244 200 100 173 160 157 138 101 99 90 86 86 62 59 56 54 0 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.
Ontario International Airport 26 domestic gates and 2 international gates Current facility supports 10 million annual passengers Equipped to handle any aircraft Customs facility
Ontario International Airport No slot restrictions No curfews, 24/7 operation Two runways (10,200ft and 12,200ft) All-weather operational
Why Go Anywhere Else???