Okaloosa County BOCC — April 23, 2015 — Agenda Packet — reading text

2.f.a Packet Pg. 38 Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon))  2.f.a Packet Pg. 39 Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon))  2.f.a Legacy Carrier Targets Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Washington, DC Chicago New York/Newark Miami/Ft. Lauderdale Packet Pg. 40 Page 1 Source: Sixel Consulting Group  2.f.a Low Cost Carrier Targets Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Minneapolis Trenton/Philadelphia Cleveland St. Louis VPS as a Destination Small Communities Packet Pg. 41 Page 2 Source: Sixel Consulting Group  Page 3 Ottawa Toronto Montreal Source: Sixel Consulting Group International Carrier Targets 2.f.a Packet Pg. 42 Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon))  April 23, 2015 Destin-Fort Walton Beach 2.f.a Packet Pg. 43 Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Airport  2.f.a Since Deregulation, Only Four Carriers Now Dominate Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) The Big Four Have 91% of US Seats They Can Focus on Yield (Driving High Fares) Instead of Market Share 1978 2000 Today Packet Pg. 44 Source: Sixel Consulting Group  2.f.a VPS Continues to Grow Service (With Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Existing Carriers) All Three Carriers Add Seats This Summer United Met at HQ in January Added Larger Planes, More Flights 16% More Seats Delta Met at Conference in November Additional ATL Flight; 5.5% More Seats American Met at Conference in November DCA Coming Back; 4.8% More Seats Jun-14 Jun-15 Non-Stop Departures Seats Departures Seats Capacity Carrier Destination Per Day Per Day Per Day Per Day Change American CLT 3.4 183 3.9 195 6.2% DCA 0.2 12 0.2 12 0.0% DFW 6.9 338 7 353 4.2% American Total 10.5 533 11.1 560 4.8% Delta ATL 6 734 7.1 777 5.5% Delta Total 6 734 7.1 777 5.5% United IAH 3.7 185 4 220 15.9% United Total 3.7 185 4 220 15.9% VPS Total 20.2 1452 22.2 1557 6.7% Packet Pg. 45 Source: Sixel Consulting Group; Airline Schedules  2.f.a VPS Growth Outpaces Others Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Change in Passengers on the Gulf Coast January 2014 vs. January 2015 10.0% 8.0% 6.0% 8.9% 4.0% 2.0% 4.0% 4.0% 0.0% -0.4% -2.0% VPS ECP PNS MOB VPS was the Second Busiest Airport in the Region in January 2015 Packet Pg. 46 Source: Sixel Consulting Group; Airline Schedules  2.f.a VPS Continually Pursues Service Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Will Meet, in Person, with Many Carriers This Year Meet at Headquarters, Conferences Host in Market, When Appropriate Meetings in the Last 12 Months: Packet Pg. 47 Source: Sixel Consulting Group  2.f.a Other Airports Have Advantages Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) ECP/Panama City St. Joseph Corp: $26 Million Incentive $1.8 Million Tax Money for JetBlue No Land Lease Payments PNS/Pensacola $10 Million Southwest Incentive Tax Funding Available from City No Land Lease Payments Packet Pg. 48 Source: Sixel Consulting Group Research  2.f.a VPS Must Compete Regionally Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Nearby Airports Offer Aggressive Incentives ECP: Tens of Millions Available (Private) and Bed Tax (Bay AND Walton Co) PNS: City Funding Available VPS Has Additional Cost Burdens Land Lease for Terminal One of Very Few Land Lease Airports in the US Landing Fee Paid to Eglin Not Competitive with Neighbors $400,000 per Year in Lost Revenue VPS Must Develop Incentive Sources Packet Pg. 49 Source: Sixel Consulting Group  2.f.a VPS Current Incentives Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) New Carrier to the Market Terminal Rent Waived for One Year Landing Fees Waived for One Year Free Ground Handling Check-in Desk Baggage Loading Gate Staffing/Boarding $85,000 for Marketing New Destination New Route Terminal Rent Waived for One Year Landing Fees Waived for One Year $85,000 for Marketing New Destination FAA Does Not Allow Airports to: Provide Their Own Revenue Guarantees Provide Subsidies Incentivize for More Than Two Years Packet Pg. 50 Source: Sixel Consulting Group  2.f.a Legacy Carrier Targets Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Washington, DC Chicago New York/Newark Miami/Ft. Lauderdale Packet Pg. 51 Source: Sixel Consulting Group  2.f.a Low Cost Carrier Targets Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon)) Minneapolis Trenton/Philadelphia Cleveland St. Louis VPS as a Destination Small Communities Packet Pg. 52 Source: Sixel Consulting Group  Ottawa Toronto Montreal Source: Sixel Consulting Group International Carrier Targets 2.f.a Packet Pg. 53 Attachment: II. f. Airport Funding Request (4120 : Destin-Fort Walton Beach Airport FY16 Budget Request (Sunil Harmon))  2.f.a Incentive Options Attachment: II. f. Airport