Airport Consultative Committee Meeting Report from the President and - PowerPoint PPT Presentation

Airport Consultative Committee Meeting Report from the President and CEO October 23, 2018

Strategic Goals Strategic Goals Be a Leader in Attract and Environmental Maintain Air Protection Service Operate in a Provide Financially Exceptional Responsible Airport Facilities Manner Retain and Provide a Safe Attract Talented and Secure and Motivated Airport Employees

Notable Achievements • Airports Council International: Best Regional Airport in North America • CNN Travel - World’s Ten Most-Loved Airports • BC Aviation Council: Silver Wings Environmental Award • EcoStar Award Winner • 3 rd airport in North America to achieve Airport Carbon Accreditation • Most Financially Efficient Airport in Canada • GVCC Business Awards: ‘Business of the Year’ • SPCC Crystal Awards: ‘Business Excellence’ • Excellence Canada: Healthy Workplace • Passenger Traffic up 25%

Airport Service Quality 2017 Results YYJ Ranked First Overall of 15 Canadian Airports

From: Terry Sent: August-24-18 11:39 AM To: Geoff Dickson Subject: Assistance for my son Chris My son, who is handicapped, flew to Victoria from Kelowna arriving Wednesday around 11am. We drove from Parkville to pick him up and were caught in that unfortunate accident on the Malahat. We drove to the ferry at Mill bay but would have had to wait for hours to cross. Unable to contact Westjet, I called your office and spoke to Erin who immediately said she would either find Chris herself or have someone else meet him. She arranged to get him a taxi to Brentwood bay and he met us as a foot passenger. We are so appreciative of Erin's help.

World Rowing Coastal Championships

Cops For Cancer Tour de Rock Fundraising

Albert Head Cadet Graduation

BC Aviation Council Silver Wings 2018 Environmental Award

Reay Creek Detention Pond

2017 Baseline Community Noise Survey Purpose: To compare 2017 and 1999 baseline noise levels, document aircraft noise exposure levels and overall community noise exposure levels. Methodology : 12 locations monitored for a 24 hour period between August 19 - 24, 2017 Locations: Repeated monitoring at 6 of 7* sites from 1999 * The original 1999 measurement location in Arbutus Ridge could not be found; therefore, an alternative location was chosen.  Added an additional 5 sites in order to have a baseline moving forward

2017 Baseline Community Noise Survey New Noise Monitor New Location for 1999 Monitor Same Location as 1999 Monitor

2017 Baseline Community Noise Survey Conclusions In general, community aircraft noise exposures were found to decrease relative to the 1999 survey results. Site # Location 1999 Ldn 2017 Ldn Increase (dBA) (dBA) (dBA) 3 Iroquois Park 66 65 -1 5 Glenelg Ave <50 50 N/A 6 Carmanah Terrace 49 48 -1 8 Rathdown Park 57 52 -5 9 John Road 57 50 -7 11 Tapping Road <55 54 N/A Ldn = Day-Night Equivalent Sound Level – the average noise level over a 24-hour period dBA = A-weighted decibels – the relative loudness of sounds in air as perceived by the human ear

Air Access is a Key Component of Economic Growth 15 Non-Stop Destinations 7,100 Seats Per Day

YYJ Economic Impact Employment Wages GDP Output Impact ($ millions) ($ millions) ($ millions) Jobs FTEs Direct 2,800 2,500 $170 $230 $540 Indirect 1,100 1,000 $60 $100 $200 Induced 800 700 $40 $90 $140 4,700 4,200 $270 $420 $880 Total FTEs = Full Time Employees Induced = Direct and indirect employees spending in the economy

Canadian Airport Traffic 1988 - 2016 Canada Air Passenger Traffic Enplaned/Deplaned 160 140 120 Passengers (Millions) 100 80 60 40 20 - 1988 1993 1999 2004 2009 2014 Domestic Transborder International

YYJ Demand Annual Passengers 3,500,000 3,309,236 3,250,000 3,000,000 2,678,274 2,750,000 2,500,000 2,359,049 2,250,000 2017 annual passengers 1,934,842 2,000,000 1,750,000 1,500,000 1,250,000 1,000,000 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Master plan 3% 5% Actual

Real Average Fares Indexed to 2016 Average Fare for Major Carriers $400 $350 $300 Average Fares $250 $200 $150 $100 $50 $- 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016p Source: Statistics Canada Average Fare data, Cat. 51 -004-X p = preliminary Major Air Carriers include Air Canada (mainline, AC Jazz & AC rouge beginning July 2013), WestJet, and Air Transat

Domestic Turnaround Fees for Q400 By Airport $1,600 $1,400 $1,200 $1,000 $800 $600 $382 $400 $200 $0

United Airlines Ending San Francisco Service Photo Credit: Maiden Voyage Travel

Financial Approach • Maintain strong balance sheet • Keep airline operating costs in lowest quartile • Diversify revenue sources • Non-aviation as a percentage of total (67%) • Prudent staged capital investment • Focus on the customer and quality

Scheduled Seat Capacity - Domestic Domestic Canada Scheduled Non-Stop Seats Annual Turboprop + Regional Jet Percentages 49% 30% 37% 41% 48% 70 60 Annual Seat Capacity (millions) 50 Widebody 40 Narrowbody Regional Jet 30 Turboprop 20 10 0 1998 2004 2008 2013 2017 Source: Official Airline Guide Schedule Data, full year data for 1998; Diio Mi Schedule Data, full year data for 2004, 2008, 2013, 2017.

Passengers Per Aircraft Canada: 1980 - 2016 80 Average Passengers per Aircraft 70 60 50 Passengers 40 30 20 10 0 1980 1985 1990 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: InterVISTAS Calculations with data from: Aviation in Canada (1980-1990) and Table 401-0009, Statistics Canada and Air Carrier Traffic at Canadian Airports, Statistics Canada

WestJet Fleet Expansion Has Been Focused on Encore • In recent years, unit fleet growth has been driven by Encore expansion: this continues in 2018 but is now ending Committed Fleet to YE 2018 737 Fleet Evolution (number of aircraft) (number of aircraft) 4 4 4 41 45 34 26 24 9 6 15 8 4 11 44 115 114 113 111 114 115 105 107 109 107 105 100 74 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 2023 737 Q400 767 737 NG 737 MAX Lease Options Source: WestJet annual reporting, investor presentations.

Air Canada Regional Shift to Higher Capacity Aircraft • Beginning to retire Dash 8-100 and CRJ100/200 aircraft Replacing with larger Q400 (76 seats) and CRJ705 (76 seats) • In pursuing new and expanded regional service from Air Canada, airports will need to focus on opportunities that can support the 70+ seat capacity threshold Air Canada Regional Fleet 2012-18 150 50 seats or less: –39% Fleet Count 100 greater than 50 seats: +417% 50 - 2012 2015 2016 2017 2018 Note: Median fleet count taken for years where AC gave it a range. Source: Air Canada investor Presentation (02Jun2015), updated for 2015/16 actual data.

New Airlines are Entering the Market Ultra Low Cost Carrier (ULCC) model proposed in order to generate incremental demand Currently Operating Started June 2018 PursuingFinancing New ManagementTeam Separate from WestJet Targeting 40% CheaperFares

Q400

Lower Hold Room Expansion

Lower Hold Room Expansion

Lower Hold Room Expansion

Roadworks

Parking Expansion

Parking – Long Term

Improved Public Transit • Currently 32 departures to and from YYJ and the McTavish Transit Exchange • Ten additional BC Transit bus frequencies starting September 2018 • Improvements to routes 83/88 Photo Credit: Times Colonist

Robotic Mower – “Moe”

Ease. Always, always making it easier

Sidney Crossing