Ithaca Market Performance February 24 th 2014

The Positives Regional Airline service by the three largest network carriers to three major domestic & international hubs One-stop connections to 65 – 100+ destinations from each of the flights from ITH within a 3 hour window of arrival into hub ITH provides easy access to customers within an hour drive time of Ithaca

The Challenges Negative perception of the EWR & PHL hubs Few reaccomodation options during irregular operations East coast weather and NYC airspace ATC impact on flights to ITH Dislike of turboprop aircraft Perceived hassle of poor customer service by airline and TSA staff Higher than average Cost Per Enplanement (CPE)

The Opportunities Create common positive narrative about the benefits of service to all three hubs Stay current with actual operational performance and discuss in open monthly forum “Are you (w)ITH Us” is important campaign for the community and airport to embrace Get out in community to talk about the positive economic impact the airport provides

How the Carriers view ITH “ITH is bumping right along the very bottom of the network”…..US Airways “The performance of this market is subpar and we are interested in improving both loads and yields”…..Delta “ITH-EWR market is among the weakest in the network”…..United

Our Costs Cost Per Enplanement Comparison: AVP $6.56 BGM $11.82 ELM $2.71 ITH $13.48 Average$8.64 ITH+64% *Landing Fees and Station Rent associated with each respective airport.

US Airways ITH-PHL The 2013 passenger load factor averaged 65%, 13% lower than the network average. Of all the routes that US operates, PHL-ITH LF was in the bottom 5%. The average network fare realized to/from ITH, has a value that is approximately $5 less than the average city in the US network. For the market to materially improve we need to see a substantial boost in load without incurring a degradation to average fare.

Delta ITH-DTW This market has an average LF of 79% for the last twelve months which is down from last year. Summer loads were down 6 to 8 points over prior years. Connections over DTW are quite robust with over 70 connections including Latin, Pacific, and Atlantic markets. ITH also connects well to West and Florida markets which are the top O&Ds.

United ITH-EWR Load Factor in this market for 2013 averaged at 76.7% down from 77.8% in 2012 The early morning arrival into EWR essentially allows access to the departure bank which allows for most of Canada, the Mid-Atlantic/Southeast, Florida, the Midwest, and the West/West Coast regions. This is a major domestic departure bank throughout the week; most Caribbean departures also occur during this period of time and allows Ithaca residents to be in the sun (be it Honolulu or Aruba among others) by mid-afternoon or London for a late dinner. This trip also allows for a connection within 4 hours to Tokyo and Shanghai.

United Continued The 1055 arrival allows for connections to many of the same destinations rounding out connecting opportunities to the two other Asian destinations offered in this part of the day - Beijing and Hong Kong The 1825 arrival allows for many international destinations including Barcelona, Belfast, Mumbai, Paris, Delhi, Frankfurt, Dublin, Edinburgh, Glasgow, Sao Paulo, London, Lisbon, Madrid, Manchester, Oslo, Port of Spain, Shannon, Tel Aviv, Edmonton, Halifax, Quebec, Moncton, and Toronto. Many domestic destinations are also served in this four hour connecting window This round-trip carries around 50% of the international flow encountered in the EWRITH pattern throughout the day

Load Factor Load Factor = Butts in Seats! 37 seats  65% LF = 24 Pax  33 Pax = 90% LF 37 Seats  77% LF = 28 Pax  33 Pax = 90% LF 50 Seats  79% LF = 40 Pax  46 Pax = 90% LF We need 66 pax per day to drive LF to 90%

Load Factor Chart

Growth Opportunities Current service levels require significant consistent rise in overall LF’s Carriers are concerned additional service would further weaken yield Service to ORD or IAD have potential; subject to improvement in current LF and may require revenue guarantee Service to LGA would be a long shot

Public Relations The airport needs to get similar constant positive press similar to what CMC is doing with “The Center is You” “Are you (w)ITH US” needs to be in every possible media outlet Engage Cornell and major business stake holders in positive support effort How do we reach families for leisure travel? Can we get the media on our side?

How do we? Reduce operating costs to airlines to boost yield? Incentivize local community to use ITH as preferred departure point? Get buy-in from airport staff on importance of excellent customer service? Educate the influencers on the benefit of the hubs and how they work? Compare to other regional airports? Measure success in our efforts?