Greater Binghamton Airport March 2016 BGM

Sixel Consulting Group March 2016

Sixel contract summary Market research and analysis Develop proposals for new air service Coordinate, accompany and represent BGM at meetings with airlines Provide industry, market, route data Provide feedback, advice on airport specific air service issues Analyze existing air service to propose ways to maintain it Monitor air fares to and from a market Route Forecasts (per route) The Department of Aviation wishes to maintain existing commercial air service as well as attract additional air service to our airport. As our air service development consultant Sixel Consulting Group works exclusively with us to provide comprehensive air service development solutions specific to our market. This is done through providing the following services:

Recent American Schedule Changes December 2015

American Airlines – Seats per Month at PHL DH8 Equipment We Have Noticed That Beginning in November 2015 DH8 Seats Operating From PHL Have a New and Somewhat Lower Baseline -17% YOY -18% YOY

PHL – BGM Seats Have Been Cut Back Considerably In Some Recent Schedule Change Publications, Especially in March 2016 PHL – BGM Scheduled Seats Monthly -60% YOY -52% YOY

BGM – PHL Monthly Load Factor and Moving Average However, Load Factors on BGM – PHL Have Continued to Rise Over the Last Several Years. March 2015 Was One of the Strongest Months to Date

BGM – PHL Load Factor Point Change For 2015 Through July, Load Factor Has Increased vs. Previous Years in Every Month Except One

At the Same Time That American Has Indicated Significant Reductions, Delta Has Indicated Significant Increases to DTW DTW – BGM Scheduled Seats Monthly +65% YOY +31% YOY

Airline Industry Changes December 2015

The Big Four Have 86% of All US Capacity

Average Domestic US Aircraft Size 2010 – 2015 Change in Scheduled Departures 2010 – 2015 Airlines Are Cutting Costs by Upgauging

Change in Scheduled Flights and Available Seats by Airport Size Calendar Year 2007 vs. Calendar Year 2014; US Airports Smaller Airports Have Faced Severe Cuts BGM -37.5%, -36.4%

Binghamton Trends March 2016

Binghamton Annual Origin and Destination (O&D) Domestic and International Passengers Year-End First Quarter Although down from Its Peak, the Binghamton Market Still Generated 169,000 O&D Passengers in Year-End First Quarter 2015

Orlando, South Florida, Dallas/Ft. Worth, the Los Angeles Basin and the San Francisco Bay Area Were the Five Largest Domestic Markets in YE 1Q Largest Domestic Markets at Binghamton Year-End First Quarter 2015

Binghamton Has Come a Long Way to Improving Its Average Load Factor, However There Is Room For Improvement Average Domestic Load Factor, Arrivals and Departures 12 Month Moving Average PHL 83.2% BGM 77.5% EWR 84.6% DTW 84.9%

BGM vs. Industry Comparisons March 2016

Most Airports With Similar Populations Are Either Tourism Destinations, or Are Isolated Communities Without Nearby Airports Population and Seats In Communities of Similar Size to Binghamton 19 PopulationAnnual Seats

The Good News is That We Have the Benefits of Having Service With The Three of the Largest Airlines in the World 20

American Offers Connections Via Philadelphia to Over 89 Destinations 21

Delta Offers Connections Via Detroit to Over 88 Destinations 22

United Offers Connections Via Newark to Over 122 Destinations 23

Only a Few Destinations With a Similar Population or Higher (up to 500,000) Have American, Delta and United. Some Have None. 24

For Additional Information David Hickling Commissioner of Aviation Greater Binghamton Airport Broome County Department of Aviation 2534 Airport Road, Box 16 Johnson City, NY