CAE: Sharing The Pride and Performance Of Our Hometown Airport February 24, 2014

Industry Changes: Merger Mania DELTA/NORTHWEST – WHAT DID WE LEARN? 1+1=>2 in some markets; 1+1=<2 in others Network strength = Interior markets United/Continental Opportunities beyond the major O&D’s? Network strength = Major Metros SOUTHWEST/AIRTRAN What happens to small markets? Secondary airports? Where will growth be focused? Can low costs be maintained What ABOUT AA/US AIRWAYS?

Industry Changes: Fleet Complexion A dramatic shift in aircraft size is underway in domestic markets. Driven by the increasing oil prices. Narrow body aircraft in the seat range is now the “sweet spot”. Regional Jet economics are very difficult. Fleet is aging. No replacement anticipated. Small turboprops are also disappearing. No replacement anticipated. Small markets will be under Increasing pressure. Between 2010 and 2020 over 700 RJs – mostly 50-seats and below are forecast to come out of North America fleets. 3

Cut Costs & Revenue 4 Reduced CPE to under $10 Reduced operating costs Completed refinancing of Series 2001A Bonds; Producing a savings of $3.5 Million. Reduced overall debt by $18 million Revenue Diversification Completed purchase of buildings in Foreign Trade Zone; Income of $600,000 per year. Moody’s has reaffirmed Baa1 rating with the Outlook:Stable Debt/PAX $ (2010) Debt/PAX $ (2013) Reduced Debt $18M Reduced CPE < $10

Impact: Delta 5 Non-stop Destinations DET LGA ATL Capacity Increases Increased capacity and changed fare structure. Summer 2014 schedule indicates a 7% increase in capacity B717 – First Class Cabin Service

Impact: US Air/American Airlines 6 Non-stop Destinations DAL CLT PHL DCA CHALLENGES: Washington Reagan National (DCA) Service Disruptions OPPORTUNITIES: Capacity Increases in Existing Markets New Hub Flying Fleet Upgrades

Impact: United Airlines 7 Non-stop Destinations ORD IAH IAD

Impact: LUV 8 1% leakage to GSP and CHS did not happen. GSP losing routes to MCO, BNA

Getting Results Self Sufficient: CAE does not receive state or local tax dollars. Enplanements: Increased in 2012 and in Top Ranking: Ranked in the Top 30% for enplanements. Ranked in the Top 25% for connectivity. Cargo: Handles over 100 million lbs. of air cargo, more than all other SC airports combined. Awards/Recognitions: Recognized by the Air Line Pilots Association (ALPA) for Excellence in Safety. Recipient of the SC Chamber of Commerce’s Excellence in Diversity Award for our DBE initiatives. 9

What’s Else is New at CAE? TSA Pre TM TSA Pre ✓ ™ Experience: Quicker transit through airport lanes Shorter lines Shorter wait times Improved customer experience No Removal of: Belt Shoes Light outerwear/jacket compliant bag and laptop from carry-on Mobile Boarding Pass Save Paper. Save Time. Once you receive your boarding pass, simply scan the barcode on the screen at airport security checkpoints and at the gate during boarding. It's fast and convenient. Other Amenities Free Wi-Fi Free Business Center USO Valet Parking Clarion Parking

Airport Projects 11 CIP Runway 11/29 Airfield Signage and SMGCS Implementation Project Roads Rehabilitation T/W "U" Widening & Lighting Project Terminal Improvements (Restrooms, Elevators, Roof, Security Equipment) $11,000,000 $1,730,638 $1,899,826 $4,979,857 $3,369,913 $22,980,234 CIP 2014 – 2018 Passenger Boarding Bridge Replacement New ARFF Station Taxiway A Reconstruction Terminal Improvements $1,950,000 $5,000,000 $14,597,000 $8,460,000 $30,007,000

CAE Economic Impact 12

Airport Connector Phase II

QUESTIONS? Thank you. Dan Mann, AAE Executive Director Columbia Metropolitan Airport 125A Summer Lake Drive West Columbia, SC Office Mobile 14