Annual Public Meeting Red Deer Airport Authority April 29 th, 2015

AGENDA  Airport Introduction  YQF  Market Leakage  Looking ahead in 2015 & Beyond

INTRODUCTION

 Not-for-Profit Organization –Any surpluses re-invested on airport  Governed by 12 person Board of Directors –Appointed by City of Red Deer and Red Deer County –Fiduciary responsibility to the Airport  Our YQF To be the Aviation Gateway for Central Alberta

2014 ACHIEVEMENTS

HIGHLIGHTS  Scheduled passengers grew to 25,819 from 11,997 in With Charter passengers included -Total passenger numbers grew from 17,402 to 29,152 passengers  Grande Prairie was added as a fourth city pair for the airport and the third destination for NWAL  20 Year master planning project was initiated in February and completed in August 2014 on time.  LPV GPS landing approach for the primary runway project competed and published in Nav Canada Flight Supplement November 2014  No major aircraft incidents causing injury or death  Scheduled passengers grew to 25,819 from 11,997 in With Charter passengers included -Total passenger numbers grew from 17,402 to 29,152 passengers  Grande Prairie was added as a fourth city pair for the airport and the third destination for NWAL  20 Year master planning project was initiated in February and completed in August 2014 on time.  LPV GPS landing approach for the primary runway project competed and published in Nav Canada Flight Supplement November 2014  No major aircraft incidents causing injury or death

% Passenger Growth 1, % Passenger Growth 11, % Passenger Growth Est. 25, % COMPOUND ANNUAL GROWTH OVER 4 YEARS SCHEDULED PASSENGERS

YQF

ENPLANED/DEPLANED PASSENGERS 2012 – % Increase

AIRCRAFT MOVEMENTS 2012 – 2015

AIR CANADA  Launched service September 2013  3x per day – 7 days per week  Connecting through Calgary to 181 destinations world wide

TOP DESTINATIONS  Domestic – Vancouver, Kelowna, Fort McMurray  USA – Phoenix, Los Angeles, Las Vegas,

ADDING COMMUNITY VALUE  Western Days BBQ  Raised $2,000 for Aspire

ADDING COMMUNITY VALUE Red Deer Games Bid Team Airport Welcome

ADDING COMMUNITY VALUE Westerner Days Parade

TRUE MARKET / LEAKAGE STUDY

STUDY METHODOLGY  Study completed in March – Sixel Consulting Group  20,403 airline tickets were sampled from Red Deer Study area  Three Components - 1) MIDT Sabre Data, 2)population from catchment area and 3) LCC adjustments for direct to web site  Airline tickets to ARC - Air Canada, Delta, WestJet, American, United and Air Transat

HIGHLIGHTS  Red Deer Area averaged 1,103 Passenger Per Day Each Way (PDEW)  4.6% use Red Deer Airport – 75.2% YYC & 20.2 YEG  Red Deer Airport captures 47 domestic and international PDEW  Vancouver, Toronto and Kelowna generated largest number of passengers  WestJet, Air Canada and United capture the largest number of passengers among airlines 20.2% 4.6% 75.2%

Central Alberta - A Proven Market YEG: 204 PDEW YYC: 762 PDEW RankAirportPAXPDEWShare 1YQF34, % 2YYC556, % 3YEG149, % TotalRed Deer Area PAX739,7481, % Total - Originating Airport for Red Deer Area PAX Domestic Only - Originating Airport for Red Deer Area PAX RankAirportPAXPDEWShare 1YQF31, % 2YYC315, % 3YEG95, % TotalRed Deer Area PAX443, % RankAirportPAXPDEWShare 1YQF2, % 2YYC240, % 3YEG53, % TotalRed Deer Area PAX296, % International Only - Originating Airport for Red Deer Area PAX Source: Sixel Consulting 2015

Rank Airport Metro Area Airports YQF PDEW Leaked PDEW True PDEW True O&D Pax 1 VancouverYVR ,159 2 TorontoYYZ/YTZ ,497 3 KelownaYLW ,742 4 Fort McMurrayYMM ,288 5 WinnipegYWG ,725 6 Las VegasLAS ,791 7 VictoriaYYJ ,094 8 CancunCUN ,692 9 ReginaYQR , SaskatoonYXE , LondonLHR/LGW ,156 True O&D Passenger Markets Source: Sixel Consulting 2015 YMM 44.2 PDEW YVR 98.8 PDEW YLW 47.6 PDEW YYZ 95.2 PDEW YWG 42.1 PDEW

AIRLINE REVENUE RankAirportRevenue US$RDEW US$ Avg Fare US$ Share 1YQF$10,411,853$14,263$3034.2% 2YYC$187,493,598$256,841$ % 3YEG$49,651,804$68,016$ % TOTAL$247,557,255$339,120$ % Top 5 Revenue Markets – 24.6% Toronto Vancouver Fort McMurray Cancun Houston

PASSENGER GROWTH FORECASTS

CONCLUSIONS  Red Deer Area produces 739,748 total airline passengers per year or 1,103 PDEW  A minority of our market currently use Red Deer airport – 4.6%  Potential for hundreds more daily passengers to fly in and out of the Red Deer Airport.  Market is large enough to support additional airline service and runway extension

LOOKING AHEAD IN 2015

GROWTH PRIORITES Runway Extension to 7500 ft. SE Field Development 300,000 sq. ft.

VOLUME IS KEY  Ability to land larger aircraft key unlocking the potential of the airport. Fixed/operational costs same whether landing 737 or Cessna 172 – Biggest difference is revenue generated for the airport with larger aircraft type  Extension creates sustainability and viability for the airport over the long-term  1 – 737 landing per day = $600,000 annual revenue 16 person years of employment $950,000 in wages

OTHER FOCUS  Airport Zoning Regulation – Protects airport presently and future  Noise Contours to be established 2015  Grow & Diversify Revenue – financial stability  Control costs…with necessary investments in infrastructure  Apply to ACAP - eligible after three years  Growth in Scheduled Service – Frequency and Destinations  Land Development and Servicing

PROGRESS CONTINUES  Strong Interest by New Airline Market Entrants (ULCC)  Market Adoption and Dialogue  Building Regional & National Credibility and Reputation  Professional Airport Environment  Engaged Community Leadership

ADDING VALUE EVERYDAY  225 jobs  $15 million in annual payroll  $99 million in value added direct and indirect economic output A Vital Component of the Future Central Alberta Economy A Vital Component of the Future Central Alberta Economy

Thanks for your Support