Airline & Airport update 12th April 2016 Sally Russ

6 AIRLINES 8 DESTINATIONS UP TO 400 FLIGHTS A WEEK

AIRLINE UPDATE

PASSENGER NUMBERS DEC - FEB 80,210 PAX 78,509 PAX 82,205 PAX Auckland Route 45% Wellington up 37% Auckland Route 45% Wellington up 37% Dec 2015 Up 18% Jan 2016 Up 22% Feb 2016 Up 29% NSN could reach 1M PAX per annum in early 2017

YEAR ON YEAR COMPARISON - SEATS New Airline activity increases seats available Jetstar has driven total Market growth

YEAR ON YEAR COMPARISON PAX Jetstar Auckland & Wellingt on routes activate d AKL 45% up on WGTN 37% up on 2015

YOY COMPARISON – PAX, SEATS, LOADS Exceptional growth with market competition & price stimulation Load factors have increased with capacity

CUT THROUGH NATIONALLY 6 Airlines 8 Destination 6 Airlines 8 Destination Challenge – over 1.3 million seats annually to sell

NELSON CATCHMENT AREA Population of catchment area 142,563 Flying time to Nelson: 30minutes – 90 minutes Higher frequency & lower fares have widened our catchment area

PASSENGER TARGET DEVELOPMENT Projected to hit 1 Million PAX late this year

AIRPORT FY17 UPDATE

MARKETING PLAN ROADMAP Target: 1.2 million passengers by FY20 PASSENGER PROFILES Knowing our existing and potential customers SITUATION ANALYSIS Understanding where are we now? MARKETING INITIATIVES [THE PLAN] Marketing Mix Marketing Tools Market Research TARGET MARKETS Selecting priority targets Key messages by market PARTNERS Who is going to help us? What is our role? How are we going to deliver these target passengers?

Source: Nelson Airport Ltd Passenger Survey 2014 (n=1311) 58% live local Purpose of travel: 50% business 25% VFR 12% domestic leisure 8% international leisure Average length of stay: 25% 4-7 days 25% 2 – 3 days 22% 1 day Frequency of travel: 20% travel monthly 7% travel fortnightly 8.3% travel weekly 55% Male Almost 60% are loyal locals who travel mostly for business, followed by VFR, with a high propensity to travel WHO ARE OUR PASSENGERS?

TARGET MARKETS Local Business Travellers & Commuters Outbound Leisure Connecting Traffic (international) Inbound Leisure Latent Travellers

MARKETING TOOL KIT To achieve the successful roll out of the Marketing Activity Plan, Nelson Airport will need to first build up its toolkit. Essential tools needed include the following: Brand and collateral (eg. presentations, templates, B2B flyers) Hero Shot Video and Images (used to encapsulate airport benefits and appeal to target markets as well as airlines – look at two separate videos for B2B vs B2C) Creative and media agency (key partners in delivering quality brand materials) – Downing Design Website – Kerry Saunders Social Media – Facebook, Instagram (need regular content) Traditional Media channels – radio and print Existing communication channels – Airport database, Tourism, Local Business, Councils Lime Intel & PAX reporting/Surveys On Airport and ‘In Airport’ advertising Agreed number of FOC flights from airlines for promotions (forms part of 12 month joint marketing plan) Toolkit will have a view for a 3-5 year lifespan. Without these tools, Nelson Airport won’t achieve a consistent message and brand clarity.

MARKETING MIX Marketing Activity Mix Sponsorship (community and business) Outbound Brand Advertising Outbound Coop Advertising Inbound Coop Advertising Website (Consumer direct communication) Airline Business Development Market Research Social Media Campaigns Integrated as another ‘channel’ for communication into all marketing Channels: Focus on digital, social media & radio (with supporting advertising from local papers). Tap into existing communication channels from local industry groups. Partnership marketing activity NTT, Christchurch South & Tourism NZ for inbound and select key destination partners for outbound There are numerous avenues to communicate with Nelson Airport’s target market. The graphics below displays the suggested Marketing Activity Mix. Look for opportunities to raise brand awareness and target seat sales

NELSON AIRPORT NEXT 6 MONTHS KRA start Christchurch route 15 th May Departing passenger survey to understand our current market & how our passengers may have changed in the new competitive environment Strategic planning phase – Airline sustainability, events and aligned partner marketing to influence low season PAX Finalise new Terminal & Car Park design Develop Sponsorship Strategy Increase staff: New EA, Commercial Manager & Terminal Supervisor Airline pricing consultation