Change in UK Airports Paul Kehoe BHX - CEO 10 March 2016 BBGA

Birmingham Airport

Location, population and transport  10m within 60 minutes  2nd largest city in UK  Metro Pop c4 million  Centre of UK manufacturing  Tourism – Shakespeare, Warwick, Cotswolds, Wales  Rail – direct to London in 1h10m  Car – centre of UK motorway network

Changing dynamics - UK Pre 1986 Government managed and control National Ts and Cs Limited connectivity/domestic schedule/ international charter dominant Post 1986 Privatisation and sale and re-sale/more competition Rise of the LCC Changing nature of revenue sources Rise of the business manager Post 2009 Break up of BAA Increase in overseas ownership Regrouping of airports Competition, Low cost dominance, closure Post The Airports Commission

Changing airport management dynamic - UK Past Operators Pilots Navigators Town Clerks Air Traffickers Engineers Fire Officers Businessmen/women

Airport utopia

Airport reality NOT RYANAIR

Service business We thought – “what if Disney ran airports...?” Put customer/consumer first – airline & pax Making the journey transparent Where’s my plane? gate? shops or bag?

Service delivery Intelligence Marketing – Airlines, Passengers Social Media Communications Press Events TV and radio advertising Print advertising Search engine optimisation – pay per click Sponsorship Service Performance

Current airport strategy  Shareholder asks  Marketing & customer service  Optimize revenue, margin and dividend  Deliver capex on time  Cultural change and business transformation  Innovation, operational excellence  Strategic Intent  Safe and secure operation  Get planes, get pax, extract value, control costs  Create economic opportunity  Good stewardship of business

£300m investment

New facilities and capabilities

Airport Policy Political Campaign – A Challenge to Aviation Orthodoxy

“ It’s the economy, stupid!” BHX worth £1.7bn and 40,000 jobs to UK economy Existing evidence shows that the Midlands has a competitive advantage within the UK economy for manufacturing exports. Businesses in the catchment area consider the lack of long-haul connectivity from the region to be restricting their growth SE Runway – 15 years away What are we doing next week?

Capacity

Connectivity

High Speed Rail

BIRMINGHAM AIRPORT

Thank you & Q and A