Changing the Region…Connecting the World

From the Economic Engine for Memphis … to America’s Aerotropolis Airport Cities World Conference, April 2007 Frankfurt, Germany

How does an airport in a mid-size American city become a world leader?

Focus on Community Attributes and Build on Strengths Memphis has been a center for trade since its founding in 1819 Trading post River trade along the Mississippi Rail leadership (5 Class-1 railroads) Interstate access (I-40 and I-55, I-20, I-69 “NAFTA Highway,” plus seven U.S. highways) Air cargo leadership was the natural progression

Established Distribution Leadership Attracted a Revolutionary Concept FedEx established at Memphis International Airport in 1973 Today its largest hub operation and corporate headquarters Employs 40,000 people in the metro area Is the catalyst for cargo leadership

Since 1973, The Night Skies Over Memphis Are The Busiest in the World

Focus on Community Attributes and Build on Strengths Memphis has been an entertainment center and tourist destination for decades Home of the Blues Beale Street Stax Records Birthplace of Rock’n Roll Sun Studios Home to Elvis Graceland is the 2nd most visited home in the United States Pandas at the Memphis Zoo Passenger traffic leadership was the natural progression

International Tourism Leadership Attracted a Passenger Hub A major airline hub established in 1985 by Republic Airlines Today, one of three U.S. hubs for Northwest Airlines Direct service to Europe (Amsterdam) established in 1995 Today Northwest offers 223 daily flights with direct service to 80+ cities

Northwest Gives Memphis Unprecedented Service for a City of Its Size?

Memphis International Airport Bringing it All Together Economic Impact: $20.7 Billion Annually 1 in 4 jobs locally, nearly 166,000 Nearly $6 billion in annual earnings This slide shows the full economic impact of MIA. The total output of all airport activities and its directly connected business, plus the multiplier impact of that spending is a remarkable $20.7 billion each year. This is up considerably from the last study. In addition one in 4 jobs in the local economy are tied to the airport or airport related businesses in some way. Those jobs generate nearly $6 billion in annual earnings.

Memphis International Airport Cargo Impact World’s busiest cargo airport since 1992 FedEx Super Hub accounts for 93.6 percent of cargo at MEM $19.5 billion of total economic impact from cargo operations 300 national and international nonstop destinations Enhanced by superior highway, rail and port access

The Nightly FedEx Sort in Memphis is One of the Wonders of Modern Business

Worldwide Air Cargo Leader 2006 Cargo Traffic Memphis 3.69 million tons Hong Kong 3.61 million tons Anchorage 2.80 million tons Seoul 2.34 million tons Tokyo 2.28 million tons Shanghai 2.16 million tons Frankfurt 2.18 million tons Louisville 1.98 million tons Singapore 1.93 million tons Los Angeles 1.91 million tons Source: Airports Council International, Geneva, Switzerland, 2007

Memphis International Airport Passenger Impact 5,234,374 enplanements in 2006 9,000+ passenger operations related jobs Direct and indirect impacts of passenger operations of $1.2 billion 9 Airline Brands serving Memphis Northwest, Delta, American, Continental, United, US Airways, Airtran, America West, Frontier 284 Scheduled daily flights 80-90 cities served by daily nonstop service

Memphis International Offers Guests a Unique Memphis Experience

Per 1,000 Persons (per annum) Domestic Departures Per 1,000 Persons (per annum) Cincinnati Anchorage Memphis Atlanta Las Vegas Denver Newark Charlotte Orlando Minneapolis/St. Paul Dallas/Ft. Worth 108 103 102 95 91 85 75 69 66 65 61 12. Seattle 13. St. Louis 14. Salt Lake City San Francisco Phoenix Houston Chicago Detroit 60 59 56 53 44 42 Source: Global Aviation Associates, Washington, D.C., 2004

Cargo Drives Economic Impact Beyond Other Passenger Hubs Airport/City 2004 Passengers Metro Population Economic Impact Memphis 10,883,759 1,250,293 $21 Billion Denver 42,393,766 2,330,146 $17 Billion Phoenix 39,504,898 3,715,360 $14 Billion Minneapolis 36,713,173 3,116,206 $11 Billion

Cargo Leadership Has Driven Diversity in Time-critical Distribution Operations World’s largest laptop computer repair depot World’s largest cornea bank World’s largest DVD distribution center Largest overnight drug testing center in U.S. Medical device and surgical orthopedic kit distribution leader Major pharmaceutical distribution hub Solectron – Laptop repair company National Eye Bank Center – corneas Thomson Technicolor – DVDs shipped daily 1.2 million (1/2 of those shipped in U.S.) Advanced Toxicology – drug testing (5,000 per night) Medtronic and Smith & Nephew – medical devices and surgical kits Pharmaceutical companies include Pfizer, Baxter, GlaxoSmithKline and others

To Support Growth, Memphis International Never Stops Investing Projects underway or recently completed Air National Guard new facilities FedEx expansion Cargo Central – airport based cargo facilities Memphis-centric passenger terminal experience Major roadway ingress, egress and signage improvements New parking structure Grand transportation terminal New control tower

Memphis’ Business Focus for The Future is Airport-centric Memphis Chamber Fast Forward Economic Development Plan Logistics Biosciences Tourism Music and Film Logistics, Biosciences and Tourism are all dependant upon Memphis International Airport

Conclusions Memphis International Airport not only defines Memphis today, but it also sets the stage for our future. The airport is the largest single economic generator in the Memphis economy – and one of the largest in America. Both cargo and passenger service – especially the FedEx and Northwest hubs – create a disproportionate business and tourism advantage for the Memphis region compared to other competing cities. The future of Memphis’ business and tourism growth is contingent upon the continued success of Memphis International Airport and its principle airline partners.

These words have never been more accurate than they are today. “Aviation in the first half of the 21st century will be as important to the country as the interstate highway system has been in the second half of the 20th century … There is no place in America that understands that more at its core than Memphis.” Though delivered by then U.S. Secretary of Transportation Rodney D. Slater in April 1998 … These words have never been more accurate than they are today.

The Future of Memphis is Best Viewed Through The Airport Control Tower