Clint Torp, Assistant Airport Manager

Today's Topics General Information Local airline service Airline struggles and resulting general business model adjustments Capital Improvement Projects Future Direction

General Information Airport is ranked as the 210 th busiest airport in the nation based on passenger enplanements, there are currently 538 Commercial Service Airports in the U.S. Airport operates as a financially self sufficient utility for both Operations and Maintenance as well as Capital Improvement Budgets.

Economic Impact The La Crosse Municipal Airport provided over $28 million in economic output, supported 331 jobs and contributed $7.8 million in wage income to the local and state economy in 2004.

Airline Service Currently 12 daily arrivals and departures American Airlines serves Chicago OHare 5 times daily Delta Airlines serves Minneapolis/St. Paul 5 times daily & Detroit 2 times daily

Current Airline Fleet Mix All regional jet service – 50 to 76 seats

Passenger Trends

Load Factors and Available Seats 180,866 Seats Available in ,341 Passengers Enplaned in % load factor in % load factor to date in 2010

Airline Industry Struggles Airline industry had profits of $1.9B in Q2 on $31.7B in revenues (less than 6% margin) IATA expecting $2.5 Billion in Airline Profits in 2010 (75% of pre-recession levels) Airlines have lost nearly 100B in capital since 9-11 Recent Fuel Prices Have Helped

Industry Reactions Domestic flight reductions Fare increases Ala-carte pricing Reduced customer service Overall attempt to reduce competition, increase costs efficiencies, and increase fares industry wide

Airlines Serving La Crosse Delta Best quarterly profits in a decade at $549M Recently merged with NWA American Lost $10.7M Only legacy airline yet to file bankruptcy Both Airlines have indicated they intend on continuing to serve our market

Mergers The airline industry is scrambling to reduce available seats, drive up ticket prices, and realize any available cost synergies possible Merging allows airlines to reduce duplicate flight frequencies as well as realize the benefits of complementary routes Delta and Northwest have completed merger and is now operating as Delta United and Continental have announced merger, will operate new airline as United

United/Continental

Current Objectives Retain current airline service Load Factors Military Usage Enhance value added services Free Wireless Terminal Enhancements Minimize airline operating expenses Simple Fee Structure Prepare infrastructure for future service expansions

Airport Master Plan 20 year plan to guide development which was adopted by the City Common Council Feb Development is undertaken with heavy considerations for improvement to safety and operational considerations. Through the implementation of the Master Plan the airport has been able to conduct development with a systemic approach towards continued improvement.

Projects The La Crosse Airport has performed over $33 million in projects in the last 8 years Approximately $10 million in projects expected in 2011

Major Projects Completed 2004 –Reconstruction of Taxiways F, B, G, and H 2005 –Reconstruction of Taxiway A & Security Improvements 2006 – Taxiway F, Phase One Reconstruction of Taxiway A, E & South Ramp 2008 – Reconfiguration of Runways 18/36, 3/21 and associated taxiways 2010 – Continuation of Taxiway F, Terminal Hold Room Remodel/Enhancement

Terminal Remodel

Upcoming Capital Improvements 2011 Taxiway Foxtrot Extension Completion Airport Road Reconstruction Terminal Loop Reconstruction Parking Lot Expansion

Taxiway Relocation

Trends for the Future Expect increasing ticket fares system wide Increased national congestion from reduction in available seats Continued mergers will result in less completion Future service will depend on local airport use, what can I do? Fly locally, higher passenger numbers will provide the necessary statistics to attract additional service

Closing Remarks La Crosse is not projecting significant changes in the near future and expects to be served by both Delta and American in the near future We the local residents and business hold the key to future expansion and development

Clint Torp, Assistant Airport Manager QUESTIONS?