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

2. AGENDA  Airport Introduction  2014 @ YQF  Market Leakage  Looking ahead in 2015 & Beyond

3. INTRODUCTION

4.  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 Vision @ YQF To be the Aviation Gateway for Central Alberta

5. 2014 ACHIEVEMENTS

6. HIGHLIGHTS  Scheduled passengers grew to 25,819 from 11,997 in 2013. 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 2013. 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

7. 2012 239% Passenger Growth 1,468 2013 717% Passenger Growth 11,997 2014 115% Passenger Growth Est. 25,819 179% COMPOUND ANNUAL GROWTH OVER 4 YEARS SCHEDULED PASSENGERS

8. STATS @ YQF

9. ENPLANED/DEPLANED PASSENGERS 2012 – 2015 115% Increase

10. AIRCRAFT MOVEMENTS 2012 – 2015

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

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

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

14. ADDING COMMUNITY VALUE Red Deer Games Bid Team Airport Welcome

15. ADDING COMMUNITY VALUE Westerner Days Parade

16. TRUE MARKET / LEAKAGE STUDY

17. 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

18. 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%

19. Central Alberta - A Proven Market YEG: 204 PDEW YYC: 762 PDEW RankAirportPAXPDEWShare 1YQF34,340474.6% 2YYC556,25076275.2% 3YEG149,21620420.2% TotalRed Deer Area PAX739,7481,013100.0% Total - Originating Airport for Red Deer Area PAX Domestic Only - Originating Airport for Red Deer Area PAX RankAirportPAXPDEWShare 1YQF31,834447.2% 2YYC315,73543371.2% 3YEG95,94013121.6% TotalRed Deer Area PAX443,619608100.0% RankAirportPAXPDEWShare 1YQF2,50630.8% 2YYC240,51532981.2% 3YEG53,2767318.0% TotalRed Deer Area PAX296,129406100.0% International Only - Originating Airport for Red Deer Area PAX Source: Sixel Consulting 2015

20. Rank Airport Metro Area Airports YQF PDEW Leaked PDEW True PDEW True O&D Pax 1 VancouverYVR4.494.498.872,159 2 TorontoYYZ/YTZ1.993.395.269,497 3 KelownaYLW11.935.747.634,742 4 Fort McMurrayYMM8.136.144.232,288 5 WinnipegYWG1.840.342.130,725 6 Las VegasLAS0.235.135.325,791 7 VictoriaYYJ1.632.834.425,094 8 CancunCUN0.029.7 21,692 9 ReginaYQR1.925.527.319,950 10 SaskatoonYXE1.524.926.419,240 20 LondonLHR/LGW0.011.111.28,156 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

21. AIRLINE REVENUE RankAirportRevenue US$RDEW US$ Avg Fare US$ Share 1YQF$10,411,853$14,263$3034.2% 2YYC$187,493,598$256,841$33775.7% 3YEG$49,651,804$68,016$33320.1% TOTAL$247,557,255$339,120$335100.0% Top 5 Revenue Markets – 24.6% Toronto Vancouver Fort McMurray Cancun Houston

22. PASSENGER GROWTH FORECASTS

23. 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

24. LOOKING AHEAD IN 2015

25. GROWTH PRIORITES 2015-2018 Runway Extension to 7500 ft. SE Field Development 300,000 sq. ft.

26. 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

27. 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

28. 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

29. 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

30. Thanks for your Support