1. General Aviation Myths & Realities: Preparing Your Airport for What’s Ahead April 20,2010 SEC-AAAE Annual Conference

2. Next Year Will Arrive in 2011-ish "Forecasting future events is often like searching for a black cat in an unlit room, that may not even be there. " --Steve Davidson in The Crystal Ball. "If you can look into the seeds of time, and say which grain will grow and which will not, speak then unto me. " --William Shakespeare "It is far better to foresee even without certainty than not to foresee at all. " --Henri Poincare in The Foundations of Science Forecasting is the art of saying what will happen, and then explaining why it didn't! “ --Anon.

3.  Economic Cycles  Fuel Shocks  Transitory Events  Product/Manufacturer Liability  Tax Incentives Historical Impact Factors Source: FAA, L&B

4.  Small piston aircraft dominate the U.S. general aviation fleet. Business jet and turboprop aircraft still have relatively small share of the market  Almost two thirds of U.S. general aviation is for business or commercial purposes  Piston aircraft are deployed in more discretionary uses than turboprop and jet aircraft GA Fleet & Primary Use 163,01389% 8,9065% 11,0426% 182,961100% # of Aircraft% of Total Personal Business Piston Turboprop Business Jet Source: FAA, L&B

5.  Prolonged decline in single engine piston use masks growth in business jet and turboprop segments  Business jet aircraft utilization increased threefold between 1994 and 2006. Segment most effected by recent recession  Turboprop utilization has more than doubled Segmentation tells a story… Index of Hours Flown by Aircraft Type: Source: FAA, L&B

6.  Economic Growth  Corporate Profits  Public Perception  Commercial Airline Product Business GA Market Drivers…  Fractional Ownership  Value of Time  Metro Airport Congestion  Security (TSA) HistoricalForecast -2.4% 3.2% 4.0% Long Term 2.7% AAG Source: Bureau of Economic Analysis, Federal Reserve.

7.  Cost of Fuel!  Cost of Fuel!!  Personal Liability  Socio-Economic Factors  Aviation Career Opportunities Private GA Market Drivers… Source: EIA

8. Green Shoots or Yellow Weeds…

9. Is Airport Closure an Option…  The majority of U.S. airports are federally obligated  Grant assurances that obligate the airport sponsor will require the facility to be operated for a set amount of time (normally 20 years)  There is no limit to the duration of obligations for airport property acquired with federal monies  Private airports for public and private use have and will fail “The FAA has only rarely granted a sponsor a release from its Federal obligations sufficient to allow for the closure of an airport, and then only in very unusual circumstances. A request for airport closure from a sponsor requires a demonstration that closure results in a net benefit to aviation. Because of the important role that this Airport plays, the FAA does not anticipate granting any request for release to allow closure of the Airport. The Airport is and will continue to be too valuable for that to occur.”

10. Demand or supply…what’s the hurdle? Airport Competition Catchment Area Profile Monitor Activity Trends Local Business Survey Market Capture Tenant Aircraft Purchase Plans Facility Inventory Facility Benchmarking Market Potential Local & Itinerant User Survey Financial Position/ Funding

11. Runway Requirements…  Define Critical Aircraft  Part 91, Part 91K, Part 135 operations  Minimum Standards/Insurance VLJ Light Jet Midsize Jet Large Jet Long Range Jet Note: Assumes MTOW, ISA, Sea Level

12. Impact on Airside Planning Standards… Standard A-I Cessna 172 B-I Phenom 100 B-II Cessna Citation II B-II Cessna Citation II C-III Gulfstream V Minimum Runway Length 1,632’3,400’3,360’ 5,930’ Approach Minimum (statute miles) >= ¾ Small Only < ¾>= ¾< ¾ Runway Safety Area (RSA) - Width 120’300’150’300’500’ RSA – Length Beyond R/W End 240’600’300’600’1,000’ Object Free Area (OFA) – Width 250’800’500’800’ OFA – Length Beyond R/W End 240’600’300’600’1,000’ Runway to Taxiway C/L Separation 150’ Small Only 250’240’300’400’  Re-visit Airport Role in State System Plan & NPIAS  Community Implications  On-Airport Land Use (Non-precision approaches)  Financial & Funding Considerations

13. Case Study 1 (Dayton Wright Bros)…  Benefit Cost Analysis  Removal of 590 ft. displaced threshold allowing for full use of 5,000 foot Runway 20  Full ILS for Runway 20  Primary beneficiaries B-II design category jets Displaced Threshold

14. 1,100-foot runway/ taxiway extension Case Study 2 (Gnoss Field)… 4,400 feet  The current runway length of 3,300 feet limits the ability of current Airport tenants to operate aircraft at optimum weight for maximum efficiency  The Airport needs to comply with current FAA standards for Runway Safety Areas (RSAs) Critical Aircraft: Citation 525

15. Runway Approach Lighting…  Business and corporate operators want ability to operate at night under instrument conditions  Land availability considerations  MALSR gives CAT I type capability  MALSF option based on land availability, could affect minimums

16. Navigational Aids…  Precision Approaches ILS- (Glide Slope, Localiser-DME, Marker Beacons) GPS – Global Position System RNP – Required Navigation Performance  Non-Precision Approaches VOR – Very High Frequency Omni-range RNAV - Area Navigation (GPS-LNAV, VNAV, LPV)  LAAS (Local Area Augmentation System)  WAAS (Wide Area Augmentation System)  Radar Approaches PAR – Precision Approach Radar ASR – Airport Surveillance Radar

17. The fuel dichotomy…  Jet aircraft account for 17 percent of general aviation hours flown but almost 75 percent of total fuel consumed  Greater emphasis on JetA and full service fueling  Should airport allow non FBO tenants to establish self fueling capabilities?  Price of fuel should reflect level of service Piston Turboprop Business Jet 14 gph 94 gph 365 gph Total Fuel Consumption (2008, in gallons) Source: FAA

18. A more demanding customer base… Pilot/Crew Lounge Jet Aircraft Maintenance Customer Check In Counter/ Lounge Area Courtesy Transportation/ Ground Access Aircraft De-Icing Services/ Facilities Fuel Tanks Weather/ Flight Planning Facility Hangars (Long Term/ Overnight) Business Center/ Wifi Oxygen/ Nitrogen Service Towing Equipment Extended Hours of Operation

19. THANK YOU!!!! Contact: Dil Gruffydd dgruffydd@landrum-brown.com 513-305-2264 (cell) 513-530-1226 (office) Contact: Monica Geygan mgeygan@landrum-brown.com 513-319-8299 (cell) 513-530-1207 (office)