CVG Update for OKI Board October 13, 2016 Launching Point Strategic - - PowerPoint PPT Presentation

CVG Update for OKI Board October 13, 2016

Launching Point Strategic Plan

1

Strategic Plan: Launching Point 2016

Core Values: the fundamental beliefs of our organization

• Safety
• Trust
• Respect
• Innovation
• Mission Focused

Guiding Principles: the principles that guide our organization and how we interact

with one another

• Ensure the safety and security of our stakeholders
• Foster a culture of trust, collaboration and fun among our team members
• Communicate openly and honestly with our team members and stakeholders
• Maintain a culture that respects and values one another, appreciating and cultivating

individuality and diversity

• Encourage an environment that embraces innovative solutions and continuous improvement
• Remain keenly focused on our mission and enhance our position as a leader in aviation, both

regionally and globally

2

Objectives

The path taken to achieve our Mission

Grow Air Service Facilitate Economic Growth Build Meaningful Partnerships Differentiate the CVG Brand Deliver Operational Excellence

1.Expand and diversify passenger carriers 2.Grow air cargo and related businesses

• 3. Increase corporate flight activity
• 1. Maintain competitive cost structure and strong financial position
• 2. Diversify airline and non-airline net revenue streams

1.Act as a socially-responsible neighbor 2.Foster relationships with local governments, business and community leaders to strengthen and grow our business 3.Build a culture of collaboration and teamwork

• 1. Activate brand promise and enhance reputation among key

audiences

• 2. Provide a seamless passenger experience through innovative

solutions 1.Manage assets strategically to ensure clean, effective and efficient

• perations

2.Ensure safety and security of employees, passengers and stakeholders 3.Deliver outstanding customer service

Goals

The stepping stones to achieving our objectives

FLY FROM Mission

We’ll achieve our Vision by becoming the Airport

• f choice to:

DO BUSINESS WITH WORK FOR Vision

Where CVG intends to go

Make travel through CVG an unforgettably positive experience.

9,000,000 passengers 350 acres of airport land leased for development $5 Billion annual economic impact ASQ ranking superior to peer airports Functionally obsolete Terminal facilities demolished and CONRAC constructed

Launching Point: The CVG of Tomorrow

What we’ll look like by 2021

3

Grow Air Service: Air Service Update

4

160 Peak Day Departures 54 Non-Stop Destinations 6.3M Annual Passengers 85% Local Origination 9 Passenger Airlines 18 Operating Carriers

Non-Stop Destinations Seasonal Destinations

Air Service Overview

5

Source: Diio Mi Schedule data loaded as of July 6, 2016

Capacity Share 2012 vs. 2016

Air Carrier Changes at CVG

Ultra Low Cost Carrier Now Represent About 20% of CVG Capacity 2012 2016

6

CVG Fare Trend

Nine Consecutive Quarters of Year-Over-Year Improvement

Source: Bureau of Transportation Statistics. Inflation-Adjusted air fares are calculated using dollars for the year of the most recent fare release.

Average Fare and DOT Fare Ranking by Quarter 1Q 2012 to 4Q 2016

7

Monthly Origin Passenger Trend

24 consecutive months of YOY originating passenger growth

Source: CVG Airport Statistics: Passenger Enplanement Data

YOY Percent Change AUG 2015 – Jul 2016

8

Landed Weight continues to grow; year to date landed weight is up 7.7% compared to 2015

51% 49%

Landed Weight Trend

9

Total investment by DHL at CVG since 2009 exceeds $280 Million

Home to one of three DHL global super hubs; other hubs are located in Leipzig, Germany and Hong Kong DHL employs a local workforce of over 2,400 employees at CVG Processes 2.6 million cargo pieces a month and sorts 92% of all US delivery shipments as well as all Canadian, Mexican, and Latin American shipments at CVG Connects over 100 service centers and international gateways in DHL’s International network in the U.S. In 2015, DHL commenced a ramp expansion to accommodate an additional 16 aircraft to be

• pened in late October, 2016

DHL Hub at CVG

10

Cargo continues to perform well; 2015 comparable months driven by West Coast Port activity

Source: CVG Airport Statistics: Cargo Data

Monthly Cargo Trend

YOY Percent Change AUG 2015 – JUL 2016

11

Facilitate Economic Growth: Land Development Overview

12

2010 Initial Land Development Sites 11 Sites - Approximately 600 acres

13

Dermody/Wayfair Warehouse - 898,560 SF on 52 acres Completed June 2016

14

Dermody #2 – 260,000 SF Warehouse Facility on 22 Acres Construction Began August 2016

15

Dermody #2 16

Vantrust - 511,000 SF speculative warehouse on 41 acres Construction began September 2016

17

Robert Bosch (formerly ZF Steering) – 350,000 SF (2 buildings) on 32 acres Completed December 2011 –New Building (4)– 180,000SF Under Construction

1 2 3 4

18

Multi Tenant Cargo Building – West Service Area Projected Completion Fall 2017

19

Future Retail Development - 90,000 SF on 7 acres

20

Future retail or warehousing on 20 acres

21

Build Meaningful Partnerships: Relationship with OKI

22

CVG Partnership with OKI

• Grant Funding Approval – SNK Funds for road

improvements/expansions:

• Wendell Ford Blvd Extension ($2.646 million)
• Bushelman Blvd Widening ($1.16 million requested)
• South Airfield Road (now Aero Parkway) ($8 million)
• OKI Regional Freight Plan 2011 – Plan included input &

participation from CVG and DHL:

• DHL represents 50% of CVG landed weight
• CVG Master Plan Updates – OKI assists in Airport Master Plan

updates to provide regional perspective & coordination

• Airport staff can rely on OKI staff for professional expertise

23

24

Deliver Operational Excellence: Facilities & Construction Update

25

Demolition of Obsolete Facilities

26

Consolidated Rental Car Facility & Roadway Improvements

27

Consolidated Rental Car Facility & Roadway Improvements

28

DHL Ramp Expansion and Improvements

29

DHL Ramp Expansion and Improvements

30

Thank You Candace McGraw cmcgraw@cvgairport.com