overview of air service in the treasure valley. air service industry overview current air service...
TRANSCRIPT
Overview of Air Service in the Treasure Valley
• Air Service Industry Overview
• Current Air Service & Airport Comparisons
• Future Opportunities
• Initiatives and Action Steps
Key Discussion Points
Air Service Industry Overview
Airlines Decrease Capacity System Wide to Increase Load Factor and Yield
Air Service Industry Overview
Industry Designed Based on Relatively Inexpensive Fuel
5-Year Average US Price per Gallon of Jet Fuel
Air Service Industry Overview
Industry Losses – Not Sustainable Long Term
Air Service Industry Overview
Four Airlines Account for Approximately 85% of the Market
Ten Major Carriers in 2000 – Four Today
Boise Air Service Overview and Opportunities
Route Map
• Service by 7 airlines• 18 non-stop destinations
• Service by 8 airlines• 21 non-stop destinations
2002
2007
• Service by 6 airlines• 17 non-stop destinations
Route Map - 2014
BOI Top 12 Destinations
Strong Competitive Environment with No Single Dominant Carrier
Airline Passenger Share at Boise
Southwest
Alaska
Delta
Allegiant
United
USAirways
BOI Traffic/Capacity Trends
YE Jul 2013 capacity down 5% with passengers down 4% = improved load factors.
2012 Airline Seats per Resident in MSAs with Populations of 550,000-750,000
City/MSA 2011 MSA Population 2012 Seats Seats per Resident
Fort Myers, FL 631,330 4,348,031 6.9
Boise, ID 627,664 1,661,018 2.6
Charleston, SC 682,121 1,679,559 2.5
Little Rock, AR 709,901 1,577,604 2.2
Des Moines, IA 580,255 1,263,669 2.2
Syracuse, NY 662,553 1,331,420 2.0
Colorado Springs, CO 660,319 1,110,411 1.7
Greensboro NC 730,966 1,215,618 1.7
Madison, WI 576,467 955,349 1.7
Harrisburg, PA 552,911 900,591 1.6
Akron, OH 701,456 1,139,634 1.6
Wichita, KS 625,526 967,455 1.5
Knoxville, TN 704,500 1,070,739 1.5
Sarasota, FL 709,355 767,362 1.1
Wilkes-Barre/Scranton, PA 563,223 347,176 0.6
Augusta, GA 561,858 326,745 0.6
Toledo, OH 650,266 94,110 0.1
Stockton, CA 696,214 70,855 0.1
Youngstown, OH 562,739 38,308 0.1
Seat Per Capita Comparisons
Boise exceeds all comparison markets except Spokane in seats per capita for YE 2Q 2013.
Only 2 comparison markets have lower average fares than Boise: Spokane and Dayton.
O&D Passenger and Airfare Comparisons
Year-over-Year Capacity growth will occur in every month (except March).
BOI Forward Looking Schedule
Recent Announcements / Additions
• Increased Frequencies to Existing Hubs
• Non Stop Service to San Diego (Alaska Airlines)
• Non Stop to Salt Lake City (Alaska Airlines)
• Non Stop Service to Chicago Midway(Southwest Airlines) Seasonal
Things to Watch
• Spokane – Only Point to Point Service
• New Routes – San Diego and Chicago MDW
• New Competition – Alaska to Salt Lake City
• Today’s Airline Environment Use It or Lose It!
• Market Demand
• Yield per Available Seat Mile
• Cost per Available Seat Mile – Fuel is a major driver
• Aircraft Availability – size and type
• Route Stage Length
• Fit within airline business strategy
• Industry opportunities and challenges
• Airport Costs
Factors Influencing Service Decisions
American/USAirways Merger Opportunities
Future Development Opportunities
• Increased Frequencies to Existing Hubs
• Domestic Airlines Are Not Adding Net New Aircraft (Replacement)
• Build Service Through Increased Frequencies and Larger Aircraft Sizes
• One Flight at a Time
Next Steps
• Utilize Existing Service
• Provide Information on Travel Needs
• Support Air Service Recruitment Efforts
Three Key Ways to Support Air Service
Thank You!
Contact InfoRebecca Hupp
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