Post on 21-Dec-2014
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C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Connecting the Carolinas to the World
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
2010 IATA Eagle Award
“Charlotte Douglas has the winning combination: low costs, low debt, and solid service levels. The strong financial and operational model at Charlotte Douglas works well for airlines, passengers, and the airport. There can be no greater accolade than the continued support from its major airline customers through this Eagle Award.” (Giovanni) Bisignani, (Director General and CEO, IATA)
• The International Air Transport Association (IATA) singled out CLT’s achievements with the prestigious Eagle Award in June 2010
• Recognizes outstanding performance in customer satisfaction, cost efficiency and continuous improvement
• CLT joins exclusive group of only five U.S. airports to receive award
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Airport Mission
“Charlotte Douglas International will be the preferred airport and airlinehub by providing the highest quality product for the lowest possible cost.”
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Airline Cost Per Enplaned Passenger
$0.00
$4.00
$8.00
$12.00
$16.00
$20.00
$24.00
$28.00CL
T To
tal
CLT
O&D PH
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PIT
DEN-
UA
DEN-
No U
A
ATL
ORD LA
X
DFW
SFO
MIA
STL
FLL
TPA
DTW
CVG
CLE
IND
DAL
CMH
ABQ
PBI
RSW
ANC
SDF
Group Median
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
5
CLT Enplanements
0
2
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Mill
ions
of P
asse
nger
s En
plan
ed
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Airport Fast Facts• 2nd Largest Airport on Eastern Seaboard
• 677 Daily Departures (February 2011)
• Non-stop service to 134 destinations; 33 int’l
• Over 18,000 Employees
• 529,101 aircraft operations in 2010
• 38,254,207 passengers in 2010;
10.7% increase over 2009
• Nationwide Rankings 2010:• 7th in Movements/Operations• 11th in Passengers
• Worldwide Rankings 2010:• 7th in Movements/Operations• 25th in Passengers
* Rankings for 2010 based on preliminary data
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
US Airways CLT Direct Routes
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Southwest RDU Direct Routes
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
• The role of Airline Alliances
• Extensive Capacity Reductions
• Future Fleet Demand
Industry TrendsEmerging Hub Trends in the U.S.
“Hub access is the name of the game…”
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Emerging Hub Trends in the U.S.
The Role of the Alliance
• Passengers have access to worldwide destinations through airline partners in the alliance
• Allows airlines to funnel passengers through hubs rather than extensive point-to-point international destinations
• Allows airlines to sell additional tickets by routing passengers through the alliance network
• Reduces redundancy of routes by multiple carriers
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Capacity Reductions
• Airlines taking control of their fate through capacity rather than pricing
• Volatility of fuel costs
• Effective in reducing costs
• Seat capacity system-wide fell 9% in 2009; forecasted to fall another 10% in 2010
• Focus on more hub activity rather than point-to-point service
• Capacity cuts include:
• Older aircraft with high maintenance costs
• 50 and 70 seat aircraft
Emerging Hub Trends in the U.S.
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Much higher demand for replacement aircraft than new aircraft over next 18-20 yrs
Emerging Hub Trends in the U.S.Fleet Demand in North America
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Emerging Hub Trends in the U.S.What does this mean to CLT?
• Airlines will continue to focus on hub airports as they look for ways to return to profitability
• Airports must focus on the metrics that make an attractive hub for the airlines
• Geographic location
• Expansion Capabilities
• Financial Structure
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
The Economic Development Platform• Generates nearly $10 billion in annual economic impact• 100,000 jobs are directly or indirectly supported by the Airport
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
The Economic Development Platform
15
117
4,000
10,000
0
2,000
4,000
6,000
8,000
10,000
12,000
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Mill
ions
Economic Impact
1,342
71,392
100,716
0
20,000
40,000
60,000
80,000
100,000
120,000
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
Employment
Total Economic Impact1976 - $117,000,0001996 - $4,000,000,0002004 - $10,000,000,000
Employment 1976 - 1,342 jobs1996 - 71,392 jobs2004 - 100,716 jobs
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Expansion Plans
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Planned New Intermodal Facility
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Intermodal Train Facility
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Global Movement of Goods
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Existing Intermodal Facility
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
West Blvd/I-485 Interchange
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Environmental
Intermodal trains produce about one third as much CO2 per ton-mile as trucks
C H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R TC H A R L O T T E D O U G L A S I N T E R N A T I O N A L A I R P O R T
Connecting the Carolinas to the World
Charlotte Chamber of Commerce
Transportation Summit 2011
April 8, 2011
4Q10 / 2010 Highlights
• 2010 profit of $447M* - second highest profit in Company history
• 4Q10 profit of $28M - first 4Q profit since 2006• $2.3B in total cash, $364M restricted• Accrued $47M in profit sharing for 2010• 4Q unit costs* down 1.7% on 4.2% increase in flying• Outstanding operational performance - $24M in
operational incentive payouts• A la carte baggage fees generated $483M in 2010, up
$81M vs. 2009
* Excludes special items
US Airways - 4th Largest Major Network Airline
4Q10 YTD System Capacity
175.7
124.2
64.873.6
26.2 21.0 18.2
190.7*
0.0
50.0
100.0
150.0
200.0
250.0
Tota
l ASM
s (B
il)
Major Network Airlines
Low Cost/Other
* Pro forma (United + Continental)
Capacity Discipline
Source: SEC filings and company reports
(13.1%)(14.4%)
8.0%
(20.0%)
(15.0%)
(10.0%)
(5.0%)
-
5.0%
10.0%
Legacy US LCC3Q 2010 YOYCapacity Change
Domestic ASM Changes(2010 vs. 2006)
• Since 2006 US has removed significant domestic capacity• And that trend continued into 2010
3Q10 YTD Change in Total ASMs (YOY)
6.7%
4.1% 3.8%
1.1%0.5% 0.2% 0.1%
-0.2%
-1.1%-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
2011 EstimatedSystem Capacity Growth*
7.8% 7.3%
4.9%3.3%
2.0%0.5%0.8%
Ind. Avg = 2.3%
0.0%
4.0%
8.0%
12.0%
Industry Capacity Outlook
• Industry capacity* growth between 2 and 3 percent in 2011• US Airways’ system capacity growth of approximately 2 percent • Domestic capacity growth not expected to exceed GDP growth
* J.P. Morgan industry estimates, Feb. 2011. US Airways capacity growth based on company guidance
Seismic Changes in Industry Landscape
• New a la carte revenue streams– Baggage fees– Choice seating– In-flight charges
A la Carte Revenue
• Recent Initiatives:– GoGo® Inflight WiFi– Choice Seats– Online bag pre-pay– Premium snacks and beverages– Power-Nap Sack
• Generated more than $500M in revenue in 2010
A La Carte Revenue($ mil)
$165
$514 $425
2008 2009 2010Bag Fees Other A La Carte
Focused Operational Performance Improvements
2007 2008 2009 2010
Delta Northwest US Airways US Airways
Northwest US Airways United United
Continental Delta Northwest American
United American Delta Delta
American United American Continental
US Airways Continental Continental
2007 2008 2009 2010
Delta US Airways United United
Continental Northwest US Airways US Airways
United Delta Northwest Continental
Northwest Continental Continental American
American United Delta Delta
US Airways American American
2007 2008 2009 2010
Northwest Northwest Northwest US Airways
Continental Continental Continental Continental
United US Airways US Airways Delta
American United United United
Delta American American American
US Airways Delta Delta
2007 2008 2009 2010
Continental Northwest Continental American
Northwest Continental American Continental
American American Northwest US Airways
Delta Delta US Airways United
United United United Delta
US Airways US Airways Delta
Mishandled Bags Customer Complaints
Note: Figures are through December 2010. Source: U.S. Department of Transportation
On-time Departure Numbers On-time Arrival Numbers
Focused on:
•Started boarding early
•Invested in ticket scanners
•Closing door early
•Invested in baggage scanners
•Added block time
•Invested in GSE in key cities
•Reviewed daily and adjusted
2010 Stage Adjusted CASM(excluding fuel and special items)
9.58¢
8.37¢
Network US
US Positioning vs. Other Legacy Carriers
15% Advantage
Stage Adjusted to US Airways YTD average stage length of 981 miles;
Network includes new United, American, Delta; Low Cost includes AirTran, JetBlue, and Southwest
2010 Stage Adjusted PRASM
13.77¢
12.20¢
Network US
13% Disadvantage
US Airways System Facts
2008 2009 2010
Jet Fuel/Gal $3.18 1.76 2.25
Employees 34,000 32,381 31,367
Destinations 230 210 201
Daily Flights 3,700 3,256 3,200
US Purchased 1.4 Billion Gallons of Fuel in 2010
A $1 Increase in a Barrel of Oil Costs US $35 million per Year
3.30
4-05
Charlotte Facts
4Q08 4Q09 4Q10Daily Flights 550 575 624
Employees 5,955 6,030 6,637
Nonstop Destinations 121 126 133
Domestic 104 102 106
International 17 24 27London Paris/Rio RomeFrankfurt
Extensive Caribbean Network
Madrid and Dublin in MaySao Paulo in November
Cities* with Hubs (Population)
1. NYC 19.12. Los Angeles 12.83. Chicago 9.64. Dallas 6.45. Philadelphia 6.06. Houston 5.97. Miami 5.58. Washington 5.59. Atlanta 5.510. Detroit 4.4
11. Phoenix 4.412. San Francisco 4.513. Seattle 3.414. Minneapolis 3.315. Denver 2.616. Cleveland 2.117. Cincinnati 2.218. Charlotte 1.719. Milwaukee 1.620. Memphis 1.321. Salt Lake City 1.1
*1,000,000 people
What Do These Cities Have in Common
• Baltimore• Pittsburgh• Portland• Kansas City• Las Vegas• San Jose• Columbus• St. Louis
All Larger in Population than
Charlotte
Former Hubs
New Envoy Suite
Announcements/Statements
• Introduced electronic boarding passes in Las Vegas, and Charlotte
• Adding MAD and DUB in May• Adding Sao Paulo in November• Hiring 500 (recall of furloughed employees)
and up to 200 for WS Call Center• Adding F/C to Express Fleet• Ranked #1 in Wichita State/Purdue AQR
The Industry Environment
• Looking Ahead– 2011 industry capacity anticipated to be up
approximately 2.5%– Industry in early rebound stages with robust business
travel and recovering leisure travel– Wall Street very concerned about volatile fuel prices,
pace of economic recovery, and high unemployment
vWild Card--- Middle East Unrest
Summary
• US Airways is well positioned and is outperforming relative to the industry:– Top tier operational performance– Reduced capacity– Aggressive cost management – Industry leading financial performance and margin improvement
• US Airways will continue to look for ways to:– Enhance the product and optimize assets– Invest and build upon our safety culture
• We Continue to Invest in Charlotte
106.8%
84.5%
64.0%
41.6%
21.3%13.6% 12.8% 10.7%
0.8%0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Stock Price Performance
2010 Relative Return
$4.84 to $10.01
Questions?