speech - Regional Airline Association

RegionalAirlines –America’sConnectionto theWorldWichita Aero ClubJuly 17, 2012

Ford Tri Motor at Wichita AirportSafe. Professional. Reliable.

The TWA NetworkSafe. Professional. Reliable.

Regional Airlines – ThenSafe. Professional. Reliable.1980

5 Fun Facts About Our IndustrySafe. Professional. Reliable.1. Nearly 75% of US -- about 500 US cities -- servedonly by a Regional Airline2. 50% of all scheduled passenger flights flown by aRegional Airline3. 1 out of every 4 passengers flown by a RegionalAirline4. In 2011, Regional Airlines carried 161.4 millionpassengers - nearly double the # since 20005. 52,000 Regional Airline professionals

US Airports Served Exclusively byRegional AirlinesSafe. Professional. Reliable.

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger Miles

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger Miles

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengers

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengers

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengersAverage Seating Capacity

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengersAverage Seating Capacity

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengersAverage Seating CapacityAverage Passenger Trip Length

Safe. Professional. Reliable.Regional Airline Industry Growth 1980-2011Revenue Passenger MilesPassengersAverage Seating CapacityAverage Passenger Trip Length

Regional Partnerships – Now2012Safe. Professional. Reliable.Source: RAA July 2012

Safe. Professional. Reliable.Who’s Your Daddy? Well, Who Owns What …2002 20112Source: 2011 RAA

Safe. Professional. Reliable.The System we have developed:one ticket to take passengers anywhere in the world

Safe. Professional. Reliable.The System we have developed:one ticket to take passengers anywhere in the worldSanta FeSanta Fe – DallasAmerican EagleFlight 2850 – ERJ140...connectingDallas–Buenos AiresAmerican Airlines Flight 997 – Boeing 777DallasBuenos Aires

Safe. Professional. Reliable.The System we have developed:one ticket to take passengers anywhere in the worldAppleton–Chicago O’HareUnited Express ExpressJetFlight 5877 – ERJ145...connectingChicago O’Hare–BeijingAmerican AirlinesFlight 187 – Boeing 777Santa FeAppletonChicagoBeijingDallasSanta Fe – DallasAmerican EagleFlight 2850 – ERJ140...connectingDallas–Buenos AiresAmerican Airlines Flight 997 – Boeing 777Buenos Aires

Safe. Professional. Reliable.The System we have developed:one ticket to take passengers anywhere in the worldAppleton–Chicago O’HareUnited Express ExpressJetFlight 5877 – ERJ145...connectingChicago O’Hare–BeijingAmerican AirlinesFlight 187 – Boeing 777Santa FeSanta Fe – DallasAmerican EagleFlight 2850 – ERJ140...connectingDallas–Buenos AiresAmerican Airlines Flight 997 – Boeing 777AppletonChicagoDallasAtlantaMontgomeryMadridPragueMontgomery–AtlantaDelta Connection Atlantic Southeast AirlinesFlight 5506 – CRJ900...connectingAtlanta–MadridDelta AirlinesFlight 108 – Boeing 767...connectingMadrid–PragueCzech Airlines Flight 701 – Airbus 319BeijingBuenos Aires

ICT Nonstop Directlyto 6 of 9 Largest US HubsSafe. Professional. Reliable.Wichita(ICT)

ICT Nonstop Directlyto 6 of 9 Largest US HubsSafe. Professional. Reliable.Minneapolis/St. Paul(MSP)Denver(DIA)Chcago(ORD)Wichita(ICT)Dallas(DFW)Atlanta(ATL)Houston(IAH)

Safe. Professional. Reliable.Total Departures Comparable to Similar-Sized CitiesAIRPORTRANK(SMSA)DAILYDEPARTURESColorado Springs, CO (COS) 81 38Fresno, CA (FAT) 55 21WICHITA, KS (ICT) 86 34Baton Rouge, LA (BTR) 66 24Sarasota, FL (SRQ) 73 17Birmingham, AL (BGM) 50 10

Safe. Professional. Reliable.Regional/Mainline serviceShares Comparable to WichitaAIRPORTSMSARANKPOPULATIONSHARE OFRochester, NY (ROC)511,05M75 57Dayton, OH (DAY)62845,40077 47Charleston, SC (CHS)78682,10084 70Columbus, OH (CMH)321.85M68 45WICHITA, KS (ICT)86625,50075 59

Safe. Professional. Reliable.Major/Regional Share of Scheduled Service1980-2011Revenue Passenger MilesAvailable Seat MilesAverage Seating CapacityAverage Passenger Trip Length

Safe. Professional. Reliable.Major/Regional Share of Scheduled Service1980-2011Revenue Passenger MilesAvailable Seat MilesAverage Seating CapacityAverage Passenger Trip Length

Safe. Professional. Reliable.Seamless, Transparent Customer Service• Customer enjoys single point of contact for:• Reservations• Ticketing• Check-in• Baggage check & claim• Inflight experience• Airline identified entire trip - beginning to end• Making reservation• Ticketing/itinerary• Airplane door• Boarding pass• Inflight announcements & seatback cards

Safe. Professional. Reliable.How are we doing?3Source: DOT Reports

Safe. Professional. Reliable.The traveling experience for the passenger…Modern aircraftSeamless servicewith majorsCoordinatedschedulesBaggage checkOne level of Safety1980NONONONONO2010YESYESYESYESYES

Safe. Professional. Reliable.Safety SuccessesVoluntary safety programs-RAA MembersASAP 100%FOQA 98%ASIAS 93%DOD 99%VDRP 100%IEP 99%LOSA 85%AQP 85%

Safe. Professional. Reliable.

NBC News-Pilot SupplySafe. Professional. Reliable.http://www.msnbc.msn.com/id/21134540/vp/48180713#48180713

A Look Forward … PilotsPilot Supply & DemandSafe. Professional. Reliable.INCREMENTAL DEMAND FROM DUTY AND REST RULE CHANGEMainlineCarriersPilots% IncreaseFurloughReturnsDemand52,590 4,207 1,060 3,147RegionalIndustryPilots% IncreaseMainlineDemandTotalIncrementalDemand16,847 1,349 3,147 4,494Supply Issues• Boeing Survey – 460,000 new pilots next 20 years – 69,000 N. Am• Age 65 retirements/education $/”glamour” gone• 1,500-hour rule kicks in August 2013• Flight/Duty rules -2014Result• Service reductions to communities – bigger & smaller than Wichita.9

RAA 38 th Annual ConventionMay 6-9, 2013 MontrealSafe. Professional. Reliable.