Clint Torp, Assistant Airport Manager

608-789-7465torpc@cityoflacrosse.org

Today's Topics

• General Information • Local airline service • Airline struggles and resulting general

business model adjustments• Capital Improvement Projects • Future Direction

General Information

• Airport is ranked as the 210th busiest airport in the nation based on passenger enplanements, there are currently 538 Commercial Service Airports in the U.S.

• Airport operates as a financially self sufficient utility for both Operations and Maintenance as well as Capital Improvement Budgets.

Economic Impact

• The La Crosse Municipal Airport provided over $28 million in economic output, supported 331 jobs and contributed $7.8 million in wage income to the local and state economy in 2004.

Airline Service

• Currently 12 daily arrivals and departures

• American Airlines serves Chicago O’Hare 5 times daily

• Delta Airlines serves Minneapolis/St. Paul 5 times daily & Detroit 2 times daily

Current Airline Fleet Mix

• All regional jet service – 50 to 76 seats

Passenger Trends

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009100,000

105,000

110,000

115,000

120,000

125,000

130,000

Total Enplanement Trends

Year

Enpla

nem

ents

Load Factors and Available Seats

• 180,866 Seats Available in 2009• 105,341 Passengers Enplaned in 2009• 58.2% load factor in 2009• 55.4% load factor to date in 2010

6,500

8,500

10,500

12,500

14,500

16,500

18,500

2009 Seats vs. Enplanements

Janu

ary

Febr

uary

March

April

MayJu

ne July

Augus

t

Sept

embe

r

Octob

er

Novem

ber

Decem

ber

7,5008,5009,500

10,50011,50012,50013,50014,50015,50016,50017,500

2010 Seats vs. En-planements

Airline Industry Struggles

• Airline industry had profits of $1.9B in Q2 on $31.7B in revenues (less than 6% margin)

• IATA expecting $2.5 Billion in Airline Profits in 2010 (75% of pre-recession levels)

• Airlines have lost nearly 100B in capital since 9-11

• Recent Fuel Prices Have Helped

Industry Reactions

• Domestic flight reductions• Fare increases• Ala-carte pricing• Reduced customer service• Overall attempt to reduce competition,

increase costs efficiencies, and increase fares industry wide

Airlines Serving La Crosse

• Delta• Best quarterly profits in a decade at

$549M• Recently merged with NWA

• American• Lost $10.7M• Only legacy airline yet to file bankruptcy

• Both Airlines have indicated they intend on continuing to serve our market

Mergers

• The airline industry is scrambling to reduce available seats, drive up ticket prices, and realize any available cost synergies possible

• Merging allows airlines to reduce duplicate flight frequencies as well as realize the benefits of complementary routes

• Delta and Northwest have completed merger and is now operating as Delta

• United and Continental have announced merger, will operate new airline as United

United/Continental

Current Objectives

• Retain current airline service• Load Factors• Military Usage

• Enhance value added services• Free Wireless• Terminal Enhancements

• Minimize airline operating expenses• Simple Fee Structure

• Prepare infrastructure for future service expansions

Airport Master Plan

• 20 year plan to guide development which was adopted by the City Common Council Feb 2003.

• Development is undertaken with heavy considerations for improvement to safety and operational considerations.

• Through the implementation of the Master Plan the airport has been able to conduct development with a systemic approach towards continued improvement.

Projects

• The La Crosse Airport has performed over $33 million in projects in the last 8 years

• Approximately $10 million inprojects expected in2011

Major Projects Completed

2004 –Reconstruction of Taxiways F, B, G, and H2005 –Reconstruction of Taxiway A & Security

Improvements2006 – Taxiway F, Phase One2007- Reconstruction of Taxiway A, E & South

Ramp2008 – Reconfiguration of Runways 18/36, 3/21

and associated taxiways2010 – Continuation of Taxiway F, Terminal Hold

Room Remodel/Enhancement

Terminal Remodel

Upcoming Capital Improvements

• 2011• Taxiway Foxtrot Extension Completion• Airport Road Reconstruction• Terminal Loop Reconstruction• Parking Lot Expansion

Taxiway Relocation

Trends for the Future

• Expect increasing ticket fares system wide• Increased national congestion from

reduction in available seats• Continued mergers will result in less

completion• Future service will depend on local airport

use, what can I do?• Fly locally, higher passenger numbers will

provide the necessary statistics to attract additional service

Closing Remarks

• La Crosse is not projecting significant changes in the near future and expects to be served by both Delta and American in the near future

• We the local residentsand business hold thekey to future expansionand development

Clint Torp, Assistant Airport Manager

608-789-7465torpc@cityoflacrosse.org

QUESTIONS?