DRO AIRPORT TERMINAL EXPANSIONAlliance Presentation – April 2013

Why We Need to Expand the DRO Terminal

DRO Airline YOY Performance

DRO 2013 vs. 2012 Schedule Comparison

DRO Performance Trends

Airline Industry Trends

DRO Air Service Projections

DRO Terminal Impacts & Importance• If 2013 projections are realized DRO will exceed the FAA 2020 passenger traffic

projections (and if our 2013 trend of 18%+/- ahead of last year continues…we will approach their 2030 projections!)

• In 2012, we passed Eagle/Vail to become the 5th busiest CO airport. In the next few years we can pass Grand Junction to become #4. Aspen is in our sights…which would make us #3 behind DIA & COS

• Many more passengers on equal (or slightly fewer) flights creates significant “peak” demand pressures on our terminal facilities

• Existing gate seating/holdrooms and secure-side restrooms are inadequate to handle current passenger traffic

• Second TSA screening lane and second baggage pick-up conveyor are needed to process peak passenger flows

• Existing restaurant and retail services are poorly located and do not meet today’s passenger expectations

• Our airlines need room to expand their operations (offices, ground service equipment storage, etc.) but have limited funds to lease newly constructed space

• Our airport terminal is an important economic development engine for our region and the first & last impression that we make on many visitors, business leaders and opinion-shapers

DRO Near-term Improvements• Already completed graphic/sign overhaul, ticket & rental car

counter renovation, wireless upgrade and overflow parking construction

• This spring TSA will install second carry-on security screener and Airport will construct Temporary Holdrooms

• This summer/fall we plan to relocate utilities and pave overflow & employee lots (subject to funding/financing)

DRO Terminal Expansion – Master Plan

DRO Terminal Expansion Project

DRO Terminal Expansion Project

POTENTIAL ADDITION OF SECOND BAGGAGE CAROUSEL

DRO Terminal Expansion - Exterior

DRO Terminal Expansion – Interior

DRO Terminal Expansion – Funding/Financing• TSA pays for 2nd security screening lane

(cost unknown) in spring 2013• DRO pays for temporary gate &

holdroom structure ($500,000+/-) which provides significant construction schedule compression and cost savings (and provides future airline GSE storage) in spring/early summer 2013

• Applied to FAA for AIP funding of utility relocation and reimbursement of temporary gate & holdroom structure ($2.6M+/-) in summer 2013

• Confirming feasibility and logistics of issuing enterprise fund revenue bonds backed by airport PFC revenue ($6.77M+/-) in 2013

• Also scheduled to rehabilitate Taxiway A ($6.6M+/- FAA funding) in 2013/2014

DRO Terminal Expansion – Next Steps• Finalize plans, bids & execution schedule for the

second TSA security lane and temporary holdroom/gate structure (funded by TSA and retained earnings)

• Finalize the terminal expansion financing plan and secure City/County approval to issue bonds

• Finalize the terminal expansion plans and bid documents and secure final costs with add/deduct alternates.

• Determine best timing to construct terminal expansion/renovate existing terminal that minimizes passenger/airline impact.

• Issue bonds and launch project

DRO Terminal Expansion – Q&A