Let’s Fly

The Case for Non-Stop Flights Between BWI and SRQ.

Number 20 worldwide, IESE Business School’s “Cities in Motion” Index.

Baltimore

s Home to 60 of Inc. Magazine’s 5,000 fast-growing companies. (2015)

Ranks #20 “Cities in Motion” Worldwide Index [IESE Business School]

One of the best markets for investment properties.

- HomeUnion

Number 2 on Zagat’s list of the year's "Top 17 Food Cities." (2015)

A record 23.8 million passengers for Baltimore-Washington Marshall International in 2015

Ranks 2nd, “Best Cities to Find Tech and Biopharmaceutical Jobs” [Forbes]

Baltimore Reborn

Baltimore. Where once were steel furnaces and shipyards, million-dollar condos and townhomes now look over the city’s waterfront. Where abandoned warehouses once stood, trendy restaurants and hotels now succeed. Where the tourist attractions of the Inner Harbor now reside, docks were once worked.

Charm City is a city undergoing a transformation.

This resiliency was in full evidence in 2015. Construction began in HarborPoint. Pandora’s national headquarters opened on West Pratt. Downtown’s rental occupancy rates improved to 94.8%. Two new hotels opened.

“This town has a ton going for it,” says part-time Baltimore resident and a professional futurist Patrick Tucker, “[Baltimore] is like Brooklyn 30 years ago—it’s nothing but potential.”

Much of Baltimore’s potential is derived from its natural and built environments: a deep-water port; highway and rail infrastructure; an international airport just 10 miles from downtown; and plentiful, affordable real estate.

There are other factors, as well. According to the CBRE Research report "Scoring Tech Talent," Baltimore ranks eighth as a top tech talent market based on the ability to attract and grow its tech talent pool.

“I’ve never been more bullish on Baltimore.”

- Steven Gondol exec director, Live Baltimore

The East Coast City That's

Becoming a Surprising

Hub for Tech Startups

This Inc. Magazine headline from January 2016 says it all. Baltimore is ideally positioned to become the next major hub of early-stage tech on the East Coast. Why?

Geographic positioning Baltimore is less than an hour by train from Washington, DC and Philadelphia, less than three from New York and less than four from Boston. Proximity – without high operational costs.

Educated talent Academic institutions like Johns Hopkins, University of Maryland and a host of other universities in the nearby Washington, D.C. area guarantee that there are plenty of engineers and designers graduating with degrees each year.

Entrepreneur-friendly government Baltimore benefits from state-inspired investment, and from being very close to the source of federal contracts and research grants.

Venture capital According to the Baltimore Business Journal, Charm City-based companies accounted for 8 of the 10 biggest venture capital deals in the state during the first quarter of 2016.

The New “Cool” City for

Millennials

Recent census data has quantified this explosive growth. The number of college-educated people ages 25 to 34 living within three miles of Baltimore's central business district increased 92 percent from 2000 to 2010.

Greatist lists Baltimore as the 10th best city for twenty-somethings. Why? Walkable neighborhoods, a vibrant bar and restaurant scene, a relatively low cost of living and a slew of new, innovative businesses that promise young workers the immediate chance to make a difference.

As Harvard economist Edward Glaeser told the New York Times, “There is a very strong track record of places that attract talent becoming places of long-term success. The most successful economic development policy is to attract and retain smart people.”

Millennials love to travel. They travel more often than other generations for business and leisure. They already spend roughly $200 billion a year on travel, and that will only increase.

- The G Brief

The New “Cool” City for

IESE Business School’s

Baltimore Offers More

It is not just Millennials who are moving to Charm City. Empty Nesters and job seekers are moving here, as well. And with good reason. Here are just a few of many accolades for life in Baltimore:

• Baltimore is ranked #10 in AARP’s “Livability Index”

• No. 5 – “Best Cities to Find Work” [careercast.com]

• No. 2 – “Best Cities to Find Tech and Biopharmaceutical Jobs” [Forbes]

• No. 2 – “Top Ten Towns for Working Toward a Home Purchase” [Move Inc.]

• No. 3 – Forbes Magazine’s best shopping cities list

• No. 9 – Biggest cities for art [American Style]

• No. 2 – Zagat’s "Top 17 Food Cities"

• One of the "World's 15 Best Waterfront Cities" [Fodor’s]

The result of this worldwide recognition?

An unprecedented construction boom. New homes, new restaurants and retail, new office spaces. With $2 billion in economic activity expected in Baltimore over the next two to three years, Charm City is quite the place to be.

“The folks being attracted here now are actively building the kind of city they want to be a part of—and that will make Baltimore great for many years to come.”

- Baltimore Magazine, January 2016

Baltimore is Building

Building apartments and homes. According to the city's Planning Department, more than 5,360 homes in projects with 15 or more units were completed in in the last five years, with 3,232 more units currently under construction.

Rebuilding neighborhoods. Today, Locust Point, Federal Hill, Hampden and Canton are vibrant communities where young professionals and empty-nesters mix with lifelong residents.

Three projects that are transforming Charm City:

Harbor East Situated on the waterfront just east of the Inner Harbor and just west of historic Fell’s Point, Harbor East is 12 square blocks of restaurants, boutiques, hotels and homes.

Harbor Point Once the largest downtown waterfront site yet to be developed, Harbor Point will be composed of 3 million square feet of mixed-use space on 27 acres.

Port Covington (concept drawing to right) Located in South Baltimore, plans for Port Covington include a new campus for sports apparel maker Under Armour. With 7,500 residential units, Port Covington is the biggest single housing project in Baltimore’s history.

"I don't know if we've ever seen such a period of intense growth like we've seen over the past seven months."

- Bill Cole Baltimore Development Corp president

Baltimore-Washington

Corridor

The Baltimore-Washington Corridor sits at the heart of America’s fourth largest marketplace. Positioned between the Nation’s capital, Washington, DC, and the renascent port city of Baltimore, the corridor boasts:

• Total population: 9.3 million

• Noted institutions for higher education, including Johns Hopkins, University of Maryland, American University and Georgetown University

• Percent of Population 25 Years and Over with Advanced Degree? 20.7%

• A rank of first per capita in the number of knowledge workers in professional services, information technology, education and research

• Highest-income population in the U.S.

• 13,000 lane miles of Interstate highways, and a port that ranks 9th in total dollar value of cargo and 13th for cargo tonnage for all U.S. ports.

Which is why over 75 corporations have located their headquarters in the Baltimore-Washington corridor, including Black & Decker, Capital One, Geico, General Dynamics and T. Row Price

"It is essentially impossible to identify a region in the nation, that is as technologically dynamic, recession-resistant, prosperous, educated and that enjoys such elevated quality of life [as the Baltimore/ Washington Corridor]."

- Economist Anirban Basu

Maryland

With a population of 5.976 million, Maryland ranks at or near the top for many key economic indicators.

Maryland:

• Ranks first for concentration of businesses and jobs in science, technology, engineering, and mathematics.

• Has the highest concentration of employed doctoral scientists and engineers.

• Has the highest median household income; $73,971 38% above the national median.

• Is home to 3 of the top 20 large counties in the nation for median household income; Howard County ($107,490) Montgomery County ($97,765) and Calvert County ($95,110)

• Ranks 5th in the nation in per-capita disposable income ($47,222).

• Has one of the highest levels of per-person consumer spending in the country, ranking 9th at $41,000.

Maryland residents are well-educated, upscale professionals. Attributes identical to another profile – that of the frequent air traveler.

Fact: 66 million travelers passed through BWI, Dulles and Reagan National airports in 2015. Only Hartsfield-Jackson in Atlanta, LAX and Chicago O’Hare carried greater passenger traffic than Maryland’s regional airports.

Baltimore: A City That

Travels

The Baltimore-Washington region is well-served by three airports; Dulles International, Reagan National and Baltimore-Washington Thurgood Marshall International.

Of the 66 million passengers who passed through these airports in 2015, 37% were BWI’s.

BWI Thurgood Marshall

Chosen Best Airport of its size by the Airports Council International, in 2015 Baltimore-Washington Thurgood Marshall International…

Was utilized by 23.8 million passengers

A 6.8% increase in passenger traffic over 2014

A record for BWI traffic

Making BWI the 23rd busiest airport in North America.

Having just set seven straight monthly passenger records, BWI’s passenger figures for the months of Spring Training are equally impressive.

February: 1.5 million passengers (+3.6% YTY)

March: 1.4 million passengers (+4% YTY)

Not just Charm City

travelers

Baltimore-Washington Thurgood Marshall International is the airport of choice for travelers throughout the Mid-Atlantic region, not just Baltimore.

As David Stempler, Washington airline consultant and former executive director of the International Association of Airline Passengers observes, "Because of its low fares, BWI draws people from Delaware and southern Pennsylvania." Tom Parsons, CEO of Bestrates.com adds, “(BWI) is starting to cycle more traffic from Washington, D.C., too."

BWI & Southwest Airlines

Southwest is, by far, the dominant carrier at Baltimore-Washington Marshall. Because BWI is a fortress hub for Southwest, the airline achieved a 71% market passenger share in 2014. With more than 220 daily flights out of Baltimore-Washington Marshall during peak periods, BWI is Southwest’s second largest airport.

How important is Southwest to Baltimore-Washington International? When Southwest started in 1993, some 9.4 million passengers flew through BWI. Last year, the airport's passenger traffic soared above 23 million. That's a 140 percent increase.

“BWI is a very cost effective airport. We’re trying to grow and we’re working with the airport to make investments for the future.”

- Southwest CEO Gary Kelly

The Power of Orange

& Black

The Baltimore Orioles is a historic MLB franchise, with 8 American League East championships, 6 American League championships and 3 World Series titles.

From 1966 to 1997, the Orioles were the winningest team in baseball. With a Wild Card berth in 2012 and a first place finish in the AL East in 2014, the Birds have returned to their winning ways. Fans are expressing their renewed enthusiasm for their Orioles – and flexing their spending power.

Orioles ticket revenues (2013): $52 million

Concession sales (2013): $14 million

Orioles merchandise sales (201_):

This buying power, along with their passion for all things Orioles and Orioles-related, makes targeting Orioles fans a marketing priority. And makes Orioles Park at Camden Yards a most desired marketing environment for world renowned companies to showcase their brands.

“This is the loudest crowd I’ve heard in sports.” - TBS broadcaster Craig Sager

on Baltimore crowd noise reaching 120 decibels during the 2012 ALDS.

The Ballpark That Forever

Changed Baseball

When Oriole Park at Camden Yards officially opened on April 6, 1992, a new era of Major League Baseball was born. The ballpark was brand new, but still old-fashioned. State-of-the-art, yet quaint.

OPACY has won numerous awards, including:

Gold Award, International Association for Sports and Leisure Facilities

Honor Award for Architecture, American Institute of Architects

Honor Award for Urban Design, American Institute of Architects

Merit for Design and Planning, American Society for Landscape Architects

StadiumJourney, whose annual survey lists the 100 best stadium experiences, has ranked Oriole Park No. 1 the past two years – with perfect scores both times.

Recent Attendance and Milestones:

2.32 million during the 2015 season

First MLB ballpark to reach 50 million fans in just 17 seasons

Over 65 million have enjoyed Orioles baseball at OPACY

"Building Camden Yards was one of the most important things that happened to baseball in the last 20 to 25 years. It changed the whole dynamic.”

- Bud Selig, former MLB commissioner

Orioles Fans Travel

In the seven years since the Orioles moved to the team’s spring training facilities from Fort Lauderdale to Sarasota, more than 765,000 fans have enjoyed Orioles baseball at Ed Smith Stadium.

During the 2016 Spring Training Season:

The Orioles drew a record-breaking average of 7,439 fans per game at Ed Smith Stadium

That’s an astonishing 99% of stadium capacity

In 2016, over 119,000 fans attended games at Ed Smith Stadium, which hosted a franchise-record 11 sellouts.

Does Orioles Spring Training draw fans from Baltimore and the Mid-Atlantic region to Sarasota? Absolutely.

For the first three months of 2015:

26,000 people from the Mid-Atlantic region visited Sarasota

That’s an increase of 128% over 2014

Making the Mid-Atlantic region, for the first time ever, Sarasota’s #1 origin-of-visitor location

The Orioles: Committed to

the Sarasota Community

This commitment includes:

• 25,000 participants and spectators who visit the Orioles facilities each year for baseball clinics, youth sports leagues and other family-friendly and charitable events

• Arts in the Ballpark. 10,000 have attended this event series at Ed Smith Stadium since 2013

• Community-related events: o All Faiths Food Drive o Mayors' Feed the Hungry Program o The Orioles Health & Fitness Challenge o Birdland Golf Classic benefiting the Miracle

League

To date, the Orioles have made $2.6 million in cash and in-kind contributions to the Sarasota Community.

The Economic Impact?

An economic impact analysis commissioned by Sarasota County Government concluded that the Orioles’ presence through Spring Training and year-round baseball activities generated approximately $81 million in the Greater Sarasota community in 2015.

“The Orioles are proud that our $81-million economic impact in the region far exceeds industry and expert projections,”

- DAVID ROVINE Vice President, Orioles-Sarasota.

Research: Orioles Fans

Want Non-stop Flights

Following the 2016 Spring Training season, the we surveyed 500 Orioles Spring Training Ticket holders. This is what they told us about their Orioles-Sarasota experience(s). Since 2010, how many times have you travelled to Sarasota for Orioles Spring Training:

2 or more times: 56.7%

3 or more times: 39.7%

4 or more times: 28% 87.3% say they plan to travel to Sarasota for Orioles Spring Training in 2017 How long do Orioles fans stay in Sarasota for Spring Training?

73.9% stay 4 days or longer

43.6% stay 6 days or longer

13.3% stay 11 days or longer Which airport is the choice of departure for Orioles Spring Training ticket holders?

81.9%: Baltimore-Washington Thurgood Marshall International

"Sure, it would be easier if [Southwest] flew to Sarasota, like AirTran did.”

- Hal Hackerman Orioles fan and Spring Training traveler

Which Florida airport do Orioles Spring Training ticket holders currently fly to?

Tampa International Airport (TIA): 69.2%

Sarasota-Bradenton International (SRQ): 9.4%

Southwest Florida International (RSW): 7.7%

Orlando International (MCO): 7.2%

Which airline do Orioles Spring Training ticket holders fly?

82.3%: Southwest Airlines

How inconvenient do Orioles fans find the lack of non-stop airline flights between BWI and SRQ?

Very inconvenient: 44.2%

Somewhat inconvenient: 27.6%

If an airline offered non-stop flights between Baltimore-Washington International and Sarasota, how likely would you choose these non-stop flights over other flights to another airport?

Very likely: 59.4%

Somewhat likely, most likely, very likely: 89.4%

If an airline offered non-stop flights between BWI and Sarasota, would you be willing to pay more for this non-stop flight service?

66% said they would be willing to pay more for this service

When Southwest Commits

to Non-Stop Service

Between BWI and SRQ

Southwest will need high-powered, well-targeted marketing platforms to promote these market exclusive flights.

This is where MASN (Mid-Atlantic Sports Network), the network of the Baltimore Orioles, comes into play. MASN is an incredible marketing platform: • Reaching 7 million homes • In 7 states, including the District of Columbia • 18 Television DMAs • Orioles gamecasts on MASN average over 320,000

Adult 18+ fans throughout the Mid-Atlantic region

Orioles' TV ratings on MASN among highest in MLB.

- Headline in Baltimore Business Journal

The Opportunity

Partnership Brings

The Orioles and MASN have multiple platforms available to target market Southwest Airlines’ non-stop service to Sarasota, including the Orioles Radio Network, 40 radio stations carrying all 162 O’s games.

How will the Orioles, MASN and the Orioles Radio Network wrap Southwest’s BWI to SRQ Non-Stop Service in Orange and Black? Here are just a few ideas:

• Spots/Promotions (Orioles TV & Radio)

• Integrated features on Orioles TV broadcasts

• OPACY Ballpark Signage

• In-stadium Promotions

• Ties to Orioles Community Outreach

• Branded MASN Social Media posts

• Branded MASN Mobile Alerts

• Banners and homepage takeovers on MASNsports.com

• Multi-platform contests

• Orioles suites, tickets and VIP experiences

The Power of Sports

Marketing

Sports are a source of fan passion, with the power to drive significant consumer brand affinity.

Live sports are well-suited for the new multiscreen world. Technology has created a virtual “sports bar”, providing ’round-the-clock content and engagement.

Sports marketing delivers a massive and highly engaged audience game after game. Americans love sports – the original reality television.

Orioles fans have a need. Non-stop flights between Baltimore-Washington Thurgood Marshall International and Sarasota Bradenton International.

Southwest is uniquely positioned to address that need. And the Orioles and MASN are uniquely positioned to make Orioles fans acutely aware of Southwest’s Orioles-friendly solution.

Opportunity presents itself.

Southwest Airlines, the Orioles and MASN – Let’s fly.

Let’s Fly

Thank you

Report for Orioles Sarasota Travel Experience Questionnaire

1. Since 2010, how many times have you traveled to Sarasota, Florida to attend Orioles Spring Training games?

2. During your visit(s), how many Orioles games in Sarasota do you typically attend?

Orioles fans are loyal fans, traveling to Sarasota:

Five or more times: 20%

Three or more times: 39.8%

Two or more times: 43.3%

Five or more games: 7.9%

Three or more games: 31.9%

One or two games: 68.2%

3. Do you see the Orioles play at other team’s Spring Training facilities, as well?

4. Which team’s stadiums and towns have you traveled to for Orioles Spring Training Games?

44% of Orioles Spring Training ticket holders see their favorite team play at stadiums other than Ed Smith Stadium.

5. How long is your typical visit in Sarasota?

6. When visiting Sarasota for Orioles Spring Training games, what accommodation arrangements do you make?

Orioles fans come to Sarasota for more than a weekend:

73.9% stay 4 days or longer

43.6% stay 6 days or longer

13.3% stay 11 days or longer

7. If you travel by air, what is your departure airport?

8. What is your destination airport in Florida?

Orioles fans overwhelming favor one airport for their Sarasota visit:

81.9% use Baltimore-Washington Thurgood Marshall International

9. What airline(s) do you fly on when you travel to Florida for Orioles Spring Training?

10. Currently, there are no non-stop airline flights from BWI to Sarasota. How inconvenient do you find this lack of non-stop airline flights?

Southwest Airlines is the airline of choice for Orioles fan visiting Sarasota:

82.3% fly Southwest Airlines

44.2% Very inconvenient

71.8% Somewhat to very inconvenient

11. If an airline offered nonstop flights between Baltimore-Washington International and Sarasota, how likely would you choose those flights over other flights to another airport?

12. If an airline offered nonstop flights between BWI and Sarasota, would you be willing to pay more for this nonstop flight service?

Nearly 6 in 10 Orioles fans would be “very likely” to select a non-stop flight from BWI to SRQ.

13. One last question, are you planning to travel to Sarasota in 2017 to attend Orioles Spring Training Games?