Charlotte Douglas International Airport Achievements 2016

REPORT OF ACHIEVEMENT

Charlotte Douglas International Airport

2016

OWNED AND OPERATED BY THE CITY OF CHARLOTTE

TABLE OF CONTENTS Management Highlights

4

Airfield Improvements

20

Building for Demand

8

Safety and Training

22

Building for the Future

12

Passenger Experience

24

Organization and Management

14

Community Relations

28

Economic Impact

16

Accolades and Accomplishments

32

Airport Infrastructure

18

Partner Accolades and Achievements

34

Charlotte Douglas International Airport ÂŤ REPORT OF ACHIEVEMENT 2016

1

LETTER FROM THE AVIATION DIRECTOR

CLT BY THE NUMBERS

I AM PLEASED TO PRESENT CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT’S 2016 REPORT OF ACHIEVEMENT. LOOKING BACK, IT WAS A YEAR OF BUILDING, INVESTING, GROWING AND IMPROVING THE CUSTOMER EXPERIENCE. BRENT CAGLE

INVESTING IN THE AIRPORT

The Airport’s latest economic impact study revealed CLT contributes $16.2 billion annually to Charlotte and the 16-county region and supports 224,210 jobs in the region.

This pumps more than $11.5 billion in the local economy through wages and salaries.

We continued developing strong partnerships with our tenants. A new 10-year Airline Use Agreement (AUA) was signed by American, Delta, United, Southwest and JetBlue airlines that is expected to produce healthy financial results.

2

For the third straight year, CLT, along with its tenants, hosted a community job fair that attracted more than 400 participants. 000 local residents landed new jobs from attending the job fair.

We also celebrated the tenth anniversary of our Runway 5K Run in 2016. The Airport has raised more than $200,000 for the nonprofit agency LIFESPAN through the event.

Further expanding our community outreach, CLT staff partnered with Ashley Park School to provide gifts for 29 students and their siblings during the holidays.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

IMPROVING THE CUSTOMER

CLT continued improvements in customer experience. The Airport and airlines brought aboard more than 30 Checkpoint Assistance Agents to help passengers prepare for and expedite the screening process.

Additional WiFi access points (antennas) were placed and relocated throughout the terminal for expanded WiFi capability and capacity for passengers.

These are just a few highlights captured in the following pages.

The Airport has much to be proud of in 2016. I hope you take the time to discover what makes Charlotte Douglas International Airport such a premier airport to so many.

We look forward to continuing to serve you and our community..

# OF PASSENGERS (TOTAL)

44,422,022

# OF NONSTOP # OF # OF # OF AIRCRAFT DESTINATIONS DEPARTURES INTERNATIONAL MOVEMENTS (TOTAL) (DAILY AVERAGE) DESTINATIONS (OPERATIONS) (TOTAL)

165

700

33

CARGO

Showing a commitment to invest in our community, CLT introduced the Airport Area Strategic Development Plan to the public in 2016. The project involved input and dialogue with more than 450 members of the community. The implementation phase of the project – titled AMP - will revitalize land surrounding the Airport to create non-aviation related revenue for the Airport and employment opportunities for residents throughout the region.

OPERATIONS

NASA opened an Airspace Technology Demonstration (ATD-2) laboratory at CLT’s Old Terminal aimed at developing aerospace technology to streamline the arrival and departure of aircraft. It’s cutting edge technology that is happening first at CLT.

Meanwhile, passengers traveling overseas grew. Cargo also showed impressive gains.

INTERNATIONAL

CLT also supported its partners on various projects. The FAA broke ground on its new 370-foot tall air traffic control tower at the Airport.

It will be the second tallest tower in the nation when it is commissioned in 2020.

INVESTING IN THE COMMUNITY

We remained one of the busiest airports in the world. CLT’s originating passenger numbers (travelers who begin and end their trip at CLT) rose 8 percent in 2016 compared to 2015 due to growth of the region.

DEPARTURES

Several construction projects were completed, including parking facility improvements, expansion of the cargo ramp by 12,000-square yards and rehab work on the airfield.

GROWING

DESTINATIONS

The Airport continued making progress on Destination CLT, a $2.5 billion capital investment program to expand CLT’s roadways, curb front, airfield and terminal.

HMSHost, CLT’s food and beverage concessionaire, was awarded a contract extension through 2030. The agreement includes an estimated $30 million capital investment by HMSHost to enhance existing restaurants and to finance new restaurant locations.

PASSENGERS

BUILDING

# OF TONS (CARGO)

545,742

154,477

SOURCE: AIRPORT ACTIVITY REPORTS 2016

Brent Cagle AVIATION DIRECTOR Charlotte Douglas International Airport Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

3

MANAGEMENT HIGHLIGHTS

CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT (CLT) IS IN THE MIDST OF BUILDING A CUTTING EDGE TRANSPORTATION HUB FOR THE FUTURE. Over the past year, CLT made strategic decisions with the goal to provide a premiere airport for its millions of passengers and the community that it serves.

The Airport remains an economic asset for Charlotte and the surrounding 16-county region.

MANAGEMENT HIGHLIGHTS

Operationally, the Airport ranks sixth nationwide and seventh worldwide in landings and departures, according to 2016 Airports Council International (ACI) preliminary rankings based on 1,144 airports worldwide.

Aircraft movements showed sustained growth in 2016 handling 545,742 operations, a gain of 0.33 percent from 2015. CLT offered nonstop service to 165 destinations, including 33 international locations and 3 US territories and averaged nearly 700 daily departures in 2016.

In passenger traffic, Charlotte Douglas International Airport ranks 11th nationwide and 32nd worldwide.

Total passenger numbers saw a 1 percent dip compared to 2015, serving 44,422,022 million passengers in 2016.

Airport officials attribute the decrease primarily to lower airline load factors, a trend that is occurring nationwide at several large airports.

2016 CLT passenger numbers, however, reveal a broader story. Travelers originating their flight at CLT (local passengers who begin and end their trip at CLT) jumped 8 percent compared to 2015.

Operationally, CLT ranks sixth nationwide and seventh worldwide in landings and departures.

The surge in originating passenger traffic was evident on July 1 when 31,704 people were screened at TSA’s security checkpoints, a new CLT record according to TSA. Another significant climb occurred in the 3,111,398 travelers who flew abroad in 2016, a 10 percent rise compared to 2015 numbers. Contributing to the upswing, American Airlines launched its historic nonstop service to Havana, Cuba, and a second flight to Heathrow Airport was added. Air Canada Express had a 17 percent upswing in passenger traffic as well.

CLT has experienced an increase in originating passenger traffic over the last three years due to the region’s growth.

Cargo experienced the biggest jump of the year, climbing to 154,477 tons in 2016, a 14 percent increase.

FedEx numbers were up by 13 percent, and CLT welcomed ABX Air. This boosted the Airport’s cargo ranking to 28th.

Currently, local traffic is 27 percent of CLT’s overall passenger traffic versus 73 percent of connecting traffic.

CLT remains well positioned to support international trade and increased cargo levels through its Air Cargo (Continued on Page 6)

CLT served 44,422,022 million passengers in 2016.

4

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

5

Cagle Becomes Aviation Director BRENT CAGLE WAS APPOINTED CLT’S AVIATION DIRECTOR IN JUNE 2016, REMOVING INTERIM FROM HIS TITLE. Cagle began his career at CLT in February 2012, as the Airport’s assistant aviation director of administration and finance. In July 2013, he was named interim aviation director. Cagle previously worked in the Aviation Department for the City of Phoenix, which operates Phoenix Sky Harbor International Airport and two reliever airports.

He has more than 20 years of experience in municipal government and 10 years of aviation experience, serving in various financial and aviation positions.

As aviation director, Cagle is responsible for overseeing the Aviation Department’s leadership team and CLT’s long-term strategic planning. His main focus at CLT is driven by six strategic core principles: safety and security, customer focus, strategic growth, asset preservation, value employees and strong partnerships.

(Continued from Page 5)

Center. The center has about 570,000-square feet of facilities, more than 50 acres of aircraft ramp space and a full complement of international service support organizations. The Airport is also home to Foreign Trade Zone #57 and is the region’s permanent magnet Foreign Trade Zone #17 site.

Charlotte Douglas International Airport is the second largest hub for American Airlines, the world’s largest airline.

CLT continues to be an exceptional value by providing a cost effective and reliable platform for its airline business partners. CLT’s value is demonstrated by its exceptionally low Net Cost Per Enplaned Passenger at $1.35 in FY2016, which was the lowest among large hub airports in the United States.

In 2016 the Airport was home to seven major carriers, 16 regional carriers and three foreign flag carriers.

Airport Reached Ten-Year Airline Use and Lease Agreement CLT’s new Airline Use Agreement (AUA) with American, Delta, United, Southwest and JetBlue airlines became effective July 1, 2016.

The new AUA has a ten-year term with a five-year reset and maintains the successful existing business arrangement while providing added financial protection to the Airport and investors. The compensatory model with a profit sharing arrangement remains in place, and is enhanced by extraordinary coverage protection.

The new AUA establishes a strong framework for management to continue producing healthy financial results while expanding the Airport. It is a modern, industry standard agreement, presenting lease terms and formulas in simple terms that enhances Airport access, airline competition and provides the city the opportunity to recover certain terminal operating costs that were not recoverable under the previous AUA.

6

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Exclusive-use gates are eliminated in the new agreement. The new terms provide the city control over common use gates and ticket counters, permits the city to recapture underutilized preferential gates, and clearly outlines the capital project approval process.

Within the agreement, the airlines also have agreed to support $500 million worth of terminal improvements over the 10-year term as part of CLT’s $2.5 billion capital investment program and to cover debt obligations if the Airport is unable to repay the costs.

Air Service Development The Airport is home to seven major carriers, 16 regional carriers and three foreign flag carriers. Passengers were able to take advantage of the 12 new nonstop flights offered at CLT in 2016.

American Airlines began nonstop service to San Jose, CA (SJC); Madison, WI (MSN); Cedar Rapids, IA (CID) and Peoria, IL (PIA). American also launched its historic nonstop flight to Havana, Cuba (HAV). Frontier Airlines introduced nonstop service to Chicago O’Hare (ORD)

and Orlando (MCO). Southwest Airlines debuted nonstop service to Nashville (BNA). Via Air added service to Williamstown, WV (PKB); Lewisburg, WV (LWB); Weyers Cave, VA (SHD) and Orlando-Sanford (SFB) in Sanford, FL. Financial Growth As a result of various successful initiatives, operating revenues totaled $206.4 million in FY 2016 exceeding FY 2015 results by 6.6 percent. This increase was led by strong increases in terminal, concessions and parking revenues. Net revenues available for debt service remained extremely strong at $90.5 million resulting in 3.5x general airport revenue bond debt service coverage.

Management is very focused on maintaining strong financial metrics and market access. In June 2016, the City issued $230 million of Bond Anticipation Notes (BANs) as part of its $1.6 billion five-year capital development program. Proceeds from the BANs were used to retire $43 million of outstanding 2014 BANs, fund ongoing development of the elevated roadway and terminal curb front project and provide liquidity to fund additional projects.

The Airport is home to seven major carriers, 16 regional carriers and three foreign flag carriers.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

7

BUILDING FOR DEMAND

DESTINATION CLT MADE BIG HEADWAY IN 2016.

BUILDING FOR

DEMAND

The $2.5 billion capital investment program is aimed at enhancing capacity based on the Airport’s growth forecast through 2035.

It was launched in fall 2015 with the start of construction for the elevated roadway and entails expanding CLT’s roadways, curb front, airfield and terminal, all while ensuring the Airport maintains sound planning and financial stewardship.

Concourse A Expansion – Phase I

Phase I began in October 2016 with the installation of utilities and pier foundations. Grading work on the ramp that will connect the existing Concourse A to the expansion started earlier that year in July.

Both the ramp and nine-gate addition are scheduled for completion in May 2018.

East Terminal Expansion – Phase II Site and utility work kicked off in October 2016 for construction of the 51,000-square foot East Terminal Expansion – Phase II. The addition includes a food court, offices and baggage handling space, as well as two new escalators and elevators in the E Connector. Construction will take three years to complete.

Concourse A Expansion Phase I includes nine additional gates.

Terminal Renovations Design work for terminal renovations entered its final phase in 2016. Crews will start renovations on Concourse B in fall 2017 and then move to Concourses C and A, parts of Concourse D and the Atrium.

The makeover will consist of new ceiling tiles, carpet, wall panels, seating and fresh coats of paint. Tile flooring also will be placed in the center walkway of the concourses to better accommodate rolling luggage. HVAC, electrical and sprinkler systems will be upgraded, as well.

The $70 million project will take approximately three years to complete. It will be the most extensive terminal renovation in the Airport’s 34-year history.

Terminal Lobby Expansion

Destination CLT is a 2.5B capital investment program.

Design work on the terminal lobby expansion began in 2016. Construction is scheduled to start in 2018 and conclude in 2020.

T​ he expansion will create additional space for security lanes, ticketing, baggage claim areas and passenger circulation in the terminal lobby.

8

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

9

The Elevated Roadway is set to be complete in August 2018.

CLT partners in innovation and technology.

FAA Broke Ground on New Control Tower at CLT The Federal Aviation Administration (FAA), in partnership with the Aviation Department, broke ground on the new FAA Air Traffic Control Tower on the south side of the Airport’s airfield in June 2016.

ELEVATED ROADWAY

NASA Laboratory Opened at Airport

WORK ON THE ELEVATED ROADWAY CONTINUED THROUGHOUT 2016. CREWS

Parking Lot Improvements

BEGAN INSTALLING GIRDERS, WHICH ACT

The Airport merged Long Term Lot 2 with Long Term Lot 3 and relocated the entry and exit plazas with the installation of new toll plaza canopies and cashier facilities in June 2016. The merged lot (now called Long Term Lot 2) contains 200 additional spaces.

AS SUPPORT BEAMS, FOR THE ELEVATED LANES. CONCRETE SLAB POURS BEGAN IN MID-NOVEMBER AND WORK PROGRESSED ON THE PEDESTRIAN TUNNELS THAT, WHEN COMPLETED, WILL ALLOW VISITORS TO BYPASS AIRPORT TRAFFIC. CONSTRUCTION OF THE ELEVATED ROADWAY IS SET TO WRAP UP IN AUGUST 2018, ONE YEAR AHEAD OF SCHEDULE.

NASA, Airport officials, the FAA and American Airlines celebrated the official opening of a new Airspace Technology Demonstration (ATD-2) laboratory at CLT’s Old Terminal in June 2016 aimed at creating the air transportation system of the future.

Entry and exit plazas were relocated in Long Term Lot 1, as well, to create an improved traffic flow for drivers.

Paving was completed in Long Term Lot 4 in November 2016. Additional lighting, two new exit lanes and a roundabout on Old Dowd Road between Long Term (Lot?) 4 and Employee Lot I also were installed.

CHARLOTTE DOUGLAS INTERNATIONAL AIRPORT AIR TRAFFIC CONTROL TOWER AND TERMINAL RADAR APPROACH CONTROL CHARLOTTE, NORTH CAROLINA

FAATOWERposter20x24.indd 1

OTHER CONSTRUCTION: Cargo Ramp Expansion Expansion of the Airport’s cargo ramp was completed in July 2016. The ramp was expanded by 12,000-square yards on the southeast side of the airfield to provide additional space for potential clients and CLT’s deicing operations.

5/20/16 2:42 PM

The new 370-foot-tall air traffic control tower will be the second tallest tower in the National Airspace System (NAS), providing the FAA adequate space to operate CLT’s expanded airfield and enough height for air traffic controllers to obtain a clear view of the entire airfield. An adjacent 42,000 - square-foot terminal radar approach control (TRACON) base building will hold training rooms, administrative offices and a power distribution supply system.

Construction of the tower and TRACON base building is expected to be complete in 2018, and fully operational in 2020.

10

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

CLT is one of a handful of airports participating in the five-year test project to increase safety and efficiency and reduce fuel in the nation’s aviation system. ATD-2 is part of the NextGen initiative, created to provide coordinated schedules between the ramp, tower and terminal.

The cutting edge changes are expected to streamline the arrival and departure of aircraft and create a more environment friendly airfield. NASA projects the initiative could save the commercial airline industry $255 billion over the next 25 years and ensure that the aviation system is able to absorb the more than four billion additional passengers that are estimated to be traveling globally over the next 20 years.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

11

BUILDING FOR THE FUTURE

CLT Introduced Land Development Initiative

BUILDING FOR THE FUTURE

The Airport unveiled its Airport Area Strategic Development Plan in 2016.

The project was launched in fall 2015 to stimulate land development around the Airport providing economic and employment opportunities for the local region, while generating non-aviation revenue for the Airport to further its economic self sufficiency.

Airport staff met with over 450 residents and local stakeholders throughout 2016 to inform and receive feedback about the project.

CLT analyzed the 25-square miles of land it owns surrounding the Airport defined by the Catawba River to the west, Billy Graham Parkway to the east, I-85 to the north and Shopton Road to the south.

MXD Development of Vancouver, Canada was hired by the Airport in October 2015 to help identify specific projects and companies that would best utilize the land.

The Airport Area Strategic Development Plan was unveiled in 2016.

The initiative seeks to attract manufacturing, warehousing, transportation, trucking, distribution, research and development companies to the area, as well as retail and hotels. CLT will seek private developers to build the new facilities and collect rent from the developments that emerge or to partner with developers in joint ventures.

The implementation phase of the initiative (titled Project AMP) is scheduled to begin in 2017.

The first phase will concentrate on developing office, retail and hotel space on Wilkinson Blvd. and warehouse space on the airfield’s south side.

Project planners anticipate construction beginning within two to three years on individual projects, and within 10 years major sites will be under development.

CLT is planning to spark development of 25-sq. miles of land surrounding the Airport.

12

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

13

ORGANIZATION AND MANAGEMENT

ORGANIZATION AND MANAGEMENT

THE AVIATION DEPARTMENT OPERATES AS AN ENTERPRISE FUND.

Airport management utilizes six core strategic principles to manage and operate CLT:

Charlotte Douglas International Airport is a self-supporting business and does not use local tax money to pay operating costs or employee salaries. Funds come from Airport-generated sources including: parking, concessions, landing fees, rental cars, advertising, cargo, Fixed Base Operator and airline rentals.

Safety and Security The Airport will keep safety and security as a first priority.

The Aviation Department is a department within the city of Charlotte made up of more than 475 part-time and full-time employees and a FY 2017 operating budget of $149,707,475.

Strategic Growth The Airport will engage in economic development efforts to ensure continued success and promote global competitiveness.

The leadership team includes an aviation director and two deputy aviation directors overseeing six divisions of the Airport: Operations, Facilities, Development, Finance, Technology and Business and Revenue. Managers overseeing Administration, Public Affairs and Economic Affairs report directly to the aviation director. The Airport’s chief legal counsel reports to the City Attorney.

In 2016, the Aviation Department oversaw activities related to over 800 contract agreements for approximately 350 companies and processed more than 6,000 invoices resulting in revenues of $145 million.

Customer Focus The Airport will provide a superior travel experience that will incorporate southern hospitality.

Asset Preservation The Airport will proactively maintain equipment and facilities to safeguard against service disruptions.

Value Employees The Airport will promote development and education, accountability and ownership,competitive compensation and quality working conditions for Airport employees.

Strong Partnerships The Airport will provide a financially self-sustaining and cost-competitive environment with our business partners built on trust and integrity.

The Aviation Department has more than 475 employees.

The Aviation Department Leadership Team

14

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

L to R: Jeff McSwain, Jimmy Mynatt, Lee Davis, Chris Hazen, Babette Boone, Stuart Hair, Leila Lahbabi, Jerry Schwinghammer, Haley Gentry, Brent Cagle, Jack Christine and Mike Hill.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

15

ECONOMIC IMPACT

Charlotte Douglas International Airport continued to deliver on its promise to serve as an economic engine for the Carolinas contributing $16.2 billion annually to Charlotte and the 16-county region.

That’s a 67 percent jump from $9.7 billion in 2005 when the economic study was last commissioned.

During that time, CLT has grown from serving 31.3 million passengers in 2005 to more than 44 million fliers in 2015.

ECONOMIC

IMPACT

UNC Charlotte’s Center for Transportation Policy Studies conducted a new economic impact study in 2015 by polling Airport tenants, contractors, aircraft owners, regional employers, hotels and airline passengers about the Airport’s impact to the city and surrounding areas.

The report further revealed an increase in employment related to the Airport. CLT operations and activities supports 224,210 jobs in the regional economy compared to 100,716 jobs in 2005, a 123 percent rise.

CLT operations and activities supports 224,210 jobs in the region.

This surge in job growth pumps more than $11.5 billion into the local economy through wages and salaries, up from $5.6 billion in 2005 and jumping 123 percent.

CLT powers the region’s economy and is often cited as the more important asset for attracting jobs to the Charlotte region.

16

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Airport Extended HMSHost Contract HMSHost, CLT’s food and beverage concessionaire, was awarded a contract extension in October 2016 through 2030.

The new agreement includes an estimated $30 million capital investment by HMSHost to enhance existing restaurants and to invest in new restaurant locations.

HMSHost currently operates 43 dining locations at CLT. DBE, ACDBE and CBI Programs The Aviation Department supports three different business diversity programs: federally approved and mandated Disadvantaged Business Enterprise (DBE) and Airport Concessions Disadvantaged Enterprise (ACDBE) Programs, as well as the City’s Charlotte Business INClusion (CBI) Program.

During FY16 (Oct 1, 2015 – Sept. 30, 2016) ACDBE terminal concessionaires generated over $45 million of combined revenue.

In FY16 (July 1, 2015 to June 30, 2016):

Concessions

CLT contributes $16.2 billion annually to Charlotte and the 16-county region.

CLT’s concessionaires HMSHost and Paradies Lagardere generated $39.9 million in revenue in 2016 and provided employment for more than 2,200 local residents.

The Airport offered 110,000-square feet of more than 100 retail and restaurant choices for passengers in 2016, adding four new concessions. Starbucks (Baggage Claim), MAC Cosmetics (D/E Connector), XpresSpa kiosk (A/B Connector) and a revamped Charlotte Bistro (Baggage Claim) opened to eager travelers.

Q CLT awarded $5,915,839 to 20 DBE firms (11% of total federal contracts awarded).

Q CLT’s total spend with local MWSBEs (non-federal) at a prime contractor level was $1,964,100.

Q CLT’s total construction subcontracting spend with local MWSBEs (non-federal) was $4,945,947 (or 40% of all construction subcontracting opportunities).

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

17

AIRPORT INFRASTRUCTURE

Charlotte Douglas International Airport is located approximately seven miles from Charlotte’s central business district. It occupies approximately 5,800 acres of land located within the city, and is accessible within minutes from Interstate 85, Interstate 77, Interstate 485 and uptown Charlotte.

The Airport’s airfield has three parallel runways and one crosswind runway with plans to build a fourth parallel runway within 10 years.

AIRPORT

INFRASTRUCTURE

Parking facilities provide more than 28,000 parking spaces. More than 2,000 of those parking spaces were added in 2016.

CLT’s fixed base operator, Wilson Air Center – Charlotte, manages private and corporate aircraft for the Airport.

Transportation requirements of business executives are served by Wilson Air Center, which handled an average of 80 daily flights in 2016.

The 50 acres of facilities provide heated hangar space and an executive terminal. Wilson Air Center, home to more than 40 tenants, including six Fortune 500 companies’ air fleet, consistently wins industry customer service awards.

In 2016, Wilson Air Center began renovations on its conference rooms, pilot lounge and quiet room. The facility also oversaw private and corporate aircraft for the Wells Fargo Championship, NFL owner’s winter meeting, NFL playoffs hosted by the Carolina Panthers and the 2016 election campaign.

CLT has 1.8 mil sq. ft of terminal space which consists of five concourses and 97 gates.

18

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

The North Carolina Air National Guard (NCANG) and North Carolina Army Guard have active facilities on Airport property as well. CLT is home to the NCANG’s 145th Airlift Wing.

Norfolk Southern’s Intermodal Facility on the southern side of the Airport demonstrates the integration of transportation modes. Uniquely located between two runways proximate to two interstate highways (I-85 and I-485), it connects air, rail and truck to east coast seaports.

The 200-acre facility is capable of 200,000 annual lifts, transferring containers between trucks and trains.

Since relocating its facility from uptown Charlotte to the Airport in December 2013, lifts have seen steady growth.

The intermodal yard is pegged to create $7.6 billion in regional economic development and some 7,000 jobs over two decades. Tax revenue impact is estimated at over $620 million. * Data provided by Norfolk Southern.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

19

AIRFIELD IMPROVEMENTS

Runway 5/23 Rehab Runway 5/23 at the Airport reopened in mid-November 2016 after being temporarily closed for 60 days for maintenance-related improvements.

During this time, the Airport resurfaced Taxiway Charlie, which intersects the runway.

AIRFIELD

IMPROVEMENTS

Runway 5/23 is the Airport’s preferred night time noise abatement runway. CLT also used that time to close Runway 18C/36C each night to repaint pavement markings.

Airport Continued Sustainability Initiatives The Airport continued taking its sustainability initiatives to the roadways and taxiways.

Charlotte Douglas recycled 30,000 tons of concrete removed from the Taxiway Charlie repaving project in spring 2016 and reused it as stone base underneath the new concrete pavement.

Currently, the Airport is storing 90,000 tons of concrete and asphalt removed for construction of Concourse A Expansion - Phase I. CLT has plans to reuse it for future Airport roadways, taxiways and airfield maintenance projects.

The Airport recycled and reused 30,000 tons of concrete in 2016.

20

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

21

SAFETY AND TRAINING

THE AVIATION DEPARTMENT VALUES A SKILLED AND EDUCATED WORKFORCE. IN 2016, AVIATION DEPARTMENT STAFF COMPLETED AN AVERAGE OF 26.5 HOURS OF TRAINING PER EMPLOYEE. The Department spent approximately $70,000 in 2016 assisting employees with their secondary education.

More than 100 training and life skills classes were offered throughout the year.

SAFETY AND

TRAINING

More than 100 classes were offered throughout the year.

22

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

They included hosting several American Association of Airport Executives (AAAE) training classes, which resulted in 1 AAE, 28 CMs and 32 ACE certifications.

The Aviation Department continuously stresses the importance of safety, which improved year over year.

OSHA recordable injuries decreased from 27 recordable cases in 2015 to 13 recordable cases in 2016, a 51.8 percent decrease in recordable injuries. Days away from work, job restrictions and/or job transfers also decreased from 2.9 days to 1.23 days, a 57.5 percent decrease.

Second Annual Safety Day

With safety and security the number one priority at CLT, various trainings on these topics were held in 2016, an important part of the core strategic principles.

More than 300 employees and 25 vendors participated in the Aviation Department’s Second Annual Safety Day in September.

Staff completed an average of 26.5 hours of training per employee.

Staff took part in informational exhibits, interactive booths, poster sessions, a safety snap photo booth, NCDOL MUTCD flash classes and a driving simulator to test safety skills on the road.

Post-Accident Procedures Exercise

Each year, Safety Day seeks to highlight the importance of employees to put safety first.

Airport Operations held a post-accident recovery tabletop exercise in October.

AAAE RecognizeD CLT for Excellence in Airport Training

First responders, federal agencies, airline and Airport staff were tasked with identifying steps taken after a simulated collision of two aircraft on Runway 5/23. The goal was to identify CLT’s strengths and weaknesses after an emergency situation.

Charlotte Douglas received an ANTN Digicast Excellence in Airport Training award for training completed in 2015. The award signifies that the Aviation Department employees and additional staff have completed a specified amount of federally-mandated, airport-specific training and continuing education using ANTN Digicast’s web-based training system.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

23

PASSENGER EXPERIENCE

Canine Crew The Airport’s Canine Crew continued stealing the hearts of passengers. The program began as a stress reliever in October 2015 for the flying public to take their mind off the hustle and bustle that comes with traveling.

Thousands of passengers in 2016 sought the comfort of the furry, friendly four legged Airport volunteers.

PASSENGER EXPERIENCE

CLT’s Canine Crew is made up of 11 dogs and their handlers. All dogs are registered, professional in-service therapy dogs that have at least one year of experience working with the public.

Members of Canine Crew solidified their new found popularity by marching in Charlotte’s 2016 St. Patrick’s Day Parade for the first time.

CLT and American Airlines Brought Aboard Checkpoint Assistance Agents In May 2016, CLT and American Airlines brought aboard checkpoint assistance agents to help passengers prepare for and expedite the screening process.

The agents review boarding passes at the beginning of the checkpoint lines, check carry-on bags to ensure they meet airline allowances on board the aircraft, balance checkpoint lines when needed and provide assistance with lobby wayfinding as needed.

All Canine Crew dogs are registered, in-service therapy dogs.

American Airlines funds the initiative and the Aviation Department oversees the managerial contract. The checkpoint assistance agents stemmed from the long checkpoint lines over the summer due to new TSA security equipment.

Currently, CLT has more than 30 checkpoint assistance agents who work the hours of the checkpoint.

Airport Completed WiFi Upgrades Faster, more user friendly and reliable WiFi is now available throughout the terminal.

During spring 2016, CLT started relocating and adding additional WiFi access points (antennas) throughout the terminal for expanded WiFi capability and capacity. In addition, the Airport began working closely with Boingo, CLT’s internet service provider, to reduce the number of clicks needed to access the Airport’s free WiFi, as well as establish a longer service window. The three month project wrapped up over the summer and has resulted in increased capacity, better connections and improved coverage throughout the terminal.

CLT began offering free WiFi in late 2006. Over the past 10 years, passenger traffic has increased by more than 50 percent and the demand for WiFi access in the terminal has sky rocketed. Many travelers carry two to three devices – smart phone, iPad and computer – which put a strain on the previous system’s WiFi capacity. Additionally, the downloading of video requires enormous bandwidth.

For passengers, the WiFi upgrades provide a better quality of service, more coverage and capacity.

24

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

25

The Department has contracted with Phoenix Marketing International (PMI), a marketing research group based in New York, since the summer of 2008 to develop and implement a customized passenger survey. PMI works with several other airports in the country.

Focus Groups Discussed Airport Parking The Aviation Department assembled two passenger focus groups in September to discuss Airport parking.

Charlotte Douglas Recognized Airport Volunteers

(Continued from Page 26)

Since opening its doors in September 2006 on the upper floor of the Atrium, the center has hosted over 1 million service members and their families.

The CLT Volunteer Program celebrated its 11th Anniversary in May 2016.

The facility welcomed 135,229 guests in 2016 and averaged 400 visitors daily, establishing it as one of the busiest USO centers in the country.

The Airport’s 73 volunteers welcome passengers, answer questions and provide wayfinding assistance throughout the terminal.

Community support is prevalent at the facility with contributions from more than 100 companies and a network of 300 volunteers who donated 30,593 hours in 2016.

In 2016, volunteers donated 9,833 hours and made 304,059 customer connections.

CLT also took time to observe its volunteers during National Volunteer Week in April.

Restroom Alert Program Launched Housekeeping launched the Restroom Alert Program in January 2016. All customer accessible restrooms are now equipped with an 8 X 11 inch restroom alert sign.

Airport staff expressed their thanks to passengers for choosing CLT by hosting TLC from CLT customer appreciation events throughout 2016.

Customers can text the room code with a brief message to the specific number on the sign. After the customer sends the text message, the restroom alert software is notified and automatically responds with a generic message for confirmation of receipt and tracks the process until it’s cleared.

Employees passed out goody bags in March for St. Patrick’s Day, 2,000 cups of iced tea in June for National Iced Tea Day and 3,000 peppermint candy canes, along with more than 3,000 TLC from CLT branded items in December for Christmas.

26

The Department uses passenger focus groups periodically to engage in discussion about travelers’ likes and dislikes at the Airport. CLT uses this information to determine where improvements can be made to raise customer satisfaction.

Phoenix Marketing Survey Revealed Passenger Satisfaction Rates Glare

Airport Thanked Passengers With a Little TLC from CLT

Participants were divided into business travelers and leisure travelers to provide feedback on CLT’s parking options.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

USO Celebrated Tenth Anniversary The USO of North Carolina - Charlotte Center celebrated its tenth anniversary at CLT in September 2016.

(Continued on Page 27)

Eight out of ten passengers are satisfied with their overall experience at CLT, according to a 2016 survey conducted by Phoenix Marketing International (PMI).

The survey was completed by 1,600 passengers throughout the year.

Results also showed nine out of ten people are satisfied with the check-in experience and terminal facilities.

Eight out of ten people are pleased with service at the security checkpoint and getting to the terminal.

Wayfinding Improvements CLT partnered with Gresham, Smith and Partners (GS&P) in winter 2016 to create a wayfinding master plan that outlines design standards for Airport signage.

Seven out of ten people applauded the gate area, retail services, leaving the terminal and food and beverage.

The new guidelines seek to provide a consistent visual and dynamic wayfinding experience for travelers from Airport roadways to the terminal.

The passenger survey helps CLT pinpoint areas the Airport performs well in and areas that need improving.

The Aviation Department is then able to focus on the lowest performing categories and determine ways to better satisfy the customer.

The Airport’s wayfinding master plan is scheduled for completion in spring 2017. Implementation of the new design standards will occur gradually as CLT renovates and expands.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

27

COMMUNITY RELATIONS

Airport Hosted Community Job Fair The Airport, along with its tenants, hosted a community job fair in February 2016. The event attracted 451 job seekers.

Participating companies included the Aviation Department, HMSHost, Jamba Juice, Paradies Lagardere, Piedmont Airlines, SP+ Parking, TSA, Wilson Air Center and AmeriPark.

COMMUNITY RELATIONS

The job fair was held to create awareness in the community about the wide variety of jobs available at the Airport and to fill the needs of CLT’s tenants to recruit and hire qualified personnel. Employers sought to fill hundreds of open positions. It was the third consecutive year that the Airport has conducted a job fair.

FAA Approved CLT Noise Exposure Map The Federal Aviation Administration approved the Airport’s updated 2015 and 2020 Noise Exposure Maps (NEMs) in spring 2016.

The updates were made due to aircraft fleet changes and recent changes in runway operations.

CLT Officials Met With Communities

The Airport hosted a job fair attracting more than 450 job seekers.

28

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Airport officials met with Steele Creek and Berewick communities in February 2016 to address noise issues.

Residents voiced their concerns, asked questions and reviewed recent flight patterns over their neighborhood.

CLT began the NEMs update in spring 2014. The process included holding seven public meetings and two public hearings to inform and hear concerns from local residents.

Homes that fall inside the map contours and meet requirements set in the Airport’s Noise Compatibility Program are eligible to receive noise mitigation from the Airport. Approximately 2,500 homes have received noise mitigation from CLT since 1996.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

29

CLT relaunched its educational tour program in May 2016.

Operation Exodus Educational Tours Annual Youth Day Annual Runway 5K Run CLT Relaunched Educational Tour Program

Summer Interns Aviation Department Introduced Summer Internship Program The Aviation Department employed eight college interns, four Mayor’s Youth Employment Program students and one Levine Scholar intern during the summer of 2016.

Participants worked in various divisions throughout the department. Along with their daily internship work, students also took part in Airport property tours, attended a city council meeting and bi-weekly meetings with several guest speakers, presented an exit project and assisted with a “TLC from CLT” customer appreciation event and Youth Day. Airport’s Social Media Platforms Grew in Popularity The Airport’s social media platforms gained in popularity in 2016. Facebook ended the year with 16,500 followers, Twitter attracted 12,100 followers, Instagram garnered 3,200 followers and Youtube hit 225 viewers.

The Airport relaunched its educational tour program for middle and high school students and community organizations in May 2016.

The tour program aims to showcase careers in aviation to interested youth at one of the world’s busiest airports.

Tours are offered on Tuesdays (excluding holidays and busy travel weeks) from 10 a.m. until 1 p.m. and are tailored for students from grades 8-10.

Runway 5K Run Tenth Anniversary More than 3,000 runners and walkers registered for the 2016 Runway 5K Run on October 29, which marked its tenth anniversary.

As in the past, the Run benefitted the LIFESPAN LIFEWORKS Program. The nonprofit organization assists children and adults with disabilities. From 2008-2015, the Run has raised close to $200,000 for LIFESPAN. Currently, 53 LIFESPAN participants work at CLT.

CLT’s social media pages provides passengers with the latest Airport news.

30

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

21st Annual Youth Day More than 100 participants enjoyed a fun-filled day at the Aviation Department’s 21st annual Youth Day. Participants toured of Fire Station 41, the Carolinas Aviation Museum and the airfield.

Youth Day provides Aviation Department employees the opportunity to expose children and teenagers to aviation careers.

Surpassed United Way Campaign Goal CLT surpassed its $13,700 goal by raising $14,262 for its 2016 United Way Campaign.

The campaign included raffle drawings, a coffee and donut breakfast, a paper plane contest, a pizza lunch, a cornhole tournament and a hot dog lunch to raise funds.

Donated funds benefitted United Way of Central Carolinas.

The organization serves 93 agencies and funds more than 200 programs across the Charlotte region, from Union and Anson counties in the south to Mooresville/Lake Norman and Cabarrus County to the north.

CLT Welcomed Operation Exodus Approximately 4,000 soldiers passed through CLT in December 2016 as part of Operation Exodus. They were treated to free food and beverages.

During the annual event, the Airport serves as a transfer point for the military men and women. The USO Charlotte Center staff, Airport Operations and several CLT volunteers welcomed more than 70 buses transporting troops from Fort Jackson, SC as they headed home for a two week Christmas leave from basic training.

Approx. 4,000 soldiers passed through CLT in December 2016 during Operation Exodus.

Aviation Department Provided Gifts for Ashley Park School Students CLT’s Spirit Committee sponsored an Aviation Department Angel Tree and partnered with Ashley Park School (PreK-8th grade) in December to provide gifts for 29 students and their siblings.

Airport staff delivered 9 bicycles, clothing, accessories, games, books and educational toys.

Explorers Post 747 The Aviation Department celebrated its 20th year participating in the Explorers Post 747 Program.

Explorers offers students the chance to learn about career opportunities in the aviation industry through collaborations with partner organizations. Students in the program speak with professionals in the aviation industry and tour various business at the Airport.

More than 500 students have completed the program at CLT. Partners have included American Airlines, North Carolina Air National Guard, TSA, FAA, HMSHost and the Carolinas Aviation Museum.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

31

ACCOLADES AND ACCOMPLISHMENTS CLT Placed Near the Top in Customer Satisfaction Among Large Airports Charlotte Douglas ranked third in a Phoenix Marketing International (PMI) survey for customer satisfaction among large airports.

The rankings were based off 170,000+ traveler responses, compiled from November 2015 February 2016.

ACCOLADES AND

ACCOMPLISHMENTS

Airport Ranked High in Survey for Parking Accessibility & Getting to Terminal Charlotte Douglas ranked third among large size airports in both parking accessibility and getting to the terminal, according to a study conducted by Phoenix Marketing International’s mobile app AirportXP. CLT scored 74.5 percent for ease of accessing parking and 78.9 percent for getting to the terminal. The rankings were based on 540,638 traveler responses, compiled from June 29, 2015 to June 12, 2016.

CLT recieved the Silver Award from the NC Dept of Labor.

32

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Satisfaction was rated on a seven-point scale, with 1 being “very dissatisfied” and 7 being “very satisfied”. Percentages were calculated on the number of travelers that rated overall satisfaction as a 6 or 7.

Within the past two years, CLT has opened a new entrance road, built new parking decks and made improvements to the existing parking facilities.

CLT Received Silver Award From N.C. Department of Labor Charlotte Douglas received the N.C. Department of Labor Silver Award in April 2016.

The Silver Award criteria includes lost workday cases, but not restricted work activity, the organization must attain a rate for cases with days away from work that is at least 50 percent below the industry rate and no fatalities at the site or location in 2015 to qualify for the award.

CLT Recognized for Wildlife Reporting The American Association of Airport Executives (AAAE) Bird Strike Committee recognized Charlotte Douglas as second for excellence in strike reporting during the 2016 AAAE Bird Strike Committee Conference. The rankings were based on the number of reports filed, completeness of report, percentage of reports identified to species, percentage of reports filed online, timeliness of report submission, collection of remains when available or necessary and consistency in filing reports.

The Airport conducted a Wildlife Hazard Assessment (WHA) that lasted twelve months to capture seasonal changes from 2013-2014.

The data received from the WHA reinforced the need to update the Wildlife Hazard Management Plan (WHMP).

The Airport is required to have a WHMP as part of the FAR Part 139 requirements. In 2011, only 35 percent of birds struck at the Airport were able to be identified and last year that increased to over 70 percent.

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

33

PARTNER ACCOLADES AND ACHIEVEMENTS Wilson Air Center Received High Recognition Wilson Air Center-Charlotte, CLT’s fixed base operator (FBO), has been recognized as a stand out among its peers. Pro Pilot magazine ranked Wilson Air Center the number one best small FBO chain for the ninth consecutive year and Wilson Air Center - Charlotte the 18th best FBO in the US.

Q American Airlines was named Air Transport World’s Airline of the Year.

ASIG

Wilson has managed CLT’s fixed base operation, which handles private and corporate aircraft, since February 2005 and has consistently ranked as a top FBO.

Lufthansa $1,000.00 Sponsor of the Airport 5K run in 2016

Q Employees participated in Cam Newton Foundation Celebrity Kickball Tournament.

Q Renewed 5-year partnership with Carolina Panthers.

Q CLT donated a total of $881,643 to local organizations & charities in 2016.

Q American awarded $400,000 in grants to three Charlotte nonprofit community organizations in March 2016.

Q $150,000 Goodwill Industries of the Southern Piedmont Opportunity Campus.

Q $150,000 Renaissance West Community Initiative.

Q $100,000 Foundation for the Carolinas for the Carolina Theatre.

FBO Chain for the ninth consecutive year.

Q We added nine new routes, including inaugural historic service to Havana.

Aviation International News named Wilson Air CenterCharlotte the second best FBO in the Americas and Top 20 percent Best FBO in the Americas.

American Airlines

Wilson Air Center ranked #1 for Best Small

Q AA Regional Director of Government Affairs Tracy Montross was named a Charlotte Business Journal 40 Under 40 Winner.

Q Total value of $481,643 donated by Corporate Giving and the Regional Council Funding in 2016 to organizations such as the USO of North Carolina

ASIG participated in the Piedmont Airlines Airplane Pull and donated $5,000 to United Way, the recipient of the event.

Lufthansa Charlotte received the “2017 Quality Award of the Americas” achieving the highest passenger quality satisfaction in 2016 for all Lufthansa stations in the airline’s network.

Paradies Lagardère– Retail Concessionaire Airport Revenue News (ARN) 2016 Awards Q Best Specialty Retail Brand Operator - Large operator Q Best Overall Retailer for the 22nd year - Large operator

HMSHost – Food and Beverage Concessionaire Airport Revenue News (ARN) 2016 Awards Q Best New Food & Beverage Concept - Large operator: 1897 Market Q Food Operator With The Highest Regard For Customer Service - Large operator Q Best Food & Beverage Brand Operator - Large operator Q Best Overall Food & Beverage Operator - Large operator

Q New 10-year lease signed with Airport.

USA TODAY 10 BEST READERS’ CHOICE AWARDS (in partnership with ARN)

Q The AA CLT team won the coveted Champions Cup, which recognizes the large hub that had the best operational performance in overall metrics for the year.

Q Best Airport Bar - Whisky River–Charlotte Douglas International Airport

Q The Charlotte Regional Visitors Authority (CRVA) recently named American as their Service Provider of the Year.

34

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

35

36

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

Charlotte Douglas International Airport « REPORT OF ACHIEVEMENT 2016

37

Charlotte Douglas International Airport

5501 JOSH BIRMINGHAM PARKWAY | CHARLOTTE, NC 28208

ORT REP

OWNED AND OPERATED BY THE CITY OF CHARLOTTE

OF

ACH

IEV

EME

6

201

NT

cltairport.com