InterVISTAS Aviation Intelligence Report July2015

JULY

2015 IN THIS ISSUE: PAGE 3

Feature Article PAGE 7

Regional Reports PAGE 12

Aviation News PAGE 16

Traffic Updates PAGE 19

InterVISTAS News

Foreword

FOREWORD

Welcome to the July 2015 edition of the Aviation Intelligence Report. We have two feature articles this month. First, Doris Mak reviews the economic impact of airports and their role in enhancing the competitiveness and scope of business in others sectors of the economy. Second, Paul Ouimet discusses InterVISTAS’ leadership in developing practical actions and strategies for Destination Marketing Organizations to enjoy sustainable success.

Deborah Meehan President and CEO InterVISTAS Consulting Group

Our Regional Reports include: ■■ 2015 Paris Airshow order commitments, by Ian Kincaid ■■ U.S. “Big 3” – Gulf carrier dispute over state subsidies, by Steve Martin ■■ Canadian airline growth, by Debra Ward ■■ Indian low-cost carrier – IndiGo – files for IPO, by Doris Mak We hope you enjoy this month’s edition.

Best regards, Deb Meehan and Vic Prins

Vic Prins Aviation Director/Managing Director Royal HaskoningDHV

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MEASURING ECONOMIC IMPACT AT AIRPORTS Feature Feature Doris Mak Vice President, Special Projects Vancouver, Canada An Airport: A Major Generator of Employment and Economic Activity Airports play an important role in facilitating and generating employment in a community, region and beyond. Every arrival and departure of a commercial passenger flight at an airport generates direct labor hours for individuals with jobs involved in handling passengers, their baggage, cargo and the aircraft. The economic impact of an airport extends beyond the businesses that are located on-site at the airport. In addition to direct airport employment, indirect employment is generated from downstream industries that supply and support the activities at an airport. These include the food providers to the airline caterers, oil refining activities for jet fuel, and also travel agents booking flights. Beyond the direct and indirect employment, when these employees spend their wages in the general economy, additional jobs and employment are created in a variety of industries such as food & beverage, retail, residential construction and many others.

Induced employment would be generated in a broad spectrum of industries that support the spending in the broader economy by direct and indirect airport employment.

Catalytic Impacts: Increased GDP from Improved Competitiveness Economic impact of an airport is more than simply the direct and indirect jobs in the community. Aviation connectivity, both passenger and cargo, enhances the competitiveness and scope of business of other sectors of the economy. Most recognize the linkage of air connectivity to tourism, but less well known are the linkages to other sectors. Heavy equipment manufacturing may seem to be independent of aviation, but these businesses often need to rush

replacement spare parts to their customers and to urgently dispatch engineers to customer sites for repairs, upgrades, training and troubleshooting. The ability of consumer goods producers to restock inventories at distributor and retail locations can be critical to their success. Law and financial services need to move employees (and clients) quickly to handle real time transactions.

Also known as Wider Economic Benefits, catalytic impacts capture the way in which the airport facilitates the business of other sectors of the economy. As such, air transportation facilitates employment and economic development in the national economy through a number of mechanisms: ■■ Trade – air transport provides connections to export markets for both goods and services.

■■ Investment – a key factor many companies take into account when making decisions about the location of offices, manufacturing plants or warehouses is proximity of an international airport with high connectivity.

■■ Tourism - air service facilitates the arrival of larger numbers of tourists to a country.

This includes business as well as leisure

tourists. The spending of these tourists can support a wide range of tourismrelated businesses: hotels, restaurants, entertainment and recreation, car rentals and others.

■■ Productivity – air transportation offers access to new markets which in turn enables businesses to achieve greater economies of scale. Air access also enables companies to attract and retain high quality employees.

How can an airport use economic impact?

Airports use economic impact for several reasons: ■■ To demonstrate the significance of the airport to the community; ■■ To advise policy makers of the importance to protect airports against adjacent incompatible uses; ■■ To educate the public about the desirability of an airport’s potential expansion of operations; ■■ To demonstrate the potential impact of the addition of a new air service route to government and the public; and ■■ To advise regional urban planners on employment levels and the number of users when planning for regional infrastructure (roads, transit, water/ sewage, electric power capacity, etc.)

Bridge Construction by Highways Agency under CC BY 2.0

InterVISTAS | aviation intelligence report 3

Foreword Feature

INTERVISTAS LEADS TRANSFORMATIONAL OPPORTUNITIES INITIATIVE FOR DMOS

Paul Ouimet Executive Vice-President Vancouver, Canada

Since January 2014, InterVISTAS has lead, on behalf of Destination Marketing Association International (DMAI), a forward looking initiative on the future of Destination Marketing Organizations (DMOs).

The vision of DestinationNEXT is to provide DMOs with practical actions and strategies for sustainable success in a dramatically changing world.

In Phase 1, Paul Ouimet and InterVISTAS led the project team through a detailed review of industry trends, supported by a futurist and industry panel. An extensive survey was sent to industry leaders in March of 2014.

The response was strong: 327 DMOs from 36 countries participated in the survey, one of the best response rates of any DMAI survey.

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The top 20 trends were plotted on a grid that assessed each trend based on: • Degree to which the trend will have a positive or negative impact on the DMO and destination; • Degree of control the DMO has to influence this trend.

industry, and markets; 2. Improving branding of a destination in leisure and meetings and conventions markets; and 3. Playing an expanded role in the community on broader economic development issues.

Rather than a conventional SWOT analysis, this approach helped organizations focus on trends and issues that they can impact or affect (i.e., the upper quadrants of the grid where a DMO can exploit opportunities and mitigate threats).The analysis identified a number of opportunities to exploit (e.g., upper right quadrant of the grid). They revolved around the following areas: 1. Capitalizing on social media and smart technology to engage and access residents,

The analysis concluded that DMOs need to address three transformational areas to be effective and relevant in our changing world.

DMOs will have to deal with all three of these forces to be successful in the future.

FEATURE CONT’D Feature

To help develop effective strategies, the practical realities of different destinations and DMOs must be considered. The analysis clearly demonstrates that one size does not fit all.

Strategies and organizational prototypes need to recognize these significant differences.

Based on the results of a cluster analysis, a scenario model was developed based on two driving factors: • Strength of destination (e.g., current market position, brand, air capacity, quality of service, and infrastructure); and • Level of community support and engagement (e.g., political support,

regional support, community understanding of tourism impact, and potential membership satisfaction).

The intersection of these two major, independent factors generates four dramatically different scenarios described below. Each DMO can generally find itself in one of these quadrants.

Phase 2 was designed to build upon this work to provide DMOs with two practical tools: 1. An online diagnostic tool to assess their organization and destination; and 2. A series of NEXTPractices and case studies.

The online diagnostic tool is designed to assist DMOs complete an objective self-assessment which can help them determine priorities and strategies for the future. The online diagnostic tool is not intended to be a benchmarking index to rank DMOs or destinations. The tool presents a framework that DMO leaders and communities can use to critically assess the destination. It also helps to start a conversation and provide focus on what needs to be done in the future.

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Foreword Feature

FEATURE CONT’D

The assessment is based on 20 variables related to destination strength and community support and engagement. Within each variable, a series of metrics are also identified, which offers the opportunity for DMOs to gather data and provide a more in-depth look at the variable.

The self-assessment tool is built upon two key inputs: 1. An assessment of how important each variable is to the destination; and 2. An assessment of the destination’s perceived performance across each variable.

The assessments are combined and result in the destination being plotted in one of the scenarios.

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To help validate the scenario model, 10 regional workshops were held around the world to receive input on the online diagnostic tool and NEXTPracrices.

DestinationNEXT evolved from a future study to a platform that DMOs could use to better themselves and one way was through the development of a Community of Practices.

DMOs and the destinations they represent benefit from the exchange of relevant and timely sharing of issues, ideas, and lessons learned, and problems and their solutions, for areas of mutual interest. Best practices and innovation are enabled through communities of practice, fostering the growth of intellectual capital and fully considered decision-making that drives

destination performance. This resulted in the development of 20 BEST and 10 NEXT Practice case studies.

These 20 BEST practices and the 10 NEXTPractices are meant to kick-start the development of a community of practice. They are a cross section of practices that will have relevance for various types of DMOs. Some practices will be more relevant for smaller DMOs, others for larger ones.

InterVISTAS looks forward to continue working with DMAI in Phase 3 of DestinationNEXT. For more information, please visit http://www. destinationmarketing.org/destinationnext/

UNITED STATES REPORT Regional Feature Reports Steven Martin Senior Vice President Washington, DC

U.S. “Big 3” – Gulf carrier dispute over state subsidies roils on With the public forum on the U.S. government’s review of the dispute between the “Big 3” U.S. airlines – American, Delta, and United – and the major Gulf State carriers – Emirates, Etihad, and Qatar – closing on August 3, interested parties are rushing to get their views incorporated. The debate has grown increasingly polarized.

The Big 3 had kick-started the argument earlier this year by urging the U.S. government to reconsider the Open Skies agreements signed with the United Arab Emirates and Qatar, based on the allegation that the three Gulf airlines have received and are benefitting from subsidies from their respective governments that are distorting the global aviation market. The Big 3 lined up support from organized labor (especially the Air Line Pilots Association) and members of Congress. (See also InterVISTAS Aviation Intelligence Report April 2015.)

The Gulf Carriers pushed back vociferously.

Emirates commissioned its own study that refuted the subsidy claims pushed by the U.S. Big 3. Emirates said that those claims are “demonstrably inaccurate.” Etihad similarly issued a study that reported that the three U.S. carriers have gained more than $70 billion in benefits from U.S. government authorities and through legal processes such as Chapter 11 bankruptcy reorganization.

Qatar CEO Akbar Al Baker said that the charges were a “baseless…. transparent attempt to block new competition and limit

consumer choice.” Al Baker pointed out that American Airlines benefits significantly from its partnership with Qatar, and that American’s CEO Doug Parker has been “misled” in joining Delta and United in pressing claims of anti-competitive behavior.

The fight over the Open Skies agreements has exposed a rift between airlines and travel and consumer groups that argue U.S. carriers are trying to prevent competition for international flights.

A group of business leaders in the hotel and travel industries aligned with the Gulf carriers’ position, urging the government to ignore complaints from U.S. airlines about alleged foreign flight subsidies. This coalition was organized by the U.S. Travel Association and included: Alaska Airlines, Caesars Entertainment, Choice Hotels International, FedEx Express, Hawaiian Airlines, Hilton Worldwide, Hyatt Hotels, InterContinental Hotels, Marriott, and several others.

InterVISTAS updates Economic Impact of Air Service Liberalization InterVISTAS released an update to the landmark 2006 report on the economic impact of air service liberalization. The 2015 report was sponsored by Boeing, along with General Electric, the Aerospace Industries Association, FedEx, the World Travel and Tourism Council, ACI Europe, and the National Association of Manufacturers.

In brief, liberalization of air services continues to provide substantial benefits in terms of increased air traffic and lower fares.

The magnitude of the effect of liberalization

is still in the range of our previous work – we statistically tested whether the impacts were reduced since the release of our 2006 report and found that this is not the case. The updated finding is that even with today’s lower real (inflation adjusted) air fares, driven by improved aircraft economics and economies of higher route traffic, liberalization of air service between two nations will typically increase traffic by roughly 16%. This result is consistent with the findings of a large number of peer reviewed studies by academics, governments and research institutes that almost overwhelmingly finds positive benefits of liberalization. If anything, our results are more conservative than many of the other studies. We also find that a substantial number of country pairs still have not liberalized air services between their nations, and some of these are among the largest air markets in the world. Thus, there are still substantial benefits to be gained.

The effect of past, recent and potential liberalization is illustrated with a number of case studies. These include examples from both passenger and air cargo services. The latter underscores the importance that 5th and 7th freedom liberalization can have for development of cargo services and hence trade connectivity between nations.

The report is available at http:// www.intervistas.com/wp-content/ uploads/2015/07/The_Economic_Impacts_ of_Air_Liberalization_2015.pdf.

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Regional Reporta

EUROPE REPORT

Ian Kincaid Vice President, Economic Analysis London, UK

British Airways announces Boeing 787-9 seat configuration and initial routes On July 13, 2015, British Airways (BA) announced that the seat configuration of its new Boeing 787-9 Dreamliner fleet will include four classes and a total of 216 seats. The first class cabin will have eight seats, while business class will have 42 seats. The aircraft will feature 39 seats in premium economy and 127 seats in economy class. The 787-9 will have two seats more than the slightly shorter 787-8, which consists of three classes (no first class cabin). In addition, the 787-9 will contain more seats in premium economy class than the 787-8. The newly disclosed seat configuration is in line with a recent study (Hugon-Duprat & O’Connell, 2015) that finds that premium economy seats generate the highest marginal returns in long haul markets compared to the other three classes. In particular, analysis on transatlantic routes shows that revenue from premium economy seats are 2.3 times more than the cost of its production.

The London-based carrier has placed an order

for 22 787-9 aircraft with Boeing and is expected to receive its first aircraft in September.

BA also revealed that it will launch operations of its first 787-9 on its inaugural route between London Heathrow Airport and Indira Gandhi International Airport on October 25 of this year.

The service between London and New Delhi will operate five-times per week. After the debut flight, the airline intends to operate its 787-9 aircraft on services to other destinations, such as Abu Dhabi/Muscat and Kuala Lumpur.

2015 Paris Air Show order commitments The 51st Paris Air Show was held between June 15 and June 21 at Le Bourget Airport. Similar to the previous air show held in 2013, Airbus tallied the most orders with 531 aircraft, 110 of which are options, valued at USD $32.2 billion. Boeing confirmed 331 order commitments and 40 options, equivalent to USD $27.5 billion. Airbus and Boeing collectively reported 902 aircraft orders and options at the biannual air show. Of

this total, 770 aircraft orders and options (85%) were for narrowbodies, while the remaining 132 (16%) were for widebodies. Airbus accounted for the majority of the narrowbody commitments with 476 narrowbody deals, while Boeing made up a higher proportion of widebody sales with 77 widebody commitments.

Other order commitments and options include six Q400s for Bombardier, 103 ERJs for Embraer and 81 turboprops for ATR. Together, the aircraft manufacturers recorded a total of 999 order commitments and 224 options, valued at USD $69.1 billion. Network carriers were the busiest, placing orders and option commitments for 476 aircraft, while low-cost carriers accounted for a further 257 commitments. Though the total orders are less than that of two years ago, the results are more than what was expected for this year.

Source: Flight Global (2015). ANALYSIS: Paris air show 2015 order tracker – update.

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EUROPE REPORT CONT`D Regional Feature Reports

U.K. Airport Commission releases decision on additional runway capacity In September 2012, the Government of the United Kingdom established an independent commission – the Airports Commission chaired

by Sir Howard Davies – to examine the need for additional runway capacity in the United Kingdom, specifically around the London metropolitan area. After over two and half years of research by the Commission, innumerable submissions by public and private sector organizations, businesses and consultation with the public, the Commission released its final decision on the July 1, 2015. Its “clear and unanimous” recommendation was to build a third full-length runway at Heathrow, the UK’s largest airport. This option was selected over the other two short-listed alternatives: a runway extension to one of the exiting runways at Heathrow so it could operate as two runways, and a second runway at Gatwick (the UK’s second largest airport).

The Commission’s rationale was that a third runway at Heathrow would lead to the greatest enhancement to long haul connectivity and generate the greatest economic benefit for the UK (through increased trade, investment, tourism, etc.). The recommendation came with a lot of conditions on operations to control noise impacts and emissions (for example, flights would be barred between 11PM and 6AM, which is more restrictive than current quotabased system at Heathrow). The decision has already be criticized on a number of fronts: its targets for noise and emissions are untested and may not be met; the night flight ban will harm long haul connectivity to some regions; its forecasts of future traffic were biased towards

Heathrow and did not take account of emerging airline trends that may favor Gatwick; and Heathrow’s expansion is undeliverable given the level of local opposition to its expansion (the third runway would still need to go through the local planning process).

described the Gatwick option as “realistic and feasible”, and the airport does not face anywhere near the noise and environmental concerns that Heathrow does. The Commission’s recommendation is not binding on the UK government, and the government has indicated it will make a decision by the end of the year.

Gatwick views that it is still in the running to get a second runway – the Commission

ORDER VALUES BY MANUFACTURER

TOTAL

Commitments & Options

Values ($m)

531

32,198

81

1,554

371

27,463

6

124

78

3,606

103

3,309

3

68

50

800

1,223

69,121

Source: Flight Global (2015). ANALYSIS: Paris air show 2015 order tracker – update.

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Regional Reports

CANADA REPORT

Debra Ward Executive Consultant Ottawa, Canada

Canadian airlines continue to grow this summer but face some challenges Canadian carriers continue to expand both routes and capacity this summer. WestJet is expanding its Atlantic Canada service under its Encore brand, with Q400s now flying new daily non-stop flights from Halifax Stanfield International Airport to Deer Lake, Gander, and Sydney. The airline will also inaugurate new daily non-stop service between Moncton, New Brunswick, and Ottawa. Air Canada is continuing its expansion with new non-stops between Vancouver and Brisbane, Montreal and Lyon, and seasonal non-stops between Toronto and Gatwick (this is on the heels of WestJet’s announcement of service to Gatwick as of next spring). Porter Airlines recently launched non-stop trans-border service from Toronto to Charleston.

from the federal court to launch a class action suit against Air Canada and a number of U.S carriers, alleging price fixing. In addition, both Air Canada and WestJet have endured falsealarm bomb threats, with WestJet dealing with six of these disruptive events.

However, the carriers have been facing external challenges as well. A group is seeking leave

Transport Canada is retaining approximately 9,600 acres in the southeast sector of the

WS 737-700 by BriYYZ under CC BY 2.0

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Transport Minister consults on potential future airport at Pickering Lands The Honourable Lisa Raitt, Minister of Transport, recently met with community groups, regional and municipal leaders, and business stakeholders to discuss the government’s next steps in the management of the Pickering Lands.

Since 2013, the government has transferred 10,200 acres to Parks Canada for the creation and expansion of the federally owned Pickering Lands to the Rouge National Urban Park.

Pickering Lands for economic development, including a potential future airport.

Minister Raitt also announced her intention to name in the coming months an independent advisor who will meet with local interests on the potential economic development opportunities around a future airport, as well as the upcoming publication of regulations for airport zoning and site designation to reflect the reduced Pickering Lands footprint due to the transfer of land to Parks Canada.

No decisions have been made on the development or timing of a potential future airport.

New Deputy Minister for Transport Canada Jean-François Tremblay has been named Deputy Minister of Transport, Infrastructure and Communities, effective July 20, 2015. Prior to this posting, he served as Deputy Secretary to the Cabinet (Operations), Privy Council Office, and has been a member of the federal civil service since 2000.

New name, new approach to Canada’s tourism brand With the announcement of its new name, Destination Canada, the former Canadian Tourism Commission has pulled itself away from its legislative roots with a rebranding and new vision of the organization. It will define itself by the power of the partnerships it puts into place and working with the industry to achieve market success. Many of its strategies will be integrated into Connecting America, a new three-year $30 million campaign aimed at U.S. visitors.

ASIA PACIFIC REPORT Regional Feature Reports Doris Mak Vice President, Special Projects Vancouver, Canada

Indian low-cost carrier- IndiGo - files for IPO IndiGo, India’s largest airline by market share, plans to raise approximately USD $500 million from an initial public offering. According to the draft prospectus released June 30, the low-cost carrier will issue 12.7 billion rupees (USD $200 million) worth of new stock, while existing shareholders will seek to sell roughly 30 million shares. IndiGo is somewhat of an anomaly in India’s turbulent aviation sector, where airlines have lost a combined USD $10 billion since 2009 and IPOs have fallen below their initial sale prices. IndiGo has been consistently profitable during that period and is one of only two airlines in India (the other is GoAir) expected to make a profit in the 2015 financial year, according to the Centre for Asia Pacific Aviation India (CAPA India).

IndiGo received its airline operating license in 2004 and began flying in 2006. At the time, Jet Airways was the dominant carrier in the market, as it had the majority of corporate travelers.

However, IndiGo redefined the concept of a low-cost carrier by extricating the link between price and quality. The airline is best known for its fleet of new planes and timely performance, while still offering some of the lowest fares in the market. As a result IndiGo is now a market leader, accounting for more than a third of the Indian domestic passenger traffic.

IndiGo has set itself apart from competitors with its on-time performance. According to data released by Flightstats.com, IndiGo finished first in all three measures used to evaluate airline reliability and punctuality: percentage of flights on time, average delay, and number of flights

VT-IES by Kurush Pawar under CC BY 2.0

diverted or canceled. The airline also boasts a turnaround time of less than 30 minutes, maximizing the utilization on each of its aircraft.

A report in the Business Standard states that IndiGo’s aircraft spend more than 11 hours a day in the air, compared to the industry standard of 8 to 10 hours.

IndiGo also benefits from its strategic saleand-leaseback model for its fleet, which is composed entirely of Airbus A320 aircraft. In a sale-and-leaseback transaction, an investment firm will purchase an aircraft from an airline and then lease it back, removing the aircraft and its associated debt from the carrier’s balance sheet. In the case of IndiGo, these agreements range between three and six years, allowing the company to keep its fleet young: the average age of IndiGo’s fleet is 3.6 years, as of April 2015, which is one of the youngest among low-cost carriers globally. The continual renewal of its fleet allows the carrier to avoid costly maintenance repairs associated with aircraft aging, as well as benefit from reduced fuel burn.

India is the ninth largest aviation market globally with approximately 100 million annual passengers. Airbus forecasts that domestic air travel in India will grow at an annual rate of 9.7 percent between 2015 and 2034. India is also one of the most underserved aviation markets in the world, with domestic airline penetration trailing virtually all of the emerging economies.

In 2012, airline seats per capita were just 0.07 compared to 0.29 in China, 0.32 in Russia, and 0.68 in Brazil.

While poor airport infrastructure will be an obstacle, IndiGo is betting that it can capitalize on India’s high growth potential. In 2014, the airline signed a preliminary agreement to buy 250 A320neo planes from Airbus, a purchase that could be worth USD $25.7 billion at list prices and rank as the largest single order of jets for the manufacturer. IndiGo’s aggressive expansion contrasts the approach of domestic rivals, such as SpiceJet, which are cutting their fleets to offset losses.

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CEO’s Foreword message Aviation News

MIDDLE EAST/AFRICA South African Airways becomes first A330 operator to receive FAA approval for RNP South African Airways (SAA) has been granted approval by the FAA to operate the Required Navigation Procedures – Authorization Required (RNP AR) with their long-haul Airbus 330 fleet in the U.S. These procedures will significantly reduce the workload of flight crews, as aircraft are fully guided by automated flight systems during approach. Additionally, these procedures enable curved approaches to New York’s John F. Kennedy International Airport, which reduces noise impacts of this busy runway. SAA become the first A330 operator to receive approval in the U.S. Etihad Cargo increases services to Africa Etihad Cargo, the freight division of Etihad Airways, will commence bi-weekly operation between Abu Dhabi and Brazzaville of the Republic of Congo. This route will be served by a Boeing 777F freight aircraft and will route through Lagos, Nigeria. The 777F has a capacity to transport 100 metric tonnes of cargo, with the cargo contents expected to include tools, machinery, general cargo and electronics.

Qatar Airways celebrates a decade of service to South Africa Qatar Airways has celebrated 10 year of service to Cape Town and Johannesburg, South Africa. Operating from their Doha hub since 2005, Qatar currently offers three weekly flights to Cape Town and 10 weekly flights to Johannesburg. “Our relationship with South Africa has developed and grown consistently since we began back in 2005, and now thanks to an ever-increasing passenger demand from passengers who value our renowned and award-winning five-star service, we look forward to another successful decade of services” said Marwan Koleilat, Qatar Airways, Qatar Airways Chief Commercial Officer.

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Air Mauritius announces US$26.5 million deficit for 2014/2015 Air Mauritius, the Mauritian flag carrier, reported a loss of US$ 26.5 million for the 2014/2015 financial year ending in March. This loss is due to increased competition, weak seat occupancy on its Chinese routes and increased operational costs. The depreciation of the Euro also impacted the carrier due to hedging on 40% of the airline’s fuel requirements.

ASIA-PACIFIC ANA to launch MRO joint venture A consortium, led by ANA Holdings, is forming a new MRO company, based out of the Naha airport in Okinawa. Expected to begin operation in the second half of 2017, it services will include basic and heavy maintenance for regional aircraft and medium-sized jets such as the DASH8-Q300/400, MRJ, CRJ, B737, A320, A321 and B767. ANA Holdings is the primary shareholder with a 45% stake, while JAMCO holds 25% and Mitsubishi Heavy Industries holds 20%.

Korean LCC T’way gains access to Guam The U.S. Department of Transportation has approved T’way’s requested route between Guam and South Korea. T’way applied for the required foreign carrier permit in February, with no objection raised. This will add more than 5,000 more seats per month beginning in July. Executive Manager of the A. B. Won Pat International Airport, Charles H. Ada II shared that “the carrier will be using a Boeing 737-800 aircraft with an all-economy configuration. We are very excited because this will add 5,670 seats to our monthly seat capacity from Korea.”

Jetstar to establish new regional flights across New Zealand Jetstar has announced plans for regional services across New Zealand beginning later this year. At least four destinations are expected, with some possible destinations being Hamilton, Rotorua, New Plymouth,

Napier and Palmerston North in the North Island and Nelson and Invercargill in the South Island. These new services will be operated by a fleet of five 50-seat Bombardier Q300 turbo-prop aircraft, with final details expected in September.

Qantas to reduce carbon emission of World Environment Day As part of World Environment Day, Qantas will launch a series of sustainability projects.

They will be reinvigorating their Fly Carbon Neutral program, which allows passengers to pay an additional fee to offset their carbon emissions associated with the flight. Revenue from this program will go towards community projects in Australia or overseas to generate carbon credits. Other environmental initiatives include replacing all lighting in operational areas with LED lights, increasing recycling for their domestic flights and new lightweight freight containers to reduce fuel consumption.

Bangkok Airways announces precaution plan for MERS-CoV Bangkok Airways has taken steps to reduce the possible transmitting of Middle East respiratory sydrome (MERS). They have increased the frequency of aircraft deep cleaning for their fleet and provided extra hygienic mask and cleansing gels for staff. The airline has also ordered all of their stations to strictly follow advice and prevention procedures of local authorities. In the event of a MERS infected passenger being found on a Bangkok Airline flight, standard prevention protocol will be implemented and the aircraft will be fully sterilized.

Cebu Pacific is the third most profitable airlines in Q1 2015 Cebu Pacific, a Philippines low cost carrier, was the third most profitable airline in the first quarter of 2015. Its EBITDAR margin grew 36.4%, or 10.63 billion peso (CAD$300 million), which was a 15.7 percentage point increase compared to the same period in 2014. Revenue

Feature Aviation News

increased 20.7% from Q1 2014. The airline had a 59.7% domestic market share during Q1, a 3.8% increase year-over-year.

Analysts raise questions on AirAsia’s accounting, cash flow and leverage Hong Kong-based GMT Research issued a report, accusing AirAsia of charging lease and maintenance costs to its Philippines and Indonesia subsidiaries to boost the parent company’s operating cash flow. AirAsia denied the allegation and issued a full statement by the airline’s audit committee in response.

The statement expressed that AirAsia cannot consolidate its associates companies due to local aviation regulations.

ICAO downgrade of Thailand aviation safety leads to suspension of new services ICAO issued an alert on Thailand’s aviation body after a safety audit revealed that the country’s airline safety is in question, particularly in the certification process. China, Japan, and South Korea responded by banning any new services from Thailand. This has led to the suspension of Thai Air Asia X’s Bangkok-Sapporo route.

FAA will also begin reviewing Thailand’s air safety standards to evaluate if a downgrade to Category 2 is needed.

EVA purchases five Boeing 777F EVA Air ordered five Boeing 777F powered by GE90 engines. The US$1.5 billion aircraft are scheduled to be delivered starting 2017. EVA currently flies 21 Boeing 777-300ERs and has 13 on order. EVA Air Chairman K.W. Chang said, “These freighters will be the backbone of our air cargo service for the next decade.”

CANADA Canada announces expansion of visa-free transit program Canada Border Services Agency (CBSA) and Citizenship and Immigration Canada (CIC) announced the expansion of the China Transit Program to include five Chinese cities in July

– Xiamen, Fuzhou, Chengdu, Shenyang, and Harbin – as well as to two new cities in Asia in May –Tokyo and Seoul. The China Transit Program allows Chinese nationals to transit through approved Canadian airports on select carriers to the US without a Canadian transit visa. The new origin cities join the list of six existing cities in Asia - Beijing, Guangzhou, Shanghai, Hong Kong, Manila and Taipei.

favor of the new work agreement, with 81.7% of eligible participants voting. The agreement, ratified for a five years term, outlines compensation, work rules, standardized processes and formal framework for discussion between WestJet and flight attendants.

FAAB is a subgroup of WestJet Proactive Communication Team (PACT), which represents close to 9,000 employees.

Prince George Airport announced warehouse partnership with Rosenau Transport Rosenau Transport Ltd. will lease 15,000 square feet of the 25,000 square-foot cargo warehouse facility at Prince George Airport. The 5.5-million construction of the facility with 11 truck dock doors began in June. The facility is expected to be completed by November 2015.

Air Canada Rouge Invests in Improved Premium Product Air Canada Rouge has expanded the luxury services on their A319 fleet. In mid-June 2015, the current 3x3 seating configuration will be replaced by two side-by-side Business Class seats. This will provide passengers with more personal space and legroom. Additionally, the reconfiguration will also increase the volume of carry-on luggage by 30 percent. Finally, each seat will include a 110-volt power plug and a high-power USB port.

YVR and Shanghai Airport Authority sign agreement to promote aviation business between both gateways Vancouver International Airport and Shanghai Airport Authority have signed a Memorandum of Understanding (MoU) on Cooperation.

This is a continuation of a report the airport commissioned in February of 2015, studying the supply chain of perishable goods. The MoU will strengthen the relationship between the airports through the development of air services, cultural exchanges and business opportunities. “We are very excited about this agreement with Shanghai Airport Authority,” said Craig Richmond, President and CEO, Vancouver Airport Authority. “YVR is continuing to make strong progress towards better serving the Chinese market and close partnerships with world class organizations like Shanghai Airport Authority ensure that we grow and strengthen Vancouver’s air connections between Asia and the Americas.”

WestJet flight attendants ratify contract A tentative agreement has been reached between WestJet and the Flight Attendant Association Board (FAAB), representing the flight attendants. Flight attendants voted in

Toronto Pearson celebrates the grand reopening of its Terminal 3 Pier, Gates B1-B5 Toronto Pearson Airport opened its redesigned 80,000 square-foot pier in Terminal 3 on June 18, 2015. The pier, mainly used by Westjet, has 5 bridged gates and 4 walkout gates. This pier is a major part of the CA$140 million Terminal 3 Enhancement project, and is expected to handle 2.9 million passengers per year.

Westjet, Air Canada add flights to London Gatwick Westjet announced London Gatwick as its latest destination using the newly acquired Boeing 767-300ERW aircraft. Service will begin in spring 2016, but the airline has not released any details on which Canadian airport the flight will serve. Air Canada, several days later, also announced that it will provide a new service from Toronto to London Gatwick on its leisure subsidiary, Air Canada Rouge, in summer 2016.

InterVISTAS | aviation intelligence report 13

Aviation News St. John’s Airport installing new runway system to allow 700 more flights per year A CA$37.3 million instrument landing system (ILS) will be installed at the runways of St. John’s International Airport (YYT) to allow aircraft to land and take-off in very low visibility conditions. Both the 11/29 and 16/34 runways will be upgraded. LED light technology will also be installed on the primary runway approach tower. Currently, St. John’s and Toronto are the only airports in Canada to have ILS installed on both ends of their primary runway. Once the project is completed in 2016, YYT will be able to handle 700 more flights and 70,000 more passengers per year.

Air Canada increases proposed Delhi route to daily With the delivery of the 787-9, Air Canada will be using the new aircraft to fly from Toronto to Delhi starting on November 1, 2015. The originally planned four weekly flights will be increased to daily service. The 787-9 has a total of 30 seats in business class, 21 seats in premium economy, and 247 seats in economy.

The airline is scheduled to take delivery of 29 787-9 aircraft by 2019, which adds to its eight 787-8 planes in operation.

New pedestrian tunnel links mainland Toronto with Billy Bishop Toronto City Airport Fliers at Billy Bishop Toronto City Airport will now be able to use a pedestrian tunnel for getting to the mainland. The tunnel officially opened on July 29 with four moving sidewalks that transport passengers and airline staff from one end to another in six minutes or less. The tunnel project cost approximately CA$82.5 million and was built through a public-private partnership agreement between Ports Toronto, Forum Equity Partners and lead contractor PCL. Scott Streiner appointed as Chair and Chief Executive Officer of the CTA Scott Streiner was appointed to the role 14 aviation intelligence report | InterVISTAS

of Chair and Chief Executive Officer of the Canada Transportation Agency on July 20, 2015. Mr. Steiner’s career in public service has spanned 25 years in a variety of high profile roles. Prior to joining the Agency, he served as Assistant Secretary to the Cabinet, Economic and Regional Development Policy at the Privy Council Office, Assistant Deputy Minister, Policy at Transport Canada, and Executive Director of the Aerospace Review. Mr. Streiner has a five year mandate with the Agency.

EUROPE Manchester Airport Reveals 10-Year Growth Plan Manchester Airport Group (MAG) has announced a 10-year investment program for Manchester Airport. The £1 billion project will bring 60 key enhancements such as expansion and reconfiguration of Terminal 2 and Terminal 3. A direct linkage between the two terminals and the U.S. preclearance facility will also be built. With these enhancements, the airport is expected to double its current capacity of 22 million passengers per year.

Amsterdam opens the central security checkpoints To comply with EU regulations, Amsterdam Airport Schiphol switched to central security for the entire airport on June 3, 2015.

Passengers no longer have their hand baggage checked at the gates, but at central locations throughout the terminal. An extra floor was built to accommodate the new checkpoints and separate passenger flows. The central security aims at enhancing the passenger experience and comfort and increasing the efficiency of the security process.

LATIN AMERICA GOL announces internet via satellite and inflight entertainment GOL will be the first carrier in South and Central

America to offer onboard Wi-Fi to passengers.

Partnering with Gogo Inc., the airline’s entire fleet of aircraft will be outfitted with next generation satellite service - 2Ku. In addition to providing in-flight Internet, all of Gol’s aircraft be outfitted with Gogo’s wireless in-flight entertainment system and will have access to live television content.

Permission given to transport stranded airline passengers to Venezuela - Minister Patterson The Guyana government suspended all Conviasa flights to Venezuela due to the airline’s financial obligation failures. Over 40 passengers were stranded as the Venezuelan airline was suspended due to failure to lodge a passenger bond. In order to allow the passengers to return back home, the Guyana government granted a “one-off flight” for Conviasa.

Delta Air Lines and GOL strengthen strategic alliance GOL and Delta Air Lines entered into multiple strategic transactions which will strengthen the alliance and enhance GOL’s financial position.

GOL will invest up to US$90 million in its new preferred shares and Delta will invest up to US$56 million in GOL’s shares. Both airlines will also extend their commercial cooperation.

Norwegian launches flights from the U.S. to the Caribbean Norwegian introduced services from Boston, Baltimore/Washington D.C. and New York City to two Caribbean destinations: the Guadeloupe Islands and Martinique on December 3, 2015.

The airline will operate twice weekly service from Boston and Baltimore/Washington D.C., and thrice weekly service from JFK.

UNITED STATES Passenger traffic at Bellingham Airport dropped 30% The low Canadian dollar against the U.S. dollar has led to a sharp decrease in passenger traffic

Aviation News

at Bellingham International Airport. The airport is located a one-hour drive from Vancouver, Canada, and offers flights to other U.S. cities with lower fares and parking fees. In June 2015, only 31,673 passengers passed through Bellingham, which was down 30.6% compared with 45,671 passengers in June 2014. Because of low demand, Frontier Airlines did not offer flights out of Bellingham in 2015. Both Allegiant and Alaska Airlines also reduced flights during 2015.

FedEx agrees to buy 50 planes and 50 options FedEx signed a US$9.97-billion agreement with Boeing to purchase 50 767-300Fs with options on 50 aircraft. With this order, the company will have a total of 106 firm 767Fs scheduled to be delivered through 2023. The aircraft “will enable us to reduce structural costs, improve our fuel efficiency and enhance the reliability of our global network,” said David Bronczek, FedEx president and CEO. With this order, the 767 will have been in production for more than 40 years, having entered service with United in 1982.

commercially feasible. American Airlines will now take possession of the slot and will launch daily Haneda-Los Angeles service.

United gave up all remaining slots at JFK, moved operations to EWR United Airlines announced that it will move out of JFK International Airport in October 2015, and transfer all flights to its hub in Newark by trading slots with Delta. United will also operate its premium service, known as “p.s.”, to the West Coast flights out of Newark.

FAA launches next airfield-safety improvement effort The FAA plans to further reduce runway risks in the next 10-15 years through risk-based decision-making. The new initiative is known as the Runway Incursion Mitigation (RIM) program. “The Risk-based decision-making builds on safety management principles by using a consistent approach to proactively address emerging safety risks,” FAA described.

The agency will work with airports to develop strategies to mitigate any runway intrusions.

American and Qantas form joint venture; Air New Zealand and Hawaiian Airlines opposed American Airlines and Qantas will form a revenue-sharing joint venture by introducing new flights between the United States and Australia. Starting in December 2015, American Airlines will operate daily, nonstop flights between Los Angeles and Sydney, while Qantas will re-launch its nonstop Sydney-San Francisco route up to six times weekly. American will be flying its Boeing 777-300ER on the route, while Qantas will fly its reconfigured Boeing 747-400.

Air New Zealand objected the joint venture routes, stating that it was “inappropriate to grant interim authorization without a full and considered analysis by the ACCC.” Hawaiian Airlines also expressed concerns as the partnership will put smaller, independent airlines in disadvantage. In response, Qantas and American Airlines said “the interim authorization would allow them to operate under the existing JBA with the new transPacific routes added in, until final antitrust immunity is received.”

Delta to surrender Haneda Slots, American to begin flights from LAX Department of Transportation (DOT) decided that Delta can keep the Seattle-Haneda route provided that the airline operates daily service year-round. Delta responded by terminating the route on September 30, 2015 and returning the slot to the DOT, citing that the route is not

Overcapacity on U.S. domestic routes worries investment analysts Investment analysts are concerned about the aggressive growth plans for U.S. domestic routes as a result of low fuel price. Southwest initially announced an 8% year-over-year increase, but trimmed to 7% after pressure from investors. Delta will slow the 2015 seat

growth rate from 5% to 3%. American Airlines also lowered its capacity growth expectations from 2% to 1%. Investors are worried that overcapacity will drive down fares, which will decrease unit revenue. On the other hand, the U.S. Department of Justice (DOJ) is investigating possible collusion among U.S. airlines on expansion plans. American Airlines, United, Delta, and Southwest Airlines confirmed that DOJ has contacted them regarding the probe.

Department of Homeland Security selected 10 additional sites for future preclearance The Department of Homeland Security (DHS) will expand preclearance operations to ten additional airports: Brussels Airport, Punta Cana Airport, Narita International Airport, Amsterdam Airport Schiphol, Oslo Airport, Madrid-Barajas Airport, Stockholm Arlanda Airport, Instanbal Ataturk Airport, London Heathrow Airport and Manchester Airport.

Passengers at these airports will pass through U.S. Customs and Border Protection (CBP) before boarding their direct flights to the U.S. Preclearance operations are currently operating in Canada, Ireland, United Arab Emirates, Bahamas, Bermuda, and Aruba. The new preclearance sites will help DHS achieve its goal of preclearing 33% of all U.S.-bound air travelers by 2024.

Sea-Tac center runway is under reconstruction Seattle-Tacoma International Airport’s center runway is being reconstructed to extend its life span for an additional 40 years. Recycled concrete from the existing runway will be crushed into gravel and used as the subbase of the new runway. The center runway is the last runway to be reconstructed. It is scheduled to be complete by October 30, 2015.

InterVISTAS | aviation intelligence report 15

Foreword Aviation Traffic

AIRLINE DATA – ASIA PACIFIC Asia-Pacific Airlines Traffic Figures for June 2015 Airline

Capacity (ASKs – millions)

Load Factor

8,809

11,638

75.7%

1

h3.7%

h0.5%

h2.3 pts

7,381

10,023

73.6%

1

i4.2%

i2.6%

i1.3 pts

1 1 Source: Note:

Traffic (RPKs – millions)

5,181

7,184

72.1%

h5.6%

h1.2%

h3.2 pts

10,246

11,751

87.2%

h7.8%

h6.1%

h1.3 pts

Carrier traffic reports.

Traffic figures are for May 2015 as June 2015 were not available at the time of publishing

AIRLINE DATA – EUROPE European Airlines Traffic Figures for June 2015 Airline

1

2 Source: Notes:

Traffic (RPKs – millions)

Capacity (ASKs – millions)

20,627

23,834

86.5%

h0.9%

h0.5%

h0.4 pts

20,871

25,154

83.0%

h4.3%

h3.2%

h0.9%

19,387

23,155

83.7%

h6.7%

h5.4%

h1.0 pts

Load Factor

Carrier traffic reports 1. Includes Lufthansa Passenger Airlines, SWISS, and Austrian Airlines.

2. Includes British Airways, Iberia (including Iberia Express), and Vueling. Vueling traffic is currently accounted as non-premium traffic.

16 aviation intelligence report | InterVISTAS

Feature Aviation Traffic

AIRLINE DATA – NORTH AMERICA North American Carriers Traffic Figures for June 2015 Traffic (RPMs – millions)

Airline

Capacity (ASMs – millions)

Load Factor

Canada 6,196

7,258

85.4%

h10.1%

h10.5%

i0.3 pts

1,682

2,187

76.9%

h7.0%

h7.6%

i0.5 pts

United States

1 2

3

Source: Notes:

3,542

4,151

85.3%

h8.8%

h8.0%

h0.6%

19,359

22,438

86.3%

h1.3%

h2.2%

i0.8 pts

20,424

23,926

85.4%

h2.8%

h2.4%

h0.46 pts

19,647

22,310

88.1%

h3.2%

h2.6%

h0.6 pts

10,757

12,475

86.2%

h6.9%

h6.7%

h0.1 pts

875

999

87.6%

h13.7%

h16.6%

i2.2 pts

Carrier traffic reports 1. Represents the combined traffic results of American and US Airways.

2. Results include flights operated under contract carrier arrangements.

3. Total system includes scheduled service, fixed fee contract.

InterVISTAS | aviation intelligence report 17

Aviation CEO’s Foreword message Traffic

AIRPORT TRAFFIC: SELECTED CANADIAN AIRPORTS

2015

Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports Toronto

Vancouver

Montréal

Calgary

Edmonton

Ottawa

Winnipeg

Halifax

Victoria

Kelowna

Saskatoon

Regina

June

+7.2%

+7.8%

+0.5%

+4.6%

+5.6%

+5.0%

+6.5%

+3.9%

+4.3%

+4.3%

+10.0%

4.3%

2nd Quarter

+7.2%

+9.0%

+5.3%

+8.0%

+6.3%

+1.3%

+6.0%

+3.5%

+4.8%

+7.8%

+7.3%

+2.6%

July

+10.8%

+7.3%

+7.4%

+6.4%

+5.9%

+2.0%

+6.3%

+3.7%

+8.0%

+5.7%

+10.0%

+6.2%

August

+9.8%

+8.0%

+6.5%

+5.9%

+6.9%

+0.5%

+8.8%

+6.0%

+7.7%

+6.4%

+8.5%

+2.8%

September

+7.5%

+8.8%

+6.0%

+6.1%

+8.6%

+2.7%

+7.2%

+5.9%

+6.3%

+8.7%

+6.7%

+5.6%

3rd Quarter

+9.5%

+8.0%

+6.6%

+6.3%

+7.1%

+1.7%

+7.4%

+5.2%

+7.3%

+6.8%

+8.5%

+4.8% +7.0%

October

+8.6%

+7.0%

+6.5%

+7.1%

+8.3%

+3.5%

+7.3%

+4.5%

+7.3%

+6.1%

+7.9%

November

+7.0%

+6.0%

+5.7%

+4.5%

+1.7%

+0.9%

+5.6%

+2.1%

+5.5%

+4.4%

+4.8%

-2.4%

December

+6.1%

+6.6%

+4.4%

+4.4%

-0.6%

+1.0%

+7.4%

-0.8%

+3.5%

+6.8%

+4.3%

+0.7%

4th Quarter

+7.3%

+6.5%

+5.5%

+5.4%

+3.1%

+1.8%

6.9%

+2.0%

+5.4%

+5.8%

+5.6%

+1.7%

Full Year

+5.2%

+7.8%

+4.6%

+6.8%

+9.4%

+0.8%

+5.3%

+2.3%

+5.6%

+7.0%

+6.9%

+3.1%

January

+7.0%

+3.7%

+3.2%

+2.3%

+11.6%

+1.0%

+4.5%

-0.9%

+3.0%

+2.7%

+0.9%

+2.8% +2.9%

February

+6.4%

+6.0%

+4.1%

-0.4%

+10.5%

+0.7%

+5.3%

+0.6%

+3.5%

-1.6%

0.0%

March

+7.8%

+8.1%

+5.3%

+1.5%

+10.3%

+1.6%

+2.6%

-1.1%

+9.6%

-0.9%

+2.6%

-3.8%

1st Quarter

+7.1%

+6.0%

+4.2%

+1.2%

+10.8%

+1.1%

+4.1%

-0.5%

+5.5%

+0.1%

+1.2%

+0.7%

April

+6.7%

+4.2%

+4.3%

-2.3%

-4.4%

+0.7%

n/a

-1.4%

+4.3%

-2.2%

-1.6%

-1.2%

May

+6.6%

+4.4%

+5.3%

+2.6%

-5.4%

+2.2%

n/a

-1.1%

+3.4%

-0.2%

+0.5%

-1.0%

AIRPORT TRAFFIC: SELECTED U.S. & INTERNATIONAL AIRPORTS Summary of Total Year-Over-Year Passenger Traffic Performance at Selected Canadian Airports

2015

2014

United States

International

Atlanta

Chicago

Los Angeles

Dallas

Denver

New York JFK

London Heathrow

Paris CDG

Frankfurt

Beijing

Tokyo Narita

Mexico City

June

+1.8%

+5.6%

+6.7%

+6.1%

+2.4%

+5.3%

+1.1%

+6.1%

+1.0

+.01%

-3.2%

+5.9%

2nd Quarter

+4.2%

+7.2%

+6.9%

+5.2%

+2.6%

+7.7%

+3.2%

+5.5%

+1.9%

+0.9

+0.3%

+10.0%

July

+3.6%

+7.7%

+6.3%

+6.7%

+2.2%

+5.2%

+0.5%

+3.9%

+2.3%

+3.7%

-1.7%

+4.8%

August

+2.6%

+4.8%

+6.1%

+6.3%

+2.2%

+7.6%

+1.3%

+6.2%

+5.4%

+0.7%

-1.9%

+9.2%

September

+2.9%

+3.1%

+5.0%

+10.1%

+3.3%

+8.3%

+0.3%

-12.3%

+5.9%

+1.2%

-3.0%

+6.9%

3rd Quarter

+3.0%

+5.3%

+5.8%

+7.6%

+2.5%

+7.0%

+0.7%

-0.4%

+4.5%

+1.9%

-2.2%

+6.9%

October

+4.3%

+4.7%

+6.3%

+2.1%

+3.1%

+6.9%

+0.4%

+4.5%

+1.4%

+2.9%

-2.4%

+10.3%

November

+3.9%

+5.1%

+6.4%

+1.0%

-0.1%

+6.5%

+1.1%

+2.8%

+2.6%

+9.1%

-2.2%

+8.8%

December

-0.5%

+5.7%

+2.6%

+8.7%

-2.6%

+3.3%

+2.4%

+3.9%

-2.0%

+6.7%

-4.2%

+7.5%

4th Quarter

+2.6%

+5.1%

+5.0%

+3.9%

+0.1%

+5.5%

+1.3%

+3.8%

+0.8%

+6.1%

-2.9%

+8.8%

Full Year

+2.1%

+4.6%

+5.9%

+5.1%

+1.7%

+5.1%

+1.4%

+2.8%

+2.4%

+2.9%

+0.6%

+8.6%

January

+6.6%

+15.8%

+0.4%

-0.4%

-1.7%

+5.8%

+1.3%

+2.5%

+1.3%

-1.2%

-6.7%

+6.4%

February

+6.7%

+5.1%

+3.9%

-3.5%

-2.3%

+8.9%

+1.3%

+3.1%

+4.6%

+5.2%

-0.2%

+10.1%

March

+2.7%

+9.3%

+4.2%

+0.1%

-0.2%

6.70%

+3.4%

+1.3%

+2.5%

+12.6%

-2.5%

+16.8%

1st Quarter

+5.1%

+10.0%

+2.8%

-1.2%

-1.4%

7.02%

+2.0%

+2.2%

+2.7%

+5.5%

-3.2%

+11.1%

April

+3.2%

+10.4%

+3.1%

+1.2%

+1.5%

+3.4%

-0.8%

-1.9%

+7.5%

+7.3%

+9.5%

+12.8%

May

+3.3%

+9.58%

+4.5%

-1.7%

-0.7%

+6.2%

+1.7%

+3.9%

+5.4%

+5.9%

+10.9%

+12.8%

18 aviation intelligence report | InterVISTAS

InterVISTAS News

THE INTERVISTAS GROUP CONTINUES TO BE ACTIVE IN DELIVERING A DIVERSE RANGE OF CONSULTING PROJECTS AROUND THE WORLD. SOME OF THE NEW PROJECTS WE ARE WORKING ON ARE LISTED BELOW:

The InterVISTAS Group continues to be active in delivering a diverse range of consulting projects around the world and some of the new projects we are working on are listed below: Air Service Development Support for OAJ We are delighted to announce that we are continuing our work with Ellis Airport (OAJ) in Jacksonville, North Carolina. We are currently working on Phase 2 of a project which encompasses ongoing air service development work and regional market analysis.

InterVISTAS | aviation intelligence report 19

Speaking Engagements

During his presentation, Paul debuted an online diagnostic tool, a series of leading NEXT and BEST practice case studies, and some additional tools designed to enable the industry to capitalize on the benefits of DestinationNEXT. Destination Marketing Association International (DMAI) Annual Convention Paul Ouimet delivered the keynote address during the Opening Session of the Destination Marketing Association International (DMAI) Annual Convention on Thursday, July 16th in Austin, Texas.

Paul unveiled Phase 2 of DestinationNEXT – an industry-leading initiative designed to provide destination marketing organizations (DMOs) with practical actions and strategies for sustainable success in a dramatically changing work.

20 aviation intelligence report | InterVISTAS

Transportation Research Board 95Th Annual Meeting The U.S. National Academy of Sciences – Transportation Research Board will hold its 95th Annual Meeting at the Walter E. Washington Convention Center in Washington D.C, from January 10 – 14, 2016.

InterVISTAS’ Dr. Mike Tretheway will speak in a panel session on North America Airport Financing on January 13, 2016, and will discuss the Emerson Commission recommendations, airport valuation and property taxes on airports.

This forum hosts over 10,000 transportation professionals from around the world— including representatives of federal, state, and local government agencies, universities, and industry. Approximately 3,000 presentations, including more than 1,500 peer-reviewed technical papers, are given throughout the week and more than 200 TRB standing committees and numerous subcommittees hold open meetings to discuss current research and identify research needs.

Staff Announcements

InterVISTAS welcomes the following new team members:

InterVISTAS congratulates the following team members on their promotions:

Tracy Frederico, Controller Boston Office Tracy has over 20 years’ experience working in Finance at professional services firms. She comes to us from an architectural firm in the USA where she was the Financial Controller.

Her responsibilities were to provide financial leadership and overall management of the company’s finance and accounting functions.

Tracy actively collaborated with project managers on critical project elements. One of her biggest achievements was developing and implementing a cloud-based Project Management software which allowed managers access to real time job costing and estimated time to complete data.

David Dague, Senior Vice President Boston Office

Zoe Lindemuth, Senior Consultant Boston Office

Sabine Reim, Senior Vice President London Office

Taylor Reid, Senior Consultant Washington D.C. Office

Janice Bruno, Vice President, Administration & Corporate Services Vancouver Office

Wei Jin, Senior Consultant Vancouver Office

Previous to that, Tracy worked at a property service firm where she ran the accounting department. She took the initiative to analyse, design and implement internal policies and procedures which ensured that accounting operations were effectively and efficiently performed and that all legal requirements for proper recordkeeping were in compliance.

Kami Grovue, Manager, Human Resources Vancouver Office

Tracy holds an MBA with a concentration in Accounting from Clark University. Welcome to our team, Tracy!

Mira Aiello, Director, Marketing & Communications Washington D.C. Office Jeiran Ebrahimi, Senior Manager The Hague Office

James Emerson, Senior Analyst Vancouver Office Chris Greer, Senior Analyst Vancouver Office Jordan Young, Senior Analyst Vancouver Office

Ken Lee, Manager – Market Intelligence Vancouver Office Celina Estrella, Senior Consultant Vancouver Office Jody Kostisky, Consultant Vancouver Office

InterVISTAS | aviation intelligence report 21

22 aviation intelligence report | InterVISTAS

THE HAGUE VANCOUVER

BATH

OTTAWA

SKOP JE

BOSTON WASHINGTON

SÃO PAULO

InterVISTAS Consulting Group is a management consulting company with extensive expertise in aviation, transportation and tourism. Our exceptional people have successfully delivered projects in over 70 countries around the world. We are committed to working collaboratively with our clients to apply vision and expertise to achieve results.

NACO, the Netherlands Airport Consultants, B.V. is one of the world’s leading independent airport consultancy and engineering firms offering integrated, full-service planning and design services. With more than 60 years of experience, they have the expertise that is instrumental in solving the increasing complexity of developing today’s airports.

NACO has assisted over 550 airports of all sizes in more than 100 countries with realizing their goals; goals that entail every aspect of airport design and development.

Royal HaskoningDHV combine global expertise with local knowledge to deliver a multidisciplinary range of professional engineering, consultancy and project management services in aviation, buildings, energy, industry, infrastructure, maritime, mining, rural areas, urban areas and water.

royalhaskoningdhv.com

InterVISTAS’ Aviation Intelligence Report is a collection of information gathered from public sources, such as press releases, media articles, etc., information from confidential sources, and items heard on the street. Thus, some of the information is speculative and may not materialise.

To provide comments/feedback on the InterVISTAS’ Aviation Intelligence Report, please contact Paul Ouimet at paul.ouimet@intervistas.com or 1-604-717-1800.

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