M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Update: The Year in Review, and the O tl k Ah dOutlook Ahead

December 2012

Christopher U. BrownepVice President and Airport Manager

Washington Dulles International Airport

1

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Serves the Customer

Contemporary

Dulles Serves the Customer

p y

Predictable

Satisfying

Reliable

2

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Airline Industry

U S Airlines’ Reaction to Economic Challenges:U.S. Airlines Reaction to Economic Challenges:

Focus on Profits by Constraining Growth of Flights

Hold or Increase FaresHold or Increase Fares

Reduce Overall Seat Capacity in System

Add Lucrative International Service by Shrinking y gDomestic Service

Charge for Ancillary Services

Result: Soft Domestic Passenger Market in Near-Term

3

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Challenges

Uncertain Short-Term US and Global Economic Outlook Affecting gPassenger and Cargo Traffic Growth

N d I d D ll F iliti C t A D i i Hi h Sh tNew and Improved Dulles Facilities Costs Are Driving Higher Short Term Airlines Costs Relative to Other Airports

Newly Expanded Facilities and Improvements Have Pushed Higher Costs, Making us More Reliant on Airline Activity for Revenue

Use and Lease Agreement Constrains MWAA Managing as One Airport System

4

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

The Enplanement Forecast History Providesp yInsight into the Current Financial Profile

IAD Enplanements - Actuals and Forecasts

14

16

18

20

Mill

ions

8

10

12

14

0

2

4

6

Enplanement forecasts significantly flattened over the last decade; but only

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Actual 2002 Projections 2005 Projections 2008 Projections 2011 Projections 2012 Projections

5

p g y ; yafter Dulles was committed to a significant Capital Construction Program

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Average Cost Per Enplanement (CPE) Can be Significantly Impacted by Activity Level

Example Increase of One Million Enplanements (9% increase)

Dulles International

2013 Projected Adding 1 Million Enplanements

Difference

p p ( )

Enplanements 11,125,000 12,125,000 1,000,000CPE (Without PFCs) $30.03 $27.54 ($2.49)Applying PFCs $42 million $45 9 million $3 9 millionApplying PFCs $42 million $45.9 million $3.9 millionCPE (With PFCs ) $27.30 $24.79 ($2.51)

6

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Continuing Financial Strategiesfor Dulles International

Operating costs have been held to minimal increases; below levels i l d d i ffi i l f t

for Dulles International

included in official forecasts

Manage Capital Program by building as demand warrants

New Debt authorized for the Dulles Capital Program in 2013 hasNew Debt authorized for the Dulles Capital Program in 2013 has been held to a minimum

Pursuing longer-term strategies for new non-aeronautical revenues

Pursue strategies within Use and Lease Agreement negotiations to more proactively manage revenues and costs as an airport system

A i l t iti f i i ti itAggressively pursue opportunities for increasing activity

7

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Airport Corridor ProvidesQuick and Direct Access to the AirportQuick and Direct Access to the Airport

Dulles Toll Road

Dulles Access Highway

Metrorail Alignment

8

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

First in the Nation to DisplayReal Time Security Line WaitsReal-Time Security Line Waits

9

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Customers Can Access the Data RemotelyCustomers Can Access the Data Remotely and Make Their Own Informed Choice

Before Entering the Terminal

10

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles is Hosting Trend-SettingTSA Pre-Check and Global Entry SolutionsTSA Pre-Check and Global Entry Solutions

11

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

AeroTrain Automated People Mover (APM)Is Running Smoothly (99.85% availability in 2012)

12

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles International Has the Lowest Average Taxi and

Second Lowest Weather Delays Among Major East Coast Hub Airports

Average Taxi-In/Taxi-Out Delay Time by Airport (minutes)

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Average Taxi‐In Delay Average Taxi‐Out Delay

2 9 3.7 3 14.3 4

3.63.4 3.7

3.2 3.5 4.4 5.3 4.83.5 4.8 5.8 7.4 8.2

8.410

19,575

23,62824,692

26,088

Number of Delays Due to Weather Conditions by Airport

1.3 2 1.72.9 2.8 2 1.5 2.2

3.7 3.1 2.6 1.9 1.9

WashingtonIAD

Denver SanFrancisco

LosAngeles

M iami HoustonIAH

Boston Phoenix Dallas DFW ChicagoORD

Detroit Philadelphia Newark Atlanta New YorkJFK

4 3566,400

8,3669,799

19,575

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374 946 973 1,387 1,808 2,0403,181 4,356

LosAngeles

WashingtonIAD

M iami Detro it Phoenix Denver Dallas DFWHoustonIAH

Boston NewYorkJFK

Philadelphia SanFrancisco

Newark Atlanta ChicagoORD

Source: FAA ASPM Report, 12 Months Ending November 2010

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Serves the Newest andLatest Generation Aircraft: A380 B787 B747-8iLatest Generation Aircraft: A380, B787, B747-8i

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Expanded Fuel Tank Settling Farm that Ensures Lower Costs and Greater Availabilitythat Ensures Lower Costs and Greater Availability

Washington Dulles has among the lowest fuel costs on the East Coast and the Washington Dulles has among the lowest fuel costs on the East Coast and the most robust and reliable supply

Total Fuel Related Costs - Cents per Gallon

Airport TransportationAirport

DistributionFederal Excise

Tax State Tax

IAD 3.8 2.0 4.4 10.2

Total

LGA

EWR

JFK

5.9

5.9

5.9

2.0

6.7

2.6

4.4

4.4

4.4

12.3

17.0

12.9

PHL

BOS

5.0

5.3

1.6

4.3

4.4

4.4

2.0

12.0

13.0

26.0

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T YM E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Recently Completed International Arrivals Building ProvidesInternational Arrivals Building Provides

First Class Welcome

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Student Ambassadors Greet and Assist our Arriving International Passengersand Assist our Arriving International Passengers

All of our Ambassadors are attending college, and most (90%) are bilingual representing 16 different languages, and provide the CBP with translation assistance

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with translation assistance.

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Customer Service Touch Points

– Fast security• 88% of Dulles passengers are either satisfied or very satisfied with security

screening processscreening process– Global Entry Program

• 92% of arriving international passengers are either satisfied or very satisfied with the CBP processing speed when using Global Entry (Dulles has among the highest

t f i th N ti )percentage of users in the Nation)– Clear, visible and simple signage (including Flight Information Displays)

• 97% of Dulles passengers are either satisfied or very satisfied with directional signage and FIDs inside the terminal

– Working condition of elevators, escalators and moving walkways• 98% of Dulles passengers are either satisfied or very satisfied with working

condition of elevators, escalators and moving walkwaysCleanliness in the terminal and bathrooms– Cleanliness in the terminal and bathrooms

• 97% of Dulles passengers are either satisfied or very satisfied with cleanliness of the terminal and restrooms

– Overall Appearance of the Facilities

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• 95% of Dulles passengers are either satisfied or very satisfied with cleanliness of the terminal and restrooms

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles Is Part of Aviation History

• Air France A380 Arrival on June 6, 2011• Space Shuttle Discovery Arrival on April 17• Lufthansa 747 8i Arrival on June 1• Lufthansa 747-8i Arrival on June 1• Ethiopian 787 Arrival on June 15• Dulles Celebrates its 50th Anniversary

19

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Dulles is Positioned for Growthand Ready for the next 50 years…

Dulles Now Dulles Future

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Major IAD Facilities

Current Future

Runways 4 5Runways 4 5

Terminals 1 2

Concourse Tiers 2 4Concourse Tiers 2 4

Gates 135 >250

International Arrivals 4,000 per hour >8,000 per hour

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

C t S i T i l C itiCurrent Saarinen Terminal Capacities

Terminal Component Annual Passengers

Overall Terminal Structure 45 million

Outbound Baggage 27 million

Passenger Screening 35 million

Ticketing 42 millionTicketing 42 million

Baggage Screening 45 million

B Cl i 45 illi

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Baggage Claim 45 million

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Existing/Future Terminals and Concoursesg

Saarinen Terminal Saarinen Terminal (T1)

B A

D C

B A

D CD C

F E

Existing Gates: 135

H G

South Terminal

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Ultimate Capacity: 250 gates

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Airfield Capacity

Hourly Inclement Weather Operations4 Runways: 125 5 Runways: 1805 Runways: 180

Annual Operations4 Runways: 600 thousand4 Runways: 600 thousand 5 Runways: 1 million

Annual Operations Past 12 Months: 336.5 thousand

24

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Air Service Development Objectives for Dulles

Retain and Support Current Domestic & International Air ServiceAll Top 50 Domestic Markets Served - 44 International Markets Served

Identify, Pursue & Obtain New Air Service to Destinations Highly Travelled to and from the Washington Region

In 2012: 3 New Foreign Flag Airlines & 7 New or Competitive Service Destinations

Establish Dulles International as a Major U.S. Air Cargo GatewayFreighter service to Europe on track for Q3 2013

Niche markets under development: Flowers and other perishable air cargoc e a ets u de de e op e t o e s a d ot e pe s ab e a ca go

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Air Cargo Service Priorities

Increase Cargo Flow to Dulles

Grow Belly CargoGrow Belly Cargo

Encourage Expansion and Promote Dedicated All-Cargo o ote ed cated Ca goFreighter Service

Develop Infrastructure IncludingDevelop Infrastructure Including Cold Storage and Handling Equipment

Develop Investor Interest in the Dulles Air Cargo Expansion Initiative

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M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Air Service Advantage of Dulles InternationalAir Service Advantage of Dulles InternationalThe U.S.’ Strongest Local Major Market

in the Heart of the Washington Region’s Economy

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Notes:1. Composite score is based on sum of individual category ranks2. Job growth is non-annualized and compares June 2012 to June 2007Sources: U.S. Census Bureau, 2010 American Community Survey; U.S. Bureau of Labor Statistics; Woods & Poole Economics, CEDDS 2012

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

International Passenger Growth at W hi t D ll H O t f d It PWashington Dulles Has Outperformed Its Peers

Dulles International Passenger Traffic Has Grown 72% over the Past 10 Years

71.9%67.3%70%

80%

Comparison of 10‐Year Growth in International Passengers(YE May 2012 vs. YE May 2002)

h 63.3%

50.4%45.5%50%

60%

70%

seng

er G

row

th

21.8% 21.4%15.5%20%

30%

40%

002-

2012

Pas

s

0%

10%

IAD JFK ATL PHL DFW BOS ORD BWI

20

28Source:  U.S. DOT International T100 Report

2.64 9.57 3.65 1.27 1.69 0.71 1.80 0.06Growth by Number

(million)

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

Federal Aviation Administration (FAA) ForecastsFederal Aviation Administration (FAA) Forecasts Dulles International to Grow Greater

Than Other Regional Airports by 2040

201132.2 Million Enplaned Passengers

204069.0 Million Enplaned Passengers

DCADCA12.5

BWI

IAD11.6M

DCA9.4M

BWI

IAD 33.1M

BWI11.2

BWI23.4M

29Source: FAA Terminal Area Forecasts 2011

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

What I said last year….Key Questions and Issues for 2012:

What will continued “capacity discipline” mean for domestic service at Dulles International?

How will the United-Continental merger affect capacity and service at Dulles International?

Will fuel prices continue to remain high?

Will air service expansion suffer if U.S. Federal Government cutbacks affect regional economic growth?

How will economic uncertainty in Europe, unrest in the Middl E t d th l b l t d ff t i t ti lMiddle East, and other global trends affect international service at Dulles International?

Will air cargo service increase with improvement in the

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Will air cargo service increase with improvement in the economy?

M E T R O P O L I T A N W A S H I N G T O N A I R P O R T S A U T H O R I T Y

The Sky’s The LimitAt Dulles

We are sitting on the crown jewel at Dulles—Convenient l b l d i l d h lth b i

At Dulles

global and regional access and a healthy business environment.

An improving economy will drive opportunities to Dulles.p g y pp

Being alert and ready for every opportunity is vital.

We must nurture Dulles in the interim.

We need to send the message of Dulles’ potential to:

The Public

Airlines

State/Local Partners and Agencies

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Developers

Ronald Reagan Washington National Airport Dulles Corridor Metrorail Project

Washington Dulles International AirportDulles Toll Road