Seattle-Tacoma International Airport

Inland Northwest Business Travel Association

April 9, 2013

Spokane, Washington

Sea-Tac Airport Quick Facts

33.2 million passengers 309,000 operations

283,500 metric tons of cargo Int’l passengers up 8.8% vs. 2011

Seattle added more international long-haul services in the last several years than any West Coast airport, and continues to grow rapidly

Newly added services by Emirates and ANA in 2012 have shown immediate success.

Delta has established Seattle as its premier West Coast international Gateway, with seven intercontinental routes in Summer 2013.

Focus Issues

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Seattle Market’s Strength

Strong Growth in Asia

High Premium Traffic Ratio

Solid Connecting Traffic Network

West Coast Airport ComparisonSeattle shows the strongest growth among major West Coast airports since the industry peak in 2000

Sources: ACI-NA and Airport Data

North American Ranking

Airport2012

Passengers Change from

CY 2000

3 Los Angeles 63,688,121 -5.4%

7 San Francisco 44,322,561 +10.0%

16 Seattle 33,223,111 +16.9%

28 Vancouver 17,596,901 +9.8%

31 Portland 14,390,784 +5.2%

Annual Total Passengers 2012

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AmsterdamParis

Tokyo (NRT and HND)

Seattle

Seattle’s Nonstop Intercontinental Services11 new intercontinental services have been added since 2007

Frankfurt

Beijing

Reykjavik

Nonstop intercontinental service

New service to begin Summer 2013

Osaka

Taipei

London (LHR)

DubaiShanghai

Seoul

Seattle’s Traffic is Growing

On-board Intercontinental Traffic Growth 2007-2012: 36.4% increase in passengers on

scheduled Pacific services 54.0% increase in passengers on

scheduled Atlantic services

44.0% increase for all intercontinental services

Source: Onboard passenger reports to the Port of Seattle by airlines.

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Passenger Traffic by Carrier33,223,111 Total in 2012

Source: Port of Seattle, as reported by airlines.

50.5% Alaska Air Group

15.5% Star Alliance

12.0% SkyTeam

9.0% Southwest

4.9% oneworld

Delta & Delta Connection 11.6%

Other SkyTeam 0.4%

United & United Express 10.8%

US Airways 3.0%

Other Star Alliance 1.7%

Southwest 9.0%American Airlines

4.3%

Other oneworld 0.6%

Other 8.1%

Alaska Air Group 50.5%

New International Service

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ANA: Tokyo/Narita

July 2012

Emirates: Dubai

March 2012

Delta: Tokyo/Haneda

June 2013

Delta: Shanghai

June 2013

Airport Developments: Realignment

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Airline Realignment

-Reorganization following numerous industry mergers

-United will undertake major shift of gates/counters from

North Satellite to A Concourse

-Alaska flights consolidated in newly renovated North

Satellite

Ticket Counter Renovations

-United and Delta undertaking major renovations to check-

in counters

-Increased efficiency and simplified wayfinding for

passengers

-“Flow-through” counters for Delta opening June 2013

-Enhanced customer experience

Airport Developments: North Star Project

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Alaska Airlines

-Alaska Airlines will consolidate their operations in the North Satellite, simplifying connections and wayfinding for passengers

-$230 million renovation will update the 40 year-old facility's infrastructure and seismic standards

-Renovated concourse will include increased natural lighting, more open space, charging stations, and expanded concessions

-Additional gates and taxiway improvements

Early Design Concept

New Developments: Rental Car Facility

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Consolidated Rental Car Facility

-New 5-story, 2.1 million square-foot facility opened in May

2012 to house all airport-related rental car operations

-LEED

® Silver certified

-Projected completed $20 million under budget

-Can process 12,000-14,000 rental cars on a peak day

-Clean, CNG-powered buses shuttle passengers to terminal

Airport Developments: Environmental

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Pre-conditioned (PC) Air

-Provides heated/cooled air to aircraft while at gate

-Saves airlines approximately $15 million in fuel

-Reduces greenhouse gases by 40,000 tons

Electric Ground Support Equipment

-Conversion of airport ground support vehicles to rechargeable, electric

engines

-Saves $2.8 million in fuel per year

-Reduces greenhouse gases by 10,000 tons per year

The Port of Seattle is committed to being the greenest, most energy-efficient port in North America

Airport Developments: ‘Greener Skies’

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More efficient flight procedures

-“Greener Skies” partnership between The Boeing Company and Alaska Airlines to

develop new flight procedures in concert with the FAA

-Uses GPS guidance for more direct, efficient descents that burn less fuel and reduce

emissions and noise

-When fully implemented, airlines will save $9 million annually and will reduce

greenhouse gas emissions by 30,000 tons

Airport Developments: Music Initiative

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Artist Recordings

-The airport’s welcome, security, and informational

announcements have been recorded by 32 well-known, local

artists.

-Artists as diverse as Quincy Jones, Sir-Mix-a-Lot, and

Macklemore highlight the region’s significant contributions to

music

Live Performances

-Local artists play live music throughout the terminal, enhancing the

passenger experience and spotlighting the Northwest’s musical

culture

Airport Developments: Concessions

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2012 Concessions revenue: $180 million

-Locally-owned concessions continue to thrive at Sea-Tac, with the opening of

Beecher’s Handmade Cheese and Caffé Vita joining a number of other Seattle-

and Northwest-based establishments

-Anthony’s Homeport is the highest-grossing airport concession in the United States

-The airport’s most-frequently requested concession, McDonald’s, will open this

spring

-International passengers can shop at one of three duty-free shops throughout the

terminal, including newly renovated South Satellite location

-Re-concept of all concessions by 2015

Fun Facts:

In 2012, Sea-Tac concessionaires sold 20,000 copies of 50 Shades of Gray…

as well as 10,000 Sleepless in Seattle nightshirts

Airport Developments: Security / Technology

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-Continued enhancements to the speed and reliability of the airport’s free Wi-Fi

-Use of QR codes to provide easy access to information

-Additional USB/electrical outlets throughout the terminal

-TSA Pre allows travelers to use dedicated lanes for ✓

expedited screening

-Global Entry allows international passengers to bypass

customs/immigration queues

-Real-time checkpoint wait times will soon allow

passengers to select the quickest route through security

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What’s Ahead?

-European carriers continue to struggle with economic crises in the EU and competition from Middle Eastern carriers for traffic to developing

markets

-Seattle has continued opportunity for growth on existing and new international routes

-Delta plans to begin nonstop service to London

-Increased frequency to London on British Airways

-Seattle’s largest domestic (Alaska) and international (Delta) carriers have the highest profit margins of any U.S. airlines

-SEA must manage facilities and infrastructure to handle increased growth

Source: Bureau of Transportation Statistics. Q3 2012 (most recent data available)

Thank you