M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles Update: The Year in Review, and the Outlook Ah d O tl k Ahead
December 2012
Christopher U. Browne p Vice President and Airport Manager Washington Dulles International Airport

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles Serves the Customer
Contemporary p y Predictable Satisfying Reliable

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Airline Industry

U.S. Airlines U S Airlines’ Reaction to Economic Challenges: Focus on Profits by Constraining Growth of Flights Hold or Increase Fares Reduce Overall Seat Capacity in System Add Lucrative International Service by Shrinking y g Domestic Service Charge for Ancillary Services Result: Soft Domestic Passenger Market in Near-Term

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles Challenges

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

New and I N d Improved D ll F iliti C t A D i i Hi h Sh t d 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

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

The Enplanement Forecast History Provides p y Insight into the Current Financial Profile
IAD Enplanements - Actuals and Forecasts
Millions

20 18 16 14 12 10 8 6 4 2 0 2002 2003 Actual 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2002 Projections 2005 Projections 2008 Projections 2011 Projections 2012 Projections

Enplanement forecasts significantly flattened over the last decade; but only p g y ; y after Dulles was committed to a significant Capital Construction Program
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

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

Example Increase of One Million Enplanements ( p p (9% increase) )
Dulles International Enplanements CPE (Without PFCs) Applying PFCs CPE (With PFCs ) 2013 Projected 11,125,000 $30.03 $42 million $27.30 Adding 1 Million Enplanements 12,125,000 $27.54 $45.9 $45 9 million $24.79 Difference 1,000,000 ($2.49) $3.9 $3 9 million ($2.51)

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Continuing Financial Strategies for Dulles International
Operating costs have been held to minimal increases; below levels included in ffi i l forecasts i l d d i official f t Manage Capital Program by building as demand warrants New 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 Aggressively pursue opportunities f i A i l t iti for increasing activity i ti it

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles Airport Corridor Provides Quick and Direct Access to the Airport

Dulles Toll Road

Dulles Access Highway

Metrorail Alignment

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

First in the Nation to Display Real-Time Real Time Security Line Waits

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Customers Can Access the Data Remotely and Make Their Own Informed Choice Before Entering the Terminal

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles is Hosting Trend-Setting TSA Pre-Check and Global Entry Solutions

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

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

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

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)
Average Taxi‐In Delay Average Taxi‐Out Delay
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8.4 8.2

3.5 3.2 3.6 1.3 3.4 2 3.7 1.7
San Francisco

4.8

5.8

7.4

3.5

4.4

5.3

4.8 3.7 4.3 2.6
Detroit

2.9 29
Los Angeles

2.8
M iami

2
Houston IAH

1.5
Boston

2.2

3.1 31

4

1.9

1.9
Atlanta New York JFK

Washington Denver IAD

Phoenix Dallas DFW Chicago ORD

Philadelphia Newark

26,088

Number of Delays Due to Weather Conditions by Airport
1 9,575

23,628

24,692

8,366 6,400 3,1 81 374 946 973 1 ,387 Detro it 1 ,808 2,040 4,356 4 356

9,799

Lo s Washingto n M iami A ngeles IA D

P ho enix

Denver Dallas DFWHo usto n B o sto n NewYo rkP hiladelphia San Newark IA H JFK Francisco

A tlanta

Chicago ORD

Source: FAA ASPM Report, 12 Months Ending November 2010

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles Serves the Newest and Latest Generation Aircraft: A380 B787 B747-8i A380, B787,

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Expanded Fuel Tank Settling Farm that Ensures Lower Costs and Greater Availability
Washington Dulles has among the lowest fuel costs on the East Coast and the most robust and reliable supply
Fuel Related Costs - Cents per Gallon
Airport Federal Excise Distribution Tax 2.0 2.0 6.7 2.6 1.6 4.3 4.4 4.4 4.4 4.4 4.4 4.4 2.0 12.0 Total

Airport IAD LGA EWR JFK PHL BOS

Transportation 3.8 5.9 5.9 5.9 5.0 5.3

State Tax

Total 10.2 12.3 17.0 12.9 13.0 26.0

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Recently Completed International Arrivals Building Provides First Class Welcome

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Student Ambassadors Greet and 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. assistance
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Customer Service Touch Points
– Fast security
• 88% of Dulles passengers are either satisfied or very satisfied with security screening process 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 percentage of users in the Nation) t f i th N ti ) 97% of Dulles passengers are either satisfied or very satisfied with directional signage and FIDs inside the terminal 98% of Dulles passengers are either satisfied or very satisfied with working condition of elevators, escalators and moving walkways 97% of Dulles passengers are either satisfied or very satisfied with cleanliness of the terminal and restrooms 95% of Dulles passengers are either satisfied or very satisfied with cleanliness of the terminal and restrooms
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– Global Entry Program

– Clear, visible and simple signage (including Flight Information Displays)

– Working condition of elevators, escalators and moving walkways

– Cleanliness in the terminal and bathrooms

– Overall Appearance of the Facilities

M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

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 1 747-8i Ethiopian 787 Arrival on June 15 Dulles Celebrates its 50th Anniversary

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Dulles is Positioned for Growth and Ready for the next 50 years…
Dulles Now Dulles Future

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Major IAD Facilities
Current Runways Terminals Concourse Tiers Gates International Arrivals 4 1 2 135 4,000 per hour Future 5 2 4 >250 >8,000 per hour

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Current S C t Saarinen Terminal Capacities i T i lC iti
Terminal Component Annual Passengers

Overall Terminal Structure Outbound Baggage Passenger Screening Ticketing Baggage Screening Baggage Cl i B Claim

45 million 27 million 35 million 42 million 45 million 45 million illi
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Existing/Future Terminals and Concourses g
Saarinen Terminal B D A C Saarinen Terminal (T1) B D F H A C E G

Existing Gates: 135
South Terminal

Ultimate Capacity: 250 gates
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Airfield Capacity

Hourly Inclement Weather Operations 4 Runways: 125 5 Runways: 180 Annual Operations 4 Runways: 600 thousand 5 Runways: 1 million

Annual Operations Past 12 Months: 336.5 thousand

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Air Service Development Objectives for Dulles
Retain and Support Current Domestic & International Air Service
All 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 Gateway
Freighter service to Europe on track for Q3 2013 Niche markets u de de e op e t Flowers a d ot e perishable a ca go c e a ets under development: o e s and other pe s ab e air cargo

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Air Cargo Service Priorities
Increase Cargo Flow to Dulles Grow Belly Cargo Encourage Expansion and o ote ed cated Ca go Promote Dedicated All-Cargo Freighter Service Develop Infrastructure Including Cold Storage and Handling Equipment Develop Investor Interest in the Dulles Air Cargo Expansion Initiative

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Air Service Advantage of Dulles International
The U.S.’ Strongest Local Major Market in the Heart of the Washington Region’s Economy

Notes: 1. Composite score is based on sum of individual category ranks 2. Job growth is non-annualized and compares June 2012 to June 2007 Sources: U.S. Census Bureau, 2010 American Community Survey; U.S. Bureau of Labor Statistics; Woods & Poole Economics, CEDDS 2012

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

International Passenger Growth at Washington D ll H O t W hi t Dulles Has Outperformed Its Peers f d It P
Dulles International Passenger Traffic Has Grown 72% over the Past 10 Years
Comparison of 10‐Year Growth in International Passengers
(YE May 2012 vs. YE May 2002)
80% 71.9% 20 002-2012 Pass senger Growth h 70% 60% 50.4% 50% 40% 30% 21.8% 20% 10% 0% 21.4% 15.5% 45.5% 67.3% 63.3%

IAD
Growth by Number (million) 2.64

JFK
9.57

ATL
3.65

PHL
1.27

DFW
1.69

BOS
0.71

ORD
1.80

BWI
0.06

Source:  U.S. DOT International T100 Report

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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

Federal Aviation Administration (FAA) Forecasts Dulles International to Grow Greater Than Other Regional Airports by 2040
2011 32.2 Million Enplaned Passengers 2040 69.0 Million Enplaned Passengers

DCA 9.4M BWI 11.2

DCA 12.5 IAD 11.6M BWI 23.4M IAD 33.1M

Source: FAA Terminal Area Forecasts 2011
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

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 Middle E t Middl East, and other global trends affect international d th l b l t d ff t i t ti l service at Dulles International? Will air cargo service increase with improvement in the economy?
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M ET R O P O L I T A N W A S H I N G T O N A I R P O RT S A UT H O R I TY

The Sky’s The Limit At Dulles
We are sitting on the crown jewel at Dulles—Convenient global and regional access and a h lth b i l b l d i l d 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 Developers
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Ronald Reagan Washington National Airport

Dulles Corridor Metrorail Project

Dulles Toll Road

Washington Dulles International Airport

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