SOUTH TERMINAL UPDATE

May 20, 2015

Agenda

• Introduction (Phillip N. Brown) • Recent Passenger Trends (Dr. Sean Snaith) • North Terminal Complex Capacity Update (Tom Chandler) • Recommendations (Phillip N. Brown) Date

INTRODUCTION

Phillip N. Brown, AAE Executive Director Greater Orlando Aviation Authority

Prior Approval

• In October 2013 the Board established double triggers for proceeding with design and construction of first phase of South Terminal • 40 Million Annual Passengers (MAP) and 2 million annual arriving international passengers at OIA for six consecutive months on a rolling 12-month basis Date

On-Going Review

• Staff is focused on balancing financial risk of investment in new capacity and maintaining acceptable level of service • Changed circumstances have required a review of the recommendations made to you in October 2013 Date

Recent Activity

• Rolling 12-month seat capacity is 42.7 million   Up 5.2% over 12-month capacity through Oct 2013 (an increase of over 2 million seats) • Passenger traffic is almost back to pre recession levels Rolling 12-month total through April 2015 will be approximately 600,000 short of MCO’s all-time peak of 37,274,845 Date

New Carriers and Service

• New airlines operating at MCO since Oct 2013  Azul   Thomas Cook Norwegian • Existing airlines operating new routes since Oct 2013  Air Transat Silver     Frontier Gol JetBlue Norwegian Southwest Spirit Sunwing Volaris Date

Increased Service to Existing Routes

• Existing airlines making significant service increases to existing routes since October 2013  Aer Lingus Copa  AeroMexico Delta    Air Canada American British Airways JetBlue Silver Southwest Date

Near Future New Service

• New airlines starting MCO service within the next 4 months  Emirates  LAN  Icelandair • Existing airlines starting new routes within the next 7 months  Delta      JetBlue Silver TAM Thomas Cook Virgin Atlantic Date

Southwest Concerns

• • • • • • • • • 1. GOAA is spending hundreds of millions of dollars today to expand the capacity of the north terminal and ensure it will handle up to 45 million passengers. Those improvements will allow the airport to work with its original 40 million trigger point for the start of work on the south terminal.

2. Within the larger north terminal project is $114 million to expand the international capacity of Airside 4. Again, this project should deliver the needed capacity for these flights and the forecast growth.

3. With the industry consolidation, MCO has vacant ticket counters and unassigned gates. The new terminal only makes that worse and increases everyone's' costs, including the airport.

4. Dedicating the new terminal to international operations does not address the issues of security checkpoint capacity and how to handle the large number of passengers and their bags who arrive well in advance of departure from the cruise ships and themed resorts.

5. The airline industry is consistently cyclical and recent short term growth is in no way guaranteed to continue. We believe that moving up the start date for the south terminal carries risk of costs exceeding their benefits should the industry go through another downturn.

Date

INTRODUCTION

• Dr. Sean Snaith, Director of UCF Institute for Economic Competitiveness • Tom Chandler, President and COO of Schenkel Shultz, General Contractor Date