LONG BEACH, CALIFORNIA

1. October 18-20, 2010 LONG BEACH, CALIFORNIA

2. October 18-20, 2010 LONG BEACH, CALIFORNIA Strategic Planning and Achieving Your Vision Mario Rodriguez Executive Director Long Beach Airport Mario.Rodriguez@longbeach.gov

3. Using Strategic Planning To Achieve Your Vision Vision Traditional Master Planning Strategic Planning The Long Beach Airport Commercial

4. Using Strategic Planning To Achieve Your Vision Vision Traditional Master Planning Non-Traditional Strategic Planning Rigid Approach Flexible Approach Over-Building Under-Building Wrong Location Obsolete Facility Following the Moving Target Achieving the Vision

5. LGB Vision: Improve Customer Service To Continuously Exceed Our Customer’s Increasing Expectations How will We Achieve Our Vision Personnel Training and Commitment Maintaining The Existing Facilities In Top Condition Providing Unique and Superior Facilities 5

6. LGB Vision: Improve Customer Service What Are Our Customer’s Expectations? Ease of Use and Convenience 20 minutes from curb to plane Low Cost Passengers - Lowest ticketed price in CA and 2nd lowest in US Airlines - 2nd lowest EPAX in CA Unique and Superior Facilities 6

7. LGB Vision: Improve Customer Service The Challenge - Delivering Unique and Superior Facilities Without: Reducing The Existing Ease of Use and Convenience Increasing Cost to Passengers and Our Airline Partners Right-Sizing and Developing Flexible Facilities 7

8. Traditional Master Planning Approach FAA AC 150/5070-6A ICAO – Airport Planning Manual Development Forecast (Pick One) Alternative Development Scenarios for the Forecasts Preferred Alternative Selection 8

9. Traditional Master Planning The Risk with Master Planning Forecasts are Always Wrong Fails to Take A Business Approach to Development Market conditions place practical constraints on deliverables Fails to Anticipate the Risk of Change in Market Conditions Seldom Analyzes Financial Implications Public Works Approach vs. Business Approach 9

10. Why Strategic Planning? Strategic Planning recognizes that that there is a massive uncertainty in long range forecasting and planning Strategic Planning • Endeavors to understand the dynamics of development • Factors in market realities to place practical constraints on what can be achieved Unworkable Projects Languish 10

11. Strategic Planning Strategic Options Should Define a Wide Range of Possible Developments - Taking Into Consideration Business Reasons Costs Risks Flexibility Your Plan Should Only Commit to Immediate First Stage Decisions. 11

12. Designing LGB’s Future Home to over 15,000 Full-Time Jobs LGB’s Economic Impact: $4.12 billion Over 3 Million Annual Passengers • 41 Daily Commercial Service Flights & 25 Commuter Flights • Averages 310,000 Annual Operations Your Decisions Have Lasting Effects 12

13. Current Market Conditions 13

14. Current Market Conditions FAA Scaled Back Forecasted Industry Growth from 2% to 0.4% in 2010 System-wide Capacity Expected to Drop by Another 1.6% in 2010 Commercial Operations Expected to Drop 2.2% in 2010 No Rapid Recovery for Aviation Industry 14

15. Current Market Conditions 39 National Airports Have Received Downward Airport Bond Rating Outlooks Significant Reductions in Passenger Traffic for Competitors - LAX and John Wayne experienced traffic decreases above 5% compared to 2008 - Ontario International enplanements decreased 21.6% compared to 2008 15

16. The LGB Commercial Uncommon Solutions Focused on Our Core Mission & Vision Customer Service Safety & Security Employed a Strategic Approach - Demand for new construction - Scalable Development - Flexible Development Employ Enterprising Solutions! 16

17. The LGB Commercial Right-Sizing Development Meet Short-Term Needs Scalable Immediate Return or Financed by Leveraging PFCs CIP Structured to Maximize AIP and Minimize use of Airport Funds 17

18. The LGB Commercial 18

19. The LGB Commercial 19

20. The LGB Commercial 20

21. Terminal Improvement Strategy Right-Sized Project Scope to Fit Market Conditions Ensures LGB Meets Customer Needs • Maintains Airport’s viability into the Future 21

22. Terminal Improvement Strategy Project Priorities Passenger Experience - Providing a Unique Experience Convenience: Maintaining What is Great About LGB - Comfort: Replacing Existing Trailer Facilities - Safety: Building Location and Orientation Cost Control - Balancing Airport Needs and Affordability - No Undue Financial Burden to the Airlines 22

23. Terminal Improvement Strategy Project Priorities Meet Immediate Needs - Permanent Holdrooms - Enhanced Concessions - Consolidated Passenger Screening 23

24. Terminal Improvement Strategy Building a Better Way to Fly! 24

25. Strategic Outcomes Development Outcomes No Negative Effect on Airlines’ Rate-Base Designed Common Area for Provide a Unique Experience Prioritized Revenue Generating Areas Financed with GARB and PFC-Backed Bond Empty Gates & Concessions Do Not Make Money 25

26. Outcomes Airport Enterprise Fund Outcomes Passenger Traffic Remained Stable in 2009 and 2010 Bond Rating Outlook Remains Stable Maintained Low EPAX for Airlines $6.45 compared to statewide competitors averaging $10 - $20 Attracted Two New Airlines in 2010 – Frontier and Allegiant 26

27. Using Strategic Planning To Achieve Your Vision Question & Answer Period Mario Rodriguez Executive Director Long Beach Airport Mario.Rodriguez@longbeach.gov 27

28. October 18-20, 2010 LONG BEACH, CALIFORNIA Strategic Planning and Achieving Your Vision Mario Rodriguez Director The Long Beach Airport Mario.Rodriguez@Longbeach.gov 28