STRATEGIC PLANNING

1. STRATEGIC PLANNING Mayor’s Economic Development Public Forum Saturday, September 8, 2007

2. 2007 AIRPORT BOARD Manny Vela, Chairman Bryan Duffy, Chairman Pro-Tem Rick Ledesma Dr. Bonnie de la Rosa Villarreal Jim Solis Ed Cyganiewicz Carlos Cuellar Sam Coats

3. Financial Research Customer Service Enhancements Marketing Airline Marketing Cargo Carriers General Aviation Master Plan Goals Summary Air Service Logistics & Distribution Infrastructure DISCUSSION POINTS

4. FINANCIAL • Revenue Bonds - $22,000,000 • Originally sold in 1988 – 1989 for terminal building • Refinanced in 1999 with pay-off date in 2012 • $1.1 million annual bond payments • Bond payoff of $4,798,401 accomplished on August 30 – 5 years early

5. RESEARCH Determine the demographic profile Determine frequency of use of VIA relative to other airports in the Valley area Measure airport preference Gain insight into the reasons for airport preference

6. RESEARCH 600 Telephone interviews across the Valley March 2007 Flown 1 time in last 12 months Household income of $50,000 or more 422 In-terminal passenger surveys All airlines, all times

7. FINDINGS What passengers like best about VIA 36% Size and ease of use 19% Convenience of location and accessibility 16% Facility amenities and operations 12% personnel and customer service 8% Desired airline flies out of VIA 3% Ambiance

8. FINDINGS Suggested Improvements 63% Did not have a suggestion. Of those who did have a suggestion:

9. FINDINGS Suggested Improvements 43% More/better shops and restaurants (especially after security) 11% Airline and flight related improvements (bring back American, get Delta, more flights to Houston and Austin) 10% Security – provide bags for liquids, more polite personnel, better info on fruit, check bags after x-ray

10. NEXT STEPS • WHAT DO WE DO TO RESPOND? • HOW DO WE MEASURE RESULTS?

11. ENHANCED CUSTOMER SERVICE The Concept To provide exceptional customer service The Opportunity Increased customer satisfaction Increased demand for service The Potential Increased airline service to satisfy increased demand

12. CURRENT SERVICES • Amenities • Food and Beverage by HMSHost • Starbucks • Gift and News Shops • VIA/VIP Club • Kids Port • Free WIFI • Workstations in gates • Curbside Check-in for Southwest • Secure Parking

13. CUSTOMER SERVICE ENHANCEMENTS Greeters/Customer Assistance

14. CUSTOMER SERVICE ENHANCEMENTS South Padre Island Shuttle

15. CUSTOMER SERVICE ENHANCEMENTS Parking lot shuttle

16. CUSTOMER SERVICE ENHANCEMENTS Concourse Restaurant (Cantina)

17. CUSTOMER SERVICE ENHANCEMENTS Shoe Shine

18. CUSTOMER SERVICE ENHANCEMENTS Charger Station Rapid charger for cell phones, smart phones, iPods

19. CUSTOMER SERVICE ENHANCEMENTS Flat screen televisions

20. CUSTOMER SERVICE ENHANCEMENTS • Annual Operating Cost : $425,000 • Capital Cost : $85,000 • Total $510,000

21. MARKETING PLAN • Primary Target Audience (based off the research) • Residents of the Rio Grande Valley • Leisure travelers • Persons 35-64 • Household income of $50,000+

22. MARKETING PLAN • Secondary Target Audience (based off the research) • Inbound and Outbound business travelers • Residents of Texas and Minneapolis

23. MARKETING PLAN • VIA’s central location in the Valley will be reinforced, especially to visitors (this can be done in the airport as well as along major traffic arteries) • VIA’s relative small size/ambiance will be leveraged (easy to navigate, less hassles), especially inside the airport

24. AIRLINE MARKETING Incumbent carriers Southwest Dallas Austin Las Vegas / Phoenix Chicago (same plane service) Continental Sun Country Year-round service to MSP Additional destinations New carriers Low Cost Carriers (LCCs)

25. AIRLINE MARKETING Develop Airport Ground Handling Services Use as Incentive for New Carriers Create Air Service Incentive Committee (7-9 Members) Airport Board City of Harlingen Development Corporation Chambers of Commerce Others (When appropriate) SPI, TSTC, ULA

26. CARGO CARRIERS • FEDEX • Airbus 310 and B-727 • UPS • B-757 • DHL • Cross-border operations • Recently upgraded from DC-9 to B-767 • BAX Global • B-727 (DC-8)

27. GENERAL AVIATION • U.S. Customs and Border Protection office for international flight processing • Construction of T-hangars • Expanded aircraft parking area • Gulf Aviation • Cessna Pilot Center / Service Center • New aircraft for training and rental • Air Taxi

28. MASTER PLAN • Airport Master Plan • Last updated in 2000 • Board awards contract to URS in May 07 • To be completed in summer of 08 • Focus on need for runway extension

29. LOGISTICS AND DISTRIBUTION • Identified in Harlingen First as a focus industry • Location • Airport infrastructure • NAFTA CargoPort • 400 acres of green field • Existing cargo carriers • 509 corridor / Free Trade Bridge • Port of Harlingen • 77/83 intersection

30. AIR SERVICE • Keep VIA a “low cost airport” • Develop services desired by airlines and which add value to VIA • Identify viable markets • Identify carriers most suited to serve those markets • Incumbent • New

31. INFRASTRUCTURE • Maintain VIA’s status as the best airport in the Rio Grande Valley • Continuous improvements to existing infrastructure • Develop, on a pro-active basis, as determined by identifying trends in local environment

32. STRATEGIC PLANNING Thank you!