1. AIR SERVICE DEVELOPMENT AND CONSULTING SERVICES Proposal Presentation Prepared for: San Angelo City Council April 19, 2011

2. SH&E is a Unique Consultancy Serving Clients with all Formsof Aviation Expertise Specialty consulting firm of over 80 staff dedicated exclusively to aviation In business 47 years since founding in 1963; performed over 6,000 individual engagements worldwide Full-service offices in Boston, New York, and London, with specialists worldwide Professionals recruited from airlines, airports, academia, finance, government agencies, manufacturers, and IT

3. SH&E has Worked for an Unmatched List of Airline Clients in North America

4. SH&E’s Airport Clients Are Literally All Over the Map Vancouver Edmonton Large Airports Medium Airports Small AirportsAgencies Anchorage Calgary Bellingham Moncton Seattle Fredricton Nova Scotia WSDOT Portland Eugene Montreal ND Aero. Div. N.E. Council Portland Burlington Toronto Klamath Falls Lebanon VTRANS Manchester Oneida Albany Massport (Boston) MAC Minneapolis Hanscom Niagara Falls New Bedford Michigan DOT Wyoming Dept of Aero. Hyannis Providence Milwaukee Lansing New Haven Wilkes-Barre Stewart Windsor Detroit Allentown NY/NJ Port Authority SteamboatSprings Chicago O’Hare Harrisburg Sacramento Chicago Midway Cleveland Toledo Iowa DOT Philadelphia MD Aviation Auth. Salt Lake City Lincoln San Francisco Atlantic City Denver Modesto Indiana DOT Baltimore/Washington Int’l Greenbrier IllinoisDOT MWAA San Jose ColoradoSprings Colorado DOT Fresno Kansas City Charlottesville Monterey Cincinnati Garden City Salina Newport News Louisville WV DOT Las Vegas Pueblo Durango VDOA Norfolk St. Louis San Luis Obispo Roanoke Richmond Wichita Owensboro Springfield/ Branson Palmdale Rocky Mount Farmington Raleigh/Durham Burbank Ontario N. Carolina DOA Arizona DOT Los Angeles Nashville SCAG New Mexico DOT Palm Springs Chattanooga LittleRock SANDAG Phoenix San Diego Atlanta Albuquerque Huntsville Mexicali Lubbock Charleston Tupelo Tijuana Augusta Bermuda Dallas Love Field Shreveport Tucson MS DOT Dallas/Ft. Worth Hilton Head Birmingham Hawaii DOT Brunswick Jackson LA AirportAuthority Savannah Valdosta Baton Rouge Jacksonville Abilene Mobile Daytona Beach Alexandria More than 100 Additional Airport and Agency Clients Worldwide Ocala Gulfport Melbourne Lafayette San Antonio New Orleans Sanford-Orlando Vero Beach Houston West PalmBeach Tampa Freeport Ft. Myers Fort Lauderdale Harlingen Naples Miami San Juan, PR

5. SJT performed better than the overall industry in 2009-2010; however, AA’s capacity cuts in YTD 2011 and those to come will significantly impact the airport Scheduled Departing SeatsCY 2006-2010, YE May 2011 U.S. Industry (000,000’s) San Angelo(000’s) U.S. Industry San Angelo Source: OAG Schedules.

6. San Angelo Has Three Important Goals for its Air Service Effort Maintain American Eagle Service to DFW Monitor Service Performance Stay in Contact with American Eagle and Be Ready to Solve Problems Promote Growth by Improving Existing Services More Frequencies Jet Service Better Timed Flights Secure New Service with Competitive Air Fares New Markets New Airlines

7. Airline Planners Are Looking for Interesting and Insightful Analysis Unique Information – offering a new, distinctive viewpoint and analysis is more impactful than showing information an airline already knows Accurate Data – airlines do not believe inflated revenues or growth, illustrating realistic data estimates makes a more compelling case Comparative Analysis – 95 percent of airlines surveyed compare consultants’ analysis to their own – however they like having an analysis from a third party In–House Analysis – all airlines perform their own analysis and have access to the same industry data as an airport

8. Airports Must Bring Innovative and Fresh Thinking to the Airlines Fresh Perspective Present data that is unique and different, something a planner wouldn’t look at every day Local Expertise Sell your local expertise and connections NewData Introduce one-of-a-kind newly collected survey data that conveys something original Offer strategic thinking, especially a big picture and long-term outlook Strategy MarketKnowledge Illustrate a breakdown of seasonal market sizes, current traffic flows and current fares (on similar routes/carriers)

10. Passenger Survey

11. Business Community Round Table

12. Fare Analysis

13. Load Factor Analysis

14. Route Economics

15. Historical Service Analysis

16. Task 2– Benchmark SJT Against Competitors and Similarly Sized Airports

17. Quantify Leakage to Midland International Airport

18. How Does SJT Compare to Similarly Sized Communities in Texas?

19. Task 3 – Identify and Evaluate Deficiencies in Passenger Air Service

20. Determine Target Markets and Carriers

21. Task 4 – Develop Marketing Strategies and Carrier Presentations

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