Gateway to the West & North West of A Visionary A regional success story

• 1986 - 9,208 passengers - 1 daily flight to London

• 2017 – 750,00 passengers - 123 wkly flights to 23 International destinations

• 1986 – 2017 - 10m+ passengers have used the airport in 31 yrs Catchment area of over 1m people

Corporate Structure

Ownership CADCO Structure

Airport is owned by a Connaught Airport Trust & 7 local Development Company Regional authorities & held for is delegated to run the the people of the region airport operation Remit

International air Re- Independently connectivity & stimulate Operated tourism, enterprise & jobs Investment

All dividends or profits Operates on a are re-invested in the commercial remit company Serving 24 International Destinations 2017 Aviation Partners Passenger Growth 1986 - 2017

800,000 750,000 PAX

700,000

600,000

500,000 PAX Numbers PAX

400,000

300,000

200,000

100,000 1986 2000 2017

Year Historic partnership with 7 local authorities Regional airports - key economic drivers An Airport for the regions

Q. If your journey originated in the UK/Europe what counties did you visit whilst in Ireland? Survey Base: 375 overseas based passengers arriving between June – October 2016

Donegal – 13% Over 200,000 900,000 – 23% visitors to Bed nights Leitrim – 6% – 2%

the region annually Mayo – 66% – 15% – 5%

annually – 28% Westmeath – 3%

Offaly – 3% Clare – 5% €110m spend in the region Kerry – 2%

Note: Respondents indicated they visited more than one county during their stay with an average of 3 counties visited Overseas marketing 2017-19

€500,000 investment in overseas campaigns promoting West/North West 2016/2018 €100k spend in the UK alone in 2017 Driving awareness of the regions we serve The Brexit Challenge UK market critically important to West & North West Region • Circa 3m visitors to the region since 1986 generating spend upwards of €1bn+ in the local and regional economies • Almost 0.5m inbound airline seats annually from UK cities directly into the West • 25% of all British holidaymakers to Ireland visit the West / North West* • 85% of access into Ireland West Airport is from the UK • Biggest choice of UK services outside of Dublin & Cork Airports with flights to 9 different UK airports • UK market represents overall 40% exposure to Airports. Proportionately more for smaller airports and less for .

*Source: Tourism Ireland Market Profiles UK Passenger Growth 2012 - 2017

700,000 Inbound passenger growth from Britain co-incides with strong £ currency

600,000

500,000

400,000

300,000

200,000

100,000

- 2012 Pax 2013 Pax 2014 Pax 2015 Pax 2016 Pax 2017 Pax UK Passenger Growth LF% 2012 - 2017

• On average 75% of seats to and from the UK market are filled

80% • 25% growth in load factor over six year period

70%

60%

50%

40%

30%

20%

10%

0% 2012 LF 2013 LF 2014 LF 2015 LF 2016 LF 2017 LF Low Cost access driving growth Brexit creates particular challenges for Irish Aviation due to strong traffic flows

Ireland is the EU Country most dependent on UK Passenger Traffic Value of Tourism to the Republic of Ireland

€4.7bn 9m 220k Jobs Revenue Visitors in the sector +10% v 2015 +12% vs 2015

1 in 9 people 3.8m visitors Increase in Tourism employed in tourism & to Rep. of Ireland generated Promoting Funding hospitality sector €1.1bn Critical Ireland now more expensive for British visitors 2017 to date • Overall visitor numbers to Ireland from Britain down 6% • British holidaymakers down by 9% YTD • 300,000 less British visitors p.a. • €88m p.a. in lost revenue • €1,900 less tourism jobs

Despite this passenger numbers on UK services from Ireland West Airport are up 4% YTD – driven by outbound demand?? Ireland now more expensive for British visitors Brexit Challenges

2017 to date • Limitations to Free Movement of People & Goods: Border Control, Schengen & Visas • Threat to Common Travel Area: Maintaining its current form 300,000 less British visitors p.a. • Tourism Decline: Tourism Ireland forecasts UK visitor decline in 2017 - 1st in 5 years, UK increasing regional tourism spend • Freedom of Skies/Liberalised EU Air Transport hampered: Air Agreements

Brexit Challenges

• Inconsistent Safety, Security & Other Regs: Incl State Aid • Currency Movement/Broader Economic Effect: Sterling etc • Threat to Common Travel Area: Maintaining its current form300,000 less British visitors p.a. • Tourism Decline: Tourism Ireland forecasts UK visitor decline in 2017 - 1st in 5 years, UK increasing regional tourism spend • Freedom of Skies/Liberalised EU Air Transport hampered: Air Agreements

Brexit Opportunities

• Potential Duty Free Opportunities: UK Routes • Inconsistent Safety, Security & Other Regs: Incl State Aid • Transfer Pax Opportunities from Non-EU to EU • FDI Relocation Opportunities : Ireland only English-speaking state in EU Tourism Decline: Tourism Ireland forecasts UK visitor decline in 2017 - 1st in 5 years, UK increasing regional tourism spend • Freedom of Skies/Liberalised EU Air Transport hampered: Air Agreements

Investing in airports future : Tourism

• The recently published Aviation Policy Framework for the UK recognises the contribution of airports to regional economic growth

• A recent UK report credits regional airports and associated businesses with bringing £14 billion to UK GDP and supporting 250,000 jobs

• Improved air connectivity results in an increase in economic output, Airports Council International (ACI) state that for every 10% increase in air connectivity in a country the GDP for every person will increase by an additional 0.5%

What the region needs

• Tourism/aviation need to be front left and centre of the Irish Government Brexit team - Protect the common travel area • Future continued investment in regional airports to assist in addressing regional imbalance and promoting sustainable regional development • A coordinated regional tourism plan to drive passenger numbers from the current 750k to 1m p.a • Increased investment in co-operative overseas marketing campaigns to support the airports growth plans and emphasis on maintaining current route network and developing new access into the region • Need for greater development and investment in securing direct air access from European and US markets to the west coast • Soft Brexit is the best result for Ireland, but we must plan for all 3 outcomes

Contact Mr Joe Gilmore Managing Director Ireland West Airport Knock Charlestown, Co. Mayo, Ireland T +353 94 936 8110 F +353 94 936 7994 E: [email protected] 29