# The Bay Area Is the 3rd Largest U.S. Air Service Market, ahead of

all except New 

# York and Los Angeles Domestic and International O&D Passengers

Source: U.S. Domestic and International O&D Survey and International T100 (Foreign Flag Carriers), Year Ended 3Q2008 DOT - OST- 2010 - 0018 Exhibit SFO - R - 101Source: Airport Reports 

## Passenger Growth at 15 Largest U.S. Airports Between 2007 and 2008 

# SFO is Growing Faster than Any Large U.S Airport, Including Los Angeles,

in Combined Domestic and International Travel DOT - OST- 2010 - 0018 Exhibit SFO - R - 102

# SFO’s Superior Connectivity Throughout North America

Enhances its Large Origin/Destination Market Nonstop SFO Service to 75 Destinations Covers Nearly Three - Quarters of U.S. Air Travel Market DOT - OST- 2010 - 0018 Exhibit SFO - R - 103

# The SFO Hub Offers Frequent, Convenient Nonstop Connections

to All Major West Coast Markets Summer 2009 Destinations Daily Non - stops Los Angeles 40 Las Vegas 24 Orange County/Long Beach 23 San Diego 22 Seattle 18 Denver 17 Phoenix 15 Salt Lake City 10 Portland 9 Hawaiian Islands 14 Anchorage, Alaska 1 (Summer) Vancouver 8 Calgary 6 Toronto 5 Edmonton 3 Victoria 2 Montreal 1 Mexico City 4 Puerto Vallarta 3 San Jose del Cabo 2 Guadalajara 1 Cancun 1 (weekly) DOT- OST- 2010 - 0018 Exhibit SFO - R - 104

# International Passengers Prefer Connecting at SFO

The Airport Is Designed to Make Travel Options Happen Seamlessly 

# Within the Airport – • All airline connections are quick and convenient, using SFO’s free AirTrain people - mover system. • “Walk times” between airline connections are from 5 to 15 minutes. • All terminals are physically connected and “under one roof” with special sterile connecting corridors between domestic and international terminals. • SFO’s state - of-the - art baggage screening and spacious Customs facilities cut “wait time” for international passengers. 

# Outside the Airport – • Easy connections to downtown San Francisco on the BART metro system departing every 15 minutes from its stop inside the SFO terminal. • Car or bus average travel time downtown is 25 minutes, 40 minutes to Silicon Valley. DOT - OST- 2010 - 0018 Exhibit SFO - R - 105

# Air Travelers Prefer San Francisco Airport

Ratings by Air Travelers in 2008 Zagat Survey (Higher is Better)

Source: Zagat Guides DOT- OST- 2010 - 0018 Exhibit SFO - R - 106

# The Bay Area Is a 

# Uniquely International Air Market

Residents Have Strong Proclivity, and Ability, to Travel Abroad The Bay Area has the Nation’s Most Diverse International Population:

• More than a third (35.7%) of Bay Area residents are foreign born, more than double the U.S. average. • Asian - born residents are nearly one -third (32.5%) of San Francisco’s population 

## • Nearly four dozen languages are spoken in the Bay Area 

## The Bay Area has an unusual proportion of travel - ready Baby Boomers:

• 43.5% are in the 35 -to - 64 year age bracket which accounts for most air travel, compared to 29% for the U.S. overall. (Average age is 38.5) 

## Bay Area residents are far better educated and wealthier than the overall population:

• Some 44% have post- secondary degrees, compared to 31% in the U.S. generally • Average Bay Area income is 41.3 % higher than U.S. average 

## San Francisco has three times as many foreign consulates (77) per capita than Los Angeles. More than 30,000 foreign students study in Bay Area universities. DOT - OST- 2010 - 0018 Exhibit SFO - R - 107

# Among Large U.S. Metropolitan Areas, San Francisco Has the

2nd Highest Propensity to Travel Internationally

Note: Traveler Propensity measured by dividing number of International Passengers by Population Source: Woods & Poole Economics 2008 Estimate, U.S. International O&D Survey and International T100 (Foreign Flag Carriers) for Year Ended 3q2008 

## Ratio of International Passengers Per Capita DOT - OST- 2010 - 0018 Exhibit SFO - R - 108

# San Francisco Has the 2nd Highest Median Household Income

in the U.S., and the Highest on the West Coast

Source: U.S. Census Bureau, 2007 American Community Survey 

## Median Household Income (2007 Estimate) DOT - OST- 2010 - 0018 Exhibit SFO - R - 109

# Among Major Western U.S. 

# Metropolitan Areas, San Francisco Has the Highest

Percentage of Households with Over $100,000 Income Percent of Households with Income Exceeding $100,000



## (2007 Estimate)

Source: U.S. Census Bureau, 2007 American Community Survey 

## Nearly 80% of all discretionary income in the U.S. is controlled by such well- to - do households. DOT- OST- 2010 - 0018 Exhibit SFO - R - 110

# Bay Area Residents Spend More on Personal Air Travel

The San Francisco Bay Area per capita spending on air travel is significantly

higher than for California and the U.S. as a whole . . .

Expenditure for Airline Fares Annual Consumer Expenditure for Airline Fares Per Capita Consumer Expenditure for Airline Fares 

## Area San Francisco Bay Area 

# $ 2,110,111,000 

# $ 291 Los Angeles 

## Area $ 2,727,787,000 

## $ 209 California 

## $ 7,701,367,000 

## $ 213 United States 

## $ 45,968,000,000 

## $ 156 

### Note: Estimated expenditures made by consumers for their personal — not business use. 

## . . . and nearly 40% higher than for residents of the Los Angeles area. DOT - OST- 2010 - 0018 Exhibit SFO - R - 111

# San Francisco Has the Most Highly Educated Population Among Major Western Cities

Source: U.S. Census Bureau, 2007 American Community Survey 

## Percent of Population Aged 25 and Over with College Bachelor’s Degree or Higher DOT- OST- 2010 - 0018 Exhibit SFO - R - 112

# San Francisco Has the 2 nd 

# Most 

# Highly Educated Population Of All U.S. Cities

Source: U.S. Census Bureau, 2007 American Community Survey 

## Percent of Population Age 25 and Over with College Bachelor’s Degree or Higher DOT- OST- 2010 - 0018 Exhibit SFO - R - 113

# The Bay Area’s Remarkable Economic Base

With annual gross regional product nearing U.S.$460 billion, the

Bay Area is home to 29 of the Fortune 500.

.

More than half of these world-class firms are in cutting - edge, technology-based industries.

1)Chevron 2)Hewlett - Packard 3) McKesson 4) Wells Fargo 5) Safeway 6) Intel 7) Cisco Systems 8) Apple 9) Oracle 10) Google 11) Gap 12) Sun Microsystems 13) Pacific Gas & Electric Corporation 14) Samnia - SCI 15) Applied Materials 16) Calpine 17) eBay 18) Synnex 19) Yahoo 20) Franklin Resources 21) Charles Schwab 22) Advanced Micro Devices 23) Ross Stores 24) Agilent Technologies 25) URS 26) CVS/Longs Drug Stores 27) Symantec 28) Clorox 29) Robert Half International DOT- OST- 2010 - 0018 Exhibit SFO - R - 114

# The Bay Area: The Heart of Global High -Tech

As the U.S. hub of tomorrow’s knowledge - based industries, the Bay Area has:

 Over 15,500 firms in information technology, biosciences, and innovation services  Over 43 percent of California’s IT manufacturing and service jobs  Over 37 percent of all United States Life Science companies, responsible for a quarter million employees and $6 billion in annual wages



## According to Business Week magazine, 11 of the 100 best-performing information technology companies in the world are located in the Bay Area.

Information Technology 100

1 2 2 3 4 11

Chicago Connecticut Washington D.C. New York Los Angeles Bay Area/Silicon Valley DOT - OST- 2010 - 0018 Exhibit SFO - R - 115

# The Bay Area’s World - Class Research and Educational Institutions

Underlie its Economic Strength and Resilience

• Home to 20 of the world’s most renowned scientific research centers, including five of the six largest federal laboratories -- the University of California Berkeley, Stanford University, the Lawrence Livermore Laboratory, Sandia National Laboratory, and the NASA Ames Research Center
• Bay Area institutions are global leaders in “enabling” technologies that converge biosciences, information technology, and nanotechnology.
• More top - ranked graduate programs in selected business, law, medicine, and engineering fields than any other comparable U.S. region. San Francisco Bay Area Education and Research Institutions Institution Location Stanford University Palo Alto Sandia National Laboratories/California Livermore University of California San Francisco San Francisco Lawrence Livermore National Laboratory Livermore University of California Berkeley Berkeley U.S. Geological Survey Menlo Park NASA Ames Research Center Mountain View Ernest Orlando Lawrence Berkeley National Laboratory Berkeley SRI International Palo Alto Santa Clara University Santa Clara Stanford Linear Accelerator Center Palo Alto San Jose State University San Jose Joint Genome Institute Walnut Creek Hoover Institution, Stanford University Palo Alto Lick Observatory, University of California San Jose/Santa Cruz DOT - OST- 2010 - 0018 Exhibit SFO - R - 116

# The Heart of U.S. Venture Capital Investment

Nearly half (over 47 percent) of all U.S. venture capital is invested in the Bay Area.

This is more than three times as much as the next region, New England,



## and more than five times the Los Angeles area. 2008 Venture Capital Investment ($ billions)

$1,160 $1,216 $1,240 $1,283 $1,347 $1,879 $1,994 $3,260 $10,980

Northwest San Diego Southeast Texas Midwest New York Metro Los Angeles Metro Boston/New England Bay Area/Silicon Valley DOT - OST- 2010 - 0018 Exhibit SFO - R - 117

# The Bay Area Remains a Center of Global Tourism



# and a Magnet for Foreign Visitors San Francisco Became the Third Most Visited U.S. City by Overseas Travelers in 2008, Up from Fourth in 2007 (depicted below), With More Than Six Times Seattle’s Overseas Visitors.

Source: U.S. Department of Commerce 

## Top Cities Visited by Overseas Travelers in 2007 (millions)

“Best City in North America” according to Conde Nast Traveler Magazine (so named18 of last 19 years). Second Best City in North America and Tenth Best in the World, according to Travel & Leisure’s “World’s Best” Awards, 2008 DOT - OST- 2010 - 0018 Exhibit SFO - R - 118

# SFO Is Among the World’s Best Airports – For Travelers

• Designed for convenient connections to and from domestic flights , all under one roof.

• AirTrain “people - mover” monorail connects all terminals every three minutes with parking garages, central Rental Car Center.

• Regional light rail/metro (BART) station located right at the international terminal departures level affords 25
- minute access to downtown San Francisco and rapid access to Silicon Valley.

• Some 13,000 square meters of concession space includes quality retail stores, award -winning restaurants (including local branches of popular eateries), an art museum and aviation library, banks, a medical facility, and even a European - style spa.

• Among the shortest security average wait times of large U.S. hub airports. In 2008, peak period wait times were 

## just under 8 minutes; non - peak period wait times were 2 - 3 minutes.

• High - speed wireless internet access throughout the airport; “most tech -friendly” U.S. airport according to Consumer Electronics.

• World - class premium airline lounges and clubs, including shower facilities and business centers. DOT - OST- 2010 - 0018 Exhibit SFO - R - 119

# SFO Consistently Voted Best U.S. Airport Named “Best Airport in North America” in 2008 by Skytrax, the aviation industry’s leading independent quality research organization, based on extensive passenger surveys and a detailed 

## appraisal. Awarded IATA’s prestigious Eagle Award (only the third time in history the award has gone to a U.S. airport) in recognition of “outstanding performance in providing value for money to airlines, continuous improvement, and a high level of customer satisfaction”. Other worldwide recognition for SFO: • Best Airport in North America – Business Traveller , Germany • Best U.S. Airport for Business Travelers – Arthur Frommer , MSNBC • Best Airport in America – Executive Travel Magazine • Exceptional Performance in Airport Security – Airports Council Int’l. • Best Concession Program in North America and Best Airport Restaurants by 

## Airport Revenue News DOT- OST- 2010 - 0018 Exhibit SFO - R - 120