MYTHS & FACTS

Recent events in the aviation industry have brought much speculation about the airport. The following is intended to clarify certain misconceptions.

Myth: CVG is too dependent on Delta for its financial survival.

Fact: Delta is an important tenant, revenue generator and job provider for the airport, and for our entire region. The revenue from Delta’s operations has played a part in making CVG one of the most modern, convenient and efficient airports in the world.

The airport leadership, however, has gone to great lengths to make Delta ultimately responsible for the majority of the operation costs and maintenance costs of its own facilities. Additionally, CVG does not carry the debt for these facilities on its books.

Myth: The airport leadership is not concerned about fares.

Fact: Over the last five years, we have had more than 80 meetings with various airlines about initiating or expanding service here. We continue to lobby hard for competitive service. The reality is that it will take community-wide effort and cooperation from the business community to attract and retain more competition at CVG.

Additionally, it should be noted that the reduced prices popularized by Simplifares were an outgrowth of conversations between the airport, the local Delta leadership and Delta’s headquarters in Atlanta. This is why Simplifares were implemented locally before it was rolled out nationwide.

Unfortunately, Simplifares did not survive the bankruptcy process. Nevertheless, the airport continues to talk with Delta about fares. For its part, Delta continues to experiment with some of its business fares to determine if it can lower prices without jeopardizing yield.

Myth: Local ticket prices reflect the high cost of doing business at CVG.

Fact: The cost of doing business at CVG is very competitive. A standard benchmark for airport costs is what we call the “cost per enplaned passenger.” This is a measure of airport cost to airlines, divided by the number of passengers boarding planes. In 2006 the cost per enplaned passenger at CVG was $4.42, well below the median for U.S. airports, which was $5.96. The national median for hub airports was even higher, at $6.63. (2006 is the last year for which national figures are available.)

In regards to our debt, the ratio was $37.17 per enplaned passenger as of Dec. 31, 2006. The national median for all airports was $65.24, and for hub airports, $98.33.

Additionally, only a handful of airports worldwide offer the operational efficiency of CVG’s three independent parallel runways. This efficiency makes CVG even more cost-effective.

The national figures are all reported by Moody’s rating agency, which monitors these costs for the aviation industry. Any way you measure it, CVG's costs to airlines are well below the national figures. This is in keeping with the goal of our board and CEO — to keep our expenses as low as possible, so that our costs are never a barrier to service.

Myth: The airport generates revenue for local governments.

Fact: CVG is fully supported by aviation revenue. By law, revenue generated by the airport must be spent in support of airport operations and projects.

Other than payroll taxes, CVG does not contribute revenue to local government nor does it receive any. CVG’s funding is supplied by airlines and tenants, and through fees that are included in the cost of airline tickets.