CONNECTIVITY & Aviation Competitiveness EESC Hearing Integrated - - PowerPoint PPT Presentation

CONNECTIVITY & Aviation Competitiveness

EESC Hearing – Integrated Aviation Policy

2 July 2015, Brussels

Why AIR CONNECTIVITY matters?

• AVIATION

= prime & unsurpassed enabler of Global connectivity

• GLOBAL ECONOMIC SHIFT

> Emerging markets: 50% of World GDP > Europe = dependence on external trade

• AVIATION & ECONOMIC POLICY

> Strategic relevance for Growth & Jobs > Integrated aviation strategy

Evolving CONNECTIVITY

• NEW DEMAND PATTERNS

Evolving CONNECTIVITY (2)

• GLOBAL TRANSPORTATION SYSTEMS = reconfigured

Serving the Airport Industry

AIR CONNECTIVITY at a Glance

… But incomplete EU recovery

EUR, NA, LAC lagging behind

Regional connectivity risks

• TRAFFIC CONCENTRATION (Summer 2015)

> LCCs moving up market = 0% route growth > FSC retrenching = -7% route growth

• REGIONAL AIRPORTS

> Connectivity level below 2008 for 32% of regional airports > More dependent on indirect connectivity > LCC bases = -13% (2015 vs. 2014)

HUB RESILIENCE…

… But Global position WEAKENING

• TOTAL Hub Connectivity (since 2008)

> IST: + 400% > Top 3 Gulf: + 340% > Top 3 EU: + 14,4%

• INTERCONTINENTAL Hub Connectivity (since 2008)

CONNECTIVITY & airports’ agenda

• CONNECTIVITY

> = airports’ business & social mandate > Network development & airline marketing

CONNECTIVITY & airports’ agenda (2)

• BOOST COMPETITIVE POSITION

> Cost cutting (since 2008 – per pax & real terms)

• Staff costs: -17,5% / Maintenance: - 51,5% / Energy & Waste: -9,1%
• But external costs: capital costs & security

> Competitive charges

• Charges 2015: -0,8% / 2014: - 1,14%
• Additional rebates & incentives: - 18,7%

> Subsidising airlines

• Charges = 46% of total costs
• +€3 billion unrecovered costs

AVIATION PACKAGE

• CONNECTIVITY = Jobs, Growth & Investment agenda

> + 10% air connectivity = +0,5% GDP (per capita) > 2-way relationship > The EU economy needs:

• Improved direct connectivity & Strong global HUB positioning
• Complemented by diversified indirect connectivity
• CONSUMER-centric integrated policy

> Resist protectionism

• Open Skies
• Airport charges & financing

> Airline interest is NOT consumer interest

AVIATION PACKAGE (2)

• KEY MESSAGES & ISSUES
• 1. License to grow

Reconciling aviation growth with our environmental objectives

• Global MBM & industry commitments/achievements
• Airport capacity crunch & financing
• 2. Global competitiveness

Redress competitive gap with leading & emerging aviation powers

• Aviation taxes
• Single European Sky
• Regulatory driven costs: Security & Safety
• 3. Global & inclusive accessibility
• Open Skies with EU’s main trading partners
• Visa policy
• Airport capacity crunch & small regional airports sustainability
• Intermodality

THANK YOU

www.aci-europe.org www.airportcarbonaccreditation.org