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

AIR CONNECTIVITY at a Glance Serving the Airport Industry

… 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