The italian opportunity 25 MARCH 2013 1 Conten tents ts 1. - - PowerPoint PPT Presentation

The italian opportunity

25 MARCH 2013

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Conten tents ts

1. easyJ yJet t in Ita taly 2. easyJet’s opportunity in Ita taly 3. Why y Li Linate te / Fiumicino ino is impor

• rtan

tant 4. Sum ummary

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Easyjet in italy

Frances Ouseley Country Director Italy

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1998

1st

st flig

ight ht to Italy aly

2004

1 mill llio ion n passeng enger ers carried ied

2006

Malp lpens ensa a Base e

• pen

ened ed

2009

Fiu iumici icino

• Base

e

• pen

ened ed

2013

Linat nate e / Fiu iumici icino

• route

ute

• 24 aircraft in Italy
• 2 bases
• Milan Malpensa and Rome Fiumicino
• 12.5 m passengers in 2012
• 140 routes from Italy
• 870 employees
• Positive and improving customer perception

easyJet - 15 years in Italy

5 5

0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% 50 100 150 200 250

UK Germany Spain Italy France Million seats 2011 (OAG)

13% 12% 5% 5% 5% 4% 4% 4% 4% 4%

0% 2% 4% 6% 8% 10% 12% 14%

• 1

2 3 4 5 6 7 8 9 10

Spain-UK UK- Dom Italy- Dom France-UK France- Dom UK-Italy France-Italy Swiss-UK Germany-UK UK-Nether

1Top 10 capacity flows of easyJet (OAG Jan-Dec 2012) – millions of seats

Focus on connecting Italy with the rest of Europe

Italy is a significant market for easyJet

Million seats Jan-Dec 2012 % weight on easyJet network

easyJet network1 European market

6 6

Contribution per block hour

…while returns keep improving

• Capacity has increased from 8m seats in 2008

to 14m seats in 2012, a CAGR of 17%

• Returns (Contribution Per Block Hour) have

increased by a CAGR of 10% over the last 4 years

Capacity in Italy (network point)

Strengthening the international network…

easyJet has built a strong position in Italy

500 600 700 800 900 1,000 1,100 1,200 1,300 1,400 2 4 6 8 10 12 14 16

2008 2009 2010 2011 2012

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Main airports in Italy Short haul passenger traffic from Italian airports

easyJet is

• #1 in Milan Malpensa
• #2 in Rome Fiumicino, Venice, Naples,

Palermo and others

MXP FCO NAP VCE PSA PMO CIA CTA OLB BRI CAG BDS BLQ VRN LIN SUF GOA TRN AHO REG AOI PSR FLR BGY TRS TPS CRV

Focused on higher yielding airports in Italy

Passengers 1 Average Market Fare in Italy €1

10 20 30 40 50 60 70 80 90 5 10 15 20 25 30 35 Milan Rome Venice Catania Naples Palermo Bologna Cagliari Pisa Bari

PAX Avg fare

1 PaxIs. 2011, Domestic and European flows from Italian Airports

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Giuseppe Careddu Head of Sales Matteo Cecconi Route Manager Frances Ouseley Country Director Daniele Bordogna Sales Executive Noemi Frisoli Marketing Manager Marco Picardi Country Analyst Nicola Martino Pilot Manager Lorenzo Lagorio HR Business Partner Giuseppe Bonetti RGM Ground Ops Gianluca Murari Cabin Services Manager

Significant expertise in Italy

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Easyjet’s opportunity in italy

Frances Ouseley Country Director Italy

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Whilst there are short term challenges with the macro economic environment and with airport charges and taxation increasing, there are opportunities for easyJet in the Italian market

• 1. Build on strong market share in major catchment areas
• 2. Focus on business passengers and those with higher disposable incomes
• 3. Adapt the model to the characteristics of the Italian market
• 4. Keep on building the brand and differentiating the product

Opportunities in Italy focused on major catchment areas and international traffic

Where is the opportunity for easyJet now

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• 1. Major

catchment areas

Malpensa provides platform to drive returns

• Single terminal
• Reduce cost base
• Dedicated easyJet check-in and gates
• Crewing
• One single access Crew Room
• Improved flexibility
• Operational efficiency
• Above network average turn around time
• On time performance (87% in FY’12)
• Refuelling initiatives
• Lower aircraft costs
• A320s mix enables short and mid-haul

flights

• High utilisation of each aircraft
• CSAT
• 5 percentage points improvement in the

last 12 months

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• 2. Business

passengers

Strong international network supports the business passenger opportunity

Business passengers - network

• easyJet’s share of business

passengers is increasing in Italy

• Linate / Fiumicino provides
• pportunities not just because it is

a business route but it establishes easyJet’s credibility as an airline for business passengers

• Continue to increase share of

business/ high yield passengers through:

• targeted deals with TMC and

corporate accounts

• GDS distribution

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Opportunity to reshape the yield curves to focus on late bookers

Booking curves 200 to 0 days to departure

• 3. Adapt to Italian

market

Italian passengers are late bookers

• Italian passengers book later

than passengers in other markets

• Overall company average is

26-27 days whereas the average for Italy is closer to 20 Different booking patterns in Italy

Days before travel % of bookings

14 14

• 4. Building

brand

Brand awareness increasing in Italy

4 6 10 16 15 14 14 12 22 15 18 24 30 32 32 21 26 35

Dec-10 Oct-11 May-12 Dec-10 Oct-11 Feb-12 Dec-10 Oct-11 Oct '12 Spontaneous - other mention Spontaneous - 1st mention

UK Italy Switzerland Percentage (%)

15 15

• Awareness increased

considerably in the first 6 months of 2012

• Leisure Consideration

(+11pp)

• Business

Consideration (+12pp)

Source GFK Brand Trackers 2007-2012

• 4. Building

brand

Improving perception in Italian market

Spontaneous Brand Awareness Brand Consideration

16 16

• 4. Building

brand

Build Brand through campaigns…

• First TV advert launched last October 2012, with a second campaign in March

2013

• A consistent brand presence in main catchment areas and online

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• 4. Building

brand

…by receiving significant press coverage …

• Leverage the Linate / Fiumicino win to position the brand in a more credible

way towards business passengers

• Dedicated advertising campaign launched in Rome and Milan, one promotional

and one business

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• 4. Building

brand

…by targeting a higher yield target…

As a result of our partnership with Rossignol, easyJet is present in all the key mountain resorts in Italy, promoting the brand to a higher yield segment

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• 4. Building

brand

…and being present in large cities

easyJet was present in the key shopping streets of Milan and Rome in the days before Christmas

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• 4. Building

brand

Focused and targeted new advertising campaigns

Exploit new CRM and digital capabilities to target relevant passengers and deliver an easy, engaging and personal experience at every stage of their journey

Why linate / fiumicino is important

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Frances Ouseley Country Director Italy

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CHE COSA SIGNIFICA ? 1 Evoluzione naturale del nostro posizionamento in Italia : easyJet come l’Alternativa moderna di Convenienza e di Qualita’ 2 3 In linea con la strategia Europea di presenza sui flussi principali e su tutti i segmenti di clienti Un’offerta facile, accessibile e veloce, con tutta la flessibilita’ per i viaggi d’affari . Un’offerta per tutti !

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Important achievement for easyJet and the Italian air traffic market: the liberalisation of the last monopoly route in Europe

Credibility Sustainability’ Dedication

Why is the route important

• Long and complex process
• legal procedure started in December 2011

and lasted 14 months

• 5 airlines made submissions for the right

to operate the route

• easyJet was awarded the route as the

airline most likely to offer a real long term competitive alternative, on a dense business route, to the benefit of all customers

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Extensiv tensive e press ess cover erage age in Italy ly

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Prices for all

(Standard fares)

Easyjet mobile Easyjet Plus card Flexible fares Flexi Prices for all

(Standard fares)

Prices for all

(Standard fares)

Prices for all

(Standard fares)

easyJet mobile easyJet mobile easyJet Plus card

• Non flexible fare
• Smartphone app

(info, bookings, seat choice)

• Fast track
• Dedicated seats

(not first row)

• Priority boarding
• Annual cost 180€
• Fast track
• Dedicated seats (first row and extra leg seats)
• Priority boarding
• Unlimited changes (up to 2 hours before

departure)

Tailored

• ffer

according to the needs

• f the

corporates

In partnership with TMCs

Easy, y, affor

• rdab

able le, , fast, t, flex exib ible le – no comp mplexit lexity

Convenience + Speed’ + Flexibility

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2013 : innovation in network development

easyJet continues to innovate by offering increasingly attractive portfolio of routes

• Milan

n Malpen ensa sa – Luxemb embour urg: g: 4 flights a week starting from 31st March 2013

• For business travellers: improved schedule (new morning

ng fligh ghts s from Rome Fiumi mici cino no to L London n and Paris) and new routes such as Rome- Hamburg, rg, Catani nia-Ba Basel sel

• Milan

n Malpen ensa sa - Belgr grade de: 3 flights a week from 19th April 2013

• First airline to offer a non charter link to Sharm El Shei

eikh: from Milan Malpensa 3 flights a week starting from 12th March 2013

• First route outside EU

Enteri tering ng natur tural al monopoly nopoly routes utes Openin ning g up new markets ets Openin ning g up markets ts

• utside

tside the EU EU More e choic hoice for

• r

busin iness trav avellers llers

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14 New routes within first 6 months of 2013

• 13 International and 1 domestic

From To 1st day of operation Milano Malpensa Larnaca (Cyprus) 4th March Sharm El Sheikh 12th March Luxembourg 31st March Belgrade 19th April Ajaccio 6th July Roma Fiumicino Milan Linate 25th March Copenhagen 8th April Hamburg 8th April Venezia London Southend 8th February Manchester 14th February Bari Paris Charles De Gaulle 1st April Catania Basel 28th March Olbia London Luton 15th May Nice 6th July

Strengthening the network internationally

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Likely to Recommend vs. competitors (%) Service Satisfaction vs. competitors (%)

66 85 80 75 70 65 55 VENICE 90 60 60 76 86 NAPLES 73 83 ROME 71 53 77 82 MILAN 71 54 72 89 Meridiana Ryanair Alitalia easyJet NAPLES 43 72 77 90 80 70 60 50 VENICE 56 73 81 ROME 64 50 74 76 MILAN 67 52 70 84 Ryanair Meridiana Alitalia easyJet

82%

Overall service satisfaction of easyJet customers in Italy (2012)

• A survey conducted in

airports where easyJet

• perates shows a preference

index higher than other airlines…

• …and a service satisfac

actio ion higher in all airports

Fonte: GFK eurisko, December2012

Industry dustry lea eading ding cus ustom tomer er satisfac sfactio tion n in Italy ly

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Summary

Frances Ouseley Country Director Italy

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• Italy is a significant market for easyJet
• Structural changes are benefitting and will continue to benefit easyJet
• easyJet is focused on:
• Building on strong market share in major catchment areas
• Business passengers and those with higher disposable incomes
• Adapting the model to the characteristics of the Italian market
• Building the brand and differentiating the product
• Strength of the network underpins ability to execute our Italian strategy

Summary

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Q&A

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Disclaimer

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