FLORENCE, 03/03/2014

NTV

ANDREA GIURICIN

STUDIES OFFICE- NTV

HOW CAN HS AND LOW COST BE COMPLEMENTARY?

DO THEY SERVE DIFFERENT NEEDS?

CAN THEY COORDINATE?

OUR SERVICE AT THE END OF RAMP UP PERIOD

52 connections everyday

Hourly frequency between Milan

and Rome

Bi-hourly frequency between Rome

and Venice

No stop services between Rome

and Milan

Introduction of new stops: Reggio

Emilia; Rimini, Pesaro, Ancona

13 cities and 16 stations

2

WHICH MARKET LIBERALIZATION?

3

90

100

110

120

130

140

150

160

170

180

190

1995 2006 2007 2008 2009 2010

Passenger Rail market from 1995 to 2010 in Pax-KM

(Year 1995 = 100)

EU25 Germany Spain France Italy Sweden UK

Font: Elaboration Studies Office NTV of Eurostat statistics

COMPETITION: BENEFITS FOR CUSTOMERS

4

0

50

100

150

200

250

UK Germany Spain France Italy Ireland

114 100

62

79

53

12

194

169 154

123 110

23

204

180

160

136

117

24

Mln

of

pax

Air Transport market (mln pax)

1997 2010 2012

COMPETITION: BENEFITS FOR CUSTOMERS

5

0

20

40

60

80

100

120103

79.6 77.4 69.3

59.2

25.3

Mil

lio

ns

of

Pass

eg

gers

Pax traffic- European carriers

Font: Elaboration NTV Studies Office

COMPETITION: BENEFITS FOR CUSTOMERS

6

-10%

0%

10%

20%

30%

40%

50%

60%

Daily Flights Destinations Countries Pax (mln) Revenue (blnUSD)

48.8%

40.5%

17.9%

51.5%

37.9%

21.0%

36.2%

20.4%

45.5%

40.4%

-9.5%

13.1%

5.3%

23.2%

29.5%

Air carriers Alliances (2008-2012)

OneWorld Star Alliance Skyteam

COMPETITION: BENEFITS FOR CUSTOMERS

7

0

20

40

60

80

100

120

1997 2007 2012

53

108 117

Pax Air transport Italian Market from 1997 to 2012 (in millions)

Font: Elaboration NTV Studies Office

8

21.6%

19.5%

9.9%

48.9%

Air Italian market in 2012 (Pax= 116,9mln)

Alitalia Ryanair Easyjet Others carriers

Font: Elaboration NTV Studies Office

MODAL SHIFT AND COMPETITION

9

MAD-BAR

ROME-MILAN

MAD-SEV

PAR-LYO

PAR-MAR

MAD-BAR

ROME-MILAN

ROME-MILAN (with

competition)

MAD-SEV

PAR-LYO

PAR-MAR

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100 150 200 250 300

Mo

dal

Sh

are

Travelling time Font: Elaboration NTV Studies Office

In red: without

HS

In Blue: with

HS

In green: with

HS in

competition

OPEN ACCESS IN ITALY

10

Font: Elaboration NTV Studies Office

-30%

-20%

-10%

0%

10%

20%

2012 2013

16% 18%

-30%

-2%

Open Access in Italy

Demand Prices

MODAL SHIFT AND COMPETITION

11

Font: Elaboration NTV Studies Office

13%

28%

28%

31%

HSR - New demand in Italy in 2012 (7,1 Mln more Pax)

Car Rail Intercity Induction Air

COMPETITION: BENEFITS FOR CUSTOMERS

12

0

100000

200000

300000

400000

500000

600000

700000

800000

900000

Alitalia Ryanair Total

Air market Rome - Milan (year 2014)

Seat Offer Pax year

Font: Elaboration NTV Studies Office

COMPLEMENTARY?

13

To increase catchment area NTV made agreements with air carriers

Ticket integration – Cathay Pacific agreement

GDS integration – Hahn agreement (more than 260 airlines

companies)

Intermodality and door to door services is a reality

Public transport agreement (Florence and Naples)

Low cost & HSR complementary?

which model of LC? Vueling or Ryanair?

THANK YOU FOR YOUR KIND ATTENTION