PERSPECTIVE OF LFAON AIRPORT
DEVELOPMENT
Tomasz KulakowskiRyanair’s Sales & Marketing Manager for Central Europe
Gdynia, May 29, 2008
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair2
The World’s Favourite Airline!The World’s Favourite Airline!
Lowest Fares and Lowest Seat Cost in Europe
No. 1 for Traffic 60m
No. 1 for Passenger Growth
No. 1 for Coverage – Routes (660) and Bases (27)
No. 1 for Customer Service delivery
Lowest Price, Highest Punctuality
Fewest cancellations and lost bags
23rd year of strong growth at record profits
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair3
Airline % On Time Bags miss. per1,000 pax
% completions
Ryanair 88 0.5 99.6
Air France 84 17.5 97.6
Alitalia 84 15.6 96.1
Lufthansa 81 15.1 98.4
Easyjet 80 RTP RTP
British Airways
58 28.9 96.1
Europe’s No. 1 for Customer ServiceEurope’s No. 1 for Customer Service
Ryanair, Easyjet and AEA stats Jan – Mar 2008
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair4
Low
High
Europe’s No. 1 for Low FaresEurope’s No. 1 for Low Fares
Average Fare % > Ryanair
Ryanair €44
easyJet €66 +50%
Air Berlin €82 +86%
Aer Lingus €94 +114%
Iberia €150 +240%
Air France €250 +468%
British Airways €277 +529%
Lufthansa €279 +534%
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair5
Ryanair - No. 1 for international passengers
Source: IATA published statistics compared to Ryanair current year forecasted traffic
PAX M
“World’s favourite airline”
10
15
20
25
30
35
40
45
50
SAS EMIR SINGA AA EZY KLM BA AF LUFT RYA
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair6
Ryanair differentiates with a pan-EU brand Ryanair differentiates with a pan-EU brand
27 Bases
660 Routes
163 Aircraft
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair7
Ryanair - the largest LFA in CEERyanair - the largest LFA in CEE
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair8
What do we do to save the costs?What do we do to save the costs?
On board sales of food and drinkOn line accommodation (hotels/hostels)On-line gamblingOn-line insurance (travel/car)On-line car rental (Hertz)On-line airport parking (BCP)On-line bus links (Terravision)Inflight magazine advertisingOn board advertisingOn-line check in feeChecked baggage fee/ check in feesInflight mobile phone use (subj. reg. approval)
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair9
Airports’ role in managing costs.Airports’ role in managing costs.
Not undertaking unnecessary infrastructure investment without the consent of the airline clients. (Cork vs F’furt HHN example)
Good retail offering (more non-aviation than aviation revenue)Lowest possible pax fees for all carriersOperation of simple low cost terminals (e.g. MRS)Operation of volume discount schemes where possible and/or off peak pricingParticipation in joint marketing activitiesProvision of low cost efficient handling where applicable, no bussing, no boarding bridges
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair10
Ryanair’s EfficienciesRyanair’s Efficiencies
Productive, point-to-point & quick turnaround
Efficient aircraft, new, 189 seats, high load factors
High productivity – 10,000 passengers per 1 employee
Low cost, efficient airports
99% Internet sales, ticketless travel
Very strong ancillary sales
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair11
Joint Marketing Activities with AirportsJoint Marketing Activities with Airports
New route launch promotion
Promoting the airport as low cost alternative
Advertising Campaign
Web Campaign on www.ryanair.com:1. Text links from Homepage/Destination page2. Subscriber mail shots3. “Top 5 attractions” on destination pages
Media Promotions
PR Activities (Press trips, new route launches, local media enquiries)
Joint liaison with tourist boards
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair12
Example of airport joint advertising.Example of airport joint advertising.
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair13
Low fares=short breaks=quality tourismLow fares=short breaks=quality tourism
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair14
Economic BenefitsEconomic Benefits
Lower access costs for business and tourism = More people taking short breaksB737-800 / 1 daily flight = 100,000 passengers per year
Attracts Inward InvestmentRegion is now easier to get toMore flight connections to the regionReduces regions seasonal dependence
Local Hotels, Restaurants, Car Hire, entertainment, and other ancillary services benefit from independent travellers
Average passenger spend of €300 1000 passengers = €300,000 in local economy
Job CreationConverts seasonal jobs into permanent jobs1,000,000 passengers = 1000 jobs
Fast development of regional and secondary airports
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair15
Economic Impact of Ryanair Inbound Visitors to Economic Impact of Ryanair Inbound Visitors to ScotlandScotland
Ayrshire Region (PIK airport): Scottish Enterprise Ayrshire Report, 2003
20 routes to PIK, 2.5M pax pa
On average, Ryanair pax spends £215 per trip
Additional employment of 620 – 720 FTE jobs
£18.4m expenditure in Ayrshire
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair16
CarcassonneChamber of Commerce Report, December 2003
2 routes (STN, CRL): 253,000 pax in 200374.1% pax are UK and Belgian citizens71% pax would not travel to Carcassonne in case of lack of low fares93% pax spent the whole trip in the region3.6% pax interested in buying property in the region€8.4 M pa direct expenditure in the region€135 M pa indirect benefits, incl. tourists’ expenditures and property investments
Ryanair – regional development, further examples
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair17
HahnRegional Economic Impacts of the Airport Frankfurt-Hahn for the Period 2003-2015 (Prof. Dr. Kai Heuer, Prof. Dr. Richard Klophaus, Prof. Dr. Thorsten Schaper), February 2005
2.5mln pax in 2003
522,000 tourists
1.8M days spent by tourists in the region
More than 8,000 jobs
€145.4 M investments by the airport and companies
located in the area
Almost €1billion additional revenue in the economy
€47.1 M additional taxes
Ryanair – regional development, further examples
(c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair18
Köln Bonn (other LFA)IfV Universität Köln, 2004
LFA presence effect in 2002 : €91 M taxes€147.6 M savings and additional efficiency of the companies from the region€285.42 – average pax spend in the region
Pisa, Skavsta, Charleroi, Limoges, Strasbourg, Girona, ..... And many, many more…
Ryanair – regional development, further examples
THANK YOU