The challenge of the low-cost airlines

Outline • How Low cost airlines have changed the EU? • Maturity in Europe? • Market Substitution or generation? • Are LCCs culpable for increasing aviation's carbon footprint? • What makes a successful low cost airline? • LCCs and the long haul market

Cost comparison of network, low-cost and charter airlines

Estimates of the Cost difference “The evidence suggests that low-cost no-frills operations can achieve unit costs as low as half those of a major network carrier” CAP 685 Single European Aviation Market: The First Five Years (June 1998)

Airline industry problems and prospects

Presentation Outline -The elements of the jig-saw puzzle -Trends in financial results -Industry charcateristics and problems -Major constraints -Trends in load factors -Financing? -Traffic growth prospects -Productivity is the key -The environmental challenge -Summary of main points

Key strategic issues affecting the airline industry

Scheduled and charter airlines: current issues and future developments - Key characteristics of airline markets - Market penetration of low cost scheduled airlines - Recent developments in the charter sector - Future prospects

Airline distribution

Distribution - Factors affecting distribution strategy • Airlines drive to reduce costs - Distribution has been around 20% of operating costs • Airlines wishing to have more direct contact with their clients • Technology has provided the possibility of a direct channel between the airline and its customers • Disintermediation - as airlines doubt the ability of agents to influence customers’ choice • GDSs fees • Large corporates are more professional in the way they purchase travel products

Introduction to airline network planning

Contents 1.What kind of airlines? 2. Network Planning – Data – Generic / traditional – Low cost 1.What kind of airlines? 2. Network Planning – Data – Generic / traditional – Low cost

Air traffic rights : the path to multilateralism

Types of Air ABSTRACT: Transport Trading Agreements - Bilateral - “Open Skies” - Plurilateral - Multilateral

A centralidade do poder político na emergência da aviação comercial portuguesa

A aviação civil de transporte aéreo regular, em Portugal, emergiu por necessidade política do Estado Corres+pondendo à política colonial internacional. Se bem que tivessem surgido algumas companhias de aviação, anteriores ao serviço aéreo dos TAP, pertencente ao SAC, a maioria com capital estrangeiro, todas tiveram por objetivo a sustentabilidade as «subverções» do Governo português. Contudo, a emergência de portugueses como pioneiros e inventores da aviação acompanhou a história internacional, mas as ações tiveram um cariz individual e não empresarial. A construção da aviação com ligação às colónias impunha-se dentro da política internacional e a «linha aérea imperial», que fora uma proposta anterior à constituição dos TAP, apareceu por vontade do Governo estabelendo essa ligação aérea e terminando com alguma apetência estrangeira na sua exploração.

Portugal and air transport in the early 21st century

The Nature of air transport 1. Air transport is important • It is a big industry • It is vital to many industries and regions 2. It is multi-facited • Airlines • Airports • Air traffic control • Domestic and international 3. It is a network Industry • Portugal is part of Europe (legal fact) • Portugal is part of the world (globalization) 4. It is not wanted for its own sake • It “facilitates” and does not create 5. It has environmental implications • Noise • Greenhouse gas emissions

The low cost phenomenon

LCC Market Development - In 1996 low cost airlines (LCCs) accounted for only 1.4% of intra-European Union capacity. By the end of 2002, low cost airlines had captured 12% of all intra-EU capacity - Currently LCCs have a 30% market share of scheduled European point-to-point passengers. According to AEA forecasts, the LC market is expected to increase to 43% of European traffic by 2011. - In 2006 140 million passengers were carried by LCCs. - Low-fare airlines have increased their presence from 13% of city pairs in 2003 to 26% in 2007. 96% of new city-pairs between 2005 and 2007 were added by LCCs. - The United Kingdom still sees the highest number of low-cost flights, followed by Spain, which has been making up a lot of ground over the last year. This is followed by Italy and Germany with slightly fewer flights. These four countries contribute to roughly three quarters of low-cost departures. France is fifth in this list with only 5% of LC flights. - easyJet and Ryanair continue to be the biggest players in the European LCC market accounting for about 40% of all LCC capacity. The top two are followed by Airberlin, which contributes another 10% leaving three carriers in control of half the European low-cost market.

Aviation solutions

Overview Some of the Challenges - Future Technology - Capacity - Safety Working with Airports, Air Traffic Service Providers and Airlines The Role of the Regulator Air Traffic Service Providers

Embraer perspective : Embraer

1. Embraer company 2. E-Jet family: the regional revolution 3. Embraer market overview

A importância da regulação vigente para a obtenção de faixas horárias/Slots aeroportuários - caso de Portugal

Este trabalho discute a liberalização do transporte aéreo no mercado Europeu, o sucesso do tráfego aéreo, e a importância da regulação de slots aeroportuários para uma concorrência leal. Presentemente, dado o crescimento e a expectativa que o tráfego aéreo cresça ainda mais, os aeroportos e as companhias aéreas debatem-se com um problema de grande dimensão, que passa pela gestão aeroportuária de slots, uma vez que a capacidade dos aeroportos é limitada, e a procura por estas estruturas tem aumentado drasticamente. Face aos vários aeroportos Europeus, estima-se que essa capacidade seja atingida brevemente, fazendo com que a congestão não se dê só apenas por um curto período diário, mas que aumente não só a sua frequência como também a sua duração. Esta congestão pode ter efeitos sobre a concorrência entre as companhias e entre os aeroportos, o que implica que haja um impacto negativo, tanto no ambiente como na segurança. O estudo terá em atenção a capacidade do Aeroporto de Lisboa, ao pedido de slots aeroportuários, a legislação nacional e internacional, outros meios de afectação de slots aeroportuários, a posição da TAP relativamente à regulamentação existente, e aos meios paralelos.