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PERSPECTIVE OF LFA ON AIRPORT DEVELOPMENT Tomasz Kulakowski Ryanair’s Sales & Marketing Manager for Central Europe Gdynia, May 29, 2008.

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Presentation on theme: "PERSPECTIVE OF LFA ON AIRPORT DEVELOPMENT Tomasz Kulakowski Ryanair’s Sales & Marketing Manager for Central Europe Gdynia, May 29, 2008."— Presentation transcript:

1 PERSPECTIVE OF LFA ON AIRPORT DEVELOPMENT Tomasz Kulakowski Ryanair’s Sales & Marketing Manager for Central Europe Gdynia, May 29, 2008

2 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 2 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 23 rd year of strong growth at record profits

3 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 3 Airline% On TimeBags miss. per 1,000 pax % completions Ryanair880.599.6 Air France8417.597.6 Alitalia8415.696.1 Lufthansa8115.198.4 Easyjet80RTP British Airways5828.996.1 Europe’s No. 1 for Customer Service Ryanair, Easyjet and AEA stats Jan – Mar 2008

4 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 4 Low High Europe’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%

5 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 5 Ryanair - No. 1 for international passengers Source: IATA published statistics compared to Ryanair current year forecasted traffic PAX M “World’s favourite airline”

6 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 6 Ryanair differentiates with a pan-EU brand 27 Bases 660 Routes 163 Aircraft

7 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 7 Ryanair - the largest LFA in CEE

8 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 8 What do we do to save the costs? On board sales of food and drink On line accommodation (hotels/hostels) On-line gambling On-line insurance (travel/car) On-line car rental (Hertz) On-line airport parking (BCP) On-line bus links (Terravision) Inflight magazine advertising On board advertising On-line check in fee Checked baggage fee/ check in fees Inflight mobile phone use (subj. reg. approval)

9 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 9 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 carriers Operation of simple low cost terminals (e.g. MRS) Operation of volume discount schemes where possible and/or off peak pricing Participation in joint marketing activities Provision of low cost efficient handling where applicable, no bussing, no boarding bridges

10 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 10 Ryanair’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

11 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 11 Joint 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 page 2. Subscriber mail shots 3. “Top 5 attractions” on destination pages Media Promotions PR Activities (Press trips, new route launches, local media enquiries) Joint liaison with tourist boards

12 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 12 Example of airport joint advertising.

13 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 13 Low fares=short breaks=quality tourism

14 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 14 Economic Benefits Lower access costs for business and tourism = More people taking short breaks B737-800 / 1 daily flight = 100,000 passengers per year Attracts Inward Investment Region is now easier to get to More flight connections to the region Reduces 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 Creation Converts seasonal jobs into permanent jobs 1,000,000 passengers = 1000 jobs Fast development of regional and secondary airports

15 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 15 Economic Impact of Ryanair Inbound Visitors to Scotland 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

16 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 16 Carcassonne Chamber of Commerce Report, December 2003 2 routes (STN, CRL): 253,000 pax in 2003 74.1% pax are UK and Belgian citizens 71% pax would not travel to Carcassonne in case of lack of low fares 93% pax spent the whole trip in the region 3.6% 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

17 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 17 Hahn Regional 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

18 (c) This presentation is subject to copyright and may not be copied or used without the express consent of Ryanair 18 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

19 THANK YOU


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