1. 1 e - Jet International Limited Impact of New Generation Aircraft and Low Cost Carriers on Airports, Fuelling Supplies and Services John Pitts

2. 2 Key Issues Low Cost Carrier fuel characteristics (ME region) Next Generation Aircraft – A380, B7E7 recently launched Overall – cost effective fuel provision e-Jet

3. 3 Cost Effectiveness vs. Gold Plating Criteria  Over-Engineering  Fitness for Purpose  Cost Effectiveness e-Jet

4. 4 FANTASIA INTERNATIONAL AIRPORT G.N.P. from sugar cane, cultured pearls and tourism Fantasia is a small island near Sunset Isle e-Jet

5. 5 1998 government built a new international airport HOPE FOR THE FUTURE 2 wide-body aircraft leased inclusive holiday charter flights e-Jet

6. 6 Foreign investment, new hotel resorts, infrastructure improvements, health care and living standards Regional stability cemented Good outlook THE HONEYMOON EFFECT Initially, passenger numbers increased Aviation Fuel volumes encouraging e-Jet

7. 7 Aviation Fuel facility was expensive to build, extravagant and over budget Construction planning and co- ordination were poor, many claims on the construction contract THE TRAP SPRINGS Inefficient and costly to operate System fees were high, making fuel prices higher than Sunset Isle e-Jet

8. 8 Airlines started to tanker Fuel volumes became depressed THE VICIOUS CIRCLE Fixed costs had to be apportioned against lower volumes, system fees became even higher e-Jet

9. 9 Air fares increasedAir fares increased Fantasia no longer anFantasia no longer an inexpensive holiday location inexpensive holiday location Passenger numbers decreasedPassenger numbers decreased Fantasia Airlines was forced to reduce flight frequencies - one aircraft became redundant, but was still on leaseFantasia Airlines was forced to reduce flight frequencies - one aircraft became redundant, but was still on lease Other airlines reduced frequenciesOther airlines reduced frequencies Foreign currency spending decreasedForeign currency spending decreased Jobs in the tourist industry were lostJobs in the tourist industry were lost The economy sufferedThe economy suffered FANTASIA LOST OUT TO SUNSET ISLE THE KNOCK-ON EFFECT e-Jet

10. 10 More Than One Solution e-Jet Case A 8 tanks of total storage capacity 800,000 bbl Tank farm main supply by a single pipeline Back up supply by road tanker receipt facility Case B 4 tanks of total storage capacity 300,000 bbl Tank farm main supply by a single pipeline only

11. 11 % Construction Costs e-Jet

12. 12 Operational Cost Considerations over Lifecycle e-Jet

13. 13 Comparison of Lifecycle Costs to Users e-Jet

14. 14 Low Cost Carriers - Characteristics 2 hour sector maximum typical B737 predominant Fuel at one end of sector pair only 20 minute turn around Quick ITP service required – redundancy Price driven Secondary airports 9e.g. Frankfurt Hahn/ dedicated terminals (e.g. Singapore Changi) e-Jet

15. 15 Middle East Impact MenaJet Middle East's first no-frills airline Sharjah International Airport base two 162-seat Airbus A320s Southwest Airlines model e-Jet

16. 16 Next Generation Aircraft A380 B7E7 A340, B777 derivatives B737 replacement c 2013 – Y1 (120 – 190 PAX) e-Jet

17. 17 Airbus A380 e-Jet SpecificationsA380-800B747-400 Length (m)7370.7 Wingspan (m)79.864.4 MTOW (kg)548,000396,000 Range (km)15,10013,500 Seats555416 Fuel capacity (litre) 330,000213,000 Service Entry20061989

18. 18 Boeing 7E7 e-Jet Specifications7E7-37E7-87E7-9 Length (m)56 62 Wingspan (m)50.3 – 51.859 MTOW (kg)163,500205,250222,400 Range (km)6,50015,70015,400 Seats300200250 Service Entry2008 2010

19. 19 Impact - Other Airports’ Experience General LHR GBP 100 million T3: 4 stands (incl. 2 x 2 MARS) double deck boarding bridges, taxiway re-alignment T5: 5 x A380 stands for 2008 opening, 14 by 2011 Singapore Airlines, Emirates, Virgin Atlantic Airways, Qantas, Qatar Airways, Malaysia Airlines Paris - CDG and Orly EUR 100 million – taxiways, terminal, maintenance areas Major Middle East impact – Dubai, Doha e-Jet

20. 20 Impact - Other Airports’ Experience Fuel Facilities at LHR Limited impact – new fuel farm part of T5 developments – 6 x 10,000 m³ tanks 440,000 annual movement limit, currently 420,000 New large aircraft still small % of population (c 5 %) e-Jet

21. 21 Conclusions Low Cost Carriers Middle East Region next candidate – operational impacts not facilities Cost effectiveness/fitness for purpose even more important than ever New Generation Aircraft Middle East airports major players Cost effectiveness/fitness for purpose even more important than ever e-Jet