1. The importance of regional aviation to the UK European Regions Airline Association Simon McNamara

2. Contents  Overview of regional aviation  Slot allocation developments  The role of PSOs

3. What is ERA?

4. 66 airlines 39 airports in 26 countries

5. What is ERA?  Average aircraft size = 70 seats  Average flight time = 1hr 20 mins  70% operations to/from major hubs  2 out of every three landings are at regional airports  60% of traffic is business related  35% of traffic is interline

6. Traffic mix in Europe

7. What is ERA? Year 2003 data  78+ million passengers  2m flights  1200+ aircraft

8. UK facts  ERA members provide:  298 daily flights starting or finishing in the UK  access to 68 points within the UK and mainland Europe  Approx 28m passenger per year move to/from and within the UK using ERA members  376 airports in Europe are solely served by regional aviation Data source: OAG

9. Europe – the reality Enlarged EU - population distribution Capitals 41m Regions 412m 9 out of 10 EU citizens live in the regions

10. Enlarged EU - population distribution Capitals 41m Regions 412m Capitals 41m Regions 412m … a significant justification for the liberalisation of air transport is to stimulate the social and economic development of Europe’s regions… Preamble to the ‘Third Package’

11. Europe - the benefits from intra-European air transport  Air transport contributes around €370bn per annum to the enlarged EU economy, about 4% of Gross Domestic Product

12. Europe - the benefits from intra-European air transport  International accessibility for businesses in Europe’s regions  Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)  International accessibility for businesses in Europe’s regions  Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)

13. Slot allocation developments  2 nd round amendment of EU regulation on slot allocation is one of ERA top priorities  The initial ideas developed by consultants on behalf of the EC have to potential destroy regional access to congested airports

14. Slot allocation regulation  EC has completed a study to ‘examine the feasibility and likely impact of using market mechanisms to allocate slots at congested EU airports.’  Examines mainly  Slot trading  Higher prices (ie selling slots)  Auction of pool slots

15.  Proposal possible before end 2004  Implication of study on regional airlines:  Larger volume of pax through apts  Larger aircraft  Regional services withdrawn from hub airports  Shift of services from the peaks  Passenger volume is regarded as a key driver for airport success Slot allocation regulation

16. PSOs  EC is looking at PSOs as part of its announced review of the “3 rd package”  A number of interested parties (including airlines) think the system is being abused  Timing of action by EC is unknown but an amendment could make PSO use at congested airports even more restrictive

17. Other PSO issues  ERA supports PSO  PSOs benefits communities and regions first - NOT airlines  ERA support regional authorities having more power to approve and finance PSOs

18. Should slots be reserved for PSOs?  This is the most critical question for groups interested in regional access to congested airports  Until the slot ownership issue is addressed slots cannot be reserved  Ie if a state/regional government does not own a slot how can it reserve it?

19. Should slots be reserved for PSOs? A radical review of the slot allocation regulation will make the subject of reserving slots for PSOs meaningless

20. The Baker Suite, Fairoaks Airport, Chobham, WOKING, Surrey, GU24 8HX, UK Telephone: +44 (0)1276 856495 Fax: +44 (0)1276 857038 E-mail info@eraa.org, Web site www.eraa.org and www.fly-safely.org The importance of regional aviation to the UK