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Final Version of the Economic Sustainability PREZI @ the ICAO Air Transport Symposium - 20 April 2012

by Olivier Jankovec, Director General, ACI EUROPE
by Robert O'M on 29 October 2013

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Transcript of Final Version of the Economic Sustainability PREZI @ the ICAO Air Transport Symposium - 20 April 2012

THANK
YOU
DEVELOP NEW REVENUE STREAMS
Commercial Revenues
now account
for 47% of total
airport revenues
Olivier Jankovec, Director General
ICAO Air Transport Symposium
WWW.ACI-EUROPE.ORG
GROW INTERNATIONALLY
& ALLIANCES
THE BUSINESS OF STAYING IN BUSINESS - the (European) airport perspective
Capacity
Traffic Determinants
- Sovereign Debt Crises & GDP forecast
- Fuel Price: US$123!
- National Aviation Taxes
- EU ETS
- Airline Behaviour
Forecast for Europe's Top 20
BEYOND
AIRPORTS
CHALLENGES
Revenues under pressure & external costs rising

Capital costs:

Regulatory driven costs
Trading Conditions
Passengers: +3.9%
Freight: +3.0%
EUROCONTROL predicts
-1.3% flights
Governance
&
Political Interference
Policy & Regulatory Framework
Reflect & support
business transformation
& economic sustainability
Business-based decisions
No abusive dividend policy
i) Provide LEGAL CERTAINTY - airports expansion & charges

ii) Reduce OPERATING COSTS - security, safety, environment

iii) Provide NEW BUSINESS OPPORTUNITIES - Liberalisation
Basic Principles
+23%
(2010 v. 2009)
CONTRIBUTION


SOCIETY
AVIATION SECTOR
User pays principle, but not full costs
5
STRATEGIC
DIRECTIONS
YESTERDAY
the way we were
TODAY
airports are businesses
KEY DRIVERS OF
THE BUSINESS EVOLUTION
Airport
Competition
Public Financing
Squeeze
Shareholders'
Evolving Expectations
BUSINESSES
- IN OUR OWN RIGHT
Diversification
Serving ALL customers
Corporatisation (privatisation)
Self-financing & Fiscal discipline
No airline cross-subsidisation at the expense of airport shareholders
at the forefront
Mere infrastructure providers
Focused on national carriers
Dependent on public financing
= Economic sustainability NOT in our DNA
BOOST
COMPETITIVE
POSITION
1.
2.
REDUCE
DEPENDANCE FROM DOMINANT AIRLINE
DEVELOP
NEW REVENUES
& COST DISCIPLINE
3.
4.
PROVIDE
CAPACITY
& QUALITY
5.
GROW
INTERNATIONALLY
& ALLIANCES
BUSINESS MODELS
PROFITABILITY
Competitive Airport Charges

Airlines related charges = 16% of
airport revenues

2010 decrease: -7% / -€353 million

€4 billion cost UNDER-recovery
Boost Operational Efficiency

A-CDM & A-CDO
Airports = Ground Coordinators
& Total Airport Management
Diversify facilities & services & pricing





Active network development

Brand equity
= key for effective airline competition
Regional Airports
Europe's Top 20
Capex 2012-2016:

Redefine the airport experience
Technology & Social Media
Commercial revenues
= of airport revenues
Expanding beyond the Terminal...
...Airport City
= key to economic sustainability
Frankfurt Airport

Paris-CDG

Moscow Domededevo

Athens Airport

Birmingham

Charleroi
1st employment site in Germany

90,000 direct jobs, 270,000 indirect jobs

29,000 direct jobs

2.14% Greek GDP

130 companies established

+3% of city's workforce/ -60% unemployment
€43.3 billion
= Users not paying full infrastructure cost
= Lower airline operating costs
48% of Europe's airports
= loss making (2010)
Montreal, 20 April 2012
New Airline
Business Models
Aviation
Liberalisation
= Economic sustainability
48%
See the full transcript