Developments in the French market

7th FrenchConnect - Lourdes23 June 2010

Ralph AnkerEditor

anna.aeroralph.anker@anna.aero

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Overview of presentation ‘10

• What’s happened to European airlines since last year?• Size of European LCCs• European ‘big5’ country markets• What’s happening in France?

– Airport “growth” in 2009– Domestic market developments– Country market trends 2010 v 2009– New French short-haul routes

• Conclusions

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Airline developments in Europe

• Lufthansa completes acquisition of Austrian, bmi, Brussels Airlines

• Vueling and clickair merge to create ‘new’ Vueling• Aegean and Olympic merging to create ‘new’ Olympic• BA/Iberia merger to be approved shortly?• ‘New’ Alitalia now growing (Air France/KLM have share)• Flyglobespan, MyAir.com and SkyEurope collapsed• Heathrow’s third runway plans axed: BA disappointed• LCCs, airBaltic and Turkish Airlines growing networks

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LCCs still growing

pax up 13% to 65.3 millionpax up 3% to 46.1 millionpax up 43% to 10.8 millionpax up 6% to 9.7 millionpax up 39% to 8.2 millionpax up 32% to 7.8 millionpax down 6% to 7.2 million

Other LCCs: Blue Air, bmibaby, Jet2.comHybrid carriers: airberlin, Monarch, niki, Thomson,

Transavia.com, TUIflyRegional carrier: Flybe

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Air France still dominates FranceSource: Airline Weekly 7 June 2010 (derived from OAG data)

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Comparison across EuropeVersus Germany, Italy, Spain and UK (2009)

Country Airport pax % vly >1m* 2010 Q1UK 221.3m -7.2% 21 -2.3%

Spain 187.4m -8.1% 25 +3.4%Germany 182.2m -4.6% 18 +4.2%France** 139.9m -3.9% 14 +1.0%***Italy 130.1m -2.3% 23 +9.2%

* Number of airports with more than 1 million annual passengers** Does not include Basle-Mulhouse*** Estimated from sample of busiest French airports reporting monthly data

Source: UK CAA, ADV, Aena, www.aeroport.fr, Assaeroporti

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Largest French AirportsAirport Pax:09 % vly LCC:09 LCC% LCC “growth”

1 Nice 9.83m -5.3% 3.13m 32% -7.3%2 Lyon 7.72m -2.6% 1.33m 17% +26.2%3 Marseille 7.29m +4.7% 1.82m 25% +49.8%4 Toulouse 6.28m -1.1% 1.09m 17% +14.0%5 Basel-Mulhouse 3.85m -9.6% 1.80m 47% -10.6%6 Bordeaux 3.32m -6.7% 0.48m 14% -3.2%7 Nantes 2.65m -3.0% 0.39m 15% -6.6%8 Paris Beauvais 2.59m +4.3% 2.59m 100% +4.3%9 Montpellier 1.23m -2.5% 0.27m 22% +14.8%10 Lille 1.15m +13.1% 0.22m 19% +383%Source: www.aeroport.fr

Paris CDG 57.91m -4.9% 4.63m 8% -8.1%Paris ORY 25.11m -4.2% 5.44m 22% +8.2%

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New French short-haul routesStarted operating between 1 April 2009 and 31 May 2010

Airport Routes Airlines1 Paris CDG 17 Air Arabia Maroc, Air Malta, airBaltic, Blue1, Cimber

Sterling, Croatia Airlines, easyJet, MyAir, TurkishAirlines, Vueling, Wind Jet

2 Paris Orly 15 easyJet, Norwegian, Pegasus, Transavia, Vueling3= Basel-Mulhouse 14 Aigle Azur, DanubeWings, easyJet, Pegasus, Swiss3= Paris Beauvais 14 Ryanair, Wizz Air5 Nice 11 Aer Lingus, Baboo, Blue Air, easyjet, Estonian Air

germanwings, niki, Tarom, Ukraine International6= Bordeaux 10 Air France, easyJet, jet4you, Ryanair6= Lyon 10 Air Arabia Maroc, easyJet, Tarom, Royal Air Maroc8 Marseille 8 Air Arabia Maroc, Baboo, Ryanair, Pegasus, Spanair9 Nantes 7 Air France, CityJet, Transavia, WindJet10= Lille 6 Aigle Azur, Ryanair10= Montpellier 6 Air Arabia Maroc, Cimber Sterling, Ryanair, Transavia12 Bastia 5 easyJet, germanwings

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New French short-haul routesStarted operating between 1 April 2009 and 31 May 2010

• Total of 153 new short-haul routes involving 24 French airports and 37 airlines

• Leading airlines:– Ryanair 37 new routes (32 last year); 3.0 weekly flights (3.3)– easyJet 33 new routes (28 last year); 5.1 weekly flights (6.4)– Transavia.com 9 new routes; 1.8 weekly flights

• Leading country markets– UK 22 new routes (37 last year)– France 21 new routes (18 last year)– Italy 21 new routes (5 last year)– Spain 13 new routes (6 last year)– Morocco 8 new routes (7 last year)

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Conclusions

• Flag-carriers are busy consolidating

• Many new routes from biggest LCCs are being launched at very low frequency (less than daily) often seasonally

• easyJet and Ryanair account for 45% of all new short-haul routes started in France in last 14 months– Venturing further into domestic routes

• Paris airports (BVA, CDG, ORY) account for only 30% of new short-haul routes (same as last year)

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