How airlines are utilizing new vs. traditional distribution tools?Alex Cruz, CEO, VuelingAPG World Connect25 Oct. 2012

How airlines are

utilizing new vs.

Is it a future of hybrid airlines? What is a hybrid airline? Does it

matter? Is there a new vs.

traditional distribution

tools?

matter? Is there a single formula for

everyone?

INDEX A.Vueling

B.Distribution

C.What do people want?

D.Moving forward

E.What are we going to talk about next year?

A.Vueling

1.Who are we?

2.Business model2.Business model

3.Future

Who are we?

Only profitable

59 aircraft 74

main airports

14 bases

50 million passen-

gers

Connecting at

BCN

profitable airline south

Europe

Who are we?

Business model

Vueling, the 2nd airline with the lower costs in Europe

Total CASK ex-fuel 2011 (c€)

7,166,89

4,584,364,18

o Unlike its LCC rivals, Vueling still has several levers to lower its costs further, e.g. fleet costs

Future . . .

4,18

2,22

airBerlinAirLingusNorwegianeasyJetVuelingRyanair

e.g. fleet costs

o It is reasonable that this cost line will improve further 2012-2014

… and traditional airline experience!

Business model

New

Gen

erati

on

bu

sin

ess c

lass

Empty middle seatExtra pitchReclining seatGuaranteed Rack SpaceSnackPriority boardingExclusive countersTotal fare flexibilityOn board trolley + bag

New

Gen

erati

on

bu

sin

ess c

lass

Future

100 Destinations

from Barcelona(1st BCN airline)

Internationalexpansion

BCN

expansion with more

basis across Europe

Business focus and continuous

growth

B.Distribution

1.Best model

2.2.Historical evolution of channels

For the first time in the history of the awards, one company – Vueling,

has won four of the eight Budgie awards

Best model

• Best Airline of the Year

• Best Business Traveler Offering

• Best Sales Strategy

• Best Distribution Strategy

Historical evolution of channels

Direct / Indirect Sales Mix

50%

50%

2006 2007 2008 2009 2010 2011 2012

100%

Channel Distribution (’12)vueling.com

OTAs

Special Ops

Agency

Cust. Care

Iberia

Direct Channels

Mainly web(Price SensitiveCustomers)

Indirect Channels

Agency: (High value customers)

C.What do people want?

Different things at different timesdifferent times

1. Business

2. Leisure

Business

No hassle

All inclusive Punctual

Leisure

Price, price, DIY, price ...

D.Moving forward

1.Need to be everywhereeverywhere

2.Adapting the product to the consumer

GDS

Need to be everywhere

Mobile Apps Web Codeshare

Call CenterGroups/TTOO Airports OTAS

Seat Advance/Standard Exclusive counters at MAD and BCN

Adapting the product to the consumer

Cheap tickets through the web

Bundled fares

GDSindirect channels

1st row with extra pitch, reclining seatand free middle seat

Snack on board included

Preferential boarding

Guaranteed Rack Space (14Kg)

Excellence FareOptima Fare

Typical Vueling fare: Free check-in online, free mobile application ...

Basic Fare

Seat Advance/Standard

Advance your flight the same day

Included baggage (23kg) Total fare Flexibility

Exclusive counters at MAD and BCN

Refund permitted

Click & Fly

IB points

Advance your flight the same day

Included bag (23kg) + on board trolley

Click & Fly

IB points

E.What are we going to talk about next year?

What are we going to talk about next year?

Consolidation of intermediates, like most recent years

GDS, like every year

Google and ITA

Vueling Future

Pan-european,More geographies

More premiumIncrease connections withother carriers

VUELING AIRLINES SA | PARQUE DE NEGOCIOS MAS BLAU II - PL. DEL PLA DE L’ESTANY, 5 | 08820 EL PRAT DE LLOBREGAT - BARCELONA· SPAIN