Developments in the French shorthaul market focus on LCCs

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Developments in the French short-haul market
focus on LCCs

• 6th FrenchConnect - Limerick
• 23 April 2009
• Ralph Anker
• Editor
• anna.aero
• ralph.anker_at_anna.aero

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Overview of presentation 09

• Whats happened to European LCCs in the last 12
  months?
• Size of European LCCs
• European big5 country markets
• Whats happening in France?
• Country markets by airline type
• LCC share of airport traffic
• Domestic market developments
• Corsica
• New French LCC routes
• Conclusions

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What we said last year

• Air Berlin absorbs dba, LTU, Belair
• Bid for Condor still with German competition
  commission
• easyJet acquires GB Airways
• Former BA franchise based at London Gatwick
• Ryanair acquires major share in Aer Lingus
• Sterling completes integration of Maersk
• Norwegian takes FlyNordic from Finnair
• Flybe completes integration of BA Connect
• Germanwings and TUIfly merger planned
• Vueling talking to potential partners (including
  Click Air)
• Centralwings being re-sized by parent LOT

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LCC growth has slowed

• pax up 18 to 57.6 million
• pax up 17 to 44.6 million
• pax up 1 to 28.6 million
• pax up 8 to 9.2 million
• pax down 3 to 7.6 million
• pax up 18 to 7.5 million
• pax up 38 to 6.3 million
• pax down 5 to 5.9 million
• pax up 41 to 5.9 million
• pax down 9 to 3.9 million
• pax up 2 to 3.6 m

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Comparison across EuropeVersus Germany, Italy,
Spain and UK (2008)

• Country Airport pax vly gt1m 2009 Q1
• UK 238.7m -1.9 22 -12
• Spain 203.8m -3.1 26 -18
• Germany 191.0m 1.1 19 -9
• France 145.7m 1.5 15 -9
• Italy 133.5m -1.7 21 -12
• Domestic traffic 2008 Germany up 2, France down
  2, Italy down 4, UK down 5, Spain down 8.
• Number of airports with more than 1 million
  annual passengers
• Source UK CAA, ADV, Aena, www.aeroport.fr,
  Assaeroporti

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Largest French Airports

• Airport Pax08 vly LCC08 LCC LCC growth
• Nice 10.38m -0.2 3.38m 32.6 2.5
• Lyon 7.92m 8.2 1.05m 13.3 123.0
• Marseille 6.97m 0.0 1.21m 17.4 12.8
• Toulouse 6.35m 3.0 0.96m 15.1 14.1
• Basel-Mulhouse 4.26m -0.3 2.02m 47.4 7.2
• Bordeaux 3.56m 2.7 0.50m 14.1 29.3
• Nantes 2.73m 5.5 0.41m 15.1 45.1
• Paris Beauvais 2.48m 15.3 2.48m 99.8 15.3
• Strasbourg 1.33m -23.3 0
• Montpellier 1.26m -2.4 0.24m 18.8 22.6
• Source www.aeroport.fr
• Paris CDG 60.87m 1.6 5.04m 8.3 7.4
• Paris ORY 26.21m -0.9 5.02m 19.2 21.7

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French airport growth 2008

• In 2008 non-Paris airport traffic grew about 2.4
  to almost 60 million (Source www.aeroport.fr)
• Total traffic grew by 1.38m (3.05m in 07)
• LCC traffic grew by 1.96m (1.89m in 07)
• LCC traffic grew by 14.5 (16.0 in 07)
• LCC traffic accounted for 142 of all traffic
  growth (62)
• LCC market share increased from 24.2 to 25.9
• After Air France franchisees the next biggest
  airlines in France are easyJet and Ryanair
• Fastest growing airports in France in 2008 were
  Tarbes/Lourdes, Paris Beauvais, Biarritz, Bastia
  and Lyon
• Minimum of 500k annual pax

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LCC traffic at French airportsAnnual passengers
2008
Source www.aeroport.fr
Source www.aeroport.fr
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LCC share of traffic
Source www.aeroport.fr
Source www.aeroport.fr
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New French short-haul routesStarted operating
between 1 April 2008 and 31 March 2009

• Airport Routes Airlines
• Paris CDG 13 Aegean, Air France, easyJet, Flybe
• Lufthansa Italia, MyAir, Sterling, Tarom
• Lyon 12 Aigle Azur, British Airways, easyJet
• 3 Marseille 10 Aigle Azur, germanwings, Ryanair
• 3 Nice 10 Aer Lingus, airBaltic, bmibaby,
  Cimber,
• City Airline, easyJet, Flybe, Lufthansa,
• Norwegian, Transavia
• 5 Paris Beauvais 8 Ryanair, Wizz Air
• 5 Paris Orly 8 Air France, airberlin, clickair,
  easyJet,
• Iberia, MyAir, Transavia
• Basel 7 easyJet, Ryanair, TUIfly
• 8 Biarritz 5 easyJet, Ryanair
• 8 Grenoble 5 Air Southwest, Ryanair
• 10 Bordeaux 4 Aer Arann, Baboo, easyJet,
  germanwings
• 10 Montpellier 4 CCM, easyJet, Ryanair,
• Transavia

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New French short-haul routesStarted operating
between 1 April 2008 and 31 March 2009

• Total of 111 new short-haul routes involving 24
  French airports and 33 airlines
• Leading airlines
• Ryanair 32 new routes (22 last year) 3.3 weekly
  flights
• easyJet 28 new routes (21 last year) 6.4 weekly
  flights
• Flybe 5 new routes (12 last year)
• Leading country markets
• UK 37 new routes
• France 18 (9) new routes
• Morocco 7 new routes
• Spain 6 new routes
• Germany, Ireland and Italy 5 new routes

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Conclusions

• Not all LCCs are still growing
• Many new routes from biggest LCCs are being
  launched at very low frequency (less than daily)
• easyJet and Ryanair account for over 50 of all
  new short-haul routes started in France in last
  12 months
• Venturing further into domestic routes
• Paris accounts for only 30 of new short-haul
  routes

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