AOA Conference, 14th November 2006 Royal Lancaster Hotel, London The Climate for Tour Operations

1
AOA Conference, 14th November 2006Royal
Lancaster Hotel, LondonThe Climate for Tour
Operations

• Laurie Price
• Director Aviation Strategy
• Mott MacDonald

2
Tour Operators

• One-stop shop holiday providers
• Many vertically integrated
• Initially a European (particularly UK German)
  phenomenon
• Original focus on Mediterranean
• Sun Sea Sand Sangria!
• Remember Vladimir Raitz and Harry Chandler!

3
UK Charter Airline Traffic
Source CAA
4
Charter Airlines share of ATMs
Source CAA
5
Charter Airlines share of Passengers
Source CAA
6
Evolution of Passengers per ATM
Source CAA
7
Charter Airlines - yesterday

• Spawned as response to restrictive post-war
  regulations to protect national carriers
• Formed to meet air service needs of Tour
  Operators
• Use of second hand aircraft
• Focus on the UK regions
• Affinity groups and ABCs
• Many launched by the post war entrepreneurs
• Britannia Monarch Caledonian BUA Laker
  Airways Court Line Dan-Air etc

8
Today

• Modern aircraft
• Optimised configurations
• Evolving products
• Diversified / differentiated / segmented
• Innovation
• Mantra of low unit/seat mile cost
• Seat only
• Strong regional presence

9
Challenges

• Impact of EC deregulation
• Increasing competition from LCCs resurgent FSCs
  / Legacy carriers
• Residual regulation and Bonding
• Distribution the internet

• Market dynamics maturity sophistication
• Airport access and slots
• Seasonality
• Move to longer haul
• The regions

10

• Debate!