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DFNI Conference, Malta 12.-14.11.2012, Slide 1 Event Date Place Welcome to.

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Presentation on theme: "DFNI Conference, Malta 12.-14.11.2012, Slide 1 Event Date Place Welcome to."— Presentation transcript:

1 DFNI Conference, Malta , Slide 1 Event Date Place Welcome to

2 DFNI Conference, Malta , Slide 2 SunExpress history More than 20 years of experience in tourism and aviation 50% Founded in 1989 as joint venture between LH and TC based in Antalya. Originally purely a charter airline 2001: Commencement of scheduled services e.g. to Frankfurt began 2006: Second base in Izmir opened 2008: Third base in Istanbul opened 2010: New corporate identity 2011: SXD founded, based in Frankfurt Since April 2012 co-operation between SXS and Anadolu Jet

3 DFNI Conference, Malta , Slide 3 Facts and figures SunExpress in a nutshell Fleet: 30 Boeing s (SXS – 23 / SXD – 7) 10 Aircraft for Anadolu Jet Age of fleet: 7 Years (average) Network: 87 destinations connecting Europe with Turkey, Egypt (Red Sea) and Canary Islands Offices: Corporate Headquarters in AYT and FRA with branches in ADB and SAW Employees: More than staff members in Turkey, Germany and Switzerland Passengers: 7.7m (+16% vs. 2010) > Intl.: 4.4m (+30%) > Domestic: 3.3m (+2%) Flights: 52,930 (+12%) Revenues: 668.7m (+30%) KPIs 2011 Fleet & Network People

4 DFNI Conference, Malta , Slide 4 Business segments Over the years, SunExpress developed from a charter carrier focusing on Antalya tourism to a holiday airline with various market segments Carrying both tour operator and seat-only passengers from Western European countries to warm water tourist destinations (Turkey, Egypt – Red Sea, Canary Islands), SunExpress is one of Germanys leading holiday airlines International Tourism Since 2002, SunExpress offers its Turkish customers a dense domestic network connecting the Turkish coastline with 14 emerging Anatolian cities SunExpress ranks 3 rd among all domestic operating airlines in Turkey Turkey Domestic Traffic Targeting the VFR (Visiting Friends & Relatives) segment, SunExpress offers direct connections from Germany to several Eastern Anatolian cities VFR Germany – Anatolia, Turkey

5 DFNI Conference, Malta , Slide 5 Turkey SXS Iris Ekspres Germany SXD Lufthansa World Shop Duty Free Strong partners for SXS and SXD

6 DFNI Conference, Malta , Slide 6 Cooperation SunExpress (SXD) and Lufthansa WorldShop Settlement Equipment flow Coordination with catering units and IT provider Cash handling Monitoring of flight plan Customs clearance issues Statistical reports for Duty Free and Buy-on- Board Optimal stowing of articles Commission Training / Top sellers ISPY training and participation Duty Free News crew guide for each new assorment Samples display at crew base Product booths Printing and distribution of catalogues Disposition of articles Communication with suppliers Product assortment Promotions Crew Daily Business Back Office Duty Free Assortment

7 DFNI Conference, Malta , Slide 7 Revenue SplitSpend per Head Duty Free Revenue 2012 so far.... Expected revenue 2012: ca. 4 million Euros Average Spend Per Head (SPH): 3,89 Tobacco products account for 81% of revenue! Passenger Split

8 DFNI Conference, Malta , Slide 8 Challenges & Opportunities Airport Retailing Rising Oil Prices Technology Legislation & International Regulations Pressure on cost base Customer price sensitivity Weight reduction Maximisation of Duty Free revenue in limited space available Opportunities for new sales channels Costs vs. benefits The Airport Experience Wider selection of goods Brand interactivity (touch and test) Possible restrictions on advertising of Duty Free tobacco for example could have a huge negative impact on revenue

9 DFNI Conference, Malta , Slide 9 Motivation Why should our passengers buy Duty Free products on board? Time & Convenience Exclusivity Promotions Duration of check-in procedure Early morning / late evening departure times More convenient for families and the elderly Products exclusive to inflight retail e.g. Pierre Cardin jewellery Items with SunExpress Logo Monthly promotions e.g. Free gift with every purchase Discounts on selected items Participation in a draw for prizes with every purchase

10 DFNI Conference, Malta , Slide 10 Product Mix & Loading profiles Knowing our customers helps us to have the optimal product mix and quantities on board Anatolia (VFR) Turkey (AYT,ADB, DLM,BJV) Egypt (Red Sea) & Spain Turkey (AYT,ADB, BJV,DLM) Egypt (Red Sea) & Spain Ethnic passengers primarily visiting family & friends Duration of stay of every 2nd passenger is in excess of 21 days Many take gifts and household goods in checked luggage Duty Free focus on tobacco, spirits & sweets: High brand loyalty: Marlboro, Yeni Raki, Johnny Walker German tourists, and ethnic passengers Average duration of stay is 7-14 days Duty Free focus on tobacco, spirits & bargain-buys German tourists, virtually no ethnic passengers Average duration of stay is 14 days Mind-set: Treat yourself and gifting! Duty Free focus on watches, jewellery, accessoires Must-have: Underwater cameras!

11 DFNI Conference, Malta , Slide 11 SunShop Our Duty Free Magazine The start of the buying experience Paper & printing quality Clarity and creative appeal All texts in Turkish and German Choice of product on front page Online

12 DFNI Conference, Malta , Slide 12 Our ethos: Sales through Service Good training and incentives are vital to boosting sales Knowing the customer: Culture, language, mind-set, needs Knowing the products: Brands, features, benefits,pricing, special offers Selling skills: Up- / down-selling, cross-selling, linked sales, PAs, displays, competence, enthusiasm Duty Free News Crew Guide Sales Ambassadors ISPY (International Sales Person of the Year) Targets, prizes, staff discounts

13 DFNI Conference, Malta , Slide 13 Duty Free advertising on ETIX Onlineshop SunPoints Pre-Order Purchasing virtual products on board Newsletter Home Delivery Ideas for the future..... Social Media

14 DFNI Conference, Malta , Slide 14 …welcome aboard.

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