1. TRAN Meeting – European Parliament Strasbourg, 25 March 2009
PROPOSED SUSPENSION OF THE EU SLOTS USAGE RULE Position of European Airports
TRAN Meeting – European Parliament
Strasbourg, 25 March 2009

2. THE VOICE OF EUROPE’S AIRPORTS
444 AIRPORTS / 45 COUNTRIES
90% OF COMMERCIAL AIR TRAFFIC
5 NATIONAL ASSOCIATIONS
ALFA ACI (French Speaking airports Worldwide)
UAF (France)
Assaeroporti (Italy)
AOA (UK)
ADV (Germany)

3. CRISIS IMPACT ON EUROPEAN AIPORTS

4. TRAFFIC 2008 (I)

5. TRAFFIC 2008 (II)

6. TRAFFIC 2009 JANUARY 2009 2009 FORECAST: - 5% pax / -15% freight
- 0,5% pax in 2001 and 2002
All geographical markets affected
Worst hit: Spain, UK, Poland, Baltic countries
O/D traffic badly hit (domestic) v. transfer traffic
Pax traffic to keep declining (pax/freight gap too wide…)
Demand/capacity imbalance… further capacity cuts ahead
UNCERTAINTY OF TIMING FOR REBOUND

7. REGIONAL AIRPORTS’ EXPOSURE
SPAIN (Jan09)
Cordoba -38,8%, Salamanca -38,2%, Vitoria -54,8%,
Almeria -35,8%
(Madrid -18,5%, Barcelona -21,7% / Santander +5,5%, El Hierro +2,8%)
FRANCE (Jan09)
Clermont -26,7%, Limoges -22,8%, Chambery -61,39%,
Rennes -17%
(CDG -6,5%, ORY -10,7%, Nice -10%, Marseille -10% / Grenoble +27%, Biarritz +13,6%)
SWEDEN (Jan09)
Karlstad -28%, Are Ostersund -35%, Kiruna -30% Malmo -14%
(Stockholm-Arlanda -16%, Goteborg -18% / Lulea -9% STO-Bromma -6%)
GERMANY (Jan09)
Dortmund -27,1%, Stuttgart -13.9%, Saarbrücken -13,2%,
Hannover -12,5%
(Frankfurt -10,4%, Munich -9,5%, Düsseldorf -7,5%, Berlin -5,9% / Lübeck +9,5%; Weeze +61,1%)

8. REVENUES & COSTS IMPACTS
DOUBLE WHAMMY
Declining aeronautical revenues
Declining commercial revenues
INCREASING CAPITAL COSTS
Access to capital markets difficult/costly
Privatized airports potentially more exposed
INCREASING SHAREHOLDER PRESSURE
Publicly-owned airports potentially more exposed
INCREASING AIRLINE PRESSURE
Request for charges decreases
New aviation market structure…

9. SLOTS USAGE SUSPENSION NOT A LEGITIMATE CRISIS RELIEF MEASURES

10. LOOKING AT CRISIS RELIEF MEASURES
NO AVIATION-SPECIFIC CRISIS (contrary to 911…)
ALL AVIATION SECTORS AFFECTED
Network Airlines, Low Cost Carriers, Charters, Regional Airlines, Airports, Air Navigation Service Providers, Ground Handlers, etc
Unprecedented & continuing uncertainty
STRUCTURAL CHANGES UNDERWAY
LCC: 23% market share intra-EU 2007… +50% by 2020
Consolidation: SkyTeam, Star Alliance, oneworld
NO ONE-SIDED & SHORT-SIGHTED MEASURES
(Proportionality, Objectivity, Non-discrimination)
No bail-out, No slot suspension, No airport charges freeze
BUT
Reconsider policy & regulatory framework
at EU and national level: 5 key measures!

11. IMPACT ON AIRPORTS (I) Unused slots by incumbents
NO EFFICIENT USE OF SCARCE AIRPORT CAPACITY
Unused slots by incumbents
Unsatisfied demand (new entrants & other incumbents)
WAITING LISTS TYPOLOGY
New route from new entrant
New route from incumbent
Frequency increase by incumbent
Time change by incumbent
SIGNIFICANT UNACCOMODATED DEMAND (Summer 09)
London-Heathrow: 5,3% of total slot capacity
London-Gatwick: 3,7% of total slot capacity
Paris-Orly: 9% of total slot capacity
Frankfurt: 3% of total slot capacity
Dusseldorf: 7,5% of total slot capacity
Zurich: 3,8% of total slot capacity

12. IMPACT ON AIRPORTS (II)
WORSENS THE IMPACT OF THE CRISIS
Airlines will not take up a slot for just one season
(no return on investment)
Flight cancellations by incumbents with no possible substitution
= less revenues for airports – VERY SIGNIFICANT!
(up to - 20 mil€/season for large congested airport)
AIRPORTS DE FACTO SUBSIDISING INCUMBENTS FOR NOT FLYING!
IMPACT BEYOND CONGESTED AIRPORTS
Regional airports: risk of loosing connectivity
= regional routes more likely to be cancelled
(Durham loosing LHR service: - 1,5 mil€ for business community)
Ground handlers & Retailers: less revenues
Traveling public: exposure to late cancellations
Single market: competition & sector restructuring

13. IMPACT ON AIRPORTS (III)
BEYOND THE PRESENT CRISIS…
By 2025: 19 highly congested airports in Europe!
Rationale for slot allocation system?
Efficiency regarding use of scarce capacity/competition?
Who owns slots?
POSITIVE EVOLUTION OF EUROPEAN AIRPORTS
Airports are now businesses in their own right
Self financed, fiscal discipline, competitive environment
No longer focused on just one airline
Driver of airline competition
Reflects impact of liberalization & market changes
2009 IS NOT 2001