Keynote speeches
Ms Angela Gittens, Director General, ACI World gave an analytical description of the worldwide traffic trends and airport economics in numbers.
Despite the turbulent economic situation in Europe and political unrest in other parts of the world, air traffic has experienced growth, though modest: the 4.4% growth in passenger traffic outpaced the 3.2% growth of world output. As expected the gains were modest in the mature and financially unstable markets of Europe and North America while the BRICS recorded a 7.4% growth and the emerging markets performed even higher at 8.7% driven by demographics and per capita income increase. Passenger traffic is growing in all regions but the top performing regions are Asia and the Middle East with 11.5%. In 2012 air cargo grew only by 0.5% because of economic factors and because of pressures from alternative modes of freight delivery. Aircraft movements recorded modest gains as a result of economic slowdown and airlines’ efforts to curtail capacity and to increase aircraft load factors to increase yields.
In her presentation of airports data, Mrs Gittens stressed that although airports are directly influenced by airports, they operate a completely different from airlines so they have resorted to the diverfication of their business portofolios as a buffer against the volatility of the air transport market. Quite successfully, it seems as they have recorded an increase of 2.4% from 2010 and aeronautical income remains their main source of revenue as it represents 57%, She also noted that both landing and passengers charges at airports increased, a fact that indicates that when faced with traffic decrease both airlines and aiports try to pass charges to passengers, Non-aeronautical activities represent 38% of airport revenues but have greater profit margins. On the cost side airport experienced a 1.19% rise in operating and capital costs but the increase in total income overcame this increase. A common element in all airports is the declining average cost curve as the initial cost of infrastructure, the cost of supplying services to addtional passengers is low and total cost falls considerably. She also noted that high volume traffic remains concentrated in a few airports and airports representing the 20% of passenger traffic make up 80% of the world’s airports.
Mrs Gittens went on to talk about the resolution adopted at the 38th IACO assembly to commit to a global market-based measured for aviation emissions to be decided at the 2016 ICAO assembly. She said that the next three years will be spent on technical discussions that will set the standars for monitoring, reporting and verification of emmissions and the type of scheme to be implemented, with airports playing a key role.
She concluded by stessing that caced with constantly and suddenly changing market conditions, the air transport stakeholders need to work together and announced that ACI and IATA just signed a formal agreement to collaborate on technical specifications for data exchange and world wide capacity, an agreement which will benefit airports, airlines and passengers making the airline industry safer and more efficient.
Mr Olivier Jankovec, Director General, ACI Europe, presented the european evolution of traffic in 2012, which recorded an increase by 1.8% of passengers, a significant decrease of cargo by 2.8% while movements decreased by 2.5% An the same time, the traffic in the hubs increased by 2.5% versus a marginal increase of the traffic in regional airports. This year, statistics from January to August show an improvement of the traffic of passengers by an 2.1% increase, a marginal decrease of cargo by 0.7% and a decrease of 2.1% of movements; forecasts for 2013 anticipate an increase of passengers by 2% and 0% of cargo. He added that 27% of european airports are losing traffic (but this figure is better than the 66% in January) and 42.5% are loss making (49% in 2012).
He emphasized that now there exist new forces and fundamentals such as commoditisation, with some airline proceeding to a capacity increase- such as LCCs, Turkish Airlines and Gulf carriers. There is also more environment uncertainty for airports: for example in 2012, 1030 routes were scrapped and the planning horizon shortened (obliging airports to reduce their costs, to focus on commercial activities and offer competitive charges). He concluded tha airports are undergoing a business transformation from B2B to business to client mode.
Dr Yiannis N. Paraschis, Chairman ACI World & CEO, Athens International Airport, said that historically the airlines since 1975 are loss making. Three Gulf carriers in 2015 will be in the top 20 by capacity and the airports in Middle East plan for a 450 million passengers capacity. In the neighborhood of Greece and SE Europe there is a clear dominance of Turkish carriers (Turkish Airlines, Pegasus and SunExpress). He added that european passenger traffic development is highly correlated with the home base carrier growth.
The major challenges for the SE European region include the marginal growth in Western Europe, state capitalism but other dynamics play an important role: the strong development in China, Gulf countries and Turkey, the development of LCCs and the concomitant pressures on costs across the travel industry’s value chain, the consolidation of european network airlines, limited room for development of peripheral EU airlines and. As for the Greek market, the A3/OA merger creates an opportunity for growth.
He finally stressed that there is a changing climate with positive signs in Greece with GDP improving, Athens becoming a choice destination and home airline strategy improving.
Airports as catalysts for the promotion of the Destination
Mr James Cherry, CEO, Montreal Airport, in his speech described that apart from the geographical, economic and demographic dimensions the partnership angle needs to be added . Airport is the focal point and has a natural role to play as airports possess data that other air transport stakeholders don’t have.
Mr Declan Collier, CEO, London City Airport, focused on the importance of the airport location, the convenience for passengers and the speed of transit as 61% of passengers fly for business reasons and 60% is inbound traffic. The airports has a 880 million Euro annual contribution to UK and 2,100 employees. He added that London is moving east and there is a cooperation with local businesses. Finally he said that LCY approach is to remove capacity constraints, to conduct detailed research on city pair opportunities, on resources research, and on promotion and marketing; the airport promotes the destination, works with airlines on yield, fleet and route opportunities and co-ordinates and acts as catalyst for inward investment.
The Study:“Assessing the Economic Impact of Athens International Airport” conducted by the Athens University of Economics and Business was presented by Dr. Gregory P. Prastacos, Dean and professor, Howe School of Technology Management, Stevens Institute of Technology, USA, former Rrofessor and Rector of the Athens university of Economics and Business (AuEB)/ The study demonstrated that the business activity of the Athens airport contributes 2.63 percent of the country’s GDP, and creates approximately 100,000 jobs despite the economic crisis.
The Impact of Aviation on Economic Development
Mr Fredrick J. Piccolo, Vice Chairman ACI World & President & CEO, Sarasota-Manatee Airport Authority, presented the contribution of aviation in the US economy in figures: 1.2 trillion USD, 10.5 million jobs (5.2% GDP) and 361 direct connections between domestic cities. In the case of Sarasota Airport there is an impact of 968 million USD and 11,400 jobs.
Mr Philippe Baril, Chairman, Quito Airport, said that only in the first year of operations at the new airport 18,000 jobs were created.
Dr Michael Kerkloh, President & CEO, Munich Airport, analyzed the role of MUC airport in the economic growth of the region as the city has become a prime business location for high tech, medical, IT, automobile, sport, media, etc. As he said, an efficient airport is the prerequisite for economic growth and gave a an impressive example: every new long haul range aircraft based in Munich generates up to 400 jobs (A380) and there are in Munich 25 long range aircraft based.
He concluded by saying that the salaries of airport employees increased by 26% between 2006 and 2012 and the aviation sector in Germany contributes 47.9 billion Euro and supports 816,000 jobs.
Ms Emmanuelle Maire, Head of Unit, Internal Market and Airports, DG Move, EC said that the EU internal market in aviation is one of the success stories of EU; however, confronted with internal constraints and growing competition from third countries it needs to evolve, and added that capacity and quality will continue to be high on the agenda of EC and stressed that more work is needed on delays and airport performance.
Source:http://www.atn.aero
Source:http://www.atn.aero
