airbaltic the leading airline in the Baltic s September, 2010

Transcription

1 airbaltic the leading airline in the Baltic s September, 2010 Bertolt Flick

2 Contents airbaltic Story Baltic Markets Our present and future 2

3 Contents airbaltic Story Baltic Markets Our present and future 3

4 airbaltic in a nutshell airbaltic was established as a commercial airline to service flights to and from Baltic s airbaltic Corporation was founded in Initial shareholders SAS, IO fund, Swedfund, BI USA 1998 SAS buys out BI USA; 1999 Transaero becomes a minority shareholder; 2003 SAS buys out IO fund and Swedfund; Current (as of Jan 29, 2009): state of Latvia (52.6%), SIA Baltijas aviācijas sistēmas (47.2%), Transaero (0.2%); Serves 80 international routes from Riga (Latvia), Vilnius (Lithuania) and Tallinn (Estonia) Fleet consists of 32 aircraft 1400 employees 4

5 Direct flights from Riga airport in

6 Direct flights from Riga airport in

7 Direct flights from Riga airport in

8 The passenger growth in Riga airport has been significant Number of passengers in Riga airport Number of passengers ('000)

9 Number of destinations S2010 Destinations S ,00 90,00 80,00 70, ,00 50, ,00 airbaltic (Riga) Finnair (Helsinki) Norw egian (Oslo) SAS (Stokholm) 9

10 Contents airbaltic Story Baltic Market Our present and future 10

11 Riga airport has twice as many passengers as Vilnius and Tallinn combined Passenger development in the Baltic capital airports 4.5 Num ber of passengers (mln) LV LT EE 11

12 Riga has natural gravity Total air transport market for 2009 in Estonia was 1.4 million passengers Total number of destinations served from TLL (Tallinn International Airport) was 30 airbaltic market share in air traffic was 13% (TLL apt) Riga had 4.0 million air passengers in 2009 Total number of destinations served from RIX (Riga International Airport) was 80 airbaltic market share of traffic is 65 % Total air transport market for 2009 in Lithuania was 1.3 million passengers Total number of destinations served from VNO (Vilnius International Airport) was 22 airbaltic market share in air traffic is 26 %

13 Traffic to CIS countries has increased Passenger volumes to CIS from Riga airport have increased 8 times since airbaltic is the driver behind the development No. of passengers (est) Tallinn Vilnius Riga Destinations from RIX (2009): ALA, GYD, EVN, KBP, KGD, KIV, LED, MOW, MSQ, ODS, SIP, TAS, DYU, PKV, TBS 13

14 Riga has over three times more destinations to CIS compared to other Baltic Sea hubs Number of destinations to CIS countries, RIX VNO TLL ARN HEL TXL WAW 14 ARN Stockholm-Arlanda Airport HEL Helsinki-Vantaa Airport TXL Berlin-Tegel International Airport WAW Warsaw Frederic Chopin Airport

15 Passengers by CEE carriers per population Number of Passengers per Population, ,40 1,20 1,22 1,00 0,80 0,60 0,40 0,52 0,53 0,33 0,20 0,00 0,11 airbaltic CSA Estonian Malev LOT 15

16 RIX market is growing despite economy slowdown GDP growth rate and airbaltic passenger growth rate in Latvia (% change on previous year) GDP growth airbaltic RIX growth 16

17 Airline routes can be managed in two ways 17

18 Development of a transfer-hub transforms the risk-profile Network model allows more products Enables capacity to be allocated where demand (or yield) is the highest Number of Routes 2 Maximum number of markets served Point to Point 4 Transfer Hub 6 Minimises dependence on individual markets, economies, currencies It needs Critical mass Attractive pricing A strong and reliable brand Strong operational capability Efficient hub ,480

19 airbaltic network model enjoys unique advantages Strategic location on northern and eastern edge of Europe geographically efficient connections for significant markets open access to markets in the EU favourable access to regulated markets in Russia and its former territories Weak competition in neighbouring regions flylal went bankrupt in January 2009, Estonian struggling to survive RIX can deliver 25-minute International-International connection times amongst the shortest in the world Strong management focus on developing the transfer model 19

20 Contents airbaltic Story Baltic Market Our future 20

21 airbaltic wants to become dominant in the Baltics and use Riga as the hub airbaltic plans to strengthen its dominant position in the Baltics and Riga s role as a major transportation hub in the Nordic region: RIX as Northern hub VNO and TLL as feeder traffic and core network (up to 5 destinations on profitability basis, e.g. CPH, STO) keeper Introducing low risk flights to Kaunas, Tartu and Palanga help us to fragment the traffic Estonian Air s strategy of being boutique airline will help us capture more share 21

22 Fastest route between East and West with quickest guaranteed connection time 22

23 Thankyou!