Mapping and benchmarking of the aviation sector in Denmark. Deputy Permanent Secretary of State Hakon Iversen
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1 Mapping and benchmarking of the aviation sector in Denmark Deputy Permanent Secretary of State Hakon Iversen
2 Agenda 1. Background: Aviation policy strategy for Denmark 2. Mapping and benchmarking of the aviation sector 3. Link to other parts of the strategic work 4. Mobilization and inputs from the participants Page 2
3 1. Background Initiation of the aviation policy strategy The Danish government has established an inter-ministerial working group with the as chairman. The main focus is to clarify the preconditions to improve connectivity between Denmark and the rest of the world, as well as the connectivity within Denmark by air. The inter-ministerial working group is to report by early Page 3
4 1. Background Why is an aviation policy strategy important? It is well-documented that international connectivity and efficient flight connections is essential for the Danish economy. However, good connectivity does not come naturally. Relative to the size of the Danish population, Denmark has historically been oversupplied with good flight connections. In order to keep a high level of connectivity, efficient and competitive airports and airlines are important. Page 4
5 2. Mapping and benchmarking Purpose Purpose: To identify core strengths and challenges that are important for airlines in choosing to establish and maintain connections to and from Danish airports. The main focus is to maximize accessibility and ultimately maximizing the socio-economic gains. The analysis can be subcategorized into four subtasks. Page 5
6 2. Mapping and benchmarking Four subtasks in the analysis Subtask 1: Mapping the decisions made by different airlines in choosing route network and slots. Questions: 1) What are the key decision criteria for network planning with focus on airport-specific parameters? 2) What is the relative importance of the various decision criteria by market segment? Page 6
7 2. Mapping and benchmarking Four subtasks in the analysis Subtask 2: Mapping of Copenhagen Airport's marginal production costs caused by changed service/capacity level and assessment of the impact on airlines' demand. Questions: 1) What are the marginal production costs for the changed service and capacity level? 2) What is the sensitivity of network planning (in different segments) to changes in the level of both airport performance and the level of airport charges? Page 7
8 2. Mapping and benchmarking Four subtasks in the analysis Subtask 3: 1) Benchmark of Copenhagen Airport: Aeronautical service levels and capacity. Service levels for passengers (waiting time at check-in, at security, passenger density, and-flow). 2) Benchmark of other major Danish commercial airports: Traffic programme/accessibility. Financial economy, productivity and investment plans. Economic and quality conditions for airlines. Page 8
9 2. Mapping and benchmarking Four subtasks in the analysis Subtask 4: Mapping and financial analysis of airlines operating in Denmark and evaluation of the regulatory framework. Questions: 1) Which airlines operate in Denmark, and how can they be characterized (activities, size, growth etc.)? 2) What is the financial efficiency and productivity? 3) Which regulatory and economic framework conditions are airlines subject to in Denmark, and how do these differ from similar conditions in other Northern European countries? Page 9
10 3. Connections to other parts of the strategic work The analysis will focus on passenger traffic, which also take information concerning "belly cargo into account. Pure cargo aircraft operations is included in other parts of the strategy work. The results are used in a socio-economic analysis of the aviation sector in Denmark. Page 10
11 4. Mobilization and inputs from the participants Mobilization of airlines and airports is essential for the analysis to achieve the required quality. QVARTZ and Copenhagen Economics will submit a questionnaire and will contact the airlines and airports directly. The analysis is expected to be completed by the summer of 2016 with the aim of being included in the strategy work in the second half of Participating partners can provide data and information to QVARTZ and Copenhagen Economics confidentially. MoT will not have access to the raw data material. Page 11
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