Ensuring long-term management in a dubious environment

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Janel Ross
7 years ago
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1 1 Ensuring long-term management in a dubious environment

2 2 Preparing for the airport's takeoff

3 Air traffic growth continues to increase, but is shifting towards Asia and emerging countries Global air traffic volume doubles around every 15 years 3.1 billion PAX in 2013 around 5* billion PAX forecasted for 2030 Source: ADP / OACI 2013 * More than 80% of traffic occurs within the regions Intra-region flow: Asia remains the region with the highest growth with +8.4% per year vs. +4.7% in Europe and +3.9% in North America, which are mature markets Inter-region flow: The most significant flow is between Europe and Asia, made between the two regions but also more and more through the Middle East Amérique du Nord Europe ,9% Atlantique nord ,7% ICAO, Airbus, Boeing consensus; average global GDP growth rate from 2011 to 2013 around 3% (OECD, IHS consensus etc.) 60 Amérique Latine ,6% Afrique Moyen-Orient 57 Source: ADP/ Airline Industry Forecast, , October 2013, IATA ,4% < traffic (in million PAX) Intra-region traffic CAGR Asie-Pacifique 3

4 Economic growth and urbanisation are producing new economic, cultural and political areas This is primarily driven by large cities in emerging countries and the rise in power of "secondary" cities, mainly in Asia/China Their contribution to global growth is estimated to be around 40% by 2020 compared to less than 30% today * 16 emerging cities in the TOP 30 most economically strong cities LC large city EC emerging city Source: ATKearney Global Cities Index and Emerging Cities Outlook, 2014 Source: The Economist, Benchmarking global city competitiveness, 2012 Global Cities Index = multi-faceted attractiveness index based on economics, culture, politics, etc. 4

5 Airports and hubs, which provide connectivity to the rest of the world, are an essential link in developing cities European airports generate approximately 675 billion annually, or 4.1% of Europe's GDP, and employ around 12.3 million people Paris-Orly, Paris-Charles de Gaulle and Paris-Le Bourget contribute to the economic and social development, as well as the attractiveness, of the region and France on an international scale It's the front door into France for international passengers and freight On a global scale, airport activity generates more than 340,000 jobs and 30 billion value added Euros Contributes up to 1.7% of France's GDP For example The aviation industry generates around 4% of the GDP in The United Kingdom, 3.2% in The Netherlands and 28% in Dubai London-Heathrow makes up 1.4% of The United Kingdom's GDP 5

6 The urban world in 2000 Bright lights, big cities in The Economist, Feb 4th

7 The urban world in 2030 Bright lights, big cities in The Economist, Feb 4th

8 8 The old monopoly days

9 Traditional companies are now being forced to restructure due to pressure from Gulf companies and low cost airlines With growth rates upwards of 15% per year, Gulf companies are controlling the market growth for Europe-Asia long-haul flights The market share of low cost airlines on intra-eu airline traffic increased 14 points in eight years, achieving 45% of the market in 2013 Source: ADP / SIMCA-DIIO APG May 2014 Europe-Asia Market Source: ADP / SIMCA-DIIO APG November

10 Regions and airports share the same strategic challenge of controlling the global growth Increasing competition even within alliances The alliances, formed by European airline companies with global ambition, optimise their networks through the comparative advantages of their different bases The challenge for Aéroports de Paris is to make the Paris market and hub more attractive to international passengers and freight traffic By improving the competitiveness of Paris airports By developing destinations and frequencies with direct flights to first and second rank cities with connections at Paris-CDG with indirect flights, preferably through other international hubs for specific markets without a direct flight service 10

11 11 A world leader in airport design, construction and operations

12 Strategy for a conquering Group Be the leading Group in airport design, construction and management Optimise Attract Expand Guarantee operational performance Strengthen the performance of organisations Increase financial performance Become the preferred choice of our customers Stimulate employee development Promote the Group's brand Be a solutions integrator Grow with the territories Conquer new markets Take full advantage of our resources Aim for excellence Maintain and share sustainable growth 12

13 13 Optimise airport capacity and resources

14 ADP has a unique system of airports in Paris with a current capacity of 110 million passengers per year Paris - Le Bourget Busiest European business airport Industrial and aeronautical cluster Maintenance, equipment and aircrafts interior design Congress center International Paris Air Show every 2 years Paris - Orly 13th busiest European airport 28M passengers in 2013 Runway capacity: Cap of 250,000 ATM* per year (92% utilized) Curfew from 11:30pm to 6:00am Terminal capacity: 27M passengers Project to increase up to 32m passengers in 2019 * Air Traffic Movements Paris - Charles de Gaulle 2 nd busiest European airport, 8 th worldwide 62M passengers handled in 2013 Air France and FEDEX hubs Runway capacity: no constraint 4 runways (2 sets of parallel runways), unique in Europe 117 ATM/hour at peak Open 24/7 Terminal capacity: no constraint until 2023/24 80M passengers 14

15 ADP assets offer a medium and long-term growth potential Sufficient capacities at Paris-CDG to handle traffic growth: Runways: no constraint on the long-term Two independent sets of parallel runways 117 ATMs per peak hour Terminals: no need of additional terminal until 2023/2024 Hub reconfiguration Refurbishment programme for oldest terminals Northern runways Southern runways A privileged geographic location Potential of diversification activities still strong : Retail: Interim target: Sales/PAX of shops in restricted areas of 19 in 2015 long-term target: becoming the best player in Europe for travel retail Real Estate: Interim target: developing 320,000 to 360,000 sqm of projects by 2015 Initiate projects with guaranteed profitability, including within Cœur d'orly project 15

16 Paris-Charles de Gaulle Airport Map 16

17 Paris-Orly Airport Map 17

18 A new building connecting West and South 18

19 New departure lounge to the east of the South Terminal 19

20 20 while attracting record number of passengers

21 On the road to attract record number of passengers Proactive research of traffic, especially long haul and connecting one 16 new airlines including in 2014 : Jet Airways, Hunnu Air, Air One 10 brand new or reinforced destinations in 2014 including: Tokyo, Brasilia, Cayenne,... Increasing aviation capacities 4 additionnal A380 in 2014 : Air France, Korean Air, Emirates and Qatar Airways A new tariffs structure Roissy - Paris CDG : from 63,8 million passengers in 2014 to 75,5 million in 2020 Paris - Orly : from 28,9 million passengers in 2014 to 31,5 million in

Economic impact of airport: the Roissy Charles de Gaulle airport example

Economic impact of airport: the Roissy Charles de Gaulle airport example The Roissy Charles de Gaulle airport Today : Roissy CDG is the largest transport hub in Europe N 2 cargo airport in Europe, after