The importance of regional aviation to the UK

European Regions Airline AssociationSimon McNamara

Contents

Overview of regional aviation Slot allocation developments The role of PSOs

What is ERA?

What is ERA?66 airlines

39 airports

in

26 countries

What is ERA? Average aircraft size =

70 seats Average flight time =

1hr 20 mins 70% operations to/from

major hubs 2 out of every three

landings are at regional airports

60% of traffic is business related

35% of traffic is interline

Traffic mix in Europe

What is ERA?

Year 2003 data 78+ million passengers 2m flights 1200+ aircraft

UK facts ERA members provide:

298 daily flights starting or finishing in the UK

access to 68 points within the UK and mainland Europe

Approx 28m passenger per year move to/from and within the UK using ERA members

376 airports in Europe are solely served by regional aviation

Data source: OAG

Europe – the realityEnlarged EU - population distribution

Capitals41m

Regions412m 9 out of 10

EU citizens live in the regions

Enlarged EU - population distribution

Capitals41m

Regions412m

Capitals41m

Regions412m

… a significant justification for the liberalisation of air

transport is to stimulate the social

and economic development of

Europe’s regions…

Preamble to the ‘Third Package’

Europe - the benefits fromintra-European air transport

Air transport contributes around €370bn per annum to the enlarged EU economy, about 4% of Gross Domestic Product

Air transport contributes around €370bn per annum to the enlarged EU economy, about 4% of Gross Domestic Product

Europe - the benefits fromintra-European air transport

International accessibility for businesses in Europe’s regions

Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)

International accessibility for businesses in Europe’s regions

Job creation in the regions (1 airline or airport job creates 5-7 jobs in the local community - Erasmus University Study)

Slot allocation developments

2nd round amendment of EU regulation on slot allocation is one of ERA top priorities

The initial ideas developed by consultants on behalf of the EC have to potential destroy regional access to congested airports

Slot allocation regulation

EC has completed a study to ‘examine the feasibility and likely impact of using market mechanisms to allocate slots at congested EU airports.’

Examines mainly Slot trading Higher prices (ie selling slots) Auction of pool slots

Proposal possible before end 2004 Implication of study on regional airlines:

Larger volume of pax through apts Larger aircraft Regional services withdrawn from

hub airports Shift of services from the peaks

Passenger volume is regarded as a key driver for airport success

Slot allocation regulation

PSOs

EC is looking at PSOs as part of its announced review of the “3rd package”

A number of interested parties (including airlines) think the system is being abused

Timing of action by EC is unknown but an amendment could make PSO use at congested airports even more restrictive

Other PSO issues

ERA supports PSO PSOs benefits communities and

regions first - NOT airlines ERA support regional authorities

having more power to approve and finance PSOs

Should slots be reserved for PSOs?

This is the most critical question for groups interested in regional access to congested airports

Until the slot ownership issue is addressed slots cannot be reserved

Ie if a state/regional government does not own a slot how can it reserve it?

Should slots be reserved for PSOs?

A radical review of the slot allocation regulation will make the subject of

reserving slots for PSOs meaningless

The Baker Suite, Fairoaks Airport, Chobham, WOKING, Surrey, GU24 8HX, UKTelephone: +44 (0)1276 856495 Fax: +44 (0)1276 857038 E-mail info@eraa.org, Web site www.eraa.org and www.fly-safely.org

The importance of regional aviation to the UK