Gnther Matschnigg, Senior Vice President Safety, Operations

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Airline Needs
Airport Operations Partnership for
Change Brussels, 27-29 October 2004
Günther Matschnigg, Senior Vice President Safety,
Operations Infrastructure
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Airline Needs

• Safe, efficient operations

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Airline Needs

• Simplify the business
• Improve Safety and Security
• Rebalance the Value chain
• Leadership from governments
• Manage Capacity demand
• Partnership

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Past Crises

• Y2K
• 11 September 2001
• Security/Terrorism
• War in Afghanistan
• War in Iraq
• SARS

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Current Crises

• Security
• Rising fuel prices
• Lack of Airline industry Profit
• What next??

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Volatile!
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Airline Financial Results
Airlines lost 35 billion since 2001
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The Moral of the Story so far . . .
Airlines are desperate for cost cutting and
efficiencies!
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Airline Needs

• Simplify the business
• E-tickets
• Radio frequency baggage tags
• Bar coding technology
• Sharing self-service check-in kiosks.

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IATA/Airlines Imperatives
Safety

• Although airlines in financial
• and
• operational crisis -
• Safety remains number ONE priority

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IATA Safety Target - Airline Needs
Reduce the Air Transport Accident Rate Worldwide
by 25 by 2006
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6-Point Safety Programme
Implementation of the IATA Six Point Safety
Program
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Infrastructure Safety

• Runway Incursion Awareness Training
• FAA IATA

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Infrastructure Airside Safety

• Ground Damage Prevention
• Cost industry USD4Billion per year
• New Airport Handling Manual Sections developed
• Passenger Boarding Bridge Operations
• Airside Driving Training
• Foreign Object Damage
• Prevention
• Training Aid for Airside
• Safety produced

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Security Airline Needs

• New security measures
• Globally coordinated
• Operationally effective
• Meet throughput performance targets

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Security Airline Needs

• EU Security Funding
• EC recognition of need for State funding of
  aviation security
• Baggage Re-screening
• avoid where possible set bilateral agreements
• Passenger Throughput
• increase throughput at identified airports in
  alignment with standards

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The Inequitable Value Chain
Industry Imbalance
Airlines
Leasing
Cater-ing
ATS
Aircraft manu-facturer
Ground Handling
Airports
(p.a. on a 10 year basis)
Price increase
Analogous interest development
3.5
2
6.7
3
3.2
-1.7
ROS Threshold
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15
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11-14
10-13
Full cost recovery
US35 billion loss over 3 years
0
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Profits what profits?(or who profits?)
we fly they profit
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Government - Airline Needs

• Governments to resolve institutional problems
• Security is a national issue
• Insurance
• Liberalisation

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Success through Partnership

• Partnership Approach
• Increased efficiency, reduced costs
• no compromise on safety
• Benefits for our joint customers
• passengers shippers

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Fuel Savings Campaign-Partnership approach

• Each partner has a role to play for the success
  of our industry
• Airlines
• Manufacturers
• Airports
• ATS Providers
• Governments

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FUEL ACTION CAMPAIGN 2004
Jet Fuel price has more than doubled in the last
18 Months!!
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FUEL ACTION CAMPAIGN 2004
Why?
Jet Fuel 75 BN per year
Jet Fuel 70 BN per year
One Month!
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FUEL ACTION CAMPAIGN 2004
IATA Action Line 1 Operations
1. Fuel Consumption Pilot Best Practice Dispatch
Best Practice Engineering Best Practice ATC Best
Practice
TARGET USD 1.1 BILLION/YEAR
2. Reserve Fuel World Best Practice
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FUEL ACTION CAMPAIGN 2004
IATA Action Line 2 Infrastructure
1. Route Improvements All Regions Large AND
small improvements
TARGET USD 2 BILLION/YEAR
2. Airports Hong Kong Mexico City NADP
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FUEL ACTION CAMPAIGN 2004
IATA Action Line 3 Awareness
1. Targeting ANSPs Save One Minute
TARGET USD 1 BILLION/YEAR
2. Airport Collaboration
3. Training
4. Fuel Awareness
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Future Challenges Market Growth
Air Traffic Growth
Traffic - RPKs (billions)
Includes Domestic and Intra-European traffic,
scheduled and non-scheduled
Source ITA, Airlines annual reports, IATA Gabi,
Global Insight
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Domestic Pax 297 from 2002-16
International Pax 233 from 2002-16
Airports Authority of India
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Short-Term Forecast Arrivals/Departures/Domestic
2005
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Airline Needs - Conclusion

• Simplify the business
• Improve Safety and Security
• Rebalance the Value chain
• Leadership from governments
• Manage Capacity demand
• Partnership

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Thank You
Airline Needs
Airport Operations Partnership for
Change Brussels, 27-29 October 2004
Günther Matschnigg Senior Vice President Safety,
Operations Infrastructure