ETAG Update on Edinburgh Airport

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ETAG Update on Edinburgh Airport
Gordon Robertson
27 April 2011
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Edinburgh Airport Inspiring Journeys

• Edinburgh Airport is the largest airport in
  Scotland, handling 8.6 million passengers in
  2010.
• 120 destinations served in Summer 2011
• 18 new services commencing in Winter 2010/11 and
  Spring 2011
• 48 of passengers are on International flights,
  up from 27 in 2005
• 70 of passengers are Leisure up from 57 in
  2005
• Edinburgh is a major destination with excellent
  two way flows

60 of Scotlands population live within one
hours drive of Edinburgh Airport. Source
Office for National Statistics (2010)
Edinburgh is the largest tourist market in the UK
after London. Source VisitBritain (2010)
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Todays Airport

• Main facilities capable of accommodating over 12
  million passengers per annum following 40m
  development
• Substantial investment across the campus.
• Passenger traffic has grown by 13 over the past
  five years compared to a decline of 8 over the
  period for other Scottish airports
• Weve increased market share within Scotland from
  around 36 to around 41
• Total passengers numbers have increased by 286
  since 1991

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Edinburgh Airport passenger and airline mix
Passenger numbers have increased 57 between 2000
and 2010 Around a third of Edinburgh passengers
are non UK double the number in 2005
easyJet is now the airports largest airline with
2.1million pax in 2010
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Origin of passengers using Edinburgh Airport
Nationality of EDI passengers share of total passengers Passengers
UK 68.8 6,192,000
Non UK 31.2 2,808,000
EU 18.2 1,638,000
North America 7.6 684,000
Other Europe 1.7 153,000
Australasia 1.7 153,000
RoW 2.0 180,000
Total 100 9,000,000
Source Edinburgh Airport Profiler survey, year
ending September 2010
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Top 7 non UK passenger nationalities
Top 7 non UK nationalities using EDI market share Passengers
US 6.0 540,000
RoI 3.6 324,000
Germany 3.5 315,000
France 1.7 153,000
Australia New Zealand 1.7 153,000
Canada 1.1 99,000
Spain 1.2 108,000
Total 100 9,000,000
Source Edinburgh Airport Profiler survey, year
ending September 2010
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Origin of UK based passengers

• Edinburgh and Glasgow have similar sized UK
  markets
• Although Edinburgh has more passengers than
  Glasgow, 71 are UK based, while 88 of Glasgows
  passengers are living in the UK
• Glasgow currently has around 700k pax from the
  Edinburgh catchment area while Edinburgh has
  around 250k from the Glasgow catchment area

GLA Share Actuals
Glasgow City 21 1,354,554
South Lanarkshire 7 442,725
Renfrewshire 7 428,819
North Lanarkshire 6 357,977
North Ayrshire 3 188,897
Argyll and Bute 3 180,382
East Dunbartonshire 3 168,376
South Ayrshire 2 153,578
East Ayrshire 2 138,251
Fife 2 135,517
Other 44 2,790,924
Total UK based Total UK based 6,340,000
EDI Share Actuals
City of Edinburgh 23 1,475,285
Fife 8 509,667
West Lothian 7 420,608
East Lothian 4 229,510
Falkirk 3 203,654
Perth and Kinross 3 172,530
Midlothian 3 165,932
Dundee City 2 148,373
Stirling 2 141,630
Glasgow City 2 127,536
Other 44 2,795,276
Total UK based Total UK based 6,390,000
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Edinburgh Airport potential for growth

• The population centres of Scotland are shifting
  from Glasgow and the towns around it towards
  Edinburgh and the surrounding area
• The chart opposite shows this shift in population
  between 1999 and 2009
• The populations of City of Edinburgh, Falkirk,
  Perth Kinross, West Lothian and East Lothian
  all grew by more than 5
• 69 of EDI pass already originate from these
  areas
• As the population in the regions around EDI
  grows, the demand for travel direct from EDI will
  increase as the airport becomes the local
  airport for more of Scotlands population

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Edinburgh Airport passengers - SEG

• Air travellers are naturally of a higher
  demographic than other types of traveller
• 48 of EDI passengers are in the A/B
  socio-economic group
• A third are C1
• Business travellers tend to come from higher SEG
  groups than Leisure travellers
• 56 of Business travellers are A/B
• 38 of Leisure travellers are A/B
• There is an overlap between Business and Leisure
  travellers
• Air travellers tend to be affluent. They value
  convenience, and expect a high level of service
• Need to offer a high end mix of retail outlets
  and catering

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Edinburgh Airport passengers - age

• Propensity to travel is closely related to life
  stage
• 25-34 year olds and 45-54 year olds are the two
  largest age groups of EDI passengers
• 25-34 years olds have just started their careers
  and have the time and money to spend on travel
• Although 45-54 years olds are the age group most
  likely to travel on Business, they also travel
  more on Leisure as they have more discretionary
  income and may have older children so their
  ability to travel is less constrained than those
  with younger children

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Edinburgh Airport passengers mode of transport
Business Leisure Total
Taxi/ minicab 33 18 22
Bus/coach 14 31 26
Private car - dropped off 18 29 26
Private car - parked 26 16 19
Other 8 5 6
Total 100 100 100
Total terminating pax (000s) 2,649 6,181 8,830

• Over a quarter of EDI passengers arrive at the
  airport by bus
• An equal number are dropped off by friends or
  relatives
• A fifth of passengers arrive by taxi/minicab
• Business passengers are more likely to arrive by
  taxi or to drive and park at the airport
• Leisure passengers are more likely to travel to
  the airport by bus or be dropped off
• Drop off facilities at the airport have been
  improved this year
• How can we encourage more business passengers to
  drive to the airport

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2010 bruising but rewarding
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An update on the bruises

• Snow resilience
• Unprecedented levels of snow
• Update snow orders to shorten length of closure
• Scandinavian visit
• Successes Twitter, customers
• Collaboration with government, stakeholders and
  peers

• New drop off facilities
• Congestion slashed
• Capacity increased from 18 to 80
• Good customer feedback
• Improvement in passenger experience
• Reduction in pollution

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and the rewards

• 26 new routes added in 2010 18 in 2011
• 42m departure lounge extension and new security
  hall added
• Over 150 jobs created
• Named as being in the top 5 in Europe for
  customer service
• Reaching 5th largest airport in the UK (retain it
  in May)
• Welcoming the Pope to the UK
• Team tested, but proven to be resilient

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Where now?

• Need to look beyond Scotlands Airport of Choice
• Edinburgh deserves a leading European Airport
• Our strategy is to achieve this in 5 years
• Edinburghs competition is not Glasgow
• Our competition lies across Europe

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How do we get there?

• Airlines
• Our customers are not passengers
• We need to understand airlines and their
  requirements to build our range of routes and
  destinations
• Service
• Destination is not enough
• Service is a key differentiator for airlines
• Punctuality, attitude, approach
• Understanding
• Commerciality
• Very forward looking, very aggressive on costs
  Michael OLeary, Ryanair
• Reputation as an airport with which to do
  business

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What will it look like when we get there?

• A sustainable network which connects Scotland to
• European business cities and regions
• Major hub airports Europe and beyond
• Long haul destinations with sufficient point to
  point traffic
• Domestic cities and regions

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Our Masterplan

• Up to 2020
• 12.3m passengers
• Growth within existing boundaries
• Responsible and measured development

• Up to 2040
• 20m passengers
• Need to develop airfield and campus beyond borders

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Potential Ash Clouds on the Horizon

• Air Passenger Duty
• Airport Charges Directive
• Edinburghs resilience
• Government support for tourism
• Competition Commission

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