The italian opportunity 25 MARCH 2013 1
Conten tents ts 1. easyJ yJet t in Ita taly 2. easyJet’s opportunity in Ita taly 3. Why y Li Linate te / Fiumicino ino is impor ortan tant 4. Sum ummary 2 2
Easyjet in italy Frances Ouseley Country Director Italy 3
easyJet - 15 years in Italy 1998 2004 2006 2009 2013 1 st st flig ight ht to Italy aly 1 mill llio ion n Malp lpens ensa a Fiu iumici icino o Linat nate e / passeng enger ers Base e Base e Fiu iumici icino o carried ied open ened ed open ened ed route ute • 24 aircraft in Italy • 2 bases • Milan Malpensa and Rome Fiumicino • 12.5 m passengers in 2012 • 140 routes from Italy • 870 employees • Positive and improving customer perception 4 4
Italy is a significant market for easyJet easyJet network 1 European market Million seats Million seats % weight on 2011 (OAG) Jan-Dec 2012 easyJet network 250 120.0% 13% 10 14% 12% 9 12% 100.0% 200 8 10% 7 80.0% 150 6 8% 60.0% 5 5% 5% 5% 4% 4% 4% 4% 4% 6% 100 4 40.0% 3 4% 2 50 20.0% 2% 1 - 0% 0 0.0% Spain-UK Germany-UK UK- Dom Italy- Dom France-UK France- Dom UK-Italy France-Italy Swiss-UK UK-Nether UK Germany Spain Italy France Focus on connecting Italy with the rest of Europe 1 Top 10 capacity flows of easyJet (OAG Jan-Dec 2012) – millions of seats 5 5
easyJet has built a strong position in Italy Strengthening the international network… … while returns keep improving Capacity in Italy Contribution per (network point) block hour 16 1,400 1,300 14 1,200 12 1,100 10 1,000 8 900 6 800 4 700 2 600 0 500 2008 2009 2010 2011 2012 • Capacity has increased from 8m seats in 2008 to 14m seats in 2012, a CAGR of 17% • Returns (Contribution Per Block Hour) have increased by a CAGR of 10% over the last 4 years 6 6
Focused on higher yielding airports in Italy Main airports in Italy Short haul passenger traffic from Italian airports 35 90 Average Market Fare in Italy € 1 MXP VRN BGY VCE 80 30 TRS Passengers 1 70 LIN 25 BLQ TRN 60 GOA 20 FLR 50 AOI PSA 40 15 30 PSR 10 FCO 20 5 BRI CIA 10 OLB BDS NAP 0 0 AHO Milan Rome Venice Catania Naples Palermo Bologna Cagliari Pisa Bari PAX Avg fare SUF easyJet is CAG CRV PMO • REG #1 in Milan Malpensa TPS CTA • #2 in Rome Fiumicino, Venice, Naples, Palermo and others 7 7 1 PaxIs. 2011, Domestic and European flows from Italian Airports
Significant expertise in Italy Frances Ouseley Giuseppe Careddu Giuseppe Bonetti Nicola Martino Matteo Cecconi Country Director Head of Sales RGM Ground Ops Pilot Manager Route Manager Gianluca Murari Lorenzo Lagorio Noemi Frisoli Marco Picardi Daniele Bordogna Cabin Services HR Business Marketing Country Analyst Sales Executive Manager Partner Manager 8 8
Easyjet’s opportunity in italy Frances Ouseley Country Director Italy 9
Where is the opportunity for easyJet now Whilst there are short term challenges with the macro economic environment and with airport charges and taxation increasing, there are opportunities for easyJet in the Italian market 1. Build on strong market share in major catchment areas 2. Focus on business passengers and those with higher disposable incomes 3. Adapt the model to the characteristics of the Italian market 4. Keep on building the brand and differentiating the product Opportunities in Italy focused on major catchment areas and international traffic 10 10
1. Major catchment Malpensa provides platform to drive returns areas • Single terminal • Reduce cost base • Dedicated easyJet check-in and gates • Crewing • One single access Crew Room • Improved flexibility • Operational efficiency • Above network average turn around time • On time performance (87% in FY’12) • Refuelling initiatives • Lower aircraft costs • A320s mix enables short and mid-haul flights • High utilisation of each aircraft • CSAT • 5 percentage points improvement in the last 12 months 11 11
Strong international network supports the 2. Business passengers business passenger opportunity Business passengers - network • easyJet’s share of business passengers is increasing in Italy • Linate / Fiumicino provides opportunities not just because it is a business route but it establishes easyJet’s credibility as an airline for business passengers • Continue to increase share of business/ high yield passengers through: • targeted deals with TMC and corporate accounts • GDS distribution 12 12
3. Adapt to Italian Italian passengers are late bookers market Different booking patterns in Italy • Italian passengers book later Booking curves 200 to 0 days to departure than passengers in other markets • Overall company average is % of bookings 26-27 days whereas the average for Italy is closer to 20 Days before travel Opportunity to reshape the yield curves to focus on late bookers 13 13
4. Building Brand awareness increasing in Italy brand Spontaneous - other mention Spontaneous - 1st mention Percentage (%) 35 30 32 32 26 21 24 18 15 22 16 15 14 14 12 10 6 4 Dec-10 Oct-11 May-12 Dec-10 Oct-11 Feb-12 Dec-10 Oct-11 Oct '12 Italy UK Switzerland 14 14
4. Building Improving perception in Italian market brand Spontaneous Brand Awareness • Awareness increased considerably in the first 6 months of 2012 • Leisure Consideration (+11pp) • Business Consideration (+12pp) Brand Consideration Source GFK Brand Trackers 2007-2012 15 15
4. Building Build Brand through campaigns… brand • First TV advert launched last October 2012, with a second campaign in March 2013 • A consistent brand presence in main catchment areas and online 16 16
4. Building …by receiving significant press coverage … brand • Leverage the Linate / Fiumicino win to position the brand in a more credible way towards business passengers • Dedicated advertising campaign launched in Rome and Milan, one promotional and one business 17 17
4. Building …by targeting a higher yield target … brand As a result of our partnership with Rossignol, easyJet is present in all the key mountain resorts in Italy, promoting the brand to a higher yield segment 18 18
4. Building …and being present in large cities brand easyJet was present in the key shopping streets of Milan and Rome in the days before Christmas 19 19
4. Building Focused and targeted new advertising campaigns brand Exploit new CRM and digital capabilities to target relevant passengers and deliver an easy, engaging and personal experience at every stage of their journey 20 20
Why linate / fiumicino is important Frances Ouseley Country Director Italy 21
CHE COSA SIGNIFICA ? In linea con la strategia Europea di presenza sui flussi 1 principali e su tutti i segmenti di clienti Evoluzione naturale del nostro posizionamento in Italia : easyJet 2 come l’Alternativa moderna di Convenienza e di Qualita’ Un’offerta facile, accessibile e veloce, con tutta la flessibilita’ per i 3 viaggi d’affari . Un’offerta per tutti ! 22 22
Why is the route important Important achievement for easyJet and the Italian air traffic market: the liberalisation of the last monopoly route in Europe • Long and complex process • legal procedure started in December 2011 and lasted 14 months • 5 airlines made submissions for the right Dedication to operate the route • easyJet was awarded the route as the airline most likely to offer a real long term Sustainability ’ competitive alternative, on a dense business route, to the benefit of all customers Credibility 23 23
Extensiv tensive e press ess cover erage age in Italy ly 24 24
Easy, y, affor ordab able le, , fast, t, flex exib ible le – no comp mplexit lexity Convenience + Speed’ + Flexibility easyJet Easyjet Tailored Plus card Plus card offer according Flexible fares to the needs easyJet easyJet Easyjet Flexi of the mobile mobile mobile corporates Prices for all Prices for all Prices for all Prices for all (Standard fares) (Standard fares) (Standard fares) (Standard fares) In partnership with TMCs • Non flexible fare • Smartphone app • Fast track • Fast track • Dedicated seats • Dedicated seats (first row and extra leg seats) (info, bookings, • Priority boarding seat choice) (not first row) • Priority boarding • Unlimited changes (up to 2 hours before • Annual cost 180 € departure) 25 25
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