India and Europe are getting closer The opening skies over India

Transcription

1 Europe are gettg closer The openg skies over Werner Heesen GM Passenger Sales & Director South Asia Lufthansa Passenger Airle Berl, 8 March 2006

2 s travel potential is tremendous 17% the world s population. 0.02% the world s air Over 120 million people as potential air The ma streams to the West are gog to North America Europe. Germany is not yet known accepted as tourist destation 17% 5% N America Europe w/o FRG FR Germany Others 48% 30%

3 The Skies over are gradually openg New New Policy Policy Guideles Guideles by by the the Mistry Mistry Civil Civil Aviation Aviation Gradual Gradual openg openg the the market: market: SAARC SAARC countries, countries, ASEAN, ASEAN, UK UK,, Open Open Sky Sky Policy Policy US,) US,) France. -France FRG FRG (April (April 2005) 2005) removal removal royalty royalty agreements agreements other other ms ms payments payments by by eign eign airles. airles. Support Support National National Carriers Carriers AI AI und und IC IC by by grantg grantg additional additional funds funds fleet fleet expansion, expansion, modernization. modernization. Privatisation/merger Privatisation/merger Air Air planned. planned. Go Go ahead ahead private private carriers carriers : : Jet Jet Airways/Air Airways/Air Sahara, Sahara, Air Air Deccan, Deccan, Kgfisher Kgfisher Airles, Airles, Spice Spice Jet, Jet, Go. Go. Major Major expansion expansion plans plans domestic domestic ternational ternational operations. operations. Extension Extension modernization modernization existg existg ma ma airports, airports, construction construction new new regional regional airports, airports, privatisation privatisation airports airports acceptance acceptance eign eign vestment. vestment. Supportg Supportg measures measures to to upgrade upgrade to to modernize modernize frastructure frastructure Delhi, Delhi, Mumbai, Mumbai, Bangalore, Bangalore, Hyderabad Hyderabad New New cargo cargo hub hub Nagpur. Nagpur.

4 The frastructure is limitg the growth aviation dustry Growth Growth opportunities opportunities The The economic economic framework framework remas remas positive. positive. 2004: 2004: Domestic Domestic 25%, 25%, Intercontental Intercontental to to Europe/North Europe/North America America 8-10% 8-10% 2005: 2005: Record Record overall overall growth growth 20% 20% 2006: 2006: 10% 10% Infrastructure Infrastructure Airports Airports Mumbai, Mumbai, Delhi Delhi Bangalore Bangalore have have reached reached capacity capacity limits. limits. All All Metro Metro airports airports have have only only one one runway. runway. Clash Clash terest: terest: Increasg Increasg dem dem tercontental tercontental domestic domestic same same slots. slots. Worseng Worseng conditions conditions start-up start-up carriers. carriers. The airport frastructure determes the growth rate. Thus, only limited capacity creases possible up to The new boom will start latest by 2010.

5 Wter 2005/2006: Ma capacity growth Delhi Bangalore Region SO'05 (Weekly seat capacity) Wter'05 (%age c. vs. SO'05) SO'06 (%age c. vs. SO'05) De lhi EU 24, % 17.87% NA 1, % % TTL 26, % 34.77% M um bai EU 29, % 10.68% NA 8, % 0.00% TTL 37, % 8.42% Che nnai EU 6, % 19.82% NA % 0.00% TTL 6, % 19.82% Bangalore EU 1, % % NA % 0.00% TTL 1, % % Hyde rabad EU 2, % 29.55% NA % 0.00% TTL 2, % 29.55% Total EU 64, % 22.11% 5 Metros NA 9, % 48.60% TTL 74, % 25.60%

6 has her own rules: Success Factors. Gateways Trust s sustag growth Contuity, sustag presence commitments Delhi requires special service concepts suitg needs Open md co-operations Patience Mumbai Hyderabad ( Chennai Bangalore

7 Lufthansa The leadg European Airle Lufthansa started operations 1959 from Kolkata with twice-weekly services. Gateways In April 2006 Lufthansa will operate 42 flights between Germany a week. Delhi Today, Lufthansa is the leadg European passenger airle. Mumbai Hyderabad Chennai Bangalore

8 (Frequencies per week) Lufthansa Capacity Development Average capacity crease % p.a. Daily flights to all Lufthansa destations 2006 Twice daily connections from Delhi (Frankfurt/Munich) New destations will be explored 1959 CCU Ops 2/ DEL Ops 1/ CCU ops Cancelled. BOM Ops Started 4/7 DEL 3/7 DEL 2/7 DEL 4/ MAA Ops 2/7 BOM 5/7 DEL 5/7 MAA 3/ HYD Ops 3/7 (FRA-HYD-FRA) 2004 DEL Ops 10/7 (MUC-DEL-MUC) 2001 BLR Ops 3/7 DEL 7/7 DEL 6/7 DEL 10/ HYD 7/7 MAA 6/7 BOM 7/7

9 Lufthansa Offers Special Features ethnic Passengers Lufthansa s Lufthansa s route route planng planng follows follows the the streams streams from/to from/to : : Best Best network network connections connections to to Europe Europe & North North America America Flight Flight attendants attendantson on all all routes routes Welcome Welcome Service Serviceat at Frankfurt Frankfurt Airport Airport (Hdi, (Hdi, Tamil) Tamil) In-flight In-flight Service Servicedesigned to to suit suit needs needs (Meals, (Meals, entertament entertament program, program, newspapers newspapers & magazes) magazes) Call Call Center Center market market (Gurgaon (Gurgaon January January 2005) 2005)

10 Lufthansa Aviation Group Lufthansa Cargo operates sce 1969 fers today 5 destations 47 frequencies a week. Lufthansa Sky Chefs fers premium caterg stards Bangalore (2001) soon Hyderabad (2005). Globe Ground is hlg Lufthansa s passenger cargo flights. RDM: Lufthansa system s successful jot venture with the Bird Group. Sce February also operatg the Lufthansa Call Center Gurgaon. Lufthansa Lufthansa will will also also represent represent the the German German National National Tourist Tourist Board Board DZT DZT as as from from

11 Lufthansa is prepared the growg market Expansion Gateways Best network from East to West Innovation leadership quality Delhi Special features ethnic market segment Co-operations: Air, Jet Airways Mumbai Hyderabad Chennai Bangalore

12 Outlook Conclusions is is a growg growg market market civil civil aviation aviation Infrastructural Infrastructural limitations limitations until until Important Important policy policy decisions decisions are are made made Big Big Boom Boom expected expected from from onwards onwards Private Private sectors sectors gets gets vestment vestment opportunities opportunities --frastructure frastructure