Traffic Development Policy

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2 Guidelines Strategy The aims at attracting incremental traffic to Genoa airport through: Point to point connections: development of new direct routes to domestic and international airports, including capacity or frequencies increase on existing routes, to guarantee better accessibility to our region. Home Carrier: identification and consolidation of one or more air carriers based at the airport, with the intention of offering connections required by the local catchment area for both business and touristic purposes. Such development is essential to enhance transport services and facilities for our territory and to allow new business development able to contribute to the economic growth of Liguria Region. The incentive system hereafter exposed is conceived to regulate such development according to transparent, fair, non-discriminatory principles, and to private investors requirements, making the best possible use of the Airport infrastructures. Genoa Airport uses only own revenues and own private resources to support this incentive policy, bearing in mind the economical sustainability and the profitability of the single case. Parameters The incentive consists in a pre-fixed amount multiplied by the number of revenue adult departing passengers (depax) taken as valid and responding to the standards required in that case. The incentive amount is ex post, i.e. it is granted after it has been verified that all requirements and obligations pertaining to a specific contract are fulfilled. An additional one-off support may be accorded in case of strategic markets/routes. Duration and Validity The present incentive policy shall be applied to all new contracts effective from 2017/2018 IATA Winter season, provided that the agreement is signed before the beginning of the operations referred to. All existing agreements shall remain valid until their natural expiration date. 2

3 Application cases The present shall be applied in case of: 1. New scheduled routes and traffic volumes 2./3. Incremental traffic on existing scheduled routes (underserved only) 4. Seasonal charter chains and incoming routes 3

4 Incentive scheme 1. New scheduled routes and traffic volumes a) Start-up of new scheduled connections, having at least 1 WEEKLY ROTATION (1/7). NEW ROUTES: airports that are not served with direct scheduled flights. The Carrier is granted incentives per revenue (adult only) departing passenger (DEPAX) Duration of the incentive scheme: up to 5 years. Genoa Airport reserves the right to extend the duration. b) For air carriers with the capacity to offer to Genoa Airport multiannual development plans, thus contributing to the effective growth of airport traffic, the incentive program is structured on minimum volume thresholds and offers a fixed value per departing passenger. 4

5 Incentive scheme 2. Incremental traffic on existing scheduled routes (underserved only, same Carrier) INCREMENTAL TRAFFIC on existing routes: difference between the number of DEPAX from GOA, transported by a single airline to a given airport, in the same IATA season or within a given period of time and the number of passengers transported by the same Carrier within the same period of time during the corresponding previous IATA Season (Summer VS Summer / Winter VS Winter) The Carrier is granted incentives only per incremental departing adult passenger (incremental DEPAX) Duration of the incentive scheme: up to 5 years. Genoa Airport reserves the right to extend the duration. The incentive may vary according to the strategic relevance of the connection and its total traffic volumes OPTIONS: 1 ) Frequencies increase A Carrier already operating the route at GOA increases its schedules by at least 1 weekly rotation (+1/7), as compared with the same IATA season of the previous year, on the same route. Additional activity to be confirmed for the entire IATA season. 2 ) Capacity increase A Carrier increases the amount of offered seats by over 30% on the same route as compared with the same IATA season, as a consequence of aircraft change. If the number of passengers increases only as a consequence of an increased load factor, no incentive contribution will be accorded. Additional activity to be confirmed for the entire IATA season. 5

6 Incentive scheme 3. Incremental traffic on existing scheduled routes (underserved only, new entrant) INCREMENTAL TRAFFIC due to a new entrant: a new Carrier starts operating to an already-existing route, scheduling at least 2 weekly rotations (2/7). In this case Genoa Airport will assess the potential of the route both in terms of potential passengers traffic and profitability and shall be entitled to evaluate whether to recognize the incentive or not according to the strategic relevance of the route and the commercial performance of the already existing route. The Carrier is granted incentives only per incremental departing adult passenger (incremental DEPAX) Duration of the incentive scheme: up to 5 years. Genoa Airport reserves the right to extend the duration. The incentive may vary according to the strategic relevance of the connection and its total traffic volumes 6

7 Incentive scheme 4. Seasonal charter chains and incoming routes New connections, having at least 1 WEEKLY ROTATION (1/7), mainly dealing with the tourists incoming and cruise traffic. In addition to the destinations listed in Attachment A, the contribution could be recognized also to charter flights with countries/destinations not included in any bilateral agreement. The Carrier is granted a marketing contribution at the end of the charter operation. Duration of the incentive scheme: 1 year. Genoa Airport reserves the right to extend the duration. No less than 12 rotations should be operated in the same IATA season The marketing contribution above mentioned may vary according to the strategic relevance of the connection, whether it s operated in peak/no peak hours and it could be increased during Winter IATA Seasons in case of relevant seasonality of the route. 7

8 Terms of application Only carriers with regular certification, not included in black list can access the present incentive program. The incentive program will be applied only on the basis of a contract signed by both parties before the beginning of the operations referred to. The incentive may vary according to the strategic relevance of the connection, whether it s operated in peak/no peak hours and it could be increased during Winter IATA Seasons in case of relevant seasonality of the route. A minimum of 80% of the flights programmed at the beginning of each operation/iata season should be operated. To access the present incentive program (scheduled flights) the carrier shall commit itself to sell at least 50% of the seats online or through GDS. Punctual and regular payments, as fixed in the signed contract. A Carrier, which has incurred into relevant irregularities about programmed flights, airport charges and fees or into contractual breaches may not be admitted to the incentive program. An additional one-off support may be evaluated in case of strategic markets/routes. On the subject of incentive programmes, Genoa Airport considers fundamental the concept of entrepreneurial initiative and, consequently, shall be entitled to evaluate other types of incentives and co-marketing with air carriers willing to develop schemes for increasing destinations and passenger volumes, which are strategic to the growth and economic sustainability of the airport. 8

9 Access to the incentive program A Carrier interested to participate in this tender process shall submit its offer via to our Business Aviation Department at least 45 days before the beginning of the operations. The letter shall contain the following details and specifications: Destination/activity to be evaluated Start-up date Period of operations Planned frequencies and schedule A/C details (MTOW and seats no.) In the 30 days following the applications receipt, Genoa Airport shall carefully study the documentation and its contents to select the most appropriate carrier which is able to satisfy all airport and investors requirements. The assessments shall be done according to: number of proposed routes by the carrier number of total seats offered on the proposed route airline market penetration seasonality of the proposed route type of aircraft (used by the carrie/in the carrier s fleet) In any case, Genoa airport shall reserve to evaluate the sustainability and the profitability of each proposal. The carrier shall commit itself to maintain the route/service which benefit of the present incentive scheme, at least for the same (additional) period for which the incentive has been recognized. Notwithstanding Genoa Airport commitment to comply with the National Regulation (Guidelines of the Minister of Transport of August 11, 2016), all agreements aimed at new traffic development finalized according to the present incentive policy, shall be confidential. 9

10 Attachment A Strategic routes ITALY FRANCE UK IRELAND RUSSIA & UKRAINE SPAIN & PORTUGAL SWITZERLAND & AUSTRIA GERMANY NETHERLANDS BELGIUM SCANDINAVIA & ICELAND ROMANIA CZECH REPUBLIC HUNGARY POLAND BULGARIA & MOLDOVA GREECE MALTA ALBANIA MOROCCO TURKEY ISRAEL UAE QATAR USA & CANADA Lamezia Terme, Reggio Calabria, Trieste Paris, Nantes, Bordeaux, Lyon, Toulouse London, Manchester, Birmingham, Edinburgh, Glasgow, Bristol, Liverpool Dublin Moscow, Saint Petersburg, Kiev Barcelona, Madrid, Malaga, Valencia, Canary Islands, Lisbon, Porto Zurich, Geneva, Wien Munich, Berlin, Frankfurt, Hamburg, Cologne, Düsseldorf Amsterdam Brussels Copenhagen, Oslo, Stockholm, Helsinki, Keflavik all airports Prague Budapest Warsaw, Krakow Sofia, Chisinau Athens Valletta Tirana Casablanca, Marrakech Istanbul Tel Aviv Dubai, Abu Dhabi Doha New York, Toronto The list of destinations could be subject to periodic variations and/or implementations. The list includes all destinations to be considered a priority for the development of Genoa Airport. Other airports, not included in the list, may be proposed by the airlines. In this case Genoa Airport will assess the potential of the proposed route both in terms of potential passengers traffic and profitability and decide to implement the list. 10

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