How to increase growth, efficiency and profitability for European aviation in the current environment: The Perspective of Loftleidir Icelandic

Transcription

1 How to increase growth, efficiency and profitability for European aviation in the current environment: The Perspective of Loftleidir Icelandic

2 Icelandair Group OurMother Company Icelandair Groupfocusesoninternationalairlineroutenetworkand tourism. The Group operates in two business segments: Route Nework and Tourism Services. The two segments are inter-related and support each other, both through revenue generation and in cost-sharing. Business Development Group Finance Route Network Hub and Spoke Concept Scheduled Airlines Cargo Technical Services Ground Services Tourism Services Hotels and Restaurants Travel Agencies Domestic Tourism Financial Services Aircraft Charter, Leasing and Trading

3 Icelandair Group BasicFacts Total revenues in 2010 USD 718 million EBITDAR ratio in % Net profitin 2010 USD 38 million Total assets at theend of 2010 USD 728 million Equityratioat theend of % Number of subsidiaries 8 Number of aircraft 36 Average number of employees 2,197 ListedunderthecodeICEAIR ontheomx NordicExchange in Iceland

4 The Great Herring How to increase growth, efficiency and profitability for European aviation in the current environment? The default answer from ourside could be: Go somwhere else and make a lot of money. This is how we got there! Loftleiðir Hf. was initially founded by young entrepreneurs to provide them jobs as pilots in fish (herring) search flights off the North coast of Iceland. Mr. Alfreð Elíasson was Ceo from the start. The Hippie Airline became well known in it s time and famous for being the first low cost airline in the world. Once again in 2002 Loftleidir Icelandic was high in the skies and as of 2007 with diamonds!

5 The Great Herring How to increase growth, efficiency and profitability for European aviation in the current environment? The default answer from ourside could be: Go somwhere else and make a lot of money. This is how we got there! Loftleiðir Hf. was initially founded by young entrepreneurs to provide them jobs as pilots in fish (herring) search flights off the North coast of Iceland. Mr. Alfreð Elíasson was Ceo from the start. The Hippie Airline became well known in it s time and famous for being the first low cost airline in the world. Once again in 2002 Loftleidir Icelandic was high in the skies and as of 2007 with diamonds!

6 Happy days, days, sunshine and Champagne!! Champagne This is not an old add from Freddy Laker. No its the unofficial slogan of Loftleidir Icelandic and why is that? The first projects of Loftleidir Icelandic were charter flights from Iceland bringing people to the sandy beaches and white ski slopes of Europe. In alignment came operations out of Greece and Denmark. We also operated on behalf of Avianca in Colombia.

7 Viva la Revolución! Along came projects out of Boston, Mexico, Dominican Republic, Guyana and Cuba to name a few. From the year 2005 we have been in an ongoing business relationship with Santa Barbara Airlines in Venezuela. Currently we have two B ER in Caracas.

8 On with the show From the start a spirit of adventure has surrounded our operations. We have operated numerous ACMI contracts in close cooperation with Icelandair. Combined with our ACMI and full charter work we have succesfully completed 15 ATW tours were the champagne flows! Last year once again adventure came our way when we started our UN operation in Liberia.

9 Overthewatershed We crossed a certain watershed in the year2003 whenwesignedand AM contract with Israir for a B ER. The AM contracts are an all inclusive aircraftand maintenanesolution. Following the success oft the Israel contract a strategic decision was taken to advance into this field. Russiawasplacedonthemapas a market with great potential.

10 Зачем ехать в Россию? Protectivepoliciesin Russiacanmakeit complicated and expensive for airlines to introducewesternbuiltaircraft. Lackof knowledgeand capacityin maintenance has also been a high threshhold for certain airlines. ACMI is prohibited in Russia unless crew members speak Russian. Thisamongstotherawokeourinterestin Russia.

11 Gloriousyearof aviation: 2007 In theyear2007 weleasedtwob onam contracts. OneunittoSpainand another to Russia. TheSpanishcontractwillbegoingdownin historyknownas the60 daywarbetween Chadand LoftleidirIcelandic. Repossionof the aircraft was eventually succesfull. The other unit went to Yakutia Air Company in Siberia, latertobejoinedbytwoother units all embroidered with diamonds in the airlines famous livery.

12 Somewherein a Galaxy far, far away In theautumnof 2007 Terra Incognitawas conquered when the cooperation with PapuaNewGuineastarted. Youcantget much further away from Iceland before you started returning back home! Initially a wet lease contract with one B but early in the relationship ANG requestednegotiationaboutam possibilities. Today 3 B ER are on assignment with Air Niugini.

13 THANKS! CREDITINFO STAÐFESTIR AÐ LOFTLEIÐIR ER SJÖUNDA STERKASTA OG BESTA FYRIRTÆKI LANDSINS