FLARE CONSULTING PRESENTATION. ACI-LAC Conference 2018

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Transcription:

FLARE CONSULTING PRESENTATION ACI-LAC Conference 2018

Flare Consulting is a leading management consultancy boutique based in Latin America and exclusively dedicated to Latin America Team carried out more than 50 consultancy projects in more than 30 countries Team of seven experienced professionals with engineering and business academics Large experience in Latin America and worldwide, team worked in more than 26 different countries Flare Consultin g Strong internal strategic capacities to provide advisory services to investors, CEOs and C-level executives Headquarters in Mexico City and regional offices in Europe Flare Consulting has been appointed by the largest companies, for several projects in the airport & aviation industry

Our latest involvement in the cargo industry was aiming to create the largest cargo center in the New Mexico City International Airport

The air freight is a key economic driver for most of the countries, representing a relevant part of the international trade <1% By weight 30% By value Pharma 66% Air freight is handling an annual volume of freight with a US$ 6,000bn

Air freight market has consistently shown a constant growth throughout the last decades and great resilience to crisis 250 200 Financial Crisis 9/11 Financial Crisis Double-dip recession 150 100 Gulf War & Post-War Crisis 50 0 7.7% growth per year 5.4% growth per year 2.0% growth per year 1985 1990 1995 2000 2005 2010 2015

although showing that air cargo is also within the VUCA world, as the global economy tends towards more unstable environments VUCA W o r l d VOLATILITY UNCERTAINTY COMPLEXITY AMBIGUITY

This environment allowed significant growth for many airports, generating challenges for airports to cope and do planning in advance Mexico City ( 000tn) 446.9 535.6 Querétaro ( 000tn) CAGR 9.2% +40ktn p.a. 483.4 CAGR 18.9% 35.8 376.3 396.7 17.9 19.8 22.4 24.7 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

This impressive growth has allowed to create globally, competitive and highly-concentrated cargo hubs in the LAC region BOG GRU MEX SCL 366.2 543.3 540.5 706.8 15 top cargo airports in Latin America and Caribbean LIM 283.7 EZE UIO VCP SJU 215.2 210.2 204.3 195.3 represents 74% of the total cargo handled in the region GDL MDE GIG PTY MAO SJO 159.2 126.7 118.9 114.1 104.9 78.8 whereas in passengers they represent 50% of the total

However, airport operators throughout the region find it hard to see air cargo as a key profitable business for their concession cargo is limiting the development of the passenger terminal cargo does not leave a penny to this airport we do not have any control over the cargo business

We have identified great challenges for airport operators to capture the fair value of the air cargo value chain Airports are getting a small but profitable chunk of air cargo but extremely disparate Real sample of an 800kg freight from Spain to Mexico City Does not include import tariffs nor ground transport 51 Airport 1 Airport 2 Airport 3 2 340 3,290 Airport 4 Airport 5 Airport 6 8 250 Airport 7 Airport 9 40 15 1,510 Airport 8 Airport 10 Cargo handler Ramp handler Airline Ramp handler Custom agent GSA Cargo handler Airport Total Yield 2% <1% 70% <1% 10% <1% 14% 2% 100% Real sample from Latin American & Caribbean airports

At Flare Consulting, we are committed to become a key player as the management advisor for promoting and fostering the cargo business Define an integrated air cargo strategy Identify infrastructure and operational needs Optimize the operating and business model with handlers Structure cargo business models that maximize profitability Align stakeholders interest to find solutions