IATA SEASONS 2015/2016
Guidelines Target The aims at attracting incremental traffic to Genoa airport through the increase of new point to point connections and frequencies or capacity on existing routes. 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 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. The amount of the above mentioned incentive shall not exceed the 50% of the airport taxes. Duration and Validity The present incentive policy, valid for 2015/2016 IATA Summer and Winter seasons, shall be applied to all new contracts effective from 2015 IATA season (provided that the agreement is signed before the beginning of the operations referred to) and not before 15 days from the date of its publication on the web site of Genoa Airport. All existing agreements shall remain valid until their natural expiration date. 2
Application cases The present shall be applied in case of: 1. New scheduled routes 2. Incremental traffic on existing scheduled routes 3. Support on existing scheduled routes when the pre-fixed target is not achieved 4. Seasonal charter chains and incoming routes See Attachment A and B for the list of the destinations: A. STRATEGIC ROUTES B. ROUTES OF INTEREST 3
Incentive scheme 1. New scheduled routes (charter flights excluded) Start-up of new scheduled connections, having at least 1 WEEKLY ROTATION (1/7). NEW ROUTES: destinations 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: the first 3 years of operations ( 6 IATA seasons) The incentives 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. The incentives may be recognized also to new entrant airlines on already existing routes (strategic only), if the route is underserved or to allow competition, guarantee lower fares and open up the market to new users with consequent benefits for our territory. 4
Incentive scheme 2. Incremental traffic on existing scheduled (no charter) routes INCREMENTAL TRAFFIC on existing routes: difference between the number of DEPAX from GOA, transported by a single airline, to a given destination, 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: 1 year (two IATA SEASONS) The incentive may vary according to the strategic relevance of the connection and its total traffic volumes. Options: 1) INCREASE DUE TO A NEW ENTRANT A new Carrier starts operating to an already-existing route, scheduling at least 1 weekly rotation (1/7), confirmed at least for 2 IATA seasons. 2 ) 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 at least for 2 IATA seasons. 3 ) CAPACITY INCREASE A Carrier increases the amount of offered seats by over 20% 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 at least for 2 IATA seasons. 5
Incentive scheme 3. Support on existing scheduled routes when the Airport pre-fixed target is not achieved (no charter) Extra support to existing scheduled connections in case of negative performance on strategic routes. The incentives may be recognized also at the end of the start-up period (3 years) when the target prefixed by the Airport Company is not achieved, and could vary according to the strategic relevance of the connection and its total traffic volume. The Carrier is granted incentives per departing adult passenger (DEPAX) Duration of the incentive scheme: none 6
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 Attachments A and B, 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 opearation. Duration of the incentive scheme: 1 year (six IATA SEASONS) 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
Terms of application Only carriers with regular certification by Aviation Authorities, 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 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. 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 can be accorded in case of strategic markets/routes. The amount of the above mentioned incentive shall not exceed the 50% of the airport taxes. 8
Access to the incentive program A Carrier interested to participate in this tender process shall submit its offer via e-mail to our Business Aviation Department (marketing@airport.genova.it) 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 profitably to incentive other strategic proposals by air carriers. 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 Oct. 2, 2014), all agreements aimed at new traffic development finalized according to the present incentive policy, shall be confidential. Modifications and revisions to the present policy shall be published by Genoa Airport in compliance with the Guidelines of the Minister of Transport of Oct. 2, 2014. 9
Attachment A Strategic routes ITALY Alghero Cagliari Olbia Bari Brindisi Lamezia Terme Reggio Calabria Trieste Catania Palermo Trapani Napoli Roma FRANCE Paris (all airports) Nantes Bordeaux UK London (all airports) Manchester Birmingham Edimburgh Glasgow IRELAND Dublin RUSSIA Moscow SPAIN Barcelona Madrid Malaga Valencia SWITZERLAND Zurich GERMANY Munich Berlin Frankfurt Hamburg Cologne Dusseldorf NETHERLANDS Amsterdam Eindhoven BELGIUM Brussels SCANDINAVIA Copenhagen Oslo Stockholm UKRAINE Kiev AUSTRIA Wien ROMANIA Bucharest Timisoara CZECH REPUBLIC Prague HUNGARY Budapest POLAND Warsaw BULGARIA Sofia GREECE Athens ALBANIA Tirana TUNISIA Tunis MOROCCO Casablanca Marrakech Fez TURKEY Istanbul 10
Attachment B Routes of interest ITALY Lampedusa Pantelleria Comiso Crotone Foggia Ancona Pescara FRANCE Lyon Strasbourg UK East Midlands Leeds Newcastle Belfast IRELAND Cork Shannon SWIRZERLAND Geneva PORTUGAL Lisbon GERMANY Hannover Stuttgart SPAIN Alicante Sevilla Ibiza Mallorca Menorca Canary Islands ROMANIA Cluj-Napoca Bacau RUSSIA St. Petersburg Krasnodar MALTA Valletta GREECE Rhodes Crete Other Islands ISRAEL Tel Aviv EGYPT Sharm el Sheikh Marsa Alam Hurghada TUNISIA Djerba USA New York Los Angeles CANADA Toronto Vancouver The lists of destinations in Attachments A and B could be subject to periodic variations and/or implementations. 11