Low Fares The Engine For Passenger Growth 3 rd April 2003
Europe s No 1. Low Fares Airline No. 1 Established 1990 No 1 for traffic 24m passengers this year No 1 for On-Times No 1 for Lowest Fares No 1 for Lowest Costs No 1 for People Productivity No 1 for European Routes (125) and Bases (9) No 1 for Market Share No 1 for Profitability and Market Cap
The Ryanair Formula Lowest fares in all markets Lowest Costs No.1 or 2 share in 68 of 76 markets Single aircraft type, acquired at bottom of cycle Efficient secondary airports Internet sales @ 94%, strong ancillary sales Most productive, incentivised staff Disciplined organic growth 30% p.a. (9 bases) Strong balance sheet. Cash of 1 bn + Southwest
The Ryanair Formula : Lowest Fare Wins Av. Fare % > Ryanair Net Margin Low Med Ryanair 49-24% Easyjet/GO 83 + 69% 11% Air Berlin 102 + 108% Loss Deutsche BA 114 + 132% Loss Germanwings 131 + 167% Loss Iberia 174 + 255% Loss High Alitalia 224 + 357% Loss Lufthansa 268 + 446% Loss KLM 301 + 514 % Loss British Airways 321 + 555% Loss
The Ryanair Formula: Dublin - London PAX Millions 5 4 3 Ryanair Start 2 Current Stagnation 1 0 1975 1980 1985 1990 1995 2000 Note: Includes traffic to / from Heathrow, Gatwick, Stansted, Luton and City Source: Aer Rianta Traffic Numbers, CAA statistics
Delivering Growth
Ryanair s Traffic Growth Passenger Numbers 1995-2004 24 20 24 Million Passengers 16 12 8 4 Buzz Organic 0 95 96 97 98 99 00 01 02 03 04
Europe s Largest International Scheduled Carriers 30 25 20 15 10 5 0 LUFHTANSA BA AIR FRANCE RYANAIR KLM SAS ALITALIA IBERIA HAPAG LLOYD AER LINGUS Source: IATA Members Statistics 2001 and Ryanair current year forecast
Fleet and Passenger Growth No. Aircraft Firm Orders Only 140 120 100 80 Passengers 50 40 30 60 40 20 20 10 0 02 03 04 05 06 07 08 09 0 02 03 04 05 06 07 08 09 10 * Aircraft in operation in Summer season
Passenger Service
Ryanair Customer Service Charter High Fare Ryanair s Airlines Committed to selling lowest fares at all times Yes No Allow Flight and Name changes Yes No Deliver No. 1 on-time performance Yes No Tell passengers the precise reason for delay Yes No Provide prompt complaint response Yes (7) No (28) Provide prompt refunds Yes (7) No (28) Eliminate overbookings Yes No Publish monthly service statistics Yes No Support EU plan to publish stats Yes No
Ryanair No 1. on time in Europe Airline Ryanair Easyjet SAS KLM Lufthansa Iberia British Airways Air France Alitalia Ranking 1 2 7 8 11 12 15 20 24 % 88.0 81% 80.8 80.4 75.4 74.1 72.4 67.1 57.3 Source: Association of European Airlines January 2003
Ryanair No. 1 for fewest lost bags Airline Ryanair Iberia Lufthansa Ranking 1 9 15 Number* 0.65 14.6 20.8 Alitalia SAS British Airways Air France KLM 16 17 21 22 23 21.5 21.5 25.9 36.4 36.8 *Number of bags missing per 1,000 passengers Source: Association of European Airlines January 2003
Flight Regularity: Competitive Comparison Airline Ranking % Ryanair 1 99.9 KLM 2 99.2 Alitalia 10 97.4 Lufthansa 11 97.3 British Airways 12 97.1 SAS 14 96.8 Air France 19 94.5 % of flights performed as planned Source: Association of European Airlines January 2003
Route Network 2003
London Europe: Now 59 Routes
Buzz Routes Subject to regulatory approval
UK and Irish Bases continue to grow Dublin (21) Shannon (4) Glasgow (9)
6th European Base: Brussels April 01 (11 routes) Delivering Growth
PAX Millions 2 Brussels Traffic Growth Last 7 years 1997-2003 CAGR 92% 1.5 1 0.5 0 1997 1998 1999 2000 2001 2002 2003 E
7th European Base: Frankfurt Feb 02 (15 Routes)
Frankfurt Hahn Traffic Growth last 7 years PAX Millions 2.5 2 1997-2003 CAGR 153% 1.5 1 0.5 0 1997 1998 1999 2000 2001 2002 2003 E
8 th European Base: Milan, Feb 03 (7 Routes)
9 th Base: Stockholm, April 03 (8 Routes)
Barcelona Girona Ryanair Milestones September 2002 - Ryanair announce first route to Girona December 2002-2 daily services launched to Frankfurt February 2003-2 daily services launched to Milan February 2003-2 daily services launched to London April 2003 - daily service launched to Glasgow May 2003 - Launch of 2 additional daily services to London May 2003 - Launch of 2 daily services to Brussels June 2003 - Launch of weekly service to Dublin Working with local partners many more destinations to come
6 Routes to Barcelona Girona
Impact on Barcelona Girona 1.1 million passengers in year 1 Lower access costs for business and tourism (i.e. short breaks) Average passenger spend of 700 300m to local economy Hotels, Restaurants, Car Hire, and other ancillary services benefit from independent travellers
Future Plans for Spain Untapped market for Low Fares 50m people Secondary airports for example Murcia Jerez Santiago De Compostela Vigo Vitoria Salamanca etc etc etc Link with existing Ryanair hubs at London, Frankfurt, Dublin, Glasgow, Stockholm Milan and new hubs Develop Spanish hubs for International & Domestic Ground handling deregulation
Summary for Ryanair in Europe Growth of 25% - 30% per annum Fares will continue to fall by 5% each year Use existing underused facilities at secondary airports No slot or congestion problems Low costs required to support low fares Unlimited growth potential