Eugenia Lloréns Beltrán de Heredia Directorate General of Civil Aviation Windhoek, 2-3 April 2009
SPAIN POLICY FOR AIR TRANSPORT Regulated liberalisation vs. deregularisation Concerted government action vs. specific interest of one sector Promotion of tourism, trade and economic development Economic interest of the regions Opportunities and benefits for citizens
SPAIN POLICY FOR AIR TRANSPORT Four pillars Capacity and infrastructures Competitiveness Air transport competitive costs High quality, safety and security standards
Capacity and infrastructures Airport Capacity Mvts/h 1994 2008 MADRID 50 98 BARCELONA 40 64 PALMA DE MALLORCA 30 60 96% 60% 100% Airport Investment in Spain ( ) Millons 2,500 2,000 Investment 1,500 1,000 500 0 1990 1991 x 10.4 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Source: Ministerio de Fomento (2009)
GROWTH OF ANNUAL PASSENGER TRAFFIC IN SPANISH AIRPORTS Aena has developed one of the biggest airport groups in the world (48 airports in Spain and also 27 airports in 8 different countries) MILLIONS OF PASSENGERS 74 76 84 84 92 98 104 111 119 129 141 145 143 154 166 181 193 210 204 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Between 1990 and 2007 traffic grew annually at an average 6.3% (two points higher than the European average rate) 4 th world place by number of passengers Source: Ministerio de Fomento (2009)
Competitiveness: More airlines 1992 Scheduled: Iberia public group Non Scheduled: 7 charter airlines 2008 Scheduled: Iberia and 11 more airlines Non Scheduled: 13 charter airlines
Competitiveness: More handling providers Pre-1994 1994 Monopoly: high prices 1st step towards liberalization (earlier than EU Directive): 2 handlers at 3 airports, better quality, lower prices. 1997 2 handlers at 13 airports 2008 3 handlers at 4 airports, 30% decrease on reference prices
Air transport competitive costs Aeronautical charges trend Londres Frankfurt París Zurich Amsterdam Atenas Roma Lisboa Madrid 0 20 40 60 80 100 120 140 Aeronautical charges Aeronautical charges (consumer price index adjusted) Tasas Pasajero Tasas Aeronave Impuestos Handling Source: Ministerio de Fomento (2008)
High quality, safety and security standards Safety regulations (EU-OPS regulations on air transport operations) Security standards (Regulation 300/2008 on common rules in the field of civil aviation security) Air passenger rights (Reg 261/2004 on overbooking, cancellations and delays, Reg 1107/2006 on rights of disabled persons in air transport and Reg 1008/2008 on common rules for ops of air services)
Results: Spain 2 nd tourist destination after France, ahead of USA and China 57.4 million foreign visitors to Spain in 2008, 77.3% by plane Tourism 11% of GDP (132 billion euro) Air transport 7.8% of GDP Madrid and Barcelona airports 3% of GDP (farming 2.3% to GDP) 683,000 jobs generated by Madrid and Barcelona airports
A PROCESS IN THREE LEVELS Pre-EU liberalization process Within EU liberalization process Bilateral and with EU Community
1994 REST 50% 2008 REST 40% CONDOR FLUGDIENST 5% THOMSONFLY 11% HAPAG- LLOYD 10% SIPAN 9% CONDOR FLUGDIENST 8% LTU AIR EUROPA 6% 6% AIR BERLIN 28% AIR EUROPA 10% HAPAG SPANAIR LLOYD EASYJET 6% 6% AIRLINE 5% Palma de Mallorca development Passengers (millions) 25 20 15 10 5 0 1994 Passengers 1996 1998 2000 FOREIGN AIRLINES SPANISH AIRLINES 2002 x 2 2004 2006 2008 Source: Ministerio de Fomento (2009)
Support of EU liberalization process: More carriers More routes More carriers per route MORE OPPORTUNITIES FOR PASSENGERS More connectivity More affordable fares POSITIVE ECONOMIC, SOCIAL AND POLITICAL IMPACTS
SHARE IN TOTAL PASSENGERS Increased competition in domestic routes in 1993-2008 8% 64% (2 airlines belonging to one group carrier) 3% 32% 35% 25% 21% 23% 19% 25% 20% 25% OVER 3 CARRIERS 3 CARRIERS 2 CARRIERS SINGLE CARRIER 1993 2000 2008 (130 routes) ) (217 routes) ) (304 routes) Source: Ministerio de Fomento (2009)
Increased competition in European routes from Spain in 1993-2008 SHARE IN TOTAL PASSENGERS 9% 18% 73% 19% 37% 45% 33% 23% 20% 13% 10% OVER 3 CARRIERS 3 CARRIERS 2 CARRIERS SINGLE CARRIER 1993 2000 2008 (109 routes) ) (246 routes) ) (723 routes) Source: Ministerio de Fomento (2009)
INTRA EU AIR FARE EVOLUTION MAD - LON 1993 700 (Basic) 200 (Lower) PMI - FRA 1993 685 (Basic) 200 (Lower) 2008 1,000 (Basic) 40 (Lower) 2008 1,000 / 687 (Basic) 67 / 45 (Lower)
Bilateral approach with 3rd countries: Main place of business vs. ownership and control Liberalization of direct links Opening of territory opportunities for the regions Maximal reciprocal operating flexibility Guarantee of standards and quality
Traffic growth (2000-2008) prompted by new bilateral agreements MEXICO BRAZIL SENEGAL ISRAEL PERU COLOMBIA CUBA TURKEY 93,6% 85,6% 57,3% 39,6% 50,3% 150,7% 171,9% Measured as increase of frequencies operated to / from Spain 191,7% Source: Ministerio de Fomento (2009)
Increased number of passengers prompted by re-negotiating bilateral agreements 1.000.000 800.000 PASSENGERS 600.000 400.000 MEXICO: MEMORANDUM OF UNDERSTANDING (July 2001) MEXICO: SIGNED BILATERAL AGREEMENT (July 2003) PERU: NEW BILATERAL AGREEMENT (February 2003) COLOMBIA: NEW AGREEMENT SIGNED (October 2005) 200.000 0 ECUADOR: NEW AGREEMENT SIGNED (July 2003) 2000 2001 2002 2003 2004 2005 2006 2007 2008 MEJICO COLOMBIA ECUADOR PERU Source: Ministerio de Fomento (2009)
EU-USA Open Skies economic impact (5 year forecast) 25 million new passengers 12 billion euro savings 80,000 new jobs generated CURRENT SITUATION 19 carriers operating between both countries in 2008 16.8% rise in frequencies (28% in passengers) since 2000 Source: European Commission (2008)
Spain-Morocco air traffic 1.200 PASSENGERS (THOUSANDS) 1.000 800 600 400 200 0 x5 growth in last decade 14 carriers operating between both countries in 2008 65.4% rise in frequencies since 2000 EU-Morocco Agreement December 2006 99 00 01 02 03 04 05 06 07 08 Source: : Ministerio de Fomento (2009)
And Africa?: EU-Africa Support EU plan for action 2008-2012 for air transport Participation in the Euro-Mediterranean Transport Forum (5th Meeting: 17 December 2008) Spain-Africa In the framework of the Plan Africa (2006-2008-2012): Promotion of trade/foster air transport opportunities and links Participation in the Occidental-Mediterranean Group of Ministries of Transport (5th Meeting: 17 November 2008)
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