Central Europe`s First Low Cost Airline SkyEurope Airlines

SkyEurope Airlines
Central Europe’s
First Low Cost Airline
Central Europe Specificities
•
Slovakia, Czech Republic, Poland
and Hungary entering EU
on 1st May 2004
•
Strong economic development
triggered by removal of borders
•
Low disposable income
•
Lack of competitive ground
transportation
•
Lack of affordable air transport
SkyEurope Concept
•
Leading low cost low fare airline in Central Europe
•
Started in Bratislava because:
– There was a gap in the market: no schedule airline
in Slovakia after Czechoslovak separation
– Proximity to Vienna (only 30 miles) making Bratislava the “Stansted
Airport” of Vienna
– As the first low-cost airline in a low cost country, SkyEurope can
achieve even lower unit costs than other low cost carriers
•
Business development strategy:
– „connecting the dots“ in a multi-base network – instead of a traditional
airlines’ hub-and-spoke network
– New base in Budapest since November 2003
– Additional bases planned in Central Europe
Founders & Management
• Alain Skowronek
– EBA Express (Belgium):
first low cost airline in
Europe;
– Strategic sale to Virgin
Express in 1996; IPO in
1997;
– Former General Manager
of City Bird Airlines.
• Christian Mandl
– EU-related projects in
Central & Eastern Europe;
– Business Development
consultancy in Bratislava.
Investors
Central European funds backed by:
EBRD
ABN AMRO Bank
and private Central European investors
EU
SkyEurope Milestones
•
3rd year of operation
•
12 aircraft in Summer 2004
•
18 destinations
•
3 bases:
– Vienna-Bratislava
– Ko_ice
– Budapest
•
2 companies:
– Slovakia: SkyEurope Airlines,
a.s. – IATA code ‘NE’
– Hungary: SkyEurope Airlines
Hungary Kft. – IATA code ‘5P’
First Low Cost Airline to Carry
His Holiness Pope John Paul II
Boeing 737 – “Adriana”
Booking
• All destinations from €25: “the earlier you book, the
better the price”
• www.skyeurope.com
– Online flight booking
– Online car rentals and hotels booking
• European Call Centre accessible through local numbers
– Reservation agents communicating in 7 languages
(English / French / German / Italian / Hungarian / Slovak / Czech)
• Travel agencies
– For corporate customers and ministries
– Internet booking tool
What Low Cost Means
•
Simplicity: point-to-point connection, no-frills (lounges, newspaper)
•
Light structure: subcontracting of handling, catering, heavy
maintenance
•
Intensive use of technology to maximize efficiency (reservation,
payment, ticketing, etc.)
•
Low cost means high quality of maintenance and training
according to latest EU standards (JAR OPS 1 and JAR 145) to allow
high aircraft utilization
•
Low costs enable the airline to offer low fares, and stimulate the
market growth, by attracting new air passengers previously travelling
by car, bus or train.
Example of Incremental Traffic
•
•
SkyEurope created incremental traffic in BTS.
Traffic of Slovakia-originating passengers using VIE on SkyEuropeoperated routes remained stable.
ZURICH
STUTTGART
MILAN
BTS
VIE
2000
2001
2003
2000
2001
2003
2000
2001
2003
Surveyed passengers – one week departure – Border to VIE, Airport BTS
SkyEurope results
Passengers transported in 2003
100.000
•
Number of passengers
transported doubling every
75.000
quarter in 2003
•
50.000
Load factor of 78.3% for
third quarter 2003
25.000
•
Break-even already
achieved
0
Q1
Q2
Q3
Q4E
Central Europe’s Answer
•
•
•
•
•
Western European carriers see Central Europe as a promising
market and are preparing their entry into this region
Does it make sense to import Western European costs into Central
Europe?
SkyEurope is the only low cost airline in a low cost country
SkyEurope benefits from:
– First mover advantage: 3 years of experience in Central Europe
– Recognised brand
– Multi-base network
– Presence not only on East-West but also on East-East traffic
– Strong financial backing
SkyEurope aims at offering a Central European answer to the
market demand for low cost low fare services
Thank you
Contact
SkyEurope Airlines
Ivanska cesta 26
P.O.Box 24
820 01 Bratislava 21
Slovakia
Phone: +421 2 4850 1111
Fax:
+421 2 4850 1000
Alain Skowronek, Chairman: [email protected]
Christian Mandl, CEO:
[email protected]