árni gunnarsson md air iceland

REGIONAL AND GREENLAND OPERATIONS
ÁRNI GUNNARSSON ǀ MD AIR ICELAND
30 SCHEDULED DESTINATIONS 1986
GRÍMSEY
RAUFARHÖFN
KÓPASKER
ÞÓRSHÖFN
SUÐUREYRI
FLATEYRI
SIGLUFJÖRÐUR
ÍSAFJÖRÐUR
INGJALDSSANDUR
GJÖGUR
ÞINGEYRI
ÓLAFSFJÖRÐUR
HÚSAVÍK
BAKKAFJÖRÐUR
REYKJANES
SAUÐÁRKRÓKUR
BÍLDUDALUR
BLÖNDUÓS
HÓLMAVÍK
PATREKSFJÖRÐUR
VOPNAFJÖRÐUR
AKUREYRI
BORGARFJÖRÐUR
EGILSSTAÐIR
NORÐFJÖRÐUR
STYKKISHÓLMUR
GRUNDARFJÖRÐUR
RIF
FÁSKRÚÐSFJÖRÐUR
BREIÐDALSVÍK
HÖFN
HORNAFJÖRÐUR
REYKJAVÍK
KEFLAVÍK
VEYVESTMANNAEYJAR
13 SCHEDULED DESTINATIONS IN 2013
Grímsey
Þórshöfn
Ísafjörður Gjögur
Húsavík
Sauðárkrókur
Bíldudalur
Vopnafjörður
Akureyri
Egilsstaðir
Reykjavík
Höfn
Air Iceland
Eagle Air
Norlandair
Air Arctic
Vestmannaeyjar
MAJOR CHANGES IN RECENT YEARS
ON THE DOMESTIC MARKET
With governmental definition
in 2003 of minimum travel
time to Reykjavík it was
clear which routes should
be tendered and which not
Service agreements are
currently with the
Government on domestic
flights to 7 destinations
Service contract routes are
today counting for around
5% of the total number of
passengers on domestic flights
Air Iceland´s flights
are not operated
under service contracts
DEVELOPMENT FOR THE LAST 40 YEARS
3% INCREASE PER YEAR ON AVERAGE
Number of passengers on domestic flights
1971-212
500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
1982
1981
1980
1979
1978
1977
1976
1975
1974
1973
1972
1971
0
DEVELOPMENT DOMESTIC FLIGHTS
JANUARY-JULY 2012 AND 2013
Number of passengers domestic flights
Load factor domestic flights
January – July 2012-2013 in thousands
January – July 2012 -2013
2012
40
2012
76%
2013
2013
74%
35
72%
30
70%
25
68%
20
66%
64%
15
62%
10
60%
5
58%
56%
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Jan
Feb
Mar
Apr
May
Jun
Jul
ǀ
Number of passengers in January-July 2013, 9% less than for the same period in 2012
ǀ
Strong focus on capacity adjustment due to negative development in demand has resulted in
higher load factor compared to last year (68% to 71%).
DEVELOPMENT IN EUROPE
KEY INDICATORS
European Regional Association (ERA) reports a 9% decrease in passenger
numbers with an increase in load factor of 2 ppt. (64.2% to 66.5%) in the first
3 months of 2013 vs. 2012.
Key indicators in Europe
% change Q1 2013 vs. Q1 2012
Landings growth
-9.8%
Hours growth
-12.5%
Seat km growth
-13.0%
Seat growth
-12.7%
Passenger km growth
-10.0%
-9.0%
Passenger growth
DEVELOPMENT OF TAXES AND FEES
DOMESTIC FLIGHTS
Increase of taxes and fees per year
2003-2012
As of 1 April 2013 passenger
fees increased by 40% and
landing fees by one third at
Reykjavik Airport
400%
Fees and taxes
Fees and taxes per passenger
Price index
Airfare RKV-AEY
350%
300%
364%
271%
250%
200%
150%
100%
82%
75%
50%
0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
REASON FOR TRAVELLING*
DOMESTIC FLIGHTS
Passengers are not just municipal staff traveling on taxpayer´s expense. For example 30,000 children
(2-11 years) and 6,000 infants (0-2 years) travelled with Air Iceland last year, representing about 10%
of total passenger number
* Survey on board Air Iceland 2012
21.8%
28.0%
29.3%
30.8%
29.4%
24.5%
25.1%
23.5%
27.9%
37.2%
13.2%
30.6%
14.8%
10.0%
21.4%
27.8%
32.3%
16.4%
32.0%
15.6%
41.8%
20.0%
38.8%
36.2%
41.9%
29.2%
28.4%
29.8%
26.5%
20.3%
21.4%
28.4%
22.0%
24.2%
Jun´04
17.2%
19.2%
18.9%
20.0%
Nov´04
Jul´05
Feb´06
Aug´06
18.8%
Dec ´07
22.3%
Jul´08
23.1%
Jul´09
27.2%
18.9%
Mar´10
14.0%
Aug´11
May-Jun
´12
Visit to friends/family
Business
Vacation
Other
WHO PAID FOR THE FLIGHT*
Myself
46,9%
Private Company
11,8%
Family
11,1%
Sports Club
5,1%
Municipality
1,4%
Spouse
1,3%
Other
Most passengers are traveling on
their own or about 47% of the
passengers
ǀ
11% of flights are paid for by
relatives
ǀ
20% are paid for by private
companies
ǀ
12% by the state and
municipalities
ǀ
5% by sports clubs
20,7%
Public
Company/Institution
Friend
ǀ
0,4%
1,4%
* Survey on board Air Iceland 2012
TOURISTS ON DOMESTIC FLIGHTS
GREAT GROWTH OPPORTUNITY
Increase in the number of tourist on domestic flights
January – July 2013 vs. 2012
35%
34%
22%
13%
9%
Total
East Europe
West Europe
Scandinavia
N-America
Asia
-2%
ǀ
Despite a decrease of the total number of
passengers on domestic flights the year to
date number of foreigners travelling on
domestic flights has increased by 22%
ǀ
The continues increase in the number of
foreign arrivals to Iceland gives a great
opportunity to increase the 10% share the
tourist represent today of the total number of
passengers on domestic flights
TERMINAL IN REYKJAVIK
TERMINAL IN REYKJAVIK
TERMINAL IN REYKJAVIK
GREENLAND OPERATION
ACTIVITIES IN GREENLAND
5 DESTINATIONS THEREOF 2 DESTINATIONS SERVED ALL YEAR
Reykjavik
Kulusuk
Reykjavik
Kulusuk
Reykjavik
Nuuk
1-2 times a week all year
although no contract with
the Greenland Government
Moreover 1-2 trips daily
from late May to
mid-September
All year
Reykjavik
Ilulissat
Reykjavik
Narsarsuaq
Akureyri
Nerlerit Inaat
February to April
and again from
June to September
June to
September
GSA cooperation with
Norlandair
THE MARKET
Business Customers and other
“must-go” travelers
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Growing due to greater cooperation
between countries
Connecting passengers
The majority of the passengers in low
season
Tourists
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Traditionally from Europe in high season
Growing opportunities in low season
from markets in U.S. and Far East
(Japan, Taiwan)
FUTURE MARKET IN GREENLAND
Greenland is a country rich of Minerals and Oil.
Initial steps have been taken to start exploiting
the opportunities which these resources give.
Many projects have been worked on over the
last decade or more and some of them are
getting closer to be operational. Below is an
overview over the status of activities:
Mineral
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No of prospecting licenses 19
No of exploration licenses 63
No of exploitation licenses 4
No. km² under exploration licenses 37.730 (2011)
Exploration expenses (mill. DKK) 711 (2011)
Exploration drilling (meters) 52.304 (2011)
Oil
|
No of Hydrocarbon licenses 16
PASSENGER TO/FROM GREENLAND*
15% INCREASE ON AVERAGE PER YEAR
Number of passengers to/from Greenland
2007-2012 in thousands
30.4
29.0
24.3
22.1
19.3
17.4
2007
*Air Iceland
2008
2009
2010
2011
2012
ICELAND AS A HUB FOR GREENLAND