Yearbook 2002

cargolux

Association of European Airlines Association of European Airlines . Avenue Louise 350 B - 1050 Brussels Tel. +32 (0)2 639 89 89 Fax 639 89 99 E-mail [email protected]

August 2002

______Dear Reader of the AEA Yearbook,

This is the 19th time that I have had the honour of presenting an AEA Yearbook.

This edition will be the last under my aegis and I would like to use this opportunity to thank all members of the small Secretariat. Everybody has contributed to what is nowadays often referred to as ‘the AEA’. It is fascinating to see what the small talented team can come up with.

To a certain degree the Association is mirrored by the Yearbook. If one compares earlier editions with this one, then one gets a feel for the dimension of change.

It is with deep regret that my last official reporting as Secretary General is for the year 2001, which includes 11 September. However, I am convinced that life will go on and we must look to the future and help tailor a better one.

K-H Neumeister

Adria Airways, Aer Lingus, Air France, Air Malta, Alitalia, Austrian Airlines, British Airways,BMI British Midland, Cargolux, Croatia Airlines, CSA, Cyprus Airways, Finnair, Iberia, Icelandair, JAT, KLM, Lufthansa, Luxair, Malev, Meridiana, Olympic Airways, SAS, Spanair, SWISS, TAP Air Portugal, Tarom, Turkish Airlines.

Disclaimer

Any views or opinions presented in this Yearbook are solely those of the AEA and do not necessarily represent those of individual member airlines.

This AEA Yearbook, as always, is the product of a team effort.

Sue Lockey was the overall co-ordinator, and was responsible for the production of Section V. David Henderson wrote the text. Dario Spila produced the graphics and assisted David Lyssens in production of the statistics and supporting data. Didier Poriau was in charge of preparing the layout for the colour printing, which was done in-house by Jef Swalus.

SEPTEMBER 11TH, 2001

September 11th was, first and foremost, Other industries, too, have been a human tragedy. Any effect it may extremely hard-hit. An obvious example have had on the economics of our is the insurance sector. Not only were industry, or of any other, must be massive financial losses sustained on regarded as secondary. September 11th, but the majority of these were third-party, that is, people and Yet, the airline industry can claim special buildings on the ground. Such risks in status when the events of that day, and the past were treated as incidental to the their consequences, are discussed and standard passenger and hull insurance. reviewed. It is an unfortunate fact that civilian aircraft have often been the target Now, the airlines are being asked to for acts of terrorism, but never before cover this new risk, while at the same have they become the weapons time regular premiums have increased themselves. substantially.

As a consequence of the events of Unsurprisingly, security has also been September 11th, our industry has suffered massively increased. This, too, carries substantial damage – and casualties. A with it a price-tag. It also carries with it a number of airlines which were going penalty to the passenger in terms of concerns on September 10th are no more. delay and inconvenience, and in some cases, intrusiveness. They include two of the four airlines which, in 1952, founded the Air Research So, the airline industry has been hit from Bureau, the original ancestor of AEA. several sides – fewer passengers, With the disappearance of Sabena and reduced operations, inflated costs, Swissair, respectively 78 and 71 years of increased regulatory oversight, lost jobs, aviation history have been swept away. grounded aircraft, corporate crises.

At these, and at the surviving airlines, It will, of course, return to a state of many thousands of jobs have been lost; normality but, like the New York skyline, in the industries which serve the airlines, the landscape will have changed. many thousands more. Some pillars of the industry are not there any more. In a volatile Many cities have lost service and many environment, the process of thousands of passengers have been redistributing the market among deprived of choice in making their travel the remaining players will plans. At the time of writing, Brussels – continue for some time to come. the Capital of Europe – has no direct service by a European airline to a non- Growth will resume. It is too European destination. early to predict whether it will resume at the pre-2001 rates of The airlines have not been the only ones increase. to suffer. The travel and tourism industry is one of the world’s biggest employers Saddest of all, September 11th and one of the world’s biggest economic probably put an end, once powerhouses. Many parts of it – hotels and for all, to the ‘romance’ of and car-hire, for example – are suffering air travel. exceptional hardship.

ASSOCIATION OF EUROPEAN AIRLINES i

CONTENTS

September 11th, 2001 i

SECTION I AEA AIRLINES IN 2001 I-1 At a Glance I-2 Consolidation and Competition I-4 Traffic Development in 2001 I-6 Air Freight I-9 Operating Result I-10 Fleet I-12 Workforce I-13 Punctuality Performance I-14

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES I - 1 AT A GLANCE

OPERATING PROFIT/LOSS Total Scheduled Routes 2.5 billion current US$ after interest The overall operating result for AEA 2.0 airlines in 2001 is estimated at US $3.02 1.5 1.0 billion – the industry’s worst-ever loss. 0.5 Total revenue for the year was a massive 0.0 7.1% lower than in 2000. -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 est. -3.5 90 91 92 93 94 95 96 97 98 99 00 01

-3.02TOT billionAL FINANCIAL US$ LOSS

ON TOTAL-7.1% SCHEDULED Revenue ROUTES

QUARTERLY TOTAL OPERATING RATIO 2000 2001 (est) The industry was already struggling 106

through the Summer of 2001 and 104 uncharacteristically failed to produce a 102 profit in the middle two quarters of the year. After the tragic events of 100 th September 11 , the final quarter was a 98 financial disaster with income falling short 96 of expenses by a margin of almost 10%. 94

90 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 After interest

I - 2 ASSOCIATION OF EUROPEAN AIRLINES MONTHLY TRAFFIC 40% growth in RPKs The slump in demand which followed th 30 September 11 was dramatic. The Terrorist Attacks on the USA September 11th 2001 immediate traffic loss was comparable to 20 the aftermath of the Gulf War in 1991 but 10 the subsequent depression has been 1991 1992 2001 2002 0 much more prolonged.

-10

-20 Gulf War - Allied counter offensive January 17th 1991 -30

-40 WEEKLY TRAFFIC 10% growth in RPKs

0 Geographical Europe -10

-20 Total International -30

-40 North Atlantic -50

-60 W35 W37 W39 W41 W43 W45 W47 W49 W51

-5.4%TOT TrafficAL SCHEDULED Loss RTKs

TOTAL PASSENGERS CARRIED ON NORTH ATLANTIC ROUTES 30 000 passengers carried (000) The most vivid illustration of the lost traffic is in the North Atlantic market, where the downturn set the growth trend 25 000 back rather more than two years. Substantial decreases continue to be 20 000 recorded through 2002.

15 000

10 000 1991 1993 1995 1997 1999 2001

ASSOCIATION OF EUROPEAN AIRLINES I - 3 CONSOLIDATION AND COMPETITION

For the first time in the almost 50 years It is, nevertheless, noteworthy that both that AEA has been in existence, a Swissair and Sabena were part of the European national airline has ceased Qualiflyer alliance, a grouping which had operations. arguably ceased to be viable when it lost its US partner, Delta. Not one, but three. In early 2001 Balkan Bulgarian Airlines stopped operating, The events of September 11th have done after a troubled transition from State nothing to change the view of many control to foreign ownership. observers that Europe’s full-service airlines will continue the consolidation Even more dramatic were the closures of process around the remaining four Global Sabena in late 2001 and Swissair in early Alliances. 2002. Outside of the mainstream of the For many years, a popular scenario industry, the so-called ‘no-frills’ carriers amongst industry observers has been a have shown substantial growth, both reduction in the number of airlines in before and after the US attacks. Europe, particularly national airlines. To some, these latest developments have The sector has also seen some been simply a part of an inevitable process. significant structural developments. British Airways divested itself of Go, It is noteworthy, however, that in the case which was then acquired, in mid-2002, by of both Belgium and Switzerland, the Easyjet. At the same time, Easyjet also demise of the national airline was purchased BA’s German daughter- followed – almost seamlessly – by the company, Deutsche BA. emergence of a replacement, albeit smaller, carrier. bmi british midland, meanwhile, followed the example of BA and KLM by setting up In both countries, the new airlines were its own no-frills subsidiary, bmibaby, with strongly supported by the local business 14 mostly sunbelt destinations from its community, as a vital local resource. East Midlands hub.

"NO-FRILLS" CARRIERS' WEEKLY SEATS

1 000 seats (000)

800

600

400

200

0 Summer 95 Summer 96 Summer 97 Summer 98 Summer 99 Summer 00 Summer 01 Summer 02

Ryanair Virgin Express Easyjet Debonair GO Buzz bmibaby

Source: OAG

I - 4 ASSOCIATION OF EUROPEAN AIRLINES

Ryanair, the largest player in this sector, make up the Single Market (the EU, has announced a very substantial growth Norway and Iceland) which were strategy which, it estimates, will propel it operating scheduled passenger services into the ranks of the largest intra- on their own account. European carriers. During the early part of the year, up to A key development in the no-frills sector the moment of the September 11th has been the creation of secondary hubs. attacks, no less than 23 of these had quit To Easyjet’s established operations at the market. Eight start-up carriers Amsterdam and Geneva has been added brought the total back to 128. Ryanair networks at Frankfurt-Hahn and Brussels-Charleroi, while Buzz have From September 2001 to May 2002, a introduced a number of domestic routes further 17 airlines withdrew from the in France. scheduled market, their places taken by 14 start-ups for a current total of 125. It is estimated that the available capacity in terms of weekly seats offered by the This volume of turnover is unprecedented six main no-frills carriers (Ryanair, Virgin in the post-deregulation era (prior to 1993 Express, Easyjet, Go, Buzz and there were many fewer carriers in a much bmibaby) increased by 48.3% between more stable environment). Summer 2001 and Summer 2002 – a very high growth rate even for this fast- The number of French scheduled airlines growing sector. decreased from 12 at the end of 2000 to seven, having reached a peak of 26 in Looking at the European airline industry 1996. There has been a significant as a whole, the last eighteen months has turnover of airlines in Sweden, and three seen some remarkable changes. airlines in Greece with significant international networks have ceased At the end of 2000 there were some 143 operations since September 2001. airlines in the European countries which

NUMBER OF SCHEDULED PASSENGER AIRLINES 25 scheduled passenger airlines September 2001 December 2000

20 May 2002

0 Belgium France Germany Iceland Italy The Netherlands Portugal Sweden Austria Denmark Finland Greece Ireland Luxembourg Norway Spain United Kingdom

ASSOCIATION OF EUROPEAN AIRLINES I - 5 TRAFFIC DEVELOPMENT IN 2001 30 In any review of the year 2001, Malta TRAFFIC DEVELOPMENT % GROWTH consolidated annual figures will be almost 2001 OVER 2000 meaningless. For the record, AEA Total 20 Scheduled passenger-km fell by 4.7%, with a loss of 0.4% in Europe and a minus 10.6% on the North Atlantic. 15 Czech Republic Behind these figures, of course, lay two very different stories. In the first eight Slovenia months of the year, traffic increased, although only marginally. In the last four France 10 months – or more precisely, the last 111 Italy days of the year – massive traffic losses Denmark Ireland were recorded. Luxembourg Spain Greece Even before the upheavals of September Germany th Portugal 5 11 , there were divergent trends in different United Kingdom markets. Within Europe, the market was Cyprus fairly buoyant, although slightly below Tur key historical growth trends. On longhaul Hungary Netherlands routes, traffic losses were already being Norway sustained. Switzerland 0 Sweden Europe - traffic Belgium Looking more closely at European routes, a growth of 4-5% had been maintained -5 through the Summer months. Austria

There was, however, a wide variation in the Finland performance of individual country markets. Traffic to/from France, Italy and Denmark was well above this figure, while Sweden, -10 Switzerland and the Netherlands had very low growth, and substantial traffic losses were being experienced in Finland, Austria Croatia and Belgium. -15 In the last four months of the year, intra- European traffic decreased by 11.6% relative to the same period in 2000. -20 -25 The largest traffic losses during this period AEA scheduled international passengers were recorded in the countries whose between 'AEA countries' -30 national airlines were the subject of the -35 greatest upheavals – Belgium and Average growth: Switzerland, where passenger numbers -40 Jan - Aug: +5.1% Sep - Dec: -11.6% Annual: -0.4% I - 6 ASSOCIATION OF EUROPEAN AIRLINES

were down 38.3% and 30.1% respectively. The events of September 11th occurred The markets the next hardest hit were some seven weeks before the introduction Finland at -22.3% and Sweden at -17.1%. of the Winter timetable. During that period Substantial decreases were also recorded there was some downward adjustment of in Turkey, Italy, Austria and Greece. capacity, although this was negligible compared to the drop-off in traffic. The only market to sustain a growth Consequently, load factors were very much through this period was Ireland (+5.4%), depressed. with Denmark (-0.4%) and Portugal (-3.8%) experiencing lower levels of traffic loss than With the start of the Winter schedule in elsewhere. November, carriers were able to put in place significantly reduced operating By early 2002 traffic on European routes patterns, with seat-km on offer about 5% had substantially recovered, with a small lower than in the corresponding period of loss in January and an equally small 2000. The effect was to stabilise load improvement in February-March, compared factors at close to previous year’s levels, to a year earlier. and even to improve them through the first quarter of 2002. GEOGRAPHICAL EUROPE RPKs Gulf War / September 11th North Atlantic – traffic 36 38 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 0 Terrorist Attacks on the USA September 11th 2001 (week 37) The North Atlantic market was already in a -5 weakened state prior to 11th September, the strong growth of the year 2000 having been -10 replaced by a series of minus figures through the Summer of 2001, averaging –3.5%. -15

NORTH ATLANTIC RPKs -20 Gulf War / September 11th Gulf War - Allied counter offensive January 17th 1991 (week 3) 36 38 40 42 44 46 48 50 52 2 4 6 8 10 12 14 16 18 -25% cumulative growth rate 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 Terrorist Attacks on the USA September 11th 2001 (week 37) Weeks -10 In comparison to the traffic losses following the Gulf War in 1991 – the only comparable -20 event in the industry’s history – the -30 downturn, on European routes, was much less severe in the weeks immediately -40 th following September 11 , with the result that -50 overall losses in the first half-year following Gulf War - Allied counter offensive January 17th 1991 (week 3) the respective crises have been slightly less -60% cumulative growth rate severe in the present situation than in 1991. 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 Weeks Europe – capacity Immediately following the terrorist attacks, all flying on the North Atlantic ceased for Capacity development on European routes four days. When services resumed, the in the first eight months of 2001 almost market stabilised at 30-35% below previous exactly matched the traffic trend. year, through to the end of November.

ASSOCIATION OF EUROPEAN AIRLINES I - 7

Thereafter, traffic losses diminished, passing Consequently, load factors in the first quarter of through 25% in early December and 20% at 2002 were substantially higher than last year, year-end. From mid-January the traffic loss with weekly figures reaching 90% in March. steadied at minus 11-12% and two months later had failed to improve further. Other route areas

In contrast to the experience in Europe, All AEA operating areas, with the exception traffic decreases following the September of Mid Atlantic routes to the Caribbean and attack have been much worse than in the the Northern part of South America, suffered aftermath of the Gulf War. In corresponding major decreases in traffic following half-year periods, current losses have been September 11th. close to 25%, while in 1991 they were just under 10%. On Far Eastern routes, the traffic trend had also been weak earlier in the year, at about – Following the September 11th attack, US 3% in mid-Summer, but this slumped to carriers on the North Atlantic were more more than a 20% loss in October and severely impacted than AEA, with November. September/October losses about four percentage points worse. In November- Early 2002 saw some recovery in this January, however, the US airlines managed market, and by March, traffic had almost to cut their losses to a level about two points returned to previous year’s levels, again at less than the European carriers were very high load factors. experiencing. Passengers to sub-Saharan Africa were North Atlantic - capacity down about 10% in the last four months of 2001, although early 2002 saw a recovery. Throughout the Winter schedule, AEA The North African market, however, lost capacity on the North Atlantic was maintained about one-third of its volume late in 2001 at a level some 20% lower than in Winter and had not substantially recovered in the 2000-01. early part of 2002.

TRAFFIC AND CAPACITY GROWTH IN 2001

12 76.5 8 -3.4 4 12 0 8 68.0 64.3-0.9 -9.9 -4 4 -8 60.3-5.9 0 -12 -4 -8 12 -12 -20.3 8 66.2 -3.8 4 -28.2 57.2 0 12 -10.4 -4 78.6 8 12 -8 0.4 4 8 -12 0 78.3 -12.4 72.4-8.3 Jan to Aug -1.6 4 12 -4 74.5 0 76.5 8 -8 12% -6.4 -21.2 -4 4.8 4 -12 8 RPK growth % load factor -8 74.2 0 4 -1.3 -15.9 -12 -4 + pt 01/00 - 0 -8 -4 ASK growth -12 -8 -12 Sep to Dec

I - 8 ASSOCIATION OF EUROPEAN AIRLINES AIR FREIGHT

The air cargo market for AEA airlines Historically, there has been a close suffered a similar before-and-after correlation between changes in US September 11th discontinuity to that interest rates – affecting domestic which affected the passenger market. demand – and Europe-US cargo, with Total traffic was down 5.4% in a time-lag of about eight months. January-August, jumping to minus 15.7% in the last five months of Thus, strong growth in early 1999 was the year. Overall, traffic was 7.6% associated with interest-rate reductions below the 2000 level. instituted eight months earlier, while the slowdown of growth from late 1999 Three-quarters of AEA carriers’ freight which persisted to mid-2001 followes a traffic is carried either on Far Eastern reversal of US policy. routes or across the North Atlantic. The September 11th tragedy occurred As recently as 1995 the two markets just as this model would have generated the same voulme of traffic, predicted a turn-round point in growth but consistently slower growth on the trends leading to a very strong North Atlantic (10% in six years recovery in the market. Instead, traffic compared to 60% for the Far East) has fell away strongly in this market, as it resulted in the former accounting for did throughout the AEA network. 31% of AEA airfreight, compared with 44% on Eastern routes. Indications for the first part of 2002 are that airfreight is recovering at a slightly Nevertheless, the North Atlantic, and in faster rate than passenger, with Far particular the US market, exerts a huge Eastern traffic already in growth and influence on the European, and indeed North Atlantic carriage beginning to the global, air freight industry. approach last year’s levels.

The US is by far the biggest market EUROPE-US: AIR CARGO vs INTEREST RATES outside Europe for the AEA airlines, with 1.1 million tonnes embarked and 3 000 Air Cargo growth basis point change 300 disembarked in 2001 – five times 2 500 250 US Interest Rate (inverted, 8 months ahead) bigger than the next-largest, Japan. 2 000 200 1 500 150 The US consumer market also 1 000 100 influences traffic in other regions – for 500 50 example, AEA carriers transport considerable quantites of clothes and 0 0 textiles from India (the 3rd-largest cargo -500 -50 market) to the US. -1 000 -100 -1 500 -150 Inbound US-Europe Air Cargo Reduction in demand in the US affects -2 000 -200 Terrorist Attacks on the USA such manufacturing supply-chains, -2 500 -250 while diminishing revenues on the part -3 000 -300 US interest rate basis point change of the exporting countries adverseley Sep-98 Sep-99 Sep-00 Sep-01 affects local demand in those (100 basis points = 1% point) countries.

ASSOCIATION OF EUROPEAN AIRLINES I - 9 OPERATING RESULT

Note: In the first quarter of 2001 the AEA Data in this section are aggregated from airlines lost an estimated $1.2 bn, which members’ financial year results and may was actually marginally better than in the differ slightly from the calendar year first quarter of 2000. figures elsewhere in the document. Figures refer to total scheduled services, Losses of $170m and $230m in the including Domestic, and those for 2001 second and third quarters of 2001 (the are estimates. latter of these including the 4-day closure of US airspace) were respectively $0.5bn The extraordinary events of September and $1.1bn worse than the 2001, occurring during a period of corresponding 2000 figures. substantial depression in the AEA carriers’ market, preduced, predictably, In the final quarter of the year, AEA an exceptionally poor result. members posted a staggering $1.4bn loss, up from $286m in 2000. The provisional figure for operating loss (after interest) for total AEA was US $ 3.0 In broad terms, the deterioration in the billion. This was indeed the worst figure financial result can be attributed almost on record, slightly greater than the loss in exclusively to the decline in demand both 1992. before and especially after September 11th. The corresponding figure for 2000 was a minus $360 million. Unit costs were unchanged from 2000, and there was virtually no change in yield The industry was loss-making throughout (unit revenue). Consequently, the the year, in contrast to 2000 when a breakeven load factor, at 69.5%, was reasonable profit was made during the only one-tenth of a point lower than in Summer months. 2000.

AEA AIRLINES' OPERATING RESULT 2000 2001 Total Scheduled Routes Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Overall Load Factor % 66.0 69.7 72.1 68.9 65.9 66.7 67.6 64.0 Break-even Load Factor % 69.7 66.1 66.7 68.8 69.7 65.6 66.6 69.1

Yield (US cent/RTK)* 71.3 70.9 71.0 67.6 70.6 71.7 70.8 68.2 Unit Cost (US cent/ATK)* 49.7 46.9 47.3 46.5 49.2 47.0 47.1 47.1

Operating Ratio before Interest 94.7 105.4 108.1 100.1 94.6 101.7 101.6 92.5 Net Interest Rate % 3.2 3.1 2.7 2.1 2.6 2.8 3.1 2.5 Operating Ratio after Interest 91.7 102.3 105.2 98.1 92.3 98.9 98.6 90.3

Profit/Loss after Interest (US$ mill)* -1 286 355 857 -286 -1 215 -173 -234 -1 400 * current US$

I - 10 ASSOCIATION OF EUROPEAN AIRLINES

Whereas in 2000 the achieved load Another cost category which is currently factor, at 69.2%, came close to the level in the spotlight is Flight Deck Crew – required to break even, the 2001 6.8% of the total in 2000 but likely to outcome of 66.1% fell very much short of increase in importance as a number of this target. major airlines face pressure from their pilot workforces to conclude potentially The fuel-price profile in 2001 was virtually costly pay and conditions packages. flat for most of the year, with a spot price at or just below US¢80 per gallon. COST DISTRIBUTION - REVENUE SHORTFALL

th After September 11 , the price actually Interest Miscellaneous 1.34 Flight Deck Crew fell, quite markedly, to around ¢55 at 2.89 3.34 year-end.

Overall, the average price throughout the Sales Fuel year was about 17% lower than in 2000, 7.57 48.90 Us¢ Cost per ATK 6.88 but substantially higher than in the latter 46.53 Us¢ Revenue per ATK part of the 1990s. 2.37 Us¢ Loss per ATK X 127.6 million ATKs

During the early months of 2002 the price 3.02 billion US$ began to rise once more, and by April Airport & Total Loss in 2001 (est.) was already 20% above the end-year Handling Aircraft level. 7.61 10.82

En-route charges 2.31 ROTTERDAM SPOT PRICES FOR JET FUEL Cabin crew & Passenger Service 6.16 120 US¢ per US gallon Sep 11th 2001 Strong world oil demand Another area of uncertainty concerns en- 100 route charges, which amounted to 4.7% average price US military of total expenses in 2000. In Europe, strike on Iraq 80 such charges are levied on a cost-

Economic slowdown recovery basis; that is to say, the costs in Asia incurred by Air Navigation Service 60 Providers (Air Traffic Control) are recovered from the airspace users by AEA fuel bill in 2001 (est.) 40 US$ 8.8 billion means of a unit charge.

In the depressed traffic conditions 20 th 1995 1996 1997 1998 1999 2000 2001 '02 following September 11 , the ATC providers have, for the most part, sought to protect their revenue streams by The potential impact on the airlines’ cost increasing their unit charge. base is obvious; in 2000, 14.0% of total expenses were for fuel. In 2001, the Effectively, the airlines are flying less, but AEA carriers’ fuel bill amounted to an are forced to pay just as much for en- estimated US $ 8.8 billion. route services.

ASSOCIATION OF EUROPEAN AIRLINES I - 11 FLEET

The combined fleet of the current AEA from service following the post- members stood at 2214 aircraft at the September 11th collapse of the market. end of 2001, compared with 2225 in the previous year. Accurate figures are unavailable, but it is estimated that AEA members withdrew The figure is net of a reduction of 160 about 130 aircraft – about 6% of the fleet due to Sabena (85) and Swissair (75), –eithertemporarily or permanently, in balanced by the 150 units contributed by advance of their planned retirement new members Swiss (129) and Meridiana dates. (21). Excluding these changes, the overall total was reduced by one. At the end of the year, the AEA orderbook stood at 362 aircraft, down The Airbus 319/320/321 family, with 450 from 426 at end 2000 and the lowest units, overtook the Boeing 737, with 419, figure since 1997. Of the total orders, to become the most numerous generic 56.5% were Airbus, 19.6% Boeing and type in the AEA fleet. 23.8% other manufacturers, principally Embraer. Nevertheless, Boeing (including McDonnell-Douglas) maintained its The orders include a number of types not dominant position with 53.3% of the total yet in service. This year and next will fleet, against 28.4% for Airbus. see the first -300 series stretch of the Boeing 777 (Air France) as well as two AEA AIRLINES' new aircraft attheother end of the scale: FLEET COMPOSITION the 100-seat Airbus 318 (British Boeing Other Airways/Air France) and the 70-seat McDonnellDouglas 18.3% 53.3% Embraer RJ170 (Swiss).

Swiss will also be the launch customer 2214 aircraft for the larger Embraer RJ195 in 2004, end 2001 while the ‘Superjumbo’ Airbus 380 is scheduled to join the Air France and Lufthansa fleets in 2007.

Airbus Industries JET AIRCRAFT ON ORDER 28.4% 800 aircraft

Asmallbutgrowingportion of the fleet 700 comprises the smaller regional jets. Boeing/McDonnellDouglas 600 Within this category were 118 current Other models from Canadair, Embraer and 500 Fairchild/Dornier, up from 72 in the 400 previous year. There were also a similar Airbus Industries 300 number of out-of-production types from Avro and Fokker. 200 100

The figures above do not take into 0 account aircraft temporarily withdrawn 1994 1995 1996 1997 1998 1999 2000 2001

I - 12 ASSOCIATION OF EUROPEAN AIRLINES WORKFORCE

At the end of 2001, the total workforce of Consequently, the most basic measure of the AEA member airlines stood at workforce productivity – ATKs per employee 362,000. –continued to rise in 2001, by 1.7%.

This was a somewhat lower figure than Ultimately, it is estimated that the impact the previous year’s 369,000, although of the 2001 traffic losses could cost as changes in the corporate structure of many as 50,000 jobs within the AEA some airlines – notably the absorbtion of membership. daughter companies – complicated the picture. Downturns in the fortunes of the industry have repercussions which spread beyond Nevertheless it is clear that the trend is the airlines themselves. A British study most definitely a downward one. In the suggests that for every airline job lost, uncertain industry climate before between four and ten other airport September 11th some airlines had already workers will lose their jobs, as well as a put workforce-reduction programmes in further three in the neighbourhood of the place, and after the attacks most others airport. followed suit. Another study, by the Belgian Federal Most airlines have avoided compulsory Planning Bureau, estimated that the redundancies and instead have sought to collapse of Sabena will cut Belgum’s control numbers by non-renewal of temporary economic growth in 2002 by 0.65 contracts and early retirement schemes, as percentage points and will negatively well as by freezing recruitment. affect the country’s trade balance by more than half a billion Euro. Cost savings have also been achieved by cuts in working hours and other job- PERSONNEL DISTRIBUTION (2000 DATA) flexibility measures. Others Flight Deck Crew 17.2% 8.0% Along with the drop in personnel numbers went a somewhat smaller Distribution and Cabin Attendants Commercial 22.2% decrease, of 1.7%, in output measured in 11.8% available tonne-km (ATKs). Catering 1.1% STAFF PRODUCTIVITY Aircraft and Maintenance (ATK per Employee) Traffic Handling and Overhaul 200 index 23.9% 15.8%

175 30% of the AEA workforce (in 2000) were flying staff, including 8% pilots and 22% cabin crew. The pilots, however, accounted 150 for 21% of the airlines’ salary costs.

125 24% of jobs were in aircraft and traffic handling, 16% maintenance and

100 overhaul, and 12% in distribution and 1991 1993 1995 1997 1999 2001 commercial functions.

ASSOCIATION OF EUROPEAN AIRLINES I - 13 PUNCTUALITY PERFORMANCE

AEA members experienced a slight drop These reduced levels of activity obviously in the proportion of flights delayed in had a beneficial effect in infrastructure- Europe in 2001, compared with the related delays, which accounted for 57% previous year. of all delays in the last quarter of 2001, the lowest figure for almost four years. In In all, 24.2% of intra-European contrast, infrastructure delays in the departures suffered a delay of more than Summer made up 70% of the total. 15 minutes. This result elevated 2001 to the third most delay-affected year on The list of airports ranked by total delay record. suffered had a familiar appearance. Heading the table once again, with The corresponding result for 2000 was 33.4% of intra-European departures 25.5%, and the 1999 figure, influenced delayed more than 15 minutes, was by the Kosovo conflict, reached 30.4%. MilanMalpensa. This was followed – as in 2000 – by Madrid, then Athens, Paris In each of the four first months of the CDG and Barcelona. year, the delay rate actually worsened. Then from May through September there The four airports least-hit by delays were was a slight improvement. also the same as in 2000: Oslo, Helsinki, Stockholm and Copenhagen, followed by October and November saw a sharp drop London Gatwick. in delays, but the December figure was once again very close to the 2001 level. Each of these, however, posted higher Delays in the first two months of 2002 delay rates than in 2000. Other airports were also very high. which experienced a significant deterioration in punctuality between 2000 The figures should be viewed in the and 2001 were Munich, Paris Orly, Milan context of a very modest increase in Linate and Dusseldorf. aircraft movements in the year to ber cem De 25 September. Compared to a typical January F eb annual growth of about 6%, the figures ru ar for 2001 were about 2% in the first 20 y quarter and 4% through the Summer. r 15 M e b a m r th e c v h Following the events of September 11 , o the number of flights in the last quarter of N 10 the year decreased by more than 8%. r

e 5

o t

REASONS FOR EUROPEAN A

p r

DEPARTURE DELAYS IN 2001 i l

% flights delayed > 15 minutes 5

2001 Average delay: 24.2%

e 10

Weather t

M p

a S 15

Airlines (pre-flight preparation) y

Airports and Air Traffic Control s u

g 20 u

25 n

I - 14 ASSOCIATION OF EUROPEAN AIRLINES e

y l u J

CONTENTS

September 11th, 2001 i

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES II - 1 THE POLITICAL RESPONSE

The effects on the airline industry of the the year. Funds included $5 billion in terrorist attacks in the USA on cash and $10bn in federal credit September 11th 2001 were immediate instruments. Separate funding and and devastating. guarantees were made available for insurance and security requirements, and Less than one hour after the first impact, for the maintenance of essential air US airports were closed. All inbound services. transatlantic flights were ordered to divert to Canada. Shortly afterwards, Canadian In Europe, the picture was much more airspace was closed. fragmented. Insofar as the EU Member States are concerned, any government For four days, transatlantic flights intervention must meet EU state-aid rules ceased. Aircraft were out of position, – as interpreted by both the Transport passengers and crew were stranded. and Competition Directorates of the European Commission. For the AEA airlines, the North Atlantic route was contributing about $36 million Inasmuch as the Commission may give in revenue per day, and accounting for its seal of approval to any individual more than 20% of total receipts. measure, this is likely to be conditional on common implementation throughout Meanwhile, on the services which did the EU – a package which may be non- operate, the market was staying away. discriminatory if everyone implements it In October 2001, the number of empty will become discriminatory if a significant seats on AEA members’ services was number of States choose not to. one-third higher than the year before. Consequently, issues have bounced The financial implications related to back and forth between the Commission insurance and security issues are and the EU Council, representing the discussed elsewhere in the Yearbook. In individual States, accumulating delay and the USA, much harder-hit, industry in some cases being watered-down. observers noted that virtually all the major carriers were potential Chapter 11 Financial compensation for losses has bankruptcy-protection candidates. In been limited to the four-day period of US Europe, the crisis precipitated the airspace closure, and payments are only collapse of two long-established national beginning to be made in mid-2002. carriers. Government underwriting of war-risk insurance has been grudgingly provided Such devastation of a key industry is as the industry develops its own clearly a matter of public concern. In the solutions, but there has been no US, the Air Transport Safety and System indication that States will shoulder any Stabilization Act was signed just eleven responsibility for the costs of additional days after the attacks. mandatory security.

This provided for compensation to air Meanwhile, competitive distortion carriers for damage resulting from the between the European airlines and their closure of US airspace, but also more generously-treated US counterparts incremental losses in the remainder of has grown.

II - 2 ASSOCIATION OF EUROPEAN AIRLINES SECURITY

The events in the US on September 11th There have been a number of factors 2001 involved breaches of airport and which directly affect the passenger. on-board security in ways that existing Earlier check-in deadlines and lengthier systems had not been designed to cope security procedures have led to longer with. overall travel times. More time spent at the airport means more congestion in the The suicidal nature of the attacks, the terminals. fact that the terrorists took physical control of the aeroplanes, and the Intensified physical checks, additional relatively inoffensive nature of their random searches and lengthy screening weaponry were all new factors for which interviews have all added an air of existing systems were unprepared. intrusiveness. Different national rules about what may or may not be carried, Since that date, procedures – in the USA, and different procedures for different in Europe and worldwide – have been destinations have also led to confusion. reviewed and revised, in ways both obvious and invisible to the passenger. However, while intensified security measures create some passenger Insofar as Europe is concerned, the EU inconvenience, they also add to the institutions have been working on the customer’s confidence in air transport. adoption of a Regulation on Aviation Security measures. The main operational consequences of tighter security measures have been In the USA, more immediate action has longer turnaround times, a higher been taken. An Aviation and Transport incidence of delay, and consequently the Security Act has been passed, in loss of some connecting possibilities due November 2001, and the Transport to the need to lengthen minimum transfer Security Administration set up, in times. February 2002. As different countries have introduced The US Customs and Immigration different rules, there has evidently been departments have also ruled on the some difficulty due to a lack of mandatory reporting of passengers’ international coordination and personal data on inbound flights. harmonisation. As the target and the primary victim of the terrorist attacks, the Additionally, many other individual USA has reacted the most swiftly and the governments, both European and non- most substantially. European, have introduced new measures. Individual airlines, too, have Directly after the attacks, the US taken initiatives to adopt new operational confronted all other countries’ carriers and staff training procedures. and airports with numerous new security requirements applicable to all flights to In adapting to these new requirements, and from the US. In some cases the European airlines and their requirements have been difficult or costly customers have been affected in a to implement, subject to very tight number of ways. deadlines or frequent updates, and

ASSOCIATION OF EUROPEAN AIRLINES II - 3

carrying heavy sanctions for non- development work on advanced aviation compliance. security technology.

It is obvious that the additional security Clearly, this is an area in which the US arising directly from the events of 11th competitors to the European airlines September carries a heavy price-tag, have found themselves in a much more from extra equipment, training, personnel favourable position. and external costs. The attacks of September 11th were As an example, an installation package aimed neither at the air transport industry for an aircraft, of modified cockpit doors, nor at the travelling public, but at society monitors, electronics, etc, could cost as a whole. It is entirely appropriate that € 70,000 exclusive of labour and training the airline industry is involved in ensuring costs and loss of revenues while the these circumstances do not recur, but not aircraft is out of service. that the industry should bear most or all of the costs involved. There is no common practice on the financing of aviation security measures in SECURITY IS EVERYONE'S BUSINESS... Europe. In some states the costs are ON THE GROUND largely borne by the government, in other Guarding and searching the aircraft countries they are paid for by a Aircraft night-stop surveillance passenger departure tax, or are charged Control of access to airside and specific airport areas directly to the operator. In many cases, Limitation of the number of airport passes Public areas for passengers only cost of construction or modification of Security measures for staff and crew members ground facilities will be passed from the Security of passengers airport to the airlines. Baggage-searches and screening Mail and cargo screening The European Commission believes that Segregation of arriving and departing passengers such additional measures should be funded by the state. The European Parliament agrees. The Council, IN THE AIR however, representing the Member Restriction of access to the cockpit Video monitoring of forward cabin States, has rejected this. Improved cockpit/cabin communication Inflight security personnel As long as this situation is unresolved, Items permitted/prohibited in the cabin there is no public money available for Security training research and development activity in the Staff background checks field of aviation security technology.

In the US the situation is rather different. For 2002, $3.5 billion has been made BEHIND THE SCENES available to airlines (including $500m for Civil/military cooperation cockpit door modification) and a further Threat analysis and data sharing $1.5bn to airports and ground service Certification of security staff providers. Further funding is available for International coordination and harmonisation providing airport security personnel and Avoidance of extra-territorial effects screening equipment, and for

II - 4 ASSOCIATION OF EUROPEAN AIRLINES INSURANCE

An immediate consequence for the leasing companies which own much of industry of the September 11th attacks the airlines’ fleets require their assets to was an upheaval in the way airlines be insured against such risks. insured themselves. Previously an obscure and specialised part of the Consequently, when the insurance business, this suddenly became a community cancelled all war-risk cover at prioirity issue for the industry. seven days’ notice, shortly after the attacks, the airlines were faced with the Broadly, airlines carry three kinds of prospect – depending on their national cover – for the aircraft itself, its payload, rules, their destinations and their leasing and third-party insurance to protect contracts – of being legally unable to people and buildings on the ground. operate.

Normally, operators have special In these extreme circumstances, arrangements with their insurers to cover governments stepped it to guarantee war and terrorism risks. In the case of war-risk cover until an alternative could third-party insurance, prior to September be arrived at. In the case of Europe, EU 11th, these risks had been very remote agreement that this was permissible indeed – terrorist acts had invariably under state-aid rules had first to be caused damage and loss only to the obtained. Alternative arragements in the aircraft and payload. form of a revised offering from the commercial insurance community did not Nevertheless, war risk cover was a vital materialise, in any affordable form. part of the insurance ‘package’, for a number of reasons: The airlines’ response has been to take the matter into their own hands, through A number of national licensing authorities the setting-up of mutual funds. A global insist airlines carry such cover as solution is being coordinated by ICAO, in statutory requirement. Some countries what will necessarily be a prolonged require all aircraft flying into and out of process. In the interim, the USA and their airports to be covered. Finally, the Europe have evolved their own models – ‘Equitime’ and ‘Eurotime’, respectively. AVIATION LIABILITIES: 2000-2001 Source: Aviation Insurance Offices' Association 11.9% The Eurotime project will offer airlines 37.5% Minor Losses war-risk insurance cover at an affordable 50.6% 2000 Hull Losses price – something which the commercial 1.7 bln US$ sector has failed to do. It also offers the 3.9% prospect of uninterrupted coverage in the event of another terrorist incident. 16.8%

It should not be overlooked that the 2001 airlines have also been faced with 5.6 billion US$ massive increases in the cost of their primary insurance of passengers and aircraft, from about US$ 15 million 79.3% th Liabilities annually before September 11 to more than $800m in present circumstances.

ASSOCIATION OF EUROPEAN AIRLINES II - 5 SLOTS

An unexpected consequence of had vacated would be restored to them, if September 11th was the activation of an needed, in Winter 2002/3. otherwise little-used provision of the EU Airport Slot regulation. Up to that point, they had been forced to take the risk that they might not be able At fully-regulated airports (which includes to reinstate flights to accommodate the most large airports in Europe) airlines are anticipated return of the market. allocated take-off and landing slots for a whole timetable season, namely April- These real-time slot issues were taking October and November-March. place against the backdrop of a wider- ranging review of the EU Slot Regulation. Under the principle of Historical This has been in place since 1993 and Precedence (sometimes called the experience of operating the system ‘grandfather rights’), airlines are allowed gained over that period suggests that a to retain slots from one season to the reappraisal of the rules might be in order. next corresponding one, that is to say Summer to Summer or Winter to Winter. However, the European Commission has indicated that this so-called ‘technical Under EU rules, this is permitted on a review’ should be expanded to call into ‘use it or lose it’ basis, that a slot must question the principle of historical normally be used 80% of the time to precedence. permit it to be carried over to the following year. There is some feeling within the industry’s regulators that liberalisation In the dramatic drop in traffic following has not produced ‘enough’ competition, the September attacks, airlines sought to particularly at busy airports, despite the trim their capacity, in particular by first Slot Regulation discriminating in cancelling flights for which the demand favour of new entrants. had evaporated; this brought into play the 80% rule. The AEA firmly believes that these are issues of market access which have no It was relatively quickly confirmed to the place in a technical review. industry that, in the exceptional circumstances, the ‘use it or lose it’ rule Slot availability is fundamental to the would not be invoked for the following well-being of the hub-based network Summer. carriers. The current system, whether or not it has technical shortcomings that However, the airlines had no such need to be addressed, has not hampered reassurance for the Winter season which in any way the growth in competition from began only seven weeks after the the ‘no-frills’ carriers. attacks, just at the time they were beginning to evaluate the downward shift The continued growth in competition in demand. between the global networks – bringing benefits to a much greater number of It was only after the 2001/2 Winter passengers – requires access to capacity season that the airlines who had cut back at the hub airports on a sustained and on capacity learned that the slots they predictable basis.

II - 6 ASSOCIATION OF EUROPEAN AIRLINES

CONTENTS

September 11th, 2001 i

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES III - 1 AEA CHAIRMAN’s MESSAGE: ‘REBUILDING THE FUTURE’

• People depend on air travel for business and pleasure. Global, national and regional economies depend on air links as drivers for prosperity.

• It is our duty – as airline companies – to meet that demand. Over the years, we have built route networks which connect the entire world and offer multiple travel options to our consumers. At the same time, our governments have tried to make the regulatory framework more efficient and consumer-oriented.

• In spite of these efforts, the air transportation system is not in good shape today. Passenger demand has slumped, airline margins have dropped substantially, public responsibilities have become unclear, and some airline companies have failed altogether. This is not good for our consumers, our employees, our shareholders, our communities.

• The September 11 effects once more brought to light fundamental weaknesses in the economics of the air transportation system. The attacks themselves do not suffice to explain their effects. Nor does the cyclical nature of the airline industry. What is going on?

• Looking at the situation from a broader perspective, the air transportation system involves a large number of participants in a value-added chain that leads to the final product for the consumer. The chain starts with the manufacturers of the aircraft, leasing companies, financiers and insurance companies; it continues with providers of support services such as airports, ATC, ground handling and catering; as well as labour forces; and it ends with distribution services such as Computer Reservations Systems, travel agents and, finally, the airline itself. Together, these players produce the air transport product. All are interdependent; but the airlines are the only ones that are ultimately held responsible vis-a-vis the consumer for the efficient processing of the entire chain.

• Over the years, vendors and service providers, as well as globalised labor groups, have steadily increased their prices and returns. At the same time, consumers ask for better services at lower prices. Being right in the middle, the airlines have seen their margins drop. In fact, over the past decade, the airlines have failed even to earn their costs of capital and are unlikely to do so in the future if nothing changes.

• Efforts to liberalise the regulatory framework of air transportation have ignored the broader dynamics of the value chain. Our recent discussions with the European Commission show that we have not been successful in sharing that broader picture with the regulators, to avoid a fragmented regulatory approach towards the many pending

III - 2 ASSOCIATION OF EUROPEAN AIRLINES issues such as airspace capacity, slots regulation, flight time limitations, foreign ownership, and passenger rights.

• A natural reaction to decreasing margins is to seek economies of scale. The situation in the United States indicates, however, that airline consolidation may be necessary and/or unavoidable, but will not be sufficient. After twenty years of deregulation and consolidation, the position of the US airline industry is not much better than in Europe.

• It is time to have a fresh look at the whole air transportation system. The network carriers can no longer afford to operate within the traditional framework of fragmented answers and isolated solutions. We can no longer simply explain the inefficiencies of a fragmented approach, both in terms of policy costs and financial costs, to our consumers and other stakeholders.

• For most consumers, there is no alternative to the airline networks. Low cost, point-to-point airlines are no substitute in the long- haul markets nor in the thinner short-haul markets that connect regional communities to the world. It is therefore our duty, as network carriers, to achieve an economically sustainable airline industry.

• We need to define priorities in the framework of future industry dynamics. It is up to us to put the various issues in a coherent context, from a thorough understanding of the value chain of the European air transport industry.

Leo M. van Wijk

KLM President & CEO AEA Chairman 2002

Leo M. van Wijk met with Loyola de Palacio in May 2002 to present the ‘Rebuilding for the Future’ message. Source: Audiovisual Library of the Commission

ASSOCIATION OF EUROPEAN AIRLINES III - 3 STRENGTHENING THE VALUE CHAIN

The AEA airlines, in 2001, earned € 66 Where airports are privatised, profit billion in revenues from passengers and margins are often far higher than those of cargo shippers. After paying all the bills, the airlines who serve them. The same however, the European airlines were left is true for other support services with a deficit of more than € 3 billion. operating at airports, such as ground- handling companies and aircraft caterers. While this was an exceptional result even by airline standards, it is the case that the Probably the largest profits in the value industry rarely earns its cost of capital, chain are earned by the computer even in profitable years. Essentially, reservations systems (CRSs), which are more value is lost in the lean years than able to earn margins of 30% or more. is created in the profitable ones. One link in the chain which is not profit- Where does all the money go? oriented is Air Traffic Control (ATC). It does not need to be, since, in Europe, it A significant proportion, of course, is operates on a cost-recovery basis spent internally, in the form of staff costs. administered by Eurocontrol. Airlines historically pay above market rates to their staff, and essential In other words, whatever is spent, on specialist personnel such as pilots and facilities, equipment, staff and running cabin crew are highly unionised. costs is passed directly to the airlines through user charges. Most of the money, however, is spent in a value chain which starts with the All these elements in the value chain aircraft and engine manufacturers and have a characteristic which sets them ends with the operation of the flight. apart from the airlines: they are all monopolies or oligopolies. The airlines are involved throughout the process, at every stage of which they Two airframe manufacturers, and three provide the livelihood of various supply engine-makers, provide all the Western- and support functions. built jets of over 100 seats. The two largest leasing companies have 45% of AEA airlines, which invariably use new the market. equipment, obtain their aircraft either directly from the manufacturer or from Very few airports offer a choice of more leasing companies. While these sectors than two ground handling and catering also have good and bad years, on service providers, while these sectors are average they achieve returns of about also consolidating on a worldwide scale. 15-16%, well above their cost of capital. Four CRSs provide distribution globally, Airports, too, can be prosperous but in individual local and regional businesses. In many countries where markets, one or other is dominant. airports are in public ownership, profits from major airports are sufficient to Airports compete with each other only at subsidise those serving small and remote the margins of the air travel business. communities. Hub-based networks certainly do

III - 4 ASSOCIATION OF EUROPEAN AIRLINES

compete with each other, but these are government guarantees. the creation of airlines, not airports. Governments, of course, also feature as Insofar as ATC is concerned, it is obvious beneficiaries in the value chain, through that, with airspace divided into country- a wide array of taxes, charges and levies. sized national systems and into Those same governments are also the predetermined airway networks, airlines industry’s regulators. It is in their have little flexibility in choosing their interests, as well as those of their routings from departure to destination. citizens, to have a healthy and dynamic airline sector. Even sectors not normally connected with the mainstream of air transport Policy comes at the airlines from all operation can find themselves in very angles – the environment, the consumer, strong bargaining positions vis-à-vis the labour, safety, competition – in an airlines. uncoordinated and fragmented fashion.

Recent experience has shown that the It is essential for the efficient functioning insurance community can make of the industry that a coherent policy is demands of the airlines which, if not met, evolved by regulators who recognise the can threaten their continued operation. need for the sector which links together Since commercial war-risk third-party the entire value chain – that is to say, the cover was withdrawn at the end of airlines – to benefit from it in equal September 2001, the industry has measure to the other participants. continued to function only with the

THE AIRLINE INDUSTRY HAS MANY DEPENDENTS...

OPERATIONS

AIRPORTS

AIR TRAFFIC CONTROL

HANDLING

CATERING

DISTRIBUTION

CRS (Computer Reservations Systems)

EQUIPMENT TRAVEL AGENTS

AIRCRAFT MANUFACTURER

ENGINE MANUFACTURER

LEASING COMPANIES

ASSOCIATION OF EUROPEAN AIRLINES III - 5 INFRASTRUCTURE PROVISION

Prior to September 2001, a major Growth plans that were in place before preoccupation of the European airlines September 11th must be pursued, was the need to ensure that airport and regardless of whether individual airports airspace capacity would match the have experienced temporary downturns industry’s future growth requirements. in traffic. The importance of ongoing capacity enhancement must be Subsequent events have caused the recognised. industry to redefine its immediate priorities, and capacity cutbacks have TOP 30 CAPACITY-CONSTRAINED AIRPORTS removed some of the pressure on congested facilities. Nevertheless, the Main Constraint problem has not gone away. AMSTERDAM Environment There is no reason to suppose that the ATHENS Runway current dip in demand will be an ongoing BASEL/MULHOUSE Local airspace phenomenon. Traffic will return to pre- BARCELONA Runway th September 11 levels, and thereafter will BERLIN TEGEL Terminal continue to increase. Perhaps at historical BRUSSELS Local airspace rates of growth, perhaps at a slower pace – what matters is that there was inadequate DUSSELDORF Environment infrastructure before, and without capacity FRANKFURT Runway growth, there will be again. GENEVA Runway HAMBURG Runway As regards airspace, the highest-priority HERAKLION Terminal issue is the achievement of the Single KERKYRA Terminal European Sky. The impetus behind this LANZAROTE Runway initiative is overwhelming, and it could become reality by early 2004, given one LISBON Terminal final demonstration of political will by the LONDON GATWICK Runway EU Member States. LONDON HEATHROW Runway LONDON LUTON Runway As part of this commitment, a programme MADRID Runway of harmonisation of civil/military airspace, MANCHESTER Runway and the separation of regulation and service provision at regional and national MILAN MALPENSA Environment levels must be pursued. MUNICH Runway NICE Local Airspace The overhaul of European airspace OSLO Environment would offer the potential of adequate en- PARIS ORLY Environment route capacity for the foreseeable future. PARIS C. DE GAULLE Local Airspace

RHODES Terminal On the issue of airport capacity, Europe badly needs a coherent airport policy to ROME FIUMICINO Terminal address the scarcity of infrastructure that STUTTGART Terminal has been identified as the main long-term VIENNA Runway constraint to air transport growth in ZURICH Local Airspace Europe. Source: EUROCONTROL AOT

III - 6 ASSOCIATION OF EUROPEAN AIRLINES

CONTENTS

September 11th, 2001 i

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES IV - 1 AIRLINE PASSENGER COMMITMENT

In the early part of 2001, the industry and consumer groups which had Airlines signatory to the Airline Passenger been engaged in formulating the Airline Service Commitment shall... Passenger Service Commitment completed their task and presented the 1. Offer the lowest fare available through document to the ECAC/EU Dialogue each of its direct outlets conference in Lisbon on May 10th. 2. Honour the agreed fare after payment The process had involved a unique consensus between the different airline groupings, consumer representatives and 3. Notify passengers of known delays, cancellations and diversions regulatory authorities, although the initiative had originated within the AEA. 4. Assist passengers facing delays Subsequently, a target date for implementing the Commitment was set 5. Deliver baggage as quickly as possible for 14th February 2002. The Civil Aviation Directorates of the ECAC Member States 6. Allow telephone reservations to be held or opened up the document for signature in cancelled without commitment or penalty each country. within 24 hours

In the intervening period, of course, the 7. Provide prompt refunds global airline industry suffered its greatest setback on September 11th. Although evidently preoccupied with the 8. Provide assistance to passengers with unfolding crisis, the AEA airlines decided reduced mobility and passengers with that the implementation of the special needs Commitment should remain a priority, and that the planned timetable should be 9. Meet passengers' essential needs during adhered to. long on-aircraft delays

By June 2002 one hundred airlines had 10. Take measures to speed up check-in signed the Commitment, including virtually all the AEA members, as well as 11. Reduce the number of passengers who a strong representation from the are involuntarily denied boarding Regional and Leisure carriers.

This broad spectrum of the industry has 12. Provide information to passengers regarding its commercial and operational substantially satisfied one of the conditions requirements of the European Commission in endorsing the Commitment – that it should be inclusive, 13. Provide information on operating carrier with not only a large number of subscribers, representing different parts 14. Be responsive to passengers' complaints of the airline sector.

IV - 2 ASSOCIATION OF EUROPEAN AIRLINES Plan de Calidad COMPROMISO DE SERVICIO CON LOS PASAJEROS

Our Commitment to You British Airways has a commitment to service excellence and has emphasised this by signing the Airline Passenger Service Commitment.

British Airways is focused on delivering a superior product and service to El desarrollo del compromiso de servicio con los pasajeros viene referido a lo siguiente: our customers so that we remain the airline of your choice. 1.- Ofrecer la tarifa m·s barata disponible en cada uno de sus medios directos de Your safety and security is of our utmost importance and will never be compromised. distribuciÛn. 2.- Respetar la tarifa acordada despuÈs del pago. British Airways constantly reviews and develops its products, services and 3.- Notificar a los pasajeros los retrasos, cancelaciones o desvÌos. policies and may need to change, update, or withdraw services without 4.- Asistir a los pasajeros que sufran retrasos. prior notification. 5.- Agilizar la entrega del equipaje. 6.- Permitir que las reservas por telÈfono se mantengan o cancelen sin ning˙n oneworldTM compromiso o recargo dentro del perÌodo de 24 horas. 7.- Agilizar el pago de los reembolsos. Before Travel 8.- Dar asistencia a pasajeros con movilidad reducida o con necesidades especiales.

At the Airport 9.- Atender las necesidades esenciales de los pasajeros durante retrasos largos a bordo de la aeronave. Refunds on Tickets Purchased Directly 10.- Tomar medidas para agilizar el proceso de facturaciÛn. 11.- Reducir del n˙mero de pasajeros a los que se deniega el embarque. Customer Comments and Complaints 12.- Proporcionar a los pasajeros informaciÛn sobre las condiciones comerciales y operativas. For our Customers with Special Needs 13.- Proporcionar informaciÛn sobre la compaÒÌa operadora. 14.- Atender con interÈs las reclamaciones de los pasajeros.

oneworldTM

British Airways is part of the oneworld alliance which was launched in February 1999. It is a network of quality airlines working closely together to complement each otherís services to ensure customers receive P·gina 2 de 31 ENERO, 2.002 integrated seamless travel.

Currently the following eight airlines form the alliance: Aer Lingus, American Airlines, British Airways, Cathay Pacific, Finnair, Iberia, LanChile, Qantas.

Each of the oneworld alliance carriers offers a commitment to: the belief that the customer is at the heart of the business. outstanding customer service. the importance of its people. service standards such as punctuality, check-in, baggage handling and inflight service, all of which are monitored constantly. Products & Services

Every six months, all members measure their performance against an Products & Services established set of performance standards. This is to ensure that the level of service to passengers is consistently high across the entire oneworld alliance.

oneworld benefits are available to customers on scheduled flights that are Our Customer Service Plan

Preamble

Lufthansa is operating more than 540.000 flights and carrying over 45 million passengers per year. We are one of the leading airlines in the airline industry and the expectations of our customers are understandably high.

The rising number of passengers encourages us in our continuing effort to offer the best customer service possible. It is Lufthansaís aim to make every flight a safe and pleasant experience and further enhance customer At bmi british midland, we continue to strive to offer the best possible comfort on the ground and in the air. customer service and value. We have set performance standards in every aspect of our business to enable our staff to meet and exceed your The Lufthansa Customer Service Plan is another step to reach this goal. It has been developed to reflect our needs. This year, together with other major European airlines bmi is commitment to treat our customers in a fair, courteous and prompt manner and to provide them with clear implementing a series of standards known as the Airline Passenger Service Commitment (APSC). We want to ensure that you are aware of information about what they can expect us to do, particularly during the occasional, inevitable irregular the standards we have set and what you can expect from us. operations.

Here are our commitments ... The plan contains specific, voluntary service commitments and addresses all areas of travel experience from making a reservation to deplaning at the final destination. 1. to offer you the lowest available fare We will offer you the lowest applicable fare for your journey. For bookings made through our own reservations offices or website, we will offer you The Lufthansa Customer Service Commitments listed below will clearly state our policies. In addition they will the lowest available fare for the date, flight and class you request. We will allow us to act promptly when we fail to meet our customerís expectations. also ensure that you are advised of the terms and conditions applicable to the fare chosen including applicable taxes. 1. Offer the Lowest Fare Available 2. honour the agreed fare after payment Once your ticket has been purchased the price is guaranteed. There will Lufthansa commits to offer customers who call our Lufthansaës Reservation Call Centers or check Lufthansaís own be no subsequent increase levied by the Airline except in the event of the web site the lowest appropriate fare for which they are eligible available through the respective channel, introduction of additional taxes, fees or charges by external parties. depending on the choice of day, time, routing and available seats on the aircraft. 3. notify you of known delays,cancellations and diversions We know that when we are late, itís annoying. We will notify you as soon If specific information about travel requirements cannot be provided by the customer, the representative will as we can about any delays known to us so that you are in a position to provide a range of fares to meet the customerís general needs. notify others or make informed decisions regarding alternative plans.

4. assist you during a delay The customer will always be informed by Lufthansa about the applicable fare and any other applicable fees, Except in the case of mass disruption, we will provide assistance to you charges and taxes. during long flight delays.

Please note that at the time the fare is quoted, lower fares may be available through other distribution channels. Our refreshment policy commences after 90 minutes with an escalation according to the expected length of delay. We may decline refreshments if to do so would potentially cause a further delay. 2. Honour the Agreed Fare after Payment In the case of flight cancellation, we will rebook you as soon as possible. If the cancellation was within the Airlineís control, we will provide Once payment for the ticket has been made, no fare increase will apply for the date, flight and class of service overnight accommodation if necessary, transport to and from the hotel booked for the ticketed itinerary. However, any change in fees, charges and taxes may be subject to additional together with appropriate meals. payment or refund.

5. return your baggage to you as quickly as we can We know that you will want to leave the airport as soon after arrival as 3. Notify Customers of Known Delays, Cancellations and Diversions possible and therefore, we have set individual targets, for each airport, to have baggage delivered into the Reclaim Hall. In most cases, we would hope to return your baggage to you within 30 minutes of arrival. Lufthansa will provide customers at the airport and onboard an affected aircraft, in a timely manner, the best available information regarding known delays, cancellations and diversions. If your baggage is delayed, we will immediately raise a report and make every effort to locate and retrieve your baggage as soon as possible using It is our policy to contact our customers in advance, whenever reasonable and if a phone number is available. our computerised tracing system. We will deliver it to your preferred address, free of charge within six hours of its arrival (same day) or first thing the following morning. We will reimburse essential purchases upto Customers can always access the arrival and departure information by calling the Lufthansa Reservation Center, £50 for any customers without baggage overnight or , where appropriate, via the Lufthansa Internet Pages or by using the Lufthansa WAP Services and SMS. provide you with an overnight amenity kit.

Should your baggage sustain damage whilst in our care, any repair will be at our cost or in the event of irreparable damage, we will either replace

O UR AIRLINE PASSENGER SERVICE COMMITMENT.

Scandinavian Airlines Passenger Service Contact us Commitment Service commitment Our commitment to passenger service is nothing new. We have Airline Passenger Service Commitment.

English traditionally listened to customers and led the way in developing Commitment 1 We Offer the Lowest Fare Available new services and benefits based on existing and emerging needs. through each of Our Direct Outlets. 5 Danish

Your welfare and well being are a prime concern to us and we work Commitment 2 We Honour the Agreed Fare After Payment. 5 Swedish hard to improve the comfort, convenience and simplicity we offer Commitment3 We Notify Passengers of Norwegian Known Delays, Cancellations and Diversions. 6 you in all aspects of your travel. Policies We therefore had no hesitation in influencing and implementing the Commitment 4 We Assist Passengers Facing Delays. 6 SAS new web site terms of the Airline Passenger Service Commitment. The idea was Commitment 5 We Deliver Baggage as Quickly as Possible. 7 developed by the airline industry in Europe, the European Commitment 6 We Allow Telephone Reservations to be FAQ Held or Cancelled without Commitment or Penalty. 7 Commission and representatives of consumer groups. Commitment7 We Provide Prompt Refunds. 7 The commitments are a promise of quality service in relation to 14 Commitment8 We Provide Assistance to Passengers with areas, before during and after your travel. We do not regard them as Reduced Mobility and Passengers with Special Needs. 8

a one-off measure. We will continue to improve on and extend them Commitment 9 We Meet Passengersí Essential Needs as part of our ongoing efforts to provide you with the service you during Long On-A ircraft delays. 9 want and need. Commitment10 We Take Measures to Speed Up Check-i n . 1 0 We look forward to serving you in the near future. Commitment11 We Reduce the Number of Passengers Who are Involuntarily Denied Boarding. 10 Welcome aboard! Commitment12 We Provide Information to Passengers Regarding our Commercial and Operational tions.Condi 10

Service Commitment - Before travel Commitment13 We Provide Information on the Operating Carrier. 12 Service Commitment -During travel Commitment14 We are Responsive to Our Passengersí Complaints. 12 Service Commitment - After travel ASSOCIATION OF EUROPEAN AIRLINES IV - 3 SATELLITE NAVIGATION RADIO FREQUENCY SPECTRUM

The European Commission has Along with airports and airspace, there is proposed that Europe develops, funds another essential element of air transport and operates, as from 2008, a infrastructure: radio spectrum. constellation of navigation satellites independent from, but fully interoperable Most of the new technologies which hold with, the US navigation satellite system out the promise of improved Air Traffic GPS. Management in Europe depend in one way or another on the electronic The development of Galileo SatNav is transmission of data. expected to cost at least € 3.6 billion. The current proposal requests a contribution Satellite navigation, communication from private industry of € 2.35bn through between the cockpit and the ground, air- a public-private partnership. to-air collision avoidance systems, automatic landing systems – all need AEA has no objections, as such, to undisturbed and reliable radio Galileo and welcomes new technological frequencies. developments through public budgets. However, at present any added value for Like airport slots, radio frequencies are in aviation of Galileo is far from clear. short supply. Unlike slots, however, it is physically impossible to increase the The airlines’ main concern is that a usable frequency band. Also unlike slots, principal source of investment in Galileo competition for the frequencies comes is foreseen to be the Air Traffic Control from outside the aviation industry. community. The Commission has already approached the EU ATC service The telecommunications sector has an providers, as well as Eurocontrol, asking insatiable appetite for frequencies. them to participate in the project. Unfortunately for the airlines, this same sector is also the arbiter in matters Financing of ATC expenditure is normally relating to the distribution of radio achieved through cost recovery from the spectrum, since frequencies are airspace users. This applies equally to allocated by the International the Eurocontrol budget. Telecommunications Union at their World Radio Conferences. A successful Galileo programme could have very many beneficiaries. It is only Recent developments in Europe, leading necessary to look at the broad range of to the adoption of a Common EU Legal uses made of the free-to-end-user GPS Framework for Radio Spectrum, system. recognise the needs of all users, but the process remains Telecom-dominated. It may be that civil aviation could derive gains from the project, but this is by no Without access to the frequencies it means evident. Until such benefits can needs, the aviation sector will find it be clearly demonstrated, the airlines impossible to sustain the technical should not find themselves, indirectly, the progress required for its future major source of funding for the ‘private’ development. part of the public-private partnership.

IV - 4 ASSOCIATION OF EUROPEAN AIRLINES AIRCRAFT NOISE

At the ICAO General Assembly in Akey element of the Directive is the October 2001, a resolution was adopted application of the Balanced Approach, which, for the first time, expressed the within which Member States may impose unanimous consensus of the worldwide operating restrictions, partial or total, aviation community on both aircraft noise after assessing the noise situation at their and gaseous emissions. airports.

The most obvious outcome was the In practical terms, this foresees a phased definition of a new Chapter 4 noise withdrawal of current aircraft which do standard for future aircraft. not beat today’s Chapter 3 limits by at least five decibels, accumulated over the Aircraft noise is measured at three points three measuring points. –overhead on approach and take-off, and sideline on take-off. The new It can be anticipated that the main standard requires a reduction in all three European airports with strict noise relative to current limits, with an constraints will initiate the phase-out accumulated decrease of 10 decibels. procedure provided for in the Directive, and that these aircraft types will be This new standard will apply to all new progressively withdrawn between 2004 aircraft with effect from the beginning of and 2009. 2006.

Just as importantly, the ICAO Resolution CHAPTER 3 -5dB PHASE-OUT TIMEFRAME proposed and defined a Balanced Approach to noise management at airports. This involves proper cost- OCTOBER 2003 benefit analysis of any eventual operating Latest date for the transposition of the Directive restrictions as well as noise abatement into national law procedures andland-use planning around airports. APRIL 2004 No new services operated at candidate airports It is an established paradox that, as with Chapter 3 minus 5dB aircraft aircraft become quieter, potentially noise- sensitive development, such as housing, OCTOBER 2004 tends to encroach more closely on the Phase-out of Chapter 3 minus 5dB aircraft, airport perimeter, cancelling out the at an annual rate of no more than 20% of the benefits that technology delivers. total number of movements operated with these aircraft The ICAO Resolution recognised the need for regional flexibility, particularly as APRIL 2007 regards European requirements, and with Revision of the Directive definition of marginally compliant aircraft in favour of a more stringent this background, the European requirement Commission has published a draft Directive aimed at implementing noise- reduction measures at Community OCTOBER 2009 Completion of the phase-out of Chapter 3 airports – and, at the same time, defusing minus 5dB aircraft the EU-US hush-kit dispute.

ASSOCIATION OF EUROPEAN AIRLINES IV - 5 EU/US AVIATION RELATIONS

In early 2002, the EU’s Advocate- The most significant part of the General issued an Opinion on the Advocate-General’s Opinion concerned Community’s external aviation relations, ownership and control clauses in the in advance of a decision by the European bilaterals – in other words, those which Court of Justice on the ‘Open Skies’ restricted operations between the two agreements concluded between the US countries to airlines domiciled in either and individual EU Member States. the US or its bilateral EU partner.

The Advocate-General’s Opinion, Such clauses in bilaterals which have although dealing with technicalities within been substantially changed since the the bilateral agreements between the creation of the Single Market – i.e. by the States concerned, was an important step adoptation of ‘Open Skies’ provisions – in that it established an EU dimension may be considered to be contrary to within such agreements. Community law.

In effect, the Opinion established the This reflects the internal structure of the principle of ‘mixed competence’ (i.e. of single European market, within which the Community and of the Member there are no ‘German airlines’ or States) in external air transport relations. ‘Spanish airlines’, only EU airlines permitted to operate freely throughout the While it did not go very far down this EU. road, it created a precedent which will point the way to more intensive These developments are unlikely to lead, involvement of the EU in the field of in the short term, to the large-scale external aviation relations. introduction of seventh-freedom operations – that is to say, with

origin/destination both outside the TEN YEARS OF "OPEN SKIES" operator’s home country. BILATERAL AGREEMENTS WITH THE US

However, they do represent a first

Sweden step towards the dismantling Iceland May-95 of the nationality principle May-95 Finland which is widely regarded as Norway May-95 May-95 one of the principal obstacles to industry consolidation.

Denmark May-95 Meanwhile, the creation of a The Netherlands Transatlantic Common Sep-92 Germany Aviation Area, in effect a Feb-96 Belgium Czech Republic free-trade zone for aviation Lux. May-95 Dec-95 May-95 Austria between the EU and France Switzerland May-95 the USA, remains high Oct-01 May-95 on the agenda of the European Commission Italy Portugal Nov-98 and is fully Dec-99 Turkey Mar-00 supported by the Malta AEA. Oct-00

IV - 6 ASSOCIATION OF EUROPEAN AIRLINES

CONTENTS

September 11th, 2001 i

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES V - 1 1

5 AEA HIGHLIGHTS OF 2001

In 2001 Mr Jean-Cyril Spinetta, Chairman and CEO Photo Gallery of Air France held the post of Chairman of the AEA. A Brussels meeting of the AEA The position is held for one calendar year, by a President’s Committee, 24th January member airline’s President/CEO. Together with the 2002.

Presidents’ Committee, the Chairman has the task of 1. From left to right: Five of the seven overseeing the AEA's broad ranging work members of the 2002 AEA President’s programme. Committee: Fausto Cereti, Chairman of Alitalia; Jean-Cyril Spinetta, Chairman of Air France; Leo M. van Wijk, CEO of On the on-going topic of cockpit and cabin crews’ KLM; Jürgen Weber, Chairman & CEO Flight Duty and Rest Time and the search for a of Lufthansa, Rod Eddington, Chief Executive of British Airways. formula which will bring some harmonisation to existing national rules whilst protecting existing safe 2. From left to right: Fausto Cereti; operating procedures, 2001 saw a breakthrough, Jean-Cyril Spinetta; Jan-Ernst de Groot of KLM Government & Industry Affairs; after ten years of negotiations, with the tabling of a Leo M. van Wijk; Karl-Heinz draft proposal to Parliament by MEP Brian Simpson. Neumeister, AEA Secretary General; Jürgen Weber.

For the past two years the AEA has worked on 3. Leo M. van Wijk developing a voluntary agreement for an Airline 4. Jean-Cyril Spinetta Passenger Service Commitment. The 14-point 5. Jean-Cyril Spinetta, meeting with framework for service to the passenger in terms of Loyola de Palacio, Vice President of information and assistance was developed in an the European Commission, in July extensive consultation process with other airline 2001. groupings, air travellers' representatives, ECAC and Page V-10. The full AEA Assembly of the Commission, and culminated in an official signing Presidents meets twice yearly, seen ceremony in February 2002. here at the Spring 2002 meeting in Brussels.

In the aftermath of the devastating events of 15. Güliz Oztürk, Senior VP Marketing September 11th some new topics appeared on the & Sales of Turkish Airlines; André Dosé, President & CEO of SWISS agenda of the AEA, such as insurance coverage International Airlines; Xabier de Irala, against war and terrorism. Other issues received Chairman & CEO of Iberia and member renewed and urgent emphasis, such as security of the AEA Presidents’ Committee. questions and, with Winter and Summer schedules 16. From left to right: Miroslav Kula, significantly reduced, slot allocation. President of CSA; Branko Lucovnik, President of Adria Airways; Novica Vulic, VP Commercial at JAT; Ivan In January 2002, Mr Leo M. van Wijk, President & Misetic, President & CEO of Croatia CEO of KLM, took up the position of AEA Chairman. Airlines. ‘I consider it an honour to be AEA Chairman in ‘the 17. Pierre Jeanniot, Director General & year after’ ’, said Mr van Wijk, alluding to the difficult CEO of IATA and Karl-Heinz year air transport experienced in 2001. ‘As such, it is Neumeister, Secretary General of AEA. my aim to contribute to a structural discussion on the 18. Jorgen Lindegaard, President & economic sustainability of the European airline CEO of SAS and member of the AEA industry.’ Presidents’ Committee.

19. Vagn Soerensen, Chief Executive AEA membership underwent some changes in 2001- Officer of Austrian Airlines and Rod 2002. Whilst two founder airlines - Sabena and Eddington. Swissair - ceased activities, two new airlines joined from 1st April 2002: SWISS and Meridiana. 20. Predrag Vujovic, President of JAT.

ASSOCIATION OF EUROPEAN AIRLINES V - 3 In September 2001 AEA presented the activities which its member airlines are undertaking in the environmental field, as part of a major exhibition which took place in Belgium. The exhibition - entitled ‘Greening Transport’ - was a feature of the Council of Transport and Environment Ministers, hosted by the Belgian Presidency of the EU at Louvain-la-Neuve on th 15-16 September.

The show brought together exhibitors and possible solutions from logistics firms, non-governmental organisations, passenger transporters and vehicle manufacturers. AEA, which was invited to attend on behalf of the aviation sector as a whole, chose to emphasize the variety of environmental initiatives Photo Gallery taking place within the industry, with stands from 6. The assembled delegations of AEA eight individual member airlines presenting different and the exhibitor member airlines. aspects of their ongoing environmental programmes: 7. The Spanish Minister responsible for transport, Francisco Alvarez-Cascos • Air France on possibilities for inter-modality on (middle) and colleagues talking to the short-haul routes: air passengers on trains. representatives of Iberia.

• British Airways on improving access to, and 8. Tineke Netelenbos, Minister of reducing road congestion at the airport. Transport of the Netherlands shaking • Finnair on de-icing. hands with Patrick du Bois of Sabena, with the stands of KLM and British • Iberia on reducing catering waste and recycling. Airways in the background. • KLM on inter-modality: air cargo on trains. • 9. Exhibition promoters Isabelle Durant, Lufthansa on reduction of fuel consumption and Deputy Prime Minister and Minister for emissions. Mobility and Transport (left) and Magda • Sabena on reducing aircraft noise. Aelvoet, Minister for Consumers, Public Health and the Environment (right) of • SAS on integrating environmental considerations Belgium, and Patrick du Bois. into business practices.

Association of European Airlines 6

8 9 10

12 13

14 MISSION STATEMENT

The Association of European Airlines shall in general serve the common interests of the members of the Association.

It shall represent the interests of its members to the institutions of the European Union, to the European Civil Aviation Conference, to any other institutional organisation or association involved in or likely to be involved in issues of interest to AEA members and, as appropriate, to individual governments.

It shall advance the co-operation amongst its members on any matter likely to be of interest to the Photo Gallery membership as a whole and permitted by the laws of Representatives of the European the countries in which they operate, whilst respecting Cockpit Association, the European the independence of action of its members Transport Workers Federation, AEA individually. and other European airline associations meet with the EU Parliamentary rapporteur on the on-going topic of cockpit and cabin crews’ flight duty and MEMBERSHIP CRITERIA rest time.

10. Karl-Heinz Neumeister, Secretary A new member of the AEA shall be registered in, General of the AEA, shaking hands licensed by, and with principal place of business in with Brian Simpson, Member of the European Parliament and rapporteur. an eligible European country, as listed in the AEA On the right, David Condon, European statutes. Affairs Manager for Aer Lingus.

11. Captain Teddy B. Iversen, A new member should have been engaged in Chairman of the European Cockpit passenger or cargo air transport operations in the Association (ECA); Brian Simpson; last three years. Membership is open to all airlines: Giancarlo Crivellaro, Secretary General of ECA; Mike Ambrose, Director international, domestic, scheduled and charter General of the European Regions passenger operators and all-cargo operators. Airline Association (ERA); Karl-Heinz Neumeister, Marc Frisque, Director General of the leisure air travel group The size of a member’s operations shall be International Air Carrier Association significant. When determining size of operations a (IACA). number of criteria can be used but one guiding factor 12. From left to right: Cecilia Fahlberg is number of aircraft seats operated, which shall be of the Salaried Employees’ Union HTF of the order of 3,000 minimum or for all-cargo of Sweden, representing the European operators a minimum payload of approximately 500 Transport Workers Federation (ETF); Brian Simpson; Bent Gehlsen of Cabin metric tonnes. If such criteria are not met by the Union Denmark and Stephen Flanagan, major airline in a country, exemption from the above Head of Resource Planning at Crossair, is possible. both from ETF.

13. From left to right: Manfred Merz, New membership is subject to acceptance by the Industrial Relations of Lufthansa; Phil AEA Assembly of Presidents. Stubbs, Industrial Relations of British Airways; Sefik B. Yüksel, AEA General Manager Trade & Social Affairs.

14. The meeting in progress.

ASSOCIATION OF EUROPEAN AIRLINES V - 7 Sefik B. Yüksel General Manager Trade & Social Affairs Sefik was Marketing Director of THY when he joined AEA where he has been serving for many years. He organised the GDS study leading to Amadeus and Galileo CRSs, the Ticket Automation work (ATB) and founding of the ‘Airplus’ Credit Card company. Recently, he negotiated the Airline Passenger Service Agreement with consumers at the ECAC/EU dialogue and the Working Time agreement with the pilots - cabin crew unions which became an EU Directive. He represents AEA regularly at EU, ECAC, CAA and FAA meetings.

Le Thi Mai General Manager Infrastructure & Environment Since joining the AEA from Air France in 1993, Mai has gained the reputation of an energetic fighter for environmental causes. On the topical issue of noisy aircraft, the regulators would undoubtedly agree with the joking suggestion of her airline colleagues that she should herself be ‘hush-kitted’! Mai’s responsibilities also cover issues of infrastructure, ground-handling, inter modality, airport charges, …

René Fennes General Manager Public Policy A former bureaucrat of the Netherlands’ civil service (Economic Affairs and Civil Aviation) and Eurocrat of the Commission (DG TREN, air transport), René joined the AEA in 2001. After a brief stint in the Technical department, he was mercilessly thrown in at the deep end, taking over as General Manager of Public Affairs on the historic date of September 11th, and the start of the biggest crisis to face the airline industry in its history. His tasks since then have principally revolved around this issue in all its facets.

Horst Bittlinger General Manager Technical & Operations The newest addition to the AEA staff, Horst brings 13 years of experience at Lufthansa and as Secretary General of the Board of Airline Representatives in Germany (BARIG) with him to his duties as GM Technical & Operations. He has inherited the Single Sky over Europe dossier, which AEA first suggested more than a decade ago, but other issues include airport and airline security and the Galileo satellite navigation system proposals.

David Henderson Manager Information David joined the AEA from British Airways in 1980. Initially the keeper of the statistical data-collections this task expanded to encompass more analysis, research and commentary, and, as AEA gained recognition, eventually saw David become the nominated spokesman for AEA, presenting and representing the Association in the public domain. Amongst his tasks, David produces the AEA press releases and is the author of the AEA Yearbook. THE AEA TEAM

AEA Chairman for 2002 Leo M. van Wijk KLM

Presidents’ Committee Jean-Cyril Spinetta Air France Fausto Cereti Alitalia Rod Eddington British Airways Xabier de Irala Iberia Leo M. van Wijk KLM Jürgen Weber Lufthansa Jørgen Lindegaard SAS

AEA Secretariat Staff

The Brussels team of AEA counts 21 members of staff, of 10 different nationalities.

Karl-Heinz Neumeister Secretary General Doreen Blow Executive Assistant

René J. Fennes General Manager Public Policy Le Thi Mai General Manager Infrastructure & Environment Yvonne Hopkins Senior Secretary

Sefik B. Yüksel General Manager Trade & Social Affairs Miriam Swan Senior Secretary

Horst Bittlinger General Manager Technical and Operations Vincent De Vroey Manager Operations and ATM Hanna Tiainen Assistant Technical Affairs Ann Flynn Senior Secretary

Susan J. Lockey Manager Research & Statistics Dario Spila Research Analyst David Lyssens Statistical Analyst

David Henderson Manager Information Anne-Marie Weirauch Press Secretary

Seya T. Immonen Senior Manager Finance & Administration Nathalie Mulleners Senior Secretary

Mario De Smedt Manager EDP

Jozef Swalus Printer Didier Poriau Desktop Publishing

18 19 20 Adria Airways Kuzmicevaˇ 7 1000 Ljubljana Slovenia

Tel. +386 1 43 62 499 Fax. +386 1 43 69 233 [email protected] www.adria.si

Review of 2001 Branko Lucovnik,ˇ President

2001 in numbers: 0.80 million passengers transported, 86% on scheduled services within Europe, 14% on charter services. 4.2 23 Scheduled Destinations thousand tonnes of freight carried on passenger services. 1 within Slovenia 21 rest of Europe In 2001 Adria celebrated its fortieth anniversary. Established in 1 beyond Europe 1961 as ‘Adria Aviopromet’, Adria’s first fleet consisted of four propeller-driven DC6 airplanes. The company’s domestic 577 Employees scheduled network was supplemented with charter operations to all continents except Australia. In 1986 the Slovenian carrier 7 Aircraft in Fleet was renamed Adria Airways. Adria became a member of the 3 Airbus A320 AEA in 1995. 4 Canadair CRJ-200

In October 2001 Dr. Branko Lucovˇ nik was appointed president 0 Aircraft on Order of Adria Airways. Prior to his appointment he served as acting president for a period of six months. Status at 31st December for information on destinations, employees and fleet. Adria Airways’ financial results for 2001 recorded a net profit of € 752 thousand, marginally lower than previous year’s result of Owned by… € 759 thousand. Turnover stood at € 107,672 thousand, up 75% Development Corporation of 2.5% on 2000. The operating margin (turnover less expenses) Slovenia € € stood at 2,633 thousand, compared to a negative figure of 16% Slovenian Investment Funds 713 thousand in 2000. 9% Nova Ljubljanska Banka

In 2001 Adria Airways signed an agreement for joint flights on Owner of… the Ljubljana-Vienna route with Austrian Airlines. Adria already - operated code-share flights in partnership with Lufthansa, Air France, Croatia Airlines and El Al. Major partnerships Code-share agreements with Air Adria Airways also launched flights between Germany and France, Austrian Airlines, Croatia Austria, on the Vienna-Frankfurt route, in competition with Airlines, El Al, Lufthansa. Austrian Airlines and Lufthansa. Financial Results € ‘000 2001 2000 Turnover 107672 105098 Operating profit/loss 2633 (713) Net profit/loss 752 759

Branko Lucovnikˇ President

ASSOCIATION OF EUROPEAN AIRLINES V - 11 Aer Lingus Dublin Airport Dublin IrelandAer Lingus Dublin Airport Tel.Dublin +353 1 886 2222 Fax.Ireland +353 1 886 3832 www.aerlingus.com Tel. +353 1 886 2222 Fax. +353 1 886 3832 Review of 2001 Tom Mulcahy, Chairman www.aerlingus.com William Walsh, Chief Executive

2001 in numbers: 6.5 million Tom Mulcahy, Chairman passengersReview of 2001transported on William Walsh, Chief Executive sc heduled services, of which: 29 Scheduled Destinations

78%2001 withinin numbers: Europe, 6.5 5% million on 3 within Ireland

Domesticpassengers routes transported and 17% onon 22 rest of Europe 29 Scheduled Destinations thescheduled North Atlantic. services, 36 ofthousand which: 4 beyond Europe 3 within Ireland tonnes78% withinof freight Europe, carried 5% onon 22 rest of Europe passengerDomestic services.routes and 17% on 4500 Employees 4 beyond Europe the North Atlantic. 36 thousand 35 Aircraft in Fleet Aertonnes Lingus of freightmanagement carried saw on 44500 AirbusEmployees A330-300 sopassengerme changes services. in 2001. Tom 3 Airbus A330-200 Mu lcahy took up the position of 635 Airbus Aircraft A321-200 in Fleet coAermpany Lingus Chairman, management following saw the untimely death of Bernie 44 AirbusAirbus A320-200A330-300 Cahillsome inchanges August. in William2001. TomWalsh, previously chief operations 83 BoeingAirbus A330-200737-500 officer,Mulcahy was took appointed up the position CEO. of 36 BoeingAirbus A321-200737-400 company Chairman, following the untimely death of Bernie 74 BAeAirbus 146-300 A320-200 ThroughoutCahill in August. 2001, William95% governmentWalsh, previously owned chief Aer operations Lingus 8 Boeing 737-500 continuedofficer, was to appointedseek private CEO. investors for the company. Hard hit by 43 AircraftBoeing 737-400on Order the global economic slowdown and the aftermath of September th 47 AirbusBAe 146-300 A319-100 11Throughout, a Restructuring 2001, Plan95% was government formulated, includingowned Aera proposed Lingus

employeecontinued shareto seek purchase private investors scheme forfor theAer company. Lingus staff Hard which, hit by Status4 at Aircraft 31st December on Order for information cothembi globalned witheconomic reductions slowdown in the and workforce, the aftermath further of cost September saving th 4 Airbus A319-100 11 , a Restructuring Plan was formulated, including a proposed on destinations, employees and fleet. measures and a number of commercial initiatives, aims to employee share purchase scheme for Aer Lingus staff which, improve the future prospects of the company. Status at 31st December for information combined with reductions in the workforce, further cost saving Owned by… on destinations, employees and fleet. measures and a number of commercial initiatives, aims to 95% State ownership In April, Aer Lingus signed a code-share agreement with fellow improve the future prospects of the company. 5% Aer Lingus employees Oneworld partner airline Iberia, initially on services between Owned by…

Dublin to Madrid and Barcelona. By year-end a new Aer Lingus 95% State ownership In April, Aer Lingus signed a code-share agreement with fellow Owner of… service to Malaga had also been announced. Aer Lingus also 5% Aer Lingus employees Oneworld partner airline Iberia, initially on services between - commenced new services to Nice (France), Barcelona and Dublin to Madrid and Barcelona. By year-end a new Aer Lingus Alicante (Spain) and Faro (Portugal) in 2001. Owner of… service to Malaga had also been announced. Aer Lingus also Major partnerships - commenced new services to Nice (France), Barcelona and Member of the Oneworld Alliance.

Alicante (Spain) and Faro (Portugal) in 2001. Code-share agreements with: American Major partnerships Airlines, British Airways, Iberia, KLM. Member of the Oneworld Alliance. FinancialCode-share Results agreements (Group) with: American Airlines, British €Airways, mill 2001Iberia, KLM. 2000 Turnover 1372.5 OperatingFinancial profit/lossResults (Group) 79.9 Net profit/loss € mill 2001 200071.6 Turnover 1372.5 Operating profit/loss 79.9 Net profit/loss 71.6

Tom Mulcahy William Walsh Chairman Chief Executive Tom Mulcahy William Walsh Chairman Chief Executive V - 12 ASSOCIATION OF EUROPEAN AIRLINES

V - 12 ASSOCIATION OF EUROPEAN AIRLINES Air France 45 rue de Paris 95747 Roissy CDG Cedex France Tel. +33 1 41 56 78 00 Fax. +33 1 41 56 70 29 www.airfrance.com

Jean-Cyril Spinetta, Chairman Pierre-Henri Gourgeon, CEO

Review of 2001 214 Scheduled Destinations 45 within France 2001 in numbers: 43.0 million 74 rest of Europe passengers transported on 95 beyond Europe scheduled services, of which: 64717 Employees (Group, at 31st March ’01) 44% on Domestic routes, 31% within Europe, 14% across the 248 Aircraft in Fleet Atlantic, 7% to the African 5 Concorde continent and the Middle East 22 Airbus A340-300 and 4% to the Far East. 627 2 Airbus A330-200 thousand tonnes of freight 15 Airbus A321 carried, 52% on all-cargo 61 Airbus A320 36 Airbus A319 services. 4 Airbus A310-300 5 Airbus A310-200 In 2001, the attacks of September 11th dominated the news, 19 Boeing 777-200 plunging the air transport industry into an unprecedented crisis 5 Boeing 767-300 and, for Air France, overshadowing the re-launch of Concorde 13 Boeing 747-400 services in November. 4 Boeing 747-300 9 Boeing 747-200 12 Boeing 747-200F The SkyTeam Alliance welcomed the arrival of CSA Czech 27 Boeing 737-500 Airlines in April 2001 and Alitalia in November. Along with Air 9 Boeing 737-300 France, Aeroméxico, Delta Air Lines and Korean Air, SkyTeam can now also count on a new Asian hub at Incheon in South 79 Aircraft Orders 10 Airbus A380-800 Korea and on a new product: the round-the-world-trip. In the 13 Airbus A330-200 run-up to winning anti-trust immunity, Air France launched a 6 Airbus A321-200 cargo joint-venture with Delta and Korean followed by shared 6 Airbus A320-200 operations with Alitalia for flights between France and Italy. 4 Airbus A319-100 15 Airbus A318-100 Rationalisation of the medium-haul fleet continued with the 13 Boeing 777-300 retirement of the last Boeing 737-200s. For its long haul fleet Air 5 Boeing 777-200 2 Boeing 747-400 France announced an order for ten A380-800s at the Le 5 Boeing 747-400F Bourget Air Show, with options for a further four aircraft. This Status at 31st December for destinations 550-seater aircraft will enter commercial service in 2006. With th renewed confidence in the future, December saw the delivery of and aircraft, 15 February ’02 for orders. the first A330-200 to the fleet. A second entered service in early Owned by… January 2002. 56% State ownership 33% Private and Institutional investors In its five-year existence, the La Navette shuttle service, 11% Air France employees operating frequent daily flights out of Paris Orly airport to Nice, Owner of… Marseilles, Toulouse and 100% Régional, Brit Air, CityJet Bordeaux on a ‘turn up and 100% Société d’Exploitation Aéropostale go’ concept, has attracted 36% Air Austral 25 million customers and 20% Air Gabon has helped Air France Major partnerships counter air and rail Member of the SkyTeam Alliance. competition on its high- Subsidiaries/Franchisees: Régional, Brit density domestic routes. Air, CityJet, British European, CCM. Various code-share agreements, incl. Air France Industries Austrian Airlines, China Eastern, Iberia, performed its fiftieth A320 JAL, LOT, Luxair, Royal Air Maroc, South African, TAM (Brazil), Tunisair. ‘D check’ major overhaul in 2001. Financial Results (Group, FY 31st March) € mill 2001/02 2000/01 Jean-Cyril Spinetta Turnover 12528 12280 Chairman Operating profit/loss 235 443 Net profit/loss 153 421

ASSOCIATION OF EUROPEAN AIRLINES V - 13 Air Malta Head Office Luqa LQA05 Malta

Tel. +356 22 9990 Fax. +356 673241 [email protected] www.airmalta.com

Review of 2001 Louis Grech, Chairman

2001 in numbers: 1.65 million passengers transported, 85% on scheduled services, of which: 78% within Europe, 6% to North 52 Scheduled Destinations Africa and 1% to the Middle East. 9.4 thousand tonnes of freight 2 within Malta carried, 22% on all-cargo services. 41 rest of Europe 9 beyond Europe In 2001 Air Malta’s network served 50 international destinations throughout Europe, North Africa and the Middle East. 1941 Employees Encouraging growth was registered in Summer 2001 from most of the company’s European markets, although the negative 11 Aircraft in Fleet results that persisted in various Middle East markets resulted in 2 Airbus A320-200 the suspension of services to Dubai, Kuwait, Beirut, Damascus 7 Boeing 737-300 and Tel Aviv later in the year. 2 Boeing 737-200

The Bulgarian capital Sofia was added to Air Malta’s network in 0 Aircraft on Order November 2001. Status at 31st December for information On destination Moscow the airline became the first foreign on destinations, employees and fleet. carrier to shift its regular flights from Sheremetyevo-2 to the Domodedovo airport. Owned by… 96.4% State ownership Code-sharing with Olympic Airways was introduced on Air 3.6% Private shareholders Malta’s flights between Malta and Athens/Thessaloniki from June 2001. Owner of… 100% Malta Air Charter Co Ltd Air Malta operated its schedule with a fleet consisting of nine 49% AZZURRA Air Boeing 737 aircraft and two Airbus A320s. A further seven aircraft - three BAe RJ-85 and four BAe RJ-70s - are leased out Major partnerships to, and operated by, the regional Italian airline and 49% owned - subsidiary AZZURRA Air. Financial Results (Group, FY 31st March) Besides the stake in AZZURRA Air, Air Malta is 100% owner of € mill 2001/02 2000/01 the Malta Air Charter Co Ltd which operates daily helicopter Turnover 309.3 services between Malta and the sister island of Gozo. Operating profit/loss 7.6 Net profit/loss (9.7)

Louis Grech Chairman

V - 14 ASSOCIATION OF EUROPEAN AIRLINES Alitalia – Linee Aeree Italiane Spa Viale Alessandro Marchetti 111 00148 Roma Italy

Tel. +39 06 65621 www.alitalia.it

Fausto Cereti, Chairman Francesco Mengozzi, Managing Director Review of 2001 & CEO

2001 in numbers: 24.6 million 116 Scheduled Destinations passengers transported on 24 within Italy scheduled services, of which: 56 rest of Europe 53% on Domestic routes, 32% 36 beyond Europe within Europe, 8% on the North Atlantic, 5% to the African 22446 Employees continent and the Middle East and 2% to the Far East. 228 168 Aircraft in Fleet (Group) thousand tonnes of freight 3 of which Alitalia carried, 46% on all-cargo 1 Boeing 747-400F services. 2 Boeing 747-200F 144 of which AZ Team In January 2001 Mr Domenico Cempella resigned and Mr 23 Airbus A321 Francesco Mengozzi took the position of Alitalia’s Managing 6 Airbus A320 Director and CEO. 11 Boeing 767-300 7 Boeing 747-200 Complexities resulting from the failed joint-venture with KLM in 89 MD82 2000, and structural difficulties that arose during the year led to 8 MD11 the Alitalia 2002-2006 Business Plan, designed to ensure a 21 of which AZ Express successful recovery and return to profitability. In this framework 8 Embraer RJ-145 the Alitalia Group (Alitalia SpA, Alitalia Team and Alitalia 7 ATR 72 Express) began a far-reaching process of reorganisation, of 6 ATR 42 renewing its business structure and of focusing on the potential benefits arising from the entrance into the SkyTeam Alliance. 18 Aircraft on Order The Business Plan was subsequently revised to meet the new th 12 Airbus A319 economic realities following the September 11 events. 6 Boeing 777-200

st On November 1 2001 Alitalia was admitted to full membership Status at 31st December for information of the SkyTeam Alliance comprising Aeroméxico, Air France, on destinations, employees and fleet. CSA, Delta Air Lines and Korean Air Lines. Owned by… In 2001 code-share programmes with the two US carriers 53% State ownership Northwest (KLM partner) and Continental were ceased. An 47% Private investors important new code-sharing agreement was set up with Qantas, on the Rome - Bangkok - Australia route, confirming Alitalia’s Owner of… intention of adopting a development policy and giving boost to 100% Alitalia Team its portfolio of partners. The company also strengthened the 100% Alitalia Express partnership with Japan 100% Eurofly Airlines. Other Alitalia code- share partners include Air Major partnerships Canada and Varig of Brazil, Member of the SkyTeam Alliance. and in Europe: Air Europa, Franchisees: AZZURRA Air, Minerva Croatia Airlines, Cyprus Airlines. Airways, LOT, Meridiana Various code-share agreements, incl. and TAROM. Air Canada, JAL, Meridiana, Qantas and Varig (Brazil).

Financial Results (Group) € mill 2001 2000 Turnover 5264 5394 Fausto Cereti Operating profit/loss (291) (255) Net profit/loss (907) (256) Chairman

ASSOCIATION OF EUROPEAN AIRLINES V - 15 Austrian Airlines Fontanastrasse 1 P.O. Box 50 1107 Vienna Austria

Tel. +43 1 1766 Fax. +43 1 688 55 05 www.aua.com

Review of 2001 Vagn Soerensen, CEO

2001 in numbers: 3.6 million 104 Scheduled Destinations (Group) passengers transported on 6 within Austria scheduled services, of which: 74 rest of Europe 72% within Europe, 11% on the 24 beyond Europe North Atlantic, 9% to Northern Africa and the Middle East, and 7752 Employees (Group) 8% to the Far East. 56 thousand tonnes of freight 94 Aircraft in Fleet (Group) carried on passenger services. 37 of which Austrian Airlines 2 Airbus A340-300 Herbert Bammer and Mario 2 Airbus A340-200 Rehulka, joint Presidents of 4 Airbus A330-200 Austrian Airlines, retired. A new management team was 3 Airbus A321-200 appointed in October, with the former deputy CEO of SAS, 3 Airbus A321-100 Vagn Soerensen, taking the helm as Chief Executive Officer. 8 Airbus A320-200 Thomas Kleibl was appointed Chief Financial Officer, Josef 4 MD87 Burger as Chief Commercial Officer and Walter Bock as Chief 2 MD83 Operations Officer. 3 MD82 6 Fokker 70 Austrian Airlines Group announced an operating loss of € 166 million for 2001, after a profit of € 53 million in 2000. The Group 6 Aircraft on Order prepared a package of measures designed to cut costs and 1 Airbus A321 stem losses, in adaptation to the new economic conditions. 5 Airbus A320

Status at 31st December for information In February 2001 Austrian Airlines acquired 100% of regional on destinations, employees and fleet. Austrian carrier Rheintalflug. The latter, which operates from Altenrhein airport at Lake Constance, has been a Team Owned by… Lufthansa partner since 1998. Towards the end of the year 39.7% OIAG Austrian Privatisation Agency Austrian Airlines reached a settlement with Lauda Air, lifting the 38.2% Free flow company’s share in the airline founded by Niki Lauda from 10.6% Austrian Institutional Investors 54.6% to 99%. With effect from the Winter timetable, all airlines 10% SAirLines in the Austrian Airlines Group, which includes Austrian Airlines, 1.5% Air France Lauda Air, Tyrolean Airways and Rheintalflug, operate under a single flight designator: OS. Owner of… 100% Tyrolean Airways In January the United States Department of Transportation 100% Rheintalflug awarded Austrian Airlines anti-trust immunity, giving the go- 100% Austrian Airtransport ahead for increased co- 99% Lauda Air operation with Star Alliance 17.5% Ukraine International Airlines partners United Airlines and Lufthansa. The European Major partnerships Commission is also Member of the Star Alliance. expected to clear an Various code-share agreements with: agreement between Air Dolomiti, Air France, Air Mauritius, Austrian Airlines and Augsburg Airways, CSA, Lufthansa Lufthansa, following CityLine, Luxair, Malaysia Airline concessions by the two System, Royal Jordanian, TAROM, carriers on Austria- Ukraine International.

Germany routes. Financial Results (Group)

€ mill 2001 2000 Vagn Soerensen Turnover 2171.8 1967.9 CEO Operating profit/loss (88.9) 83.8 Net profit/loss (166.0) 52.9

V - 16 ASSOCIATION OF EUROPEAN AIRLINES bmi british midland Donington Hall Castle Donington Derby East Midlands DE74 2SB Great Britain

Tel. +44 1332 854 000 Fax. +44 1332 854 662 www.flybmi.com Review of 2001 Sir Michael Bishop CBE, Chairman 2001 in numbers: 7.0 million Austin Reid, CEO passengers transported, 97% on scheduled services, of 30 Scheduled Destinations which: 52% within Europe, 43% 11 within the United Kingdom on Domestic routes and 2% on 17 rest of Europe the North Atlantic. 17 thousand 2 beyond Europe tonnes of freight carried on passenger services. 5693 Employees

2001 was an historic year for 62 Aircraft in Fleet bmi as it introduced a number 3 Airbus A330-200 of strategic business initiatives. 10 Airbus A321-200 These included, at the start of the year, the unveiling of a new 8 Airbus A320-200 brand positioning and new corporate identity with the name 8 Boeing 737-500 change from British Midland to bmi british midland. 2 Boeing 737-400 6 Boeing 737-300 In May 2001, bmi took delivery of its first Airbus A330-200 long 6 Fokker 100 haul aircraft and launched its first scheduled transatlantic 3 Fokker 70 service, Manchester to Washington Dulles. This was followed in 9 Embraer RJ-145 June by a Manchester to Chicago O’Hare service. 2 Embraer RJ-135 5 BAe 146-100 In June bmi received formal approval from the European Commission for its co-operation agreement with Lufthansa and 9 Aircraft on Order SAS, operating since May 2000. 1 Airbus A330-200 4 Airbus A320-200 Later in the Summer, bmi announced it would be submitting a 2 Embraer RJ-145 formal complaint to the European Commission competition 2 Embraer RJ-135 authorities, contesting the legitimacy of the Bermuda II st agreement, which allows only four airlines - two British (BA and Status at 31 December for information Virgin Atlantic) and two American (United and American on destinations, employees and fleet.

Airlines) - to operate direct London Heathrow-US flights. This Owned by… was followed, in September, by the formal application from bmi 60% BBW and United Airlines for anti-trust immunity from the United 20% Lufthansa States Department of Transportation covering all their routes 20% SAS between the UK and the US. The anti-trust application was the latest step in the long running campaign by bmi to introduce Owner of… new competition between the United States and Heathrow. -

With the start of the Winter Major partnerships timetable, bmi commenced Member of the Star Alliance. operations to both airports Various code-share agreements with: in Belfast - Belfast City and All Nippon Airways, Air Canada, Air Belfast International - from France, Air New Zealand, Austrian London Heathrow, thus Airlines, Gulf Air, Lufthansa, Malaysian ensuring a continued link Airline System, SAS, South African, between the UK’s main TAP, United Airlines and Virgin Atlantic. airport and Northern Ireland. Financial Results (Group) £ mill 2001 2000 Turnover 756.9 739.2 Operating profit/loss - - Sir Michael Bishop Net profit/loss * 12.4 8.2 Chairman * pre-tax

ASSOCIATION OF EUROPEAN AIRLINES V - 17 British Airways plc Waterside P.O. Box 365 Harmondsworth UB7 0GB Great Britain Tel. +44 20 8759 5511 Fax +44 20 8562 5557 www.british-airways.com

Rod Eddington, Chief Executive

Review of 2001 163 Scheduled Destinations 23 within the United Kingdom 2001 in numbers: 35.0 million 58 rest of Europe passengers transported, 98% 82 beyond Europe on scheduled services, of 62175 Employees (Group, at 31st March ‘01) which: 18% on domestic routes, 47% within Europe, 19% across 344 Aircraft in Fleet (Group) the Atlantic, 7% to the African 274 of which British Airways continent and the Middle East 7 Concorde and 7% to the Far East. 596 10 Airbus A320 thousand tonnes of freight 33 Airbus A319 carried, 13% on all-cargo 45 Boeing 777 15 Boeing 767-300 services. 32 Boeing 757-200

st 56 Boeing 747-400 In the financial year ending 31 March 2002, British Airways 10 Boeing 737-500 posted a net loss of £ 129 million (€ 211 million), compared to 33 Boeing 737-400 previous year’s profit of £ 81 million (€ 133 million). Operating 12 Boeing 737-300 result showed a loss of £ 110 million (€ 180 million), on a 16 Avro RJ100 5 ATR-72 turnover down by 10%. 22 of which Brymon Airways 7 Embraer RJ-145 The proposed alliance between Oneworld partners American 15 de Havilland Dash-8 Airlines and British Airways, under scrutiny by the US 48 of which BRAL authorities for market dominance throughout 2001, was formally 21 Embraer RJ-145 called off in February 2002 with the airlines unwilling to meet 10 BAe ATP the Department of Transportation’s regulatory conditions. A 4 BAe 146 13 BAe Jetstream 41 similar alliance plan was abandoned in 1999. 38 Aircraft on Order In March a computer ‘glitch’ and a crash of BA’s reservations 20 Airbus A320 system led to flight disruptions over several days. In November 6 Airbus A319 British Airways’ Concorde returned to commercial service 12 Airbus A318

between London Heathrow and New York’s JFK airport. Status at 31st December for information on destinations and fleet.

In June 2001 British Airways sold its no-frills subsidiary GO, Owned by… created in 1998. Kenyan-based Regional Air was signed on as 100% Publicly quoted company. BA’s third franchisee partner in Africa, after Comair of South Africa and Zambian Air Services. BASE Airlines of the Owner of… Netherlands and National Jet Italia (ceased operations) left the 100% CitiExpress (Brymon + BRAL) franchise family. In 2001 wholly owned CityFlyer Express and 100% Deutsche BA BA’s European Operations at Gatwick were integrated into 21.4% Qantas 18.3% Comair (South Africa) mainline operations. In 13.2% Air Mauritius March BA bought 100% of 9% Iberia British Regional Airlines (BRAL), which will be Major partnerships merged with subsidiary Member of the Oneworld Alliance. Brymon to create British Franchisees: British Mediterranean, CitiExpress, Comair (South Africa), GB Airways CitiExpress, Airways, Loganair (UK), Maersk Air operating under the new (UK), Regional Air (Kenya), Sun-Air name from April 2002. (Denmark) and Zambian Air Services. British Airways Regional Various code-share agreements. (BAR) will also become part of BA CitiExpress, creating Financial Results (Group, FY 31st March) a single Regional entity for £ mill 2001/02 2000/01 BA’s domestic and Turnover 8340 9278 European network. Rod Eddington Operating profit/loss (110) 380 Chief Executive Net profit/loss (129) 81

V - 18 ASSOCIATION OF EUROPEAN AIRLINES Cargolux Airlines International Luxembourg Airport L-2990 Luxembourg Grand Duchy of Luxembourg

Tel. +352 4211 1 Fax +352 43 54 46 cargolux www.cargolux.com

Review of 2001 Roger Sietzen, President & CEO

2001 in numbers: 450 thousand tonnes of freight transported, 96% on scheduled all-cargo services, of which: 56% to the Far 51 Scheduled Destinations East, 24% on the North Atlantic (including Mid Atlantic), 9% on 1 within Luxembourg the South Atlantic, 7% to the African continent and the Middle 6 rest of Europe East. 44 beyond Europe

In April 2001, Heiner Wilkens resigned as President & CEO. 1411 Employees

Roger Sietzen, Chairman of the Board of Cargolux, and a 11 Aircraft in Fleet veteran of Luxembourg aviation, took up the position in the 11 Boeing 747-400F interim.

1 Aircraft on Order Cargolux financial results for 2001 posted a profit of US$ 15 1 Boeing 747-400F million (€ 16.9 million), just under half that posted in 2000.

Turnover was on a par with previous year, at US$ 731 million (€ Status at 31st December for information 825 million), with an operating profit of US$ 22 million (€ 24.8 on destinations, employees and fleet. million), down from US$ 36 million (€ 40.6 million) in 2000. The second and third quarters of 2001, affected by the volatility of Owned by… the Asian market, and the knock-on effect of the downturn in 35% Luxair US airfreight, were poor, countered with a comparatively strong 34% SAirLogistics, 100% owned by fourth quarter with traditionally buoyant year-end traffic. In stark SAirGroup contrast to the passenger traffic of other AEA members, 31% Luxembourg financial institutions Cargolux’s second most important market - the North Atlantic - th bounced back quickly after September 11 . Owner of…

- At year-end Cargolux, which is 33.7% owned by the now defunct SAir Group, was in contact with the administrator over Major partnerships the disposal of this stake held in name of SAir Logistics. Various code-share agreements with:

China Airlines, China Eastern, Asiana In 2001, Cargolux added several new destinations to its and Aeromexpress. network. Calgary was the first destination in Canada to be served by the company. Shipments include oil drilling Financial Results equipment with final destination in the Middle East and Baku, US$ mill 2001 2000 the latter itself a new destination. The stopover in Baku, en- Turnover 731 739 route to Shanghai, is operated in co-operation with AZAL, the Operating profit/loss 22 36 national carrier of Azerbaijan. Services to and from Manila were Net profit/loss 15 33 also introduced, in co-operation with Pacific East Asia Cargo

Airlines of the Philippines. Cargo from the Philippines, direction Europe, will principally consist of electrical goods. Teheran was also added as a regular destination from the Autumn.

In August 2001, Cargolux took delivery of its 11th Boeing 747-400F, with one more aircraft of the same type still on order, for delivery in September 2002.

Roger Sietzen President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 19 Croatia Airlines Savska 41 10000 Zagreb Croatia

Tel. +385 1 616 0066 Fax. +356 1 617 6845 [email protected] www.croatiaairlines.hr Review of 2001 Ivan Misetic,ˇ ' President & CEO 2001 in numbers: 1.22 million passengers transported, 86% on scheduled services, of which: 61% within Europe, 24% on Domestic routes and just under 1% to the Middle East. 4.12 21 Scheduled Destinations thousand tonnes of freight carried on passenger services. 6 within Croatia 15 rest of Europe Despite an estimated loss of 28,000 passengers in the latter 0 beyond Europe part of the year as a result of September 11th Croatia Airlines carried in excess of one million passengers for the second year 977 Employees in a row, reaching this number by the end of September compared to mid November in the previous year. Having 10 Aircraft in Fleet started passenger operations in 1991, in May 2001 Croatia 3 Airbus A320-200 Airlines celebrated the tenth anniversary of its first flight, a 4 Airbus A319-100 domestic operation from Zagreb to Split performed in an MD82 3 ATR 42-300 aircraft leased from Adria Airways. Croatia Airlines has carried 8 million passengers to date. 0 Aircraft on Order

st Croatia Airlines signed a code-share agreement with Star Status at 31 December for information Alliance partner Austrian Airlines on Vienna-Zagreb flights. In on destinations, employees and fleet. the domestic route network, new connections from Zagreb to the coastal destinations of Zadar and Pula were introduced. Owned by… Apart from serving Europe’s major cities, Croatia Airlines is 92.6% State ownership highly focused on tourist traffic, reflected in the Summer 3.04% State agency timetable. Croatia Airlines, in co-operation with foreign tour 2.05% Croatian Privatisation Fund operators, offers many flights to the Adriatic coast, with 2.31% Other shareholders convenient domestic connections. Increased demand by foreign tour operators expected in the next two years has lead to the Owner of… decision to operationally lease a BAe 146 90-seater aircraft in - 2002. Major partnerships The Croatian Transport Ministry issued the JAR 145 Marketing and code-share agreement Certification to Croatia Airlines, authorising the company to with Lufthansa. perform maintenance work on foreign aircraft in accordance Various code-share agreements with: with European Aviation Standards. This is the first of such Air Bosna, Air France, Alitalia, Austrian permissions to be granted in the Republic of Croatia. Airlines, CSA and Turkish Airlines. Subsequently the German aviation authorities authorised base and line maintenance of German aircraft at the Technical sector Financial Results € in Zagreb. By year-end two C-checks had been carried out on mill 2001 2000 Lufthansa aircraft. This Turnover 157.8 133.6 underlines the growing co- Operating profit/loss 9.2 1.8 operation between Croatia Net profit/loss (13.4) (27.1) Airlines and Lufthansa that now extends from marketing agreement, code-share flights to exchange of technical expertise.

Ivan Miseticˇ ' President & CEO

V - 20 ASSOCIATION OF EUROPEAN AIRLINES Czech Airlines Head Office Ruzyneˇ Airport 160 08 Prague 6 Czech Republic

Tel. +420 2 2011 1111 Fax. +420 2 2056 2266 [email protected] www.czech-airlines.com Review of 2001 Miroslav Kula, President 2001 in numbers: 2.88 million passengers transported, 89% on scheduled services, of 56 Scheduled Destinations which: 76% within Europe, 1% 4 within the Czech Republic on Domestic routes, 6% on the 45 rest of Europe North Atlantic, 6% to North 7 beyond Europe Africa and the Middle East and less than 1% to the Far East. 4135 Employees (at 31st December 2000) 13.5 thousand tonnes of freight carried on passenger services. 30 Aircraft in Fleet 2 Airbus A310-300 In the Summer of 2001, CSA 10 Boeing 737-500 became the fifth member of the SkyTeam alliance. The 9 Boeing 737-400 SkyTeam, founded in 2000, which already counted Air France, 4 ATR-72 Delta Airlines, Aeroméxico and Korean Airlines, also accepted a 5 ATR-42 sixth member, Alitalia, in 2001. Prague, CSA’s homebase, will be developed as an important hub for alliance members’ flights 0 Aircraft on Order to Central and Eastern Europe. In May 2001 the SkyTeam alliance launched SkyTeamNet, a new technology aimed at Status at 31st December for information improving customer service through better communication. on destinations and fleet.

The network saw the cessation of CSA’s Prague to Bangkok Owned by… service, to meet demand on the US routes resulting from 56.4% Czech National Property Fund SkyTeam membership. Flights to New York were introduced Czech Consolidation Bank and expanded to cover both John F. Kennedy and Newark Czech institutions & investors airports, with the latter subsequently dropped post-September th 11 . At year-end, CSA operated a network of 45 cross-border Owner of… destinations in Europe. Beyond Europe services were offered to - Cairo and Beirut, Dubai and Tel Aviv in the Middle East, as well as to two points in Canada (Toronto and Montreal) and New Major partnerships York in the US. New destinations added in Europe in 2001 Member of the SkyTeam Alliance. included Birmingham (UK), Ljubljana (Slovenia), Thessaloniki Various agreements with: Air France, (Greece) and Vilnius (Lithuania). CSA operates to three points Aeroflot, Aeroméxico, Aerosvit Airlines in the home country out of Prague: Brno, Karlovy Vary and (Ukraine), Air Malta, Alitalia, Austrian Ostrava. Airlines Group, Croatia Airlines, Delta Air Lines, KLM, LOT, Lufthansa, Malev, In 2001 CSA continued its fleet expansion, with the lease of two Olympic Airways, TAROM and Turkish Boeing 737-400s in March. Airlines. This brings the fleet to a total of 30 aircraft, which Financial Results already counted seventeen CZK mill 2001 2000 Boeing 737s, two Airbus Turnover 17031 A310s and nine aircraft Operating profit/loss 384 made by the French-Italian Net profit/loss 408 consortium ATR.

Miroslav Kula President

ASSOCIATION OF EUROPEAN AIRLINES V - 21 Cyprus Airways Ltd 21 Alkeou Street 2404 Engomi P.O. Box 21903 1514 Nicosia Cyprus

Tel. +357 22 663 054 Fax +357 22 663 167 www.cyprusair.com.cy Review of 2001 Haris A. Loizides, Chairman 2001 in numbers: 1.5 million passengers transported on scheduled services, of which: 87% within Europe, 12% to the Middle East and 1% to North Africa. 16.3 thousand tonnes of 32 Scheduled Destinations freight carried on passenger services. 2 within Cyprus 21 rest of Europe Preliminary financial results for Cyprus Airways show the € 9 beyond Europe company posted a profit of 2.4 million Cyprus Pounds ( 4.1 million) in 2001, slightly down on 2000 results of CY£ 3.9 million 2017 Employees (€ 6.8 million). 10 Aircraft in Fleet In September 2001, Cyprus Airways Consortium, a grouping 6 Airbus A320-200 including Cyprus Airways and Alitalia, decided to withdraw from 4 Airbus A310-200 the bidding for troubled Greek carrier Olympic Airways. The Greek Government hopes to sell between 51% and 65% of 4 Aircraft on Order Olympic Airways to private investors. 2 Airbus A330-200 2 Airbus A319-100 Early in the year, Cyprus Airways signed a code-share agreement with Aeroflot on flights between Cyprus and Status at 31st December for information Moscow, with the possibility of further commercial co-operation on destinations, employees and fleet. in other areas in the future. Cyprus Airways continued its expansion to Eastern Europe, with the introduction of two new Owned by… destinations from Summer 2001: Budapest and Warsaw. 69.62% State ownership 30.38% Private shareholders In October Cyprus Airways added flights to Crete to its Winter timetable. Services between the two islands have been in Owner of… operation for the last 25 years, predominantly in the Summer 100% Eurocypria and Spring seasons. Major partnerships Cyprus Airways finalised its fleet renewal plans, with the Various code-share agreements with: addition of a leased A320. The fleet currently consists of four Aeroflot, Alitalia, El Al, Gulf Air, KLM Airbus A310s and six Airbus A320s. A further two A320s are on and Syrian Arab Airlines. long-term lease to charter subsidiary Eurocypria. Aircraft orders include the purchase of two 126-seater Airbus A319-100 for Financial Results (Group) delivery in 2002 and the leasing of two 295-seater Airbus A330- CY£ ‘000 2001* 2000 200 in 2002 and 2003. Turnover 178268 161950 Operating profit/loss (4137) (708) Net profit/loss 2376 3928 * preliminary

Haris A. Loizides Chairman

V - 22 ASSOCIATION OF EUROPEAN AIRLINES Finnair Oy P.O. Box 15 01053 Finnair Finland

Tel. +358 9 818 81 Fax. + 358 9 818 4401 www.finnair.com

Keijo Suila, President & CEO Review of 2001

2001 in numbers: 7.6 million 59 Scheduled Destinations passengers transported, 81% 19 within Finland on scheduled services, of 33 rest of Europe which: 40% within Europe, 35% 7 beyond Europe on Domestic routes, 2% on the North Atlantic and 4% to the 8893 Employees Far East. 62 thousand tonnes of freight carried, 26% on all- 56 Aircraft in Fleet cargo services. 4 Airbus A321-200 4 Airbus A320-200 For the year as a whole, Finnair 4 Airbus A319-100 recorded financial results which 5 Boeing 757-200 were still positive, but with net profit down to € 7.1 million 10 MD83 compared to € 108.8 million for January-December 2000, the 8 MD82 company reflected the economic slowdown from early 2001 and 4 MD11 the effects of September 11th. 8 Douglas DC9-51 9 ATR-72 Finnair revised its long haul traffic strategy, expanding operations to Asia, with higher frequencies to Beijing and 14 Aircraft on Order Bangkok and the introduction of a new route to Hong Kong in 1 Airbus A321-200 February 2002. Stockholm-Skavsta was added to the network, 9 Airbus A320-200 increasing transfer possibilities from wider Scandinavia into 4 Airbus A319-100 Finnair’s Asia connections. Status at 31st December for information Finnair is a founding partner in the creation of Opodo, the first on destinations, employees and fleet. European on-line travel agency initiative, launched in June 2001, by Aer Lingus, Air France, Alitalia, Austrian Airlines, Owned by… British Airways, Finnair, Iberia, KLM and Lufthansa. In addition 58.43% State ownership Finnair has broadened the use of electronic airline tickets with 22.99% Financial institutions, insurance its eGate system. companies. 9.30% Registered in nominee name In October a new code-share agreement with Air France was 9.29% Private individuals implemented on Helsinki-Paris routes, as Air France abandoned the route on its own account. In September Finnair Owner of… also began co-operation with Ukraine International Airlines to - Kiev. Major partnerships Finnair continues its fleet Member of the Oneworld Alliance. renewal around Airbus Various code-share agreements, with: aircraft, which will count 22 Air China, Air France, Crossair, by the end of 2002. A 70 to Deutsche BA, Golden Air (Sweden), 100 seater replacement for Lithuanian Airlines, LOT, Luxair, Malev, the DC-9s, MD-80s and TAP Air Portugal, Ukraine International ATRs in the fleet has yet to Airlines. be chosen. Financial Results (Group) € mill 2001 2000 Turnover 1631.0 1658.1 Operating profit/loss 13.3 110.7 Net profit/loss 7.1 108.8

Keijo Suila President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 23 LÍneas Aéreas de España SA Calle Velazquez 130 28006 Madrid Spain

Tel. +34 91 587 87 87 [email protected] www.iberia.com

Xabier de Irala, Chairman & CEO Review of 2001

97 Scheduled Destinations 2001 in numbers: 24.9 million 35 within Spain passengers transported on 32 rest of Europe scheduled services, of which: 30 beyond Europe 57% on Domestic routes, 30% within Europe, 11% across the 28320 Employees (Group) Atlantic and 2% to the African continent and the Middle East. 143 Aircraft in Fleet 196 thousand tonnes of freight 15 Airbus A340-300 carried, 10% on all-cargo 4 Airbus A321-200 52 Airbus A320-200 services. 4 Airbus A319-100 5 Airbus A300 Iberia’s initial public offering 18 Boeing 757-200 (IPO) launched in 2001 was finally completed on 3 rd April 2002, 3 Boeing 747-300 when its shares were floated on the Madrid stock market. 40% 5 Boeing 747-200 of the state-owned company had already been sold to private 13 MD88 investors in December 1999, including British Airways and 24 MD87 American Airlines, with respective share holdings of 9% and 1%. 2 Aircraft on Order 2 Airbus A340-300

The Iberia Group posted an operating profit of € 4.9 million and Status at 31st December for information a net profit after tax of € 50.2 million in 2001, in spite of the on destinations, employees and fleet. negative trend in the air transport sector. Results were also

affected by pilot strike action during the Summer months. th Owned by… Immediately following the events of September 11 , Iberia 60% Floating implemented a contingency plan to cut capacity and costs. This 30% Banks and various companies included the cancellation of all wet lease agreements and the 9% British Airways postponement of future aircraft deliveries. 1% American Airlines

As part of its strategy of strengthening its core business lines, Owner of… Iberia sold its subsidiary Binter Mediterraneo to its regional - airline franchisee Iberia Regional/Air Nostrum in June 2001.

The company’s main area of operation is in South Eastern Major partnerships Spain, linking the mainland with Melilla in North Africa. In April Member of the Oneworld Alliance. 2002, the second Iberia subsidiary, Binter Canarias, the leading Franchisee: Iberia Regional/Air Nostrum passenger airline in the Canary Islands, was sold to a Various code-share agreements with: consortium of local investors. Air France, Brit Air, CSA, Deutsche BA,

El Al, GB Airways, JAL, LOT, Regional The company continued its Airlines, Royal Air Maroc, Royal fleet renewal programme in Jordanian, Syrian Arab Airlines, TAM 2001. The ten Boeing 727s, (Brazil), Ukraine International Airlines, eight DC9s as well as one Lithuanian Airlines. Airbus A300 were

withdrawn from the fleet Financial Results (Group) and fifteen new aircraft € mill 2001 2000 were added: ten Airbus Turnover 4736 4488 A320, two Airbus A321 and Operating profit/loss 4.9 66 three Airbus A340. Net profit/loss 50.2 221

The current year - 2002 - is an anniversary year for Iberia, celebrating 75 years of flying. Xabier de Irala Chairman & CEO

V - 24 ASSOCIATION OF EUROPEAN AIRLINES Icelandair Reykjavik Airport 101 Reykjavik Iceland

Tel. +354 5050 300 Fax. +354 5050 350 [email protected] www.icelandair.com

Review of 2001 Sigurdur Helgason, President & CEO

2001 in numbers: 1.4 million passengers transported, 95% on 30 Scheduled Destinations scheduled services, of which: 65% within Europe and 30% on 7 within Iceland the North Atlantic. 38 thousand tonnes of freight carried, 67% 16 rest of Europe on all-cargo services. 7 beyond Europe

2001 financial results for Icelandair show a net loss of 1212 2487 Employees (Group) € million Iceland Krona ( 13.2 million), compared to a loss of ISK € 939 million in 2000 ( 10.2 million). Turnover increased by 9%, 12 Aircraft in Fleet € bringing the operating margin to a loss of ISK 765 million ( 8.3 9 Boeing 757-200 million), a slight improvement compared to the loss of ISK 966 1 Boeing 757-200F € million ( 10.5 million) in the previous year. North American 1 Boeing 737-400 destinations accounted for 30% of all passengers transported 1 Boeing 737-300F by the carrier in 2001. Following the general downturn in the world economy, rising fuel prices and the strength of the dollar, th 2 Aircraft on Order the events of September 11 had an important impact on the 2 Boeing 757-300 airline’s results. In response, the company reduced its capacity on offer both to the US and within Europe along with other Status at 31st December for information corrective measures. on destinations, employees and fleet.

Icelandair joined Aeroxchange, the airline industry’s business- Owned by… to-business e-commerce exchange for technical goods & 100% Fully Privatised services. Aeroxchange, based in Dallas was founded by Major shareholders: thirteen airlines in North America, Europe and the Asia-Pacific 42.03% Various Companies region, to rationalise and optimise the collective aviation supply 28.87% Individual Investors chain. 13.26% Pension Funds 5.42% Investment Funds Icelandair struck a deal with privately owned Air Scandic 6.18% Insurance Companies whereby one of the company’s passenger jets will be deployed 4.24% Banks to operate charter flights to Mediterranean destinations, three days a week. Air Scandic was founded in Finland, but is based Owner of… in Manchester, Great Britain. In 2000, Icelandair forged a 100% Air Iceland similar deal with German charter company Condor. Major partnerships Icelandair announced the suspension of flights to the Canadian Code-share agreements with: bmi city of Halifax, with effect from the Winter timetable 2001, british midland and SAS. following lack of profitability and the slowdown of the American economy. The city had been served since 1996. Financial Results ISK mill 2001 2000 Turnover 37971 34552 Operating profit/loss (765) (966) Net profit/loss (1212) (939)

Sigurdur Helgason President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 25 Jugoslovenski Aerotransport 16 Bulevar umetnosti 11070 Novi Beograd Yugoslavia

Tel. +381 11 311 4 22 Fax. +381 11 311 2 853 [email protected] www.jat.com

Review of 2001 Predrag Vujovic,' President Milenko Nikic,' CEO 2001 in numbers: 1.05 million passengers transported, 95% on scheduled services, of which: 49% within Europe, 42% on Domestic routes, 2% to North Africa and 2% to the Middle East. 38 Scheduled Destinations 3.5 thousand tonnes of freight carried on passenger services. 3 within Yugoslavia 29 rest of Europe As a former employee of JAT of more than 20 years, Mr ' 6 beyond Europe Predrag Vujovic returned to the company in October 2001 as its newly appointed President. 4952 Employees

Financial results for JAT in 2001 produced a net loss of 616 30 Aircraft in Fleet € million Yugoslav Dinar ( 10.5 million) compared to a net loss of 9 Boeing 737-300 € YUN 944 million ( 16.1 million) in 2000. 8 Boeing 727-200 1 Douglas DC10-30 Towards the future, JAT has evolved a Business Plan up to 9 Douglas DC9-30 2006, aimed at making some fundamental changes in several 3 ATR-72 areas: future ownership of the company, the streamlining of operations, network expansion, fleet renewal and increased co- 8 Aircraft on Order operation with other airlines, in particular, in the Balkan region. 8 Airbus A319-100

JAT operates a network of 35 international destinations in Status at 31st December for information Europe, North Africa and the Middle East from its hub at on destinations, employees and fleet. Belgrade and from Pristina and Podgorica. Owned by… The fleet of JAT currently consists of 30 aircraft. Part of the fleet 100% State ownership has recently been upgraded to meet, amongst others, international rules on noise abatement. The purchase of new Owner of… generation aircraft remains a priority for the future. -

th This year, 2002, JAT celebrates its 75 anniversary. The first Major partnerships Yugoslav airline AEROPUT, predecessor of JAT, was founded Code-share agreements with Aerosvit in 1927 and operated its first flight between Belgrade and Airlines (Ukraine) and CSA Czech Zagreb with a Potes-26 biplane. In the years that followed, the Airlines. steady growth of the company was interrupted on several occasions due to political turbulence in the Balkan region. In Financial Results (Group) 1994, following the war in former Yugoslavia and the secession YUN mill 2001 2000 of the ex-republics, JAT finally returned to international services Turnover 8364 2396 and renewed growth, from a smaller home base and with a new Operating profit/loss (616) (944) identity. JAT has been a Net profit/loss (616) (944) member of the AEA since 1971.

Predrag Vujovic' President

V - 26 ASSOCIATION OF EUROPEAN AIRLINES KLM P.O. Box 7700 Schiphol Airport 1117ZL The Netherlands

Tel. +31 20 649 9123 Fax. +31 20 649 3113 www.klm.nl

Review of 2001 Leo M. van Wijk, President & CEO 2002 Chairman of the AEA 2001 in numbers: 15.9 million passengers transported on LDW scheduled services, of which: R ID 135 Scheduled Destinations 4 within the Netherlands 57% within Europe, 15% on the O E 66 rest of Europe North Atlantic, 6% on the Mid W 65 beyond Europe and South Atlantic, 11% to NORTHWEST R Northern Africa and the Middle st East and 11% to the Far East. E Y 27573 Employees (at 31 March 2002)

509 thousand tonnes of freight L T I 126 Aircraft in Fleet carried, 11% on all-cargo I A L B I 12 Boeing 767-300 services. 5 Boeing 747-400

st 16 Boeing 747-400 Combi For the fiscal year ending 31 March 2002, KLM posted a net 2 Boeing 747-300 loss of€ 156 million, compared to a profit of€ 77 million last 6 Boeing 747-300 Combi year, on a turnover of € 6.5 billion. 2 Boeing 747-300F 4 Boeing 737-900 The economic slowdown of early 2001 and the September 11th 13 Boeing 737-800 attacks both affected the results. KLM was able to adapt swiftly, 14 Boeing 737-400 15 Boeing 737-300 implementing a combination of long and short-term measures 10 MD11 on top of a cost-reduction program already under way. By the 14 Fokker 70 final quarter of 2001, passenger capacity had been reduced by 13 Fokker 50 11%, whilst the inherent flexibility of combi-aircraft meant cargo capacity was maintained at the same level as the previous year. 3 Aircraft on Order Overall capacity was reduced by trimming frequencies or by 3 Boeing 747-400 Combi operating smaller aircraft, enabling the company to maintain its global network. Status at 31st December for information on destinations and fleet. In December a code-share agreement was finalised with Continental Airlines, connecting all KLM flights to Houston and Owned by… Newark to the American carrier’s network, effective January 100% Publicly quoted company 2002. Continental Airlines is the domestic partner airline of Northwest Airlines in the USA. From October a code-share Owner of… agreement was launched with China Southern Airlines, on the 100% KLM cityhopper Amsterdam to Beijing and Shanghai routes. In June an alliance 100% KLM uk co-ordination agreement was signed with Malaysia Airline 80% Transavia Airlines System, to be developed to a full joint venture for the carriers’ 50% Martinair code-share flights between Amsterdam and Kuala Lumpur. 26% Kenya Airways

In early 2002 KLM Major partnerships announced a major renewal KLM-Northwest Alliance. of its fleet and the planned Co-operation agreements with KLM introduction of the first cityhopper, KLM uk, KLM exel, China Airbus aircraft into the KLM Southern Airlines, Continental Airlines, fleet. All long haul aircraft Kenya Airways, Maersk Air and currently operated - B747- Malaysian Airline System. 300, MD-11 and B767 - will be replaced by B777-200 Financial Results (FY 31st March) and Airbus A330-200, and € mill 2001/02 2000/01 newly acquired Boeing 747- Turnover 6532 6960 400 freighters will replace Operating profit/loss (94) 277 the -300 variant of this Leo M. van Wijk Net profit/loss (156) 77 aircraft type in the fleet. President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 27 Deutsche Lufthansa AG 2-6 Von-Gablenz-Strasse 50679 Cologne Federal Republic of Germany Tel. +49 221 8260 Fax. +49 221 826 3818 www.lufthansa.com

Jürgen Weber, Chairman & CEO Wolfgang Mayrhuber, Deputy Chairman & CEO Passenger Airlines

Review of 2001 357 Scheduled Destinations 23 Germany / 128 Europe / 206 beyond 2001 in numbers: 44.2 million 39272 Employees passengers transported on scheduled services, of which: 372 Aircraft in Fleet (Group) 45% within Europe, 34% on 220 of which Lufthansa Domestic routes, 11% across 27/6 Airbus A340 -300/-200 the Atlantic, 4% to the African 26/33/15 Airbus A321 / A320 / A319 5 Airbus A310-300 continent and the Middle East 14 Airbus A300-600 and 6% to the Far East. 1080 28/2 Boeing 747 -400/-200 thousand tonnes of freight 29/31/4 Boeing 737-500/-300/-300QC carried, 57% on all-cargo 67 of which LH CityLine services. 6/43 Canadair CRJ -700/ -100/200 18 Avro RJ85 Following a year of strong growth in 2000, latest financial 20 of which LH Cargo 6 Boeing 747-200F results reflect the poor global economic conditions, Lufthansa’s 14 MD11F pilot strike action in May, and the terrorist attacks of 2001. The 65 of which Team LH Group generated a turnover of € 16.7 billion, up 9.8% over 1 Airbus A319 2000, with a net loss of € 633 million. Following the events of 6/8 ATR 42-300/400 / ATR 72 September 11th, Lufthansa adapted its timetable, took more 13 BAe 146 than 40 aircraft out of service, and agreed a package of 3 Canadair CRJ-100/200 18 de Havilland Dash-8 measures with the public workers and pilot unions to control 2 Embraer RJ-145 staff costs. 2 Fairchild Dornier 328 1/11 Fokker 100/50 On January 1st Wolfgang Mayrhuber, active since 1994 as CEO of Lufthansa Technik, was appointed Chief Operating Officer of 46 Aircraft on Order 32 of which Lufthansa Lufthansa, responsible for the Passenger Airline business. 15 Airbus A380 10/4 Airbus A340 -600/-300 Lufthansa took a 24.9% stake in German regional airline 1 Airbus A300-600 Eurowings from 1st January 2001. The option to buy a further 2 Boeing 747-400 24.1% (making a total of 49%), to be exercised by 2003/2004, 14 of which LH CityLine has already been cleared by the German anti-trust authorities. 14 Canadair CRJ-700

Owned by… Lufthansa introduced three new long haul destinations to its 89.95% Free float timetable - Bangalore in India, Phoenix and Denver in the US - 10.05% Public sector but ceased operations to Rio de Janeiro, Lima and Tashkent. Owner of… 100% Lufthansa Cargo Lufthansa Cargo started a ‘Round-the-world-freighter’ service in 100% Lufthansa CityLine co-operation with Air New Zealand, with a routeing Frankfurt - 24.9% Eurowings East coast USA - Los 20.69% Air Dolomiti Angeles - Tahiti (fuel stop) - 20% bmi british midland Auckland - Australia - 13% Luxair 10% Condor Malaysia - Pakistan - Frankfurt, and intensified Major partnerships the cargo partnership with Member of the Star Alliance. SAS and Singapore Franchisees (Team Lufthansa): Airlines. Augsburg Airways, Cimber Air, Cirrus Airlines, Contact Air, Rheintalflug. In December Lufthansa Code-share agreements: Adria Airways, Air Baltic, Air China, Air Dolomiti, Air placed a firm order for 15 One, Croatia Airlines, CSA, Eurowings, Airbus A380 aircraft with Luxair, Maersk Air, SAA, Spanair. the first deliveries scheduled for 2007. Financial Results (Group) € Jürgen Weber mill 2001 2000 Chairman & CEO Turnover 16690 15200 Operating profit/loss (316) 1482 Net profit/loss (633) 689

V - 28 ASSOCIATION OF EUROPEAN AIRLINES Luxair Luxembourg Airport 2987 Luxembourg

Tel. +352 4798 4281 Fax. +352 4798 4289 [email protected] www.luxair.lu

Christian Heinzmann, President & CEO Review of 2001

2001 in numbers: 1.14 million passengers transported, 78% on 56 Scheduled Destinations scheduled services within Europe. 0.3 thousand tonnes of 1 within Luxembourg freight carried on passenger services. 51 rest of Europe 4 beyond Europe Financial results for Luxair produced a net profit of € € 20.3 million, co mparable to the result of 19.6 million profit 2120 Employees made in 2000. Turnover increased by 7%, resulting in an € € operating profit of 11.7 million in 2001, up from 6 million in 17 Aircraft in Fleet the previous year. 3 Boeing 737-500 2 Boeing 737-400 In 2001, Luxair transported the record number of 1,142,319 4 Fokker 50 passengers on the Luxair fleet, representing an increase of 8 Embraer RJ-145 almost 3%, with the first part of the year recording an exceptional increase of 10%. No fewer than 1.6 million 0 Aircraft on Order passengers used Luxair’s homebase airport in Luxembourg, of which 818 thousand departing, and 804 thousand arriving. Status at 31st December for information on destinations, employees and fleet. Luxair is one of the founders of Cargolux Airlines, which developed into one of the most important all-cargo carriers in Owned by… the world. The Luxair-owned Cargo Centre is one of the most 37.3% Private Companies modern airfreight centres in Europe, capable of handling 750 23.1% State ownership thousand tonnes of freight annually. 13.4% State-owned bank 13.2% Luxair Group and others Luxair maintains a marketing agreement with Lufthansa, a 13.0% Lufthansa commercial agreement with Austrian Airlines as well as code- share agreements with both Air France to Paris and Finnair on Owner of… Stockholm-Helsinki. A new agreement was signed with Belgian 34.88% Cargolux regional carrier VLM, code-sharing on the Luxembourg-London City route. Major partnerships Various agreements with: Air France, Since the first arrival in 1998, the company has seen a steady Austrian Airlines Group, Finnair, introduction of the Embraer aircraft in the fleet. Luxair took Lufthansa and VLM. delivery of another Embraer RJ-145 ‘Eurojet’ in 2001, bringing the total in the fleet at year-end to eight. Besides these, the st Financial Results Luxair fleet, as counted on the 31 December 2001, also boasts € mill 2001 2000 four Fokker 50, two Boeing 737-400 and three Boeing 737-500. Turnover 282.6 265 Operating profit/loss 11.7 6 Net profit/loss 20.3 19.6

Christian Heinzmann President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 29 Malev Hungarian Airlines Roosevelt tér 2 1051 Budapest V Hungary

Tel. +36 1 235 3535 Fax. +36 1 266 2685 [email protected] www.malev.hu

Review of 2001 Ferenc Szarvas, Chairman of the Board József Váradi, CEO 2001 in numbers: 2.2 million passengers transported, 93% on scheduled services, of which: 80% within Europe, 5% on the North Atlantic, 5% to the Middle East, 2% to Northern Africa 42 Scheduled Destinations and 1% to the Far East. 12.4 thousand tonnes of freight carried 1 within Hungary on passenger services. 33 rest of Europe 8 beyond Europe Mr. József Váradi was appointed as Chief Executive Officer of Malev in July, replacing Ms. Erzsèbet Antal. In the Autumn of 3062 Employees 2001 Mr. Zoltán Kárpáti was appointed as Chief Commercial Officer and Mr. András Hajdú as Chief Financial Officer. Mr 25 Aircraft in Fleet Ferenc Szarvas is the Chairman of the Board. The newly 2 Boeing 767-300 appointed management started a reorganisation programme to 2 Boeing 767-200 modernise the company’s fleet, network, sales and operational 2 Boeing 737-500 activities. Originally a two-year plan, Malev decided to speed up th 6 Boeing 737-400 the process following the September 11 events. 7 Boeing 737-300 6 Fokker 70 € Malev reported an operating loss of HUF 11.2 billion in 2001 ( 43.8 million), which is a slight improvement compared to the 10 Aircraft on Order € operating loss of HUF 12.5 billion in 2000 ( 48.8 million) on a 2 Boeing 737-800 turnover 5% down on previous year. The 2001 results were 4 Boeing 737-700 influenced by external factors like the downturn in traffic th 2 Boeing 737-600 following the September 11 events, the weak euro and high 2 Boeing 737-300 fuel prices, but internal factors such as a 1-week strike by aircraft engineers in February also had a negative impact. Status at 31st December for information € Overall Malev achieved a net loss of HUF 7.5 billion ( 29.3 on destinations, employees and fleet. € million) in 2001, which is HUF 2.5 billion ( 9.8 million) less than the previous year’s loss. Owned by… 97.9% State privatisation and assets Malev signed important marketing agreements with KLM and handling company Northwest Airlines in 2001. The code-share market changed. 1.2% Municipalities Numerous code-share contracts were cancelled - Pulkovo 0.9% Private shareholders and other Aviation, Delta Airlines, Swissair, Air Bosna, Air Baltic, British organisations Airways, Balkan Airlines, LinAir - and some new contracts were concluded, amongst others with Finnair, TAROM, KLM and Owner of… Crossair. Flights to New York with Delta Airlines of the US - ceased at the end of March following the latter airline’s joining of the SkyTeam Alliance. Major partnerships Marketing agreements with KLM and In the Autumn of 2001 Northwest Airlines. Malev signed a contract Various code-share agreements with: with ILFC for the delivery of Aerosvit Airlines (Ukraine), Air France, ten ‘Next Generation’ Alitalia, Austrian Airlines, Crossair, LOT, Boeing 737s, with delivery Northwest Airlines and TAROM. from 2003, plus six options in order to continue the Financial Results review of its fleet. In HUF mill 2001 2000 January 2002 Malev Turnover 106317 112092 returned its two B767-300 Operating profit/loss (11232) (12503) aircraft to the lessor, Net profit/loss (7509) (10031) bringing the company’s long haul fleet back to two Boeing 767-200. Ferenc Szarvas Chairman of the Board

V - 30 ASSOCIATION OF EUROPEAN AIRLINES Meridiana S.p.A Centro Direzionale Aeroporto Costa Smeralda 07026 Olbia (SS) Italy

Tel. +39 0789 52600 Fax. +39 0789 52861 www.meridiana.it Review of 2001 Giovanni Sebastiani, CEO 2001 in numbers: 3.3 million passengers transported on scheduled services, of which: 87% on Domestic routes and 13% within Europe. 2.7 thousand tonnes of freight carried on 28 Scheduled Destinations passenger services. 24 within Italy 4 rest of Europe In July 2001, Giovanni Sebastiani was appointed Managing 0 beyond Europe Director and CEO of Meridiana, succeeding Franco Trivi who retains his position as President of the company. 1344 Employees

21 Aircraft in Fleet Following modest traffic growth in the first three quarters of the 17 MD82 year, Meridiana lost ground in the final quarter of the year. The th 4 BAe 146-200 effects of September 11 , the SAS crash at Milan’s Linate airport and operational limitations imposed on flights at airports 0 Aircraft on Order in Northern Italy with low visibility conditions all affected traffic levels. Status at 31st December for information

on destinations, employees and fleet. Meridiana focused primarily on its domestic market in 2001.

The company improved its presence in Sicily, which represents Owned by… about 30% of all traffic, but the company’s most important 57.19% Interprogramme Holding SA market is to and from the Italian island of Sardinia with, 17.59% Aga Khan SA principally, Summer season traffic. The network was critically th 16.38% Meridiana employees reviewed following September 11 , with some services 7.90% Financial institutions cancelled, including international destination Zurich, and an 0.94% Others optimisation of critical routes. In total 79.29% of Meridiana’s capital is

held, directly or indirectly, by its founder, By year-end Meridiana offered a network of 24 destinations, the Aga Kahn. operating from the three hubs of Olbia, Florence and Verona.

Although principally a domestic airline, Meridiana also offers Owner of… four destinations outside its home country, to Amsterdam, - Barcelona, London and Paris.

Major partnerships In 2001 the company’s code-share agreement with Alitalia was Code-share agreements with: Alitalia, strengthened, resulting in higher traffic levels achieved on joint KLM and Pan Air (Italy). routes. The code-share arrangement with KLM on Florence-

Amsterdam, started in April 2000, was continued through 2001. Financial Results

€ mill 2001 2000 2001 saw, compared to 2000, fewer wet-lease operations Turnover 366.5 363.8 (lease of aircraft with crew), Operating profit/loss (15.4) (32.6) thus reducing the capacity Net profit/loss (10.2) (21.0) on offer. In 2002 no such operations are planned. At year-end 2001 the Meridiana fleet consisted of 21 aircraft, of which nine owned by the company and twelve leased.

Giovanni Sebastiani CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 31 Olympic Airways 96-100 Syngrou Avenue Athens 11741 Greece

Tel. +30 1 9269 111 Fax. +30 1 9267 154 www.olympic-airways.gr

Dionyssis Kalophonos, Chairman & CEO Review of 2001

2001 in numbers: 6.1 million passengers transported on 51 Scheduled Destinations scheduled services, of which: 53% on Domestic routes, 37% 10 within Greece within Europe, 4% on the North Atlantic, 5% to North Africa and 25 rest of Europe the Middle East and 1% to the Far East. 40 thousand tonnes of 16 beyond Europe freight carried on passenger services. 5325 Employees In 2001, the Greek Government struggled to find a strategic investor to buy a majority stake of up to 65% in the 100% state- 55 Aircraft in Fleet owned Olympic Airways. In 2000 Speedwing, a subsidiary of 32 of which Olympic Airways British Airways, which had been brought in to turn the airline’s 4 Airbus A340-300 fortunes prior to privatisation, chose not to exercise an option to 3 Airbus A300-600 buy a 20% stake in the carrier. At the end of that year the 13 Boeing 737-400 Government launched a call for ‘expression of interest’ from 1 Boeing 737-300 potential bidders, but after a year of postponements, candidates 11 Boeing 737-200 withdrawing, and no clear outcome, the tender collapsed in 20 of which Olympic Aviation February 2002. 3 Boeing 717-200 7 ATR-72 The new Athens International Airport, which replaces the 30- th 4 ATR-42 year-old Hellenikon Airport, received its first flight on 28 March 6 Fairchild Dornier 228 2001. The airport, named Eleftherios Venizelos, after a former 3 of which Macedonian Airlines prime minister, is located at Spata, southeast of Athens. 3 Boeing 737-400 Olympic Airways played a leading role in testing the new airport’s facilities, and performed the first civil aviation test flight 8 Aircraft on Order to the airport with an Olympic Airways’ Boeing 737-400. of which Olympic Airways Following the inevitable teething problems, the new airport 8 Boeing 737-800 ended the year with an accolade from the IATA Global nd Monitoring Survey, which ranked it 2 in Europe for passenger Status at 31st December for information satisfaction. on destinations, employees and fleet.

Owned by… 100% State ownership

Owner of… 100% Olympic Aviation 99.9% Macedonian Airlines

Major partnerships Code-share agreement with CSA Czech Airlines.

Financial Results € mill 2001 2000 Turnover Operating profit/loss Net profit/loss

Dionyssis Kalophonos Chairman & CEO

V - 32 ASSOCIATION OF EUROPEAN AIRLINES SAS Frösundaviks Allé 1 19587 Stockholm Sweden Tel. +46 8 797 0000 Fax. +46 8 797 1515 www.scandinavian.net

Jørgen Lindegaard, President & CEO

86 Scheduled Destinations Review of 2001 40 within Scandinavia 37 rest of Europe 2001 in numbers: 23.2 million 9 beyond Europe passengers transported on scheduled services, of which: 25488 Employees 52% within Europe, 43% on 200 Aircraft in Fleet Domestic routes within each of 4 Airbus A340-300 the three countries Norway, 3 Airbus A321-200 Sweden and Denmark, 3% on 12 Boeing 767-300 the North Atlantic and 2% to the 17 Boeing 737-800 Far East. 108 thousand tonnes 6 Boeing 737-700 of freight carried on passenger 30 Boeing 737-600 services. 8 MD90-30 16 MD87 2 MD83 In May 2001, following a change of SAS’s legal structure, a 31 MD82 single SAS share was created. The owners of SAS - Sweden, 16 MD81 Denmark and Norway, with respective holdings of 3/7, 2/7 and 12 DC-9-41 2/7, each of which half state owned and half owned by private 23 deHavilland Q400 interests - were offered a share exchange in the newly created 3 Embraer RJ-145 Swedish limited liability company SAS AB. Shares in the new 9 Fokker 50 th 8 Fokker 28 company were first traded on July 6 . 27 Aircraft on Order SAS was fined by the EU for infringement of the EU competition 3 Airbus A340-300 rules for illegal market co-operation with Danish carrier Maersk 4 Airbus A330-300 Air. The subsequent resignations led to the election of a new 9 Airbus A321-200 Board in November. Earlier in the year, in May, Jørgen 6 Boeing 737-800 Lindegaard took up the position as President & CEO of the 5 deHavilland Q400 company. Status at 31st December for information In October an SAS MD87, flight SK686 from Milan to on destinations, employees and fleet. Copenhagen, crashed in dense fog at Milan’s Linate airport at take-off. Owned by… 50% Private interests By December 2001 SAS had acquired a 98.48% stake in 21.4% Swedish State financially troubled Norwegian carrier Braathens, with the 14.3% Danish State remaining shares taken over in February 2002. SAS increased 14.3% Norwegian State its holding in AEA member Spanair from 49% to 74%. The Owner of… transaction received EU approval in March 2002. The company 100% Air Botnia (Finland) also raised its 34.2% stake in Latvian national airline Air Baltic 100% Braathens (Denmark) to 47.2%. 74% Spanair 63.3% Widerøe’s Flyveselskap(Norway) SAS added its first Airbus 47.2% Air Baltic (Latvia) aircraft to the fleet in 2001. 37.5% Grønlandsfly (Greenland) By year-end the fleet 26% Cimber Air (Denmark) counted four A340s, with a 25% Skyways (Sweden) 20% bmi british midland further three on order, for use on long haul routes. Major partnerships For traffic in Europe, orders Member of the Star Alliance. were placed for twelve Various code-share agreements with: A321s, three of which Estonian Air, Icelandair, Maersk Air. joined the fleet in 2001. Financial Results (Group) SEK mill 2001 2000 Jørgen Lindegaard Turnover 51433 47540 President & CEO Operating profit/loss 743 3710 Net profit/loss (1064) 2135

ASSOCIATION OF EUROPEAN AIRLINES V - 33 Spanair Edificio Spanair Palma de Mallorca Airport 0700 Palma de Mallorca Spain

Tel. +34/971 745020 Fax. +34/971 492553 www.spanair.com

Review of 2001 Gonzalo Pascual Arias, Chairman & CEO Enrique Meliá, Director General 2001 in numbers: 8.1 million passengers transported, 74% on scheduled services, of which: 63% on Domestic routes, 8% within Europe, 3% across the North Atlantic. 9 thousand tonnes 30 Scheduled Destinations of freight carried on passenger services. 21 within Spain 6 rest of Europe Spanair - Spain’s second largest airline - closed its financial 3 beyond Europe year on 31st October 2001 with a negative balance, compared € with a profit of 1.5 million for financial year 1999/2000. The 2750 Employees general turndown in air transport meant the suspension of flights to the US in 2001. However, towards the future, the 47 Aircraft in Fleet company has said it will proceed with all aircraft deliveries as 43 of which Spanair planned, and will maintain its personnel structures. 3 Airbus A321 3 Airbus A320 By March 2002, the European Union cleared the proposed 3 MD87 acquisition of a 74% stake in Spanair by the Scandinavian 23 MD83 airline SAS. SAS already owned 49% of Spanair. The 11 MD82 remaining shares are held by the Teinver group of Spanish 4 of which AeBal business interests. The acquisition reinforces the Star Alliance 4 Boeing 717 network in Southern Europe and the probability of Spanair joining the alliance in the near future. 14 Aircraft on Order 4 Airbus A321 Spanair introduced measures to guarantee flight punctuality, 10 Airbus A320 and gained market share. Passengers on flights running at least 15 minutes late were offered free tickets for another flight on the Status at 31st December for information pioneering routes under the programme, which ran from on destinations, employees and fleet. February. Owned by… In May, Spanair set up a code-share agreement with the 74% SAS Austrian Airlines Group at the launch of its first route to Austria, 26% Teinver from Barcelona to Vienna. In June, Spanair started operating code-share flights on routes between Madrid, Barcelona and Owner of… Havana with the Cuban national airline Cubana de Aviación, 100% AeBal and from November 2001, the company started code-sharing with Portuguese regional airline PGA Portugalia on flights Major partnerships linking Madrid with Lisbon and Oporto. Franchisee: AeBal Various agreements with: Air Canada, Aerolíneas Argentinas, Austrian Airlines Group, Cubana de Aviación, Lufthansa, PGA Portugalia Airlines, Regional Airlines (Morocco), SAS, United Airlines and Varig (Brazil).

Financial Results (FY ending 31st October) € mill 2001/02 2000/01 Turnover 844 Operating profit/loss Net profit/loss (21.8)

Gonzalo Pascual Arias Enrique Meliá Chairman & CEO Director General

V - 34 ASSOCIATION OF EUROPEAN AIRLINES Swiss International Air Lines Ltd 4002 Basel Switzerland

Tel. +41 61 582 00 00 Fax. +41 61 582 33 33 www.swiss.com

Pieter Bouw, Chairman of the Board André Dosé, President & CEO Review of 2001

2001 in numbers: 3.2 million passengers transported on 126 Scheduled Destinations scheduled services, of which: 87% within Europe, 12% on 6 within Switzerland Domestic routes and 1% to Northern Africa. 6.3 tonnes of 80 rest of Europe freight carried on passenger services. 40 beyond Europe

In January 2001 André Dosé succeeded the company’s founder 10000 Employees Moritz Suter as CEO. Towards the end of the year, Pieter Bouw, former President & CEO of KLM, took up the position of 129 Aircraft in Fleet Chairman of the Board. 13 Airbus A330 8 Airbus A321 In early October 2001 Swissair, Switzerland’s largest airline, 11 Airbus A320 filed for bankruptcy protection. A rescue plan - known as 7 Airbus A319 Phoenix Plus - was devised, allowing Swissair to continue flying th 8 MD83 until the end of the Winter season on 30 March 2002, whilst 13 MD11 Crossair, a former 70.5% owned subsidiary of SAirLines which 15 Avro RJ100 was divested prior to the banckruptcy filing of Swissair, was 4 Avro RJ85 transformed into a new company. 22 Embraer RJ-145 28 Saab 2000 Crossair started on a path of expansion, raising its position as one of the largest regional airlines in the world to an 63 Aircraft on Order intercontinental airline, taking up routes previously served by 30 Embraer RJ-190/200 Swissair and adding aircraft and staff previously employed by st 30 Embraer RJ-170 Swissair. By March 31 2002 Crossair had increased its fleet of 3 Embraer RJ-145 82 aircraft to 129, serving a network of 126 destinations. From the start of the Summer timetable 2002, all remaining SR flights Status at 31st March 2002 for and all LX flights will operate under the LX code. Almost ten information on destinations, employees, million passengers are expected to be carried in 2002, and 15 fleet and ownership. million in 2003. The company has already entered into a partnership with American Airlines, with plans to extend this to Owned by… eventual membership in the Oneworld global alliance. 72% Institutional investors 23% Swiss Confederation Through the co-operation of the Swiss government, cantons, 3% Private individuals banks and private investors, funds were raised to finance the 2% Cantons and communities new national airline of Switzerland, branded as ‘SWISS’. The name change from Crossair Ltd to Swiss International Air Lines Owner of… Ltd was approved by the shareholders, for implementation in 45.0% Europe Continental Airways July 2002. (ECA) ‘Crossair Europe’

Major partnerships Code-sharing with American Airlines.

Financial Results CHF mill 2001 2000 Turnover 1393 1275 Operating profit/loss (274) (8) Net profit/loss (314) (25)

Pieter Bouw André Dosé Chairman of the Board President & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 35 TAP Air Portugal Apartado 50194 1704-801 Lisbon Portugal

Tel. +351 1 841 5000 Fax. +351 1 841 5095 www.tap.pt

Norberto Pilar, Chairman Review of 2001 Fernando Pinto, CEO

2001 in numbers: 5.3 million passengers transported on scheduled services, of which: 51% within Europe, 32% on 37 Scheduled Destinations Domestic routes, 12% across the Atlantic and 5% to Sub- 7 within Portugal Saharan Africa. 53 thousand tonnes of freight carried on 15 rest of Europe passenger services. 15 beyond Europe

In February 2001, Swissair, amid a restructuring of its own, 8203 Employees called off a deal to take a strategic stake of 34% in TAP as part of the partial privatisation of the airline planned for 2001. 34 Aircraft in Fleet 4 Airbus A340-300 An Immediate Action Plan was launched, to be implemented 2 Airbus A321-200 over a three-year period, to find new investors, cut costs and 7 Airbus A320-200 return to profit. The first stage of the plan was successfully 16 Airbus A319-100 achieved by the end of 2001, with TAP reporting an operating 5 Airbus A310-300 € € profit of 17.9 million, up from a loss of 61.7 million in 2000. Net result for the year finished at a loss of€ 53.2 million, 3 Aircraft on Order € compared to a loss of 122.0 million in 2000. 1 Airbus A321-200 2 Airbus A320-200 TAP addressed its customer service strategy, with a number of facilities introduced or renewed during the year, both on the Status at 31st December for information ground and on-board: an improved call centre, extended e- on destinations, employees and fleet. ticketing, more efficient telephonic check-in and lost & found services. Owned by… 100% State ownership In the network, services to Natal (Brazil) and Punta Cana (Dominican Republic) were dropped, with a new direct service Owner of… from Funchal to Caracas (Venezuela) to be introduced in early 51% YES 2002. Overall the network was redesigned to offer a larger 40% Air Sao Tome number of frequencies, with better connections and more 15% Air Macau via SEAP holding convenient schedules. company (in which TAP holds 60%). The company continued its medium haul fleet renewal in 2001, having taken delivery of a second Airbus A321-200 in January. Major partnerships TAP phased out its last Boeing - a 737. The fleet now consists Various agreements with: Air Afrique, of only Airbus aircraft, with significant gains resulting from fleet American Airlines, bmi british midland, commonality. Crossair, Deutsche BA, Finnair, LAM (Mozambique), Olympic Airways, PGA Portugalia Airlines, TACV-Transportes Aereos de Cabo Verde.

Financial Results € mill 2001* 2000 Turnover 1215.2 1138.4 Operating profit/loss 17.9 (61.7) Net profit/loss (53.2) (122.0) * provisional

Norberto Pilar Fernando Pinto Chairman CEO

V - 36 ASSOCIATION OF EUROPEAN AIRLINES TAROM – Romanian Air Transport Ploiesti Road 16.5 Km Otopeni Airport Bucharest Romania

Tel. +40 1 2014700 Fax. +40 1 2014761 www.tarom.ro Review of 2001 Nicolae Demetriade, Chairman & CEO 2001 in numbers: 1.2 million passengers transported, 83% on scheduled services, of which: 54% within Europe, 8% on Domestic routes, 16% to the African continent and the Middle 42 Scheduled Destinations East, 4% on the North Atlantic and 1% to the Far East. 4.4 12 within Romania thousand tonnes of freight carried, mostly on passenger 22 rest of Europe services. 8 beyond Europe

In February 2001, TAROM put in place a set of austerity 2721 Employees measures to bring the company back to profitability by 2005, 18 Aircraft in Fleet following several difficult years. The immediate measures 2 Airbus A310-300 included a rationalisation of the network and cost saving 2 Boeing 737-700 measures, including reduction in number of TAROM offices and 7 Boeing 737-300 staff. In December, the company was given the go-ahead to 7 ATR 42-500 increase its share capital by converting debts into shares, the amount of which, is expected to be announced in 2002. 6 Aircraft on Order

6 Boeing 737-700/800 In October 2001, TAROM moved its internal flights from

Baneasa Airport to Otopeni International Airport, as part of a Status at 31st December for information reorganisation of the internal network to be completed by end- on destinations, employees and fleet. 2004. TAROM serves 11 destinations within Romania, from its homebase in Bucharest. Owned by…

92.63% State ownership Apart from the domestic network, TAROM also offers 22 cross- 5.42% Romanian Air Traffic Services border services within Europe and operates an extensive 1.43% SIF Muntenia (State-owned network of destinations in the Middle East region, as well as financial institution) long haul to New York and Beijing in China. The Winter 0.52% Romanian Civil Aviation timetable saw a reduction in the number of destinations offered, Authority with services to Abu Dhabi, Kuwait, Riyadh, Tripoli, Stockholm,

Barcelona and Montreal no longer served. Owner of…

- At year-end the fleet counted two Airbus, nine Boeing aircraft and seven ATRs. 2001 saw the delivery of two new Boeing Major partnerships 737-700 aircraft as part of the fleet modernisation program. Various code-share agreements with: These aircraft, with a maximum range of 6000 kilometres, seat Aeroflot, Air France, Alitalia, Austrian 14 in Business class and 102 in Economy Class. Another six Airlines, CSA Czech Airlines, Hemus Air Boeing 737 are on order and will enter the fleet from the end of (Bulgaria), Iberia and Malev. 2001. There is an option to purchase a further two ATR-42s and plans to replace the two Financial Results Airbus A310s with A330s or US$ ‘000 2001 2000* Boeing 767s and the Turnover 178978 possible addition of a third Operating profit/loss (57547) aircraft to operate long haul Net profit/loss (46143) services. * estimate

Nicolae Demetriade Chairman & CEO

ASSOCIATION OF EUROPEAN AIRLINES V - 37 Türk Hava Yollari A.O. Genel Müdürlük Binasi Atatürk Havalimani 34830 Yesilköy Istanbul Turkey

Tel. +90 212 663 63 00 Fax. +90 212 663 47 44 or 49 04 www.turkishairlines.com Review of 2001

Yusuf Bolayirli, President 2001 in numbers: 10.3 million passengers transported, 96% on Cem Kozlu, Chairman of the Board scheduled services, of which: 50% on Domestic routes, 33%

within Europe, 2% on the North Atlantic, 7% to Africa and the

Middle East and 4% to the Far East. 101 thousand tonnes of 104 Scheduled Destinations freight carried, 4% on all-cargo services. 28 within Turkey

45 rest of Europe In 2001 Turkish Airlines posted a net profit of 19.9 trillion 31 beyond Europe Turkish lire ( €€ 15.8 million), compared to a loss of TRL 64 tn (

51 million) in 2000. 11242 Employees

The planned flotation of 51% of the company’s capital, which is 69 Aircraft in Fleet 98% state-owned, was abandoned at the end of March, after an 7 Airbus A340-300 extension of the deadline for bids failed to produce the 7 Airbus A310-300 necessary investors. 24 Boeing 737-800 2 Boeing 737-500 In January 2001, Turkey opened a second international airport 16 Boeing 737-400 for Istanbul, on the Asian side of the city. The Sabiha Gokcen 1 Boeing 727F airport, named after Turkey’s first woman pilot, is designed to 9 Avro RJ-100 accommodate three million passengers and 90,000 tonnes of 3 Avro RJ-70 cargo traffic annually. Istanbul’s Ataturk airport, on the European side of the Bosphorus, already inaugurated a new 2 Aircraft on Order international terminal to meet rising traffic to the capital in 2 Boeing 737-800 January 2000. Status at 31st December for information In 2001 THY abandoned several non-profitable domestic routes th on destinations, employees and fleet. and flights to Thessaloniki in Greece. Following September 11 the service to Miami was also terminated. Owned by… 98.2% State-owned Privatisation Turkish Airlines Cargo chose Maastricht Aachen Airport (MAA) Administration as its Continental European hub. The airport is geographically 1.8% Private investors well placed for distribution to Germany, the Netherlands, France and Belgium. The Boeing 727 freighter, which no longer Owner of… complies with EU noise regulations, was replaced by a leased- 50% Sun Express in A300 aircraft. Major partnerships In 2001 Turkish Airlines sold the six Airbus A310-200s Various code-share agreements with: previously in the fleet. Asiana Airlines, Cathay Pacific, Croatia Airlines, CSA Czech Airlines, JAL, LOT and Sun Express.

Financial Results TRL tn 2001 2000 Turnover 1935.4 1056.7 Operating profit/loss (52.1) Net profit/loss 19.9 (64.0)

Yusuf Bolayirli Cem Kozlu President Chairman of the Board

V - 38 ASSOCIATION OF EUROPEAN AIRLINES

CONTENTS

September 11th, 2001 i

SECTION II SEPTEMBER 11TH - OTHER ASPECTS II-1 The Political Response II-2 Security II-3 Insurance II-5 Slots II-6

SECTION III REBUILDING FOR THE FUTURE III-1 AEA Chairman’s Message III-2 Strengthening the Value Chain III-4 Infrastructure Provision III-6

SECTION IV OTHER ISSUES IV-1 AEA Passenger Commitment IV-2 Satellite Navigation IV-4 Radio Frequency Spectrum IV-4 Aircraft Noise IV-5 EU/US Aviation Relations IV-6

SECTION V SPOTLIGHT ON THE AEA V-1 AEA Highlights of 2001 V-3 Mission Statement V-7 Membership Criteria V-7 The AEA Team V-8 Airline Profiles & Review of 2001 V-11

SECTION VI KEY STATISTICS VI-1 Key Statistics - Total AEA VI-2 Key Statistics - By Carrier VI-4 AEA Fast Facts VI-11 What do we mean by…? VI-12

ASSOCIATION OF EUROPEAN AIRLINES VI - 1 KEY STATISTICS - TOTAL AEA SCHEDULED TRAFFIC BY ROUTE AREA & NON-SCHEDULED TRAFFIC

121 - 2 Geographical 2001 Domestic Total Europe Europe %/pt %/pt %/pt 2000 DO EU ET Passengers (000) 103 447.3 -1.4 139 378.5 -1.1 242 825.8 -1.2 Passenger Kilometres (mill) 54 684.0 -1.3 136 229.8 -0.2 190 913.8 -0.5 Share in Tot. Sched. AEA Traffic (%) 9.3 23.1 32.4 Seat Kilometres (mill) 85 637.7 2.9 218 179.5 1.6 303 817.2 1.9 Passenger Load Factor (%) 63.9 -2.7 62.4 -1.1 62.8 -1.6

Total Freight Tonnes Carried (000) 234.9 -11.4 629.0 -19.8 863.9 -17.7 Total Freight Tonne-Kilometres (mill) 172.5 -5.6 803.6 -18.2 976.1 -16.3 % Freight on Passenger Services 84.6 81.5 82.1

Total Revenue Tonne-Kilometres (mill) 5 424.8 0.2 13 702.7 -0.6 19 127.6 -0.4 Available Tonne-Kilometres (mill) 9 695.6 5.1 25 327.2 -0.5 35 022.9 1.0 Overall Load Factor (%) 56.0 -2.7 54.1 0.0 54.6 -0.7

Average Seats per Aircraft 129 121 123 Average Stage Distance (km) 472 868 708

3 42 - 4 Europe - Europe - Int'l Short/ 2001 North Africa Middle East Medium Haul %/pt %/pt %/pt NF EM IE Passengers (000) 3 121.9 -5.4 5 651.6 -7.6 148 152.1 -1.4 Passenger Kilometres (mill) 6 103.6 -5.4 18 472.0 -6.6 160 805.3 -1.2 Share in Tot. Sched. AEA Traffic (%) 1.0 3.1 27.3 Seat Kilometres (mill) 9 284.4 1.7 29 052.8 -1.1 256 516.7 1.3 Passenger Load Factor (%) 65.7 -4.9 63.6 -3.8 62.7 -1.6

Total Freight Tonnes Carried (000) 56.6 1.4 194.5 -12.7 880.2 -17.2 Total Freight Tonne-Kilometres (mill) 153.5 2.2 804.6 -11.4 1 761.6 -13.7 % Freight on Passenger Services 94.1 89.9 86.5

Total Revenue Tonne-Kilometres (mill) 740.4 -3.1 2 610.9 -7.7 17 054.0 -1.9 Available Tonne-Kilometres (mill) 1 169.1 0.9 4 444.5 -1.9 30 940.8 -0.7 Overall Load Factor (%) 63.3 -2.6 58.7 -3.7 55.1 -0.7

Average Seats per Aircraft 166 192 128 Average Stage Distance (km) 1 709 2 689 929

VI - 2 ASSOCIATION OF EUROPEAN AIRLINES 5 67 8 Europe - Sub North Atlantic Mid Atlantic South Atlantic Saharan Africa %/pt %/pt %/pt %/pt NA MA SA AF 23 760.3 -10.8 5 420.2 11.2 3 095.3 -4.2 5 942.6 -4.4 161 633.0 -10.6 42 173.7 12.2 27 916.6 -5.0 40 506.9 -5.5 27.4 7.2 4.7 6.9 218 104.3 -6.1 53 285.2 12.9 37 718.3 2.0 52 288.0 -9.3 74.1 -3.7 79.1 -0.5 74.0 -5.4 77.5 3.1

1 317.3 -16.1 162.5 18.8 212.4 -2.0 311.3 -4.2 9 193.3 -15.7 1 337.1 19.6 1 874.9 -2.4 2 224.1 -4.8 71.0 80.8 50.1 59.6

24 992.3 -12.2 5 335.0 14.0 4 553.1 -3.9 6 160.9 -5.3 36 542.5 -6.5 7 798.9 15.9 6 815.7 1.9 8 808.2 -6.5 68.4 -4.4 68.4 -1.2 66.8 -4.1 69.9 0.9

277 330 270 271 6 254 6 192 6 716 4 852

95 - 91 - 9 Europe - Far Non-Scheduled East/Australasia Total Long Haul Total Scheduled %/pt %/pt %/pt %/pt AE IC TO CT 11 931.9 -5.6 50 371.3 -6.4 301 970.7 -2.3 6 426.4 -10.0 100 810.5 -7.0 373 347.8 -6.5 588 837.1 -4.7 14 097.2 -16.6 17.1 63.4 100.0 131 681.7 -4.8 493 505.2 -3.8 835 659.5 -1.6 17 172.6 -16.2 76.6 -1.9 75.7 -2.2 70.5 -2.3 82.1 -0.4

1 456.4 -4.3 3 460.9 -8.2 4 575.9 -10.3 43.1 68.9 12 987.3 -3.7 27 617.8 -7.2 29 552.0 -7.6 310.4 139.0 36.7 53.0 55.2 2.8

22 858.2 -5.1 63 928.4 -6.7 86 407.3 -5.4 1 594.5 -4.9 31 483.9 -0.4 91 488.7 -2.2 132 125.1 -1.4 2 275.6 -7.5 72.6 -3.6 69.9 -3.3 65.4 -2.8 70.1 1.9

293 284 190 171 6 453 6 087 1 190 1 767

ASSOCIATION OF EUROPEAN AIRLINES VI - 3 TOTAL SCHEDULED

2001 Passengers Passenger Kilometres

(000) % rank (mill) % rank

Adria Airways 689.6 9.8 29 656.7 16.7 28 Aer Lingus 6 493.5 -2.2 12 8 943.5 0.6 12 Air France 43 015.7 9.7 2 95 808.2 4.4 2 Air Malta 1 405.2 3.0 23 2 315.8 -2.9 22 Alitalia 24 514.2 -4.2 5 36 124.3 -11.1 6 Austrian Airlines 3 608.8 -1.2 17 8 140.4 -7.5 14 bmi british midland 6 729.6 -5.2 11 4 534.4 11.6 17 British Airways 34 577.4 -9.6 3 103 374.3 -13.1 1 Cargolux ------Croatia Airlines 1 040.5 14.0 25 737.4 14.5 27 CSA 2 559.9 15.5 20 3 565.6 8.3 19 Cyprus Airways 1 503.4 7.7 22 3 011.9 8.1 21 Finnair 6 169.2 2.4 13 7 932.7 6.2 15 Iberia 24 928.6 1.6 4 41 298.4 3.1 5 Icelandair 1 357.9 -4.8 24 3 713.7 -5.6 18 JAT 994.9 5.8 27 831.8 2.3 26 KLM 15 904.3 -2.0 7 57 536.4 -4.6 4 Lufthansa 44 101.3 -2.8 1 91 336.1 -3.0 3 Luxair 885.9 1.7 28 586.0 5.1 29 Malev 2 074.7 -5.6 21 3 146.0 -11.9 20 Meridiana 3 269.7 -7.4 18 2 140.1 -9.3 24 Olympic Airways 6 127.9 -8.4 14 8 434.2 -4.8 13 Sabena 9 045.6 -15.8 10 15 319.8 -20.9 9 SAS 23 232.3 -0.6 6 23 277.3 1.7 8 Spanair 6 012.6 18.7 15 5 967.4 11.3 16 SWISS 3 238.1 14.3 19 2 291.6 15.4 23 Swissair 12 267.6 -13.8 8 30 589.5 -10.7 7 TAP Air Portugal 5 305.0 0.5 16 10 341.1 -0.4 11 TAROM 1 011.9 -14.6 26 1 842.0 -11.2 25 THY Turkish Airlines 9 905.4 -14.0 9 15 040.6 -8.8 10

AEA 301 970.7 -2.3 588 837.1 -4.7

VI-4 ASSOCIATION OF EUROPEAN AIRLINES Available Seat Kilometres Passenger Load Factor 2001

(mill) % rank (%) pt rank

1 116.6 18.6 28 58.8 -0.9 22 Adria Airways 4 331.5 6.8 17 68.7 -4.2 4 Aer Lingus 33 620.6 17.0 2 65.0 -3.4 8 Air France 2 989.7 -4.8 23 73.3 6.7 1 Air Malta 22 677.0 -2.2 6 64.7 0.1 10 Alitalia 4 001.3 -2.2 19 59.2 -0.3 19 Austrian Airlines 6 449.6 4.1 15 60.4 -5.2 18 bmi british midland 31 316.7 -4.2 3 62.1 -1.6 12 British Airways ------Cargolux 1 396.0 13.7 26 52.0 1.8 28 Croatia Airlines 3 082.7 20.0 22 65.0 1.5 9 CSA 4 045.5 9.5 18 71.6 -0.7 2 Cyprus Airways 9 435.2 6.1 11 54.3 1.0 26 Finnair 28 145.4 7.4 4 66.9 -3.1 6 Iberia 2 752.8 -0.9 24 68.7 -1.6 5 Icelandair 1 274.7 27.9 27 58.9 2.5 21 JAT 11 297.5 -2.2 8 70.6 0.1 3 KLM 38 661.5 3.2 1 61.5 -3.1 14 Lufthansa 1 089.2 4.5 29 53.8 0.3 27 Luxair 3 284.7 -0.6 21 56.8 -1.8 23 Malev 3 866.0 -8.9 20 55.4 -0.3 25 Meridiana 7 638.4 -3.2 13 61.3 0.4 16 Olympic Airways 10 090.4 -13.7 10 61.8 0.0 13 Sabena 25 130.1 6.2 5 59.1 -2.3 20 SAS 7 045.3 10.1 14 60.5 1.4 17 Spanair 4 469.2 12.7 16 49.9 -0.2 29 SWISS 11 019.6 -13.9 9 61.4 0.2 15 Swissair 7 846.7 3.1 12 66.4 -1.7 7 TAP Air Portugal 1 768.8 -1.3 25 56.5 3.4 24 TAROM 13 974.5 -8.1 7 64.7 -3.5 11 THY Turkish Airlines

303 817.2 1.9 62.8 -1.6 AEA

ASSOCIATION OF EUROPEAN AIRLINES VI - 5 KEY STATISTICS - BY CARRIER

TOTAL EUROPE - Geographical Europe + Domestic

2001 Passengers Passenger Kilometres

(000) % rank (mill) % rank 2000 Adria Airways 689.6 9.8 29 656.7 16.7 28 Aer Lingus 5 390.9 -2.7 15 2 977.6 0.6 16 Air France 32 033.6 12.7 2 21 866.8 11.1 2 Air Malta 1 284.0 9.3 23 2 192.7 4.8 20 Alitalia 21 028.9 -2.6 6 14 675.4 -2.0 6 Austrian Airlines 2 610.7 1.4 19 2 367.5 -2.7 18 bmi british midland 6 623.0 -6.7 11 3 896.5 -4.1 15 British Airways 22 994.2 -6.8 3 19 459.8 -6.6 3 Cargolux ------Croatia Airlines 1 035.2 15.1 24 726.2 17.9 27 CSA 2 227.2 19.7 20 2 003.2 22.8 22 Cyprus Airways 1 303.7 8.1 22 2 897.5 8.4 17 Finnair 5 731.9 2.1 13 5 121.6 8.0 12 Iberia 21 789.7 1.6 5 18 828.8 2.7 4 Icelandair 933.8 -3.0 26 1 891.0 -3.1 23 JAT 946.2 8.8 25 751.2 33.5 26 KLM 9 079.6 -0.5 7 7 971.8 -2.1 8 Lufthansa 34 888.7 -2.6 1 23 762.7 -1.7 1 Luxair 885.9 1.7 27 586.0 5.1 29

Malev 1 787.1 -3.8 21 1 867.1 -3.6 24 Meridiana 3 269.7 -7.4 17 2 140.1 -9.3 21 Olympic Airways 5 479.6 -8.3 14 4 683.1 -2.6 13 Sabena 7 518.9 -13.7 10 6 240.7 -13.6 10 SAS 21 957.6 -0.7 4 14 840.2 2.2 5 Spanair 5 789.0 19.6 12 4 262.4 12.7 14 SWISS 3 197.4 12.9 18 2 231.2 12.3 19 Swissair 8 608.6 -15.4 8 6 769.3 -13.6 9 TAP Air Portugal 4 405.4 0.2 16 5 211.7 0.5 11 TAROM 752.0 -12.8 28 998.9 5.0 25 THY Turkish Airlines 8 583.8 -15.4 9 9 036.1 -12.8 7

AEA 242 825.8 -1.2 190 913.8 -0.5

VI - 6 ASSOCIATION OF EUROPEAN AIRLINES Available Seat Kilometres Passenger Load Factor 2001

(mill) % rank (%) pt rank

1 116.6 18.6 28 58.8 -0.9 24 Adria Airways 12 454.7 6.5 14 71.8 -4.2 4 Aer Lingus 127 980.3 8.8 2 74.9 -3.2 2 Air France 3 272.0 -11.1 24 70.8 6.0 8 Air Malta 50 953.9 -9.9 6 70.9 -0.9 7 Alitalia 12 185.6 -7.3 15 66.8 -0.2 15 Austrian Airlines 7 542.8 21.8 17 60.1 -5.5 21 bmi british midland 149 228.8 -10.7 1 69.3 -1.9 12 British Airways ------Cargolux 1 417.6 11.0 27 52.0 1.6 28 Croatia Airlines 5 122.2 7.9 20 69.6 0.2 11 CSA 4 294.0 8.9 22 70.1 -0.5 10 Cyprus Airways 13 063.2 5.3 12 60.7 0.5 20 Finnair 58 609.9 8.0 5 70.5 -3.3 9 Iberia 5 201.4 -4.2 19 71.4 -1.0 6 Icelandair 1 460.9 -6.0 26 56.9 4.7 25 JAT 73 875.4 -2.5 4 77.9 -1.7 1 KLM 127 107.2 2.3 3 71.9 -4.0 3 Lufthansa 1 089.2 4.5 29 53.8 0.3 27 Luxair 5 259.0 -5.6 18 59.8 -4.3 23 Malev 3 866.0 -8.9 23 55.4 -0.3 26 Meridiana 13 046.2 -4.4 13 64.6 -0.3 17 Olympic Airways 22 394.7 -21.2 10 68.4 0.2 13 Sabena 35 888.7 5.3 8 64.9 -2.3 16 SAS 9 766.4 12.0 16 61.1 -0.4 19 Spanair 4 563.4 15.1 21 50.2 0.1 29 SWISS 42 731.3 -8.0 7 71.6 -2.2 5 Swissair 15 214.7 6.4 11 68.0 -4.6 14 TAP Air Portugal 3 073.1 -14.1 25 59.9 1.9 22 TAROM 23 880.3 -3.7 9 63.0 -3.5 18 THY Turkish Airlines

835 659.5 -1.6 70.5 -2.3 AEA

ASSOCIATION OF EUROPEAN AIRLINES VI - 7 TOTAL SCHEDULED - Passenger & All-Cargo Services

2001 Freight Tonnes Carried Freight Tonne-Kilometres

(000) % rank (mill) % rank

Adria Airways 4.2 1.6 26 4.1 6.0 25 Aer Lingus 36.1 -11.8 17 146.6 -12.6 15 Air France 626.8 -6.2 2 4 632.9 -7.0 2 Air Malta 9.5 5.6 22 18.5 5.3 23 Alitalia 227.9 -10.2 7 1 530.4 -12.2 6 Austrian Airlines 55.8 -9.3 13 252.4 -11.3 12 bmi british midland 17.0 8.6 18 33.0 264.0 20 British Airways 595.9 -18.0 3 3 936.4 -13.8 3 Cargolux 432.9 -4.4 5 3 621.4 -4.5 5 Croatia Airlines 4.1 7.4 27 2.7 6.5 27 CSA 13.5 -1.4 20 25.8 -19.9 22 Cyprus Airways 16.3 -6.3 19 40.0 -5.1 18 Finnair 59.8 -13.0 12 251.7 -16.4 13 Iberia 195.8 -2.9 8 847.7 0.9 8 Icelandair 37.8 -4.2 16 110.4 -4.3 16 JAT 3.5 38.4 28 4.0 -36.4 26 KLM 508.7 -5.5 4 3 878.3 -2.2 4 Lufthansa 1 057.0 -5.7 1 7 176.0 0.9 1 Luxair 0.3 -20.4 30 0.1 -15.3 29

Malev 12.3 -12.0 21 37.7 -25.9 19 Meridiana 2.7 -10.1 29 1.7 -13.4 28 Olympic Airways 40.0 -19.8 15 95.0 -24.6 17 Sabena 60.7 -39.7 11 330.2 -41.9 11 SAS 108.0 -19.9 9 485.4 -28.6 9 Spanair 8.9 -15.6 23 27.0 -19.2 21 SWISS 6.3 5.4 24 n.a. n.a. Swissair 274.4 -21.6 6 1 512.8 -21.8 7 TAP Air Portugal 53.5 -11.5 14 207.7 -7.2 14 TAROM 4.3 -8.4 25 8.9 -21.7 24 THY Turkish Airlines 101.8 -18.9 10 333.1 -12.3 10

AEA 4 575.9 -10.3 29 552.0 -7.6

VI - 8 ASSOCIATION OF EUROPEAN AIRLINES Revenue Tonne-Kilometres Available Tonne-Kilometres 2001

(mill) % rank (mill) % rank

63.2 15.9 29 122.0 12.4 29 Adria Airways 959.0 0.4 15 1 428.4 6.5 16 Aer Lingus 13 458.9 0.2 2 18 964.0 3.4 3 Air France 212.3 -0.5 24 403.5 -3.8 26 Air Malta 5 153.9 -11.1 5 7 296.9 -11.9 6 Alitalia 1 111.3 -8.2 13 1 752.7 -4.9 14 Austrian Airlines 490.2 25.1 18 985.0 37.5 17 bmi british midland 13 337.2 -13.6 3 22 577.4 -7.6 2 British Airways 3 621.4 -4.5 8 4 423.2 4.1 9 Cargolux 69.9 14.0 28 154.1 10.0 28 Croatia Airlines 349.7 5.6 20 576.2 4.8 21 CSA 314.0 6.2 22 508.4 7.0 22 Cyprus Airways 977.6 -0.9 14 1 901.5 0.8 13 Finnair 4 619.0 2.9 6 8 046.8 6.4 5 Iberia 475.1 -5.4 19 764.0 -2.3 19 Icelandair 78.9 -2.1 27 171.3 -9.3 27 JAT 9 840.3 -3.3 4 12 902.5 -0.7 4 KLM 16 562.1 -1.0 1 24 192.7 5.8 1 Lufthansa 53.1 5.1 30 105.4 3.9 30 Luxair 324.4 -13.9 21 698.6 -8.0 20 Malev 194.3 -9.4 25 429.1 -7.4 25 Meridiana 905.9 -7.3 16 1 709.1 -4.3 15 Olympic Airways 1 831.2 -25.9 11 3 301.2 -25.4 11 Sabena 2 833.5 -4.3 9 4 573.3 0.5 8 SAS 564.1 8.2 17 927.2 12.7 18 Spanair 222.3 15.6 23 472.6 15.1 24 SWISS 4 568.2 -14.7 7 6 760.1 -11.0 7 Swissair 1 156.4 -1.6 12 2 016.5 5.8 12 TAP Air Portugal 176.7 -11.6 26 497.2 -13.3 23 TAROM 1 883.3 0.7 10 3 464.1 3.4 10 THY Turkish Airlines

86 407.3 -5.4 132 125.1 -1.4 AEA

ASSOCIATION OF EUROPEAN AIRLINES VI - 9 TOTAL SCHEDULED - Passenger & All-Cargo Services

2001 Overall Load Factor

(%) pt rank

Adria Airways 51.8 1.6 21 Aer Lingus 67.1 -4.1 7 Air France 71.0 -2.3 3 Air Malta 52.6 1.8 20 Alitalia 70.6 0.6 4 Austrian Airlines 63.4 -2.3 8 bmi british midland 49.8 -4.9 24 British Airways 59.1 -4.1 14 Cargolux 81.9 -7.4 1 Croatia Airlines 45.4 1.6 28 CSA 60.7 0.4 13 Cyprus Airways 61.8 -0.5 11 Finnair 51.4 -0.9 22 Iberia 57.4 -2.0 15 Icelandair 62.2 -2.0 9 JAT 46.1 3.4 27 KLM 76.3 -2.0 2 Lufthansa 68.5 -4.7 5 Luxair 50.3 0.6 23

Malev 46.4 -3.2 26 Meridiana 45.3 -1.0 29 Olympic Airways 53.0 -1.7 19 Sabena 55.5 -0.4 17 SAS 62.0 -3.1 10 Spanair 60.8 -2.5 12 SWISS 47.0 0.2 25 Swissair 67.6 -2.9 6 TAP Air Portugal 57.3 -4.3 16 TAROM 35.5 0.7 30 THY Turkish Airlines 54.4 -1.4 18

AEA 65.4 -2.8

VI - 10 ASSOCIATION OF EUROPEAN AIRLINES Association of European Airlines

28 member airlines 362,000 employees 2279 aircraft in the fleet

302 million passengers 5 million tonnes of freight 1 take-off every 8 seconds 310 times around the world every day

ASSOCIATION OF EUROPEAN AIRLINES VI - 11 WHAT DO WE MEAN BY … ?

MEMBERS OF THE AEA including Iceland, Turkey, Azores, Canary Islands, Madeira and Cyprus. JP Adria Airways EI Aer Lingus 1-2 Total Europe: the sum of Domestic & Territorial AF Air France and cross-border Geographical Europe. KM Air Malta AZ Alitalia 3. Europe-North Africa: scheduled services between OS Austrian Airlines Europe and Algeria, Egypt, Libya, Morocco, Sudan and BD bmi british midland Tunisia. BA British Airways CV Cargolux Airlines International 4. Europe-Middle East: scheduled terminating OU Croatia Airlines services between Europe and Bahrain, Iran, Iraq, OK CSA Czech Airlines Israel, Jordan, Kuwait, Lebanon, Muscat, Oman, Qatar, CY Cyprus Airways Saudi Arabia, Syria, UAE, Republic of Yemen. AY Finnair IB Iberia 2-4 International Short/Medium Haul: the sum of FI Icelandair Geographical Europe, North Africa and Middle East. JU JAT Yugoslav Airlines KL KLM 5. North Atlantic: scheduled services between Europe LH Lufthansa and the Americas via gateways in Continental USA and LG Luxair Canada. MA Malev Hungarian Airlines IG Meridiana 6. Mid Atlantic: scheduled services between Europe OA Olympic Airways and the Americas via gateways in the Caribbean (plus SN Sabena Bermuda), Central America or the South American SK SAS mainland north of Brazil. JK Spanair LX SWISS 7. South Atlantic: scheduled services between Europe SR Swissair and the Americas via gateways in, or south of, Brazil. TP TAP Air Portugal RO TAROM 8. Europe-Sub Saharan Africa: scheduled services TK Turkish Airlines between Europe and Africa, excluding those countries classed as North Africa (see above).

AREA/ROUTE DEFINITIONS 9. Europe-Far East and Australasia: scheduled services between Europe and points east of the Middle The data refer to the scheduled operations of AEA East region, including trans-Polar and trans-Siberian member airlines, broken down between the following flights. groups of routes. It should be noted that each route is allocated in its entirety to one region from station of 5-9 Total Long-haul: the sum of North, Mid- and South origin to final destination, except for the Atlantic where Atlantic, Sub-Saharan Africa, Far East/Australasia and first point of entry determines the route allocation. ‘Other long-haul’ routes not covered above.

Numbering corresponds to that found in the Key Total International: the sum of International Statistics section. Short/Medium Haul and Total Long-haul.

1. Domestic & Territorial: scheduled services 1-9 Total Scheduled Traffic: the sum of International commencing and terminating within the boundries of a Short/Medium Haul and Total Long-haul plus Domestic State by an air carrier whose principal place of & Territorial. business is in that State, or on routes between a State and territories belonging to it, or between two such Non-Scheduled: see below. territories even tough a stage may cross international waters or over the territory of another State and carry Systemwide: Total Scheduled and Non-Scheduled international traffic on intermediate stages. In the case traffic. of multinational airlines owned by partner States, traffic within each partner State is reported as Domestic and all other traffic as international. STATISTICAL DEFINITIONS

2. Geographical Europe: includes all scheduled Reporting Methodology: For the statistical data international routes originating and terminating within included in the data tables in this Yearbook, the the region comprising geographical Europe and reporting guideline applicable from 2001 data is as ° European Russia up to the Urals (longitude 55 E), follows: All operational and traffic items should be reported by the operating carrier, including those

VI - 12 ASSOCIATION OF EUROPEAN AIRLINES performed by code-shared, franchised or pooled free; (ii) persons travelling at a fare or discount services, blocked-off charter, blocked-space available only to employees of air carriers or their arrangements, joint services and leased aircraft agents or only for travel on the business of the carriers; services. In this context the term operating carrier (iii) infants who do not occupy a seat. refers to the carrier whose flight number is being used for air traffic control purposes. Revenue Freight: All freight counted on a point-to- point basis (in metric tonnes) covered by air waybills for In terms of data coverage, airline mainline data may which remuneration is received. Freight carried on also include data for subsidiaries, franchisees or trucking services is not included. daughter companies. For 2001 data, following subsidiaries and/or franchisees are reported to the Distances: Airport-to-Airport great circle distances are AEA annual data collection by the participating airlines: used.

• Air France (AF): Gill Airways, Brit Air, Corse Revenue Passenger-Kilometres (RPK): One fare- Mediterranée (CCM), Jersey European, City Jet, paying passenger transported one kilometre. RPK's Regional Airlines, Proteus, Flandre Air. are computed by multiplying the number of revenue • Alitalia (AZ): Alitalia Team, Alitalia Express. passengers by the kilometres they are flown. • British Airways (BA): Brymon Airways, CityFlyer Express. Available Seat-Kilometres (ASK): The total number of • bmi british midland (BD): BD Commuter. seats available for the transportation of revenue • Icelandair (FI): Icelandair Cargo. passengers multiplied by the number of kilometres • Spanair (JK): AeBal (Aerolineas de Baleares). which those seats are flown. • KLM (KL): KLM CityHopper. Passenger Load Factor %: The percentage of seating • Lufthansa (LH): Lufthansa Cargo, Lufthansa capacity which is actually sold and utilised. Computed CityLine,Team Lufthansa (Augsburg Airways, by dividing revenue passenger-kilometres flown by Rheinthalflug, Cirrus Air, Cimber Air Contact Air). available seat-kilometres flown on revenue passenger • Austrian Airlines (OS): Austrian Airlines AG only. • services. SAS (SK): wetlease operations on SK Commuter, Swedair, Falcon Air and bmi british midland. Revenue Tonne-Kilometres (RTK): One tonne of • Sabena (SN): DAT revenue traffic transported one kilometre. Revenue • Swissair (SR): wetlease operations on Crossair. tonne-kilometres are computed by multiplying metric tonnes of revenue traffic (passenger, freight and mail) Scheduled Services: Flights scheduled and by the kilometres which this traffic is flown. Passenger performed for remuneration according to a published tonne-kilometres are calculated using standard weights timetable, or so regular or frequent as to constitute a (including baggage) which may differ between airlines recognisably systematic series, which are open to and between domestic/short/long-haul. direct booking by members of the public. Extra flights occasioned by overflow traffic from scheduled flights Available Tonne-Kilometres (ATK): The total number and preparatory revenue flights on planned air services of metric tonnes available for the transportation of are also considered to be scheduled services. passengers, freight and mail multiplied by the number of kilometres which this capacity is flown. Non-scheduled services: Are defined as ‘Non- scheduled services’: charter flights and special flights Overall Load Factor %: The percentage of total performed for remuneration on an irregular basis, capacity available for passengers, freight and mail including empty flights and blocked-off charters, other which is actually sold and utilised. Computed by than those reported under scheduled services. dividing total revenue tonne-kilometres actually flown Blocked-off charters: when the whole capacity of an by total available tonne-kilometres. aircraft is reserved for charter sale on flights published as scheduled but carried out as charter flights on the Yield: The average amount of revenue received per same or similar routing and timetable. revenue tonne-kilometre. Passenger yield: passenger revenue per RPK. Revenue Passengers Carried: A passenger for whose transportation an air carrier receives commercial Unit Cost: The average operating cost incurred per remuneration. This includes, for example, (i) available tonne-kilometre. passengers travelling under publicly available promotional offers (for example “two-for-one”) or loyalty Operating Ratio: The relationship between operating programmes (for example redemption of frequent flyer revenues and operating expenses. The latter may be points); (ii) passengers travelling as compensation for inclusive or exclusive of net interest. denied boarding; (iii) passengers travelling at corporate discounts; (iv) passengers travelling on preferential Breakeven Load Factor: The load factor at which fares (government, seamen, military, youth, student operating revenues will cover operating costs. Unit etc). Are excluded, for example, (i) persons travelling cost divided by yield.

ASSOCIATION OF EUROPEAN AIRLINES VI - 13 1973) Denmark, Ireland, United Kingdom, (from 1981), Greece, (from 1986) Portugal, Spain, (from 1995) AIR FREEDOM RIGHTS Austria, Finland and Sweden.

1st freedom: to overfly one country en-route to Eurocontrol: European Organisation for the Safety of another. Air Navigation.

2nd freedom: to make a technical stop in another IACA: International Air Carrier Association: worldwide country. membership of leisure (non-scheduled) air carriers.

3rd freedom: to carry passengers from the home IATA: International Air Transport Association, with country to another country. headqarters in Geneva and Montreal.

4th freedom: to carry passengers to the home country ICAO: International Civil Aviation Organisation, with from another country. headquarters in Montreal, Canada.

5th freedom: to carry passengers between two OAG: Official Airline Guide, of the Reed Elsevier plc countries by an airline of a third on a route with Group. origin/destination in its home country.

6th freedom: to carry passengers between two DIRECTORATE GENERALS countries by an airline of a third on two routes OF THE EUROPEAN COMMISSION connecting in its home country. Agriculture 7th freedom: to carry passengers between two Competition countries by an airline of a third on a route outside its Economic and Financial Affairs home country. Education and Culture Employment and Social Affairs 8th freedom or cabotage: to carry passengers within Energy and Transport (DG Tren) a country by an airline of another country on a route Enterprise with origin/destination in its home country. Environment Fisheries 9th freedom or Stand-Alone cabotage: to carry Health and Consumer Protection passengers within a country by an airline of another Information Society country. Internal Market Joint Research Centre True domestic: to carry passengers by an airline in its Justice and Home Affairs home country. Regional Policy Research Taxation and Customs Union ABBREVIATIONS

AAPA: Association of Asia Pacific Airlines, with headquarters in Kuala Lumpur.

ATC: Air Traffic Control

CAA: Civil Aviation Authority.

CFMU: Central Flow Management Unit, of Eurocontrol.

CODA: Central Office for Delay Analysis.

DGCA: Directorate General of Civil Aviation.

ECAC: European Civil Aviation Conference, with headquarters in Paris.

EIA: Energy Information Administration of the US governments’s Department of Energy.

EU: European Union: (from 1958) Belgium, France, Germany (west), Italy, Luxembourg, Netherlands, (from

VI - 14 ASSOCIATION OF EUROPEAN AIRLINES cargolux

Association of European Airlines Avenue Louise 350 1050 Brussels, Belgium Tel. + 32 (0)2 639 89 89 Fax + 32 (0)2 639 89 99 E-mail: [email protected] Internet: www.aea.be