Arbeitsgemeinschaft Deutscher Verkehrsflughäfen

Low Cost Monitor 2/2007

– A Joint Analysis of DLR and ADV –

#

LCCLCC -StreckenRoutes 568 Aer Lingus # Routes Air Baltic # # # # # # Air (Euro Shuttle) # #

Air #

Blue Air #

# # Blue1 # # # # # # # # # # # # # # # # Clickair # # # # # # # ## # # -City fliegen # # # # # # # # # # # # # ## # # # # # Easyjet # # # # # # # # # # # Easyjet # ## # # # # # fly # # # # # # # # # # # # # # # # # # # # # # ## # # # # # # Iceland Express # # # # # # # # # # # # # Intersky # # # # # ## # # # # # Jet2 # # # # # # # # # # Norwegian # # # # # # # # # # # # # # # # Sterling # Transavia # TUIFly (Lowcost) Wizz

The Current Low Cost Carrier Market in

September 2007

The Current Low Cost Carrier Market in Germany (First Half Year of 2007)

Since several years the low cost carrier (LCC) market is an essential part of the German air transport market. The Low Cost Monitor, jointly issued by ADV and DLR, twice a year informs on LCC’s essential features and current developments in this market segment, particularly as to the number and relative importance of low cost carriers, their offers including the air fare, and the passenger demand. The offers reflected by the current Monitor are based on one reference week of the summer flight schedule 2007. The passenger traffic indicated relates to the half-year total of 2007.

Airlines

4 The airlines involved in the low cost business mostly design their offers quite differently. Due to this inhomogeneity, only a few clear distinctive criteria can be defined, for example low fares and direct sale via the Internet. Thus, in some cases a certain scope of discretion arises when allocating an airline to an LCC-segment. The authors of this Monitor currently classify 23 airlines operating on German as low cost carriers. These are in detail (see also table 1):

Aer Lingus (EI) (www.aerlingus.com), Fleet: 30 Airplanes (A320: 24/A321: 6) Air Baltic (BT) (www.airbaltic.com), Fleet: 20 Airplanes (B737: 12, F50: 8) (AB) (www.airberlin.com), Fleet: 86 Airplanes (F100: 3, A319: 6, A320: 20, B737: 57) Air Italy (I9) (www.airitaly.it), Fleet: 6 Airplanes (B737: 2, B757: 3, B767:1) Blue 1 (KF) (Blue1.com), Fleet: 12 Airplanes (Avro RJ: 9, MD90: 3) Blue Air (0B) (www.blueair-web.com), Fleet: 4 Airplanes (B737-300/500: 4) (SN) (www.brusselsairlines.de) Fleet: 45 Airplanes (A319: 3, Avro: 32, B737: 10) Clickair (XG) (www.clickair.com) Fleet: 19 Airplanes (A320: 19) Condor-City fliegen (DE) (www.Condor.de), Fleet: in total 35 Airplanes, (A320: 13) Easyjet (U2) (www..com), Fleet: 124 Airplanes (A319: 94, B737: 30) Easyjet Switzerland (BH) (www.easyjet.com), Fleet: 12 Airplanes (A319: 12) Flybe (BE) (www.flybe.com), Fleet: 82 Airplanes (ATR42: 1, BAE146: 12, D8: 36, E: 32, F100:1) Germanwings (4U) (www.germanwings.com), Fleet: 31 Airplanes (A319: 25, A320: 3, MD80: 3) Intersky (3L) (www.intersky.biz), Fleet: 3 Airplanes (D8: 3) Iceland Express (FHE)(www.icelandexpress.com), Fleet: 4 Airplanes (MD90: 4) Jet 2 (LS) (www.jet2.com), Fleet: 32 Airplanes (B737-300: 23, B757-200: 8, MD80: 1) Niki (HG) (www.flyniki.com), Fleet: 7 Airplanes (A319: 1, A320: 5, A321: 1) Norwegian (DY) (www.norwegian.no), Fleet: 48 Airplanes (B737: 44, MD80: 4) Ryanair (FR) (www.ryanair.com), Fleet: 137 Airplanes (B737: 137) Sterling (NB) (www.sterling.dk), Fleet: 26 Airplanes (B737-500/700/800: 26) Transavia (HV) (www.transavia.com), Fleet: 32 Airplanes (B737: 31, B757: 1) TUIfly (X3) (www.hlx.com), Fleet: 56 Airplanes (B737: 55, A320: 1) Wizz (W6) (www.wizzair.com), Fleet: 13 Airplanes (A320: 12, B737: 1)

(A: Airbus, B: Boeing, C: Canadair, D: Dash, E: Embraer, F: Fokker, MD: Boeing-McDonnell)

In general the number of low cost carriers in the German market has been increasing steadily compared to last year’s summer. New are the services of Clickair, Easyjet Switzerland (a Swiss subsidiary of Easyjet), Blue 1, Brussels Airlines (merged in Virgin Express) and Air Italy. However, the Polish airline Centralwings and the Scandinavian airline Fly Nordic stopped their services in the German market since beginning of this year. Also Blue Express and Sky do not operate currently in Germany. DBA has been taken over by Air Berlin last year. Meanwhile, their entire network of routes has been integrated in the low cost segment of Air Berlin. Actually, there is no longer a Euro Shuttle flight schedule, it was abandoned for economical reasons. However, all those flight routes are allocated to the low cost range, which do not have typical tourist destinations and where mainly single seat bookings take place.

Noteworthy is further the merge of the brands Hapag Lloyd Express and Hapag Lloyd Flug to become TUIfly in spring this year. This complicates the clear identification of the low cost range by means of the flight number. However, identification can be made by considering the different quality of service. Thus,low cost flights do not offer free meals onboard. Therefore, in the following only these flights of the total TUIfly segment are considered. On the European Virgin Express and SN Brussels have merged in Brussels Airlines, the existing routes to Germany remain.

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Some carriers have considerably increased their fleets. In particular Ryanair have extended their fleet by 30 airplanes to 137 in total since summer 2006. Easyjet have increased their fleet by 15 airplanes and by 12 additional airplanes from Easyjet Switzerland. Due to the integration of DBA, the number of Air Berlin airplanes has increased from 56 in summer 2006 to 86 in summer 2007. The merge of HLX and Hapag Lloyd Express in TUIfly does not allow any accurate statement on the number of airplanes operating in the Low cost market. Currently, the total number is 56 airplanes, prior to merging, HLX owned 18 airplanes.

The services of Corendon airline have not been considered, due to lacking data. However, they have been considered in the analysis of demand. The total analysis of offers is barely falsified by this omission, since their market share is extremely small (1 per mille).

4 Carrier Ranking (s. Table 1): Measured by the number of flights (departures) offered during one week in July 2007, after the DBA take-over, Air Berlin Euro Shuttlle for the first time is the major low cost carrier in Germany with 2000 flight movements. Compared to the preceding year, when both airlines together performed almost 1700 flight movements, this means an increase by about 18%.

4 In the ranking, they are followed by Germanwings (920 flights), TUIfly (644 flights), Ryanair (518 flights), and Easyjet (379 flights). A particularly strong increase of almost 28% can be seen for Ryanair. This is due to some new additional routes from Hahn and the deployment of new airplanes and thus the expansion of service at the airports of and Niederrhein. Also Germanwings and TUIfly show growth rates of roundly 20%. Unlike, the Easyjet flight service stagnated on the level of the preceding year (379 departures). Besides a few small foreign low cost airlines the British airline flybe, which mainly operate on the British mainland, have been newly added to the Monitor. Whereas this company still ranked as number 11 (only 26 flights to Germany) in the LCC-Monitor 1/2007, the summer flight schedule already lists 141 flights per week. Thus, this airline, measured by the number of low cost flights, ranks as number 6, still ahead of Intersky, who increased their service by roundly 10%.

4 LCC Market Shares (s. Figure 1): The seven largest of the 23 low cost carriers make up for about 94% of the German market. Now, almost 40% of all flights can be allocated to the Air Berlin Euro Shuttle, whereas prior to the alliance, 18% were allocated to Air Berlin and 23% to DBA. In the market share ranking follows Germanwings (18%), TUIfly (13%) and Ryanair (10%). Apart from Easyjet (their market share is decreasing), all other airlines were able to keep their market shares.

Transport Services

4 Flight Routes (s. Table 1 and 2 as well as Figure 2): In total, the low cost airlines considered operate on 568 different domestic and cross-border routes. These are 142 additional routes compared to summer 2006, i.e. an increase of more than 33%. The current summer flight schedule has been compared with the corresponding summer flight schedule of the preceding year, since there are many favoured warm water destinations that are served only in summer. An extensive network expansion has been performed by Ryanair in serving additional 30 routes. This means a growth of more than 60% compared to the preceding year. Mainly involved are the airports of Hahn, Bremen and Niederrhein, since primarily these airports were subject to network extensions. If the airlines DBA and Air Berlin Euro Shuttle were still considered separately, their growth would amount to 23%. In total, Air Berlin Euro Shuttle and TUIfly as well as Germanwings have added 30 routes. It should be noted in this context that for domestic flights one route is considered twice, outward MUC-DUS and return DUS-MUC. In contrast, Easyjet slightly reduced their flight route offer by 4% after having intensively expanded their network during the last years. Whereas Ryanair is building up their cross-border service and therefore in 2007 has installed two new bases, namely in Niederrhein and Bremen, Germanwings increasingly offer domestic flight services at Zweibruecken and TUIfly at . In Europe, mainly destinations to central or East European countries have been added to the networks, but also is increasingly frequented. In addition, there is an intensified service to and during the months of summer. However, there is a slight decrease of destinations in the North European countries, and .

4 Competition: The direct competition between low cost carriers is still relatively marginal, only on 25 routes of 568 routes in total compete two airlines, and three airlines compete on only one route.

4 Flights (s. Table 1): In total, around 5000 flights have been performed by low cost carriers in one week in July 2007, in July 2006, their performance was almost 1000 flights less. Thus, the number

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of flights has increased less (by 23%) than the number of routes (by 33%). Consequently, the expansion of service is mainly due to the network extension.

4 Seats (s. Table 1): On 5031 flights 146 seats per flight were available on average, a somewhat higher value than in the preceding year, however, this is a stagnation compared to the value of the spring season. Thus, these flight-specific seat capacities continuously range distinctly higher than those of traditional European scheduled airlines.

4 Countries of Destination (s. Table 2): The country of destination ranking reveals the big market share of domestic traffic: Around 39% of all low cost carrier departures from German airports are performed in this market (on 110 routes, corresponding to 55 airport pairs). Compared to the summer flight schedule 2006 the number of German domestic flight routes has increased by 46%. In the months of summer Spain and Great Britain with a flight performance of 610 respectively 591 flights ranged on second and third place, unlike last year, when Italy still ranged ahead of Great Britain. Number 5 and 6 are Austria and Switzerland, whereby a reduced service to destinations in implied France to range only as number 7. Due to the intensified Ryanair service, Ireland is number 8, ahead of and Greece. The reduced service to Sweden implied this country of destination to down to place 11. Presently, low cost carriers serve destinations in 35 countries from Germany. Newcomers are Lithuania, Iceland, Bulgaria, Egypt and Macedonia. Flight service to Slovenia was dropped.

4 Airports (s. Figure 3): The most frequented German airport, Frankfurt, plays only a minor role in the low cost carrier traffic segment. This is due to the airport’s distinct hub function in traditional scheduled airline traffic and the already high utilisation of the airport capacity. However, the service has been extended by 120 weekly LCC-flights in summer 2007. This means a doubling compared to summer 2006, which is particularly due to the Air Berlin Euro Shuttle flights and the flights performed by the British airline flybe. / has with 662 weekly departures (which correspond to more than 61% of the local flight traffic) by far the highest number of LCC-flights in Germany. However, the growth amounts to only 5% compared to the same time frame in the preceding year. On the other hand, the low cost carrier traffic grew above average (by 46%) at Duesseldorf Airport and reached 450 departures per week in July. This corresponds to about 22% of the total local flight traffic. An extreme strong growth shows the low cost carrier segment at Bremen Airport. Here, the LCC-traffic share grew from 7% in 2006 to more than 24%, in absolute terms from 18 to 76 departures per week in 2007. This is due to the installation of a Ryanair base in Bremen. Some regional airports like Luebeck or Niederrhein are almost exclusively used by low cost carriers. Thus, a strong dependence on just one airline is developing. This is also true for the of Hahn (3.5 million passengers). Here, Ryanair covers about 95% of the flight service beside some Wizz- and Iceland-Express-flights.

Air Fares

4 Average Fares (s. Table 3): In the German market, average fares offered by the 5 major low cost carries vary between approx. 21 € for a one way flight on Ryanair routes and approx. 71 € on Air Berlin routes in summer 2007. These prices are valid without any fees and taxes and reflect the average on all routes and for the entire booking period of one to 90 days. The analyses show a continuously high variance of the individual average prices. Obviously, the pricing competition among low cost carriers is increasing. Thus, in summer 2007 compared to summer 2006, net prices dropped significantly. However, other airlines, apart from Easyjet and Ryanair, now charge an additional kerosene fee, which often is higher than the actual air fare. Thus, lower net prices can be offered by charging higher fees. Thereby, it is remarkable, that in particular Ryanair, who do not charge any additional kerosene fee, most significantly cut their net prices. Due to the take-over of DBA and their low price offers, in summer 2007 the entire average prices of Air Berlin Euro Shuttle were far below those in 2006. It can be seen, that the average air fares offered by several airlines amount to around 50 € for a one way flight. The air fares of Air Berlin Euro Shuttle range above this value, however, during their flights a minimal onboard-service, like free magazines or free drinks, is made available. Ryanair’s fares range below this price, however, certain services, which are inclusively provided by other airlines, like transportation of luggage (apart from hand luggage) are charged additionally.

4 Average Prices in Relation to Booking Period (s. Figure 4): The average fares on all low cost carrier flight routes are subject to variation by a factor of four dependent on the booking period: A trip, starting the next day, often costs fourfold of a trip to be started in 3 months. LCC-fares for flights during holiday seasons or on public holidays are generally more expensive. Whereas in the past this was mainly true for tourist destinations, now, in a period of growing city tourism, this

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strategy is also increasingly applied for city-destinations, for example . Generally it turns out, that LCC-fares are lower during the months of summer than during winter.

Passenger Demand

4 In the first half-year of 2007, 22,846,893 boarding and de-boarding passengers in total have been counted in the segment of low cost carrier traffic on the 19 international ADV-airports as well as 8 other regional airports of Germany. Compared to the same time frame of the preceding year, this corresponds to a growth of +16.4% (see Table 4). Thus, as expected, the growth is slowing down, due to the currently high market saturation (s. Figure 5).

4 With regard to the international airports, the LCC-portion of the total local passenger traffic (boarding and de-boarding passengers) currently comprises 25.6% (see Figure 6).

4 On domestic flights, in total 8,239,153 LCC-passengers were counted (+18.6%) (see Table 5). The LCC-trafficshare amounts to 48% now, related to the original domestic flight demand (disregarding transfer passengers).

4 With regard to cross-border traffic (+15.1%), the LCC-traffic share of the original demand (disregarding transfer passengers) amounts to 37% (see Table 6). Leading countries of destination/origin are Spain (3.5 mill.), Great Britain (2.4 mill.), Italy (2.3 mill.) and Austria (1.1 mill.)

The current Low Cost Carrier Market in Europe (First Half Year of 2007)

Beside a detailed analysis of the German low cost carrier market, the main characteristics of the European LCC-market are described in the following. In addition to the airlines operating in the German market, there are others, who can be allocated to the low cost carrier market. However, there is an increasing number of airlines, operating as traditional scheduled or as charter airlines as well as in the proper low cost segment, for example Air Berlin in Germany. This complicates the clear distinction of traditional network carriers, tourist airlines and low cost carriers. Therefore, this analysis cannot be considered as complete, but only approximated. The present analysis informs on the dimension and structure of the European low cost market. In addition to the airlines operating in the German market, the following companies are active in the European market:

Air Slovakia (GM) (www.airslovakia.sk), Fleet: 4 Airplanes (A320: 1, B737: 2, B757: 1) Blu Express(BV) (www.blu-express.com), Fleet: 1 Flugzeug (B737: 1) Bmibaby (WW) (www.bmibaby.com), Fleet: 21 Airplanes (B737: 21) Centralwings (C0) (www.centralwings.com), Fleet: 8 Airplanes (B737: 8) Flybaboo (F7) (www.flybaboo.com), Fleet: 3 Airplanes (D8: 3) Fly Nordic: (LF) (www..com), Fleet: 6 Airplanes, (MD80: 6) Jet4you (8J) (www.jet4you.com), Fleet: 2 Airplanes (B737: 2) Meridiana (IG) (www.meridiana.com), Fleet: 21 Airplanes (A319: 4, MD82/83: 17) Myair.com (8I) (www.myair.com), Fleet: 9 Airplanes (A320: 5, CRJ900: 4) Sky Express (XW) (www.skyexpress.ru), Fleet: 9 Airplanes (LET410: 4, Saab340: 5) Sky Europe (NE) (www.skyeurope.com), Fleet: 11 Airplanes (B737: 11) Sky Europe Hungary: (5P) (www.skyeurope.com), Fleet: 3 Airplanes: (B737: 3) Transavia.com France (TO) (www.transavia.com), Fleet: 4 Airplanes (B737: 4) Volare (VA) (www.volareweb.com), Fleet: 4 Airplanes (A320: 4) Vueling (VY) (www.vueling.com), Fleet: 21 Airplanes (A320: 21) Windjet (IV) (www.volawindjet.it), Fleet: 11 Airplanes (A319: 2, A320: 9)

The major European low cost airline is Ryanair with 6300 departures in Europe in July 2007. These are around 1000 flights more than in January 2007. The flights have been performed on 876 routes (see Table 7). Number two is Easyjet with 5459 departures on 487 routes. Far behind are Air Berlin Euro Shuttle and flybe with around 3000 departures per week. Then there is a big gap again. Germanwings, Air Lingus, Meridiana, Vueling and the low cost segment of TUIfly follow, reaching a performance of 1000 to 1500 departures per week.

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Great Britain is the number one country of destination of low cost flights (see Table 8). 824 flight routes from all over Europe lead to this destination country, including domestic traffic. In the time frame considered, 9300 flights have been performed per week. Germany ranges as number two with 568 routes and 5000 flights. Spain and Italy range on places 3 and 4 with more than 4000 flights each. This reveals, that in the holiday country Spain the number of flights offered in a summer week is almost twice as high as was in a typical week of January. France follows on place 5 with more than 2000 flights and on place 6 Ireland, the mother country of the European low cost carriers. 4000 of 4290 routes are almost exclusively served by one low cost carrier. Solely on 277 routes operate two and on only 20 routes three low cost carriers compete.

The major European low cost carrier airport is -Stansted with more than 1700 departures per week in July 2007 (see Figure 7). Then Airport follows with around 1200 departures. With a performance of almost 1000 flights per week Barcelona ranges on place 3, and with 755 departures Palma de Mallorca on place 5, two warm-water destinations on the . Number 4 is London-Gatwick with 800 departures per week, the third London airport, Luton, follows on place 7. In total, the London airports offer more than 3200 low cost flights, more than any other agglomeration in Europe. Cologne (662 flights) ranges like London-Luton on place 7 and thus is, after Barcelona, the second largest European low cost carrier airport on the continent. Among the top 30 European low cost carrier airports there are more German airports like (No. 12), Stuttgart (No. 17), Duesseldorf (No. 18), Berlin-Schoenefeld (No. 19) and (No. 23) range, which handle each more than 400 LCC-departures per week.

With regard to European traffic, the low cost carrier market currently comprises a share of 24% of the total number of flights (see Figure 8). 76% of the flights are thus performed by traditional scheduled airlines and holiday airlines. Another part of the market is served by smaller regional airlines, which often co-operate with a major airline.

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Low Cost Carrier Market in Germany

07/2007 07/2006 Change (%)

Rank Airline Flights Seats Routes Flights Seats Routes Flights Seats Routes

1 Air Berlin Euro Shuttle 1.996 287.138 135 725 117.727 61 175,3 143,9 121,3 2 Germanwings 920 135.270 134 789 108.138 104 16,6 25,1 28,8 3 TUIfly (Low costSegment) 644 98.008 120 528 74.428 89 22,0 31,7 34,8 4 Ryanair 518 97.902 78 406 76.734 48 27,6 27,6 62,5 5 Easyjet 379 58.956 44 377 58.476 46 0,5 0,8 -4,3 6 Flybe 141 7.672 11 0 0 0 100,0 100,0 100,0 7 Intersky 124 6.200 17 111 5.550 17 8 Wizz 52 9.360 11 46 8.280 10 9 Air Baltic 49 4.908 9 0 0 0 10 Aer Lingus 48 8.352 6 0 0 0 11 Norwegian 28 4.144 6 29 4.292 6 12 Clickair 28 5.040 4 0 0 0 13 Condor-City fliegen 21 3.836 5 44 7.656 8 14 Easyjet Switzerland 19 2.964 2 0 0 0 15 Jet 2 12 1.776 2 6 888 1 16 fly niki 11 1.900 1 0 0 0 17 Iceland Express 8 1.200 3 0 0 0 18 Transavia 7 1.043 1 11 1.639 1 19 Blue 1 6 741 2 0 0 0 20 Sterling 6 756 1 12 1.600 2 21 Brussels Airlines 6 498 1 0 0 0 22 Blue Air 4 544 1 3 408 1 23 Air Italy 4 592 1 0 0 0 24 Blu Express 0 0 0 4 668 1 25 Centralwings 0 0 0 6 887 1 26 DBA 0 0 0 957 115.932 49 27 Fly nordic 0 0 0 7 1.134 2 28 Sky Europe 0 0 0 7 931 2 29 Virgin Express 0 0 0 6 834 1 Summe 5.031 738.800 595* 4.074 586.202 450 23,5 26,0 32,2

Table 1: Low Cost Carrier Ranking According to Flights Performed (data are valid for one week in July; for German domestic flights both directions of one route are considered, within Europe only one direction) *Routes served by several carriers are subject to multiple counting

6,1% 2,5% 2,8% Air Berlin Euro Shuttle

Germanwings 7,5% HLX 39,7% Ryanair

10,3% Easyjet flybe

Intersky

Sonstige 12,8%

18,3%

Figure 1: Low Cost Carriers’ Market Shares in Germany (according to the number of flights performed in one week of July 2007) 7

Low Cost Carrier Market in Germany 07/2007 07/2006 Change (%) Country of Rank Destination Flights Seats Routes Flights Seats Routes Flights Seats Routes 1 Germany 2,003 266,684 1101,504 186,900 76 33.2 42.744.7 2 Spain 610 107,024 64524 89,992 46 16.4 18.938.1 3 Great Britain 591 80,179 56 437 69,328 45 35.2 15.7 24.4 4 Italy 486 79,936 97473 73,322 79 2.7 9.022.8 5 Austria 257 37274 28178 24593 18 44.4 51.655.6 6 Switzerland 132 20,534 10130 18,371 8 1.5 11.825.0 7 France 126 17,732 18173 23,391 22 -27.2 -24.2-18.2 8 Ireland 95 17,055 1452 9,522 9 82.7 79.155.6 9 Poland 78 13,332 1692 14,843 18 -15.2 -10.2-11.1 10 Greece 66 10,368 2038 5,234 8 73.7 98.1150.0 11 Sweden 63 10,845 1069 11,220 12 -8.7 -3.3-16.7 12 60 8,466 2045 6,170 15 33.3 37.233.3 13 Russia 52 7,488 1113 1,620 5 300.0 362.2120.0 14 Latvia 51 6,608 812 2,103 2 325.0 214.2300.0 15 Hungary 49 7,555 1051 7,648 10 -3.9 -1.20.0 16 49 7,328 1440 5,280 11 22.5 38.827.3 17 Portugal 46 7,359 1131 4,879 7 48.4 50.857.1 18 39 6,223 844 6,671 8 -11.4 -6.70.0 19 Finland 35 5,908 624 3,795 4 45.8 55.750.0 20 Denmark 31 4,758 339 5,552 6 -20.5 -14.3-50.0 21 Lithuania 19 2,038 50 0 0 100.0 100.0100.0 22 Czechia 14 2,100 230 4,012 5 -53.3 -47.7-60.0 23 11 1,584 50 0 0 100.0 100.0100.0 24 Romania 10 1,546 23 408 1 233.3 278.9100.0 25 9 1,638 32 360 1 350.0 355.0200.0 26 Iceland 8 1,200 30 0 0 100.0 100.0100.0 27 Bulgaria 7 1,038 50 0 0 100.0 100.0100.0 28 7 1,092 17 1,092 1 0.0 0.00.0 29 Netherlands 7 1,043 135 5,500 2 -80.0 -81.0-50.0 30 Slovakia 7 1,323 114 2,254 3 -50.0 -41.3-66.7 31 6 498 112 1,878 2 -50.0 -73.5-50.0 32 Malta 4 576 20 0 0 100.0 100.0100.0 33 Albania 1 144 11 132 1 0.0 9.10.0 34 Egypt 1 180 10 0 0 100.0 100.0100.0 35 Macedonia 1 144 10 0 0 100.0 100.0100.0 36 Serbia/Monten. 0 0 0 1 132 1 -100.0 -100.0-100.0

Total 5,031 738,800 568 4,074 586,202 426 23.5 26.1 33.6

Table 2: Country of Destination Ranking according to Number of Flights (data are valid for one week in July, within Germany both directions of one route are considered)

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07/2007 07/2006 # #

# #

# # # # # # # # # # # # 568 # # # # 426 # #

# #

# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # # # # # ## # # # # # # # # # # # # # # # # # # # # # # # # ## # # # # # # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # ## # ## # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #

07/2005 07/2004

# # LCC Strecken Aer Lingus

# Air Baltic # Air Berlin (Euro Shuttle) # # # # # # # # Air Italy # # # # # Blu Express # # 325 # Blue Air 227 # Blue1 # # Brussels Airlines # # # # # # # # # # # # # # Centralwings # # # # # # # # # # # # # # Clickair # # # # # # # # # # # # # Condor-City fliegen # # # # # # # # # # ## # # DBA ## # # # # # # # # # # # # # # # # # # # # # # # # # Easyjet # # # ## # ## # # # # # # # # # # # # # # # # # # # # Easyjet Switzerland # # # # # # # # # # # # # ## fly niki ## # # # # # # # # # # # # # fly nordic # # # # # # # # # # # # # # # # # # # flybe # # # # # # # # # # Germanwings # # # # # # # # # ## # # # ## # # # Gexx # # # # # # # # # # # # # # # # # # Iceland Express # # # # # # # # # # # # # # # # # # # Intersky # # # # # # # ## # ## # # # # # # Jet2 # # # # # # # # # # # # # # # # # # # Norwegian # # # # # # # # # Ryanair # # # # # # # # # # # # # # # # # Sky Europe # # # # # # # # Sterling # # # # # Transavia # # TUIFly (Lowcost) Virgin Express Wizz

Figure 2: Development of the LCC Flight Route Network of German Airports

5.000 AOC - Altenburg/Nobitz HGL - Helgoland Flights per Week BMK - Borkum HHN - Hahn LCC-Flights per Week 4.500 BRE - Bremen HOQ - Hof BRV - Bremerhaven IGS - Ingolstadt BWE - Braunschweig KEL - Kiel 4.000 CGN - Köln/Bonn LBC - Lübeck DRS - Dresden LEJ - Leipzig 3.500 DTM - Dortmund MGL - Mönchengladbach DUS - Düsseldorf MHG - Mannheim EME - Emden MUC - München 3.000 ERF - Erfurt NDZ - Nordholz FCN - Cuxhaven NRN - Niederrhein 2.500 FDH - NUE - Nürnberg FKB - Karlsruhe/Baden-Baden PAD - Paderborn FMM - Memmingen RLG - Rostock/Laage 2.000 FMO - Münster/Osnabrück SCN - Saarbrücken Number ofTake-offs FRA - Frankfurt/Main STR - Stuttgart 1.500 GWT - Sylt SXF - Berlin-Schönefeld HAJ - Hannover THF - Berlin Tempelhof 61,5% HAM - Hamburg TXL - Berlin - Tegel 1.000 HDF - Heringsdorf WVN - Wilhelmshaven HEI - Heide ZQW - Zweibrücken 100% 500 new LCC-Airports 2,6% 0

L S V K B J A C G N A M O HEI IG R ME GL BC K TM LEJ H TR TXL A MG HDF A BWE HOQ B RLG ZQW FMM FCN BM E MH H ERF L GWT NRN SCN F THF FDH PAD FMO D DRS H BRE NUE SXF H CGN S H DUS MUC FR Airport

Figure 3: Passenger Flights per Week at German Airports

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Average Average Number of Airline: Price offered (€) Price offered (€) Routes analysed Summer 2007 Summer 2006 Air Berlin (Euro Shuttle) 126 70.67 € 90.35 € EasyJet 46 50.74 € 57.41 € Germanwings 127 52.71 € 46.59 € HLX 91 47.67 € 56.54 € Ryanair 91 24.11 € 41.75 €

(All prices without taxes, fees and kerosene surcharge)

Table 3: Average Air Fares of the top Low Cost Carriers in Germany in Summer 2007

Air Fares (€)

180 1 day 160

1 week 140

120 1 month

100 3 months

80

60

40

20

0 AirBerlin EasyJet Germanwings TUIfly (Low Cost) Ryanair

Day of booking: 02.07.2007

Figure 4: Average Air Fares of the top Low Cost Carriers in Germany in Relation of Advanced Booking; (day of booking: July 2nd, 2007)

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Low Cost Carrier Market in Germany

Passengers 1st Half Year 2007 LCC Airport Change % Share of Total LCC Total Berlin (all) 9,278,745 4,826,689 + 13.0 52.0% Cologne/Bonn 4,845,377 3,413,084 + 8.6 70.4% Munich 16,005,261 2,520,551 + 18.8 15.7% Stuttgart 4,764,857 1,943,676 + 12.0 40.8% Duesseldorf 8,160,108 1,895,060 + 30.6 23.2% Hahn 1,887,586 1,876,032 + 17.1 99.4% Hamburg 5,889,091 1,727,641 + 14.5 29.3% Hanover 2,538,211 809,763 + 5.2 31.9% Frankfurt 25,555,913 676,170 + 75.0 2.6% Dortmund 921,488 612,690 + 39.0 66.5% Nuernberg 2,014,532 555,263 + 2.0 27.6% Leipzig/Halle 1,070,619 332,396 + 63.4 31.0% Dresden 802,829 254,274 + 0.1 31.7% Bremen 940,797 231,272 > 100.0 24.6% Muenster/Osn. 678,607 204,117 + 14.9 30.1% Erfurt 131,499 Saarbruecken 117,553 Total 85,603,073 21,878,678 + 17.2 25.6%

Niederrhein 266,924 - 1.1 Luebeck 249,850 - 16.4 Karlsruhe/Bad.-Bad. 162,885 - 24.5 Friedrichshafen 92,755 + 25.6 Paderborn 73,262 + 1.8 Altenburg Nobitz 55,510 + 40.1 Memmingen *) 2,539 > 100.0 Zweibruecken 64,490 > 100.0 Total 968,215 - 0.2

IVF + RVV 22,846,893 + 16.4

Table 4: Low Cost Passengers According to Airports and Share of Total Number of Passengers *) since June 26th, 2007

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Growth Rates % Zuwachsrate %

360 350

300

250

200

150

100 83 45 ) ) 50 * * 32 24 16 0 2002 2003 2004 2005 2006 2007

1st Half1. Halbjahr Year 2007 Figure 5: Growth Rates of LCC Traffic in Germany *) after correction of statistical effects

Low Cost Carrier Market in Germany

LCC Passengers of LCC-Share of Airport Domestic Flights Change % Domestic OriginalTraffic First Half-Year 2007 (Approximate Values) Berlin (all) 1,972,940 + 17.6 61% Munich 1,668,894 + 26.7 48% Cologne / Bonn 1,158,852 + 3.1 69% Hamburg 814,001 + 19.9 39% Stuttgart 810,068 + 11.3 62% Duesseldorf 738,562 + 48.7 46% Dresden 225,366 - 2.4 58% Nuernberg 224,283 + 27.3 60% Leipzig / Halle 200,205 + 96.1 66% Hanover 141,020 - 1.8 42% Muenster / 76,111 + 33.4 44% Osnabrueck Bremen 53,907 + 61.9 20% Frankfurt 50,260 - 31.7 3% Total 8,134,469 + 17.8 48%

Karlsruhe/Bad.-Bad. 38,266 Memmingen *) 1,928 Zweibruecken 64,490 IVF + RVV 8,239,153 + 18.6

Table 5: LCC Passengers on Domestic Flights According to Airports and Original Traffic Share *) since June 26th, 2007

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80

70,9 67,3 70 64,7 61,6 Scheduled Airlines 59,8 60 59,6 (60.1)

50 Portion (%)

40 (22.8) (17.1) Charter 30 (2006) 24,3 23,2 23,4 20,8 19,9 25,6 20

18,9 16,8 14,8 9,5 14,5 10 4,8 Low Cost Carriers 0 2002 2003 2004 2005 2006 Jan.-Juni 2007 Figure 6: LCC-Traffic Share of Total Traffic (international airports)

Low Cost Carrier Market in Germany

LCC-Portion of original LCC Passengers Country of Destination/Origin Change % Traffic 1st Half-Year 2007 (approximated values) Spain 3,48,020 + 19.9 37% Great Britain 2,447,676 + 8.2 51% Italy 2,288,963 - 0.7 58% Austria 1,138,126 + 23.4 58% Switzerland 796,069 + 16.1 46% France 741,899 + 14.9 31% Ireland 477,402 + 18.6 71% Poland 471,811 + 44.8 58% Sweden 349,539 - 11.2 44% Greece 251,208 + 87.1 14% Hungary 238,983 - 15.8 49% Norway 232,709 + 34.5 46% Russ. Federation 228,565 > 100.0 26% Portugal 218,982 + 33.2 23% Turkey 213,203 + 34.0 5% Croatia 167,964 + 14.3 50% Finland 165,244 + 34.3 30% Denmark 153,196 + 22.0 30% Latvia 124,895 + 28.6 61% Czech Rep. 79,526 - 12.2 27% Georgia 68,685 > 100 Serbia Montenegro 51,830 > 100 10% Netherlands 46,996 - 70.6 10% Slovak Rep. 46,561 - 28.3 58% Lithuania 28,750 > 100 25% Morocco 25,712 > 100 13% Romania 23,039 > 100 8% Bulgaria 16,002 > 100 4% Malta 11,360 > 100 8% Iceland 10,608 + 18.2 15% Belgium 2,931 - 76.3 1% Albania 291 + 80.7 2%

Total 14,607,740 + 15.1 37%

Table 6: LCC Passengers on Cross-Border Flights, According to Countries of Destination/Origin and Portion of Original Traffic

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Low Cost Carrier Market in Europe Low Cost Carrier Market in Europe 07 / 2007 07/2007 Rank Airline Flights Seats Routes Rank Country Flights Seats Routes 1 Ryanair 6,348 1,199,772 876 1 GB 9,300 1,308,622 824 2 Easyjet 5,459 842,182 487 2 DE 5,031 73,800 568 3 Air Berlin Euro Shuttle 3,151 478,476 273 3 ES 4,514 774,207 530 4 Flybe 3,102 237,642 268 4 IT 4,177 661,997 551 5 Germanwings 1,428 210,276 246 5 FR 2,032 307,210 284 6 Aer Lingus 1,244 231,070 132 6 IE 1,671 305,712 183 7 Meridiana 1,116 152,692 90 7 NO 868 131,054 119 8 Vueling 1,066 191,880 106 8 NL 729 114,349 84 9 TUIfly (Low Cost) 1,025 155,800 217 9 CH 692 98,793 83 10 Norwegian 982 145,336 180 10 PL 664 110,865 158 11 bmybaby 938 134,166 106 11 SE 601 94,232 97 12 Jet 2 866 146,582 148 12 BE 502 74,104 47 13 Sterling 790 116,306 144 13 DK 469 66,410 57 14 Clickair 757 136,260 88 14 AT 461 71,244 89 15 Air Baltic 747 67,856 123 15 PT 441 73,886 68 16 Easyjet Switzerland 658 102,648 74 16 LV 348 38,138 54 17 Wizz 626 112,680 162 17 RU 273 33,552 37 18 Brussels Airlines 513 65,050 32 18 GR 242 38,684 88 19 Sky Europe 502 74,798 146 19 CZ 234 34,476 41 20 Transavia 471 72,325 83 20 FI 234 27,594 34 21 Windjet 360 64,800 52 21 HU 218 34,873 53 22 Myair,com 357 41,646 86 22 RO 155 22,151 38 23 Blue1 276 29,848 46 23 HR 150 22,674 51 24 fly Niki 240 41,096 80 24 LT 146 15,579 22 25 Centralwings 226 32,770 72 25 SK 138 22,330 27 26 Sky Express 168 20,160 12 26 TR 76 11,189 23 27 Intersky 161 8,050 28 27 BG 64 8,996 25 28 flybaboo 138 7,236 24 28 IS 51 7,748 15 29 Blue Air 136 18,496 38 29 EE 49 4,434 7 30 Volareweb 128 23,140 14 30 MT 22 3,838 8 31 Fly Nordic 127 20,526 28 31 UA 16 1,360 3 32 Sky Europe Hungary 112 16,688 38 32 RS 14 2,032 7 33 Iceland Express 102 15,496 30 33 SI 13 2,199 3 34 Transavia,France 82 15,252 14 34 BY 10 460 2 35 Air Italy 75 11,283 21 35 CY 5 856 4 36 Blu Express 58 9,772 18 36 AL 4 402 2 37 Condor-City fliegen 42 7,672 10 37 GE 4 480 1 38 jet4you 33 5,709 7 38 MD 4 600 1 39 Air Slovakia 15 3,093 8 39 AZ 2 256 1 40 MK 1 144 1 Total 34,625 5,266,530 4,607 Summe 34,625 5,266,530 4,290

Table 7: Low cost carrier Ranking in Table 8: European Country Ranking according Europe, according to Flights to number of flights in July (data are performed in July 2007 (data are only valid for one week in July; only valid for one week in July; considering both route directions) considering both route directions)

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6.000 AGP - Malaga DUB - Dublin MAD - Madrid Flights per week AMS - DUS - Düsseldorf MAN - Manchester LCC-Flights per week BCN - Barcelona EDI - Edinbugh MUC - München BFS - Belfast FCO - Rom-Fiumincino NCE - Nizza 5.000 BGY - Mailand Orio GLA - Glasgow OSL - BHX - Birmingham GVA - Genf PMI - Palma Mallorca CDG - Charles de Gaulles HAM - Hamburg SOU - Southampton CGN - Köln/Bonn LGW - London-Gatwick STN - London Stansted 4.000 CIA - Rom Ciampino LPL - Liverpool STR - Stuttgart CPH - Kopenhagen LTN - London-Luton SXF - Berlin-Schönefeld

3.000

2.000 Number of Take-offs per week per Take-offs of Number

1.000

0 EDI CIA PMI LPL LTN BFS SXF OSL GLA STR STN BHX BGY DUS AGP BCN DUB CPH NCE GVA FCO AMS SOU MAN MAD HAM CDG CGN MUC LGW

Figure 7: The major LCC-Airports in Europe (according to flights performed per week in July)

LCC-Departures 24%

Other Airlines 76%

Figure 8: LCC-Portion of European Air Transport (according to number of departures in July 2007)

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Contact:

Dr. Peter Berster Deutsches Zentrum für Luft- und Raumfahrt (DLR) Flughafenwesen und Luftverkehr (FW) Linder Höhe D-51147 Köln Tel,: (49) 02203-601-4554 Fax: (49) 02203-601-14554 E-Mail: peter.berster@dlr,de

Manfred Kuhne Arbeitsgemeinschaft Deutscher Verkehrsflughäfen Gertraudenstr, 20 10178 Berlin Tel,: (49) 030-3101-18-51 Fax: (49) 030-310-118-90 E-Mail: [email protected]

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