Low Cost Monitor 2/2008

- A Joint Analysis of DLR and ADV -

617 Routes

The current Low Cost Carrier Market in Germany

Autumn 2008 The current Low Cost Carrier Market in Germany (2008)

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 2008. The passenger traffic indicated relates to the half year total of 2008.

Airlines

4 The involved in the Low Cost business, design their flight services 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 to the LCC-segment. Furthermore, for several airlines amalgamations of business models are seen, which additionally complicate the accurate allocation of airlines to the Low Cost Market. The authors of this Monitor currently classify 23 airlines operating on German airports as low cost carriers. These are in detail (see also Table 1):

Aer Lingus (EI) (www.aerlingus.com), Fleet: 33 Aircraft (A320: 27/A321: 6) Air Baltic (BT) (www.airbaltic.com), Fleet: 25 Aircraft (B737: 16, F50: 8, ATR42: 1) Air Berlin (AB) (www.airberlin.com), Fleet: 109 Aircraft (F100: 8, A319/20/21: 43, B737: 58) Blue Air (0B) (www.blueair-web.com) Fleet: 7 Aircraft (B737: 7) Centralwings (C0) (www.centralwings.com), Fleet: 10 Aircraft (B737: 10) Clickair (XG) (www.clickair.com) Fleet: 25 Aircraft (A320: 25) Corendon (CAI) (www.corendom-airlines.com) Fleet: 4 Aircraft (B737-300: 2, B737-400: 2) Easyjet (U2) (www.easyjet.com), Fleet: 145 Aircraft (A319: 106 A320: 9, B737: 30) Easyjet (BH) (www.easyjet.com), Fleet: 12 Aircraft (A319: 12) Flybe (BE) (www.flybe.com), Fleet: 74 Aircraft (ATR72:2, BAE146: 1, D8: 41, E: 30) Fly Nordic (LF) (www..com), Fleet: 7 Aircraft, (MD80: 7) Germanwings (4U) (www.germanwings.com), Fleet: 29 Aircraft (A319: 29) Intersky (3L) (www.intersky.biz), Fleet:4 Aircraft (D8: 4) Iceland Express (FHE)(www.icelandexpress.com), Fleet: 3 Aircraft (MD90: 3) Jet 2 (LS) (www.jet2.com), Fleet: 30 Aircraft (B737-300: 21, B757-200: 9) Meridiana (IG) (www.meridiana.com), Fleet: 22 Aircraft (A319: 4, MD82/83: 20) Niki (HG) (www.flyniki.com), Fleet: 6 Aircraft (A319: 2, A320: 6 A321: 1) Norwegian (DY) (www.norwegian.no), Fleet: 32 Aircraft (B737: 32) (FR) (www.ryanair.com), Fleet: 166 Aircraft (B737: 166) Sterling (NB) (www.sterling.dk), Fleet: 27 Aircraft (B737-500/700/800: 26, MD83: 1) Transavia (HV) (www.transavia.com), Fleet: 34 Aircraft (B737: 34) TUIfly (X3) (www.tuifly.com), Fleet: 46 Aircraft (B737: 46) Wizz (W6) (www.wizzair.com), Fleet: 16 Aircraft (A320: 16)

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

In total, the number of Low Cost Carriers operating in the German market is stagnating compared to last year. Blue Air and Brussel Airlines as well as Blue 1 and Air , which still were serving Germany in the beginning of the year, stopped serving the German market in summer 2008. Furthermore, the product “City Flying”, offered by Condor from Munich does not exist any more. However, this airline is offering various other “Flying”-products such as long and short haul flights etc., which complicate the allocation to the Low Cost sector, since only selected flights can be booked directly and with low fares. However, this contradicts the actual Low Cost Carrier concept of booking the majority of flights online and of pricing according to the booking period, respectively the day of travel. Hence, Condor Flights are not considered anymore, neither flights operated by LTU, who are also offering only special prices for selected flights. In a broad sense, also Lufthansa flights of the „Better-Fly“-segment have to be considered, but also here no distinct allocation can be made. The airlines Air Berlin and TUIfly, who are running several business models, can be allocated to a gray zone. For Air Berlin, a former charter airline, who is an early actor in the Low Carrier Market by launching the segment „Cityshuttle“, the identification of Low Cost routes has become much more complicated due to the mergers with DBA, Gexx and LTU as well as the cooperation with Walter airline (LGW). Thus, only the present Low Cost routes served by these airlines, as well as corresponding routes are considered. More expensive feeder flights performed by small scale

2 airplanes operated by LGW under Air Berlin flight numbers, as well as flights to typical holiday destinations like North Africa are excluded. The merger of the charter airline Hapag Lloyd with the Low Cost Carrier HLX causes similar problems with regard to TUIfly. So far, it was easy to identify Low Cost flights by the difference in service provided during the flights. Low Cost Carriers do not provide catering free of charge. This is a distinct criterion for Low Cost Carriers. Mostly, this is still valid for the current situation, however, recently also on flights to Italy and Sardinia catering is provided free of charge while keeping the ticket prices low. Thus, also these flights (TUIfly) are continued to be considered in the Low Cost Monitor. They include all routes of the Low Cost range, which are not bound to typical tourist destinations and the respective serving flights show mainly single seat booking. Newcomers in the German market are Fly Nordic, Meridiana and Centralwings, who so far have only been active in other European countries. However, Fly Nordic - a Finnish Low Cost Carrier - was taken over by Norwegian in Spring 2008 and is supposed to be integrated in the Norwegian network. Due to system alignments, also Corendon flights can be indicated now.

For most airlines the fleet sizes have remained relatively constant. Solely Ryanair show – as announced – a flight growth from 155 (summer 2007) to 166 (summer 2008) aircraft. This is, among other reasons, due to the extensions of German bases. Thus, at the airport Niederrhein 2 airplanes were additionally stationed in spring 2008. Compared to last summer, also Easyjet have increased their fleet by 20 airplanes to 145 and currently Air Berlin are operating more than 100 airplanes.

4 Carrier Ranking (s. Table 1): Measured by the number of flights offered (departures) during one week in July 2008, Air Berlin turn out to be the major Low Cost Carrier (almost 2,200 movements in the Air Berlin Low Cost segment); compared to summer of the preceding year, when almost 2,000 departures were performed, this is a growth of 10%. Whereas this year in January growth still amounted to about 35% compared to the preceding year, there is compared to July 2007 in July 2008 only an increase by about 9%. According to the ranking, Germanwings are number two (929 departures) followed by TUIfly (657 departures). Their flight services have been only extended slightly. A particularly strong growth (roundly 20%) is seen for Ryanair (613 departures), which is caused, despite of a reduced service in Hahn, mainly by the operation of additional aircraft, and thus the extension of services at the airports of Bremen and Niederrhein. Hence, Ryanair are still guided by their expansion strategy. However, there are announcements of operation pauses for several aircraft, due to the high oil price. Easyjet are reducing their flights already. The number of flights has decreased by 2% to 371 flights per week. In contrast with one additional aircraft, Intersky have increased their flights by almost 30% to 160 flights and thus rank as number 5 in the German Low Cost Carrier ranking, ahead of the British airline Flybe, who had to distinctly reduce their flights to roundly 100, compared to last year, when they were still considerably expanding. The number of flights performed by the remaining Low Cost Carriers is considerably lower than this value.

4 LCC Market Shares (s. Figure 1): The seven major Low Cost Carriers currently share almost 94% of the German market. Roundly 41% of all flights can be allocated to Air Berlin. According to market share ranking, they are followed by Germanwings (17%), TUIfly and Ryanair (12% each). In total, no considerable changes can be seen, compared to the preceding year.

Flight Services

4 Flight Routes (s. Tables 1 and 2 as well as Figure 2): In total, the Low Cost Carriers considered, are serving 617 different domestic and cross-border routes. This means an increase of almost 50 routes, compared to summer 2007, and equals a growth of nearly 9%. Thus, routes expansion was reduced, compared to the preceding years, when more than 100 new routes were added yearly. Ryanair have achieved a considerable network extension by additionally implementing 34 routes. This means a growth of more than 40%, compared to the preceding year. The airports of Bremen and Niederrhein are particularly involved, since network extensions have been realized primarily on these airports. For the first time also domestic flight routes are served. To the routes Hahn-Berlin and Hahn-Luebeck the connection Niederrhein-Berlin will be added in October. In total, Air Berlin and TUIfly have added only a few destinations, such as Brindisi and Bourgas. Air Berlin have added several additional routes to Italy and Eastern . For domestic flight routes the double counting (outward MUC-DUS and return DUS-MUC) should be taken into account. Also Germanwings and Easyjet have expanded their route network by 3-4 new routes, whereas they were serving around 30 new routes in the preceding year.

3 4 After the implementation of domestic flight routes by TUIfly and Germanwings in the last year, also Ryanair have started domestic flight services. However, Ryanair emphasize flight service extension to destinations abroad from the newly installed bases in Bremen and Niederrhein.

4 Air Berlin newly added the airport of Saarbruecken to their network, where they serve routes to Munich and Berlin (among others). In Europe several destinations in Central or East European countries have been added to the network of flight routes. As usual, during summer, routes to typical winter sports regions, such as Switzerland and Austria are less frequented, in contrary to the routes to the holiday destinations on the Mediterranean Sea.

4 Competition: Direct competition among Low Cost Carriers is still relatively low, on 36 of the total number of 665 routes two airlines are competing, only on 6 routes 3 airlines are competing and 575 routes are served by a single airline.

4 Flights (s. Table 1): In total, more then 5,300 flights have been performed by Low Cost Carriers during one week in July 2008; nearly 300 flights more than in the preceding year. Thus, the number of flights has growth slower (by 6%) than the number of routes (by 12%). Hence, the service extension more closely relates to the network extension than to the increment of frequency. Low Cost Carriers are trying to serve more destinations.

4 Seats (s. Table 1): On 5,327 flights, 149 seats have been provided on average per flight, a slightly smaller value than in the preceding year. However, it turns out, that meanwhile for Low Cost Carriers a typical average scale aircraft carrying roundly 150 seats has been established. Thus, these flight-specific seat capacities continue ranging distinctly higher than those of traditional European scheduled airlines. The fleet composition of the individual airlines reflects the increasing tendency of eliminating small-scale planes.

4 Typical aircraft are Airbus 320 and . Only a few airlines, such as Intersky are holding small scale propeller-driven airplanes in their fleet.

4 Countries of Destination (s. Table 2): The countries of destination ranking reveals a big market share of domestic transport: Around 40% of all Low Cost Carrier departures from German airports are performed in this market (on 116 routes, which corresponds to 58 airport pairs) Compared to the summer flight schedule 2007, the number of domestic routes has only increased by 4.5%, in contrary to the preceding period, when there was an increase by almost 45%. During the months of summer and Great Britain, which always change places during the months of winter, were ranging on the second and third places when performing about 800 respectively 500 flights. Italy is number four like in the preceding year. For the first time there is a decrease of Low Cost flights to Italy as well as to Great Britain, compared to the preceding year. Austria and Switzerland are numbers 5 and 6. The decrease of flights to destinations in is continuing, as already seen last year. Ireland and range on the places 8 and 9 (100 flights each). In total, the Low Cost Carriers, residing in Germany, are serving routes to destinations in 34 countries. Compared to the preceding year, there is no additional country of destination.

4 Airports (s. Figure 3): The most frequented German airport, Frankfurt, continues to play only a minor role in the Low Cost segment, due to its distinct hub function in legacy scheduled airline traffic and the already high utilisation of airport capacity. Thus, only 130 flights or nearly 3% have been performed as Low Cost flights (mainly by Air Berlin and Flybe). Cologne/Bonn shows a higher value than in the preceding year (680 departures which correspond to 66% of the local flight traffic) and is again number 1 in the airport ranking, after leaving the first place to Berlin-Tegel in the last year. A considerable growth is seen on the airports of Niederrhein and Bremen, but also Duesseldorf shows over-proportional growth. There has been however a decrease on Munich Airport. After a considerable reduction of flights in spring of this year, the airport Hahn has achieved to re-catch the level of the preceding year. The airports of Niederrhein, Luebeck and Altenburg are exclusively served by Low Cost Carriers.

4 Air Fares

4 Average Fares The air fares offered by the major Low Cost Carriers in Germany, are vary considerably related to destination and booking period. The prices quoted by the Carriers are often net prices, which normally do not include any fees, taxes or other charges and thus are not really meaningful. In order to allow for statements on final prices, the prices for LCC flights on 62 selected routes – this corresponds to a representative random sample of 10% of all LCC routes - have been assessed for 4 different points of time (booking period of one day, one week, one month and three months). Date of travel chosen was October 13th, 2008.

In autumn 2008, the average fares determined in this way for one route, vary between approx. 13 Euro and 79 Euro (net prices) and between 37 Euro and 128 Euro (gross prices). The difference between net and gross prices amounts in the best case to Euro 16 and in the worst case to Euro 68. Most average fares amount to values between Euro 60 and Euro 120 (final prices).

4 Average Prices related to Booking Period Average fares on 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 four- to tenfold of a trip to be started in 3 months. The average gross prices for major Low Cost Carrier flights in Germany, vary between Euro 65 and Euro 210 for a flight, which was booked one day before departure and between approx. Euro 20 and Euro 75 for a flight, which was booked 3 months in advance. Most low-priced flights (long booking period) thus cost between approx. Euro 22 and Euro 60. However, in many cases, prices rise to values between approx. Euro 75 and Euro 185, if the flight were started on the next day.

4 A detailed analysis of Low Cost Carrier fares in Germany can be found on the DLR Website (www.dlr.de/fw).

Passenger Demand

4 In the first half year of 2008, a total of 25,983,010 boarding and de-boarding passengers was counted on the 24 international ADV-airports (Berlin is counted as one site) as well as on 4 additional regional airports, in the Low Cost Carrier segment. Compared to the same period of the preceding year, this is a growth by 12.8% (see Table 3). Thus, the growth is decelerating, due to the high degree of market saturation (see Figure 4).

4 With regard to the 24 international airports, the LCC-portion of the total local passenger traffic (boarding and de-boarding passengers) comprises 28.1% in the first half year 2008 (see Table 3). With regard to the former 19 international airports the LCC-portion comprises 27.4% (see Figure 5).

4 On domestic flights, in total 9,615,364 LCC-passengers were counted (+15.8%) (see Table 4). Related to the original domestic passenger demand (disregarding transfer passengers), the LCC- portion amounts to 52%.

4 On cross-border flights 16,367,646 passengers were counted (+10.7%) (see Table 5). Leading countries of destination/origin are Spain (4.3 million), Great Britain (2.4 million), Italy (2.3 million) and Austria (1.3 million).

Reasons for the partly significantly diverging growth rates, of country-country-flows, are mainly changes in the extent of supply (number of routes served, seats available). After Georgia’s drop out, in total 33 countries are served. The LCC-portion of the original demand (disregarding transfer passengers) has slightly increased to be 39% now.

5 The current Low Cost Carrier Market in Europe

Besides the detailed analysis of the German Low Cost Carrier market, also the main characteristics of the European LCC-market are described here. In addition to the airlines operating in the German market, further airlines can be allocated to the Low Cost Carrier market. However, the number of those airlines is increasing, which are involved in the traditional network or charter business as well as in the pure Low Cost segment (for example Air Berlin in Germany). Hence, the distinction between traditional network carriers, holiday airlines and Low Cost Carriers becomes even more complicated. Consequently, this analysis cannot be considered to be complete, but is intended to approximately inform on the extent and structure of the European Low Cost market. In addition to the airlines, involved in the German market, the following airlines are actors in the European market:

Air Italy (I9) (www.airitaly.it), Fleet: 5 Aircraft (B737: 2, B757: 2, B767:1) Air Slovakia (GM) (www.airslovakia.sk), Fleet: 4 Aircraft (B737: 5, B757: 1) Blu Express(BV) (www.blu-express.com), Fleet: 3 Aircraft (B737: 2, B767: 1) Blue 1 (KF) (Blue1.com), Fleet: 11 Aircraft (Avro RJ: 6, MD90: 5) Bmibaby (WW) (www.bmibaby.com), Fleet: 19 Aircraft (B737: 19) Brussels Airlines (SN) (www.brusselsairlines.de) Fleet: 41 Aircraft (A319: 4, Avro RJ: 26, B737: 11) Flybaboo (F7) (www.flybaboo.com), Fleet: 4 Aircraft (D8: 2, E190: 2) Flyglobespan (Y2) (www.flyglobespan.com) Fleet 12 Aircraft (B737: 10, B757:1, B767:1) Jet4you (8J) (www.jet4you.com), Fleet: 5 Aircraft (B737: 5) Myair.com (8I) (www.myair.com), Fleet: 8 Aircraft (A320: 4, CRJ900: 4) Sky Express (XW) (www.skyexpress.ru), Fleet: 8 Aircraft (B737-300: 2, B737-500: 6) Sky Europe (NE) (www.skyeurope.com), Fleet: 15 Aircraft (B737: 15) Transavia.com France (TO) (www.transavia.com), Fleet: 7 Aircraft (B737: 7) Volare (VA) (www.volareweb.com), Fleet: 6 Aircraft (A320: 4, MD83: 2) Vueling (VY) (www.vueling.com), Fleet: 20 Aircraft (A320: 20) Windjet (IV) (www.volawindjet.it), Fleet: 11 Aircraft (A319: 2, A320: 9)

The major European Low Cost Carrier is Ryanair with 7,600 departures in Europe in July 2008. Ryanair has exceeded the values of July 2007 by more than 1,000 departures. They cover more than 1,200 routes (see Table 6). Second major airline is Easyjet with 6,534 departures on 639 routes. After a big gap, they are followed by Air Berlin and flybe with 3,000 departures per week each. Again there is a big gap. Then they are followed by Norwegian, Aer Lingus, Germanwings, Meridiana, TUIfly, Vueling and Clickair (1,000 to 1,500 departures).

With respect to Low Cost flights, Great Britain is still number 1 of the destination countries (see Table 7). In this country of destination there are more than 1,000 routes from Europe, domestic routes included. Almost 10,000 flights were performed in the time frame considered. Number 2 is Spain with around 5,600 flights and 675 routes. Germany and Italy range on the third and fourth places with around 5,300 respectively 4,800 departures. From the total of 5,600 routes more than 4,800 are served by only one Low Cost Carrier. Only on around 390 routes are operating 2, on 60 routes 3 and on 2 routes 4 competing Low Cost Carriers.

The major European Low Cost Carrier airport is London-Stansted with over 1,600 departures per week in July 2008 (see Figure 6). follows with nearly 1,400 departures. The airports London-Gatwick, Barcelona and Palma range on places 3 to 5. The third London airport, Luton, is number 6 (713 departures), followed by Cologne with 687 departures. In total, more than 3,500 flights are offered on the London airports, the highest number of flights of all European agglomerations. Among the 30 major Low Cost Carrier airports in Europe range Berlin-Tegel (number 12), Duesseldorf (number 17), Munich (number 20), Berlin-Schoenefeld (number 23) and Stuttgart (number 25), which show more than 400 Low Cost Carrier departures per week.

As to the European traffic the Low Cost Carrier market share has increased from 24% in summer 2007 to currently 27% (see Figure 7). 73% of the flights are performed mainly by traditional scheduled airlines and holiday airlines. Another part of the market is served by smaller regional airlines, who mainly cooperate with a major airline.

With regard to the winter season the airlines are announcing an operation pause on several routes, due to the high oil price.

6

Low Cost Carrier Market in Germany

07/2008 07/2007 Change (%)

Rank Airline Flights Seats Routes Flights Seats Routes Flights Seats Routes 1 Air Berlin (LCC-Segment) 2,179 323,868 152 1,996 287,138 135 9.2 12.8 12.6 2 Germanwings 929 133,776 138 920 135,270 134 1.0 -1.1 3.0 3 TUIfly (LCC-Segment) 657 102,660 127 644 98,008 120 2.0 4.7 5.8 4 Ryanair 613 115,857 112 518 97,902 78 18.3 18.3 43.6 5 Easyjet 371 57,687 47 379 58,956 44 -2.1 -2.2 6.8 6 Intersky 160 6,050 22 124 6,200 17 29.0 -2.4 29.4 7 flybe 102 5,676 11 141 7,672 11 -27.7 -26.0 0.0 8 Air Baltic 61 7,406 9 49 4,908 9 24.5 50.9 0.0 9 Wizz 59 10,620 12 52 9,360 11 13.5 13.5 9.1 10 Aer Lingus 55 9,570 7 48 8,352 6 14.6 14.6 16.7 11 Norwegian 39 5,864 7 28 4,144 6 39.3 41.5 16.7 12 fly Niki 22 3,616 2 11 1,900 1 100.0 90.3 100.0 13 Clickair 21 3,780 3 28 5,040 4 -25.0 -25.0 -25.0 14 Jet2 10 1,480 2 12 1,776 2 -16.7 -16.7 0.0 15 Iceland Express 8 1,269 3 8 1,200 3 0.0 5.8 0.0 16 Blue Air 8 1,088 3 4 544 1 100.0 100.0 200.0 17 Easyjet Switzerland 7 1,092 1 19 2,964 2 -63.2 -63.2 -50.0 18 Sterling 6 1.008 1 6 756 1 0,0 33,3 0,0 19 FlyNordic 6 990 1 0 0 0 100.0 100.0 100.0 20 Transavia 5 745 1 7 1,043 1 -28.6 -28.6 0.0 21 Centralwings 5 900 2 0 0 0 100.0 100.0 100.0 22 Meridiana 2 264 1 0 0 0 100.0 100.0 100.0 23 Corendon 2 300 1 0 0 0 100.0 100.0 100.0 24 Condor City Fliegen 0 0 0 21 3,836 5 -100.0 -100.0 -100.0 25 Brussel Airlines 0 0 0 6 498 1 -100.0 -100.0 -100.0 26 Blue 1 0 0 0 6 741 2 -100.0 -100.0 -100.0 27 Air Italy 0 0 0 4 592 1 -100.0 -100.0 -100.0

Total 5,327 795,566 665 5,031 738,800 595 5.9 7.7 11.8

Table 1: Low Cost Carrier Ranking according to the number of flights performed (during one week in July; domestic routes are counted twice)

*Routes served by several carriers are counted twice.

5,9% 1,9% 3,0%

7,0%

Air Berlin 40,9% Germanwings TUIfly 11,5% Ryanair Easyjet Intersky flybe Other

12,3%

17,4%

Figure 1: Low Cost Carrier Market Share in Germany (according to number of flights performed during one week in July 2008)

7

Low Cost Carrier Market in Germany 07/2008 07/2007 Change (%) Country of Rank Destination Flights Seats Routes Flights Seats Routes Fights Seats Routes 1 Germany 2,115 283,379 1162,003 266,684 111 5.6 6.3 4.5 2 Spain 801 141,711 74610 107,024 63 31.3 32.417.5 3 Great Britain 498 71022 54 591 80179 56 -15.7 -11.4 -3.6 4 Italy 456 74,504 101486 79,936 97 -6.2 -6.84.1 5 Austria 257 36,237 25257 37,274 28 0.0 -2.8-10.7 6 Switzerland 133 21,290 8 132 20,534 10 0.8 3.7 -20.0 7 France 109 15,237 20126 17,732 18 -13.5 -14.111.1 8 Ireland 100 17,940 1695 17,055 14 5.3 5.214.3 9 Sweden 100 17,085 1663 10,845 10 58.7 57.560.0 10 Greece 92 14,212 3466 10,368 20 39.4 37.170.0 11 91 15,672 1978 13,332 16 16.7 17.618.8 12 72 10,132 2460 8,466 20 20.0 19.720.0 13 Latvia 62 8,560 951 6,608 8 21.6 29.512.5 14 Portugal 50 7,779 1146 7,359 11 8.7 5.7 0.0 15 Hungary 49 7,726 1149 7,555 10 0.0 2.3 10.0 16 48 6,924 1349 7,328 14 -2.0 -5.5-7.1 17 47 7,571 939 6,223 8 20.5 21.712.5 18 Russia 45 6,972 852 7,488 11 -13.5 -6.9-27.3 19 31 4,828 3 31 4,758 3 0.0 1.5 0.0 20 Romania 27 4,076 7 10 1,546 2 170.0 163.6250.0 21 Finland 23 4,239 435 5,908 6 -34.3 -28.2-33.3 22 Lithuania 20 2,449 5 19 2,038 5 5.3 20.2 0.0 23 Bulgaria 18 2,820 7 7 1,038 5 157.1 171.740.0 24 Czechia 14 2,100 214 2,100 2 0,0 0.0 0.0 25 Serbien 14 2,016 511 1,584 5 27,3 27.30.0 26 Island 10 1,557 48 1,200 3 25,0 29.833.3 27 Marokko 9 1,701 3 9 1,638 3 0,0 3.8 0.0 28 Belgien 7 1,092 16 498 1 16.7 119.30.0 29 Estland 7 1,092 17 1,092 1 0,0 0.00.0 30 Malta 7 1,143 34 576 2 75,0 98.450.0 31 Slovakei 7 1,323 1 7 1,323 1 0,0 0.0 0.0 32 Niederlande 5 745 1 7 1,043 1 -28,6 -28.6 0.0 33 Mazedonien 2 288 1 1 144 1 100,0 100.0 0.0 34 Albanien 1 144 1 1 144 1 0,0 0.0 0.0 35 Ägypten 0 0 0 1 180 1 -100,0 -100.0-100.0

Total 5,327 795,566 617 5,031 738,800 568 5,9 7.7 8.6

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)

8

617 568

426 325

Figure 2: Development of the LCC-Network on German Airports

5000 AOC - Altenburg/Nobitz HGL - Helgoland Flights/Week BMK - Borkum HHN - Hahn LCC-Flights/Week 4500 BRE - Bremen HOQ - Hof BRV - Bremerhaven IGS - Ingolstadt BWE - Braunschweig KEL - Kiel 4000 CGN - Köln/Bonn LBC - Lübeck DRS - Dresden LEJ - Leipzig 3500 DTM - Dortmund MGL - Mönchengladbach DUS - Düsseldorf MHG - Mannheim EME - Emden MUC - München 3000 ERF - Erfurt NDZ - Nordholz FCN - Cuxhaven NRN - Niederrhein 2500 FDH - Friedrichshafen NUE - Nürnberg FKB - Karlsruhe/Baden-Baden PAD - Paderborn FMM - Memmingen RLG - Rostock/Laage Take off´s/Week Take 2000 FMO - Münster/Osnabrück SCN - Saarbrücken FRA - Frankfurt/Main STR - Stuttgart 1500 GWT - Sylt SXF - Berlin-Schönefeld 1. HAJ - Hannover THF - Berlin Tempelhof HAM - Hamburg TXL - Berlin - Tegel 66% 1000 HDF - Heringsdorf WVN - Wilhelmshaven HEI - Heide ZQW - Zweibrücken 500 new LCC-Flights

100% 3% 0

F C V N K E F M T F N N H O E E M A D HEI OQ WE IGS LG QW C M W H R D LEJ M U GN TXL R H AO H B R BR Z F MHG BM EM HGL ER LBC F G T FKB N PAD SC F F DTM DRS BR HHN N SXF HAJ C STR HA DUS MUC F Airport

Figure 3: Passenger Flights per Week at German Airports in July 2008

9

Low Cost Carrier Market in Germany

Passengers 1. HY 2008 Change (%) LCC Airports of LCC Portion Total LCC Traffic of Total

Berlin (all airports) 10,241,888 5,567,365 + 15.3 54.4% Köln/Bonn 4,854,915 3,404,115 - 0.3 70.1% München 16,979,378 2,747,991 + 9.0 16.2% Düsseldorf 8,619,237 2,489,832 + 24.8 28.9% Stuttgart 4,698,923 2,080,496 + 7.0 44.3% Hamburg 6,239,927 1,920,584 + 11.2 30.8% Hahn 1,808,951 1,795,910 - 4.3 99.3% Dortmund 1,182,584 996,511 + 53.9 84.3% Hannover 2,602,648 890,682 + 8.2 34.2% Frankfurt 26,152,040 727,435 + 7.6 2.8% Niederrhein 660,870 656,620 + 146.0 99.4% Nürnberg 2,118,158 653,369 + 17.7 30.8% Bremen 1,184,816 466,374 + 101.7 39.4% Dresden 851,827 260,971 + 2.6 30.6% Münster/Osn. 698,465 244,255 + 19.7 35.0% Lübeck 243,329 240,121 - 17.6 98.7% Karlsruhe/Bad.-Bad. 523,310 205,163 + 26.0 39.2% Leipzig/Halle 899,161 188,221 - 43.4 20.9% Friedrichshafen 313,152 87,964 - 5.2 28.1% Saarbrücken *) 214,552 63,226 29.5% Paderborn 514,984 52,540 - 28.3 10.2% Erfurt 129,381 - Internat. Airports 91,732,496 25,739,745 + 12.3 28.1%

Memmingen **) 107,104 Zweibrücken 66,205 + 1.9 Altenburg Nobitz 63,070 + 13.6 Rostock ***) 6,886 Regional Airports 243,265 + 94.9

IntAirp + RegAirp 25,983,010 + 12.8

*) since 09/2007 **) since 26.06.2007 ***) since 05/2008

Table 3: Low Cost Passenger Traffic according to Airports and Portion of Total (first half year 2008)

10 Growth rate (%) Zuwachsrate % 360 350

300

250

200

150

100 83

50 45 32 24 20,5 12,8 0 2002 2003 2004 2005 2006 2007 1. HJ 2008

Figure 4: LCC Traffic Growth Rates in Germany

Low Cost Carrier Market in Germany LCC Passagengers LCC portion of Airport (domestic traffic; first half Change % domestic original traffic year 2008) (approximated values) Berlin (all airports) 2,363,197 + 19.8 66% München 1,805,560 + 8.2 50% Köln / Bonn 1,084,232 - 6.4 62% Hamburg 1,047,287 + 28.7 46% Düsseldorf 994,174 + 34.6 58% Stuttgart 955,789 + 18.0 67% Nürnberg 289,240 + 29.0 73% Dresden 218,543 - 3.0 54% Hannover 178,728 + 27.1 49% Dortmund 116,663 > 100.0 49% Leipzig / Halle 115,747 - 42.2 86% Münster / Osnabrück 106,464 + 39.9 54% Karlsruhe/Bad.-Bad. 65,789 + 71.9 51% Frankfurt 50,130 - 56.6 3% ) Saarbrücken * 44,023 - 7.3 44% ) Hahn *** 30,766 100% Bremen 1,603 - 97.0 1% Erfurt - Friedrichshafen - Lübeck - Niederrhein - Internat. Airports 9,467,935 + 16.4 52% Zweibrücken 66,205 + 1.9 Memmingen **) 75,250 > 100.0 Rostock ****) 5,974 Regional Airports 147,429 > 100.0 IntAirp + RegAirp 9,615,364 + 15.8 *) since 09/2007 **) since 26.06.2007 ***) since 04/2008 ****) since 05/2008

Table 4: Portion of domestic LCC Passenger Traffic according to Airports and Share of original Traffic (first half year 2008)

11 Marketshare (%)

80 70,9 70 67,3 64,7 61,6 Linie trad. 59,8 60 58,7 59,8 (59,9)

50

40

30 Charter trad. Anteile in % 24,3 23,2 23,4 26,3 27,4 (25,8) 20,8 19,9 20 18,9 15,0 9,5 14,5 16,8 12,8 (14,3) 10 4,8 LCC 0 2002 2003 2004 2005 2006 2007 1. HJ 2008 (2007) Figure 5: LCC Traffic Portion of Total Traffic (international airports)* *) without Niederrhein, Lübeck, Karlsruhe/Baden-Baden, Friedrichshafen, Paderborn

Low Cost Carrier Market in Germany LCC Portion of Country of LCC Passengers Change % original Traffic Origin/Destination 1. HY 2008 (approximated values) Spain 4,271,694 + 22.2 45% Great Britain 2,397,899 - 2.9 51% Italy 2,354,501 + 1.9 59% Austria 1,335,858 + 17.2 59% Switzerland 831,916 + 4.5 45% Ireland 590,033 + 7.8 88% France 538,689 - 26.6 23% Poland 497,570 + 0.6 56% Sweden 405,378 + 15.7 45% Greece 351,340 + 39.2 20% Portugal 292,672 + 33.6 29% Norway 280,117 + 5.8 53% Czech Rep. 267,129 + 235.9 89% Hungary 256,318 + 5.5 50% Russia 245,975 + 6.7 23% Croatia 212,992 + 24.7 56% Turkey 194,429 - 8.2 5% Denmark 159,663 + 4.2 29% Finland 155,944 - 5.6 29% Latvia 120,920 - 3.2 52% Morocco 100,835 + 292.2 Romania 97,209 + 302.5 27% Montenegro 82,674 + 58.5 31% Bulgaria 62,355 + 289.7 16% Slovak Rep. 51,486 + 10.6 65% Belgium 43,254 > 1000.0 10% Malta 36,291 + 219.5 20% 34,103 + 100.0 37% Netherlands 31,372 - 33.2 7% Lithuania 27,250 - 5.2 24% Tunisia 22,706 > 1000.0 Iceland 16,921 + 59.5 23% Albania 153 - 47.4 1% Total 16,367,646 + 10.7 39% Table 5: LCC Passengers (cross-border traffic; according to country of origin/destination and share of original traffic in the first half year 2008)

12 Low Cost Carrier Market in Europe Low Cost Carrier Market in Europe 07/ 2008 07/2008 Rank Airline Flights Seats Routes Rank Country Flights Seats Routes 1 Ryanair 7,639 1,443,771 1,222 1 GB 9,988 1,447,677 1,027 2 Easyjet 6,534 1,026,519 639 2 ES 5,669 978,970 675 Air Berlin (LCC- 3 Segment) 3,485 543,420 330 3 DE 5,327 795,566 617 4 Flybe 3,047 238,714 300 4 IT 4,802 765,326 654 5 Norwegian 1,564 239,294 287 5 FR 2,338 364,944 349 6 Aer Lingus 1,439 272,993 167 6 IE 1,841 348,281 209 7 Germanwings 1,434 206,496 252 7 NO 1,118 171,253 163 8 Meridiana 1,122 149,548 104 8 SE 945 151,715 130 9 TUIfly (LCC-Segment) 1,093 171,492 230 9 PL 914 160,223 226 10 Vueling 1,036 186,480 114 10 CH 735 111,784 106 11 Clickair 1,036 186,480 110 11 NL 707 112,676 95 12 Air Baltic 989 95,556 138 12 PT 604 100,626 95 13 bmybaby 916 134,194 126 13 BE 566 86,325 60 14 Wizz 870 156,600 206 14 AT 551 84,786 105 15 Sterling 862 130,170 196 15 DK 541 79,854 75 16 Jet 2 718 123,490 148 16 LV 461 51,161 64 17 Sky Europe 676 100,724 150 17 RU 461 56,874 47 18 Easyjet Switzerland 646 100,776 88 18 GR 388 64,766 134 19 Myair.com 488 68,080 107 19 CZ 276 42,552 51 20 RO 248 37,760 53 20 Transavia 488 75,130 91 21 FI 226 26,962 33 21 Brussels Airlines 476 63,414 26 22 HU 191 31,841 46 22 Centralwings 461 81,584 162 23 SK 191 30,779 34 23 Windjet 406 73,080 59 24 LT 186 18,460 25 24 Sky Express 360 43,200 22 25 HR 178 26,894 63 25 fly Niki 278 48,686 88 26 TR 141 22,351 43 26 flyglobespan 278 44,084 96 27 BG 102 15,882 33 27 Blue1 238 27,576 34 28 EE 80 6,956 6 28 Fly Nordic 232 38,580 32 29 MT 60 10,949 17 29 Intersky 210 8,056 38 30 IS 58 9,585 16 30 Volareweb 183 33,040 34 31 CY 37 6,776 11 31 Blue Air 166 22,576 46 32 UA 24 2,615 5 32 Transavia.France 116 20,880 27 33 RS 22 3,329 9 33 Iceland Express 112 18,594 30 34 GI 16 2,784 1 34 Air Italy 102 14,084 31 35 MD 12 1,176 4 35 flybaboo 100 7,400 16 36 BY 7 322 1 36 Blu Express 83 13,904 9 37 SI 7 1,092 1 37 Corendon 75 12,396 34 38 GE 5 683 1 38 jet4you 64 11,072 11 39 AL 3 480 2 39 Air Slovakia 15 2,729 8 40 BA 3 567 2 41 AM 2 267 1 Total 40,037 6,234,862 5,808 42 AZ 2 267 1 43 MK 2 288 1 Table 6: Low Cost Carrier Ranking in 44 UZ 2 438 1 Europe (according to number of flights performed during one Total 40,037 6,234,862 5,292 week in July 2008; both route Table 7: European Country Ranking directions are considered) (according to number of flights performed during one week in July 2008, both route directions

are considered)

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6000 AGP - Malaga DUS - Düsseldorf MUC - München Flights/Week ALC - EDI - Edinbugh MXP - Mailand Malpensa LCC-Flights/Week AMS - FCO - Rom Fiumincino OSL - ARN - Arlanda GLA - Glasgow PMI - Palma Mallorca 5000 BCN - Barcelona HAM - Hamburg RIX - Riga BHX - Birmingham LGW - London-Gatwick STN - London Stansted CDG - Charles de Gaulles LPL - Liverpool STR - Stuttgart CGN - Köln/Bonn LTN - London-Luton SXF - Berlin-Schönefeld 4000 CPH - Kopenhagen MAD - Madrid TXL - Berlin Tegel DUB - Dublin MAN - Manchester VIE - Wien

3000 Take off´s/Week

2000

1000

0 VIE EDI RIX PMI LPL TXL LTN BFS ALC SXF OSL STN STR BHX BGY BCN DUB DUS ARN AGP CPH FCO AMS MXP MAD MAN CGN CDG MUC LGW

Figure 6: The major European LCC Airports (according to flights performed per week in July 2008)

LCC-Take off´s LCC-Starts 27% 27%

27%

Other Airlines

73%Andere Fluggesellschaften Other Airlines73% 73%

Figure 7: LCC Share of European Air Transport (according to number of departures performed in July 2008)

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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: [email protected]

Manfred Kuhne Arbeitsgemeinschaft Deutscher Verkehrsflughäfen Gertraudenstr. 20 10178 Berlin Tel.: (49) 030-3101-18-51 Fax: (49) 030-310-118-24 E-Mail: kuhne@adv.

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