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BIO BLOCK 1 PRESENTATIONBILBAO-BIZKAIA OF ACTION GROUP / - CONECTIVIDAD / BASQUE COUNTRY AEREA 2

Bilbao, a world benchmark in urban transformation, bringing in 1,615,918 visitors and expectations of growth in events, tourism, business and investment.

Come fly with us. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 3 Route Development Committee

Driving air connectivity It acts as -between for the airlines and in the city various authorities in the Basque Country of Bilbao to assist with growth or implementation. and the province of MEMBERS: , Biscay. Biscay Provincial Council, Bilbao Town Hall, Aena-Bilbao Airport and Bilbao Air, along with the Chamber of Commerce. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 4 PRESENTATION

Block 1 Bilbao / Biscay / Basque Country. European Atlantic Axis hub Tourist destination with a prestigious brand Record number of visitors Intense “MICE” activity Visitor profile in Biscay Covid-19: Rules and procedures in Bilbao Biscay European competitive region Excellent external and internal connectivity Bilbao Port BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 5 Strategic central location on the European Atlantic

Bilbao is the capital of Biscay province, its largest city, and the Basque Country’s economic and financial hub.

2 Pentagon 1,152,651 2,217 km most densely populated area people of Basque Country

Biscay live in the province of Biscay

Milan

BILBAO Basque

Country €33,896 2,188,017 PIB per cápita 2019. Well above the figure for the State as a whole, people similar to that of ’s fully industrialised more than 52% of the population of Biscay regions, and also above the EU-28 average. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 6 Tourist destination with a prestigious brand ’s most The Bilbao brand has a huge transparent capacity to draw in visitors. city in 2008, 2009, 2011, 2012, Guggenheim Bilbao is a 2014 and 2017, world icon, one of the 20th century’s according to major architectural creations. Transparency International. Worldwide example of urban regeneration. Best European City 2018 8th economic and development index (UN). 1,170,669 visitors in 2019 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 7 Congresses and events with an international projection

Bilbao-Biscay has hosted outstanding international events including ‘The World’s 50 Best Restaurants’, the MTV Music Awards ceremony, and the Challenge Cup and the Rugby Champions Cup. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 8 Unesco World Heritage sites

The Santimamiñe Cave, testimony to the earliest human art

The Bizkaia The Way of St. Transporter James - Northern Bridge, one of the route, a pilgrim most outstanding route with examples of metal outstanding natural architecture from and historical the Industrial heritage Revolution BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 9 Avant-garde cuisine, with real appeal Azurmendi***/ Eneko*/ Eneko Bilbao*/ A province that is Andra */ Boroa*/ home to Michelin Etxanobe Atelier*/ stars, delicious */ Mina*/ pintxos (small bites), Nerua Guggenheim*/ typical diches and Zortziko*/ Ola Martín outstanding wines Berasategui*/ Zarate* such as .

14 Michelin stars. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 10 Record number of visitors

Numbers of visitors for leisure and business purposes have risen steadily in recent years. 3,800,000 people visited Euskadi in 2019, an increase of 3.2% compared to the previous year. A total of 7,978,593 overnight stays were recorded in the Basque Country last year, up by 3.8% against 2018.

Euskadi 3,800,000 visitors in 2019 increase of 3.2% compared to 2018 7,978,593 overnight stays in 2019 up by 3.8% against 2018 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 11 Biscay

One out of every two visitors to the Basque Country passes through Biscay. The foreign market increased significantly in the course of the year. 41% Visitors, foreign Main foreign market source markets 2019 (%)

Biscay Portugal Belgium America Rest of Europe 1 Italy 1,615,918 1 59% 1 Rest of EU Rest of the world visitors in 2019 Visitors, state market Up by 6% against 2018 up by 3.9% against 2018 1 UK 1 11 Germany 3,194,427 Source: ETR Survey by Eustat. In-house.. 2019 overnight stays in 2019 increase of 2.6% compared to 2018 1.98

Source: ETR Survey 2019 Eustat. In-house. by Average length of stay BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 12 Evolución ascendente de visitantes Visitors Overnight Trend in year total state total foreign total state total foreign registration 2009 685,529 301,708 1,187,803 594,193 3,500,000 at hotels 2010 748,129 349,911 1,358,126 674,152 3,000,000

2011 801,579 377,744 1,450,624 737,707 2,500,000 2012 774,650 399,977 1,434,623 783,117 2,000,000 2013 733,413 411,641 1,335,785 779,990 1,500,000 2014 720,635 420,197 1,372,787 816,139 1,000,000 2015 784,840 464,371 1,483,307 887,216 2016 842,140 499,580 1,604,000 970,955 500,000

2017 851,184 563,276 1,593,099 1,100,795 0 2018 865,589 597,752 1,664,326 1,193,484 2011 2017 2012 2015 2013 2019 2016 2018 2014 2010 2019 888,992 629,169 1,193,484 1,242,323 2009 Var. (%) +29.68% +108.54% +0.48% +109.08% +70% Source: ETR Survey by Eustat. In-house. 2019 Source: ETR Survey by Eustat. In-house. 2019 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 13 Bilbao

Bilbao’s attractiveness has grown exponentially in recent years. Inbound travellers exceeded a million people in 2019. That was also the case for overnight stays, which rose from 1,746,276 to 1,977,943 over a 2-year period, according to Bizkaia Tourist Observatory data.

A city with a Bilbao turning point and projection reflected in the 1,022,113 Guggenheim visitors in 2019 Museum Bilbao. up by 90,000 against 2018 1,977,943 overnights in 2019 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 14 Hotels and accommodation

The range of hotels and accommodation in Bilbao Bizkaia has grown exponentially in the last decade in parallel to its tourist appeal, and totalled 398 establishments and 18,312 places in 2019, 13,248 of which are in the Bilbao . 895 new places by the end of 2021 with the opening of 6 new hotel establishments.

Bilbao

6 new hotel 13,248 places in 2019 establishments by the end of 2021. Bizkaia 18,312 398 places in 2019 establishments BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 15 Favourable seasonality

Inbound of tourists

200.000

175.000

150.000

125.000

100.000 Total

75.000 State

50.000

25.000 Foreign

0 July May June April March August January October February December November September

Source: Eustat 2020. Estacionalidad de la demanda en establecimientos hoteleros 2019. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 16 Intense “MICE” activity

Bilbao- Biscay also has a full history of MICE activity (Meetings, Incentives, Conventions and Exhibitions).

1,406 Bilbao 643 763 organised by organised Exhibition businesses by associations Centre is another venue for mega-events. 729 378 299 regional state international

In relation to Culture, Events in 2019 Events Source: Convention Bureau 78.02% Economics and Medicine BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 17 Visitor profile in Biscay

Due to the country’s Source: In-house. 2019 94,300 proximity, most foreigners visiting Biscay are still French, 70,027 and 94,300 tourists 62,322 were registered in 2019. 53,005 52,939

100% of US visitors 47,790 arrive in the Basque

One of the major Country by air, and the 29,221 airport is also used en indicators for masse by almost 90% Bilbao- Biscay as a of German and British tourist destination tourists. UK Italy is the extent to USA France Benelux Germany F F which most visitors Nordic C. recommend it (9.05). 663.1€ average spending per stay. Average spending by foreign visitors was substantially higher at 791.90 .

Source: ETR Survey by Eustat. In-house. 2019 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 18 New tourist profiles /Covid-19

Rural Tourism-Slow Tourism Experiencing the destination at your leisure, an alternative to mass tourism. In a sustainable and environmentally friendly way. Preference for agritourism and rural hotels. The coming of Covid-19 Nature Tourism has change Searching for wellbeing, feeling of freedom and outdoor experiences where it is often easy to the tourist respect safety distances. Tourism closely linked to profiles. the family segment.

Adventure Tourism Linked to mental and physical health, aspects that have become more important when it comes to travelling during the pandemic. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 19 In pursuit of natural landscapes A universe Armañón, and Gorbeia where you can are the province’s three natural reconnect with , beautiful landscapes with nature and spectacular waterfalls, peaks rising which also offers up over 1,000 m high and unique a wealth of geological formations. adventure and leisure activities.

The Urdaibai Biosphere Reserve, an exceptional natural enclave stretching over more than 22,000 ha. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 20 Rural tourism on the rise

Biscay 51,873 2019 agritourism Euskadi inbound travellers 133,123 2019 agritourism 402 overnight stays Rural houses Basque Country

ETR (Residents Travel Survey) Data

122 rural accommodation units 32 Rural tourist apartments in the 1,237 Basque Country

places ObservatoryBizkaia Tourist Basque Government BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 21 Covid-19: Rules and procedures in Bilbao Biscay The Basque Country is in the “New Normality” stage. Check here the general situation update, recommendations and measures taken by the Basque Government.

112 is the emergency 900203050 is the telephone number for urgent number of the Health Euskadi has an cases. Council for issues relating to autonomous the Covid-19 pandemic. health service Regulations of the health authorities against COVID-19 responsible for public health Compulsory The use of a facemask in outdoor spaces and control. in indoor spaces for public use regardless of the interpersonal distance.

Recommended Hand washing whenever Keeping a safe distance objects or contact of at least 2 metres from surfaces are touched. other people.

Using electronic paying methods, such as debit or credit cards. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 22 A flagship health system

Bilbao Bizkaia has an extensive healthcare structure that ensures its citizens and visitors alike can access first-rate medical services. The The Basque (Basque Health Service) Country is among 36 network is complemented with a hospitals wide offer of top-tier hospitals and the European clinics. regions whose public health The Basque Country is among the systems are best European regions whose public health systems are best funded. funded. The public health budget per capita 7,010 (€1,731) is 30.3% higher than the beds Spanish state average and places the Basque Country at the top of the

GV 2019 Autonomous Communities. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 23 European competitive region

Basque industry accounts for 24.6% of GDP, and its main features are efficiency, quality, technical excellence and its Investment in commitment to . R+ beyond the internationalisation EU average. It is a region brimming over with talent. It has renowned R+D centres working side by side with the authorities to implement With only 4.7% of the population of Spain, new production processes, enhance current processes and exports (chiefly to deploy Industry 4.0. France and Germany) account for almost 9% of the total figure for

Fuente:the SPRI Spanish state. The Basque Source: SPRI Country’s 23.5% GDP per-capita GDP Basque industry outstrips the EU-28 average by 19%, with a productivity ratio of 124%.

Source: ETR Survey by Eustat. In-house. 2019 BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 24 Head office of leading multinationals

Companies based in the Basque Country lead the way in fiercely competitive sectors such as energy, aeronautical construction and rail infrastructures, bioscience, automotive, machine tools and shipping, among others. Companies with a strong international presence, generating a significant flow of business travellers.

€613,950,000 foreign investment 136 business projects 2014-2019

Source: SPRI

Source: In-house. BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 25 Excellent external and internal connectivity

Bilbao is a global interconnected city thanks to its airport, northern Spain’s largest, a modern port, an extensive modern road network, and a local rail service to most Basque towns. The public transport system has a metro, trains, trams and buses. The dimensions of the territory and Bilbao’s close proximity to major infrastructures make connections and transfers fast and simple. 12 km cruise terminal in 16.6 km Bilbao goods harbour

12 km airport BILBAO 91,000,000 passengers in 2019

Source: Metro Bilbao Source: Metro 1.84% more than the previous year BLOCK 1 PRESENTATION OF BILBAO / BISCAY / BASQUE COUNTRY 26 Bilbao Port

34% Exports

Bilbao Port 66% Imports 200,631 people used Bilbao Port for their trips 123 59 in 2019 ferrys in 2019 cruise ships in 2019

Source: Bilbao Port BLOCK 2 BILBAO AIRPORT 27 THE AIRPORT

Block 2 Bilbao Airport. Bilbao Airport Constant growth in passenger numbers A great infrastructure moving forward with the sector Covid-19: Rules and procedures at Bilbao Airport BLOCK 2 BILBAO AIRPORT 28 Bilbao Airport

This is northern Spain’s main airport, and the Basque Country’s principal external connectivity hub. By year-end 2019 it had handled a total of 5,905,804 passengers, up by 8% and setting an all-time record. Is located only 12 kilometres from Bilbao. 5,905,804 passengers Catchment area in 2019 Up by 8% Santander Donostia-San Sebastián over the previous year Bilbao BIZKAIA

Vitoria-Gasteiz -Iruña ALAVA NAVARRA

Logroño

Burgos 51,591 operations in 2019 Up by 3.3% 34% over the previous year business

Source: Aena. Provisional non audited data 2019 (round trip) BLOCK 2 BILBAO AIRPORT 29

Bilbao Airport Charter

Low cost Traditional Scheduled Flight Airline

Main Destinations

3,356 countries operated only by

624,002 one airline

Pax 2019 (K) Pax 2019 (K) Market share Largest airport in 46.4% Northern Spain 324,787 International Ranked 14th in terms 235,614 712 154,429 of passenger numbers 539 85,992 79,298 82,262 324 241 43,232 39,527 36,945 36,362 Ranked 7th, 33,302 disregarding island 57% 12% 10% 5% 4% airports UK Zurich Dublin Bristol Munich Spain Santiago Brussels

An airport with a Istambul France Frankfurt Barcelona Dusseldorf major business traffic Germany % Manchester 53.6 de Compostela Traffic distribution component (34%) trip) non audited data 2019 (round Source: Aena. Provisional Fuerteventura

Netherlands Domestic BLOCK 2 BILBAO AIRPORT 30 Constant growth in passenger numbers Rising use has been constant, with Annual traffic percentage increases of 8% in evolution 2017 and 10% in 2018, prior to the current record figures.

Highlights 2020 New routes in Pax (K) % Var. 5,871

2020: Rotterdam, 5,469

Lyon, Almeria, 4,974 4,588 4,278

Cagliari, , 4,015 7,6% Athens. 10% 22 8% operating airlines 7% 7%

6%

50 24 trip) non audited data 2019 (round Source: Aena. Provisional destinations countries 2019 2014 2015 2016 2017 2018

Source: Aena. INE. +5000 pax/year CAGR:7.0% BLOCK 2 BILBAO AIRPORT 31 Passengers using Bilbao Airport Residence Travelers nationality 2 Others USA 22 France Spain 44% 31% 25% Biscay region rest of Spain foreign Germany UK 49% 45% 34% 23% 17% 20% 4% 5% 3% VFR other holidays business < 15 49% 51% 75% 25% > 64 15-29 Reason for travelling Reason Gender Nationality Age Source: Aena surveys EMMA 2019 (muestra=2.949) 50-64 men women Spain foreign 30-49 BLOCK 2 BILBAO AIRPORT 32 A great infrastructure moving forward with the sector

AENA is the airport’s manager. It is the world’s largest airport operator by passenger numbers.

terminal security S: 04:45-21:30 building personnel 2 38 1 334 m2 14 7 21 3.761 7 1.544 m2 7 761 m2 PS1 HR 10 MIN PPR runways check-in VIP lounge boarding baggage parking parking offer restaurants shops and W: 05:45-22:30 PS1 HR 10 MIN PPR CAT I/II counters gates reclaim places and cafeterias duty free 6 boarding airbridges BLOCK 2 BILBAO AIRPORT 33 A proactive airport

Aena is committed to Bilbao Airport, which has remained open since the start of the pandemic. It guarantees that the airport will continue to offer its customers the necessary capacity to meet the current demand and after this crisis ends, with the highest standards of safety and quality and focusing on energy efficiency. BLOCK 2 BILBAO AIRPORT 34 New investments

Earmarked for:

• New Technical Block • Expansion of the boarding area • New parking places • Access roundabout to divert heavy vehicles to the industrial area • Replacing the terminal’s signposting • Distribution of the apron adapted to the new plane models • New special luggage carrousel • Upgrading the taxiway beacons. LED technology • Expanding the width of several taxiways • New apron lighting €6M • New DPC (data processing centre) in 2020 • Adapting the hold baggage (EDS) inspection to Standard 3 • PANOMERA flight field recording system to €37M analyse operational safety incidents million committed for • Shear monitoring system with Aemet. 2021 and 2022 • Pilot installation of a bird radar BLOCK 2 BILBAO AIRPORT 35 Standing by the airlines

• New incentive policies. • Promoting new routes events, anniversaries,… • Customised monitors at boarding gates • Second and third boarding pass reader • Airlines participating in weekly briefing • UCA equipment upgraded at check-in and boarding desks BLOCK 2 BILBAO AIRPORT 36 An innovating airport

Bilbao Airport is involved in pilot technological developments Bilbao Airport to improve passenger safety, is involved management and experiences. in pilot • Panomera camera system technological • Bird radar. • Digital loudspeaker system developments. • New APIS features BLOCK 2 BILBAO AIRPORT 37 Covid-19: Rules and procedures at Bilbao Airport

The use of a facemask Only passengers covering the nose and with a boarding pass, mouth is compulsory at companions in justified airport facilities and on cases (unaccompanied the plane. minors or people with disabilities or reduced mobility) may access to airport facilities.

Keep a physical distance Passengers coming of at least 1.5 m from other from abroad must fill people at all times. and show the Passenger Location Card (PLC) or Health Control Form and pass a temperature check.

Keep a safe distance while waiting for your baggage to appear and pick it up on an individual basis. BLOCK 3 CONNECTIVITY AND INCENTIVES 38 CONNECTIVITY

Block 3 Connectivity and incentives. Connectivity strategy Markets and new routes Incentive policies BLOCK 3 CONNECTIVITY AND INCENTIVES 39 Connectivity strategy

Air connectivity is essential to the city of Bilbao and the territory of Biscay to make them competitive as a tourist destination and promote economic development. The connectivity strategy positions General objectives: Euskadi as the • To boost the number of visitors to the Basque Country to drive tourism and the main reference economy. of this activity, • To facilitate the globalisation of Basque as the gateway to businesses to connect them to key cities for the purposes of innovation and global the . economic development. • To offer better connectivity so that passenger experiences bring about a better standard of living and greater demand for air transit services. BLOCK 3 CONNECTIVITY AND INCENTIVES 40 Direct destinations from Bilbao Oslo

Edinburgh

Manchester Dublin Amsterdam Berlin London Dusseldorf Bristol Brussels • Always destinations Frankfurt Prague Paris Munich Stuttgart Zurich Geneva Venecia Bucarest BILBAO Santiago Rome Barcelona Istanbul Menorca Madrid Mallorca Lisbon Ibiza Sevilla Málaga

Lanzarote La Palma Tenerife Fuerteventura

Gran Canaria BLOCK 3 CONNECTIVITY AND INCENTIVES 41 Direct destinations from Bilbao Oslo Stockholm

Edinburgh

Manchester Dublin Amsterdam Berlin London Dusseldorf Bristol Brussels • Always destinations Frankfurt Prague Paris Munich • New destinations in 2018 Vienna Stuttgart Zurich Geneva Milan Venecia Bucarest BILBAO Santiago Vigo Rome Barcelona Istanbul Menorca Madrid Mallorca Valencia Lisbon Alicante Ibiza Sevilla Palermo Jerez Málaga Malta

Lanzarote La Palma Tenerife Fuerteventura

Gran Canaria BLOCK 3 CONNECTIVITY AND INCENTIVES 42 Direct destinations from Bilbao Oslo Stockholm

Edinburgh

Manchester Dublin Amsterdam Berlin London Southend Dusseldorf Bristol Brussels • Always destinations Frankfurt Prague Paris Munich • New destinations in 2018 Vienna Stuttgart • New destinations in 2019 Zurich Geneva Milan Venecia Bucarest

A Coruña BILBAO Florence Santiago Vigo Rome Barcelona Istanbul Porto Menorca Naples Madrid Mallorca Valencia Lisbon Alicante Ibiza Sevilla Palermo Jerez Granada Málaga Malta

Lanzarote La Palma Tenerife Fuerteventura

Gran Canaria BLOCK 3 CONNECTIVITY AND INCENTIVES 43 Direct destinations from Bilbao Oslo Stockholm

Edinburgh

Manchester Dublin Amsterdam Berlin London Southend Rotterdam Dusseldorf Bristol Brussels • Always destinations Frankfurt Prague Paris Munich • New destinations in 2018 Vienna Nantes Stuttgart • New destinations in 2019 Zurich Geneva Lyon • New destinations in 2020* Milan Venecia Bucarest

A Coruña BILBAO Florence Santiago Vigo Rome Barcelona Istanbul Porto Menorca Naples Madrid Mallorca Valencia Cagliari Lisbon Alicante Murcia Ibiza Athens Sevilla Almería Palermo Jerez Granada *Routes already scheduled, to activate Málaga Malta depending on the evolution of the Covid-19 pandemic

Lanzarote La Palma Tenerife Fuerteventura

Gran Canaria BLOCK 3 CONNECTIVITY AND INCENTIVES 44 Mercados y nuevas rutas

New routes Reykjavik • Strasbourg, Marseilles • Liverpool, Belfast, Glasgow, Birmingham Helsinki • Genoa, Bologna, Turin

• Almería Gothenburg Moscow

Billund • Copenhagen and Helsinki, Billund, Glasgow Copenhagen

Gothenburg, Reykjavik Belfast Bremen Liverpool Warsaw • Hannover, Bremen, Cologne Birmingham Hannover Cork • Basel Cologne Cracow • Warsaw, Cracow Strasbourg Basel • Cork Budapest • Moscow Turin Bologna • Budapest BILBAO Genoa Marseilles Sofia • Sofia New York • Tel Aviv • Casablanca • New York

Casablanca Tel Aviv BLOCK 3 CONNECTIVITYCONECTIVIDAD AND E INCENTIVOSINCENTIVES 45 Mercados y nuevas rutas

Routes to be boosted • Madrid • London Oslo • Amsterdam Stockholm • Frankfurt

• Munich Edinburgh • Paris Dublin • Barcelona Amsterdam London • Brussels Brussels Frankfurt • Zurich Paris Munich • Lisbon Zurich • Istanbul Milan • Milan BILBAO

Istambul Barcelona

Madrid Lisbon BLOCK 3 CONNECTIVITY AND INCENTIVES 46 Markets and new routes

MEXICO

At some point in the future consideration could be given to setting up connections to countries in the Americas with traditional links to Euskadi.

CHILE

ARGENTINA BLOCK 3 CONNECTIVITY AND INCENTIVES 47 Incentive policies

Extraordinary Incentive Package to stimulate traffic recovery Summer 2020 – Winter 2020

1. The extraordinary incentive charge for all the operations promotes the recovery of at Aena´s network that the airlines operations in exceed the established levels: relation to their performance • 75% refund of the average at equivalent months in landing charge for the the previous year and operations between Base AENA has created when it surpasses specific and Stretch levels. percentages of traffic an extraordinary recovery. • 100% refund of the average landing charge for the incentive package 2. It will be in force from the operations over Stretch 1st of July 2020 to the 31st . against COVID-19. of March 2021, both months included. 5. The incentive shall be earned monthly but the refunds hall 3. A specific percentage of be made after each Season. recovery of the monthly operations is defined. The 6. This incentive replaces, from incentive is applied starting Winter 2020 Season, the from theses percentages, with current incentive for route to a base and stretch objective. a new destination and traffic growth. 4. The incentive awards each airlin with a refund of their average monthly landing BLOCK 3 CONNECTIVITY AND INCENTIVES 48 Definition of Base and Stretch Levels for the monthly operation compared to the equivalent month of the previous year

Volume recovery 100 2020-2021 Base Strech Reference volume Stretch Reference volume Base July 25% 35% 75 August 30% 40%

September 40% 50% 50 October 50% 60% November 60% 70% 25 December 63% 73% January 65% 75% February 65% 75% 0 March (1) 65% 75% jul-20 jan-21 feb-21 jan-20 jun-20 feb-20 apr-20 oct-20 mar-21 sep-20 dec-20 aug-20 nov-20 mar-20 may-20 (1) For calculation purposes on the month of March2 021, February 2020 shall be considered as the reference month, applying the average daily operation and multi- plying it by 31 days. BLOCK 3 CONNECTIVITY AND INCENTIVES 49 Example of a potential operation (Base 100)

Month Previous year Base Strech Potential Operation A. Between Base and Strech B. > Strech Total July 2020 100 25 35 35 10 0 10 August 2020 100 30 40 35 5 0 5

September 2020 100 40 50 35 0 0 0 October 2020 100 50 60 55 5 0 5 November 2020 100 60 70 75 10 5 15 December 2020 100 65 75 80 10 5 15 January 2021 100 65 75 85 10 10 20 February 2021 100 65 75 85 10 10 20 March 2021 100 65 75 90 10 15 25 Total 9 months 900 465 555 575 70 45 115

100 90 Reference volume Stretch 85 85 80 Reference volume Base 75 75 Potential Operation

50 55 35 35 35 25

0 jul-20 jan-21 feb-21 jan-20 jun-20 feb-20 apr-20 oct-20 mar-21 sep-20 dec-20 aug-20 nov-20 mar-20 may-20 BLOCK 3 CONNECTIVITY AND INCENTIVES 50 Institutional backup

Working closely alongside the airlines, the institutions plan to arrange the following:

1. Co-marketing campaigns to 7. Assistance with local-level publicise the new routes. management with Basque 2. B2B events at destinations to companies and institutions. generate business on the new 8. Technical assistance in routes. feasibility management and rollout of specific 3. Joint communication connectivity projects. campaigns. Airlines and other Incentive trips - famtrips and 9. Basque 4. connectivity players can also institutions presstrips - to showcase the publicise their businesses on potential of the new routes institutions’ websites, social are firmly for influencers, agencies networks and newsletters. and specialised and general behind the communication media. 10. Arrangement of encounters with local press and initiative to set 5. Promotional events in organisation of press up new routes. Bilbao- Biscay to launch the conferences. company’s own campaigns or tourism campaigns for the cities linked. 6. Trade missions to boost business and institutional relations. BASQUE GOVERNMENT