STRATEGIC PLAN 2018 2019 - Barcelona Leading the New Long Haul

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STRATEGIC PLAN 2018 2019 - Barcelona Leading the New Long Haul
Barcelona Leading the New Long Haul
STRATEGIC PLAN 2018 – 2019

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STRATEGIC PLAN 2018 2019 - Barcelona Leading the New Long Haul
Why is intercontinental traffic key for us?

  The growth of the airport is a historic success, it has made us a reference as a European airport
  and is now beginning to do so in intercontinental terms. Meanwhile, at the level of global cities,
    the metropolitan area and its territory are a global focus for its economy, innovation, culture,
            dynamism, lifestyle, and business activity. These two facts feed each other.

    The airport is a tool at the service of the people who live in or       We still have very
   visit the city and is the true gateway to the world. To maintain        important unserved
  the dynamism of our region/city, it is essential to maintain the
  connection with the most important intercontinental centers in
                                                                              destinations
                                the world.

                                                                          We must ensure quality
The airport infrastructure is the gateway to a new phase of               growth in connections,
physical and multimodal transformation. In this new phase, it is          both seasonally and in
imperative that growth is carried out in a sustainable way, with               the number of
quality routes focused on the destinations and operators that             frequencies per week;
provide more added value to the territory. Intercontinental flights          and, if the market
are a cornerstone of maximum added value and priority.                      allows us, with new
                                                                          operators on the same
                                                                                   routes.

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STRATEGIC PLAN 2018 2019 - Barcelona Leading the New Long Haul
 What is the overall economic impact of the Airport?

  An increase of 10% in connectivity and number of frequencies is              More than 125,000 jobs *
    accompanied by an increase of 0.5% in the GDP of the region               and over €7,600 m * of the
    (ACI Europe, 2015). In Catalonia, this implies an approximate              Catalan GDP are linked to
  increase of € 1,000 M in the Catalan GDP for each 10% increase                  Barcelona Airport. The
                in connectivity at Barcelona Airport.                                synergies of this
                                                                               infrastructure with nearby
                                                                             logistic hubs, the accessibility
      Connections created between cities and markets represent an             of the city as a business and
   important asset that generates benefits for the territory, facilitating
                                                                                  tourism center, and its
        communication, foreign direct investment, business groups,
   specialization, and other indirect impacts on the productive capacity
                                                                              connection with Europe and
     of an economy; in addition to Tourism and the economic activity             the world are intimately
          deriving from it (Cubela i Costa, 2013; Intervistas, 2014).          linked to Barcelona-El Prat
                                                                               Airport. This relationship is
                                                                                 growing over time, as it
                                        A 10% increase in the number of       represents the link between
  Air transport is the only mode of
                                          intercontinental direct flights       Barcelona and the global
       transport that allows the
                                         results in a 4% increase in the            economy. (Airport
      efficient exchange of tacit
                                               location of business             Development in the Delta
  knowledge at a global level (Shin
                                         headquarters (Bel and Fageda,          Plan, BCN City Hall, 2016)
        and Timberlake, 2000).
                                                      2008).

                                                                             * Includes direct, indirect, induced and catalytic impact

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STRATEGIC PLAN 2018 2019 - Barcelona Leading the New Long Haul
BARDC Strategic Plan 2018 - 2019

        Achievements 2005-2017

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

                                              2015 -   2,06   million

                                                                                            2015

                                                                                          234   frequencies

                                              2015 -   5,61    million

     BCN intercontinental seats (one way)

                           0,55     million   2015 –   2,39    million

                                                          3,17           million

                                                         2015 –   34       destinations

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 Introduction and objectives achieved (2005-2017)

                                      Intercontinental destinations of BCN 2015

                                                                                                 New York
                                                                                                 Atlanta
                                                                                                 Cairo
                                                                                                 Algiers
                                                                                                 Casablanca
                                                                                                 Tunisia
                                                                                          2005   Tel Aviv
                                                                                                 Amman
                                                                                                 Buenos Aires
                                                                                                 Philadelphia
                                                                                                 Oran
                                                                                                 Marrakesh
                                                                                                 Singapore
                                                                                                 Toronto
                                                                                                 Doha
                                                                                                 Bogotá
                                                                                                 Tangier
                                                                                                 Montreal
                                                                                                 Miami
                                                                                                 Charlotte
                                                                                                 Beijing
                                                                                          2015   Sao Paulo
                                                                                                 Dubai
                                                                                                 Beirut
                                                                                                 Baku
                                                                                                 Djerba
                                                                                                 Rabat
                                                                                                 Nador
                                                                                                 Fez
                                                                                                 Accra
                                                                                                 Sal
                                                                                                 Dakar
                                                                                                 Banjul
                                                                                                 Constantine
    2010-2015 Boom of the African and American market. Consolidation of the Middle East

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 Introduction and objectives achieved (2005-2017)

                         Intercontinental destinations in BCN 2016 & 2017

                                                                              2016
                                                                              2017

                                                                             Los Angeles
                                                                            San Francisco
                                                                                Boston
                                                                                Chicago
                                                                                 Seoul
                                                                               Shanghai
                                                                                Havana
                                                                             Hong Kong
                                                                                Tehran
                                                                             Washington
                                                                                  Sal
                                                                             Punta Cana
                                                                             Constantine
                                                                                 Lima
                                                                                Lahore
                                                                              Islamabad
    2010-2017   Boom of the Asian and American market. LHLC

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 2016 and 2017: Two years of success

                                                                                 Long-haul Low Fare:
                                                                                 Norwegian and Level
                                                                                  have successfully
                                                                                    committed to
                                                                                      Barcelona

                     Direct
               intercontinental
                traffic grew by
              18.7% and reached
              4.5 million indirect         16 new
              passengers (2017).      intercontinental
                                       routes in 2017.
                                      Quality was also
                                       reinforced with
                      4 new          more frequencies in   Air cargo increased
                intercontinental        many routes.        units by 14.9% in
                 routes in 2016.                            2017. Thus BCN is
                Supply was also                            now located in the               Barcelona was
              increased for short                          TOP 20 of Air Cargo             the host city for
               and medium haul                                   airports                 the World Routes
                     routes.                                                                Development
                                                                                            Forum in 2017

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                                                      40
                                                                                        50
                                                                                                     60
                                                                                                                                 70
                                                                                                                                                              80
                                                                                                                                                                              90
                                                                                                                                                                                                       100

                                   0
                   LONDON (LON)
                NEW YORK (NYC)
                      TOKYO (TYO)
                SHANGHAI (SHA)
                        PARIS (PAR)
                  BANGKOK (BKK)
                       BEIJING (BJS)
                        SEOUL (SEL)
             LOS ANGELES (LAX)
                     JAKARTA (JKT)
                   ISTANBUL (IST)
               MOSCOW (MOW)
                       DUBAI (DXB)
          SAN FRANCISCO (SFO)
             HONG KONG (HKG)
                SINGAPORE (SIN)
          KUALA LUMPUR (KUL)
             GUANGZHOU (CAN)
                   CHICAGO (CHI)
           WASHINGTON (WAS)
               SAO PAULO (SAO)
                   MANILA (MNL)
                       MILAN (MIL)
              BARCELONA (BCN)
                                                                                                                                                                                                                                                                                                       Perspectives of global air traffic

            AMSTERDAM (AMS)
                        TAIPEI (TPE)
                 ORLANDO (ORL)
                 CHENGDU (CTU)
                 TORONTO (YTO)
                      OSAKA (OSA)
               FRANKFURT (FRA)
                                                                                                                                                                          (Pax Data SABRE 2017)

                      ROME (ROM)
                 SHENZHEN (SZX)
                KUNMING (KMG)
                  MADRID (MAD)
                   ATLANTA (ATL)
                                                                                                                                                                   DIRECT AND INDIRECT TOTAL TRAFFIC

                 LAS VEGAS (LAS)
                    BOSTON (BOS)
           MANCHESTER (MAN)
                         XI AN (SIA)
                      MIAMI (MIA)
                                                                                             40% of traffic generation (PAX).

                                                      BCN occupies the 24th position.

     DALLAS FORT WORTH (DFW)
                      JEDDAH (JED)
                                                                                                                                         Tràfic total (PAX)

        HO CHI MINH CITY (SGN)
                    DENVER (DEN)
             MEXICO CITY (MEX)
                       BERLIN (BER)
              CHONGQING (CKG)
                  MUNICH (MUC)
              HANGZHOU (HGH)
                                                                                             1% of cities around the world account for

                    SEATTLE (SEA)
                                                                                                                                                                                                               intracontinental and intercontinental level. Barcelona occupies a relevant position.
                                                                                                                                                                                                              Large metropolises generate a large amount of passenger O&D traffic at the

9
 Traffic at Barcelona-El Prat: Destination Rankings
 Highlights Barcelona-El Prat
                                                                            RANKING TOTAL DESTINATIONS
-   47M passengers                                                          #European #Intercontinental   #Total       Var
                                                            Rank Airport
                                                                           Destinations  Destinations   Destinations (17/14)
-   Airport # 5 in Europe in number of European routes
                                                             1    FRA          155           155            310         22
-   Short-haul flights operated by low-fare airlines         2    CDG          137           157            294         11
                                                             3    AMS          164           105            269          4
-   Main operators: Vueling, Ryanair, EasyJet, Norwegian,    4    MUC          175            84            259         26
                                                             5    LGW          148            66            214         20
    and European network companies.                          6    MAD          134            75            209         20
-   In air cargo, 157000 exceeded and BCN enters the top     7    BCN          163            45            208         -9
                                                             8    DME          148            57            205        -29
    20 European airports.                                    9    LHR          102           102            204         26

 Intercontinental                                                         RANKING EUROPEAN DESTINATIONS
                                                                            #European #Intercontinental   #Total       Var
                                                            Rank Airport
-   Growing service: 7.2M pax: 15% of airport traffic                      Destinations  Destinations   Destinations (17/14)
                                                             1    MUC          175            84            259         13
-   Airport # 19 in Europe in terms of intercontinental      2    STN          173            15            188         22
    routes                                                   3    PMI          165             5            170         -1
                                                             4    AMS          164           105            269          4
-   Low fare Long Haul: Norwegian (NAS) and Level            5    BCN          163            45            208        -19
                                                             6    FRA          155           155            310         14
-   2.6M direct (37%), 4.5M indirect coverage                7    VIE          150            48            198         23
-   Business 7.2% relatively good.                                   RANKING INTERCONTINENTAL DESTINATIONS

 Difficulties                                              Rank Airport
                                                                            #European #Intercontinental
                                                                           Destinations  Destinations
                                                                                                          #Total       Var
                                                                                                        Destinations (17/14)
-   Seasonality: growth continues to be concentrated         1     CDG         137           157            294         7
                                                             2     FRA         155           155            310         8
    mainly in the summer. This is an opportunity for
                                                             ….

    improvement.                                             17   ORY         100             48               148         -6
                                                             18   CPH         138             47               185         11
-   Missing European business (2.5%)                         19   BCN         163             45               208         10
                                                             20   CGN         109             44               153         17
-   Lack of connection traffic (10%).                        21   HEL         112             37               149         11
                                                                                                   Data Source: Innovata
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 Target routes 2018-2019
      BARDC Strategic Destinations
                                                       BCN O&D MAIN MARKETS 2017
      CITY                  AIRPORT      DIRECT    INDIRECT   TOTAL 2017 CAGR (17/13) VAR (17/16)   % PREMIUM            POTENTIAL AIRLINES
      Tokyo                NRT+HND                 181,902     181,902        4%          70%          5%                        ANA, JAL
      Mexico                 MEX                   88,552      88,552        10%          18%         10%                      Aeromexico
      Bangkok                BKK                   75,904      75,904         9%           4%          7%                 Eva Air, Thai Airways
      Santiago de Chile      SCL                   68,549      68,549        14%          22%          8%                           LAN
      Delhi                  DEL                   65,171      65,171         4%          10%          7%                 Air India, Jet Airways
      New York                JFK        285,916   146,542     432,458       11%          76%          6%                  Norwegian, JetBlue
      Buenos Aires           EZE         124,943   124,503     249,446       13%          25%          7%        Aerolíneas Argentinas, Norwegian, LAN
      Seoul                  ICN         50,554    192,113     242,667       28%          30%          6%                  Korean Air, Asiana
      Los Angeles            LAX         53,804    113,757     167,561       19%          54%          8%                       Norwegian
      San Francisco          SFO         58,569    91,395      149,964       22%          66%          9%                       Norwegian
      Shanghai               PVG         21,428    108,769     130,197        9%          41%          8%                        Air China
      Miami                  MIA         65,277    59,355      124,632       12%          24%         12%            American Airlines, Norwegian
      Sao Paulo              GRU         36,617    51,081      87,698         1%         -17%         14%                       Norwegian
      Bogotá                 BOG         44,004    40,326      84,330        10%          13%          9%                          Level
      Lima                   LIM         26,630    54,409      81,039         8%          22%          4%                          Level
      Havana                 HAV          9,959    69,515      79,474        26%          21%          3%                   Level, Norwegian
      Boston                 BOS                   77,663      77,663        13%          28%         10%                       Norwegian
      Chicago                ORD         25,114    51,300      76,414        15%          22%         12%         American Airlines, United, Norwegian
      Beijing                PEK                   76,068      76,068        14%          18%          8%                   Air China, Hainan
      Hong Kong              HKG          9,321    59,161      68,482        12%          19%         14%           Cathay Pacific, Shenzhen Airlines
      Guayaquil              GYE                   55,707      55,707         4%          34%          2%                          Level
      Singapore              SIN         10,655    44,313      54,968        -3%           2%         16%                  Singapore Airlines
      Santo Domingo          SDQ                   53,477      53,477         9%           3%          3%                   Level, Norwegian
      Osaka                   KIX                  51,227      51,227        -2%           3%          8%                        ANA, JAL
      Dallas + Houston     DFW+IAH                 51,208      51,208        10%           7%         16%                       Norwegian
      Manila                 MNL                   47,100      47,100         7%           5%          6%                  Philippines Airlines
      Montevideo             MVD                   46,026      46,026        14%          14%          3%             Level, Aerolíneas Argentinas
      Data source: Sabre, CAPA, CDRA

      #CITY                 CATEGORY 1                                                               14%    Premium > 8%
      #CITY                 CATEGORY 2                                                               9%     4% < Premium < 8%
                                                                                                     6%     Premium < 4%

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New Objetive 2018/19
                                                            Creation of long-haul
                             Facilitate and promote         links to new strategic
                              local development of          destinations.
                               the industrial sector,
                                   air transport, and
                                      travel services.

                                                                               Loyalty actions for
                                                                               companies that already
              Boost air cargo in                                               operate long-haul routes
                 Barcelona.                                                    in Barcelona in order to
                                              7 BARDC                          maintain or increase their
                                                                               activity or attract new
                                                                               operators.
                                             objectives
                                             A single window
                                                                        Facilitate the
                 Promote synergies                                      establishment of
                 with other large                                       new long-haul links
                 infrastructures                                        or frequencies
                 nearby (Port of                                        (bilateral
                 Barcelona, ZAL, road                                   agreements, border
                 and rail                                               problems, visas,
                 infrastructure ...)                                    etc.).
                                                 Improvement of
                                                  connectivity in
                                                    Barcelona.

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 Lines of action: BARDC Fundamental Objectives

 FUNDAMENTAL                      LINES OF ACTION
 OBJECTIVES
 I. CREATION OF LONG-HAUL LINKS    VIABLE ROUTES not yet served, such as: Tokyo, Mexico, Santiago de
 TO STRATEGIC DESTINATIONS
                                    Chile, Delhi, Dallas/Houston, and Manila

                                   Leaders in the new Long Haul: Norwegian and Level. They are
                                    especially key to developing new routes and it is important to keep
                                    track of their evolution in Barcelona.

  II. DEVELOPMENT OF LOYALTY
  ACTIONS FOR LONG-HAUL            Keeping in touch with airlines to achieve better quality long-haul
  COMPANIES
                                    routes: greater frequencies, avoid seasonality, extend the summer
                                    season, help develop the demand for business trips ... (Boston,
                                    California , Beijing, Shanghai ...)

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 Lines of action: BARDC Fundamental Objectives

 FUNDAMENTAL                         LINES OF ACTION
 OBJECTIVES
 III. FACILITATE THE ESTABLISHMENT    Maintain permanent contact with Spanish Civil Aviation and with
 OF NEW LINKS OR FREQUENCIES OF
 LONG-HAUL TRAVEL                      other civilian administrations/civil aviation authorities. Topics to be
                                       treated:
                                      Bilateral agreements:
                                      Support for long-haul airlines: Norwegian and Level
                                      Facilitation of the fifth freedom

 IV. IMPROVEMENT OF
 CONNECTIVITY IN BARCELONA            Establishment of strategies and products in order to facilitate the
                                       connectivity of Barcelona airport, in projects such as:
                                           Support for Vueling: alliances and interline agreements.
                                           Encourage a close alliance between Level and Vueling in order to
                                            generate connection traffic.
                                           Follow-up of cross selling agreements between Ryanair and Air Europa,
                                            Norwegian and EasyJet ...
                                           Monitor the phenomenon of self-connection.
                                           Encourage technological and innovative solutions of the sector to
                                            facilitate the development of intermodal and transit traffic in the airport
                                            environment (App in the Air, Dohop, ABB, etc.).

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 Lines of action: BARDC Fundamental Objectives

 FUNDAMENTAL                       LINES OF ACTION
 OBJECTIVES
 V. PROMOTE SYNERGIES WITH OTHER
 LARGE INFRASTRUCTURES NEAR THE     New multimodal accessibility plan: arrival of the train to T1,
 AIRPORT
                                     improvements to the metro, long distance train station of El Prat.
                                   - Track the execution of investments
                                   - Strengthen ties with multimodal operators (Renfe/Metro/Others)

                                    Work with the Port of Barcelona for the development of routes with
                                     demand for intercontinental cruises.

 VI. AIR CARGO
                                    Development and implementation of a specific plan for air cargo at
                                     Barcelona airport
                                         Collaborate with Barcelona - Catalonia Logistics Center (BCL) through
                                          the Barcelona Air Freight Community.
                                         Be present in a specialized international fair on cargo.

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 Lines of action: BARDC Fundamental Objectives

 FUNDAMENTAL                       LINES OF ACTION
 OBJECTIVES
 VII. FACILITATE AND PROMOTE THE
 DEVELOPMENT OF THE INDUSTRIAL      Promote the establishment of corporate head offices or corporate
 SECTOR AND AIR TRANSPORT AND
 TRAVEL SERVICES                     functions in Barcelona.

                                    Facilitate and structure the new economic ecosystem linked to air
                                     transport (airlines, tourism companies, leisure, transport
                                     operators ...)

                                    Consolidate the BARDC as a single window in relation to the
                                   airline industry and related suppliers
 BARDC AS A SINGLE
                                         Continue working with the Catalan Tourism Agency, ACCIÓ, and
 WINDOW                                   Barcelona Tourism to promote and coordinate actions.

                                         Advance and formalize agreements for institutional cooperation to
                                          raise more promotional resources out of the BARDC budget.

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