PERSPECTIVE OF LFAON AIRPORT

DEVELOPMENT

Tomasz KulakowskiRyanair’s Sales & Marketing Manager for Central Europe

Gdynia, May 29, 2008

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The World’s Favourite Airline!The World’s Favourite Airline!

Lowest Fares and Lowest Seat Cost in Europe

No. 1 for Traffic 60m

No. 1 for Passenger Growth

No. 1 for Coverage – Routes (660) and Bases (27)

No. 1 for Customer Service delivery

Lowest Price, Highest Punctuality

Fewest cancellations and lost bags

23rd year of strong growth at record profits

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Airline % On Time Bags miss. per1,000 pax

% completions

Ryanair 88 0.5 99.6

Air France 84 17.5 97.6

Alitalia 84 15.6 96.1

Lufthansa 81 15.1 98.4

Easyjet 80 RTP RTP

British Airways

58 28.9 96.1

Europe’s No. 1 for Customer ServiceEurope’s No. 1 for Customer Service

Ryanair, Easyjet and AEA stats Jan – Mar 2008

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Low

High

Europe’s No. 1 for Low FaresEurope’s No. 1 for Low Fares

Average Fare % > Ryanair

Ryanair €44

easyJet €66 +50%

Air Berlin €82 +86%

Aer Lingus €94 +114%

Iberia €150 +240%

Air France €250 +468%

British Airways €277 +529%

Lufthansa €279 +534%

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Ryanair - No. 1 for international passengers

Source: IATA published statistics compared to Ryanair current year forecasted traffic

PAX M

“World’s favourite airline”

10

15

20

25

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45

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SAS EMIR SINGA AA EZY KLM BA AF LUFT RYA

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Ryanair differentiates with a pan-EU brand Ryanair differentiates with a pan-EU brand

27 Bases

660 Routes

163 Aircraft

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Ryanair - the largest LFA in CEERyanair - the largest LFA in CEE

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What do we do to save the costs?What do we do to save the costs?

On board sales of food and drinkOn line accommodation (hotels/hostels)On-line gamblingOn-line insurance (travel/car)On-line car rental (Hertz)On-line airport parking (BCP)On-line bus links (Terravision)Inflight magazine advertisingOn board advertisingOn-line check in feeChecked baggage fee/ check in feesInflight mobile phone use (subj. reg. approval)

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Airports’ role in managing costs.Airports’ role in managing costs.

Not undertaking unnecessary infrastructure investment without the consent of the airline clients. (Cork vs F’furt HHN example)

Good retail offering (more non-aviation than aviation revenue)Lowest possible pax fees for all carriersOperation of simple low cost terminals (e.g. MRS)Operation of volume discount schemes where possible and/or off peak pricingParticipation in joint marketing activitiesProvision of low cost efficient handling where applicable, no bussing, no boarding bridges

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Ryanair’s EfficienciesRyanair’s Efficiencies

Productive, point-to-point & quick turnaround

Efficient aircraft, new, 189 seats, high load factors

High productivity – 10,000 passengers per 1 employee

Low cost, efficient airports

99% Internet sales, ticketless travel

Very strong ancillary sales

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Joint Marketing Activities with AirportsJoint Marketing Activities with Airports

New route launch promotion

Promoting the airport as low cost alternative

Advertising Campaign

Web Campaign on www.ryanair.com:1. Text links from Homepage/Destination page2. Subscriber mail shots3. “Top 5 attractions” on destination pages

Media Promotions

PR Activities (Press trips, new route launches, local media enquiries)

Joint liaison with tourist boards

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Example of airport joint advertising.Example of airport joint advertising.

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Low fares=short breaks=quality tourismLow fares=short breaks=quality tourism

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Economic BenefitsEconomic Benefits

Lower access costs for business and tourism = More people taking short breaksB737-800 / 1 daily flight = 100,000 passengers per year

Attracts Inward InvestmentRegion is now easier to get toMore flight connections to the regionReduces regions seasonal dependence

Local Hotels, Restaurants, Car Hire, entertainment, and other ancillary services benefit from independent travellers

Average passenger spend of €300 1000 passengers = €300,000 in local economy

Job CreationConverts seasonal jobs into permanent jobs1,000,000 passengers = 1000 jobs

Fast development of regional and secondary airports

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Economic Impact of Ryanair Inbound Visitors to Economic Impact of Ryanair Inbound Visitors to ScotlandScotland

Ayrshire Region (PIK airport): Scottish Enterprise Ayrshire Report, 2003

20 routes to PIK, 2.5M pax pa

On average, Ryanair pax spends £215 per trip

Additional employment of 620 – 720 FTE jobs

£18.4m expenditure in Ayrshire

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CarcassonneChamber of Commerce Report, December 2003

2 routes (STN, CRL): 253,000 pax in 200374.1% pax are UK and Belgian citizens71% pax would not travel to Carcassonne in case of lack of low fares93% pax spent the whole trip in the region3.6% pax interested in buying property in the region€8.4 M pa direct expenditure in the region€135 M pa indirect benefits, incl. tourists’ expenditures and property investments

Ryanair – regional development, further examples

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HahnRegional Economic Impacts of the Airport Frankfurt-Hahn for the Period 2003-2015 (Prof. Dr. Kai Heuer, Prof. Dr. Richard Klophaus, Prof. Dr. Thorsten Schaper), February 2005

2.5mln pax in 2003

522,000 tourists

1.8M days spent by tourists in the region

More than 8,000 jobs

€145.4 M investments by the airport and companies

located in the area

Almost €1billion additional revenue in the economy

€47.1 M additional taxes

Ryanair – regional development, further examples

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Köln Bonn (other LFA)IfV Universität Köln, 2004

LFA presence effect in 2002 : €91 M taxes€147.6 M savings and additional efficiency of the companies from the region€285.42 – average pax spend in the region

Pisa, Skavsta, Charleroi, Limoges, Strasbourg, Girona, ..... And many, many more…

Ryanair – regional development, further examples

THANK YOU