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yearbook 07Adria Airways

Aer Lingus

Air France

Air Malta

Air One

Alitalia

Austrian

bmi

British Airways

Brussels Airlines

Cargolux

Croatia Airlines

CSA

Cyprus Airways

Finnair

Iberia

Icelandair

Jat Airways

KLM

LOT

Lufthansa

Luxair

Malev

Olympic Airlines

SAS Scandinavian Airlines

Spanair

SWISS

TAP Portugal

TAROM

Turkish Airlines

Virgin Atlantic Airways

A S S O C I A T I O N O F E U R O P E A N A I R L I N E S

DisclaimerAny views or opinions presented in this Yearbook are solely those of the Association of European Airlines and do not necessarily represent those of individual member airlines.

© Association of European Airlines, June 2007

A S S O C I AT I O N O F E U R O P E A N A I R L I N E S

AEAFast Facts

Member Airlines . . . . . . . . . . . . . . . . . 31

Billion € turnover . . . . . . . . . . . . . . . . 75

Million passengers carried . . . . . . . . 343

Million tonnes of cargo carried . . . . . . 6

Destinations served . . . . . . . . . . . . . 605

Countries served . . . . . . . . . . . . . . . 161

Flights every day . . . . . . . . . . . . . 11,030

Aircraft in fl eet . . . . . . . . . . . . . . . . 2,540

Employees . . . . . . . . . . . . . . . . . 375,000

TABLE OF CONTENTS - ASSOCIATION OF EUROPEAN AIRLINES 1


Table of Contents

3

5

15

17

27

64

Chairman’s Welcome

Operations & Economics

2006 at a Glance

The Global Economic Environment

Traffi c and Capacity

Operating Results

Developments in the ‘No-Frills’ Sector

The Enviro.aero Initiative

Issues

Emissions Containment - and Emissions Trading

EU-US - Agreement at last?

The Airline-Airport Relationship

Security in an Insecure World

Progress Towards the Single Sky

Cargo - A Crucial Part of the Business

Spotlight on AEA

About AEA

Airline profi les

Key Statistics

Glossary

Adria Airways

Aer Lingus

Air France

Air Malta

Air One

Alitalia

Austrian

bmi

British Airways

Brussels Airlines

Cargolux

Croatia Airlines

CSA

Cyprus Airways

Finnair

Iberia

Icelandair

Jat Airways

KLM

LOT

Lufthansa

Luxair

Malev

Olympic Airlines


Spanair

SWISS

TAP Portugal

TAROM

Turkish Airlines


CHAIRMAN’S WELCOME - ASSOCIATION OF EUROPEAN AIRLINES 3

F E R N A N D O C O N T E | A E A C H A I R M A N 2 0 0 7

Chairman’s Welcome

Dear reader of the AEA Yearbook,

In inviting you to browse this latest edition of the AEA Yearbook, I invite you also to refl ect on the way it is structured. In the fi rst section, you will read that demand for our product has grown faster than supply, we have also halted the decline in unit revenues, and consequently we can report the best consolidated fi nancial result for many years.

In the second section, however, it is clear that all the challenges identifi ed three years ago in the AEA Action Plan remain. The Environment – External Aviation Relations – Airports – Air Traf-fi c Control – Safety and Security; all these issues have come a long way since 2004, when the Action Plan was launched, yet all remain as challenging as ever.

Of these, the greatest challenge is posed by the way environmental con-cerns will shape the industry’s future. Moves are in train to incorporate avia-tion into the EU Emissions Trading Scheme, something which has the potential, at best, to allow the industry to manage its growth in an emissions-effective way, but at worst to wipe out the bulk of the industry’s profi ts, and consequently the ability to invest in new and greener technologies.

At the same time, civil aviation is con-tinually targeted with ill-informed and increasingly extreme criticism of its environmental performance. Regular readers of the Yearbook over the last ten years will be aware of how serious-ly the industry takes its responsibilities, yet we are very often characterised as being ‘in denial’. Nothing could be fur-ther from the truth. I’m very pleased to welcome a new industry initiative, man-ifested in the website www.enviro.aero, which is aimed at setting the record straight by providing a wealth of facts, viewpoints and case studies illustrating the true scale of the industry’s contri-bution to climate change, and what it is doing about it.

On many of the other important in-dustry issues we are also facing a tip-ping point. The Single European Sky remains a paper project, albeit a very well documented one, but the need to begin realising its environmental ben-efi ts makes it imperative that words are turned into actions without further delay. Similarly, long-overdue legisla-tion concerning the airline-airport rela-tionship has travelled a long way down the drafting process, but good, robust regulatory texts need to be fi nalised – and implemented.

The EU-US agreement has been signed, and we shall shortly begin to see airlines taking advantage of the new market opportunities that it of-fers. However it did not go as far as European airlines might have wished, and Stage 2 of the agreement is not only legislated for, but deadlines are in place and we must already begin to prepare its content.

These and other topics are dealt with in depth in this AEA Yearbook. The extent to which we resolve today’s challenges will shape the future of our industry. I hope that you, dear readers, will follow these narratives with interest through this and future issues of the Yearbook.

Fernando ConteChairman and CEO

IberiaAEA Chairman 2007

For further information contact Nick Salter at [email protected] or find out moreat www.oagdata.com

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OPERATIONS & ECONOMICS - ASSOCIATION OF EUROPEAN AIRLINES 5


2006 at a Glance



Operating Results


Operations & Economics

Adria Airways

Aer Lingus

Air France

Air Malta

Air One

Alitalia

Austrian

bmi

British Airways

Brussels Airlines

Cargolux

Croatia Airlines

CSA

Cyprus Airways

Finnair

Iberia

I l d i

ASSOCIATION OF EUROPEAN AIRLINES6

Ê Traffi c continues to growPassenger traffi c for the most part fol-lowed established trends, with good growth in Europe and much lower in-creases on the North Atlantic.

The Far Eastern market, booming for so long, experienced a clear slowdown of growth towards the end of 2006.

Ê Load factors – is this the all-time high?

Passenger load factors improved for the third consecutive year, to 76.5%, a level unimaginable when the 70% bar-rier was reached ten years previously.

2007 has begun with still further im-provement, but not sustained into early Summer. Has the limit fi nally been reached?

Ê Profi tability – still inadequate, but starting to build

AEA airlines collectively recorded an operating surplus of € 2.6 billion, con-tinuing the steady upward progression of the previous two years.

Nevertheless, an operating margin of just 3.5% is less than half what the in-dustry needs to be genuinely sustain-able.

2006 at a glance

-15

-10

-5

0

5

10

15

20RPK%

Traffi c

55

65

75

85%

AEA Passenger Load Factors Moving 12-month average

-4

-2

0

2

4

6

8

10Operating margins %

Profi tability

Cross-border Europe

North Atlantic

Domestic

Far East

2000 2001 2002 2003 2004 2005 2006

Long Haul

Short/Medium Haul

2000 2001 2002 2003 2004 2005 2006

target

94 95 96 97 98 99 00 01 02 03 04 05 06 07

Source: AEA

Source: AEA

Source: AEA

OPERATIONS & ECONOMICS 7

0

2

4

6

8

10

12GDP%

EU27 Economic Growth 2005 - 2006


World economies grew strongly in 2006, with all regions performing well. The overall fi gure was a plus 5.1%, a magnitude comparable to the two pre-vious years. The increase was under-pinned by exceptionally strong growth in the emerging and developing mar-kets; China, India and Russia regis-tered growth of 10%, 8.3% and 6.5% respectively.

Much lower, but nonetheless strong, growth rates were recorded in the EU and the US, as well as in Japan. The US economy had an uneven ride, start-ing and fi nishing the year on a high but with a deceleration in the middle two quarters, to post an annual fi gure of 3.4%.

For the EU, the 2006 growth of 2.8% was the highest this century and 1.0 points higher than in 2005. The im-provement was largely thanks to ro-bust performance in the three largest economies, with plus 2.7% in both Germany and the UK and +2.2% in France. The German fi gure in particu-lar was a spectacular increase over the 0.9% recorded in the previous year.

Generally high levels of growth were posted by the economies of Eastern Europe, continuing along an economic catch-up trajectory. Latvia and Estonia enjoyed double-digit growth while Bul-garia and Romania recorded strong in-creases in advance of their accession to the EU. An increase of almost 6% saw Poland move above Austria as the EU’s 9th largest economy.

A variety of indicators pointed to a broad-based economic recovery in Europe. Investment levels continued to strengthen, while private consumption, depressed in recent years, showed a signifi cant increase in 2006. Employ-ment levels were higher and interest rates remained low, while high oil prices failed to make an impression on overall infl ation, which remained at 2.3%.

The Euro remains strong against the Dollar, having ended 2006 11% up compared to a year earlier, and hav-ing appreciated further in early 2007. In terms of currency in circulation, the Euro overtook the Dollar during the course of 2006. The strength of the Euro has negative implications for trade, given that the European econ-omy is predominantly export-led, al-though no detrimental effect is evident so far. OECD, however, has warned that complacency in the current favour-able climate should be avoided, and in particular the Maastricht convergence criteria should be more rigorously ob-served to maintain the stability of the monetary union.

Looking ahead, the consensus view is that 2007 will see the peak of the current economic cycle, and world-wide growth will soften somewhat. The process should be a controlled one, the greatest threats being infl ationary pressures and unresolved global im-balances, such as the large and grow-ing US defi cit. Led by China and India, the global economy should still grow at close to 5%.

In Europe, business confi dence re-mains high. With most countries fore-seen to maintain growth rates close to 2006 levels, GDP could increase by 2.4% in both 2007 and 2008.

World Economic GDP Growth (constant prices, % change)

2005

2006

Source: IMF

2000 2001 2002 2003 2004 2005 2006 2007

World 4.9 % 2.6 % 3.1 % 4.1 % 5.3 % 4.9 % 5.1 % 4.9 %

EU 3.9 % 2.0 % 1.3 % 1.4 % 2.4 % 1.8 % 2.8 % 2.4 %

USA 3.7 % 0.8 % 1.6 % 2.5 % 3.9 % 3.2 % 3.4 % 2.9 %

Japan 2.9 % 0.4 % 0.1 % 1.8 % 2.3 % 2.6 % 2.7 % 2.1 %

Source: Eurostat

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Italy

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enPo

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Aus

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Den

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Finl

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Portu

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Cze

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Rom

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Hun

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AEA members boarded 343.4 million passengers in 2006, an increase of 14.4 million over the previous year’s total. In passenger-kilometre terms, this represented an annual growth of 5.4%.

For a year in which no signifi cant ex-ternal events affected traffi c, this was a historically low fi gure. However, this was at least partly a result of capac-ity restraint on the part of the airlines, who added just 4.5% to seat-kms dur-ing the year, following a 4.6% increase in 2005. Consequently, load factors again reached record levels.

Individual regions displayed differenti-ated but consistent trends. The North Atlantic was the weakest of the major fl ows with just 0.7% of traffi c increase. The strongest was Far East/Australasia which recorded a plus 9.8%, although growth was weakening throughout the second half of the year before level-ling-out at about 5%.

Traffi c on the South Atlantic is in an extended boom period which can be traced back to late 2003. The 2006 growth fi gure was 12.8%, fuelled by strong economic performance in the region, while the AEA airlines’ traffi c will have been boosted by the suspension of service by Brazilian national carrier Varig, which formerly had a substantial share in the large Brazil-Europe market.

Middle Eastern traffi c grew 6.9% having suffered in mid-year from the closure of Lebanese airports during the confl ict period. By year-end, however, strong growth had returned and double-digit increases have carried through into 2007.

At the global level, the AEA passenger growth occurred mainly in the economy cabin, with a 4.6% increase compared with +2.1% in fi rst and business. Pre-mium traffi c accounted for 9.6% of the total, compared with 16% as recently as 2001.

While premium traffi c grew more slowly

than economy in Europe, this was not the case on the North Atlantic, where the high yield segment increased 4.9% against a 0.2% decrease in economy travel – following a similar disparity in 2005.

Ê Strong growth in Europe

Within Europe, the cross-border mar-ket remained buoyant with a plus 7.1% in passenger-km and plus 6.1% in passenger boardings. Several ma-jor country origin/destination markets exceeded this fi gure, Germany with 7.5%, Spain 7.3% and Italy 6.9%. An exception was the UK with just a 0.6% increase, while France was slightly be-low average at 4.0%

Of the countries represented by AEA member airlines, strongest growth – 17.1% – was in traffi c to/from Roma-nia, followed by Slovenia, Serbia and Turkey, all in double digits. Just below this level, between 9%-10%, were the sizable markets of Switzerland, Den-mark and Austria.

AEA members’ traffi c to/from Russia increased by 14.1% to 3.75 million passengers.


AEA’s major long-haul markets arriving and departing passengers

0

5

10

15

20

25RPK%

AEA passenger traffi c growth rates (12-month moving average)

2005

-01

2005

-02

2005

-03

2005

-04

2005

-05

2005

-06

2005

-07

2005

-08

2005

-09

2005

-10

2005

-11

2005

-12

2006

-01

2006

-02

2006

-03

2006

-04

2006

-05

2006

-06

2006

-07

2006

-08

2006

-09

2006

-10

2006

-11

2006

-12

2007

-01

2007

-02

2007

-03

2007

-04

2006 2005 %

United States 23,015,887 22,864,927 + 0.7

India 3,657,061 2,758,597 + 32.6

Japan 3,326,773 3,227,680 + 3.1

Canada 3,219,220 3,217,097 + 0.1

China 3,152,675 2,852,517 + 10.5

Brazil 2,792,735 2,281,971 + 22.4

South Africa 2,250,262 2,132,656 + 5.5

Far East

Cross-Border Europe

North Atlantic

12 Months toSource: AEA

Source: AEA


AEA intra-european passengers Traffi c growth, 2006 over 2005

Ê India leads the Asian boom

While AEA members’ India and China traffi c had grown in 2005 at near-identi-cal rates of over 20%, in 2006 India ac-celerated still further, to a remarkable plus 32.6%, while the growth in traffi c to/from China moderated to 10.5%.

A consequence was that India, with 3.66m passengers, overtook Japan (3.33m), Canada (3.22m) and China (3.15m) to become AEA’s second-larg-est long-haul market, after the USA.

Ê Still higher load factors

The Middle East and the North Atlan-tic were the only AEA route groups to experience a downturn in load factors in 2006. Overall, occupancy increased by 0.6pt to 76.5% with all long-haul re-gions except Africa recording 80% or better.

On European cross-border services, load factor improved strongly to 69.3%, and further improvement in early 2007 holds out the possibility of an eventual 70% outcome, which would have been unthinkable even a few years ago – in-deed, the 65% barrier was breached for the fi rst time as recently as 2004.

Ê Outlook for 2007

The growth patterns established in 2006 have continued into the early months of 2007 although some signs of weakening have appeared in late April and May. These may translate into a realignment of the trend lines but for the time being the outlook is for an increase by year-end of about 8%

on short-haul and 5% on long-haul, amounting to an overall growth of about 5.5%.

In the fi rst four months of 2007, load factors continued to improve over pre-vious year, albeit marginally. This, too was a trend which was weakening into April and May, and it remains to be seen whether an improvement can be sustained through the Summer.

AEA members boarded 343.4 million passengers in 2006,

an increase of 14.4 million over the previous year’s total.

Germany+7.5

UK+0.6%

France+4.0%

Italy+6.9%

Spain+7.3%

Switzerland+9.9%

Denmark+9.3

Austria+9.1%

Ireland+7.6%

Turkey+11.8%Greece

+4.4%

Finland+9.3%

Poland+6.4%

Czech Rep.+0.5%

Slovenia+16.3%

Portugal+4.2%

Croatia+1.9%

Serbia+12.8%

Hungary+6.8%

Romania+17.1%

Cyprus-1.4%

Malta+7.9%

Sweden+8.1%

Norway+7.3%

Iceland+8.8%

Belgium+5.3%

Netherlands+5.4%

Luxembourg+2.6%

Source: AEA


Operating Results

AEA’s consolidated operating results will henceforward be reported some-what differently, in that fi gures will be presented in Euros rather than in US dollars. Additionally, results will be shown before interest, to bring report-ing into line with industry standards and conventions.

Consequently, a reliable timeline can only be established back to 2000, and the intervening results look somewhat different to those which have been dis-played in previous Yearbooks. Most notably, the operating losses – after interest – which were reported in 2000 and 2002 are now recorded as small profi ts. 2001 and 2003 remain as un-profi table years.

Provisional fi gures show that 2006 was by a substantial margin the most suc-cessful year of the decade, with an op-erating surplus of € 2.6 billion, up from € 1.7bn in 2005. Notwithstanding the improvement, this represented an op-erating margin of just 3.5%, still below the levels of 1998-9 and far from the notional 8% target which would repre-sent a genuinely sustainable industry fi gure.

The 8% margin was achieved – just – in the third quarter of the year, always the most profi table period for the AEA airlines. The early Summer produced a 5.7% margin but the overall fi gures were depressed by the marginally-profi table fourth quarter (+2.6%) and the perennially unprofi table Jan-Mar period (-3.4%).

-2.0

-1.5

-1.0

-0.5

0.0

0.5

1.0

1.5

2.0

2.5

3.0bn

AEA Airlines’ Operating Profi ts, 2000-2007

2000

2001

2002

2003

2004

2005

2006

Two out of the three components of profi tability – yield, unit cost and load factor – showed a favourable develop-ment vis-à-vis 2005. Passenger yields rose 3.5% from 9.0 to 9.3 € -cents per passenger-km, while unit cost in-creased just 1.6%.

The yield improvement was generated mainly on the North Atlantic, where the average revenue per kilometre in-creased 11%. Infl uencing this fi gure was the 5% growth in transatlantic premium-cabin traffi c, compared with a very slight decrease in economy-class passengers. Although very much a niche, part of this increase will have been realised by full business-class services fl own by specialist operators on behalf of AEA airlines; three mem-ber airlines are currently offering fi ve daily roundtrips in this segment.

Elsewhere, yields on Far East routes improved slightly, by just over 2%, but

-4

-2

0

2

4

6

8

10

Q4Q3Q2Q1

%

Operating Margin by Quarter, 2005 and 2006

Source: AEA

2005

2006

a slight decrease was recorded in Eu-rope, -1.1% cross-border and -0.7% if domestic is included.

On the cost side, the main driver was the continuing high cost of fuel, which effectively showed a 20.6% increase in 2006, following a 37.1% rise in 2005. Consequently, fuel has risen from about 15% of AEA members’ total op-erating cost to 22.5% in just two years.

Another area of cost infl ation between 2005 and 2006 was airport charges, which rose 6.2% on a per-passenger basis. This was partly compensated by a slight decrease in the other main infrastructure cost component, en-route navigation charges. The major positive contributor to cost control in recent years, distribution cost, contin-ued to move in a favourable direction, with a 6.0% decrease per tonne-km, following a -14.8% in 2005. Clearly, the economies inherent in internet selling continue to be realised.

AEA’s outlook for 2007 is for a further improvement in operating surplus, to slightly better than € 3bn. This projec-tion is very sensitive to a number of factors, which include a slight soften-ing in demand and the prospect that load factors – which in recent years have mitigated the damage from the fuel price explosion – may fi nally have reached their ceiling.

0.0

0.5

1.0

1.5

2.0

Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12 0 0 4 2 0 0 5 2 0 0 6

Fuel & Oil cost per consumed gallon

Source: AEA

Source: AEA


A E A A I R L I N E S I N 2 0 0 6 W W W. A E A . B E

Body

to body.


Ryanair in early 2007 have concluded a major new agreement with a global hotel agency, and deals to place adver-tisements on seat-backs and overhead lockers. It remains to be seen whether the long-heralded introduction of in-fl ight gambling will materialise this year.

National and European legislative initia-tives have in 2007 ended the practice of quoting, on billboards and websites, basic fares exclusive of add-on fees. The era of the € 0.01 fare has ended.

Ê Long-Haul No-Frills?

A constant source of speculation in and around the industry is the pros-pect of the no-frills product migrating to long-haul routes. Any two industry analysts are likely to have opposing views on the matter.

Recent developments include the launch, in October 2006, of a daily Hong Kong – London LGW service by Oasis Hong Kong airlines, with one-way prices starting at £75, and a proposal from the CEO of Ryanair to form a new airline, equipped with Boeing 787s, to fl y transatlantic routes. Zoom Airlines, a Canadian carrier, is serving several Canada-UK markets and a UK sub-sidiary has plans to launch a London LGW – New York JFK service in June 2007, with a lead-in price of £129.

Contrary to popular perception, long-haul low fare is not new. From the 1950s through to the early 1970s, Loftleidir Icelandic Airlines operated Luxembourg – New York services with an intermediate stop in Iceland, using propeller-driven aircraft, uniquely of-fering fares lower than the IATA levels. In the late 1970s, Laker Airways intro-duced its London-New York ‘Skytrain’ service with no reservations and all seats priced at £59/$99.

These operations took place against a backdrop of heavily regulated ‘normal’

The no-frills business model continues to proliferate across the intra-European market. The number of airlines tracked by AEA now numbers 18, and this group increased their production – in terms of peak weekly seats – by 27.3% between Summer 2006 and 2007.

More than fi ve points of increase were accounted for by the consolidation un-der the TUIfl y.com banner of Hapag-Lloyd’s charter-type services and city-express services. This creates the third-largest entity within this group, however the sector continues to be dominated by Ryanair (+22.6%) and EasyJet (+12.9%), which together ac-count for almost half the no-frills total.

As a group, these airlines accounted for 25.7% of intra-European seat ca-pacity. This compares with a fi gure for AEA member airlines of 54.3%.

Much of the new capacity coming on stream is focused in two market seg-ments: leisure travel to Mediterranean destinations, and Eastern Europe – particularly serving destinations where large expatriate populations have con-gregated following EU enlargement.

The two largest Central/East European carriers, Wizzair and SkyEurope, have both developed route systems based on multiple bases in different countries in the area, in an attempt to derive criti-cal mass in a fragmented marketplace. The network carriers of the region, still essentially state-owned and with a strong national identity, would have much more diffi culty in implementing such a strategy.

Ê Ancillary revenue – making all the difference

The established no-frills carriers have long been aware of the potential for le-veraging their traffi c volumes to produce revenues over and above the income from ticket sales. For some, these ancil-

lary revenues have become an increas-ingly important part of their business.

Ryanair’s ancillary revenues in their 2006-7 fi nancial year increased by 40% to € 362 million, or 16% of their total revenue. Their passenger count of 40 million represents a great ‘captive audience’ for merchandising, but so does their website with approximately 15 million unique users per month.

For EasyJet, the fi gures are only slight-ly less impressive. In the fi rst half of their 2007 fi nancial year, it reached £ 77 million, a 32% increase and 11% of the total. EasyJet identify fi ve categories of ancillary revenue sources: In-fl ight Card fees Change/Rescue/Speedy Boarding Excess Baggage/Sporting Goods Partner


0

1

2

3

4

5

“No-Frills” (in seats per week (m))

2003

2004

2005

2006

2007

Source: OAG-Max/websites

Aerlingus.com

Easyjet

Ryanair

Others

(11)

(12)

(17)

(15)

(15)


fares which were kept artifi cially high by international agreement. Any cur-rent-day new entrant must join a price mechanism which is much more mar-ket-driven and compete against estab-lished airlines which are much more effi cient.

The same is true, of course, in short-haul markets, where no-frills compe-tition is now fi rmly entrenched. The question is: can new operators fi nd suffi cient comparative advantage in their business model to fi eld a credible differentiated product?

Several aspects of the competitive advantage which may be available on short-haul will not necessarily translate to long-haul operation. Aircraft and crew utilisation is an obvious example. A roundtrip between Europe and East Coast USA occupies a single aircraft for a whole day and requires two com-plete crews, one of which will need overnight hotel accommodation – re-gardless of business model.

Fuel – a cost element over which no-frills operators have no more control than do the network airlines – is a much bigger proportion of total costs on long-haul services. For the AEA air-lines, it accounted for more than 25% of expenses on North Atlantic routes in 2006, compared with less than 15% on European services.

Possibly the largest source of cost ad-vantage for no-frills operators in Europe comes from seating density, which is typically around 25% greater than for network airlines. While high-density seating confi gurations on long-haul widebody aircraft could produce ca-pacity increments of this order, issues of comfort on long sectors could be an important factor in travel decisions.

Travel decisions for long-haul journeys are in any case likely to be more care-fully considered than for short-haul,

taking into account planning lead times, fl ight cost as a proportion of to-tal cost, and a possible ‘what-if’ factor weighing the consequences of sched-ule disruption.

Add to this the widespread availability of very attractive fares offered by net-work carriers over a broad spectrum of long-haul routes, both point-to-point and through hub connections, and it is clear that new entrants seeking to bring a no-frills business model to in-tercontinental markets have substan-tial obstacles to overcome. While long-haul no frills has yet to materialise and mature, airlines with competitive cost structures are emerging, while new regulatory structures such as EU-US could offer new market opportunities and new forms of cooperation between established carriers and no-frills feeder services.

Ê A convergence of business models ?

Defi ning a ‘no-frills’ carrier is a subjec-tive exercise which involves putting imaginary ticks in imaginary boxes alongside a range of product features, both commercial and operational. While Ryanair has for long stood out

The number of airlines tracked by AEA now numbers 18,

and this group increased their production by 27.3%.

as a carrier that ‘ticks all the boxes’, as well as continually inventing new boxes, the distinction between other carriers in this sector continues to be eroded.

From the no-frills side, carriers have discovered the revenue potential of adding back frills, at a price. These may include such features as as-signed seating and priority boarding. At the same time, established carriers, having successfully embraced internet sales and e-ticketing, have also adopt-ed other typical elements of the no-frills model, such as paid in-fl ight catering.

Savings generated through such initia-tives have allowed the network airlines to review their commercial strategy and face the competitive challenges posed by the no-frills sector. Many AEA member airlines have developed low-fare one-way pricing structures across their European networks. One member, Aer Lingus, has reinvented it-self with an outright no-frills product on its European routes. Another, Brussels Airlines, has sealed a merger with for-mer no-frills carrier Virgin Express with a radically simplifi ed two-tier pricing structure, offering fl exible fares in one cabin and very low prices in the other.

THE ENVIRO.AERO INIT IAT IVE - ASSOCIATION OF EUROPEAN AIRLINES 15


The Enviro.aero Initiative

As global concerns over climate change have gained prominence in the public awareness, the misperception that somehow air transport is largely to blame has gathered momentum. It is not uncommon to hear aviation referred to as “the largest contribu-tor to climate change”, a statement which, while incorrect, is in danger of becoming received wisdom unless the industry makes its environmental per-formance better known and its argu-ments better heard.

The excellent work which has been car-ried out by all sectors of the industry to reduce greenhouse gas emissions is not widely known, the true fi gures are not understood, the hugely positive contributions that aviation makes to today’s society are generally ignored – and the sector has become an easy target for some politicians and NGOs.

That is because, to date, the industry has failed collectively and success-fully to communicate this to the public. Responses have been piecemeal and fragmented – and essentially reactive. The enviro.aero initiative, a global, cross-industry exercise launched in May 2007, aims to remedy this. Its public interface is the www.enviro.aero

website, a showcase for aviation’s en-vironmental credentials which, hope-fully, will provide balance in the debate about the impact of the sector on the environment. More than a simple re-pository of facts and viewpoints, it is also intended to be a place where the public and the media can ask ques-tions and interact with industry, thus encouraging proper debate.

Through this constantly growing web-site, the public will have access to reliable and verifi able information on aviation, the environment and climate change, from general information on the infrastructure, operational and technological steps taken in pursuit of emissions containment, to case stud-ies and key statistics.

The air transport industry is confi dent that it is meeting its environmental re-sponsibilities, but up until now it has been less positive that it has been communicating this confi dence in an effective manner. The collective effort taken by all sectors of the industry, worldwide, will hopefully reassure trav-ellers that they can fl y without guilt, and help to broadcast the message that an entirely sustainable industry is a realis-tic objective.

Adria Airways

Aer Lingus

Air France

Air Malta

Air One

Alitalia

Austrian

bmi

British Airways

Brussels Airlines

Cargolux

Croatia Airlines

CSA

Cyprus Airways

Finnair

Iberia

Icelandair

Jat Airways

KLM

LOT

Lufthansa

Luxair

Malev

Olympic Airlines


Spanair

SWISS

TAP Portugal

TAROM

Turkish Airlines


18

20

21

22

23

24

ISSUES - ASSOCIATION OF EUROPEAN AIRLINES 17

Issues A S S O C I AT I O N O F E U R O P E A N A I R L I N E S

Emissions Containment - and Emissions Trading

EU-US - Agreement at last?




Cargo - A Crucial Part of the Business

Adria Airways

Aer Lingus

Air France

Air Malta

Air One

Alitalia

Austrian

bmi

British Airways

Brussels Airlines

Cargolux

Croatia Airlines

CSA

Cyprus Airways

Finnair

Iberia

Icelandair

Jat Airways

KLM

LOT

Lufthansa

Luxair

Malev

Olympic Airlines


Spanair

SWISS

TAP Portugal

TAROM

Turkish Airlines



AEA, in cooperation with other industry stakeholders, has developed a com-prehensive Emissions Containment Policy in response to the challenge of identifying a sustainable path for in-dustry development in the face of real concerns over climate change.

In developing its Emissions Contain-ment Policy, AEA has highlighted a number of areas in which the potential exists for substantial improvements in greenhouse-gas emissions. The way carriers maintain and fl y their aircraft plays a large part in environmental effi -ciency, and the airlines are actively en-gaged in implementing and promoting best practice in their operations.

Technology holds the key to even greater effi ciency gains. Airframe and engine manufacturers are constantly enhancing their product range, and every new aircraft type or variant which comes onto the market is invariably more environmentally-effi cient than the model it supersedes. The industry is also supporting research into alterna-tive fuels.

The third area of potential improve-ment is in infrastructure. Europe’s airspace, fragmented into country-shaped parcels and dotted with no-go zones reserved for military use, is badly in need of redesign. Aircraft fl y circuitous routes, or are assigned to fl ight levels where they are operating below optimal performance. The ratio-nalisation of European airspace is part of the ongoing Single Sky programme, which offers massive potential to re-duce costs, delays and environmental impact. Increasing congestion at ma-jor airports can involve aircraft fl ying round in circles awaiting a landing slot, or waiting in line on the ground for their turn to take off.

Along with technology, operations and infrastructure, the fourth pillar of the AEA’s Emissions Containment Policy allows for ‘market-based solutions’ and in particular the inclusion of avia-tion into an Emissions Trading Scheme – the issuance, buying and selling of permits to produce greenhouse gas-es.

The real advantages of an ETS begin to emerge when it is applied in conjunc-tion with the other emissions-abate-ment measures in which the aviation sector is actively engaged, acting as a catalyst to enhance their effectiveness by ensuring that resources are directed to where they will do the most good.

AEA, along with other industry associa-tions, has consistently embraced the concept of ETS as a useful tool in the drive to manage the industry’s green-house gas emissions. In this context, the proposal made by the European Commission to include aviation in the EU ETS constitutes a positive and in-novative step.

However, an ETS is a complex ma-chine with many moving parts, and an imperfectly-designed system could have a very detrimental effect on the industry while delivering little environ-mental benefi t. In its present form, the Commission’s scheme raises serious concerns that the proposal is based

Emissions Containment and Emissions

ISSUES 19

on unrealistic assumptions, resulting in a dangerous under-estimation of the wide-ranging repercussions of the scheme on European aviation.

When airlines undertake to contribute to emissions abatement, they do so despite the fact that any such contribu-tion will be small, because their share of global emissions is small. As they emit just 2% of global carbon dioxide, an airline ETS will be operating within a very confi ned area.

Airlines contribute enormously to the economic, social and political frame-work of Europe, and this contribution must be taken into account when evaluating proposals which will fun-damentally infl uence the dynamics of the industry. Any mistakes made at this stage, any heavy-handedness, could have massive repercussions for the industry, for European mobility and competitiveness, for tourism and the regions.

The challenge is to create a framework within which the growth of the indus-try can be sustained while its emis-sions are contained. In essence, the difference between a ‘good’ and a ‘bad’ ETS could be minimal in climate-change terms, but huge in its impact on an industry which, directly or indi-rectly, touches all of Europe’s citizens.

Ê Taxes and Charges – an alternative to ETS?

Whatever the complexity of an emis-sions trading scheme, its primary fea-ture is the ‘cap’, or emissions target, around which it is designed, since that determines the number of permits which are issued and which can be traded. If the issuing authority decides that the cap should be reduced, then that is what will happen; the reduction will occur either within the industry, or in other industries from whom permits are purchased.

An ETS, then, should be capable of being fi ne-tuned to whatever objective is required.

An airline, presented with its permits for a given trading period, can use its own judgement as to how best to use them. It can choose to adjust its capacity provision at points around its network, it can invest in emission-reduction technology or to realise improvements

through operational and technical pro-cedures – or it may choose to exceed its target and purchase additional per-mits.

In any case, the success with which it pursues any or all of these strategies will be a measure of effective manage-ment.

Taxing and charging regimes do not start with clear objectives as regards emissions targets. If airlines pass the costs on to their passengers, demand will be affected in a crude and haphaz-ard fashion. If the airlines absorb the costs themselves – much more likely in a highly competitive marketplace – their profi tability, if they have any, will be deeply affected, as will their ability to invest in technical and technological solutions.

TradingAirlines contribute enormously to the economic,

social and political framework of Europe.


On April 30th 2007, on the occasion of the EU-US Summit, a ground-breaking Air Transport Agreement was signed between the two sides, having been drawn up between the European Com-mission and the US Department of State on March 2nd and ratifi ed by the Council of EU Transport Ministers on March 22nd. It will come into effect on March 30th 2008. This agreement was the culmination of eleven rounds of ne-gotiation spread over more than three years

As can be imagined with such an in-tensively-negotiated outcome, there is not, and there was never intended to be, a clear ‘winner’ between the two sides. In the short term, certain com-mercial developments now become possible which might have differential impacts on individual airlines.

The agreement fi nally removes the le-gal uncertainty over the ‘Community Clause’ whereby all EU airlines should have equal access to all EU markets. This has of course been a reality for intra-EU travel for many years, how-ever its application in the EU’s biggest external market is a ground-breaking development. Whether or not Commu-nity airlines choose to take advantage of 7th-freedom opportunities to the US, the fact that they can do so is remark-able.

While the deal has created a level play-ing fi eld within Europe for EU airlines serving the US, its critics point out that the same level playing-fi eld will not exist between the EU and the US. Generally speaking, the inequalities of opportunity between the two sides en-shrined in the agreement are already in place.

An EU airline may be owned 49% by non-EU interests while a US airline must be 75% US-owned. Remedying

this inconsistency had previously been a precondition for the agreement from the European side. However it became clear that this was a concession the US were not able to offer in the present po-litical climate.

Another area of inequality is access to routes beyond the normal 3rd and 4th freedoms. The US domestic market re-mains fi rmly closed to European carri-ers whereas US airlines can fl y freely on cross-border routes in Europe. Again, this substantial imbalance on paper is not refl ected in reality; US airlines have currently an established portfolio of 5th-freedom opportunities in Europe, but with the exception of the large express cargo carriers, these rights are unused and indeed US 5th-freedom networks have been dismantled as liberalisation has created a much more competitive marketplace in Europe.

C lea r l y, t he EU-US ag reement has swept away many of the rules

governing operations between the two regions. In doing so, it highlights all the more clearly the limits and constraints which remain, particularly regarding operations within, rather than between the two markets. Therein lies the es-sential difference between the Euro-pean and the American vision of ‘Open Skies’.

Nevertheless, both sides are com-mitted to a second-phase process of extending the agreement further into areas which it was unable to reach this time. A late insertion to the text, in-sisted upon by the Council, allows for a revocation of rights granted under the agreement if substantive second-stage negotiations are not forthcoming. In the meantime, it is to be hoped that early experience of the agreement will show that opportunities outweigh threats in the new age of EU/US operations.

EU-US Agreement at Last

ISSUES 21

European hub airports are essential components for the cohesion of the Single Market, as well as providing vi-tal links to the rest of the world for both passengers and freight. They enhance Europe’s worldwide competitiveness and function as a building block for achieving the objectives of the Lisbon Agenda.

Airports must be able to provide effi -cient hub-and-spoke connectivity, as well as cater for effi cient point-to-point services. Simply optimizing the use of current available capacity through technical solutions is not suffi cient to accommodate market developments for the years to come. Nor are genu-ine solutions to be found in combin-ing or substituting transport modes, especially when the surface element is highly subsidised.

On 24 January 2007 the European Commission adopted the so called “Air-port Package” of regulatory proposals. It consists of a draft Directive on airport charges, a Communication on airport capacity and a Report on ground han-

dling at Community airports. AEA has long argued that regulatory proposals need to be developed to address dis-tortions in the aviation value chain. It is encouraging that the Commission now has seriously engaged in a discussion with the airline industry and taken up the regulatory challenge of addressing the value chain issues.

A key feature of the Package is that it foresees the appointment of an inde-pendent regulator in each EU Member State to oversee the airline-airport re-lationship. This should contribute sub-stantially to improving the transparency of negotiations on charges between an airport and its users.

Nevertheless, certain measures strong-ly advocated by AEA are not explicitly specifi ed in the Commission’s propos-als. AEA believes that the EU should develop a framework for a national reg-ulation to exclude excessive profi ts by airports, who should be encouraged to pursue cost reduction and cost-ef-fectiveness through incentive-based economic regulation.

The activities of airlines and airports are complementary in nature, neither can function without the other. How-ever, the airline business is founded on two revenue streams: from the airlines themselves through user charges, and from the airlines’ passengers, through the retail and other services provided to them. AEA believes that revenue gained from passengers brought to the airport by airlines must be factored into the equation and taken into ac-count when airport charges are being established – the so-called ‘single till’ principle.

To meet future traffi c volumes, airports need to continue to increase capac-ity and adjust their investment plans according to demand and the users’ willingness to pay. Thus adequate user involvement, including user agreement on both the need for and the fi nancing of any investment, should be included in any EU legislation. This ensures that every investment is scrutinized and evaluated based on a clear and realis-tic business case so that pre-fi nancing will be avoided.

As a logical implementation of a Euro-pean aviation strategy, a harmonised and integrated EU framework on the airline-airport relationship would cre-ate a level playing fi eld and rebalance the inadequacies of the aviation value chain. It would address market fail-ures and ensure effi cient functioning of the airport market. The sustainable profi tability of European aviation and a healthy airline-airport relationship will heavily depend on effi cient and viable airports and airlines that can compete in an open and competitive market with equitable cost structures.



Security of the aircraft and its pas-sengers has been a priority for airlines ever since the industry was fi rst target-ed by hijackers and political activists. The intensity of the security effort has increased immensely since 11th Sep-tember 2001, and subsequent threats - real or perceived - have maintained the impetus of escalating measures.

Amongst the more evident and contro-versial of these measures have been the installation of armoured cockpit doors, transfer of passenger data re-quired by US authorities, and limits on the carriage of liquids in hand lug-gage.

Passenger screening at airports has become a much more intensive and intrusive process requiring greatly ex-panded facilities and staffi ng. Unau-thorised access to operational areas at airports has been rigorously eliminat-ed, although surveillance of aircraft on turnarounds and nightstops remains a requirement.

Network airlines relying for a signifi cant part of their business on transfer traf-fi c have concerns in maintaining their product quality when passengers from outside the EU, transiting EU airports, are subject to re-screening, or face confl icting rules. A typical example would be passengers carrying liquids in hand luggage on their fl ight into the EU, for example duty-free goods, which could become liable for confi scation at the EU transit point.

Clearly, the airlines are prepared to take whatever action is appropriate to protect themselves and their custom-ers. However, they are also entitled to question the appropriateness of the measures to which they are subjected, either at the time the measures are im-posed or after they have had a chance to demonstrate how they may materi-ally improve security.

Unfortunately, the airlines have rea-son to suspect that some new rules are knee-jerk measures not properly thought through, or applied to ad-dress perceptions (‘something is be-ing done’) rather than actual threats. Others may address perceived threats without taking account of the level of risk, which may be infi nitesimally small, or of the measures already implement-ed. Once in place, there is no mecha-nism for review and ultimate relaxation of rules which have been shown to be unnecessary.

Refreshing the rules in this way could bring substantial savings without any adverse effect on security, AEA be-lieves. This saving will accrue to the air-lines and, ultimately, their passengers, because present security measures are almost entirely industry-funded. AEA has long argued that 9/11-style terrorist actions are aimed at societies, civil populations and political institu-tions, and that States should fund at least part of the consequent security activity.


In recent months, AEA and the airports association ACI-Europe have been collaborating on an initiative to build an effi cient and simplifi ed framework for European aviation security. AEA believes that a review of the 9/11-era rules can eliminate costly duplications and redundancies by focussing on the main risks and on what is really neces-sary to enhance security. This initiative, known as ESPAS (European Strategic Partnership for Aviation Security) has the broad support of the EU regulatory authorities.

This view is shared by the European Parliament, although Member States still refuse to establish any mechanism which would oblige them to pay even a small fi xed part of the costs incurred. The second half of 2007 will see the conciliation phase of the revision to the EU security regulations, with the Com-mission acting as mediator between the divergent positions of the Parlia-ment and the Member States.

ISSUES 23

The European Air Traffi c Management (ATM) system has suffered from frag-mentation for decades and its inef-fi ciencies are well-known and docu-mented. The annual bill to the airlines of € 9.5bn for European ATM could be approximately € 3.3bn lower if the system were operated at maximum ef-fi ciency. As well as this huge potential cost saving, safety would be enhanced and the impact on the environment would be signifi cantly reduced.

Furthermore, the current ATM system will be unable to cope with the project-ed increase in traffi c demand.

Since the adoption of the Single Eu-ropean Sky (SES) legislation in 2004, some progress has been made, al-though substantial challenges remain. To overcome these challenges, major operational improvements are required along with political action for the insti-tutional reform of European ATM.

AEA’s vision of a true single European sky consists of a few Functional Air-space Blocks, developed on the basis of operational needs. Key objectives should be safety, fl ight effi ciency, cost effi ciency and capacity. Improved fl ight effi ciency would automatically lead to a reduction in the environmental im-pact of aviation, benefi ts which would be sustained through the provision of adequate capacity.

The SESAR project, which is the tech-nical and operational blueprint for Eu-ropean ATM for 2020 and beyond, is supposed to address the longer term objectives of modernizing ATM. As such, it is a genuinely pan-European project deserving of EU support and funding as a Public-Private Partner-ship, in the same way as other initia-tives in rail and shipping. However, SESAR alone is not enough since fur-ther institutional reforms are needed now which require urgent political ac-

tion to reaalise the full implementation of the Single Sky well before 2020.

Changing the governance of ATM is essential to make progress on the Sin-gle Sky. The airlines, as clients of ATM services, need to have some control over objectives, business-plans, bud-get and resources.

The de-fragmentation of European air-space implies that the number of Air Navigation Service Providers should be reduced, and the number of Area Control Centres be adapted strictly to operational needs. Simplifi cation of the system and less burdensome workload will not automatically lead to job losses, although current controller workforces should be able to handle increased traffi c at a more manage-able level of task intensity.

ATM services should, wherever fea-sible, be performed in competition or after a transparent tender procedure. Where this is not possible, manda-tory independent economic regulation should be put in place. Ancillary ATM services, such as Meteorological Ser-vices, Communication, Navigation and Surveillance are more susceptible to market-based provision and should be unbundled from the core Air Traf-fi c Control function, offering the pros-pect of more cost-effective service in a competitive environment.

Eurocontrol’s role has to be rethought in the context of a Single European Sky. In particular, there is a need for clear separation between service pro-vision and regulatory tasks. Eurocon-trol is well-placed to continue to deliver expertise to the EU in the context of SESAR and the other Single Sky initia-tives, but there is a need for greater transparency regarding its role and how it should be funded. At present, Eurocontrol’s huge budget is not com-mensurate with the services it delivers

and the airlines have called for a man-datory budget reduction programme to deliver greater cost effi ciency.

Since Europe now has a safety regu-lator in the shape of the European Aviation Safety Agency, it makes sense that this should become the single regulator for all aspects of safety in the aviation value chain, including ATM and airports. This would be a natural complement to the EU common avia-tion market.

The current system of one National Supervisory Authority (NSA) per EU State is unsustainable. In the interest of safety, interoperability and operational effi ciency, overseeing how the rules are implemented should be carried out by a limited number of NSAs in order to guarantee a seamless application of the rules and a common level of ser-vices.

Clearly, the reform of European ATM has a strong political component alongside the technical and opera-tional elements. The programme offers some glittering prizes – for the airlines and their customers, for the environ-ment and for European technology. It is simply too important to be sidetracked or derailed.



While 2% of international trade, measu-red in tonnes, is transported by air, this represents 40% of the value of inter-re-gional trade in manufactured goods. As the EU increasingly focuses on its high-value industry sectors, air freight becomes crucial – the key European commodities, value-wise, are trans-ported by air.

Aviation is essential for the movement of hi-tech products such as lap-top computers, automotive components and machinery parts, chemicals and pharmaceuticals. The sector is indis-pensable for the transport of urgent or time-sensitive goods, such as post, packages and newspapers. Speed is also the essence when it comes to trade in fashion consumer goods, fruit and fl owers. In short, everyone in Eu-rope is a customer for air freight.

Air freight is important for European citizens, and for European airlines. AEA airlines earn about € 9 billion from cargo yearly, representing about 13% of total revenues. This proportion rises to about 23% for long-haul operations and as high as 34% on Far Eastern routes.

Air Cargo features some particular cha-racteristics which distinguish it from the passenger business, notwithstan-ding that over half the traffi c on AEA airlines is carried in the holds of aircraft operating passenger services. The structure of competition within the sec-tor is somewhat different. The product has particular needs in infrastructure provision. Most importantly, between the end-user (the consignor) and the airline there is an intermediary in the form of the forwarder or consolidator, with huge market power.

Some all-cargo airlines, such as AEA member Cargolux, operate the most

modern and effi cient aircraft available. Some of their competitors choose to operate already-depreciated equip-ment with low ownership costs. Some passenger airlines operate their cargo business as a separate profi t centre while others treat cargo as a marginal product, and sell space at marginal costs.

Access to infrastructure can have a strong competitive element. Air cargo operates mostly as a round-the-clock business for which night fl ights are an important consideration. Many Euro-pean airports have night curfews or punitive night movement fees, while non-European competitors may be operating through unconstrained

hubs, allowing higher aircraft utilisation and consequently lower costs. Airport fees are often structured in such a way as to penalise freight operations, which do not use and do not need much of the passenger-oriented infrastructure.

In today’s security-conscious environ-ment, air freight has particular needs. AEA strongly believes in the need to secure the whole supply chain rather than applying security measures at the last point before uplift, namely the airport. Only in this way can bottle-necks be avoided and trade facilitated. It would also distribute responsibilities among airlines, forwarders and custo-mers.

Cargo A Crucial Part of the Business

ISSUES 25

Bottlenecks are also produced by a lack of harmonisation in security re-gulation. While European standards are high, they are not uniform. The EU is uniquely placed to implement and enforce a framework of cross-border standards which will not only serve the internal market but could also achieve mutual recognition internationally, lea-ding to ‘one-stop security’, where a shipment secured in one country will be recognised as such in transit coun-tries which have equivalent standards, and not subject to further checks.

Administrative controls, whether for se-curity or for customs, agricultural, vete-rinary and other purposes, is a constant headache for the air cargo business; a consignment can only travel as fast as the trail of paperwork which accompa-nies it. Harmonisation of rules, elimina-tion of duplication and the streamlining of data fl ows are a prerequisite for a more effi cient air cargo network.

This is especially true for the airlines’ road feeder networks, which are an integral part of the distribution system, but are subject to their own – often un-harmonised – set of rules.

As air transport edges towards libe-ralisation on a global scale, cargo is often in the forefront of the process. Unilateral advances should not involve disbenefi ts for the European air freight industry, but should be based on reci-procity and equal opportunities. Coun-tries outside Europe have been able to realise the potential of a growing global air-freight market. Asian and Middle East airports, in particular, have reco-gnised the importance of air cargo in airport development; their resident air-lines, often with large all-cargo fl eets, compete with European airlines not only regionally but globally.

For European airlines to compete ef-fectively, and deliver Lisbon Strategy objectives of ‘more and better jobs in a more dynamic, innovative and attrac-tive Europe’, the drive towards more effi ciency and lower costs must be col-lectively addressed between the airli-nes, forwarders, airports, the EU and national authorities.

AEA airlines earn about € 9 billion from cargo yearly,

representing about 13% of total revenues.

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• MasterCard’s unique sponsorship assets (e.g. EURO 2008, PGA and Universal Studios) and attractive ready-to-use promotions across various themes (e.g. wellness, gastronomy and wine) which can boost co-brand card acquisition and usage.

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MasterCard offers strong support in fully capturing your co-brand programme’s potential by leveraging:

MasterCard has a proven track record in co-branding. We welcome the opportunity to work with you in creating a successful programme for your customers.

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SPOTLIGHT ON AEA - ASSOCIATION OF EUROPEAN AIRLINES 27

SpotlightonAEA


About AEA

Airline profi les

Key Statistics

Adria Airways

Aer Lingus

Air France

Air Malta

AEA – the Association of European Airlines – brings together 31 major airlines, and has been the trusted voice of the European airline industry for over 50 years. Adria Airways Aer Lingus Air France Air Malta Air One Alitalia Austrian bmi British Airways Brussels Airlines Cargolux Croatia Airlines CSA Cyprus Airways Finnair Iberia Icelandair Jat Airways KLM LOT Lufthansa Luxair Malev Olympic Airlines SAS Scandinavian Airlines Spanair SWISS TAP Portugal TAROM Turkish Airlines Virgin Atlantic Airways

A s s o c i a t i o n o f E u r o p e a n A i r l i n e s

AEA Technical Specifications

AEA - Technical Specifications 2007

Buy online at www.aea.be

Who should buy the AEA Technical Specifications?

Vendors who wish to offer their hardware product (printers, readers, scan-ners, etc.) with AEA com-patibility to airport, airline, shared systems providers and other transport busi-ness related clients.

IT companies / system integrators who wish to integrate airport, airline and other transport busi-ness related hardware to conform to AEA standards.

Airlines and handling agent IT departments who have to certify hardware or have to understand or explore the technical "hows" of the business.

Compatibility:

ACCESS

AMT Datasouth

ARINC

Datalogic

DESKO

EPSYS

F+D Feinwerk

Fujitsu

IER

Intermec

Unimark

Vidtronics

What is new in the 2007 Edition?

ATB Amendments

Read Configuration (RC) AEA Version (AV) Bin Status (BS) Configuration status request (RC)Barcode Contrast per Bin (BC) Hard Coded Transaction Code (CT) Barcode printing more detailed, 1D & 2D barcode handling separated, QR barcode added

BGR Amendments

BCRI# for BCR input as BGR New timer value added for light indicator on Cut Command (CC) New timer value added for cou-pon eject command (CE or CB)

BTP Amendments

AEA Version (AV) Bin Status (BS) Barcode Contrast per Bin (BC) Hard Coded Transaction Code (CT) RFID support

The story:

In the early 1980s European airlines, members of the AEA, took an important decision in driving a new technology in the field of ticketing and check-in.

The Automated Ticketing & Boarding pass with the mag-netic stripe technology was launched, first in common ex-perimentation and later with the real-time introduction of a new generation of printer/reader/encoder machines.

Throughout its development experts from all AEA member airlines were involved in decid-ing and defining the hardware One of many AEA compatible ATB printers:

Unimark XP

and software/firmware specifi-cations, linking the airport based ticket processes with the airline’s own host computer.

The joint initiative by European airlines has allowed AEA to adopt a standard approach to the machine printing and read-ing of ticket information as well as being the leaders in launch-ing a new technology, based on existing industry standard and designed in conjunction with airlines and vendors.

AEA specifications are now recognized worldwide as indus-try standard for ATB, BTP and BGR equipment.

The product:

The AEA ATB, BTP and BGR specifications detail the mes-sage exchange method be-tween applications and the printers / readers used in the airport and airline travel envi-ronment. The "how" you get the data to hardware and the "what" the responses must look like.

The data content itself is de-fined by IATA or ICAO in the corresponding resolutions and recommendations and technical rules are established by ISO standards.

2007 Edition

ATB | Self-Service Kiosk | BTP | BGR

Order your copy now!

Association ofEuropean Airlines

SPOTLIGHT ON AEA 29

About AEA

The Association of European Airlines is an industry organisation represen-ting 31 major European airlines, with a collective turnover of 75bn, carrying more than 343 million passengers and 6 million tonnes of cargo in 2006. AEA airlines operate 11,030 fl ights daily with a fl eet of more than 2,540 aircraft, serving 605 destinations in 161 coun-tries, with a combined staff of just over 375,000. The membership of AEA in-cludes European scheduled and char-ter, passenger and all-cargo carriers, operating domestic, European and international services.

AEA is a non-profi t making associa-tion. It operates for, and is represented jointly by all its members, actively en-gaging with the institutions of the Euro-pean Union and relevant international and governmental organisations.

AEA strives to shape the industry’s fu-ture with its members and, wherever possible, works in partnership with other members of the aviation value chain to ensure the sustainable growth of the European airline industry in a global context. In this role, AEA is re-lied upon by European regulators, the media and other stakeholders as a trustworthy contributor to the debates around the decision-making process.

AEA is governed by the full Assembly of Presidents of its member airlines. The Presidents elect a Chairman to re-present and support the AEA for a pe-riod of one year, assisted by the Presi-dents’ Committee, which is composed of the past and present Chairmen and up to nine other Presidents elected by the Assembly.

The AEA Secretariat, with at its head the Secretary General, is located in Brussels and has a staff of twenty-two.

Chairman 2007Fernando Conte, Iberia

Presidents’ CommitteeJean-Cyril Spinetta, Air FranceWillie Walsh, British AirwaysIvan Misetic, Croatia AirlinesWolfgang Mayrhuber, LufthansaJukka Hienonen, FinnairPeter Hartman, KLMMats Jansson, SASFernando Pinto, TAP PortugalSteve Ridgway, Virgin Atlantic Airways

AEA SecretariatUlrich Schulte-Strathaus, Secretary General Nathalie Mulleners, Personal Assistant to SG and Manager Admin/Events

Political Communications TeamFabio Gamba, Deputy Secretary GeneralFrançoise Humbert, General Manager CommunicationsAthar Husain Khan, General Manager InfrastructureLe Thi Mai, General Manager Environmental AffairsVincent De Vroey, General Manager Technical & OperationsAraceli Cal García-Noblejas, Manager Technical & OperationsLena Hamann, Manager Political CommunicationsDavid Henderson, Manager CommunicationsMarie-Caroline Laurent, Manager Security and CargoAnn Flynn, Senior Management AssistantYvonne Hopkins, Management AssistantElodie Aelen, Administrative Assistant

Market Research TeamSue Lockey, General Manager Market ResearchDario Spila, Manager Research & AnalysisStefan Bruehlmann, Manager Strategy & Statistics

IT TeamMario De Smedt, IT ManagerAnne-Marie Weirauch, Information Base ManagerDidier Poriau, Publishing Manager

Administrative TeamSeya Immonen, General Manager FinanceJozef Swalus, Specialist Printing & Dispatch

W W W. A E A . B E A V E N U E LO U I S E 3 5 0 | 1 0 5 0 B R U S S E L S | B E L G I U M


Adria AirwaysK U Z M I C E V A 7 | 1 0 0 0 L J U B L J A N A | S LO V E N I A W W W. A D R I A - A I R W AY S . C O M

Fleet (at 31 Dec 2006)

in fl eet on order Airbus A320 3Boeing 737-500 1Canadair CRJ 200 7

Ê Total 11 0

Routes

Scheduled RTK by Business (2006)

Passenger Cargo 96.8% 3.2%

Scheduled RTK per Region (2006)

Europe 100%

Key Figures

2004 2005 2006 Employees (at 31 Dec) 552 543 6111

Traffi c Scheduled RPK [million] 711 707 773RPK [% growth] 1.5 (0.6) 9.4Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 133 135 159EBIT [EUR mill] 3.8 (3.3) 0.91 At 31 March 2006.

Owned by ...

55.80% Slovenian Pension Fund 20.00% Slovenian Restitution Fund9.74% Zvon dva holding7.15% NFD Holding4.88% Infond i.d.0.76% Individa d.o.o1.66% Employees and others

Alliances

A Regional Star Alliance Member.

Various code-share agreements, including with Aerofl ot, Austrian, Croatia Airlines, LOT, Lufthansa, Montenegro Airlines and SWISS.

Management

Tadej TufekPresident

of the Board

ˇ

Owner of ...

–

SPOTLIGHT ON AEA 31

Aer LingusW W W. A E R L I N G U S . C O M P. O . B O X 1 8 0 | D U B L I N A I R P O R T | D U B L I N | I R E L A N D


in fl eet on order Airbus A320-200 22 2Airbus A321-200 6 Airbus A330-200 3 1Airbus A330-300 4 1

Ê Total 35 4

Key Figures

2004 2005 2006 Employees (at 31 Dec) 3,906 3,475 3,556Traffi c Scheduled RPK [million] 11,291 12,563 13,367RPK [% growth] 10.9 11.3 6.4Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 906.8 1,002.7 1,115.8EBIT [EUR mill] 107.0 76.0 81.4

Owned by ...

25.35% State ownership12.59% Employee Share

Ownership Trust0.76% Approved Profi t Sharing

Scheme61.30% Others

Owner of ...

20% Futura International Airways

Alliances

Code-share agreements with American Airlines, British Airways and KLM.

Routes


Passenger Cargo - -


Management

Dermot Mannion

CEO

Data not available


Air France4 5 R U E D E PA R I S | 9 5 7 4 7 R O I S S Y C D G C E D E X | F R A N C E W W W. A I R F R A N C E . C O M


in fl eet on order Airbus A318 16 2Airbus A319 45 1Airbus A320 67 3Airbus A321 13 7Airbus A330-200 16 Airbus A340-300 19 Airbus A380-800 10Boeing 737-500 7 Boeing 747-200F 7 Boeing 747-400 16 Boeing 747-400F 5 Boeing 777-200 25 Boeing 777-200F 5 Boeing 777-300 17 10

Ê Total 258 33

Routes




Far East 27.8%

North Atlantic 23.1%

Latin America 20.1%

Africa 13.5%

Europe 13.2%

Middle East 2.3%

Key Figures

2004 2005 2006 Employees (at FY end)1 102,077 102,422 103,050Traffi c Scheduled RPK [million] 107,313 115,863 123,336RPK [% growth] 8.3 8.0 6.4Financial Financial Year from 1 Apr 2004 1 Apr 2005 1 Apr 2006Financial Year to 31 Mar 2005 31 Mar 2006 31 Mar 2007Revenues [EUR mill]1 19,467 21,448 23,073EBIT [EUR mill]1 553 936 1,2401 Refers to Air France-KLM Group.

Owned by ...

Air France is 100% owned by Air France-KLM Group, which is:65.8% Public Float18.6% State ownership14.1% Air France employees1.5% Treasury stock

Alliances

Member of SkyTeam alliance.

Franchisees: Régional, Brit Air, CityJet, CCM Airlines.Various code-share agreements, including with Aerofl ot, Aeromexico, Air Caledonie, Air Europa, Air Seychelles, Air Tahiti, Alitalia, Austrian, CCM, China Eastern Airlines, China Southern Airlines, Continental Airlines, CSA, Delta Airlines, Finnair, JAL, KLM, Korean Air Lines, Luxair, Malev, Middle East Airlines, Northwest Airlines, Qantas, Royal Air Maroc, Taca International, TAROM and Tunisair.

Management

Jean-Cyril SpinettaChairman

Owner of ...

100% Brit Air100% CityJet100% Régional51% All Africa Airways1

11.95% CCM Airlines7.70% Air Mauritius7.48% Air Tahiti5.60% Tunis Air3.57% Cameroon Airlines3.17% Air Madagascar2.87% Royal Air Maroc2.09% Air Calédonie1.5% Austrian1Stake in holding company, 76.42% owner of Air Ivoire.

SPOTLIGHT ON AEA 33

Air Malta W W W. A I R M A LTA . C O M H E A D O F F I C E | LU Q A L Q A 0 5 | M A LTA


in fl eet on order Airbus A319 5 Airbus A320 5 2Boeing 737-300 2

Ê Total 12 2

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,787 1,744 1,547Traffi c Scheduled RPK [million] 2,552 2,292 2,385RPK [% growth] 17.4 (10.2) 4.1Financial Financial Year from 1 Jan 2004 1 Apr 2005 1 Apr 2006Financial Year to 31 Mar 2005 31 Mar 2006 31 Mar 2007Revenues [EUR mill] 128.9 206.0 EBIT [EUR mill] (11.7) (14.8)

Owned by ...

97.9% State ownership2.1% Private investors

Alliances

Various code-share agreements, including with Aerofl ot, Brussels Airlines, CSA, Emirates Airlines, Libyan Arab Airlines, Lufthansa, Olympic Airlines and Qantas Airways.

Routes




Europe 98%Africa 2%

Management

JoeCappello

CEO

Management

Lawrence ZammitChairman

Owner of ...

–


Air OneV I A C E S A R E G I U L I O V I O L A , 2 7 | 0 0 1 4 8 R O M E | I TA LY W W W. F LYA I R O N E . I T


in fl eet on order Airbus A320 2 38Avro RJ70 1 Boeing 737-200 2 Boeing 737-300 6 Boeing 737-400 22 Canadair CRJ 900 6 4

Ê Total 39 42

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,381 1,449 1,549Traffi c Scheduled RPK [million] 3,278 3,153 3,380RPK [% growth] 7.1 (3.8) 7.2Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 502 485 5701

EBIT [EUR mill] 22.2 14.8 26.01

1 Estimate.

Owned by ...

99.9% Toto S.p.A.0.01% Private ownership

Alliances

Various code-share agreements, including with Aegean Airlines, Air Canada, bmi, Croatia Airlines, Darwin Airline, Lufthansa, Spanair, TAP Portugal and US Airways.

Routes


Passenger Cargo 100% 0%

Management

Lino BergonziCEO

Management

Carlo TotoPresident

Owner of ...

95% Air One International


Europe 100%

SPOTLIGHT ON AEA 35

AlitaliaW W W. A L I TA L I A . C O M V I A L E A L E S S A N D R O M A R C H E T T I 1 1 1 | 0 0 1 4 8 R O M A | I TA LY


in fl eet on order Airbus A319 12 Airbus A3201 14 Airbus A3211 24 ATR 722 10 Boeing 737-300F 1 Boeing 767-3001 15 Boeing 777-200 10 Boeing (Douglas) MD-11F 5 Boeing (Douglas) MD-82 75 Embraer RJ1452 14 Embraer RJ1702 6 6

Ê Total 186 61 Including aircraft operated by Volare.

2 Operated by Alitalia Express.

Key Figures

2004 2005 2006 Employees (at 31 Dec) 20,575 11,174 11,430Traffi c Scheduled RPK [million] 34,366 37,244 37,740RPK [% growth] 10.0 8.4 1.3Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill]1 4,245 4,803 4,724EBIT [EUR mill] (535) (47) (266)1 In accordance with Italian GAAP.

Owned by ...

49.9% State ownership40.9% Private investors4.9% Newton Investment

Management Ltd2.3% TT International2.0% Norges Bank

Alliances


Various code-share agreements, including with Aerofl ot, Aeromexico, Air Alps, Air China, Air Europa, Air France, Brussels Airlines, Bulgarian Air, China Airlines, Continental Airlines, CSA, Cyprus Airways, Delta Airlines, JAL, Jat Airways, KLM, Korean Air Lines, Kuwait Airways, Luxair, Malev, Meridiana, Northwest Airlines, PGA Portugalia Airlines, Qatar Airways, TAROM and Ukraine International Airlines.

Routes




Europe 30.1%

North Atlantic 25.5%Far East 24.4%

Latin America 12.2%

Africa 4.6%

Middle East 3.2%

Owner of ...

100% Alitalia Express100% Volare1.63% Air France-KLM

Management

MaurizioPrato

President


AustrianF O N TA N A S T R A S S E 1 | P. O . B O X 5 0 , 1 1 0 7 V I E N N A | A U S T R I A W W W. A U S T R I A N A I R L I N E S . C O. AT


in fl eet on order Airbus A319 7 Airbus A320 8 Airbus A321 6 Airbus A330 4 Airbus A340 2 Boeing 737 9 Boeing 767 6 Boeing 777 3 1Canadair CRJ 100 14 De Havilland DHC-8-300 12 De Havilland DHC-8-400 10 Fokker 70 9 Fokker 100 13

Ê Total 103 1

Key Figures

2004 2005 2006 Employees (year avg) 7,662 8,468 8,582Traffi c Scheduled RPK [million] 17,520 18,842 19,890RPK [% growth] 20.5 7.5 5.6Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill]1 2,224.7 2,485.8 2,662.8EBIT [EUR mill]1 74.4 (100) (89)1 Refers to Group fi gures.

Owned by ...

48% Free fl oat39.8% OIAG Austrian Privatisation

Agency10.2% Austrian institutional

shareholders2% Austrian Airlines

Alliances

Member of Star Alliance

Various code-share agreements, including with Aerofl ot, Air Dolomiti, Air France, Bulgaria Air, Egypt Air, El Al, Jat Airways, Royal Jordanian, SWISS and TAROM

Routes




Far East 55.8 %

Europe 22.3%


Middle East 4.1%

Africa 1.1%

Management

Alfred OetschCEO

Owner of ...

100% Lauda Air100% Tyrolean Airways62% Slovenske Aerolinie a.s. 22.5% Ukraine International Airlines

SPOTLIGHT ON AEA 37

bmi W W W. F LY B M I . C O M D O N I N GT O N H A L L , C A S T L E D O N I N GT O N | D E R B Y, E A S T M I D L A N D S D E 7 4 2 S B | G R E AT B R I TA I N

Routes




Europe 62.4%


Middle East 4.7%

Latin America 3.9%


in fl eet on order Airbus A319-100 10 Airbus A320-200 11 Airbus A321-200 4 Airbus A330-200 3 Embraer RJ135 3 Embraer RJ145 13

Ê Total 44 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 4,621 4,509 4,219Traffi c Scheduled RPK [million] 8,339 8,832 8,652RPK [% growth] - 5.9 (2.0)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [GBP mill] 1 830 869 905.4EBIT [GBP mill] 1 (3.2) 5.5 10.21 Refers to Group fi gures.

Owned by ...

50% plus 1 share Sir Michael Bishop30% minus 1 share Lufthansa20% SAS

Alliances


Various code-share agreements, including with Adria Airways, Air Canada, ANA, Air New Zealand, Asiana, Austrian, Blue1, Croatia Airlines, LOT, Lufthansa, SAS Scandinavian Airlines, Singapore Airlines, South African Airways, Spanair, SWISS, TAP Portugal, Thai Airways, US Airways and United Airlines.

Management

Nigel Turner

CEO

Management

Sir Michael Bishop CBE

Chairman

Owner of ...

99% British Mediterranean (BMED)


British AirwaysW AT E R S I D E , P. O . B O X 3 6 5 | H A R M O N D S W O R T H U B 7 0 G B | G R E AT B R I TA I N W W W. B R I T I S H A I R WAY S . C O M


in fl eet on order Airbus A319 33 Airbus A320 26 10Airbus A321 7 4Avro RJ100 10 Boeing 737-300 5 Boeing 737-400 19 Boeing 737-500 9 Boeing 747-400 57 Boeing 757-200 13 Boeing 767-300 21 Boeing 777 43 British Aerospace 146 4 De Havilland DHC-8 7 Embraer RJ145 28

Ê Total 282 14

Key Figures

2004 2005 2006 Employees (at 31 Dec) 47,370 46,841 44,645Traffi c Scheduled RPK [million] 106,501 110,960 114,896RPK [% growth] 6.1 4.2 3.5Financial Financial Year from 1 Apr 2004 1 Apr 2005 1 Apr 2006Financial Year to 31 Mar 2005 31 Mar 2006 31 Mar 2007Revenues [GBP mill] 7,772 8,213 8,492EBIT [GBP mill] 556 694 602

Owned by ...

100% Publicly quoted company

Alliances

Member of OneWorld alliance.

Franchisees: British Mediterranean, Comair (South Africa), GB Airways, Loganair (UK) and Sun-Air Scandinavia (Denmark).

Various code-share agreements, including with American Airlines, Brussels Airlines, Cathay Pacifi c, Finnair, Iberia, JAL, LAN Airlines and Qantas.

Routes



Management

Willie WalshChief Executive

Owner of ...

10.8% ComAir (South Africa)10% Iberia



Europe 13.4%

Africa 11.2%

Latin America 4.6%

Middle East 4.1%

SPOTLIGHT ON AEA 39

Brussels Airlines W W W. B R U S S E L S A I R L I N E S . C O M T H E C O R P O R AT E V I L L A G E | D A V I N C I L A A N 9 | 1 9 3 5 Z AV E N T E M | B E L G I U M


in fl eet on order Airbus A319 3 Airbus A330-300 3 Avro RJ85 14 Avro RJ100 12 Boeing 767-300 1 British Aerospace 146 5

Ê Total 38 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 2,133 2,170 2,5311

Traffi c Scheduled RPK [million] 4,556 4,560 4,851RPK [% growth] 15.1 0.1 6.4Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 610.0 8501 8921

EBIT [EUR mill] 10.1 12.91 14.51

1 Data refers to joint operations of the now merged airlines SN Brussels Airlines and Virgin Express.

Owned by ...

100% SN Airholding

Alliances

Various code-share agreements, including with Alitalia, American Airlines, Air Malta, Air Senegal, British Airways, Bulgaria Air, Croatia Airlines, CSA, Cyprus Airways, El Al, Etihad Airways, Finnair, FlyLAL, Hainan Airlines, Iberia, LOT, Malev, Malmo Aviation, Pulkovo Airlines, Royal Air Maroc, Sun-Air, SWISS, TAP Portugal, TAROM, Ukraine International Airlines and Virgin Express.

Routes


Africa 51.5%

Europe 48.5%

Management

Philippe Vander Putten

Chief Executive Offi cer

Owner of ...

–




Cargolux LU X E M B O U R G F I N D E L A I R P O R T | L - 2 9 9 0 LU X E M B O U R G | G R A N D D U C H Y O F LU X E M B O U R G W W W. C A R G O LU X . C O M


in fl eet on order Boeing 747-400F 14 2Boeing 747-800F 10

Ê Total 14 12

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,323 1,403 1,475Traffi c Scheduled RTK [million] 4,849 5,292 5,270RTK [% growth] 14.8 9.1 (0.4)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [USD mill] 1,213.3 1,449.5 1,551.5EBIT [USD mill] 128.9 123.7 109.4

Owned by ...

34.9% Luxair33.7% Receiver of SAir Lines31.1% Luxembourg fi nancial

institutions0.3% Others

Alliances

Various agreements, including with Aeromexpress, AZAL (Azerbaijan), China Airlines, China Cargo Airlines, Finnair Cargo, Oasis Hong Kong Airlines, Nippon Cargo Airlines and South African Airways.

Routes



Management

Ulrich Ogiermann

President & CEO

Owner of ...

–


Far East 64.1%


Africa 9%

Latin America 5.5%

Middle East 1.9%

SPOTLIGHT ON AEA 41

Croatia Airlines W W W. C Z E C H - A I R L I N E S . C O M H E A D O F F I C E | R U Z Y N A I R P O R T | 1 6 0 0 8 P R A G U E 6 | C Z E C H R E P U B L I C


in fl eet on order Airbus A319 4 Airbus A320 4 ATR 42 3 Ê Total 11 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,080 1,037 1,026Traffi c Scheduled RPK [million] 941 973 1,005RPK [% growth] 8.1 3.5 3.2Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 179.7 189.5 183.7EBIT [EUR mill] 13.8 4.5 (2.1)

Owned by ...

94.77% Republic of Croatia2.15% State Agency for Deposit

Insurance and Bank Rehabilitation

1.46% Privredna banka Zagreb d.d.1.62% Others

Alliances

A Regional Star Alliance Member.

Various code-share agreements, including with Air Bosna, Air One, Alitalia, Austrian, Brussels Airlines, CSA, Lufthansa, LOT, SWISS, TAP Portugal and Turkish Airlines.



Europe 97.6%

Middle East 2.4%

Management

Ivan MišeticPresident & CEO

Owner of ...

–



CSA W W W. C Z E C H - A I R L I N E S . C O M H E A D O F F I C E | R U Z Y NE A I R P O R T | 1 6 0 0 8 P R A G U E 6 | C Z E C H R E P U B L I CY NE A I R P O R T | 6 0 0 8 P R A


in fl eet on order Airbus A310-300 4 Airbus A319-100 6Airbus A320-200 5 3Airbus A321-200 2 ATR 42-300 1 ATR 42-500 7 ATR 72-200 4 Boeing 737-400 12 Boeing 737-500 15

Ê Total 50 9

Key Figures

2004 2005 2006 Employees (year avg) 4,861 5,303 ~5,000Traffi c Scheduled RPK [million] 5,703 6,394 6,388RPK [% growth] 19.2 12.1 (0.1)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [USD mill] 783.0 931.0 1,042.0EBIT [USD mill] 35.4 (5.8) (1.5)

Owned by ...

56.92% Ministry of Finance of the Czech Republic

34.59% Czech Consolidation Agency4.33% Ceska pojistovna a.s.2.94% City of Prague0.98% City of Bratislava0.24% National Property Fund of

the Slovak Republic

Alliances


Various code-share agreements, including with Aerofl ot, Aeromexico, Aerosvit Airlines, Air France, Air Malta, Alitalia, Belavia Belarussian Airlines, Brussels Airlines, Bulgaria Air, Delta Air Lines, Finnair, Iberia, Jat Airways, KLM, Korean Air Lines, Malev, Olympic Airlines, TAROM, Turkish Airlines and Ural Airlines.




Europe 64.5%


Middle East 6.9%

Far East 1.8%

Africa 1.2%

Management

RadomirLasak

President, Chairman of the Board

Owner of ...

–

Routes

SPOTLIGHT ON AEA 43

Cyprus AirwaysW W W. C Y P R U S A I R WAY S . C O M 2 1 A L K E O U S T R E E T | 2 4 0 4 E N G O M I | P. O . B O X 2 1 9 0 3 | 1 5 1 4 N I C O S I A , C Y P R U S


in fl eet on order Airbus A319-100 2 Airbus A320-200 7 Airbus A330-200 2

Ê Total 11 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,965 1,794 1,220Traffi c Scheduled RPK [million] 3,421 3,187 3,267RPK [% growth] 2.1 (6.9) 2.5Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 247 245 271EBIT [EUR mill] (77.7) (31.4) (23.0)

Owned by ...

69.62% State ownership30.38% Private shareholders

Alliances

Various code-share agreements, including with Aerofl ot, Aerosvit Airlines, Alitalia, Brussels Airlines, El Al, Gulf Air, KLM, LOT, Olympic Airlines, Royal Jordanian, Saudi Arabian Airlines and Syrian Arab Airlines.

Routes



Europe 97.1%

Middle East 2.9%

Management

ChristosKyriakides

General Manager

Management

Kikis N.Lazarides

Executive Chairman

Owner of ...

–



FinnairP. O . B O X 1 5 | 0 1 0 5 3 F I N N A I R | F I N L A N D W W W. F I N N A I R . C O M


in fl eet on order Airbus A319-100 9 Airbus A320-200 12 Airbus A321-200 6 Airbus A340-400 1 4Airbus A350-900 9ATR 721 7 Boeing 757-200 7 Boeing (Douglas) MD-11 7 Boeing (Douglas) MD-802 8 Embraer RJ170 10 Embraer RJ190 1 9

Ê Total 68 221 Operated by Aero Airlines.

2 Operated by FlyNordic.

Key Figures

2004 2005 2006 Employees (year avg) 9,522 9,447 9,598Traffi c Scheduled RPK [million] 10,476 11,174 12,653RPK [% growth] 21.2 6.7 13.2Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill]1 1,683 1,871 1,990EBIT [EUR mill]1 31 82 (11)1 Refers to Group fi gures.

Owned by ...

55.78% State of Finland2.43% Odin Norden1.72% Tapiola Group0.75% Swedbank0.52% Nordea Nordic Small Cap

Fund

Alliances


Various code-share agreements, including with Aerofl ot, Air France, American Airlines, British Airways, Brussels Airlines, Czech Airlines, FinnComm Airlines, Iberia, JAL, Malev, Qantas, Sun Air and Ukraine International.

Routes




Far East 57.3%

Europe 33.8%

North Atlantic 8.9%

Management

JukkaHienonen

President & CEO

Owner of ...

100% FlyNordic (Sweden)49% Aero Airlines (Estonia)

SPOTLIGHT ON AEA 45

IberiaW W W. I B E R I A . C O M C A L L E V E L A Z Q U E Z 1 3 0 | 2 8 0 0 6 M A D R I D | S PA I N


in fl eet on order Airbus A319-100 11 13Airbus A320-200 56 10Airbus A321-200 18 1Airbus A340-300 18 Airbus A340-600 13 Boeing 757-200 4 Boeing (Douglas) MD-87 18 Boeing (Douglas) MD-88 12

Ê Total 150 24

Key Figures

2004 2005 2006 Employees (year avg) 1 24,993 24,348 23,901Traffi c Scheduled RPK [million] 45,765 49,019 52,658RPK [% growth] 9.1 7.1 7.4Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 1 4,792.5 4,946.3 5,464.5EBIT [EUR mill]1 181.1 116.6 122.01 Refers to Group fi gures.

Owned by ...

63.43% Privately held26.62% Banks and various

companies9.95% British Airways and

American Airlines Holdings

Alliances


Various code-share agreements, including with American Airlines, Avianca, British Airways, Brussels Airlines, Cathay Pacifi c, Comair, CSA, El Al, Finnair, GB Airways, JAL, LAN Airlines, Mexicana, Royal Air Maroc, Royal Jordanian Airlines, SWISS, Syrian Arab Airlines, TACA, TAROM, TAM and Ukraine International.

Routes




Management

Fernando Conte

Chairman & CEO

Owner of ...

20% Clickair

Latin America 51.9%

Europe 33.6%

North Atlantic 9.6%

Africa 3.5%

Middle East 0.8%

Far East 0.6%


IcelandairR E Y K J A V I K A I R P O R T | 1 0 1 R E Y K J A V I K | I C E L A N D W W W. I C E L A N D A I R . C O M


in fl eet on order Boeing 757-200 9 Boeing 757-300 1 Boeing 767-300 1 Ê Total 11 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,020 1,800 2,7471

Traffi c Scheduled RPK [million] 3,702 4,308 4,254RPK [% growth] 23.4 16.4 (1.3)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [ISK mill] 29,057 31,463 56,1431

EBIT [ISK mill] 385 296 3,3261

1 Refers to Group fi gures.

Owned by ...

Icelandair is 100% owned by Icelandair Group, which is:32.00% langfl ug ehf14.81% naust ehf11.11% Fjárfestingafélagið Máttur

ehf42.08% Others (<10%)

Alliances



Europe 56%

North Atlantic 44%

Management

Jón Karl Ólafsson

President & CEO

Owner of ...

–

–

Routes


SPOTLIGHT ON AEA 47

Jat AirwaysW W W. J AT. C O M B U L E V A R U M E T N O S T I 1 6 | 1 1 0 0 0 B E O G R A D | S E R B I A


in fl eet on order Airbus A319-100 8ATR 72-200 4 Boeing 727-200 2 Boeing 737-300 8 Boeing 737-400 2 Ê Total 16 8

Key Figures

2004 2005 2006 Employees (at 31 Dec) 3,525 2,065 Traffi c Scheduled RPK [million] 1,095 959 1,095RPK [% growth] 5.2 (12.4) 14.1Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [YUN mill] 11,921 12,193 EBIT [YUN mill] (1,188) (1,966)

Owned by ...

100% State ownership

Alliances




Europe 81.1%

Middle East 13.4%

Africa 5.4%

Management

Nebojsa Starcevic

President

Owner of ...

–

Code-share agreements, including with Aerofl ot, Air France, Alitalia, Austrian, CSA and Lufthansa.

Routes


KLMP. O . B O X 7 7 0 0 | S C H I P H O L A I R P O R T 1 1 1 7 Z L | T H E N E T H E R L A N D S W W W. K L M . C O M


in fl eet on order Airbus A330-200 6 4Boeing 737-300 14 Boeing 737-400 13 Boeing 737-800 14 11Boeing 737-900 5 Boeing 747-400 5 Boeing 747-400 Combi 17 Boeing 747-400F 3 1Boeing 737-700 BBJ 1 Boeing 767-300 4 Boeing 777-200 13 2Boeing 777-300 4Boeing (Douglas) MD-11 10 Fokker 50 14 Fokker 70 21 Fokker 100 20

Ê Total 160 22

Key Figures

2004 2005 2006 Employees (at FY end)1 102,077 102,422 103,050Traffi c Scheduled RPK [million] 63,113 68,322 71,769RPK [% growth] 11.6 8.3 5.0Financial Financial Year from 1 Apr 2004 1 Apr 2005 1 Apr 2006Financial Year to 31 Mar 2005 31 Mar 2006 31 Mar 2007Revenues [EUR mill]1 19,467 21,448 23,073EBIT [EUR mill]1 553 936 1,2401 Refers to Air France-KLM Group.

Owned by ...

KLM is 100% owned by Air France-KLM Group, which is:62.7% Public fl oat18.6% State ownership16.3% Air France employees2.4% Treasury stock

Alliances

Member of SkyTeam alliance

Transatlantic Joint Venture with Northwest Airlines.

Various code-share agreements, including with Aer Lingus, Air Europa, Alaska Airlines, China Southern Airlines, Comair, Cyprus Airways, Gulf Air, Kenya Airways, Lithuanian Airlines, Malaysia Airlines, Malev, Meridiana, PGA Portugalia Airlines, TAM and Ukraine International.

Routes



Management

Peter F. Hartman

President & CEO

Owner of ...

100% transavia.com100% KLM UK/cityhopper50% Martinair Holland26% Kenya Airways

CAPI

TAL

PHOT

OS -

Ruud

Taal


Far East 40.9%


Latin America 13.2%

Africa 11.3%

Europe 10.3%

Middle East 4.6%

SPOTLIGHT ON AEA 49

LOT W W W. LO T. C O M U L . 1 7 S T Y C Z N I A 3 9 | 0 0 - 9 0 6 WA R S Z A W A | P O L A N D


in fl eet on order ATR 421 5 ATR 721 8 Boeing 737-400 3 Boeing 737-500 6 Boeing 767-200 2 Boeing 767-300 4 Boeing 787-800 7Embraer RJ145 9 Embraer RJ170 10 Embraer RJ175 4

Ê Total 51 71 Operated by EuroLot.Key Figures

2004 2005 2006 Employees (at 31 Dec) 3,788 3,398 Traffi c Scheduled RPK [million] 5,861 6,223 6,720RPK [% growth] 7.9 6.2 8.0Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [PLN mill] 2,914.2 2,771.7 2,761.4EBIT [PLN mill] (14.3) 91.9 13.0

Owned by ...

67.97% State ownership25.10% Receiver of SAir Lines6.93% Employees

Alliances


Various code-share agreements, including with Air Canada, ANA, Asiana, Austrian, bmi, SAS, South African Airways, Spanair, TAP Portugal, Thai Airways and United Airlines.

Routes





Europe 30.3%

Middle East 1.9%

Management

PiotrSiennicki

CEO

Owner of ...

100% EuroLot100% CentralWings


Lufthansa 2 - 6 V O N - G A B L E N Z - S T R A S S E | 5 0 6 7 9 C O LO G N E | F E D E R A L R E P U B L I C O F G E R M A N Y W W W. LU F T H A N S A . C O M


in fl eet on order Airbus A300-600 13 Airbus A319 18 Airbus A320 36 25Airbus A321 26 5Airbus A330-300 10 5Airbus A340-300 28 Airbus A340-600 14 10Airbus A380 15ATR-42-500 13 ATR-72 15 Avro RJ85 18 Boeing 737-300 33 Boeing 737-500 30 Boeing 747-400 30 Boeing (Douglas) MD-11F 19 Boeing 747-800 20British Aerospace 146 19 Canadair CRJ 100/200 43 Canadair CRJ 700 20 Canadair CRJ 900 12 De Havilland DHC-8-300 5 De Havilland DHC-8-402 5

Ê Total 407 80

Routes




Far East 38.1%


Europe 15.7%

Latin America 6.5%

Africa 5.5%

Middle East 3.0%

Owned by ...

100% Free fl oat

Owner of ...

100% Lufthansa Cargo100% Lufthansa City Line100% Air Dolomiti49% SWISS49% Eurowings30% bmi25% Jade Cargo International14.44% Luxair10% Condor

Alliances


Member of WOW cargo alliance with JAL Cargo, SAS Cargo and Singapore Airlines Cargo.Franchisee: LH Regional (Air Dolomiti, Augsburg Airways, CityLine, Contact Air and Eurowings).Various code-share agreements, including with Aegean Airlines, Air China, Air India, Air Malta, Air One, Jade Cargo International, Luxair, SAA, Shanghai Airlines and SWISS.

Management

Wolfgang Mayrhuber

Chairman & CEO

Key Figures

2004 2005 2006 Employees (at 31 Dec)1 90,673 92,303 94,510Traffi c Scheduled RPK [million] 109,471 112,794 114,672RPK [% growth] 13.3 3.0 1.7Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 16,965 18,065 19,849EBIT [EUR mill] 872 1,0692 1,2992

1 Refers to Group fi gures. - 2 Wthout profi t from discontinued operations of Leisure Travel Segment.

SPOTLIGHT ON AEA 51

Luxair W W W. LU X A I R . LU F I N D E L A I R P O R T | 2 9 8 7 LU X E M B O U R G


in fl eet on order Boeing 737-500 1 Boeing 737-700 3 Bombardier Q400 3Embraer RJ135 2 Embraer RJ145 8 Ê Total 14 3

Key Figures

2004 2005 2006 Employees (at 31 Dec) 2,190 2,210 2,190Traffi c Scheduled RPK [million] 573 566 515RPK [% growth] 4.4 (1.2) (9.0)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 306.0 325.6 333.5EBIT [EUR mill] 3.9 3.2 4.3

Owned by ...

25.2% Banks23.1% State ownership13.4% State-owned bank13.2% Luxair Group and others13.0% Lufthansa12.1% Panalpina World Transport

Alliances



Management

Adrien NeyPresident & CEO

Owner of ...

34.88% Cargolux

Various code-share agreements, including with Air France, Alitalia, Austrian and Lufthansa.

Routes


Europe 100%


MalevK Ö N Y V E S K Á L M Á N K R T. 1 2 - 1 4 | 1 0 9 7 B U D A P E S T | H U N G A R Y W W W. M A L E V. H U


in fl eet on order Boeing 737-600 6 Boeing 737-700 7 Boeing 737-800 5 Boeing 767-200 2 Canadair CRJ-200 4 Fokker 70 5

Ê Total 29 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 3,050 1,787 1,670Traffi c Scheduled RPK [million] 3,584 3,806 4,140RPK [% growth] 8.0 6.2 8.8Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [HUF bn] 124 121 123EBIT [HUF bn] (2.9) (8.5) (14.0)

Owned by ...

99.95% Airbridge Zrt.0.05% Private shareholders and

other organisations

Alliances


Various code-share agreements, including with Aerofl ot, Aerosvit Airlines, Air Europa, Air France, Alitalia, American Airlines, Brussels Airlines, Bulgaria Air, Carpatair, CSA, Finnair, Hainan Airlines, Iberia, JAL, KLM, LOT, Moldavian Airlines, SWISS, TAP Portugal and TAROM.

Routes




Europe 64.7%


Middle East 7.1%

Far East 3.0%

Africa 1.4%

Management

Lloyd Paxton

CEO

Management

Boris Abramovich

Chairman

Owner of ...

100% Malev Express

SPOTLIGHT ON AEA 53

Olympic Airlines WWW.OLYMPICAIRLINES.COM ATHENS INTERNATIONAL AIRPORT, BLDG 97 | 5TH KM SPATA-LOUTSA AVENUE | SPATA 19019 | GREECE


in fl eet on order Airbus A300-600 1Airbus A340-300 4ATR 42-300 6ATR 72-200 7Boeing 717-200 2Boeing 737-300 3Boeing 737-400 13De Havilland DHC-8-100 4 Ê Total 40 0

Key Figures

2004 2005 2006 Employees (at 31 Dec) 1,810 1,781 1,830Traffi c Scheduled RPK [million] 6,788 7,340 7,042RPK [% growth] 6.4 8.1 (4.1)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 643.8 EBIT [EUR mill] (87.1)

Owned by ...


Alliances

Various code-share agreements, including with Aerosvit Airlines, Air Malta, CSA, Cyprus Airways, Egyptair, Gulf Air and Kuwait Airlines.

Routes




Europe 59.6%


Africa 9.1%

Middle East 3.0%

Management

Leonard Odysseas

VlamisCEO

Management

Ilias Karantzalis

Chairman

Owner of ...

–


SAS Scandinavian AirlinesF R Ö S U N D A V I K S A L L É 1 | 1 9 5 8 7 S T O C K H O L M | S W E D E N W W W. F LY S A S . C O M


in fl eet on order Airbus A319-100 2 2Airbus A321-200 8 Airbus A330-300 4 Airbus A340-300 7 Boeing 737-400 4 Boeing 737-500 13 Boeing 737-600 26 Boeing 737-700 15 2Boeing 737-800 13 Boeing (Douglas) MD-81 2 Boeing (Douglas) MD-82 34 Boeing (Douglas) MD-87 8 Bombardier Q400 23 Fokker 50 6

Ê Total 165 5

Routes




Europe 51.6%


Owned by ...

SAS AB, parent company of SAS Scandinavian Airlines, is owned by:21.4% Swedish State14.3% Danish State14.3% Norwegian State50.0% Private interests

Owner of ...

SAS AB, parent company of SAS Scandinavian Airlines, is owner of: 100% Scandinavian Airlines

Denmark 100% SAS Braathens100% Scandinavian Airlines Sverige100% Scandinavian Airlines

International100% Wideroe (Norway)100% Blue1 (Finland)95% Spanair (Spain)95% Aerolineas Baleares (Spain)49% Estonian Air47.2% airBaltic

Alliances

Member of WOW cargo alliance with JAL Cargo, Lufthansa Cargo and Singapore Airlines Cargo.

Various code-share agreements, including with airBaltic, Air China, Austrian, Blue1, bmi, Estonian Air, LOT, Lufthansa, Skyways, Spanair, SWISS, Thai Airways, United Airlines, Wideroe and with Star Alliance members.

Management

Mats JanssonPresident & CEO

Key Figures

2004 2005 2006 Employees (at 31 Dec) 9,254 8,244 7,588Traffi c Scheduled RPK [million] 24,050 27,724 27,506RPK [% growth] 4.5 15.3 (0.8)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [SEK mill] 35,673 36,859 38,631EBIT [SEK mill] (763) 617 1,903

SPOTLIGHT ON AEA 55

SpanairW W W. S PA N A I R . C O M E D I F I C I O S PA N A I R , A P D O C O R R E O S 5 0 0 8 6 | 0 7 6 1 1 PA L M A D E M A L LO R C A | S PA I N


in fl eet on order Airbus A320 16 1Airbus A321 5 Boeing 717 5 3Boeing (Douglas) MD-82 10 Boeing (Douglas) MD-83 15 Boeing (Douglas) MD-87 8 6

Ê Total 59 10

Key Figures

2004 2005 2006 Employees (at 31 Dec) 2,962 3,287 3,442Traffi c Scheduled RPK [million] 5,107 6,225 7,493RPK [% growth] 12.2 21.9 20.4Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 828.9 949.2 1,155.4EBIT [EUR mill] 2.4 13.4 31.4

Owned by ...

94.9% SAS Group5.1% Teinver

Alliances


Various agreements, including with Adria Airways, Air Canada, Air New Zealand, ANA, Asiana Airlines, Austrian, Blue1, bmi, Croatia Airlines, Estonian Air, LOT, Lufthansa, SAS Scandinavian Airlines, Singapore Airlines, South African Airways, SWISS, TAP Portugal, Thai Airways, United Airlines and US Airways.

Routes




Europe 99.4%

Africa 0.6%

Management

Lars Nygaard

CEO

Management

Gonzalo Pascual AriasExecutive President

& Chairman of the Board

Owner of ...

–


SWISSP. O . B O X | 4 0 0 2 B A S E L | S W I T Z E R L A N D W W W. S W I S S . C O M


in fl eet on order Airbus A319 7 Airbus A320 15 2Airbus A321 4 2Airbus A330 11 Airbus A340 9 3Avro RJ85 4 Avro RJ100 20 Embraer RJ170 15Embraer RJ190 15 Ê Total 70 37

Key Figures

2004 2005 2006 Employees (at 31 Dec) 5,967 5,472 5,212Traffi c Scheduled RPK [million] 20,598 20,473 27,506RPK [% growth] (14.9) (0.6) (0.8)Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [CHF mill]1 3,642 3,732 4,153EBIT [CHF mill]1 (122) (55) 2311 Refers to Group fi gures.

Owned by ...

100% Swiss-based AirTrust AG company, which is:

49% Lufthansa51% Swiss-based Almea

Foundation

Alliances



Management

Dr. Christoph Franz

CEO

Routes

Management

Rolf JetzerChairman of the

Board

Owner of ...

100% Swiss European Air Lines


Various code-share agreements, including with Adria Airways, Air Canada, ANA, Austrian, Blue1, Cirrus Airlines, Croatia Airlines, Darwin Airline, LOT, Lufthansa, Malaysian Airlines, Qatar Airways, SAS Scandinavian Airlines, Spanair, TAP Portugal, Thai Airways, Ukraine International Airlines, United Airlines and US Airways



Europe 19.4%

Africa 10.6%

Middle East 7.5%

Latin America 6.4%

SPOTLIGHT ON AEA 57

TAP PortugalW W W. F LY TA P. C O M A PA R TA D O 5 0 1 9 4 | 1 7 0 4 - 8 0 1 L I S B O N | P O R T U G A L


in fl eet on order Airbus A310-300 6 Airbus A319-100 17 Airbus A320-200 15 Airbus A321-200 3 Airbus A330 3 5Airbus A340-300 4 Airbus A350 6 Ê Total 48 11

Key Figures

2004 2005 2006 Employees (at 31 Dec) 5,683 5,664Traffi c Scheduled RPK [million] 13,198 14,394 16,649RPK [% growth] 13.3 9.1 15.7Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [EUR mill] 1,237 1,359 1,654EBIT [EUR mill] (10.6) (9.5) 30.3

Owned by ...


Alliances




Latin America 43.0%

Europe 39.4%

Africa 11.6%

North Atlantic 6.0%

Management

FernandoPintoCEO

Routes

Management

Manuel Pinto BarbosaChairman

Owner of ...

40% Air Sao Tomé e Principe20% Air Macau1

1 Indirect participation through SEAP holding company, in which

TAP holds 60%.


Various code-share agreements, including with Air One, Austrian, bmi, Brussels Airlines, LAM, Lufthansa, LOT, Malev, PGA Portugalia Airlines, SATA, Spanair, SWISS, TACV, United Airlines and Ukraine International Airlines.


TAROM2 2 4 F C A L E A B U C U R E S T I LO R , T O W N O F O T O P E N I | I L F O V C O U N T Y | R O M A N I A W W W. TA R O M . R O


in fl eet on order Airbus A318-100 2 2ATR 42-500 7 Boeing 737-300 5 Boeing 737-700 4 Ê Total 18 2

Key Figures

2004 2005 2006 Employees (at 31 Dec) 2,323 2,326 2,317Traffi c Scheduled RPK [million] 1,329 1,448 1,537RPK [% growth] (14.1) 8.9 6.1Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [USD mill] 259.2 280.8 300.2EBIT [USD mill] 17.6 2.9 5.01

1 Preliminary fi gure.

Owned by ...

95% State ownership2.58% Henri Coanda International

Airport2.18% Romanian Air Traffi c Services0.15% Muntenia (private fi nancial

investment fund)0.09% Romanian Civil Aviation

Authority

Alliances



Europe 83.2%

Middle East 15.1%

Africa 1.8%

Owner of ...

–

Routes

Associate member of SkyTeam alliance.

Various code-share agreements, including with Aerofl ot, Air France, Air Moldova, Alitalia, Austrian, Brussels Airlines, CSA, Iberia, LOT, Malev and Syrian Arab Airlines.


Management

Gheorge Birla

President & CEO

SPOTLIGHT ON AEA 59

Turkish Airlines WWW.TURKISHAIRLINES.COM GENEL MÜDÜRLÜK BINASI | ATATÜRK HAVALIMANI | 34830 YESILKÖY | ISTANBUL | TURKEY


in fl eet on order Airbus A310-200 1 Airbus A310-300 5 Airbus A310-300F 1 Airbus A319-100 2 Airbus A320-200 15 13Airbus A321-100 2 Airbus A321-200 7 10Airbus A330-200 5 Airbus A340-300 7 Boeing 737-400 16 Boeing 737-800 41 8 Ê Total 102 31

Key Figures

2004 2005 2006 Employees (at 31 Dec) 10,956 11,121 10,324Traffi c Scheduled RPK [million] 17,382 19,629 24,335RPK [% growth] 15.5 12.9 24.0Financial Financial Year from 1 Jan 2004 1 Jan 2005 1 Jan 2006Financial Year to 31 Dec 2004 31 Dec 2005 31 Dec 2006Revenues [TRL mill] 2,176 2,340 2,881EBIT [TRL mill] 106.2 62.9 52.9

Owned by ...

49.12% State-owned Privatisation Administration

50.88% Other shareholders

Alliances




Europe 55.5%Far East 26.5%

North Atlantic 9.8%

Middle East 5.7%

Africa 2.5%

Management

Temel KotilCEO

Routes

Management

Candan Karlitekin

Chairman of the Board

Owner of ...

Membership of Star Alliance accepted and to become effective in 2008.

Various code-share agreements, including with Air China, Air India, Air Astana, American Airlines, Croatia Airlines, CSA, Egyptair, Kenya Airways, Kuwait Airlines, Japan Airlines, Lufthansa, LOT, Pakistan Airlines, Royal Air Maroc and SunExpress.

50% SunExpress


Virgin Atlantic AirwaysTHE OFF ICE MANOR ROYAL | CRAWLEY | WEST SUSSEX RH10 9NU | GREAT BR ITA IN W W W. V I R G I N - AT L A N T I C . C O M


in fl eet on order Airbus A340-300 5 Airbus A340-600 19 Airbus A380 6Boeing 747-400 13 Ê Total 37 6

Key Figures

2004 2005 2006 Employees (at 31 Dec) 7,479 8,500 8,400Traffi c Scheduled RPK [million] 30,223 32,103 35,279RPK [% growth] 12.2 6.2 9.9Financial Financial Year from 1 Mar 2004 1 Mar 2005 1 Mar 2006Financial Year to 29 Feb 2005 28 Feb 2006 28 Feb 2007Revenues [GBP mill] 1,630 1,912 EBIT [GBP mill]1 20.1 41.6 1 Refers to Group fi gures.

Owned by ...

51% Virgin Group49% Singapore Airlines

Alliances





Latin America 9.0%

Africa 8.4%

Middle East 1.9%

Management

Steve Ridgway

Chief Executive

Routes

Management

Sir Richard BransonChairman

Owner of ...

49% Virgin Nigeria Airways

Various code-share agreements, including with Air China, ANA, bmi, Continental Airlines, Singapore Airlines, South African Airways and Virgin Blue.


Key Statistics

Traffi c by route area

2006

1Domestic

2 Cross-border

Europe

1+2Total

Europe

3Europe -

North Africa

4Europe -

Middle East

5North

Atlantic[%/pt] [%/pt] [%/pt] [%/pt] [%/pt] [%/pt]

Passengers (000) 109 181.3 1.5 158 744.9 6.1 267 926.2 4 2 4 206 4 8.6 6 858.6 3.9 27 509.9 0.5

Passenger Kilometres (mill) 59 654.6 2.4 166 992.4 7.2 226 647.0 5.9 8 025.4 6.7 23 695.2 9.6 187 996.3 0.7

Share in Tot. Sched. AEA Traffi c (%) 8.1 22.7 30.8 1.1 3.2 25.5

Seat Kilometres (mill) 88 803.2 0.0 241 051.7 4.8 329 855.0 5.9 11 709.0 4.1 33 433.1 13.8 230 548.8 2.0

Passenger Load Factor (%) 67.2 1.6 69.3 1.5 68.7 1.6 68.5 1.7 70.9 -2.7 81.5 -1.1

Total Freight Tonnes Carried (000) 180.1 -2.1 547.0 -4.8 727.1 -4.2 63.7 3.0 234.1 8.3 1 501.0 4.7

Total Freight Tonne-Kilometres (mill) 138.2 -4.2 759.9 -3.9 898.1 -4.0 174.3 1.4 979.3 -1.0 10 116.6 2.3

% Freight on Passenger Services 81.5 80.9 81.0 95.8 87.2 68.1

Total Revenue Tonne-Kilometres (mill) 5 697.1 1.7 16 657.0 6.5 22 354.1 5.3 939.5 5.0 3 295.3 3.6 28 381.4 1.1

Available Tonne-Kilometres (mill) 9 431.8 -1.1 27 169.9 4.3 36 601.7 2.8 1 427.2 1.9 5 129.3 7.5 40 103.5 1.7

Overall Load Factor (%) 60.4 1.7 61.3 1.3 61.1 1.4 65.8 2.0 64.2 -2.4 70.8 -0.4

Average Seats per Aircraft 141 124 128 161 201 275

Average Stage Distance (km) 450 902 724 1 707 2 851 6 532

2006

6Mid

Atlantic

7 South

Atlantic

8Europe -

Sub Saharan Africa

9Europe -Far East/

Australasia

1 - 9Total

ScheduledNon-

Scheduled

[%/pt] [%/pt] [%/pt] [%/pt] [%/pt] [%/pt]

Passengers (000) 6 438.1 2.6 4 834.4 14.0 7 682.7 4.1 17 775.8 11.3 343 400.8 4.4 8 606.2 -12.3

Passenger Kilometres (mill) 49 900.6 2.8 41 509.1 12.8 51 430.4 3.5 147 522.0 9.8 736 952.3 5.4 20 260.7 -10.2

Share in Tot. Sched. AEA Traffi c (%) 6.8 5.6 7.0 20.0 100.0

Seat Kilometres (mill) 60 812.9 2.5 48 104.2 7.9 65 962.1 3.4 182 857.1 8.4 963 615.1 4.5 24 979.8 -13.8

Passenger Load Factor (%) 82.1 0.2 86.3 3.8 78.0 0.0 80.7 1.0 76.5 0.6 81.1 3.3

Total Freight Tonnes Carried (000) 181.8 5.8 242.1 3.3 449.0 3.5 2 022.3 5.7 5 421.9 3.8 28.9 -43.1

Total Freight Tonne-Kilometres (mill) 1 542.1 5.6 2 229.3 6.3 2 999.4 -3.5 17 406.8 6.8 36 347.0 4.0 235.0 -28.6

% Freight on Passenger Services 80.6 58.9 61.8 39.7 54.9 2.5

Total Revenue Tonne-Kilometres (mill) 6 248.3 3.3 6 157.8 9.9 7 874.2 0.6 31 867.2 8.0 107 139.3 4.6 2 097.0 -13.6

Available Tonne-Kilometres (mill) 9 017.9 2.8 8 232.4 5.6 11 317.3 -1.4 43 930.7 8.4 155 792.4 4.0 3 112.8 -12.8

Overall Load Factor (%) 69.3 0.3 74.8 2.9 69.6 1.3 72.5 -0.3 68.8 0.4 67.4 -0.6

Average Seats per Aircraft 329 293 271 286 197 176

Average Stage Distance (km) 6 574 6 952 5 079 6 925 1 281 1 858

SPOTLIGHT ON AEA - KEY STATIST ICS 63

2006

Passengers RevenuePassengerKilometres

AvailableSeat

Kilometres

LoadFactor

FreightTonnesCarried

FreightTonne

Kilometres

RevenueTonne

Kilometres

AvailableTonne

Kilometres

OverallLoadFactor

[000] [%] (mill) [%] (mill) [%] (%) [pt] [000] [%] (mill) [%] (mill) [%] (mill) [%] (%) [pt]

Adria Airways 850.0 12.2 772.9 9.4 1 216.4 3.0 63.5 3.7 4.2 40.4 3.4 29.4 71.8 8.4 133.0 6.0 54.0 1.2

Aer Lingus

Air France 49 348.8 4.7 123 335.6 6.4 155 409.7 5.6 79.4 0.6 784.4 5.2 5 854.9 6.0 17 103.3 6.1 23 741.9 4.7 72.0 0.9

Air Malta 1 478.7 7.8 2 385.3 4.1 3 495.2 4.8 68.2 -0.5 7.5 -1.3 11.9 -4.4 214.7 4.1 370.9 2.4 57.9 0.9

Air One 5 662.6 7.6 3 380.4 7.2 5 849.5 6.8 57.8 0.2 0.0 0.0 0.0 0.0 304.2 7.2 526.5 6.8 57.8 0.2

Alitalia 24 090.8 0.2 37 739.9 1.3 51 283.9 -1.7 73.6 2.2 215.1 8.4 1 513.0 10.8 5 287.9 3.6 7 727.2 3.7 68.4 -0.1

Austrian 8 773.0 9.3 19 889.9 5.6 26 814.2 5.3 74.2 0.2 97.1 7.0 587.1 6.5 2 708.0 5.9 3 737.7 5.6 72.5 0.2

bmi 9 655.3 -3.4 8 652.0 -2.0 12 495.0 -0.4 69.2 -1.2 33.1 21.1 144.8 36.0 925.9 2.2 1 737.8 23.4 53.3 -11.0

British Airways 36 086.9 1.6 114 896.4 3.5 150 700.8 2.7 76.2 0.6 694.5 -0.7 4 733.2 -0.7 15 182.5 2.2 23 172.8 1.5 65.5 0.5

Brussels Airlines 3 415.9 6.4 4 850.7 6.4 7 503.9 3.7 64.6 1.6 14.4 -6.9 75.4 -7.1 516.0 4.0 886.3 4.7 58.2 -0.4

Cargolux - - - - - - - - 707.9 2.6 5 180.4 1.5 5 180.4 1.5 7 128.8 -1.7 72.7 2.3

Croatia Airlines 1 370.2 2.1 1 004.5 3.2 1 657.9 -1.7 60.6 2.9 3.5 -9.9 2.1 -12.1 93.1 2.9 181.6 -1.7 51.3 2.3

CSA 4 668.9 3.9 6 387.9 -0.1 9 161.2 -2.4 69.7 1.6 19.2 4.4 39.4 1.5 620.0 0.0 1 019.6 -1.4 60.8 0.9

Cyprus Airways 1 601.7 1.2 3 267.5 2.5 4 474.9 0.0 73.0 1.8 17.8 -1.0 46.5 -0.3 344.2 2.0 560.1 0.6 61.5 0.8

Finnair 6 427.6 6.9 12 652.8 13.2 17 476.8 7.3 72.4 3.8 73.8 8.6 408.4 15.6 1 554.5 13.6 2 819.2 9.5 55.1 2.0

Iberia 27 227.6 0.8 52 658.3 7.4 66 030.3 3.8 79.7 2.7 189.7 0.2 1 025.8 7.8 5 823.1 7.5 9 168.4 3.3 63.5 2.5

Icelandair 1 536.2 0.5 4 253.8 -1.3 5 591.5 0.8 76.1 -1.6 9.8 -4.7 28.9 7.4 393.1 -6.5 681.7 11.1 57.7 -10.9

Jat Airways 1 098.5 19.6 1 094.5 14.1 1 963.9 9.6 55.7 2.2 3.2 -6.8 4.1 -10.1 102.9 12.7 223.7 11.9 46.0 0.3

KLM 22 366.2 3.9 71 768.8 5.0 85 697.9 4.7 83.7 0.3 594.6 3.6 4 703.4 1.1 12 043.9 3.1 15 083.2 3.0 79.8 0.1

LOT 3 701.4 4.2 6 719.7 8.0 9 061.3 7.8 74.2 0.1 16.8 10.6 80.1 12.4 742.5 8.1 1 226.9 9.7 60.5 -0.9

Lufthansa 51 194.3 4.6 114 671.8 1.7 145 931.2 1.6 78.6 0.0 1 197.1 5.7 8 090.6 5.3 19 897.1 3.3 27 121.5 1.9 73.4 1.0

Luxair 818.1 -3.9 515.4 -8.9 929.2 -9.7 55.5 0.5 0.1 -51.1 0.1 -46.1 46.4 -9.5 83.8 -9.6 55.4 0.1

Malev 2 921.2 6.8 4 139.9 8.8 6 151.6 7.8 67.3 0.6 9.5 19.2 24.5 14.2 400.7 8.9 807.1 6.1 49.6 1.3

Olympic Airlines 5 642.2 -2.4 7 041.8 -4.1 10 243.1 -2.0 68.7 -1.5 26.5 5.8 64.4 12.0 734.1 -2.7 1 295.0 -6.2 56.7 2.0

SAS 25 098.8 0.3 27 505.5 -0.8 36 970.9 -3.9 74.4 2.3 106.7 -7.1 605.8 -4.3 3 398.3 -1.6 4 730.7 -3.4 71.8 1.4

Spanair 8 211.4 19.9 7 492.6 20.4 11 015.7 13.2 68.0 4.0 10.2 6.4 13.9 4.0 674.3 17.1 991.4 3.6 68.0 7.8

SWISS 10 637.5 10.2 22 075.9 7.8 27 675.2 5.6 79.8 1.6 181.8 -9.1 1 039.0 -6.4 3 276.6 2.8 4 798.3 2.9 68.3 -0.1

TAP Portugal 6 890.9 5.0 16 648.7 15.7 22 870.7 14.9 72.8 0.5 60.6 13.4 282.7 26.2 1 805.2 17.0 3 068.0 17.9 58.8 -0.4

TAROM 1 282.4 7.7 1 536.7 6.1 2 466.5 3.8 62.3 1.3 3.1 -2.0 4.9 -3.8 144.0 5.8 440.3 7.9 32.7 -0.6

Turkish Airlines 16 437.1 20.6 24 334.5 24.0 35 209.6 29.5 69.1 -3.1 155.7 10.9 446.9 10.7 2 902.8 17.2 4 666.9 23.2 62.2 -3.2

Virgin Atlantic 4 906.9 8.6 35 278.5 9.9 48 267.0 12.0 73.1 -1.4 183.9 16.2 1 331.6 15.1 4 647.8 11.3 7 662.2 11.4 60.7 0.0

AEA 343 400.8 4.4 736 952.3 5.4 963 615.1 4.5 76.5 0.6 5 421.9 3.8 36 347.0 4.0 107 139.3 4.6 155 792.4 4.0 68.8 0.4

Total Scheduled - Passenger & All-Cargo Services


Glossary

AAPA Association of Asia Pacifi c Airlines, with headquarters in Kuala Lumpur.

Air Freedom Rights The liberalisation of European air transport, started in 1988 and com-pleted in 1997 with the so-called ‘Third Package’ of measures included rights of market access, which are defi ned as follows. First freedom: to overfl y one country en-route to an-other; Second freedom: to make a technical stop in another country; Third freedom: to carry passengers from the home country to another country; Fourth freedom: to carry pas-sengers to the home country from an-other country; Fifth freedom: to carry passengers between two countries by an airline of a third on a route with origin/destination in its home country; Sixth freedom: to carry passengers between two countries by an airline of a third on two routes connecting in its home country; Seventh freedom: to carry passengers between two coun-tries by an airline of a third on a route outside its home country; Eighth free-dom or cabotage: to carry passen-gers within a country by an airline of another country on a route with origin/destination in its home country; Ninth freedom or Stand-Alone cabotage: to carry passengers within a country by an airline of another country; True domestic: to carry passengers by an airline in its home country.

Association ofEuropean Airlines (AEA)A non-profi t association for the Eu-ropean airline industry with following members: Adria Airways (JP), Aer Lingus (EI), Air France (AF), Air Malta (KM), Alitalia (AZ), Austrian (OS), bmi (BD), British Airways (BA), Brussels Airlines (SN), Cargolux Airlines Inter-national (CV), Croatia Airlines (OU), CSA Czech Airlines (OK), Cyprus Airways (CY), Finnair (AY), Iberia (IB), Icelandair (FI), JAT Airways (JU), KLM

(KL), LOT Polish Airlines (LO), Luf-thansa (LH), Luxair (LG), Malev Hun-garian Airlines (MA), Olympic Airlines (OA), SAS (SK), Spanair (JK), SWISS (LX), TAP Portugal (TP), TAROM (RO), Turkish Airlines (TK), Virgin Atlantic Airways (VS).

ATC. Air Traffi c Control.

Available Seat-Kilometres (ASK)The total number of seats available for the transportation of revenue passen-gers multiplied by the number of kilo-metres which those seats are fl own.

Available Tonne-Kilometres (ATK)The total number of metric tonnes available for the transportation of pas-sengers, freight and mail multiplied by the number of kilometres which this ca-pacity is fl own.

Breakeven Load Factor (%)The load factor at which operating rev-enues will cover operating costs. Unit cost divided by yield.

CAACivil Aviation Authority.

CFMUCentral Flow Management Unit, of Eu-rocontrol.

CODACentral Offi ce for Delay Analysis.

Code-sharingA marketing practice by which several airlines put their two-letter code on one fl ight.

Computer Reservation System (CRS)A system for reserving seats on com-mercial fl ights electronically by a travel agent.

DGCADirectorate General of Civil Aviation.

DistancesAirport-to-Airport great circle distances are used.

ECACEuropean Civil Aviation Conference, with headquarters in Paris.

ECOFINDirectorate General for Economic and Financial Affairs of the European Union.

EUEuropean Union. The following coun-tries joined, in 1958 Belgium, France, Germany (west), Italy, Luxembourg, Netherlands; in 1973 Denmark, Ireland, United Kingdom, (from 1981), Greece; in 1986 Portugal, Spain; in 1995 Aus-tria, Finland and Sweden, in 2004 Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Po-land, the Slovak Republic and Slovenia and in 2007 Bulgaria, Romania.

EurocontrolEuropean Organisation for the Safety of Air Navigation.

Geographical RegionsFor reporting related to the air trans-port operations of member airlines the following regions are identifi ed: 1) Domestic: within a country which is the main place of business of the reporting carrier. In the case of SAS, which covers three countries, domes-tic refers to services within each of the three countries, but not services be-tween those countries; 2) Geographi-cal Europe: cross-border services within the geographic area Europe, including Russia up to 55°E; 3) Mid-dle East: to/from the Middle East; 4) North Africa: services to/from Algeria, Egypt, Libya, Morocco, Sudan and Tu-nisia; 5) Sub-Saharan Africa: services to/from African countries not included

SPOTLIGHT ON AEA - KEY STATIST ICS 65

in North Africa; 6) North Atlantic: ser-vices to/from USA and Canada; 7) Mid Atlantic, services to/from Central America; 8) South Atlantic: services to/from South America.; 9) Far East/Australia: services to/from points East of the Middle East. All of the above relate to scheduled services only. Ag-gregate non-scheduled or charter ser-vices are reported separately. Calcu-lated regions include: a) Europe Total: 1+2; b) International Short/Medium Haul: 2+3+4; c) Total Longhaul: 5 to 9; d) Total International: 2-9; e) Total Scheduled: 1-9.

IACAInternational Air Carrier Association: worldwide membership of leisure (non-scheduled) air carriers.

IATAInternational Air Transport Association, with headquarters in Geneva and Mon-treal.

ICAOInternational Civil Aviation Organisa-tion, with headquarters in Montreal, Canada.

OAGOffi cial Airline Guide, includes sched-uled timetables for most airlines.

OECDOrganisation for Economic Co-Opera-tion & Development.

Operating RatioThe relationship between operating revenues and operating expenses. The latter may be inclusive or exclusive of net interest.

Overall Load Factor %The percentage of total capacity avail-able for passengers, freight and mail which is actually sold and utilised. Computed by dividing total revenue tonne-kilometres actually fl own by total available tonne-kilometres.

Passenger Load Factor (PLF %)The percentage of seating capac-ity which is actually sold and utilised. Computed by dividing revenue pas-senger-kilometres fl own by available seat-kilometres fl own on revenue pas-senger services.

Non-scheduled servicesAre defi ned as ‘Non-scheduled ser-vices’: charter fl ights and special fl ights performed for remuneration on an irreg-ular basis, including empty fl ights and blocked-off charters, other than those reported under scheduled services. Blocked-off charters: when the whole ca-pacity of an aircraft is reserved for charter sale on fl ights published as scheduled but carried out as charter fl ights on the same or similar routing and timetable.

Revenue FreightAll freight counted on a point-to-point basis (in metric tonnes) covered by air waybills for which remuneration is received. Freight carried on trucking services is not included.

Revenue Passengers CarriedA passenger for whose transporta-tion an air carrier receives commercial remuneration. This includes, for ex-ample, (i) passengers travelling under publicly available promotional offers (for example “two-for-one”) or loyalty programmes (for example redemption of frequent fl yer points); (ii) passengers travelling as compensation for denied boarding; (iii) passengers travelling at corporate discounts; (iv) passengers travelling on preferential fares (govern-ment, seamen, military, youth, student etc). Are excluded, for example, (i) per-sons travelling free; (ii) persons travel-ling at a fare or discount available only to employees of air carriers or their agents or only for travel on the business of the carriers; (iii) infants who do not occupy a seat.

Revenue Passenger-Kilometres (RPK)One fare-paying passenger transport-ed one kilometre. RPK’s are computed by multiplying the number of revenue passengers by the kilometres they are fl own.

Revenue Tonne-Kilometres (RTK)One tonne of revenue traffi c transported one kilometre. Revenue tonne-kilome-tres are computed by multiplying met-ric tonnes of revenue traffi c (passen-ger, freight and mail) by the kilometres which this traffi c is fl own. Passenger tonne-kilometres are calculated using standard weights (including baggage) which may differ between airlines and between domestic/short/long-haul.

Scheduled ServicesFlights scheduled and performed for remuneration according to a published timetable, or so regular or frequent as to constitute a recognisably systematic series, which are open to direct book-ing by members of the public. Extra fl ights occasioned by overfl ow traffi c from scheduled fl ights and preparatory revenue fl ights on planned air services are also considered to be scheduled services.

Unit CostThe average operating cost incurred per available tonne-kilometre.Yield. The average amount of revenue received per revenue tonne-kilometre. Passenger yield: passenger revenue per RPK.

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