Aviation Market in the Commonwealth of Independent States.
         Releasing the Full Potential.

         Авиция в СНГ.
...
Management Summary


    CIS airlines show enormous growth potential
             As in the last years traffic will contin...
Agenda


             Facts & Figures about the CIS aviation market

             Challenges in the next years

          ...
During the last ten years traffic of CIS-Airlines doubled.
Productivity of CIS aircraft fleet grew at 75%.


             ...
Until 2026 CIS traffic will be one of the fastes growing markets.
Growth rates of 8% percent are possible.


         The ...
Agenda


             Facts & Figures about the CIS aviation market

             Challenges in the next years

          ...
The challenge of today‘s expansion

                                                         is to stay on top tomrrow !

...
To be competetive in the future, three key areas of activity have
to be considered.


    1           Productivity        ...
1


A successful expansion needs to be based on a solid load
factor on the existing network.

               RPK per A/C (...
1


With improved productivity, airlines from the CIS can realize
market opportunities and expand their business successfu...
2



Strategy of CIS airlines will be mainly driven by two aspects.



                    Market Consolidation

         ...
3


The EU-ETS will change the entire airline business by increasing
economical risk and complexity for all airlines.


  ...
Agenda


             Facts & Figures about the CIS aviation market

             Challenges in the next years

          ...
Aviation Experts – we are the specialists among consultancies.




               We are freelance consultants with severa...
We envision enabling our clients to become actors instead of reactors, by
developing innovative solutions to become the le...
Our guidelines – your benefit.



                                                                          Our Guidelines...
We demonstrated our ability at numeruos clients.




 17


 09.08.2009   Aviation Market in the Commonwealth of Independen...
Short personal profile of Christian Lambertus, Bachelor of Arts Aviation Management



Career
06/2009               Freela...
Short profile of Benjamin Walther, Bachelor of Science in Business Informations Systems



Career
06/2009               Fr...
For further information please contact us.


     Your contacts:




             Christian Lambertus               T +49 ...
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Aviation Market in the Commonwealth of Idependent States (CIS)

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Aviation Market in the Commonwealth of Idependent States (CIS)

  1. 1. Aviation Market in the Commonwealth of Independent States. Releasing the Full Potential. Авиция в СНГ. Использование полного потэнциала. Benjamin Walther Christian Lambertus T +49 (0) 170 354 365 8 T +49 (0) 176 830 233 87 mail bwalther@aviationexperts.de mail clambertus@aviationexperts.de visit www.aviationexperts.de visit www.aviationexperts.de 1 | 27
  2. 2. Management Summary CIS airlines show enormous growth potential As in the last years traffic will continue to grow by over 6% per year until 2026. This growth rates exceed the world’s average. International routes to Asia and Europe will be the main markets for expansion. Growing traffic will lead to more competition and increasing requirements CIS airlines will have to further optimize their processes to stay competitive to airlines from western Europe. Furthermore airlines have to define clear strategies, which allow them to adjust their business with regard to changing market requirements. New regulations like the European Emission Trading Scheme will further increase the complexity of the airline business. CIS-airlines should prepare for these challenges. Aviation Experts can support you in these challenging times Profit from our large industry expertise and methodical skills when realizing your visions. We share our knowledge with you and guarantee high quality results. 2 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  3. 3. Agenda Facts & Figures about the CIS aviation market Challenges in the next years Our support 3 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  4. 4. During the last ten years traffic of CIS-Airlines doubled. Productivity of CIS aircraft fleet grew at 75%. Monthly ASK traffic (billions) RPK per aircraft (Index base 100 in 1999) + 75% Between 1999 and 2007 CIS international and The current CIS fleet is 75% more productive regional markets have doubled. than the fleet of 1999. In five years between 2002 and 2007 3.8 Increased productivity is mainly based on the billion additional ASK were offered. renewal of aircraft fleets. 4 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  5. 5. Until 2026 CIS traffic will be one of the fastes growing markets. Growth rates of 8% percent are possible. The strong growth between 1999 and CIS Traffic (yearly growth) 2007 – 2016 2007 – 2026 2007 will continue until at least 2026. Total passenger traffic 7,5% 6,3% International markets will grow slightly quicker than domestic markets. Domestic & intra-regional traffic 7,2% 6,1% The average groth rate will far exceed International traffic 7,7% 6,4% the world average. Total freight traffic 6,4% 5,5% Europe 7,2% CIS Routes to Asia-Pascific regions will be North 7,2 America the strongest growing market. 7,8% But traffic to North America, Latin Middle Asia America, Africa & Middle East are also East Pacific 8,1% 8,6% expected to grow in excess of 8% until Latin Africa America 8,4% 2026. 8,5% RPKs growth: Annual average 2007 - 2016 5 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  6. 6. Agenda Facts & Figures about the CIS aviation market Challenges in the next years Our support 6 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  7. 7. The challenge of today‘s expansion is to stay on top tomrrow ! 7 09.08.2009 Emission Trading Scheme 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  8. 8. To be competetive in the future, three key areas of activity have to be considered. 1 Productivity 2 Strategy 3 Compliance CIS airlines have to Airlines have to face Compliance will be a further optimize their upcoming years of dominating topic in productivity in order market growth with a the next years. to become fully clearly defined competitive with strategy. international airlines. The European Emission Trading The strategy has to Scheme (EU ETS) To achieve this goal, cover the areas of and regarding three key areas future network & impacts are ranked (processes, IT & routes, competition & first in this context. people) have to market share as well considered. as merge & acquisitions. 8 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  9. 9. 1 A successful expansion needs to be based on a solid load factor on the existing network. RPK per A/C (2007 - in mio.) Load Factor (2007) First, CIS airlines should strengthen their existing network to create a strong base for expansion. Until new destinations are developed, airlines will face low SLF and Yields. During this time, airlines can cover the impact of expansion with their solid network of established routes. Beside RPK and Load Factor values, CIS airlines primarily have to improve their aircraft utilization. Advantages of CIS airlines are low labor costs for production and availability of resources. 9 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  10. 10. 1 With improved productivity, airlines from the CIS can realize market opportunities and expand their business successfully. Airline Management Operations Management Development of a Corporate Network Optimization of maintenance events and Revenue Management Reduction of ground times. Monitoring of Network Performance Optimization of operational flight Evaluation and adjustment of a planning through additional rules (i. e. business strategy. critical rotations, homebase concepts, trunk routes) Fields of Improvement Usage of e-Ticketing to cut costs Reduction of fuel consumption and make ticket purchase easier. through internal initiatives. Implementation of new IT systems Optimization of flight schedules to reduce to improve processes. fuel consumption ( FuBaRO) Development of an Environment and Emission Trading Strategy. Information Technology Environment & Fuel 10 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  11. 11. 2 Strategy of CIS airlines will be mainly driven by two aspects. Market Consolidation Airlines have to… • Market consolidation of CIS airline market will go on until 2015. …develop a clear strategy how to • It is estimated that there will be only 15 major face future challenges and airlines in Russia (current ~100) in 2015. competition. • In other CIS and Eastern European States a similar development can be noticed. …align their business with regard to changing competition. …be optimally positioned to react Increasing Competition flexible on changing market requirements. • CIS & Eastern European Airlines are getting …introduce new business model more and more in close competition with Asian (i. e. additional code sharing) to and European carrier. benefit from market growth. • Moreover Low Cost-Market will grow in the next years and will increase the competitive pressure. 11 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  12. 12. 3 The EU-ETS will change the entire airline business by increasing economical risk and complexity for all airlines. What is it about? Impact The intention for the first period of Compliance and trading EU-ETS is the compliance of all Airlines will compete will impact business decisions airlines to the new regulations and on an additional non-aviation (i. e. strategic business model, processes. market: carbon hedging and expansion plans, network allowance trading! The second period from 2013 on planning, etc.). will focus on an active and structured allowance market, aiming for realization of opportunities to improve the Non participation Additional risks competitive standing of each in the trading market will waste are introduced which threaten a market participant. opportunities to reduce the healthy airline and endanger financial impact. current market position. Without a thorough risk management airlines are in danger to waste money when decisions are not made with full account of ETS. 12 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  13. 13. Agenda Facts & Figures about the CIS aviation market Challenges in the next years Our support 13 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  14. 14. Aviation Experts – we are the specialists among consultancies. We are freelance consultants with several years of industry experience gained in operations, line management and consulting projects. We offer our support to all industry members having the need for broad expertise, innovation and manpower. We help you to develop visions and realize plans and projects. 14 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  15. 15. We envision enabling our clients to become actors instead of reactors, by developing innovative solutions to become the leading edge in every detail. Our Mission Share our client's vision! Enable our clients to concentrate on their core competency: Flying! Develop sustainable solutions to guarantee long- term benefits! Realize opportunities! 15 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  16. 16. Our guidelines – your benefit. Our Guidelines Face to service! No anonymous resources, but direct responsibility for delivery. Come in – Perform – Leave! Especially for small tasks of limited number of mandays, Aviation Experts are a good choice. Higher motivation lead to higher quality of delivery, as personal standing of the consultant is involved. Competitive pricing models leading ensuring high value for money! Industry knowledge is guaranteed! Our consultants all come from within the industry and combine experience in aviation with proven methods . 16 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  17. 17. We demonstrated our ability at numeruos clients. 17 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  18. 18. Short personal profile of Christian Lambertus, Bachelor of Arts Aviation Management Career 06/2009 Freelancer, Aviation Experts 03/2009 Senior Consultant, Cassini Consulting GmbH 04/2007 Consultant, m2p Consulting GmbH 03/2006 Network Performance Officer, Qatar Airways 01/2001 Apron Controller (ATC), Fraport AG (Frankfurt Intl. Airport) Competencies Skills Process analysis, modelling and documentation, Requirement engineering and management, Preparation of functional specifications, Tender preparation and realization, Moderation of Workshops, Extensive aviation expertise an experience (Airline & Airport Operations) Projects (Extract) Air India, Mumbai: Project Manager for implementing an Integrated Operations Control Center. Development of operational processes and requirement management for supporting IT-landscape. Tender management and vendor selection. Berlin Airport, Berlin: Project Manager for preparation of requirement Christian Lambertus Bacherlor of Arts documents and realization of tender for new traffic management systems of new Berlin-Brandenburg Intl. Airport (BBI). T +49 (0) 176 830 233 87 mail: clambertus@aviationexperts.de Qatar Airways, Doha: Project Manager for implementation of a network visit www.aviationexperts.de performance unit for profitability analysis and corporate development. Manage and operate the new unit also include network planning. 18 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  19. 19. Short profile of Benjamin Walther, Bachelor of Science in Business Informations Systems Career 06/2009 Freelancer, Aviation Experts 01/2009 Senior Consultant, Cassini Consulting GmbH 09/2006 Consultant, m2p Consulting GmbH 09/2005 Working student, Fraport AG Competencies Skills Testing & Test Management, Analysis & Documentation of Processes and Requirements, Moderation and Presentation, Aviation Sector (Airline- & Airport Operations, Maintenace & Engineering) Projects (Extract) Air India, Mumbai: Project Manager for implementing an Integrated Operations Control Center. Development of operational processes and requirement management for supporting IT-landscape. Tender management and vendor selection. Berlin Airport, Berlin: Project Manager for preparation of requirement Benjamin Walther documents and realization of tender for new traffic management systems of Bacherlor of Science new Berlin-Brandenburg Intl. Airport (BBI). T +49 (0) 170 354 365 8 mail: bwalther@aviationexperts.de Lufthansa, Frankfurt: Test- & Quality management within the development visit www.aviationexperts.de of the Operations Control System. Preparation of test concepts and system specification. 19 09.08.2009 Aviation Market in the Commonwealth of Independent States.
  20. 20. For further information please contact us. Your contacts: Christian Lambertus T +49 (0)176 830 233 87 clambertus@aviationexperts.de www.aviationexperts.de Benjamin Walther T +49 (0)170 354 365 8 bwalther@aviationexperts.de www.aviationexperts.de 20 09.08.2009 Aviation Market in the Commonwealth of Independent States.

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