Long-haul Airlines - UK - June 2009

Table of Contents

• Issues in the Market
• Key issues:
• Definitions
• Abbreviations
• Market in Brief
• The long-haul picture
• Clouds on the horizon
• Well-off, connected and unconcerned
• The long and the short (and the cheap) of it
• Flying in to the future
• Internal Market Environment
• Key points
• Recessionary impacts
  • Figure 1: Domestic and overseas holiday volumes, 2004-09
  • Figure 2: Domestic and overseas holiday expenditure at current values, 2004-09
  • Figure 3: Average spend per trip, 2004-09
• Which airport?
  • Figure 4: Passenger movement (scheduled and non-scheduled) at UK airports, 2004-08
  • Figure 5: Aircraft movement at UK airports, 2004-08
• Regional repercussions
  • Figure 6: Overseas journeys, by region, 2004-08
  • Figure 7: Top 15 holiday destinations 2008, by number of visits, 2004-08
• Who goes?
  • Figure 8: Percentage of adults booking UK and overseas holidays, 2004-08
• Air Passenger Duty
• Environmental (non) impact
• Long-haul low-cost
• Pigs might not fly
• Impact of Open Skies
• Broader Market Environment
• Key points
• Confidence returning?
  • Figure 9: Consumer Confidence Index, April 2008-April 2009
  • Figure 10: Trends in personal disposable income and consumer expenditure, 2004-14
• High fliers
  • Figure 11: Forecast adult population trends, by socio-economic group, 2004, 2009 and 2014
  • Figure 12: Forecast adult population trends, by lifestage, 2004, 2009 and 2014
• Ageing along
  • Figure 13: Trends in the age structure of the UK population, by gender, 2004, 2009 and 2014
  • Figure 14: UK household sizes, 2004, 2009 and 2014
• Internet penetration
  • Figure 15: British internet penetration at home/work/place of study or elsewhere, by gender, socio-economic group, age, region and working status, 2004-09
• Spending priorities favour holidays
  • Figure 16: Expenditure priorities for the year ahead, January 2009
• Exchange rates
  • Figure 17: Sterling exchange rates at 31 March, 2005-09
• Oil on the up
  • Figure 18: Crude oil prices, 2004-09
• Competitive Context
• Key points
• Long vs short
  • Figure 19: Long-haul vs short-haul all visits, by air volume and expenditure, at current prices, 2004-09
  • Figure 20: Long-haul vs short-haul all holidays, by air volume and expenditure, at current prices, 2004-09
• The price is right?
• The Comfort Zone
• Strengths and Weaknesses
• Strengths
• Fuel prices
• Euro exchange rate
• Aircraft improvements
• Open Skies
• Low-cost possibilities
• Weaknesses
• Dollar exchange rate
• Air Passenger Duty
• Economic climate
• Reliance on oil
• Environmental pressure
• Market Size and Forecast
• Key points
  • Figure 21: Passengers uplifted -- all vs long-haul, 2004-14
• Past
• Present
• Future
• Factors used in the forecast
• Segment Performance
• Key points
• Far away holiday; no business here
  • Figure 22: Long-haul air used for method of travel, last/last but one holiday, 2004-08
• Long-haul airport use
  • Figure 23: Airports used for long-haul flights in the last 12 months, 2004-08
• Factorisation
  • Figure 24: Most important factor when choosing which airline to fly with on holiday, 2004-08
• Market Share
• Key points
• Delta is alpha dog
  • Figure 25: All passengers carried by selected long-haul airlines, 2004-08
  • Figure 26: Number of active aircraft, 2008
• Companies and Products
• Key points
• Alliances
  • Figure 27: Airline alliances, June 2008
• British Airways
• Virgin Atlantic
• Singapore Airlines
• AirAsia X
• Emirates
• Qatar Airways
• Thai Airways
• Qantas
• Delta Air Lines
• bmi
• Channels to Market
• Key points
  • Figure 38: Method used to book last holiday overseas, by those who flew long-haul, 2004-08
• Online on the up
• But offline lives on
• What Holidaymakers Look For
• Key points
• Kicking back under a cloudless sky
  • Figure 39: Key factors looked for in a holiday, April 2009
• Sun over lounging for young and old
• Getting away
• Mid-haul marketing
• Who Flies Long-haul?
• Key points
  • Figure 40: Flights taken in the past three years, April 2009
• Long-haul Londoners
• Mid-haul much the same
• Scheduled vs chartered
• Mid-haul appeal for middle class
• None/never flyers
• Appendix -- What Holidaymakers Look For
  • Figure 46: Most popular factors looked for in a holiday, by demographics, April 2009
  • Figure 47: Next most popular factors looked for in a holiday, by demographics, April 2009
  • Figure 48: Least popular factors looked for in a holiday, by demographics, April 2009
• Appendix -- Who Flies Long-haul
  • Figure 49: Most popular flights taken in the past three years, by demographics, April 2009
  • Figure 50: Least popular flights taken in the past three years, by demographics, April 2009