Low-cost and Regional Airlines - Ireland - December 2004

Contents

Introduction and Abbreviations

• Definitions
• Regional definitions
• Conversion factors
• Population
• Exchange rates
• BMRB Target Group Index (TGI) sample sizes
• Abbreviations

Executive Summary

25.4 million passenger movements through Irish airports

NI airports experience more growth

People take more holidays

Oil prices weed out the weak

GB service accounts for most volume

On-trade changes may have long-term effect on tourism

Low-cost airlines have altered the industry

17.7 million passengers by 2009

Market Drivers

The travelling Irish

• Figure 1: Propensity to travel abroad of European countries, trips measured against population, 2001/02

The changing number of holidays

• Figure 2: Domestic adults who went on holiday in last 12 months, by number of holidays, NI andRoI, 1998, 2001 and 2004

The economy and business travel

• Figure 3: Health of the economy, NI and RoI, 2002-05
• Figure 4: Number of domestic passengers travelling for business, RoI, 1999-2004

International tourists and their reasons for visiting Ireland

• Figure 5: Reasons for travel to NI by international visitors (using any means of transport), NI,2000-03
• Figure 6: Reasons for travel to RoI by international visitors, RoI, 2000-03

Do tourists care for fresh air?

Oil prices

• Figure 7: Trends in crude oil prices, 1999-2004

Household size

• Figure 8: Average household size, NI and RoI, 2000, 2004 and 2008

Death of a travel agent

• Figure 9: How flights were booked by passengers to Ireland, by region of origin, 2003

Foreign airlines stealing Irish passengers

Internet booking is the norm

• Figure 10: Respondents with access to the Internet, NI and RoI, 2000-04
• Figure 11: Internet penetration by age group, NI and RoI, 2004

Market Size

• Figure 12: Passenger movements by point of origin, all Ireland, 1999-2004
• Figure 13: Passenger movements by point of origin, all Ireland, 1999-2004

Northern Ireland

• Figure 14: Passenger air trips by nationality of passengers, to or from NI, 1999-2004

Republic of Ireland

• Figure 15: Passenger trips by point of origin, to or from RoI, 1999-2004

Market Segmentation

Where the residents go

• Northern Ireland residents
• Figure 16: Number of trips to international destinations by air, by NI residents, 2001 and 2003
• Republic of Ireland residents
• Figure 17: Number of trips to international destinations by air, by RoI residents, 2001 and 2003

Where the tourists come from

• Figure 18: Where Irelands tourists come from, by region, NI and RoI, 2003
• Travellers to Northern Ireland
• Figure 19: Where NIs tourists come from, by region, 1999, 2001 and 2003
• Travellers to the Republic of Ireland
• Figure 20: Where RoIs tourists come from, by region, 1999, 2001 and 2003

The Supply Structure

• Figure 21: Airlines operating to or from Irish airports, 2004

Low-cost/no-frills airlines

• Aer Arann
• Bmibaby
• BudgetAir
• CityJet
• easyJet Airline Company plc
• Figure 22: easyJet financial results, 1999-2003
• EUjet
• Flybe
• Figure 23: Flybe destinations, 2004
• Germanwings
• Figure 24: Germanwings destinations, 2004
• Jet2
• Figure 25: Jet2 destinations, 2004
• MyTravelLite
• Figure 26: MyTravelLite destinations, 2004
• Ryanair
• Figure 27: Ryanair performance, 2002 and 2003
• Figure 28: Main Ryanair destinations, 2004

Long-haul and flag carriers

• Aer Lingus
• Figure 29: Aer Lingus financial results, 2001-03
• Figure 30: Aer Lingus destinations, 2004
• bmi (British Midland) Airways
• Figure 31: Bmi destinations, 2004
• British Airways
• Figure 32: BA financial results, 2002 and 2003
• Figure 33: BA destinations, 2004

Distribution

• Figure 34: Airports in Ireland, 2004

Passenger movements through NI airports

• Figure 35: Passenger movement from airports in NI, 1999 and 2003

Passenger movements through RoI airports

• Figure 36: Passenger movement from airports in RoI, 1999 and 2003

Travel to airports

• Figure 37: Airports flown from by residents of NI, 2001 and 2003
• Figure 38: Airports flown from by residents of RoI, 2001 and 2003

Airports in Ireland

• Belfast City Airport
• Figure 39: Total passenger movements through Belfast City Airport, 1999-2004
• Figure 40: Destinations flown to from Belfast City Airport, 2004
• Belfast International Airport
• Figure 41: Total passenger movements through Belfast International Airport, 1999-2004
• Figure 42: Airlines operating through Belfast International Airport, 2004
• City of Derry Airport
• Figure 43: Total passenger movements through City of Derry Airport, 1999-2004
• Cork Airport
• Figure 44: Total passenger movements through Cork Airport, 1999-2004
• Figure 45: Airlines operating through Cork Airport, 2004
• Donegal Airport
• Dublin Airport
• Figure 46: Total passenger movements through Dublin Airport, 1999-2004
• Figure 47: Airlines operating through Dublin Airport, 2004
• Shannon Airport
• Figure 48: Total passenger movements through Shannon Airport, 1999-2004
• Figure 49: Airlines operating through Shannon Airport, 2004

The Consumer

• Figure 50: Travelled by air in the last 12 months, NI and RoI, 2001-04

Who travels by air?

• Figure 51: Have travelled by air in the last 12 months, by gender, NI and RoI, 2001 and 2004
• Figure 52: Have travelled by air in the last 12 months, by age, NI and RoI, 2001 and 2004
• Figure 53: Have travelled by air in the last 12 months, by socio-economic status, NI and RoI, 2001
• and 2004

Holiday behaviour and lifestyle

• Number of holidays
• Figure 54: Number of holidays in the last 12 months, NI and RoI, 1998-2004
• Lifestyle and holidays
• Figure 55: Agreement with selected holiday-related statements, NI and RoI, 2004
• The changing attitudes of holidaymakers
• Figure 56: Agreement with selected holiday-related statements, NI and RoI, 2001 and 2004

The Future

In flight entertainment - growth area, or ignorable frill?

Virgin Express to enter the market?

Fuel prices and the war on terror

Grey travel to increase

Major airlines to come back?

Forecast

Northern Ireland

• Figure 57: Domestic and international passenger movements, NI, 2004-09

Republic of Ireland

• Figure 58: Domestic and international passenger movements, NI, 2004-09

Airports need to fully utilise capacity

Low cost airlines may be moving towards maturity

Appendix

Population tables

• Northern Ireland
• Figure 59: Northern Ireland population, by age category, 000s, 2000-2016
• Republic of Ireland
• Figure 60: Republic of Ireland population, by age category, 000s, 2000-2016

Attitudes towards holidays

• Gender differences
• Figure 61: Agreement with selected holiday-related statements, by gender, NI and RoI, 2004
• Age differences
• Figure 62: Agreement with selected holiday-related statements, by age, NI, 2004
• Figure 63: Agreement with selected holiday-related statements, by age, RoI, 2004
• Socio-economic differences
• Figure 64: Agreement with selected holiday-related statements, by socio-economic status, NI,2004
• Figure 65: Agreement with selected holiday-related statements, by socio-economic status, RoI,2004