Scheduled Airlines - UK - May 2007

Table of Contents

• Issues in the MarketMain issues
• Definitions
• Abbreviations
• Market in Brief
• Profit on a knife edge
• Taxation? It' s as easy as APD
• Fuel efficiencies
• Un-green accusations make industry see red
• The Atlantic gets narrower and cheaper
• Groundhog day
• Loyalty schemes fail to engage the leisure traveller
• Internal Market Environment
• Key points
• Let' s get out of here!
  • Figure 1: Domestic and overseas holidays volume, 2002-07
• Travel pie growing in size
  • Figure 2: Domestic and overseas holiday expenditure, 2002-07
  • Figure 3: Average spend per trip, 2002-07
• Short-haul goes regional
  • Figure 4: Passenger movement (scheduled and non-scheduled) at UK airports, 2002-06
  • Figure 5: Aircraft movement at UK airports, 2002-06
• Who do you think you are?
• Broader Market Environment
• Key points
• Cash-rich, time-poor
  • Figure 6: Trends in personal disposable income and consumer expenditure, 2002-12
• ABsolutely Fabulous
  • Figure 7: Forecast adult population trends, by socio-economic group, 2002-12
• The circle of life
  • Figure 8: Forecast adult population trends, by lifestage, 2002-12
• Internet penetration
  • Figure 9: Internet penetration, by gender, socio-economic group and age, 2002-06
• Buy bye
  • Figure 10: Online product purchasing, by category, January 2006-February 2007
• Green skies
• Consumer spending priorities
  • Figure 11: UK spending priorities, January 2007
• Oil prices fuelling price increases
  • Figure 12: Crude oil prices, 2002-06
• Exchange rates
  • Figure 13: Annual average exchange rates for Sterling against the euro and US Dollar, 2002-06
• Open Skies and cheaper fares
• Low-cost model fit for purpose
• APD
• Competitive Context
• Key points
• Scheduled versus non-scheduled
  • Figure 14: Passenger traffic on UK owned airlines, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Back to black
  • Figure 15: Performance of all UK airlines, 2000-04
• Come fly with me, and me, and me
  • Figure 16: Passenger capacity and traffic on UK scheduled airlines, 2002-12
• Reach for the skies
• Factors used in the forecast
• Segment Performance
• Key points:
• Scheduled travel, your flexible friend
  • Figure 17: Air (scheduled) main method of travel for last/last but one holiday, 2002-06
• Regionalisation of airport usage
  • Figure 18: Airports used in the last 12 months, 2002-06
• The price is right
  • Figure 19: Most important factor when choosing which airline to fly with on holiday, 2002-06
• Time is money
  • Figure 20: Most important factor when choosing which airline to fly with on business, 2002-06
• Market Share
• Key Points:
• Number of aircraft
  • Figure 21: Number of active aircraft
• Airline capacity
  • Figure 22: UK scheduled airline capacity statistics, 2002 and 2006
• Load capacity
  • Figure 23: UK scheduled load capacity (seat km used as part of seat km available), 2002 and 2006
• Companies and Products
• Traditional carriers versus low cost
  • Figure 24: Comparison of traditional and low cost scheduled airlines, 2007
• Alliances
  • Figure 25: Airline alliances, May 2007
• Key players
• British Airways Plc
  • Figure 26: Financial performance of British Airways Plc, 2001-06
  • Figure 27: British Airways Plc, key operating statistics, 2001-06
• British Midland Airways Limited
  • Figure 28: Financial performance of bmi (including bmibaby), 2002-06
  • Figure 29: BMI, key operating statistics, 2002-06
• Virgin Atlantic Airways
  • Figure 30: Financial performance of Virgin Atlantic, 2002-06
  • Figure 31: Virgin Atlantic, key operating statistics, 2002-06
• Ryanair
  • Figure 32: Ryanair key operating statistics, 2002-06
• Iberia Airlines
  • Figure 33: Iberia performance, 2003-06
• Air France
  • Figure 34: Air France performance, 2003-05
• KLM
  • Figure 35: KLM performance, 2003-05
• Lufthansa
  • Figure 36: Lufthansa performance, 2003-06
• Alitalia
  • Figure 37: Alitalia performance, 2003-05
• Aer Lingus
• Figure 38: Aer Lingus performance, 2003-05
• SAS -- Scandinavian Airline Businesses
  • Figure 39: Aer Lingus performance, 2003-05
• United Airlines
• American Airlines
• Emirates
  • Figure 40: Emirates performance, 2003-06
• Qantas
• Singapore
• Air Canada
• Distribution
• Key points
  • Figure 50: Flying habits of scheduled airline passengers, March 2007
• The Consumer -- Use of Scheduled Airlines
• Key points
• BA still carrying the flag for the UK
• Chameleonic chartered airlines
  • Figure 51: Scheduled flying experience, March 2007
• Who flies scheduled?
• High fashion
• Southern Comfort
• The flight is right
• Altruistic aviation?
  • Figure 52: Scheduled flying experience, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, TV reception, supermarket usage, household size, car usage, detailed lifestage groups, age/socio-economic groups and terminal education age, March 2007
• The scheduled low-cost relationship
  • Figure 53: Scheduled passengers' low-cost experience, by carriers used, March 2007
• Scheduled Airline Targeting Opportunities
• Key points
• Target groups
• Seasoned Flyers (10% or 5 million adults)
• Price Prioritised (21% or 10.5 million adults)
• Run-a-wayers (21% or 10.5 million adults)
• Moderates (17% or 8.5 million adults)
• Grounded (31% or 15.5 million adults)
• Targeting demographics
• Scheduled airline targeting opportunities -- detailed demographics
  • Figure 59: Scheduled airline target groups, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, household income, tenure, region, ACORN category, media usage, TV reception, supermarket usage and detailed lifestage groups, March 2007
• Carriers used
  • Figure 60: Target groups, by carriers used, March 2007
• Booking methods
  • Figure 61: Target groups, by booking channels, March 2007
• Low-cost usage
  • Figure 62: Target groups, by low-cost carrier usage, March 2007