Slide 1: The Italian opportunity
The italian opportunity 25 MARCH 2013 1
Slide 2: Contents
Contents 1. easyJet in Italy 2. easyJet’s opportunity in Italy 3. Why Linate / Fiumicino is important 4. Summary 2
Slide 3: easyJet in Italy
Easyjet in italy Frances Ouseley Country Director Italy 3
Slide 4: easyJet - 15 years in Italy
easyJet - 15 years in Italy 1998 2004 2006 2009 2013 1st flight to Italy 1 million Malpensa Fiumicino Linate / passengers Base Base Fiumicino carried opened opened route • 24 aircraft in Italy • 2 bases • Milan Malpensa and Rome Fiumicino • 12.5 m passengers in 2012 • 140 routes from Italy • 870 emp
Slide 5: Italy is a significant market for easyJet
Italy is a significant market for easyJet European market easyJet network1 Million seats Million seats % weight on 2011 (OAG) Jan-Dec 2012 easyJet network 250 120.0% 10 13% 14% 9 12% 100.0% 12% 200 8 7 10% 80.0% 150 6 8% 60.0% 5 5% 5% 5% 6% 100 4 4% 4% 4% 40.0% 4% 4% 3 4% 50 2 20.0% 2% 1 0 0.0% - 0%
Slide 6: easyJet has built a strong position in Italy
easyJet has built a strong position in Italy Strengthening the international network… …while returns keep improving Capacity in Italy Contribution per (network point) block hour 16 1,400 14 1,300 12 1,200 1,100 10 1,000 8 900 6 800 4 700 2 600 0 500 2008 2009 2010 2011 2012 • Capacity has increased
Slide 7: Focused on higher yielding airports in Italy
Focused on higher yielding airports in Italy Main airports in Italy Short haul passenger traffic from Italian airports Average Market Fare in Italy €1 35 90 MXP VRN BGY VCE 80 30 TRS Passengers 1 70 LIN BLQ 25 TRN 60 GOA FLR 20 50 AOI PSA 15 40 PSR 30 10 FCO 20 CIA BRI 5 10 OLB BDS AHO NAP 0 0 Milan
Slide 8: Significant expertise in Italy
Significant expertise in Italy Frances Ouseley Giuseppe Careddu Giuseppe Bonetti Nicola Martino Matteo Cecconi Country Director Head of Sales RGM Ground Ops Pilot Manager Route Manager Gianluca Murari Lorenzo Lagorio Noemi Frisoli Marco Picardi Daniele Bordogna Cabin Services HR Business Marketing C
Slide 9: easyJet's opportunity in Italy
Easyjet’s opportunity in italy Frances Ouseley Country Director Italy 9
Slide 10: Where is the opportunity for easyJet now
Where is the opportunity for easyJet now Whilst there are short term challenges with the macro economic environment and with airport charges and taxation increasing, there are opportunities for easyJet in the Italian market 1. Build on strong market share in major catchment areas 2. Focus on busines
Slide 11: Malpensa provides platform to drive returns
1. Major catchment Malpensa provides platform to drive returns areas • Single terminal • Reduce cost base • Dedicated easyJet check-in and gates • Crewing • One single access Crew Room • Improved flexibility • Operational efficiency • Above network average turn around time • On time performance (87%
Slide 12: Strong international network supports the business passenger opportunity
Strong international network supports the 2. Business passengers business passenger opportunity Business passengers - network • easyJet’s share of business passengers is increasing in Italy • Linate / Fiumicino provides opportunities not just because it is a business route but it establishes easyJet
Slide 13: Italian passengers are late bookers
3. Adapt to Italian Italian passengers are late bookers market Different booking patterns in Italy • Italian passengers book later Booking curves 200 to 0 days to departure than passengers in other markets • Overall company average is % of bookings 26-27 days whereas the average for Italy is closer
Slide 14: Brand awareness increasing in Italy
4. Building Brand awareness increasing in Italy brand Spontaneous - other mention Spontaneous - 1st mention Percentage (%) 35 30 32 32 21 26 24 18 15 22 16 15 14 14 12 6 10 4 Dec-10 Oct-11 May-12 Dec-10 Oct-11 Feb-12 Dec-10 Oct-11 Oct '12 Italy UK Switzerland 14
Slide 15: Improving perception in Italian market
4. Building Improving perception in Italian market brand Spontaneous Brand Awareness • Awareness increased considerably in the first 6 months of 2012 • Leisure Consideration (+11pp) • Business Consideration (+12pp) Brand Consideration Source GFK Brand Trackers 2007-2012 15
Slide 16: Build Brand through campaigns…
4. Building Build Brand through campaigns… brand • First TV advert launched last October 2012, with a second campaign in March 2013 • A consistent brand presence in main catchment areas and online 16
Slide 17: …by receiving significant press coverage…
4. Building …by receiving significant press coverage … brand • Leverage the Linate / Fiumicino win to position the brand in a more credible way towards business passengers • Dedicated advertising campaign launched in Rome and Milan, one promotional and one business 17
Slide 18: …by targeting a higher yield target…
4. Building …by targeting a higher yield target… brand As a result of our partnership with Rossignol, easyJet is present in all the key mountain resorts in Italy, promoting the brand to a higher yield segment 18
Slide 19: …and being present in large cities
4. Building …and being present in large cities brand easyJet was present in the key shopping streets of Milan and Rome in the days before Christmas 19
Slide 20: Focused and targeted new advertising campaigns
4. Building Focused and targeted new advertising campaigns brand Exploit new CRM and digital capabilities to target relevant passengers and deliver an easy, engaging and personal experience at every stage of their journey 20
Slide 21: Why Linate / Fiumicino is important
Why linate / fiumicino is important Frances Ouseley Country Director Italy 21
Slide 22: Che cosa significa?
CHE COSA SIGNIFICA ? In linea con la strategia Europea di presenza sui flussi 1 principali e su tutti i segmenti di clienti 2 Evoluzione naturale del nostro posizionamento in Italia : easyJet come l’Alternativa moderna di Convenienza e di Qualita’ 3 Un’offerta facile, accessibile e veloce, con tutta
Slide 23: Why is the route important
Why is the route important Important achievement for easyJet and the Italian air traffic market: the liberalisation of the last monopoly route in Europe • Long and complex process • legal procedure started in December 2011 and lasted 14 months • 5 airlines made submissions for the right Dedication t
Slide 24: Extensive press coverage in Italy
Extensive press coverage in Italy 24
Slide 25: Easy, affordable, fast, flexible – no complexity
Easy, affordable, fast, flexible – no complexity Convenience + Speed’ + Flexibility easyJet Easyjet Tailored Plus card Plus card offer according Flexible fares to the needs easyJet easyJet Easyjet Flexi of the mobile mobile mobile corporates Prices for all Prices for all Prices for all Prices for al
Slide 26: 2013: innovation in network development
2013 : innovation in network development easyJet continues to innovate by offering increasingly attractive portfolio of routes Entering natural • Milan Malpensa – Luxembourg: 4 flights a week starting monopoly routes from 31st March 2013 Opening up new markets • Milan Malpensa - Belgrade: 3 flights
Slide 27: Strengthening the network internationally
Strengthening the network internationally 14 New routes within first 6 months of 2013 • 13 International and 1 domestic From To 1st day of operation Milano Malpensa Larnaca (Cyprus) 4th March Sharm El Sheikh 12th March Luxembourg 31st March Belgrade 19th April Ajaccio 6th July Roma Fiumicino Milan L
Slide 28: Industry leading customer satisfaction in Italy
Industry leading customer satisfaction in Italy Likely to Recommend vs. competitors (%) • A survey conducted in 90 89 86 airports where easyJet 85 83 80 82 77 operates shows a preference 76 75 72 71 71 73 index higher than other 70 65 66 airlines… 60 60 55 54 53 0 0 0 MILAN ROME NAPLES VENICE easyJe
Slide 29: Summary
Summary Frances Ouseley Country Director Italy 29
Slide 30: Summary
Summary • Italy is a significant market for easyJet • Structural changes are benefitting and will continue to benefit easyJet • easyJet is focused on: • Building on strong market share in major catchment areas • Business passengers and those with higher disposable incomes • Adapting the model to the
Slide 31: Q&A
Q&A 31
Slide 32: Disclaimer
Disclaimer This communication is directed only at (i) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001; or (ii) high