VISIT ARCTIC EUROPE OTSIKKO JOKA VOI OLLA YKSI TAI KAKSI ...

OTSIKKO JOKA VOI OLLAYKSI TAI KAKSI RIVINENTARKENTAVA ALAOTSIKKOEsityksen paikka ja aikaNimi Sukunimi

KIILA Consulting

ATS Finland

VISIT ARCTIC EUROPESAAVUTETTAVUUSTYÖ

Lapin liikennepäivätKemi 28.11.2016 Hanne Junnilainen

SOJ

HFT

MEHBVG

BJF

GEV

0 100 200 300

Distance in kilometres

VISIT ARCTIC EUROPE

SKELLEFTEÅ

LULEÅARVIDSJAUR

BODØ

EVENES

KIRUNA

PAJALA

KEMI-TORNIO

ROVANIEMI

KITTILÄ

ENONTEKIÖ

IVALO

TROMSØ

ALTALAKSELV

KIRKENES

VAE airport

Other airport in the region

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tratio

n: K

iila C

onsu

lting

BARDUFOSS

GÄLLIVARE

PRIORITIZED VAE AIRPORTS

2015AIR TRAFFIC PASSENGERS

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iila C

onsu

lting

So

urce

: Avin

or, F

inav

ia, a

nd T

rans

port

sty

rels

en

Passengers, millions0.25

0.5

VAE airport

Other airport in the region

2015

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iila C

onsu

lting

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urce

: Avin

or, F

inav

ia, a

nd T

rans

port

sty

rels

en

AIR TRAFFIC PASSENGERS VAE AIRPORTS

Domestic

International

Other (offshore, transit)

Passengers, millions

0.25

0.5

airlinesstrategy

loadfactor

routedevelop-

ment

flightcapacity

riskslegal

fleetdemand

competition

schedules

yield

AIRLINE BUSINESS CASESIN VISIT ARCTIC EUROPE

airlinesstrategy

funding formarketing

ideaofthetrip

targetmarkets

risks

economicimpact

fundingforairlines

planningofthetrip

fleet

Informationandsaleschannels destination

development&vision

competitioncustomerexperience

yield

funding forlandtransport

funding forairports

loadfactor

demandschedules

routedevelop-

ment

bedcapacity

utilizationrate ofaccomodation

organi-zing landtransport

travelchains

services

activities

touroperators

DMC

legal flightcapacity

AIRLINE BUSINESS CASES INVISIT ARCTIC EUROPE

2015

AIR TRAFFIC PASSENGERS ALL AIRPORTS

938 1062 874 306

6 715 871

THERE WERE 10.5 MILLION PASSENGERSAT THE AIRPORTS IN THE VAE REGION IN 2015

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n: K

iila C

onsu

lting

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: Avin

or, F

inav

ia, a

nd T

rans

port

sty

rels

en

2015

AIR TRAFFIC PASSENGERS PRIORITIZED VAE AIRPORTS

2.0

Sweden

Norway

Finland


1.0

2.0


1.0

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n: K

iila C

onsu

lting

So

urce

: Avin

or, F

inav

ia, a

nd T

rans

port

sty

rels

en, S

tatis

tics

Finl

and,

Tillv

äxtv

erke

t, SC

B an

d St

atis

tics

Norw

ay

1 429 000 1 887 000 958 000

AIR TRAFFIC ARRIVALS & VISITORS IN VISIT ARCTIC EUROPE

3 358 000 1 437 000 469 000

* Västerbotten is included as a whole region in visitor statistics.. Only Eastern part of the Västerbotten region partners in the project.

THERE WERE 336 000INTERNATIONAL ARRIVING

PASSENGERS BY AIR**Based on 2015 air transport statistics

107 000104 000

125 000

Finland

Sweden

Norway

THERE WERE 1.3 MILLIONINTERNATIONAL VISITORS*

*Based on overnight stays in 2014

366 000 399 000

523 100

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n: K

iila C

onsu

lting

So

urce

: Avin

or, F

inav

ia, a

nd T

rans

port

sty

rels

en, S

tatis

tics

Finl

and,

Tillv

äxtv

erke

t, SC

B an

d St

atis

tics

Norw

ay

INTERNATIONAL AIR TRAFFIC & VISITORSIN VISIT ARCTIC EUROPE

*Does not include international passengers in domestic flights.

DOMESTIC FLIGHT CONNECTIONS 2014

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n: Ki

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onsu

lting

So

urce

: The

Nor

th a

nd E

ast F

inla

nd A

ir Tr

ansp

ort R

evie

w, A

vinor

, Tra

nspo

rt s

tyre

lsen

, Fin

avia

< 1 million passengers

1-2 million passengers

Hub, million passengers5

10

Other regional airport

VAE airport, Sweden

VAE airport, Norway

VAE airport, Finland

>2 million passengers

EVE

BOO

TOS

ALFLKL

KKN

ENF

IVL

KRNKTT

PJA

RVN

KEM

LLA

SFT

AJR

GEV

BDU

SCHEDULED ROUTES BETWEEN PRIORITIZED AIRPORTS2016

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tratio

n: K

iila C

onsu

lting

So

urce

: RDC

Avia

tion

Lim

ited,

pow

ered

by

INNO

VATA

dat

a

VAE airport

0-10 000 seats

10 001-100 000 seats

100 001-500 000 seats

over 500 000 seats

INTERNATIONAL SCHEDULED ROUTES2016

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n: K

iila C

onsu

lting

So

urce

: RDC

Avia

tion

Lim

ited,

pow

ered

by

INNO

VATA

dat

a

VAE airport

Other airport

0-10 000 seats

10 001-100 000 seats

100 001-500 000 seats

over 500 000 seats

LPA

ALC

ZRHMUC

FRADUSLGW

ARN

INTERNATIONAL SCHEDULED ROUTESTO THE TARGET MARKETS2016

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tratio

n: K

iila C

onsu

lting

So

urce

: RDC

Avia

tion

Lim

ited,

pow

ered

by

INNO

VATA

dat

a

VAE airport

Other airport

0-10 000 seats

10 001-100 000 seats

100 001-500 000 seats

over 500 000 seats

ZRHMUC

FRADUSLGW

15 000 seats

6%

MARKETSHARESinscheduled traffic

11airlines intotal

4%

34%

33%

23%

AsAviesBraathensEstonianAirFlexFlightLufthansaRyanair

OPERATIVE COST TOOL

SELECT A ROUTE:

Origin airport:

Destination airport:

Choose

Choose

SELECT AIR CRAFT:

ATR-42 300

Embraer 190

Boeing 737

INSERT DEFINITIONS:

48 seats

104 seats

186 seats

1

2

3

Load factor: %%0

Share of operational costs of the total cost for the air carrier: %%0

OPERATIVE COST TOOLEXAMPLE: AMSTERDAM - KIRUNA

SELECT A ROUTE:

Origin airport:


Amsterdam

Kiruna

SELECT AIR CRAFT:

ATR-42 300

Embraer 190

Boeing 737

INSERT DEFINITIONS:

48 seats

104 seats

186 seats

1

2

3

Load factor: %%80

Share of operational costs of the total cost for the air carrier: %%70

AMS

KRN

Amsterdam - Kiruna1921 km

OPERATIVE COST TOOLEXAMPLE: AMSTERDAM - KIRUNA

OPERATIONAL COSTS

Estimate of total direct operative costs (round trip)

Estimate of total operative costs (round trip)

Break even ticket price per ticket (round trip)

21 849 €31 213 €

262 €

Airport fees

Navigation fees

Fuel

Staff costs

76 €25 €30 €15 €

11 289 €3 787 €4 472 €2 302 €

Airport fees origin airport

Airport fees destination airport

40 €36 €

5 978 €5 311 €

Per passenger Total fees

Airport fees 52 %

Navigationfees 17 %

Fuel 20 %

Staff costs 11 %

ESTIMATE OF THE DIRECTOPERATIVE COST DISTRIBUTION

OPERATIVE COST TOOLEXAMPLES

AMSTERDAM - KIRUNA1

AMS

KRN

Amsterdam - KirunaBoeing 737Boeing 737 Stockholm - Kiruna

Boeing 737Embraer 190

ARN

IVLIvalo - KirunaEmbraer 190ATR-42 300


262 €

STOCKHOLM - KIRUNA2

Boeing 737

Embraer 190

IVALO - KIRUNA3

Embraer 190 ATR-42 300


195 €


272 €


225 €Break even ticket price per ticket (round trip)

369 €

ECONOMIC IMPACT TOOLEXAMPLE: AMSTERDAM - KIRUNA

SELECT A ROUTE:

Origin airport:


Amsterdam

Kiruna

SELECT AIR CRAFT:

ATR-42 300

Embraer 190

Boeing 737

INSERT DEFINITIONS:

48 seats

104 seats

186 seats

1

2

3

Load factor: %%80

Share of new incoming travellers: 70%%

AMS

KRN

Amsterdam - Kiruna1921 km

Weeks of production:

Flights per week: 3

52

Nights in average:

Euros spend per day in average: 300

2,5

Total number of new tourists:

Revenue to the region

16 249

12.2 M €New jobs to the region (direct, indirect, induted and catalytic) 24

ECONOMIC IMPACT OF THE ROUTE

REVENUE MODELS IN CHANGE:TRANSPORTATION AND TOURISM

AIRPORTS

AIRLINE

TOURISM

OLD REVENUE MODEL NEW REVENUE MODEL

TRANSPORTATION

MOBILITY AS A SERVICE

SINGLE TRIP FEES

INTEROPERABLE TICKETING

EXPERIENCE

ACCOMODATION

SERVICES

NEW ANCILLARY SOURCES

AIR FARES

ON-BOARD SALES

COMMERCIAL SERVICES

LANDING FEES

PARKING

“Huge” “High”

“The opportunities are huge for us”

“We could increase business if flight capacity is increased”

“Better development of connections and services year-around”

“extending the season multi destinations longer trips”

“We expect growing business for the coming years.”

”A steady increase of bookings”

“Not many, unless the ease of travelling is improved greatly”

PRESENT

Transportation development and market is stronglyrestricted by the national borders

Traffic is build for regional needs rather than tourismperspective

Single destinationJoint high-quality tourism products

GOAL

International traveler’s perspective

Cross-border connections

VAE as a single transportation destination

TEAM FOR AIR TRANSPORT DEVELOPMENT

Hanne JunnilainenProject Manager

Specialist in Air Transportation & Tourism Development

[email protected]+ 358 50 301 0001

Katja Kaartinen

Specialist in Air Transport


Pekka Mäntynen

Specialist in Airport, Tourism and Route Development


Tiina Merikoski

Specialist in Data Visualization and Graphic Design


OTSIKKO JOKA VOI OLLAYKSI TAI KAKSI RIVINENTARKENTAVA ALAOTSIKKOEsityksen paikka ja aikaNimi Sukunimi

KIILA Consulting

ATS Finland

KIITOS!

VISIT ARCTIC EUROPE OTSIKKO JOKA VOI OLLA YKSI TAI KAKSI ...

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