Aviation Trends at

Brussels Airport

Presentation to VKW
May 31st, 2010
Presentation Outline

• Brussels Airport

• Challenges Aviation Development

2
 Questions

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Presentation Outline

• Brussels Airport

• Challenges Aviation Development

4
Brussels Airport:
50°54’08” N, 04°29’09” E

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Introduction to Brussels Airport
April 27th, 2010
State-of-the-art Infrastructure

• BRU offers 3 runways

Runway Length (m)
02/20 2.984
07L / 25R 3.638
07R / 25L 3.211

• Open 24h/24h and 7/7

• Stands: ample capacity
– 110 aircraft stands
– Most of which equipped with
Fuel Hydrants, PCA & 400Hz

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Introduction to Brussels Airport
April 27th, 2010
A Modern Terminal

• Terminal
• Pier A – Schengen
 31 contact gates
• Pier B – Non-Schengen
 23 contact gates

• Direct access to major road

network
• Rail connection in terminal
• >12.500 car parkings

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Introduction to Brussels Airport
April 27th, 2010
BruCargo

• 130 ha of land
• Apron for simultaneous
operations 9 B747 aircraft
• 150 forwarders & brokers
• 5000 jobs on-site
• Direct access to E19
• Expansion to the west

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Introduction to Brussels Airport
April 27th, 2010
Other

Military airport Melsbroek

Site Belgocontrol

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Introduction to Brussels Airport
April 27th, 2010
Growing Traffic

BRU Pax Traffic

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Introduction to Brussels Airport
April 27th, 2010
 Growing Traffic
Passengers
25

20
# passengers (mio)

Transfer Passengers

15

10

Local Passengers

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0 Introduction to Brussels Airport
April 27th, 2010
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
 A changing world…

2000 2005 2010

Sabena HST Privatisation Charleroi Lufthansa

bankruptcy development airport partial
acquisition in
New home carrier
Minus 7 mio Reshaping management Severe low and entrance
pax competitive and new cost into Star
situation objectives competition Alliance
No hub

Hub
development

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 Growing Traffic
Cargo
900

800

700
Cargo tonnage ('000)

600

500

400

300

200 BRU flown cargo in 2009: 326.000 tonnes

for Brucargo, plus 124.000 tonnes
100 integrator, (plus 200.000 tonnes trucked-
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under-airway-bill cargo)
0 Introduction to Brussels Airport
April 27th, 2010
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Catchment Area: ±20 million

• Population numbers
– Belgium: 10.7 mio
– Cross border: 8.1 mio
• 4.0 mio The Netherlands
• 4.1 mio France

• Population driving times

– 60 minutes 4.5 mio
14 – 90 minutes 10 mio
Introduction to Brussels Airport
– 120 minutes >25 mio
April 27 , 2010
th
 Brussels Airport
Passenger Profile 2008
Transfer/transit
2.1 million
Visitor
6.0 million

3.7 mio business

2.3 mio leisure

Belgium
Cross border 9.2 million
1.2 million

The Netherlands 530,000

France 590,000 2.6 mio business
Germany 50,000
7.8 mio leisure
Luxemburg 40,000

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Evolution Noise Contours

Noise contour 2009 less than half

noise contour 2000

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Introduction to Brussels Airport
April 27th, 2010
Economic Engine

• 260 companies and organisations

• 20,000 direct jobs & 40,000 indirect jobs
• 2nd economic engine of Belgium
• 4 billion EURO added value
• 1.5% of the Belgian GDP
• Attracting international companies
• “Airport People” –award (ACI 2007)

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Presentation Outline

• Brussels Airport

• Challenges Aviation Development

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Objective

 Sustainable growth above European average

 Becoming the leading secondary gateway in Europe

80

70 67,1
60,9
60
53,5
50,8
50 47,4

40
35,1 34,5 34,2
30,2
30 26,2
23,5 22,8 22,4 22,1
21,5 21,4
19,7 19,3 19,2 18,5 18,2 18,2
20 16,5
14,5 14,5

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Primary gateways O&D airports Secondary gateways
0

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Introduction to Brussels Airport
April 27th, 2010
Aviation Development

1. Home carrier brussels airlines & Star Alliance

2. Long haul segment

3. Leisure segment

4. Low cost segment

5. Cargo

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1. Home Carrier

• Only 28% pax traffic share at BRU after merger of SN Brussels

Airlines and Virgin Express in 2007

• 45 European destinations 14 African destinations

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Brussels Airlines and Lufthansa

• 2009: 45% acquisition by Lufthansa

– Additional 55% in 2011

• Opens up many co-operation options with Star Alliance

partners on European network

• Opportunity to attract new long haul Star Alliance airlines to

Brussels

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Star Alliance Gateway

• Growth of transfer

FRA

MUC

ZRH

CPH

VIE

BRU

0 10 20 30 40 50 60 70

23 Passengers 2008 ( millions) Introduction to Brussels Airport

Local TransferApril 27th, 2010
Required Airport Product

European Efficient Welcoming

Target = Offer the preferred airport product

 Good transfer product with short MCT and

reliable baggage performance
 Infrastructure available at peak hours
 Centralised operations
Introduction to Brussels Airport
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 Quality passenger experience April 27 , 2010
th
2. Long Haul Segment

• 12 out of 30 primary gateways* are served with direct flights from

BRU  target to grow to 20

Atlanta Bangkok
Boston Beijing
Chicago Delhi
Dallas/Fort Worth Hong Kong
Detroit Kuala Lumpur
Houston Mumbai
Los Angeles Seoul
Miami Shanghai
Montreal Singapore
Abu Dhabi
New York Tokyo
Dubai
Philadelphia
San Francisco
Toronto Johannesburg
Vancouver Nairobi
Washington
Sao Paulo

25 * Based on number of frequencies to the 10 largest Western European gateways

Introduction to Brussels Airport
April 27th, 2010
 Jet Airways ‘Scissor Hub’

JFK

• ‘Scissor hub’: 6 daily flights • Commercial and operational

– Mumbai, Delhi, Chennai, Newark, New partnership
York/JFK, Toronto – Jet Airways
– A330-200 – Brussels Airlines
– start-up Aug07-Nov07 – Flightcare
– 700,000 passengers/year – Brussels Airport
– Healthy mix of local, transfer and
26 transit traffic
Introduction to Brussels Airport
April 27th, 2010
Almost 2 mio Long Haul Passengers are
Diverted via Other Airports

• Ground leakage
– Improved accessibility through
existing and new high speed train
connections to
• Paris/CDG,
• Amsterdam Schiphol
• Germany (Dusseldorf, Frankfurt)

• Negative transfer
– Expanding hub airports and
airlines/alliances take traffic away

• Challenges
– Inverse the trend
– Get connected to HST network
– Airline marketing & hub
development

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3. Leisure Airlines

• Almost 25% of Brussels Airport travel

• Evolution
– High seasonality, but complementary
– From traditional package tours to mix of
packages and seat only

• Increasing competition
– Regional airports Liege, Ostend and
Charleroi

• Leisure terminal
– Operational efficiencies
• E.g. high baggage through-put
– Passengers experience
• Late and early morning ops
• Service delivery
28 – Branding
Introduction to Brussels Airport
April 27th, 2010
 4. Low Cost

• Low cost airline seats • European airline ranking 2009

1000 43%
Top 10 airlines by scheduled pax in 2009 (mln)
900
34%
1 Lufthansa 76.5
Seats within Europe (million)

800
2 Air France 74.4
700
3 Ryanair 65.3
600
4 easyJet 46.1
500 5 British Airways 32.2
400 6 Air Berlin 27.9
7 Turkish Airlines 25.1
300
8 KLM
200
9 SAS Group 24.9
100 10 Iberia 24.5
0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Network carriers Low fare carriers

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Introduction to Brussels Airport
April 27th, 2010
Low Cost in the Catchment Area

• Low cost
– Low fares attract more and
more passengers over
longer driving distances

• Regional airports
– Regional airports are
expanding fast, often
through subsidies by the
regional governments

• Low cost at Brussels Airport

– The frequency share of low
cost airlines at Brussels
Airport is 6%

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 5. Cargo

Paris/CDG Paris/CDG

Frankfurt Frankfurt

Amsterdam Amsterdam

London/LHR London/LHR

Luxemburg Luxemburg
Cologne
Brussels
Leipzig
Cologne
Liege
Liege
Brussels
Milan/MXP
Milan/MXP
Copenhagen
Copenhagen
Madrid
Madrid
East Midlands
East Midlands
Zurich Zurich
Munich Munich
Vienna Vienna

0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000 2.200 2.400 0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000
Tonnes cargo (000) 2008 Tonnes cargo (000) 2009

From n°6 in 2008 to n°9 in 2009,

passed by 3 integrator hubs

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13 June 2010
 Main challenges
 Noise efficient aircraft, but
Cargo Development need stable noise regime
 Active marketing approach
- towards airlines
- towards catchment area
 Accelerate logistical chain
 Improve quality processes
 Brucargo master plan

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April 26th, 2010
Thank you

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 Questions

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