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!!!"#$%&'$()'$)*+",-.!!!"#$"%&'()"*#+

-&+#.

/&0+12*&*)#3 %456 /0780&99#

BSR Accessibility & Air Cargo

:&'';**< =>1=? @)+7%#0 AB=C

/0#D#*+#3 %4.0,$.+%( 1-(2-).

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03($&+, 4 5)(*6. 1)+.6-)7

!

#$%& (%)%*+, -.)/, 0%* ,+ -1&#$%& (%)% -.)/, 0%* ($+ /233%//4211& 15*6%6

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8-$% 9:; < 0() =)$>'

7

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8-$% 9:; < 0() =)$>'

8Source: Air Transport Association and Worldwatch Institute.

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5+)%? 7'6-?@%-? $()%(,- A,$,'($% )-7@%. BCD:E #(%%F

!9:!;9!;:<

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World Air Travel and Freight Carried, 1950-2012

>Source: Airlines for America

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Jet Fuel Prices, 1990-2012

!9:!;9!;:< ?!9:!;9!;:Source: US Energy Information Administration

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Operating Revenues of the Airline Industry

!9:!;9!;:< @!9:!;9!;:Source: ATA Annual Report 2005

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World airlines return on invested capital

A

Source: McKinsey & Company for IATA

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World airlines return on invested capital

:9

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Average ROIC 2004-2011

::

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Economic profits in the air transport valuechain 2004-2011 (excluding fuel and labour)

:!

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ROIC for Airports vs. Airlines

:7

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ROIC for Services vs. Airlines

:8

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• B5)).%)/',+'%*,)&'5)%')%15,.C%1&'1+(

• B5)).%)/',+'%D.,'5)%'C%)&'$.E$

Bileteral System of Aviation

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• B.15,%)51 )%/,).3,.+*/ F)%C%*, ,$%3+*/+1.65,.+* ,$5, (+216 +,$%)(./%G% %DF%3,%6 .* 05)H%,/ ,$5, 5)%C%)& 3+0F%,.,.C% 5*6 F)+,%3,.*%4-.3.%*, .*320G%*,/ .* 05)H%,/(.,$ +*1& 5 4%( F15&%)/


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• I.E$1& 3+0F%,.,.C% *5,2)% +4 ,$%5.)1.*% .*62/,)& 1%56/ ,+ 56+(*(5)6 F)%//2)% +* F).3%/

• JD53%)G5,%6 G& ,$% F%)./$5G1%*5,2)% +4 5.)1.*% /%5,/ 5*6 ,$% 1+(05)E.*51 3+/, +4 -1&.*E 5*566.,.+*51 F5//%*E%)

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Good News

K+( )%,2)*/ $5C% *+, /,+FF%65.)1.*%/ 4)+0 E)+(.*E .* ,$% F5/,

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/&0+12*&*)#3 %4 56 /0780&99#

=>"=B"=C =E

0() '$)*+ 3+%@G-7 (, 1D8

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/&0+12*&*)#3 %4 56 /0780&99#

=>"=B"=C AB

0() '$)*+ (, 1D8

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BSR accessibility and the role of air cargo

21

Major aviation hubs of the BSR have significant influence onthe accessibility of the BSR:these hubs offer the intercontinental connections !

! and regional flights inside the BSR area go via hubs.

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Air Cargo outbound BSR

Source: Baltic.AirCargo.Net 2013

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Air Cargo inbound BSR

Source: Baltic.AirCargo.Net, 2013

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Estonia. Air Cargo Outbound


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Estonia. Air Cargo Inbound


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Estonia. Air Cargo Forecasting

Source: http://www.tallinn-airport.ee Baltic.AirCargo.Net 2013

"#$%&'() * '+$ &'$,# -%.'/- 0'/-1%- ') 2'11+/ 3%//'$) 4%$+ 5+$6#$) 7 !!"# 879$:; ?@;

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Finland Airports activities - outbound(2005-2011)


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Finland Airports activities - inbound(2005-2011)


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Role of Air Cargo – Finnair Exapmle

29

36%

48%*

4% 12%

Majority of Finnair

s revenues comes from Europe–Asia trafficAir cargo revenues represent 20 % of Asian revenues

* Cargo revenues represent 20% of Asian revenues

Asia USDomestic Europe

52%*

4% 10%

34%Asia-Europe

ViaHelsinki

>60 %

Distribution of passenger and cargo revenues in scheduled traffic(Q4/10)

Source: Finnair

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30

BSR accessability, role of aviation hubs

Intercontinental flights are dependent on feeder traffic – and vice versa:

passengers are flying !

! and cargo is transported by „flying trucks , i.e.Road Feeder Service

/&0+12*&*)#3 %4 56 /0780&99#F&'() G#& 0#8;7* /0780&99# ABBH I AB=C5J-K K$*3D

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8+$? H--?-) D-)3('- 4 H%I(,* =)@'J7

=>"=B"=C C=

• Most suitable concept for air cargobusiness for regional airports

• Formally Flying Trucks are treated andhandled as real aircrafts

• Cargo transported by Flying Trucks is AIRCARGO (de jure & de facto)

• Flying Trucks fulfill all custom and securityrules as if the goods were really flying setby the authorities.

• Special treatment of flying trucks on cross-border points (e.g. BY-EU or RU-EU)

7L?L

M.)'35)E+N'OPIN' 9::

Q1&.*E#)23H/O5)E+M;O

Source: Hans Christian StigaardFormer VP and Traffic Manager at CPH

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5;K L 0M8 N089O P 0,$%I7(7

=>"=B"=C CA

Source: Boeing 2008

0()P8+$? M,.)$ Q@)+R-$, S$)J-. TUUV BWI(,* .)@'J7F

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5;K L 0M8 N089O P 0,$%I7(7

=>"=B"=C CC

Source: Boeing 2011

0()P8+$? M,.)$ Q@)+R-$, S$)J-. TUXX BWI(,* .)@'J7F

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Rail – Road COMPETITION EXAMPLE

China

Customs Union (BY, KZ, RU)

EU

R.*3% :/, S21& !9:: 32/,+0/ 3+*,)+1 +* .*,%)*51 G+)6%)/ +4 T2//.5*Q%6%)5,.+*N T%F2G1.3 U5V5H$/,5* 5*6 B%15)2/ (5/ 35*3%1%6W

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C)@G'6( P ;$)'6(G

:

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:-7&,$&+, )+@&,* +3-)3(-!

:!9:!;9!;:

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N$7- 7.@?IL 1YD 4 H80 B3($ D5ZF

:

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DB Schenker Cargo train: Chongqing – Duisburgoperating since April 2011, 11.179 km in 13 days via train

Bild/Grafik

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Operational goals

• Raise the level of third country security (to EU standards) from from third countries• Minimise the burden of the new measures on the EU air cargo industry• Reduce the impact of the new measures on EU appropriate authorities• Ensure that there is a level playing field across the union ; and• Achieve rapid implementation - fully operational by July 1 2014

New Challenges

New EU air cargo framework – EU aviation security validations in third countries

The framework requires (subject to exemptions) air carriers carrying cargo or mail from anairport in a third country for transfer, transit or unloading at European airports, to bedesignated as an 'Air Cargo Mail carrier operating into the Union from a Third CountryAirport ' ("ACC3").

In order to be designated as an ACC3, the carrier must implement certain security controlsand before 1 July 2014 submit a declaration as to its compliance with security requirements,and from 1 July 2014 onwards be EU aviation security validated.

Background

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ACC3 Designation

40

Airport in a thirdcountry listedwith Security

Measuresequivalent to

those of EU

Airport in a thirdcountry

Appropriate Authoritywhich issued AOC

Appropriate Authority ofMember State listed in

Regulation (EC)748/2009 (as amended)

Appropriate Authority ofMember State where air

carrier has its majorbase of operations in EU(where Member State isnot listed in Regulation(EC) 748/2009 or any

other MS withagreement

ACC3 Designation byAppropriate Authority

Based on:

1. Nomination of personresponsible forimplementing security forrelevant cargo operations

2. Declaration of Commitments(until 30 June 2014)

3. EU aviation securityvalidation report (by1 July2014, unless designationextended for “objectivereasons” [not more than 3months unless ACC3 appliesan internal security qualityassurance programme]

Cantransport aircargo & mail

into everyMember

State

No ACC3designation

required

Cargo & Mailtransported

by AirCarrier

No designationobtained

Carrier cannottransport cargoor mail into the

Union

Air carriersholding an Air

Operator'sCertificate (AOC)issued by an EU

MS

Air carriers notholding an Air

Operator'sCertificate (AOC)issued by an EU

MS

ACC3designationfor up to 5

years

ACC3 givenunique

alphanumericidentifier and

details enteredinto Union

database ofregulated agents

and knownconsignors

ACC3 validationcan be at

representativenumber of

airports

EU

EU

EU

X

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ACC3 Timeline

ACC3 Designation based on Declaration of Committments

February 1,2012

November 9,2012

January 31,2013

June 30,2014

July 1,2014

June 30,2015

June 30,2016

ACC3 Designation based on EU aviation security validation (*)

Designated ACC3s must be entered into the Union Database of Regulated Agents and Known Consignors with unique identifier

ACC3 must maintain a database of validated RAs and KCs

ACC3 must issue security status declaration 0NNK!" $3($&+, 7-'@)(.I 3$%(?$.-? 80 G@7. (77@- 7-'@)(.I 7.$.@7 ?-'%$)$&+,

Aviation security controls implemented by ACC3s must meet ICAO standards 0NNKmust meet requirements of the New ACC3 Regulation

CommissionImplementingRegulation (EU)No 859/2011establishing the

ACC3“framework”effective 1 st February 2012

CommissionImplementingRegulation (EU)No 1082/2012of 9.11.2012,amendingCommissionRegulation (EU)No 185/2010 of4 March 2010 inrespect of EU

aviation securityvalidation

Deadline for MSto demonstratehow theycontribute to theimplementation ofEU aviationsecurity validationrequirements –recruitment,training andoversight of EU

aviation securityvalidators

Commission toassess,evaluate and ifnecessarymake aproposal

End of MSextension ofdesignationwithoutvalidation for“objective”reasons

Designation as ACC3 musttake place onthe basis of anEU aviationsecurityvalidation reportunless extendedfor “objectivereasons”

A c

t i o n s

(*) Proof of screening to EU Standards to be provided by previously validated entities not meeting this requirement

M i l e s

t o n e s

Timeline & High Level Requirements for implementing the new ACC3 Regulation

8:

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ransit times vs. costs before 2011

China

Source:LAND TRANSPORT OPTIONSBETWEEN EUROPE ANDASIA:

Commercial Feasibility StudyJuly 2010

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transit times vs. Costs after 2011

China

rail

Source:LAND TRANSPORT OPTIONSBETWEEN EUROPE ANDASIA:

Commercial Feasibility StudyJuly 2010

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• BSR accessibility is heavily dependent on hub and spoke transportsystem

• Most of the remote areas of the BSR could not reach the sameaccessibility (number of destinations, frequencies, transport costlevel) without hub and spoke model:

• Maritime: – Container hubs (e.g. Hamburg) offer oversea (intercontinental) connections

and feeder traffic (e.g. Short Sea Shipping) is the spoke between the hub andthe hinterland

• Aviation:

–

Aviation hubs (e.g. CPH) offer intercontinental connections and feeder traffic(e.g. flying truck, RFS) is the spoke between the hub and the hinterland

BSR accessability, role of hubs

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• #$%'BRT',)5*/F+),'F+1.3&'/$+216')%3+E*.V%',$%'1.*H'G%,(%%*'5.)'35)E+'5*6'',$%'BRT'M33%//.G.1.,&'023$'0+)%'/,)+*E%)',$5*'.,'6+%/',+65&W

• MC.5,.+*'X'G+,$'5.)F+),/'5*6'5.)1.*%/'X'5)%'453.*E'/,)+*E'3+0F%,.,.+*'5*6''',$%'BRT')%E.+*'/$+216'2,.1.V%'F+//.G.1.,.%/'+44%)%6'G&'5.)'35)E+

Conclusions

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• YR$+),'R%5'R$.FF.*EZ'$.E$1&')%3+E*.V%6'3+*3%F,N')%/F%3,%6'.*',)5*/F+),'F+1.3.%/

• TQR ; Q1&.*E #)23H/ X #)5/F+), P+1.3&

• [+(65&/ C%)& 4%( )%E.+*51 5.)F+),/ .* BRT 2,.1.V% ,$% T+56Q%%6%) R%)C.3%W

Conclusions 2

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T%E.+*51 M.)F+),/\

Y]%'6+'*+,'H*+(N'($5,'(%'6+'*+,'H*+( ZWWW

Conclusions 3

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^4 _+6 $56 )%511& .*,%*6%6 0%* ,+-1&N $%`6 05H% ., %5/.%) ,+ E%, ,+ ,$% M.)F+),W

_%+)E% ].*,%)/

Thank you!

2013.10.15_bacn_beifert

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