capa low-cost long-haul summit - centre for aviation · capa low-cost long-haul summit hamburg2019....
TRANSCRIPT
![Page 1: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/1.jpg)
CAPA Low-Cost Long-Haul Summit
Hamburg 2019
![Page 2: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/2.jpg)
Air Arabia started its operations in October 2003 as the first low-cost airline in the MENA region.
![Page 3: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/3.jpg)
We have since then:
• Grown to become the largest LCC operator in the MENA region.
• Carried over 90 million passenger so far.
• The Arab world largest listed airline with shares traded in the Dubai Financial Market.
• A group of diverse businesses worth over $4 billion.
• Amongst the world most profitable airlines.
![Page 4: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/4.jpg)
Ranked 3rd airline in the world in terms of:
EBTIDARMargins
FixedCharges Liquidity Leverage Average
Fleet Age
NetMargins
Ranked 1st airline in the world in terms of:
Source: Aviation Week
Source: Airline Weekly
![Page 5: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/5.jpg)
Adopted the multi-hub business model
Morocco
Casablanca Fez Marrakech Nador Tangier
Egypt
Alexandria Upper Egypt Sharm El Sheikh
UAE
Sharjah Ras Al Khaimah
Cairo
![Page 6: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/6.jpg)
2019
6 leased Airbus A321 NEO/LR
Range: Up to 8 hrs
Future
54 owned Airbus A320
Range: Up to 5.5 hrs
Current
Fleet growth projection
Possible 100+ aircraft order
Before year end 2019
![Page 7: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/7.jpg)
Fleet utilization
Block hours
Average weekly utilization
![Page 8: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/8.jpg)
Currently serving 170 routes in 50 countries
![Page 9: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/9.jpg)
Extending reach (6-8 hours) operation with A321 neo LR
![Page 10: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/10.jpg)
Unlocking potential markets within 8hrs radius
![Page 11: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/11.jpg)
Low-Cost Medium-Haul?
• Evolving our business model rather than changing it.
• Embarking on a new generation aircraft to open-up new
markets while maintaining a low-cost operations.
![Page 12: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/12.jpg)
Never say never – the future is changing
• While low cost–long haul is yet to be proven successful; the economics of the
industry is constantly changing.
• Airline bankruptcies have increased in 2019 at the fastest ever rate, reaching 17
carriers.
• 2019 also seen the most profit warnings issued by airlines – conventional
airlines & LCC’s alike!
![Page 13: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/13.jpg)
Why?
![Page 14: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/14.jpg)
Who controls the state of the industry?
• The dual monopoly of aircraft manufacturers imposed on airline operators?
• Airports who constantly increase charges or keep on adding new ones?
• Regulations in many countries where taxation exceeds the airline fare charged to
customers?
• The few international organizations that speaks for the industry but don’t add
tangible value?
![Page 15: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/15.jpg)
We need a closer look at the industry’s strength?
![Page 16: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/16.jpg)
What can we do?
• Capitalize on the force of aviation which has a global economic impact.
• Take control of prioritizing the key drivers of a successful & sustainable
industry.
• Airlines should work together for a better industry and not against each
other.
![Page 17: CAPA Low-Cost Long-Haul Summit - Centre for Aviation · CAPA Low-Cost Long-Haul Summit Hamburg2019. Air Arabia started its operations in October 2003 as the first low-cost airline](https://reader033.vdocuments.mx/reader033/viewer/2022050300/5f6987327f9cb666b179a49f/html5/thumbnails/17.jpg)
Thank you