and the boston - uk market...the overall boston-uk origin-destination (o&d) passenger market is...
TRANSCRIPT
December 1, 2015
Massport Airline Route Development at Boston Logan
and the
Boston - UK Market
Note: Includes Seasonal Service, Source: OAG & Innovata Schedules
Boston Logan has Nonstop
Domestic Service to 75 Destinations
2
Boston Logan has Nonstop
International Service to 53 Destinations
Note: Includes Seasonal Service, Source: OAG & Innovata Schedules
3
Of the 128 Total Nonstop Destinations Served from Boston Logan,
Low-Cost Carriers Provide Competing Service to 83 Destinations
Note: Includes Seasonal Service,
Source: OAG & Innovata Schedules
4
5
In the Past 10 Years, We have been Successful in Adding New
Service to Many Key Destinations Worldwide
Europe Cologne (starts May 2016)
Copenhagen (starts Mar 2016)
Dublin
Dusseldorf (starts May 2016)
Lisbon
London-Gatwick (starts May 2016)
Madrid
Manchester (starts May 2016)
Oslo (starts May 2016)
Asia Beijing
Hong Kong
Shanghai
Tokyo
Middle East Doha (starts Mar 2016)
Dubai
Istanbul
Tel Aviv
New Service US/Canada
Atlantic City
Austin
Charleston
Dallas-Love
Houston-Hobby
Nashville
New Orleans
Portland, OR
Sacramento
San Jose
Sarasota
Savannah
Toronto-City Centre
Caribbean/Latin Barbados
Grand Cayman
Guadeloupe (starts Dec 2015)
Liberia, CR
Martinique (starts Dec 2015)
Mexico City
Panama City
Port au Prince
Puerto Plata
Punta Cana
St. Lucia
St. Maarten
St. Thomas
Santiago, DR
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We have also been Successful in Expanding Service to Several
Existing Destinations Worldwide
Europe Amsterdam #2
Dublin #2
London #6
Munich (to year-round)
Paris #4 (seasonal)
Reykjavik #3, 4 (seasonal)
Rome (to year-round)
Shannon (to year-round)
Zurich #2
Middle East Dubai #2
Caribbean/Latin Cancun #3 (seasonal)
Santo Domingo #2 (seasonal)
Expanded Service
US/Canada: LCC Growth
jetBlue BOS ‘hub’ development (to 150+ daily departures
by end 2016)
Spirit began service in 2006
Southwest began service in 2009
Sun Country began service in 2009
Virgin America began service in 2009
Porter began service in 2009
WOW Air began service in 2015
Norwegian begins service in 2015
WestJet begins service in 2016
Eurowings begins service in 2016
Air Berlin begins service in 2016
Thomas Cook begins service in 2016
7
Opportunities for Further Growth Exist in the Next Few Years
Europe Barcelona
Brussels
Edinburgh/Glasgow
Milan
Stockholm
Asia Delhi/Mumbai
Seoul
Caribbean/Latin Antigua
Bogota
San Jose, CR
Sao Paulo
US/Canada Vancouver
Europe Germany
Ireland
UK
Continued LCC growth
Caribbean/Latin Continued LCC growth
US/Canada Continued LCC growth
Expanded Service New Service
The Overall Boston-UK Origin-Destination (O&D) Passenger Market
is very Large, Dominated by London
8 Boston is the 6th largest US-UK o&d passenger market
Total O&D Pax PDEW O&D Fare O&D Revenue
1 LHR London-Heathrow 519,711 712 $610 $317,152,201
2 MAN Manchester 39,627 54 $411 $16,301,470
3 EDI Edinburgh 27,327 37 $435 $11,898,465
4 GLA Glasgow 17,038 23 $312 $5,312,322
5 BHX Birmingham 9,046 12 $294 $2,663,043
6 LGW London-Gatwick 8,041 11 $283 $2,274,823
7 NCL Newcastle 6,530 9 $370 $2,412,945
8 ABZ Aberdeen 3,239 4 $414 $1,340,359
9 LBA Leeds 2,977 4 $394 $1,171,802
10 BRS Bristol 2,645 4 $319 $845,006
11 BHD Belfast-Best 1,409 2 $592 $834,183
12 CWL Cardiff 1,379 2 $505 $695,893
13 NWI Norwich 879 1 $350 $307,329
14 BFS Belfast-Int'l 853 1 $353 $301,052
15 HUY Humberside 609 1 $511 $311,006
16 LCY London-City 479 1 $654 $313,433
17 INV Inverness 407 1 $483 $196,406
18 MME Durham 391 1 $529 $206,664
19-37 Other 882 1 $465 $409,943
BOS-UK Total 643,469 881 $567 $364,948,343
No nonstop service
Top BOS-UK O&D MarketsYE 2Q2015
BOS Market
The Overall Boston-UK Origin-Destination (O&D) Passenger Market
has been Stable for Several Years
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0
50,000
100,000
150,000
200,000
250,000
20
10
Q1
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Q2
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Q3
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Q2
BOS-UK O&D Passengers, by quarter
LHR MAN EDI GLA Other
The overall Boston-UK o&d market has grown only 2% vs. 4 years ago
The market experiences significant seasonal changes in demand
Overall Boston-UK Nonstop Available Seat Capacity is still Lower
vs. 4 Years Ago, Despite New LCC Service in 2016
10
Delta began London service in 2011
American canceled London service in 2013, backfilled by additional
British capacity
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,0002
01
0 Q
1
20
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Q2
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Q3
BOS-UK Scheduled Available Seats
LHR/BA LHR/VS LHR/DL LHR/AA LGW/DY MAN/MT
Average Fares in the Overall Boston-UK Market have been Stable;
London Fares Increased After American Canceled Service
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London has the highest average fares due to significant business traffic
London average fares increased after American canceled service in 2013
$0
$100
$200
$300
$400
$500
$600
$700
$8002
01
0 Q
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Q2
BOS-UK O&D Average Fares, by quarter
LHR MAN EDI GLA
The Boston-London O&D Market has Decreased Slightly, but New
Nonstop LCC Service is Expected to Stimulate Traffic
12
The Boston-London o&d market has dropped -3% vs. 4 years ago
British has the largest share (50%)
Norwegian begins nonstop BOS-London/Gatwick service eff. 5/12/16
(B787, 4x/week)
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,0002
01
0 Q
1
20
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BOS-LHR O&D Passengers by Carrier, by quarter
BA VS AA DL EI FI Other
The Boston-Manchester O&D Market has Grown,
due to Aer Lingus, and New Nonstop LCC Service is Expected to
Further Stimulate Traffic
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The Boston-Manchester o&d market has grown 18% vs. 4 years ago
British has the largest share (32%); Aer Lingus has been gaining share
and stimulating traffic via Dublin
Thomas Cook begins nonstop seasonal BOS-Manchester service
eff. 5/30/16 (A330, 2x/week)
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,0002
01
0 Q
1
20
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Q2
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Q3
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Q4
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Q1
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Q2
BOS-MAN O&D Passengers by Carrier, by quarter
BA EI AA DL UA FI Other
The Boston-Edinburgh O&D Market has also Grown,
due to Aer Lingus
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The Boston-Edinburgh o&d market has grown 19% vs. 4 years ago
British has the largest share (31%); Aer Lingus has been gaining
share and stimulating traffic via Dublin
Future nonstop BOS-Edinburgh LCC service will stimulate traffic
0
2,000
4,000
6,000
8,000
10,000
12,0002
01
0 Q
1
20
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Q2
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Q1
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Q2
BOS-EDI O&D Passengers by Carrier, by quarter
BA EI DL VS UA AA Other
The Boston-Glasgow O&D Market has also Grown,
due to Aer Lingus and Icelandair
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The Boston-Glasgow o&d market has grown 33% vs. 4 years ago
British has the largest share (29%); Aer Lingus & Icelandair have been
gaining share and stimulating traffic via Dublin & Reykjavik, respectively
Future nonstop BOS-Glasgow LCC service will stimulate traffic
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,0002
01
0 Q
1
20
10
Q2
20
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Q3
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Q4
20
11
Q1
20
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Q2
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Q3
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Q4
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Q1
20
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Q2
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Q3
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Q4
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Q1
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Q2
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Q3
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Q4
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Q1
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Q2
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Q3
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Q4
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Q1
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Q2
BOS-GLA O&D Passengers by Carrier, by quarter
BA EI FI AA UA DL Other
Thank You…..Thank You Very Much
For more information, please contact:
Yil Surehan
Director, Airline Route Development
Massachusetts Port Authority (Massport)
(617) 568-3989
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