and the boston - uk market...the overall boston-uk origin-destination (o&d) passenger market is...

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December 1, 2015 Massport Airline Route Development at Boston Logan and the Boston - UK Market

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Page 1: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

December 1, 2015

Massport Airline Route Development at Boston Logan

and the

Boston - UK Market

Page 2: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

Note: Includes Seasonal Service, Source: OAG & Innovata Schedules

Boston Logan has Nonstop

Domestic Service to 75 Destinations

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Page 3: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

Boston Logan has Nonstop

International Service to 53 Destinations

Note: Includes Seasonal Service, Source: OAG & Innovata Schedules

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Page 4: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

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Page 5: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

Page 6: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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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

Page 7: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

Page 8: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

Page 9: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

The Overall Boston-UK Origin-Destination (O&D) Passenger Market

has been Stable for Several Years

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0

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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

Page 10: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

Overall Boston-UK Nonstop Available Seat Capacity is still Lower

vs. 4 Years Ago, Despite New LCC Service in 2016

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Delta began London service in 2011

American canceled London service in 2013, backfilled by additional

British capacity

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BOS-UK Scheduled Available Seats

LHR/BA LHR/VS LHR/DL LHR/AA LGW/DY MAN/MT

Page 11: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

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BOS-UK O&D Average Fares, by quarter

LHR MAN EDI GLA

Page 12: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

The Boston-London O&D Market has Decreased Slightly, but New

Nonstop LCC Service is Expected to Stimulate Traffic

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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)

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BOS-LHR O&D Passengers by Carrier, by quarter

BA VS AA DL EI FI Other

Page 13: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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)

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BOS-MAN O&D Passengers by Carrier, by quarter

BA EI AA DL UA FI Other

Page 14: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

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BOS-EDI O&D Passengers by Carrier, by quarter

BA EI DL VS UA AA Other

Page 15: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

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

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BOS-GLA O&D Passengers by Carrier, by quarter

BA EI FI AA UA DL Other

Page 16: and the Boston - UK Market...The Overall Boston-UK Origin-Destination (O&D) Passenger Market is very Large, Dominated by London Boston is the 6th largest US-UK o&d passenger market

Thank You…..Thank You Very Much

For more information, please contact:

Yil Surehan

Director, Airline Route Development

Massachusetts Port Authority (Massport)

(617) 568-3989

[email protected]

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