Irish Aviation Research Institute

Aer Lingus has announced that it has increased capacity on the Dublin to London Gatwick route by 56%, with the carrier adding two additional daily rotations for a total of six daily rotations which commenced on the 19 th of October (Aer Lingus website), with new early morning departures at both ends of the route, providing higher frequency with a wider range of timings, which will be particularly attractive to business traffic. The increased London Gatwick route capacity increase is consistent with its demand-lead strategy, as the carrier re-deploys capacity from Southern Europe to Northern Europe (Investor Day Conference Call 28 th of September), where their is an increased business traffic mix. Aer Lingus has been winning back market share in the key London market with the carrier having market share of 45% in 2010 up from 39% in 2009 (Flying in Ireland April 2011), having product differential in the market with roll out of new fare pricing structure, participation in GDS,

On the 8 th of September Emirates Airlines announced that it was launching a new route from it’s Dubai Base to Dublin commencing on the 9 th of January 2012 operating daily using an Airbus A330-200, becoming the 29 th European City on its route network (Emirates Airlines). On the 21 st of September the carrier announced that it was seek to fill 17 job positions at its new Dublin station being set up, including cargo and passenger roles (ITTN), the carrier was looking at options to serve the IT package market (ITTN). It was citied by Routes online (8 th of September) that the 54,000 Origin & Destination passengers travel annually between Ireland and the UAE, with 10% of this market currently flying via Emirates Airlines UK routes, the carrier could potentially capture O&D traffic connecting via European Hubs. On the Breakfast Business Show with Ian Guider on Newstalk 106-108FM (Thursday 20 th October). The Emirates Airlines VP UK & Ireland Laurie Berryman stated when t

Lufthansa is to expand its route network into Ireland for summer 2012 with the carrier launching two new routes from its Düsseldorf Base to Dublin and Ireland West Knock Airport , in addition to restoring its seasonal Munich to Dublin route. The German consumer confidence is strong, on the back of economy growth of 3.6% (Tourism Ireland ) which is driving demand for air travel. The new Lufthansa Ireland West Knock route will carry 2,000 passengers generating €1 million in revenues, annually over 200,000 Germans visit the West of Ireland, with Ireland West Airport confident that Lufthansa will continue to grow its operation beyond 2012 with increased capacity and new routes (Anna.Aero).      Germanwings is to increase capacity by 25% on the Cologne/Bonn to Dublin route for summer 2012 increasing frequency from three to four flights weekly (Germanwings). The German market is the third largest travel market inbound with 380,000 German tourists visiting Ireland in 2010

                         Air Travel will play a crucial role in the recovery of the Irish economy playing a valuable role to drive inward Foreign Direct Investment, and enabling Irish companies to grow export markets, with the economic expected to grow by 1.8% in 2012 (Irish Central Bank) . It was citied in the research of Ishutkina that between 1985 and 2005 the average growth rate of the airline sector in Ireland was 17.1% ,almost triple the GDP rate of 6.1%, as a result of EU liberalization packages opening up the market. Therefore the key to unlocking the growth of the aviation sector will be further liberalization of the market by creating a competitive cost environment with airport infrastructure, and expanding open skies agreements. The air transport sector is a key connectivity tool enabling movement of capital, knowledge, opportunity, people, resources and skills; it impacts on the economy directing creating jobs and indirectly i.e. for every 1 million passengers

Aer Lingus announced that it carried 954,000 passengers in September up 5% including Aer Lingus Regional operations, with a load factor of 83.9% up 3%. The airline carried 92,000 long-haul passengers up 7% with a load factor of 87% up 5.2%, and 862,000 short-haul passengers up 2.5%, with a load factor of 82.5% up 1.9%. The Aer Lingus Regional operation continues to grow strongly with passenger numbers up 45% to 71,000 passengers, as usual the figures excludes the United Airlines Joint Venture route from Washington Dulles to Madrid. It has been reported the frequency on the route will be reduced to four times weekly for the winter schedule. Ryanair announced that it carried 7.25 million passengers in September up 6%, with a load factor of 85% down 1% and in the rolling 12 months to the end of September it carried 76.8 Million passengers. The Ryanair CEO Michael O’Leary recently stated the carrier plans to grow its Oslo Rygge Base from 1.5m to 2 million passengers in 2012, with the carri