ASIA BUSINESS WEEK DUBLINDublin Beijing Business Summit

4 June 2014

Connectivity To China: Why it Matters

Kevin Toland, Chief Executive,Dublin Airport Authority

Dublin-Beijing Business Summit

Connectivity to China –

why it matters

4th June 2014

Outline

• Introduction to daa

• Airports as economic facilitators

• Air service and FDI from the Unites States – a model ?

• Potential for Chinese traffic in Dublin

• Connectivity for business and leisure

daa –Who we are

• State owned airport management company, with mandate

to operate on fully commercial basis

• €501m turnover

• Four operating business units

- Dublin Airport

- Cork Airport

- ARI (with presence in Kunming Airport)

- daa International

Strong 2013 performance at Dublin Airport

20.2m pax + 6%

Continental Europe 10.5m + 5%

Britain 7.2m + 4%

Transatlantic 1.9m +13%

Middle East 0.5m +13%

57 airlines; 175 destinations

10 new services launched

40 airlines grew business at Dublin in 2013, 70% of

total

548,000 transfers +36%

NI traffic 570,000 +11%

Top 5 for customer service

Airports and Air Service Networks are critical economic facilitators

• Impact of Paris Airport on Ille de France region – 300,000 jobs and €25bn income injection (and the small geographic region produces 30% of French GDP)

• 30% of companies re-locating to Munich cite the airport’s route network as the critical re-location factor

• Strong Eastern European route network from Vienna has made it a regional HQ for Coca Cola, Ericsson,IBM,SAP, Kraft Foods

• 2007 LAED study showed that each Asian and European international flight at Los Angeles Airport created 3,126 jobs, $156m in wages and $623m in annual revenues to businesses in the Los Angeles area

• Connectivity created by international air service has a massive stimulatory effect on economies

Ireland and Dublin has demonstrated that it can deliver in this area

US FDI investment into Ireland is bigger than France/Germany combined, and 20% higher than BRIC countries combined

US companies are expected to continue to invest in Ireland, creating additional 20,000 jobs between 2012 and the end of 2014

$1 in every $20 invested around the world by US businesses resides in the Irish economy

Dublin Airport’s US route network punches above it’s weight and underpins

Ireland-US trade links

Ranked Origin O&D Traffic in Millions

1 London-Heathrow, EN, GB 10.1

2 Paris-De Gaulle, FR 5.0

3 Frankfurt, DE 2.6

4 Rome-Da Vinci, IT 2.3

5 Amsterdam, NL 2.1

6 Dublin, IE 1.8

7 Madrid, ES 1.7

8 Manchester, EN, GB 1.6

9 London-Gatwick, EN, GB 1.5

10 Barcelona, ES 1.5

11 Zurich, CH 1.3

12 Munich, DE 1.1

13 Copenhagen, DK 1.1

14 Brussels, BE 1.0

15 Istanbul, TR 1.0

Source: IATA AirportIS database

Current demand for Ireland -China flights

Source: IATA AirportIS database

Ireland –China market can exceed 105k passengers by 2017 at

current growth rates (excluding any stimulation by direct services)

Almost 40,000

additional passengers

2013-17

Source: IATA AirportIS database

Connectivity for business

• By 2018 Beijing will have two state-of-the art

international airports

• Direct access to China’s capital city

• Currently offers one stop access to 81 cities in China,

plus 21 other key business cities in Asia-Pacific region.

Opening of new (additional!) airport in 2018 will

increase this network

• Critical for Ireland to be linked into this critical global

hub airport system to be competitive for business

Connectivity for leisure

• 10m Chinese tourists to Europe by 2021

• Europe will be second fastest growing

international destination for Chinese

travellers

• By 2012, outbound Chinese tourism

established as global no.1 for international

tourism spend ($102bn – a 40% increase on

2011)

Source: Tourism Ireland

Distinguished Chinese visitors appear to enjoy the Irish tourism

product………

Team Ireland approach to developing the China market

• Dublin Airport Twinning Agreement with Beijing Capital International Airport offers unique opportunity to jointly develop direct air services

• Builds on the successful Twinning Link between Dublin and Beijing at city level

• Close co-operation with all stakeholders including CAAC, Tourism Ireland, IDA, Enterprise Ireland, DOJ, DFAT

• Irish Embassy Beijing acts as on the ground lead/co-ordinator

• Direct air services to Ireland now accepted by both Irish and Chinese governments as a key priority

• Using air service development as a facilitator, can we repeat the US experience with Chinese FDI to Ireland ?