Aéroport de Paris - 2018 Registration document

BUSINESS OVERVIEW 06 OVERVIEW OF THE MARKET

Competition with other airports Many airlines are members of alliances, allowing them in particular to combine their various destinations into networks so as to maximise the services offered to customers. In this context, the airport plays an essential role, since it constitutes the link between connecting flights. Its performance may thus be measured based on the connection possibilities that it offers. With the consolidation of the airline industry around a fewmajor alliances and their main airline members, Paris Aéroport is primarily in competition with London Heathrow (80.1 million passengers in 2018), home to British Airways and the Oneworld Alliance members, and Frankfurt airport (69.5 million passengers in 2018), the hub for Lufthansa and its Star Alliance partners. Therefore, according to ACI Europe’s “Hub Connectivity” report, which evaluates the connections network offered at the airport, Paris-Charles de Gaulle is the 3 rd European hub for global connectivity, behind Frankfurt and Amsterdam 1 . Paris-Charles de Gaulle is ranked as the third European hub in the most profitable segment for intercontinental connections with Asia Pacific, behind London-Heathrow and Frankfurt with a growth rate of 7.6% over the past ten years, while the two other airports saw a decline in this segment. Paris Aéroport is also in competition with hubs further afield, such as Dubai (89.2 million passengers in 2018), home of Emirates. Competition with France’s regional airports The leading French airports in terms of passenger traffic are 2 :

Competition with specialised airports Low-cost carriers, led by easyJet, account for 22.3% of the passenger traffic handled at Paris-Orly and Paris-Charles de Gaulle, and their presence will serve as a major source of growth for the airports in the coming years. Paris-Charles de Gaulle and Paris-Orly airports compete with the Beauvais-Tillé airport. The latter received 3.8 million passengers in 2018, an inscrease of 4.0%. However, Paris-Orly airport differentiates itself from this airport through its closeness to Paris, the quality of its facilities (runway equipment, passenger boarding bridges), the variety of retail outlets available to passengers, and by the quality of services offered to them in the terminals. Competition with other means of transportation Although high-speed trains are generally preferred for trips of less than three hours, air travel is preferred when a trip takes more than four hours. Both Paris airports – Paris-Orly and, to a lesser degree, Paris-Charles de Gaulle – face competition from trains, which is likely to intensify with the increasing density of the French high-speed train (TGV) network and the European high-speed network (Thalys, Eurostar). Nonetheless, Groupe ADP believes that the TGV network also offers it advantages, since it delivers passengers to long-haul flights departing from Paris. This is made possible by the TGV train station located in the Paris-Charles de Gaulle airport, which handles approximately 3 million passengers annually. Competition in the cargo and mail market Paris Aéroport is the European leader with 2.25 million tonnes of cargo and mail handled in 2018. Its main competitor in Europe is Frankfurt, with 2.176 million tonnes treated in 2018, compared to 2.156 million tonnes handled at Paris-Charles de Gaulle. Factors of dependence See the paragraph in Chapter 4 entitled “Risks related to the customer portfolio structure”.

2018 traffic (in millions of passengers)

Rank Airport

2018/2017

1

Paris-Charles de Gaulle

72.2 33.1 13.9

+4.0% +3.4% +4.1% +7.4% +3.9%

2 Paris-Orly

3 Nice-Côte d’Azur 4 Lyon-Saint-Exupéry 5 Marseille-Provence

11.0 9.6

Competition with France’s main regional airports is mainly limited to international traffic, since most of the domestic traffic at these airports is with Paris.

1 Please refer to the paragraph “A powerful hub” in Chapter 6. 2 Source: Union des Aéroports français.

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AÉROPORTS DE PARIS ® REGISTRATION DOCUMENT 2018

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