Switzerland and air transport: status and perspectives

1. Switzerland and air transport:status and perspectives Star Alliance Travel Manager Forum November 16, 2007 Paul Kurrus, VP Public & Environmental Affairs, SWISS

2. Agenda • Global trends and the economic importance of air transport • Climate change: some facts • Noise pollution: some facts • Conflicts of interest • The Swiss Federal Council’s 2004 Report on Swiss Aviation Policy • Switzerland’s aviation interests • Operating parameters for Zurich Airport • The Movement Ceiling Initiative for operations at Zurich Airport

3. Global trends and the economic importance of air transport • Air transport is promoted by political powers to enhance locational appeal. • Air transport is of vital importance in economic terms. • Value-adding and employment provided by Swiss air transport (in 2004) • - CHF 26.1 billion = 5.9% of GDP • - 176 600 jobs = 3.6% of Switzerland’s workforce • - 100 jobs in air transport = 610 in other sectors • Source: Infras, “Die volkswirtschaftliche Bedeutung der Luftfahrt in der Schweiz”, 2006

4. Global trends and the economic importance of air transport • Air transport is expected to see further global growth of 4% a year. • The challenges for network carriers: • - cost pressures from low-cost airlines (on home continent) • - cost pressures from megacarriers (intercontinental). • The response of the network carriers: • - consolidation by merger (Air France/KLM, Lufthansa/SWISS, • US Airways/America West) • - alliances. • Asymmetries and cost increases in the security field.

5. Climate change: some facts • Key environmental issues • Global: 1. CO2 2. NOX at cruising altitudes • Local: 1. Noise 2. LTO NOX (LTO = landing/takeoff phases of flight) • Water vapour:  contrails  possible cirrus cloud formation (adds to greenhouse effect, but extent not yet fully researched)

6. Sources of CO2 emissions in the EU, 2000 Households 20% Industry 16% Transport (all) 25% Electricity prod’n 36% Air transport 3%(globally: 2%) Source: AEA

7. Zurich’s noise pollution has been steadily reduced: areas affected in 2000

8. Areas affected in 2004

9. Development of noise 1987 to 2005 • Movements • per year 1987: 179‘163 1988: 193‘909 1989: 204‘309 1990: 214‘470 1991: 216‘313 1992: 227‘615 1993: 228‘994 1994: 236‘977 1995: 238‘232 1996: 251‘209 1997: 271‘147 1998: 281‘808 1999: 296‘379 2000: 314‘714 2001: 299‘344 2002: 275‘999 2003: 262‘586 2004: 259‘091 2005: 258‘790

10. Conflicts of interest • Locational appeal, value-adding and jobs • versus • noise emissions, restricted housing development and safety risks

11. The Swiss Federal Council’s 2004 Report on Swiss Aviation Policy • Purpose To define air transport’s political objectives • Value Provides a comprehensive political foundation to be used when making laws • Last previous report 1953 • Prompted by Kurrus motion 01.3375 • GPK-SR recommendation 02.3467

12. Switzerland’s air transport interests (as presented in the Swiss Federal Council’s 2004 Report on Swiss Aviation Policy) • Paramount goal: to ensure Switzerland’s connection by air to • Europe’s and the world’s centres. • The achievement of this goal can best be ensured by Swiss-based • companies. • Air transport is an element in foreign trade policy and a key factor in • locational appeal. • The competitiveness of Swiss air transport must be promoted. • The corresponding infrastructure must permit the creation and • maintenance of competitive air transport links.

13. Operating parameters for Zurich Airport Movement Ceiling Initiative Restrictions on the use of Southern German airspace Operating restrictions (runway capacity, holding areas, minimum altitudes, noise regulations, environmental protection measures) Taxes, levies and fees (noise, emission, landing, passenger and security taxes, levies and fees)

14. Operating parameters: taxes, levies and fees • ATC fees • Security costs • Noise costs • Training costs • Airport user fees

15. TheMovement Ceiling Initiative and the ZFI+counterproposal • Movement Ceiling Initiative: • That Canton Zurich should lobby the federal authorities for: • a nine-hour night movement ban • a maximum of 250 000 movements a year. • The Cantonal Council’s ZFI+ counterproposal: • That Canton Zurich should lobby the federal authorities for: • a night movement ban of seven hours, plus a 30-minute grace period to reduce delays • the Cantonal Council to decide, if 320 000 movements a year are reached, whether restrictions are required (with an optional further referendum a possibility) • the Government Council to define the number of persons severely affected by aircraft noise using the “ZFI” Zurich aircraft noise index.

16. Assessment of the Movement Ceiling Initiative • Switzerland needs a network of European and intercontinental air • services that are tailored to demand. • SWISS needs a hub airport at which it can coordinate and connect its • European and intercontinental services. • SWISS needs to have competitive conditions and long-term • development prospects at this hub airport. • A night movement ban of eight or nine hours would make it impossible • to operate the SWISS route network in its current form and scope. • Restricting total aircraft movements is not the best way to reduce • aircraft noise.

17. Zurich night movement ban from 22:00 to 07:00: SWISS destinations affected Current arrivals between 06:10 and 06:55Current departures between 22:00 and 23:00 Intercontinental (flights per week) Johannesburg 6 Tel Aviv 7 Douala/Yaounde/Malabo 3 Hong Kong 7 Nairobi/Dar es Salaam 3 Bangkok/Singapore 6 Riyadh/Jeddah 3 Johannesburg 6 Dubai/Muscat 7 São Paulo 5 Mumbai 7 31 Bangkok/Singapore 6 Hong Kong 7 Montreal 7 49 Europe Basel 7 Basel 7 Geneva 7 Geneva 7 Stuttgart 7 Stuttgart 7 Thessaloniki 7 Thessaloniki 7 28 28 Seasonal Istanbul 4 Istanbul 4 Oporto 3 Oporto 3 7 7

18. Zurich has steadily extended its night movement ban

19. Zurich already has more operating restrictions than any other European hub * = possible restrictions on movement volumes

20. “A nation that doesn’t fly will find itself flown over.”Slogan adopted by the Pro Aero Foundation in 1944, supported by Federal Councillors E. Celio, K. Kobelt and General H. Guisan

21. Danke Thank you for your attention