"Connectivity To China: Why it Matters" Kevin Toland, Chief Executive, Dublin Airport Authority, speaking at the Dublin Beijing Business Summit on 4 June during Asia Business Week Dublin 2014
Kevin Toland, Chief Executive, Dublin Airport Authority
1. ASIA BUSINESS WEEK DUBLIN
Dublin Beijing Business Summit
4 June 2014
Connectivity To China: Why it Matters
Kevin Toland, Chief Executive,
Dublin Airport Authority
3. 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
4. daa–Whoweare
• 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
5. Strong2013performanceatDublinAirport
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
6. AirportsandAirServiceNetworksarecriticaleconomicfacilitators
• 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
7. IrelandandDublinhasdemonstratedthatitcandeliverinthisarea
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
8. DublinAirport’sUSroutenetworkpunchesaboveit’sweightandunderpins
Ireland-UStradelinks
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
11. Connectivityforbusiness
• 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
12. Connectivityforleisure
• 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
14. TeamIrelandapproachtodeveloping theChinamarket
• 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 ?