23 Political Newsletter Summer 2014
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1 23 Political Newsletter Summer 2014 Editorial Dear Reader, Since 30 March 2014, Zurich Airport has been operating its summer flight timetable which includes new destinations such as Palermo, Edinburgh and Havana. Etihad Airways will furthermore be running a daily non-stop flight from Abu Dhabi to Zurich from June. By offering more destinations, the airlines are responding to the steady increase in demand for air travel. Spring is in the air at Zurich Airport. Zurich Airport is continually developing its offering in other areas too. A further milestone has also been reached with the planned service centre, The Circle, being erected within walking distance of the terminals. The Zurich University Hospital is planning to set up a university health centre here. Spread over approximately 10,000 m 2, the health centre will operate a 24/7 emergency unit and also offer other services for outpatients and shortterm inpatients. One of the reasons the airport was chosen as the location for the new health centre is its excellent transport links. It is easily accessible both by air and via the distinguished public transport network on the ground. With some 16.6 million rail passengers, 5.6 million bus users, plus 2.3 million tram passengers per year, the airport is also one of the biggest land public transport hubs in Switzerland. Content Editorial Energy supply at the airport secure, economic and eco-friendly New rules for goods imported by travellers Swiss export industry needs a competitive air freight system Zurich Airport: Outstanding public transport hub Revision of aviation policy report In order for Flughafen Zürich AG to run the various infrastructures required at Zurich Airport in the future, it must ensure the provision of electrical power, heating and ventilation. To provide such services also over the coming decades, Flughafen Zürich AG has drawn up an Energy Strategy You can read more about the details of this strategy, as well as the airport s links to the public transport network, in this edition of the Political Newsletter. We will also explain why the new rules laid down by the Federal Council scheduled to come into effect on 1 July 2014 will adversely impact the arrival duty-free shops at airports which were introduced just around three years ago. The new rules now include the previously duty-free allowances for alcohol and tobacco in the CHF 300 value limit for bringing goods into Switzerland. It is feared that this will lead to a drop in purchases at the arrival duty-free and duty-free stores, resulting in a loss of revenue for Swiss airports. An article by guest columnist Peter Widmer on the importance of air freight for the Swiss export industry plus information on the planned revision of the federal government s aviation policy report round off this issue of the Political Newsletter. I wish you a stimulating read! Stephan Widrig Chief Commercial Officer Traffic statistics
2 Energy supply at the airport secure, economic and eco-friendly Zurich Airport connects Switzerland to the world s major cities. In addition, the 280+ companies that operate at Zurich Airport contribute directly and indirectly to value creation of over 6 billion Swiss francs. The airport is therefore comparable with a medium-sized Swiss town. The supply of electrical power, heating and ventilation which Flughafen Zürich AG ensures is vital for the operation of the various infrastructures at the airports, such as passenger and cargo handling terminals, runway lighting and aircraft airconditioning. Stable energy consumption since 1994 Despite continual expansion of the infrastructure, with a 60% increase in the energy reference area and handling of over 50% more transport units since 1994, Zurich Airport s primary energy requirement remained more or less stable at 600,000 megawatt hours (MWh) over this period (see graphic). Flughafen Zürich AG is proud of this achievement and will endeavour to maintain this trend also in the future. Energy Strategy 2030 To ensure the airport can depend on a secure, economic and eco-friendly energy supply over the long term, Flughafen Zürich AG has drawn up an Energy Strategy 2030 which includes energy targets. Flughafen Zürich AG recognises that the energy supply structure in Switzerland is undergoing major changes. The exit from nuclear power has been decided, and the need to significantly reduce the use of fossil fuels to protect the climate is widely acknowledged. It is as yet unclear to what extent alternative energies will contribute Trend in primary energy consumption at Zurich Airport Change from % 160% 140% +59% +55% 120% 100% +2% 80% 60% 40% 20% 0% Primary energy consumption Energy reference area Transport units (a transport unit = one inbound or outbound passenger or 100 kg of freight or airmail handled) Source: Flughafen Zürich AG 2
3 to the energy supply. In addition, the electricity transmission network is approaching the limits of its capacity. As far as the reliable operation of one of Switzerland s most important transport infrastructure systems is concerned, the issue of risk management with respect to possible power outages has a high priority. It is against this background that Flughafen Zürich AG drew up its Energy Strategy Three goals were defined, along with the priorities for achieving them. The three goals of the energy strategy: The number one priority is the economical use of energy. It is the aim to set a cap of 675,000 MWh for our primary energy requirement up to 2030, even if there is a further increase in the energy reference area. This is to be achieved by using energy more efficiently in many areas, for example when renovating building shells. The second goal is smoothing out peaks in electricity demand. Since peak-time electricity is comparatively expensive, this will enable costs to be reduced and more robust operation of the transmission infrastructure, e.g. power lines and substations. The third goal is to increase energy independence. In the event of an energy supply shortage in Europe, the airport should be able to ensure limited operation for at least five days at any time of the year. Erection of further photovoltaic array With respect to electricity, projects such as the photovoltaic system are exemplary. Photovoltaic systems ensure a more independent and eco-friendly energy supply, at an economically acceptable price. Following the array on Dock E, an even bigger array will be set up on top of car park P6. Together, the two arrays will generate almost 1000 MWh of electricity a year in the future. As the energy strategy covers a period of around 16 years, the measures will be successively implemented to achieve the targets set. Zurich Airport energy centre. Zurich Airport joins Emissions Trading System The Emissions Trading System (ETS) will also help ensure an environmentally sound energy supply system in Switzerland. Under the CO2 Act, Flughafen Zürich AG is now also obliged to participate in the ETS. It therefore also has a need for additional certificates and is dependent on a sufficiently liquid and functioning emissions trading market. 3
4 New rules for goods imported by travellers In June 2011 a legislative framework came into effect which enables passengers arriving from abroad to also purchase goods free of customs duties in airport duty-free stores. In this the federal government acceded to the political will of Swiss parliament. Owing to the anticipated shift in purchases from stores abroad to those in Switzerland, additional jobs were to be created and additional revenue generated for Switzerland s aviation industry. Swiss national airports therefore went on to invest over six million francs in setting up sales outlets. In addition to the construction and operational measures required, launching the arrival duty-free shops also required a considerable amount of information to be circulated to passengers. Passengers were informed via various communication channels about the very attractive new service being offered, and about their duty-free allowances and applicable value limits. Arrival duty-free stores make good economic sense The airports are proud of the development of the arrival duty-free concept, which has now become established on the market and is showing double-digit annual growth rates. Passengers value the variety of high-quality goods on offer, and over 70 jobs were created at Swiss airports as a result. This proves that arrival duty-free stores at airports make good economic sense. The decision in favour of arrival duty-free was taken in 2011 on condition that a value limit of 300 Swiss francs would apply to the import of goods by travellers. In addition, a certain quantity of alcohol and tobacco products could also be imported free of duty. New legislation in effect from 1 July 2014 On 2 April 2014, as part of a revision of various ordinances, the Federal Council decided that these previously dutyfree alcoholic drinks and tobacco products would be included in the value limit from 1 July This effectively means a reduction in the value limit for travellers. Flughafen Zürich AG is concerned that the uncertainty of passengers will result in fewer purchases being made in the arrival duty-free shops, and consequently in lower revenues for the airport. The new rules could also put some of the newly created jobs at risk. Flughafen Zürich AG is unable to comprehend why, less than three years after their introduction, the conditions for purchasing goods in the arrival duty-free shops have been changed for the worse to the detriment of passengers and Swiss aviation alike. Arrival Duty Free Store in Arrival 1. 4
5 Swiss export industry needs a competitive air freight system As the largest of Switzerland s three international airports, Zurich Airport is particularly important for Swiss exporting companies and freight forwarders. It provides them with two of their key requirements sufficient space and efficient infrastructures. The air-freight handling company Cargologic is therefore one of the largest employers at Zurich Airport. Peter Widmer As around 80 percent of all exports from Switzerland are transported to overseas markets by air, a well-functioning air freight infrastructure is crucial for Switzerland s success as an exporting nation. Air freight includes in particular high-value goods and temperature-sensitive products from the pharmaceuticals industry. At around CHF 90 billion, these goods represent over 40 percent of total exports from Switzerland by value. Overall, a third of all exports leave Switzerland and a sixth of all imports by value come into the country by air freight. However, the great importance of the air freight industry is not only demonstrated by the transport volumes and the value of goods transported, but by the number of jobs in Switzerland that are directly or indirectly dependent on it. Over 200,000 Swiss jobs in industry, commerce and logistics would be at risk if there wasn t a thriving Swiss air freight sector. Not only the export industry, all airlines that operate medium-haul and long-haul flights to and from Swiss airports are also dependent on air freight as an adjunct to their scheduled flight services, as without air freight virtually all these flights would not be economically viable. Suitable installations for special goods such as high-value cargo, time-critical consignments and temperature-controlled or perishable goods are also vital prerequisites for providing competitive air freight services. Sufficient parking and vehicular handling areas both landside and airside are also essential. Looking ahead, criteria such as competitive costs, sufficient capacity on long-haul flights, effective security, electronic data exchange and attractive conditions in harmony with international regulations are also becoming increasingly important. Zurich Airport is well placed in this regard, and can therefore look forward to remaining an important hub for the Swiss air freight industry. Peter Widmer CEO of Rhenus Alpina AG, Switzerland Chairman of the Board of Directors of Cargologic President of the Swiss Export Association 5
6 Zurich Airport quickly and easily accessible by public transport. Zurich Airport: Outstanding public transport hub With some 16.6 million rail passengers, 5.6 million bus users, plus 2.3 million tram passengers per year, Zurich Airport is also one of the biggest public transport hubs on the ground in Switzerland. The demand for public transport services at Zurich Airport is set to increase at a higher rate than for flights, and will consequently place high requierements on its infrastructure. Flughafen Zürich AG is therefore also investing in the public transport arena to enhance the transfer hub for public transport, and is doing all it can to meet the increasing future demand. The interplay between public transport and Zurich Airport represents a success story. In addition to some 700 flight movements, the Zurich Airport transport hub handles 740 bus, 400 tram and 350 train departures every day. This wide range of public transport services is used not only by half of all passengers and a large number of employees and customers of businesses located at the airport to get to and from the airport. For more and more commuters in the region, too, Zurich Airport is becoming an attractive place to transfer between services. Ensuring an efficient transfer platform well into the future The path from the bus terminal to the railway station at Zurich Airport passes straight through the Airport Center and Check-in 3. Particularly during the morning and evening rush hours, the high volume of commuters often stretches the infrastructure to its limits. Flughafen Zürich AG also intends to make the necessary investments in the infrastructure to ensure the efficient management of this increasing volume of commuters in future. In doing so, it will put the essential elements in place to ensure excellent links between the region around the airport and the public transport network. Timetables must keep up with rising demand Together with continually expanding timetabled services, these investments by Flughafen Zürich AG are helping to achieve politically requested modal split targets. Rising passenger volumes mean that Zurich Airport will continue to grow in the coming years. At the same time, population growth and the increase in the number of jobs in the region around the airport, planned investment projects such as The Circle, and also the continuing rising trend in the use of public transport will lead to an increase in the number of commuters. Realistically, therefore, Zurich Airport will only remain attractive to users of public transport and be able to achieve the modal split targets if the timetabled services are also increased to meet the demand. 6
7 Revision of aviation policy report The current report on the federal government s aviation policy was published in 2004 and has been in force since then. The report sets out the government s policy framework for civil aviation over the coming years. The aviation industry too has developed and changed over the course of the last ten years. The government has therefore asked the Federal Office of Civil Aviation to review the existing report and revise it in line with the current circumstances. Flughafen Zürich AG is campaigning for a modest revision and would like to see a long-term sustainable strategy that will enable it to develop its infrastructure to keep pace with the increasing demand. Flughafen Zürich AG supports the existing report. Most of the objectives are still relevant and some of the measures stipulated are yet to be implemented in full. The planned revision should therefore not take a fundamentally different direction, but rather should bring the existing report up to date. In particular, the mostly out of date forecasts and studies on traffic volume trends and on economic importance should be updated. Only a revision based on the latest data can provide the requisite foundation for a report that will have such a major impact. Focus on increasing competitiveness To equip the Swiss aviation industry to meet future challenges, boosting competitiveness must be at the forefront of the revision. For without the long-term improvement in general operating conditions, the Swiss aviation industry would not be able to remain competitive and keep pace with global competition. As a consequence, Switzerland would be less easy to reach and the attractiveness of the country as a business location would be unnecessarily jeopardised. The associated negative impact on economic growth and jobs must be prevented. Demand-driven development must remain possible The demand arising from global trends, such as the considerable increase in demand for travel to Asia, and consequently a rise in the number of inbound and outbound flights especially in the early morning and late evening, must be met. It should be refrained from any further tightening of night-time curfews or noise protection regulations, as well as from placing any precipitate and irreversible restrictions on ability to expand the aviation infrastructure, as this would exacerbate the demands that are already comparatively stringent in international terms, and make it impossible to develop the Swiss aviation industry in line with demand. Runway system at Zurich Airport. 7
8 Traffic statistics Top twenty destinations in 2013 London and its four airports Heathrow, London City, Gatwick and Luton remained the most frequently used destination, with a volume of 1.7 million passengers. Vienna and Berlin continued to take second and third place, respectively. Growing demand led to capacity adjustments especially for flights to Amsterdam, Dubai, Rome and Lisbon. Top 20 scheduled flight destinations January to December 2013 Number of passengers 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 London Vienna Berlin New York Amsterdam Source: Flughafen Zürich AG Dusseldorf Paris Frankfurt Barcelona Istanbul Dubai Madrid Hamburg Geneva Rome Tel Aviv Copenhagen Lisbon Palma de Mallorca Stockholm Trends in traffic volume during the first quarter of 2014 During the first three months of 2014, Zurich Airport was host to 5.3 million passengers a slight decline of 0.9% from the first quarter of the previous year. The proportion of transfer passengers flying via Zurich Airport fell by 10.7%, while the number of local passengers rose by 4.6%. Traffic volumes January to March Change in % 2014 compared with 2013 Local passengers 3,528,935 3,373, Transfer passengers 1,744,868 1,952, Share of transfers 33.0% 36.6% Total passengers 1 5,296,194 5,346, Flight movements 60,025 60, Freight (in tonnes) 103, , Mail (in tonnes) 9,147 9, incl. transit, general aviation and other Source: Flughafen Zürich AG The most recent traffic statistics are updated every month and can be found in the Internet under Publication details Texts prepared by Flughafen Zürich AG Printing: Flughafen Zürich AG P.O. Box, CH-8058 Zurich-Airport politikbrief@zurich-airport.com 8
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