NO TYPE OR IMAGES CAN TOUCH THE SKY

1. NO TYPE OR IMAGES CAN TOUCH THE SKY AIRPORT RELOCATION VERSUS DUAL SOLUTION Gerry O’Shaughnessy – Manager, Airport & ATC Charges New Lisbon Airport Forum 22 November 2005

2. NO TYPE OR IMAGES CAN TOUCH THE SKY • SITUATION • Lisbon Portella is capacity and development constrained • Constraints related to stands and terminal capacity • New Ota Airport available earliest 2015 • There are proposals for either: • Portella to remain open along with Ota. • Continued use of Portella plus military airfield near Lisbon. New Lisbon Airport Forum 22 November 2005

3. NO TYPE OR IMAGES CAN TOUCH THE SKY • ECONOMIC ASPECTS • Operating from two or more airports is undesirable for airlines. • Particularly so for hub or based carriers due: • - Inability to optimize economies of scale • - Increased costs from inflexibility and duplication • - Customer confusion New Lisbon Airport Forum 22 November 2005

4. NO TYPE OR IMAGES CAN TOUCH THE SKY • ECONOMIC ASPECTS (cont.) • Airports are essential for economic and social development. • Dual airport operation can be undesirable for Government due: - Duplication and under-utilisation of assets including surface access facilities. - Higher tariffs contrary to economic and social development New Lisbon Airport Forum 22 November 2005

5. NO TYPE OR IMAGES CAN TOUCH THE SKY • ECONOMIC ASPECTS (cont.) • We recommend Portella used for as long as practicable and capable of handling forecast traffic. • Dual airports can be justified for large catchment area with capacity constraint – LHR 65 mppa and LGW 32 mppa . • Can this be justified for Lisbon with 10.7 mppa? New Lisbon Airport Forum 22 November 2005

6. NO TYPE OR IMAGES CAN TOUCH THE SKY • CONSIDERATIONS & PROBLEMS WITH DUAL AIRPORTS • When new airport serves same geographical area but located long distance from town. •  What should be done with the ‘old’ facility? New Lisbon Airport Forum 22 November 2005

7. NO TYPE OR IMAGES CAN TOUCH THE SKY • CONSIDERATIONS & PROBLEMS WITH DUAL AIRPORTS (cont.) • Some solutions and results: • Traffic split between 2 airports e.g. Domestic at Tokyo Haneda and International at Narita - difficulties for transfer and feeder traffic. • International and charter traffic moved to Montreal Mirabel with Dorval retaining domestic and regional traffic – Mirabel is now a “white elephant”. • Milan – Government directives to split international traffic resulted in legal action via EC. New Lisbon Airport Forum 22 November 2005

8. NO TYPE OR IMAGES CAN TOUCH THE SKY • CONSIDERATIONS & PROBLEMS WITH DUAL AIRPORTS (cont.) • Lessons: • Airlines intensely competitive and driven by market needs. • Any directives on market split must be non-discriminatory. • “Low-cost” facilities must be available to all airlines. • Rules on domestic/international split must apply equally to all. New Lisbon Airport Forum 22 November 2005

9. NO TYPE OR IMAGES CAN TOUCH THE SKY • OPERATIONAL CONSIDERATIONS • ATC complexities • Negative impact on ATC and runway capacity • Constraints particularly on future growth New Lisbon Airport Forum 22 November 2005

10. NO TYPE OR IMAGES CAN TOUCH THE SKY • ENVIRONMENTAL CONSIDERATIONS • Airports are focus of environmental attention. • Dual airports double the environmental impact • Noise emissions and surface access impact. • Increased land-use restrictions necessary New Lisbon Airport Forum 22 November 2005

11. NO TYPE OR IMAGES CAN TOUCH THE SKY • Conclusion • Airports essential catalyst for economic and social growth • Airport operations should benefit all stakeholders • Government and airport authority must consider: • Earliest new airport capacity will be 2015 • We should not wait ten years for solution • Interim solution must be speeded-up • Necessity to optimize Portella in meantime. New Lisbon Airport Forum 22 November 2005