Copa Airlines: Past and Future Growth March 1st, 2013
Agenda 1. Performance of recent years 2. Future plans
Agenda 1. Performance of recent years 2. Future plans
2012: A year of important achievements 24% capacity growth 5 new destinations More frequencies 13 new generation B737-800 s On time performance near to 90% Entry into Star Alliance Transition from OnePass to MileagePlus
Business Model Based on 4 Fundamental Strengths Best Geographic Location Connectivity Right Infrastructure World Class Product On-time Performance Index 95% 90% 85% 80% 75% 70% 87.6% 87.7% 90.7% 90.5% 89.2% 2008 2009 2010 2011 2012
Panama s privileged position has allowed it to become a major center of business and trade in the Americas
The most complete Network in Latin America LOS ANGELES LAS VEGAS TORONTO CHICAGO WASHINGTON D.C NUEVA YORK -JFK ORLANDO MIAMI HABANA NASSAU MONTERREY CANCUN MEXICO PUNTA KINGSTON SANTIAGOCANA SAN JUAN GUADALAJARA MONTEGO GUATEMALA SAN PEDRO BAYSULA PORT AU SANTO ARUBA PRINCE DOMINGO CURAÇAO SAN SALVADOR TEGUCIGALPA SMR MARACAIBO SAN ANDRES BARRANQUILLA MANAGUA CARTAGENA CARACAS LIBERIA SAN JOSE CUCUTA VALENCIA BUCARAMANGA MEDELLI PEREIRA N BOGOTA CALI ST MAARTEN PORT OF SPAIN 64 destinations GUAYAQUIL LIMA IQUITOS LETICIA MANAUS RECIFE in 29 countries SANTA CRUZ BRASILIA SAO PAULO BELO HORIZONTE RIO DE JANEIRO ASUNCION PORTO ALEGRE SANTIAGO CORDOBA BUENOS AIRES MONTEVIDEO Network January 2013
Panama has the highest connectivity of the Americas Thanks to the Hub of the Americas, Panama has the best connectivity in the Americas relative to its GDP. Source: IATA Briefing: Economic benefits from air transport in Panama, 2011
Tocumen Airport grows together with Panama Hub of the Americas North Terminal Expansion Investment of US$100 million by Panamanian Government Added 12 new jet bridges New taxiways, ramp and support areas Enables planned growth for next 3-5 years
Tocumen Airport grows together with Panama Hub of the Americas Future Expansion Investment of ~US$779 Million 20 additional jet bridges Independent Check-in, immigration, customs and baggage claim New Control Tower Aircraft parking area
Airport Infrastructure is a Significant Advantage The Hub of the Americas offers non-stop service to over twice the number of destinations as competing hubs Source: OAG Max January 2013
In the last two years we added 14 destinations to our network June 2011 Toronto, Canadá (4x per week) Porto Alegre, Brasil (4x per week) Brasilia, Brasil (4x per week) Nassau, Bahamas (4x per week) December 2011 Chicago E.E..U.U. (Daily) Cúcuta, Colombia (4x per week) Asunción, Paraguay (4x per week) Monterrey, México (4x per week) Montego Bay, Jamaica (2x per week) June 2012 Liberia, Costa Rica (2x per week) Recife, Brasil (4x per week) Las Vegas, E.E.U.U. (4x per week) Willemstad, Curaçao (4x per week) Iquitos, Perú (2x per week)
Growing opportunities with the six-bank hub structure The Hub of the Americas offers better schedules and more connecting options DEPARTURES DEPARTURES DEPARTURES DEPARTURES DEPARTURES DEPARTURES NEW 1 2 3 ARRIVALS ARRIVALS ARRIVALS ARRIVALS ARRIVALS ARRIVALS 06:20 07:00 07:30 08:00 08:08 08:40 09:08 09:52 10:00 10:46 11:16 12:12 DEPARTURES DEPARTURES 4 5 6 ARRIVALS ARRIVALS ARRIVALS ARRIVALS DEPARTURES DEPARTURES DEPARTURES DEPARTURES NEW ARRIVALS ARRIVALS 13:54 14:48 15:16 16:02 16:38 17:46 18:16 19:02 19:38 20:22 20:50 21:38
Attractive location for Multinational companies Multinational companies in Panama Over 80 multinational companies have chosen Panama as base for their operations, taking advantage of its favorable legislation, strategic location and connectivity. Source: Ministry of Commerce and Industries September 2012
World-class on-time performance High performance even with rapid growth On-time performance Index* 95% 90% 87.6% 87.7% 90.7% 90.5% 89.2% 85% 80% 75% 70% 2008 2009 2010 2011 2012 *On-time performance: defined as an arrival within 14 minutes of scheduled arrival at gate.
Proud member of Star Alliance Our entry into Star Alliance enhances the travel experience with the highest standards of attention and quality: Leading global airline network Faster connections Ability to earn miles on all member airlines Access to more than 1,000 VIP Lounges and over 1,330 destinations in 194 countries
Agenda 1. Performance of recent years 2. Future plans
Latam Growth Forecasts Passenger traffic growth of ~7% per year for the next 20 years Among fastest growing regions worldwide Market growth and competitive advantages are allowing Copa to expand at an above average rate Source: Boeing Forecast
Copa plans to continue expanding its services throughout the Americas 7x day 6x day 5x day 4x day 3x day 2x day Daily Non Daily Bogotá La Habana Cancún Cali Buenos Aires Barranquilla Aruba Bucaramanga San José Miami Guatemala México Caracas Nueva York Asuncion Cúcuta Lima Orlando Cartagena Rio de Janeiro Belo Horizonte Curaçao Medellín Santiago (CL) Guayaquil San Salvador Boston Guadalajara Santo Domingo Sao Paulo Los Ángeles Washington D.C. Brasilia Iquitos Managua Chicago Kingston Punta Cana Cordoba Liberia Quito Las Vegas Montego Bay San Juan Manaos Monterrey Maracaibo Montevideo Pereira Porto Alegre Puerto España Nassau Port au Prince Recife San Andres St. Marteen New Destinations for 2011 New Destinations for 2012 New Destinations for 2013 San Pedro Sula Santiago de los Caballeros Santa Cruz Tegucigalpa Valencia Toronto Source: OAG Max January 2013
Over 30 cities that are underserved * Operations started in 2011 *** Operations will start in July 2013 ** Operations started in July 2012
Boston: New destination as of July 2013 Boston - an important academic, economic and cultural destination - will be the eighth U.S. city served by Copa with a direct flight from the Hub of the Americas.
Order Book Supports Growth Strategy 49 aircraft to fund future growth 33 firm, 16 options Deliveries between 2013 2018 First airline in region with Sky Interior Additional 2% fuel burn improvement
Growth plan incorporates flexible and modern fleet Type of Aircraft 2011 2012 2013 2014 2015 Capacity: 94 pax Range: 2,200nm 26 26 26 26 26 EMBRAER-190 BOEING 737-700 Capacity: 124 pax Range: 3,000nm 20 18 18 18 18 BOEING 737-800 Capacity: 160 pax Range: 3,000nm 27 39 46 50 58 *Fleet s average age = 5.23 years 73 83 90 94 102 * Source: Internal information, February, 2013
Key figures for 2012 Number of destinations: 64 Number of aircfraft: 83 Passengers per year: Total Sales: 10 millions USD 2.3 billions Number of employees: 7,842 Source: Internal data, December 2012
2013 Outlook Healthy economic conditions Strong capacity growth Strong demand environment Competitive unit costs Another year of strong financial results
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