Aer Lingus 2013 Annual Report Download - page 18

16
In addition to the above movements, we also dry leased an A320 aircraft on a short term basis from 31 May 2013 to 1 October 2013 to
provide operational cover for our Summer 2013 scheduled services.
Aer Lingus and Airbus are discussing revised delivery dates for the nine A350XWB aircraft that we have on order as the original delivery
dates cannot be achieved. We still expect to take nine aircraft which will be a mixture of A350-900 and A350-900R variants. Deliveries are
likely to be over the period 2018 to 2020 and will replace existing A330 aircraft in our fleet. Further details will be announced once final
agreements are reached.
Separately, we will, over time, start to evaluate our short haul fleet rollover options but this is not urgent given the relatively young age of
our short haul fleet.
2014 priority: Our priority in 2014 will be to conclude the A350 negotiations and to determine how we manage the rollover of our existing
A330 long haul fleet over time. In 2014, we will also take delivery of three Boeing 757 aircraft to facilitate additional long haul flying.
Also, at present, we do not have an order for short haul aircraft. As an alternative to such an order, we are currently engaged in an internal
analysis to determine whether an investment to increase the ownership proportion of our currently leased aircraft could drive higher returns
from our asset base than is currently the case.
10. Drive further improvements in customer service and satisfaction levels
2013 priority: Continue productivity, process improvement and innovation in our operations for the mutual benefit of our customers and our
operating result.
2013 business outcome and relevant key performance indicators: In 2013, we drove improvements in our business operations and also
introduced a number of new initiatives aimed at ensuring our customers have choice, flexibility and most importantly a satisfactory travel
experience.
A key performance measure we use to assess our operations is On-Time Performance (“OTP”). In 2013, we achieved an OTP of 83%. This
was lower than the 88% reported for 2012. Our internal analysis indicates that approximately half of all delays are attributable to factors that
are outside of our control, such as weather events and congestion at the main, central airports we serve. In 2013, we experienced a number
of weather related events that negatively impacted OTP, particularly towards the end of the year. In all such cases, we strived to ensure
passenger disruption was minimised and any such impacted passengers were appropriately accommodated. Our priority for 2014 is to get
overall OTP at least back to 2012 levels.
According to UK Civil Aviation Authority (‘CAA’) punctuality statistics prepared for 10 UK airports (including London Heathrow,
Birmingham and London Gatwick), Aer Lingus ranks ahead of other carriers such as Ryanair and British Airways in respect of OTP on
services to/from UK airports.
UK CAA Punctuality Statistics (Nov 2012 to Oct 2013)
Aer Lingus
Ryanair
British Airways
Departures < 15 minutes
88%
86%
75%
Arrivals < 15 minutes
83%
82%
70%
During 2013, ground operations related to the Aer Lingus Regional service moved from Terminal 1 to Terminal 2 in Dublin Airport which
represented a significant improvement for passengers on direct Regional services and also those transferring onto transatlantic and other
flights within the Aer Lingus network.
In April 2013, we launched a new service that allows passengers travelling on early morning flights to check in luggage the night before.
This is particularly convenient for families or large groups. The service provides us with productivity benefits as our late evening check-in
shifts are effectively utilised in reducing demand on the extremely busy early morning check in facilities.
In 2013, we also significantly increased the role that social media plays in terms of interaction with our customers. Our social media
presence is growing significantly and increasing numbers of our passengers are now choosing to contact Aer Lingus via our social digital
channels. This is proving to be a convenient and efficient way for us to speak to our customers and to help them in their travel experience. It
is also providing us with an effective marketing tool to communicate with repeat and frequent customers on sales, special offers etc.
2014 priority: We will continue in 2014 to achieve further improvements in our key customer service metrics. This will require us to address
the challenges presented by those aspects of on-time performance and customer service features which are not always within our control but
nonetheless for which our customers hold us responsible. We will continue to invest in the quality of our service offering as part of CORE.
We intend to launch a re-designed website and a renewed mobile app in Q3 2014, provide an enhanced passenger experience with our move
to London Heathrow Terminal 2 in July 2014 and upgrade our existing long haul business class seats to offer fully “lie flat” capability by Q1
2015.
11. Address pension funding issues
2013 priority: Definitively address pension funding issues relating the IASS and the Pilots’ Scheme so that solutions may be agreed and
implemented that balance the interests of all parties, including shareholders, employees and customers.
2013 business outcome and key performance indicators: Regrettably, we did not achieve as much progress as we had hoped at the start of
2013.
In late 2012, Aer Lingus Limited engaged with parties involved in the IASS, alongside representatives of Dublin Airport Authority plc
(“DAA”), the Irish Business and Employers Confederation (“IBEC”), the Irish Congress of Trade Unions (“ICTU”) and the Labour Court
with a view to resolving funding issues in the IASS.