Aer Lingus 2014 Annual Report Download - page 14

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12
Preparing for the future
In 2014 we achieved significant progress in terms of our strategic objectives. However, we acknowledge that there are both opportunities to
be pursued as well as challenges to be addressed in the year ahead.
1
Further secure short haul profitability
Maximise contribution earned in the seasonal peak
Capture opportunities resulting from our network
quality and leading position in primary airports
2
Pursue disciplined long haul growth whilst maintaining
stable load factors and yield
Increase long haul capacity deployment - demand led
Increase market share
3
Grow retail revenue steams
Achieve retail spend per passenger of €23.00 over
the medium term
Investments in technology to provide new retail
offerings
4
Drive additional unit cost reductions
Reduce cost per ASK (CASK) ex fuel
Target €40.0 million cost savings (CORE)
5
Deliver on customer promise
Further improve net promoter score and on-time
departures/ arrivals
Improve pre-flight, in-flight and post-flight
experience
6
Achieve operational and organisational best practice
Improve operational processes (CORE)
Establish strategic business units
Deploy our assets in a disciplined and efficient
manner
Address our seasonality profile
Improve employee relationship scores
Optimise our organisational structure
Short haul performance
2014
Growth vs.
prior year
2013
Growth vs.
prior year
2012
Growth vs.
prior year
Short haul fare revenue
(€ million)
791.0
0.3%
789.0
(3.3%)
816.30
4.5%
Revenue per seat (€)
69.60
2.5%
67.88
(1.2%)
68.67
3.9%
Available seat kilometres
(millions)
11,773
(1.5%)
11,954
(4.1%)
12,464
(0.4%)
Load factor
75.5%
(0.1)
ppts
75.6%
0.2 ppts
75.4%
0.8 ppts
Key 2014 achievements included:
Short haul revenue performance: We increased revenue per seat to €69.60 despite a 1.5% decline in short haul capacity as a result of
deliberate tactical short haul capacity reduction decisions in Q4 2014 in order to manage our operating margin into the off-peak winter
season. The response of load factor to capacity management is a key performance indicator in assessing network performance.
London Heathrow: In July 2014, we transferred our London Heathrow operations to that airport’s new Terminal 2 facility where Aer
Lingus is one of the largest operators. Aer Lingus shares this terminal with 23 carriers from the Star Alliance. This proximity will
provide opportunities to provide short haul feed services at both this terminal and other terminals in Heathrow. Connections will be
Objective 1: Further secure short haul profitability
Our medium term objectives