Economic sustainability

SEA Group strategy is pursued through a partition of activities in business units, each characterized by specific expertise and operational processes to maximize the Group operational efficiency.

Air transport offer

The Milan metropolitan area ranks ninth in Europe by total air transport offerings at 40.2 million ASKs (available seat kilometers) supplied each year.

ASKs correspond to the total seats available on each flight, multiplied by the number of kilometers flown: a measure of an airport's capacity in terms of passenger transport supply. The overall airport system - inclusive of Malpensa, Linate and Orio al Serio – offered 27,4 million seats.

Malpensa is one of the few European airports with a high level of non-EU ASKs that is not also a hub. This may also be explained by the fact that Malpensa offers a high level of medium/long-haul destinations, despite lacking a feeder flight network, instead relying primarily on point-of-origin demand for air transport to international destinations.

Direct competition

Analyzing the level of dependence of European airports on particular airlines (under the Herfindahl-Hirschman - HHI concentration index, which reaches a value of 11 thousand where the offer of an airport is completely handled by a single airline), it emerged that Malpensa airport is the European medium-large airport (second overall after Venice) with the lowest level of dependence on a single airline. This sets it apart from other Continental airports such as Amsterdam, Frankfurt, Zurich, Paris or Vienna, where the principal airline accounts for around 50% of ASKs.

Linate airport shows a higher traffic concentration level than Malpensa owing to the significant presence of Alitalia, which is responsible for approximately 53% of the total ASKs. In Italy, the airport where the largest share of ASKs held by a single carrier is Bergamo: approximately 80% of supply is attributable to Ryanair. Direct competition is measured also by another indicator called the entropy (H) index, which calculates (also in terms of ASK or seats) if the share of the airport offer is equally divided between all airlines present. Therefore, low index values indicate situations in which the traffic offer of a particular airport is highly concentrated. Also according to this index, Malpensa airport was the absolute leader in Europe with regard to the lowest dependence on an individual airline.

Indirect competition

The level of indirect competition refers to each route offered by a specific airport for which alternative routes are offered by other airports close to that considered, for neighboring destinations or on similar routes. The “proximity” concept relating to departing airports and destination airports concerns those located within 110 km. The exposure of an airport to indirect competition is one of the elements taken into account when considering whether an airport is a natural monopoly.

Within Europe, the London area contains a high number of active airports, therefore in indirect competition. Nearly all departing European routes from Gatwick or Heathrow have indirect alternatives. Indirect competition is significant also in the Lombardy region close to Milan. From Malpensa, over 93% of European destination routes are open to competition from other airports in the area such as Linate and Orio al Serio. Malpensa airport placed third, after London Heathrow and Gatwick airports, in terms of intensity of indirect competition. The ratio between the alternative offer volume of the competing regional airports (including Linate) and the offer of the airport concerning the routes subject to competition is greater than one.