Page 14 - ENAV eng_Relazione_Finanziaria_Annuale_2014

12 ENAV – 2014 Financial Statements

The economic trend in Italy may be expressed in terms of GDP for 2014,
which fell 0.4% compared to the previous year (IMF, January 2015).

Moreover, growth estimates for GDP for 2014 fell from +0.7/+0.6%
in January to -0.5/-0.4% in December, while 2015 forecasts fell from
+1.4/+1.2% in January to +0.5/+0.2% in December.

This scenario also affected the domestic air transport market, which had
lower than expected growth in traffic volumes last year.

Other and equally as critical factors affecting the Italian air transport
industry were the reorganization of Alitalia and the socio-political crisis in
North Africa, which resulted in the closing of Libyan air space in the second
half of 2014.

This event had a significant impact on overflight traffic, a component of
en-route traffic that has always been highly profitable for the Company
in terms of growth in service units. Due to this no-fly zone, a large portion
of traffic flying on the Europe-Africa route had to change itinerary and
consequently flew on routes outside Italian air space.

In fact, although overflight data was generally positive in the first half of the
year, there was a sudden drop in terms of service units in the second half,
attributable to the Libyan situation.

The situation at major Italian airports was just the opposite: in 2014 there
were positive results in terms of traffic attributable mainly to substantial
growth in volumes of low-cost traffic.

Thanks to growth in international traffic (+3.1% SU), the Company
increased total volumes of en-route traffic (+2.4% SU), with positive
effects on revenues.

Considering the restrictions imposed by the European regulatory package,
and with the aim of giving continuity to the policies and management
decisions adopted to date, ENAV achieved positive performance in 2014,
in line with strategic objectives and with the targets set in the National
Performance Plan, despite a complex scenario. Moreover, in 2014, thanks
to excellent results in on-time flights (for the third consecutive year), the
Company received the 8 million euro capacity bonus awarded under the
Community performance scheme.

From a regulatory point of view, 2014 may be described as a watershed year:
on the one hand, the first reference period (2012-2014), which introduced
a new Community regulatory system and thus a new management logic
for Community air service providers via application of a new mechanism
for measuring performance and simultaneous cancellation of the system
for full recovery of costs and traffic, has concluded; on the other, last year
was the starting point for ENAV’s new operating and economic plan, which
will be a fundamental part of the new Performance Plan for the period
2015-2019.