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Page 1 of 11
25 March 2020
No. 1117
DEV
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AIRPORT DEVELOPMENT International News
Each issue of Airport Development focuses on a different region of the world, with global news at the end of this section. A list of
past focus regions published in recent years can be downloaded from the Bonus section in the subscriber pages of our website.
Focus Region: North Atlantic
GREENLAND (Denmark)
The Finance Committee of the Danish parliament has approved a deal under which the
Danish State will buy shares for DKK 700 million in Kalaallit Airports International A/S, the
local airport operator, for the construction of two new international airports in Nuuk and
Ilulissat, and a regional airport in Qaqortoq on the southern tip of the island. The existing
runways in the west of Greenland will be extended from 950 m to 2,220 m in Nuuk and from 845 m to
2,200 m in Ilulissat. The extension means that the airports will be able to take larger aircraft such as the
Airbus A330 with up to 300 passengers. At all three airports, it will be necessary to blast away rocks to
make space for the construction work. The rubble will be re-used as filler and surfacing material for the
runways. This will avoid the need to remove the heavy rocks, which are perfect building material that can
withstand the large temperature fluctuations in Greenland.
This new participation of the Danish State amounts to a 33.3% ownership. The remaining 66.6% of the
shares will be owned by Kalaallit Airports Holding A/S (KAH), which will contribute DKK 1.4 billion to the
project. KAH is wholly-owned by Greenland’s self-governing body. -- At EUR 572 million, these projects
will be the largest infrastructure investment in Greenland’s history.
The move can be seen as one of the Government measures being taken to minimize foreign – and
especially Chinese – investment in essential infrastructure. China has been trying to get footholds in
resource-rich Greenland under its ‘Polar Silk Road’ policy. The local government also hopes that the new
international airports will underpin business expansion and support tourism. The new runways at Nuuk
and Ilulissat will be long enough for the trans-Atlantic flights that at present use Kangerlussuaq or
Narsarsuaq, where the runways, built of thawing permafrost soil, are becoming unsuitable for commercial
operations. Earlier in 2020, the Munck Group was selected as constructor following a competitive quote
competition. Its agreement counterpart is the Kalaallit Airports development company. The new runways
are scheduled to become operative in 2022/23. Construction of the terminal buildings constitutes a
separate bidding competition.
Qaqortoq will feature a runway of 1,500 m. In early February 2020, five contractors were
shortlisted by Kalaallit Airports Domestic A/S as bidders for the construction of the Qaqortoq runway:
Pennecon Dexter Joint Venture (Canada); MT Højgaard A/S (Denmark); J & K Petersen Contractors P/F
(Faroe Islands); Aarsleff-Ístak JV (Denmark/Iceland); and Munck Gruppen A/S (Denmark). Construction
of the new 1,500-m runway is expected to take three years; hence it is expected that it will be completed
in late 2023. #1117.1
Denmark’s Ministry of Defence has struck an agreement with Greenland allowing its Air
Force to use the island’s Kangerlussuaq Airport beyond 2023 as Greenland is constructing two
new commercial airports with financial help from Denmark. The development had raised questions over
the Danish military’s continued access to Kangerlussuaq after 2023, when the other two airfields are due
to open. Defence Minister Trine Bramsen said access to the old airport was crucial to the Air Force’s
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ability to fulfil its missions in the Arctic region. -- Greenland is an autonomous territory within the
Kingdom of Denmark. #1117.2
ICELAND
The country’s airport operator and air navigation services provider Isavia has appointed the
international construction and consultancy company Mace as Programme Manager for the
Keflavik International Airport Major Development Plan (MDP). Mace’s team of aviation specialists
will deliver the MDP in multiple phases across a decade. The MDP is a multi-year terminal area
development programme designed to provide additional passenger processing and aircraft parking
capacity, along with passenger convenience and operational enhancements. “Following an extensive and
advanced procurement process, we are certain that we have secured a great delivery partner for the
upcoming development of Keflavik International Airport,” says Guðmundur Daði Rúnarsson, Technical and
Infrastructure Director for Keflavik Airport at Isavia. “After working on major airport-related projects all
over the world, Mace brings experience and professionalism which is vital for a successful delivery of
complex airport projects. We look forward for a fruitful partnership for many years to come.”
The Mace team will work with Icelandic engineering specialists Verkis to oversee and deliver
the MDP. This partnership will see Mace’s international consultancy experience boosted by Verkis’ local
knowledge and technical capabilities.
Iceland’s largest airport handled nearly 10 million passengers in 2020. The current MDP
under the Keflavik Airport Masterplan is based on the provision of a new 85,000-m² East
Pier, a new North Terminal, and other associated works, all of which will increase the
airport’s capacity to over 14.5 million passengers. A tender for the design of the East Pier and
North Building will be issued in 2020, pending feasibility of financing and construction of the East Pier.
This will increase gate capacity from 13 to 30 gates, and work could start in 2022-2023. The MDP is a
major component of Isavia’s plans to see Keflavik Airport become the major North Atlantic hub for air
traffic, boosting the airport’s value as an engine for economic growth in Iceland. In addition to enabling
significant operational improvements, the MDP is intended to realise a host of social and environmental
benefits, including the creation of jobs for local people and a positive move towards becoming one of the
world’s most sustainable airports.
“I am delighted with our appointment to lead on the programme management of Keflavik Airport’s Major
Development Plan; it’s a landmark win that serves as evidence of our ever-growing aviation offering,”
says Jason Millett, Chief Operating Officer for Consultancy at Mace. “It allows us to be part of a truly
transformative programme, where we can use our expertise from around the world to work with Isavia
and create an airport that supports growth and opportunity across Iceland.” #1117.3
The U.S. Air Force intends to spend ISK 7 billion (USD 56.2 million) on construction projects at
Keflavík Airport. The purpose behind this construction is, according to the U.S. military, to
ensure that two squadrons of 18 to 24 fighter jets each could be accommodated at the
airport 24 hours a day. According to the U.S. Air Force’s 2020 budget, roughly ISK 2.2 billion (USD 18
million) will go toward the development of a special area for the handling of dangerous cargo, such as
weaponry; ISK 871.2 million (USD 7 million) will go towards the construction of a portable military
facility; and ISK 3.98 billion (USD 32 million) will go toward building a larger apron for U.S. military use.
At the same time that the U.S. government will be embarking on its own defence construction projects at
the airport, the Icelandic government will also be reinforcing NATO facilities at Keflavík. Foreign Minister
Guðlaugur Þór Þórðarson says that these so-called ‘defence structures’ are vital to Iceland’s security,
particularly flight security, making investment in NATO maintenance a priority. #1117.4
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IRELAND
Dublin Airport welcomed a record total of 32.9 million passengers (+4%) in 2019. About 30.7
million people started and ended their journey at DUB, while almost 2.2 million passengers used the
airport as a transit hub. Short-haul traffic increased by 5% to 27.7 million, while long-haul passenger
numbers increased by 4% to almost 5.2 million. The transatlantic and European markets were the best
performing sectors during the year. Continental European traffic, which is Dublin Airport’s largest market
segment, increased by 6% in 2019, as 17.3 million passengers took flights to and from continental
European destinations. U.K. traffic increased by 1% to almost 10.2 million passengers. Transatlantic
traffic increased by 6%, as 4.2 million passengers took flights to and from North American destinations,
while traffic to other international destinations, which includes the Middle East, Africa and Asia, was flat.
“The connectivity provided by Dublin Airport is essential, as the Irish economy is one of the
most open in the world,” according to the airport’s Managing Director, Vincent Harrison. “Our economy
depends on trade, exports, inbound tourism and foreign direct investment (FDI) and Dublin Airport is
delighted to be able to facilitate these key sectors.” -- There were 25 new routes at Dublin Airport in 2019
– including new long-haul services to Calgary, Dallas/Fort-Worth and Minneapolis/St Paul and new short-
haul services to Bodrum, Kyiv, Lourdes, and Thessaloniki. There were capacity increases on 28 existing
routes, as airlines added flights to their schedules or operated services with larger aircraft. In 2020, the
airport will welcome 12 new routes. New long-haul services for summer 2020 include Shanghai via
Helsinki with Juneyao Air and San Francisco with United Airlines. New short-haul destinations include
Cairo with EgyptAir, Marseille with Ryanair, Rhodes with Aer Lingus, and Tel Aviv with El Al. -- Dublin
Airport has flights to more than 190 destinations in 42 countries operated by almost 50 airlines. It is the
tenth largest airport in the European Union. #1117.5
Dublin Airport is celebrating its eightieth birthday in 2020 and more than 580 million
passengers have been welcomed at the airport since its official opening on 1 January 1940.
DUB is now the fifth largest airport in Europe for transatlantic connectivity and this growth has been
underpinned by the increasing numbers of connecting passengers who are choosing to fly through
Dublin. “Dublin Airport had its ninth consecutive year of passenger growth in 2019 and this has had a
hugely positive impact on the entire Irish economy,” said Dublin Airport Managing Director Vincent
Harrison. A new study of the airport’s overall economic impact undertaken by economic
consultants InterVISTAS has found that the airport supports or facilitates almost 130,000
jobs in the Republic of Ireland and contributes a total of EUR 9.8 billion in Gross Value Added
(GVA) to the Irish economy. The study also found that Dublin Airport spends an average of EUR 218
million per year with more than 1,000 separate Irish suppliers. That spending level purely relates to
procurement by DAA directly and does not take account of spending by other airport-based companies.
The InterVISTAS study used a combination of direct data from businesses based in and around the Dublin
Airport campus and applied an indirect economic multiplier that is based on a model of the Irish economy
maintained by the Central Statistics Office. The wider economic benefits of the airport were estimated by
using methodologies that matched a recent study on the economic impact of 40 European airports that
was undertaken by InterVISTAS on behalf of ACI Europe. #1117.6
The Minister for Transport, Tourism and Sport, Shane Ross, has announced the payment of
EUR 3.7 million in grant aid towards the operating costs of the regional airports in Donegal,
Ireland West Airport Knock (IWAK), and Kerry under the Government-funded Regional
Airports Programme which supports necessary safety and security investments and activities and
recognizes the important role regional airports have in supporting the tourism and business sectors in
their regions due to the level of international connectivity that they facilitate. Air connectivity is the
bedrock of the foreign tourism sector which makes a vital contribution to the economy and to
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employment all around the country. Tourism creates jobs and generates earnings in communities
throughout Ireland, particularly in rural areas. Minister Ross said: "The importance of regional airports in
facilitating international connections is reflected in Project Ireland 2040 as well as related Regional
Economic and Spatial Strategies and our National Aviation Policy. The Government's commitment to
regional airports, as part of these long-term planning and investment strategies, is evident in the capital
provision of EUR 72 million for the Regional Airports Programme under the National Development Plan to
2027."
The latest announcement is in addition to EUR 10.4 million in capital grants already allocated to the
Donegal, Ireland West, and Kerry airports. This grant aid supported the significant runway overlay project
that was delivered at Knock Airport, an extension to the apron at Donegal Airport, and the upgrading of
hold baggage screening equipment at Kerry Airport. In line with a Government Decision in June 2019 to
provide support to Waterford Airport to maintain the Coast Guard's SAR services and to support general
aviation at the airport while their runway expansion project is on-going, EUR 375,000 was provided to the
airport already. #1117.7
Over 800,000 passengers used Ireland West Airport at Knock (NOC) in 2019 making it a
record year for the airport which officially opened in 1986. Passenger numbers increased by 5%
on the previous year, 2018. It marked the fourth consecutive year of passenger growth at the award-
winning airport. The CEO of Ireland West Airport, Joe Gilmore, said that 2019 was a positive year adding
that a number of significant developments have been made at the Mayo-based airport. In September
2019, the Mayo County Council approved proposals for a new Strategic Development Zone
(SDZ) at the airport. When fully completed, the proposed development will provide over 95,000 m² of
commercial, business and enterprise space, along with additional facilities for aviation development,
conferences and hotel accommodation. The SDZ has the potential to accommodate over 4,000 workers.
The airport welcomes this positive development as the only airport in the country with this designation
and the planning certainty it provides for potential developments that may take place at the airport in the
future.
Mr Gilmore said that the zoning in parallel with the Atlantic Economic Corridor (AEC) should reap positive
dividends for the airport. The AEC will drive significant regional development, complementing and
balancing Ireland’s thriving east coast. As the airport is located around halfway on the corridor, this
ensures that it will reap the benefits of improved road networks and infrastructural developments.
Ireland West Airport has a catchment area of around one million people. The catchment area
spans from Donegal, Leitrim to Galway and across to Longford. The area includes 10 to 11 counties. Mr
Gilmore said that Knock is the closest airport to Center Parcs which boasts 100 activities and 400 acres of
forest to explore. A Red C survey shows that passengers who fly through Ireland West Airport spend six
nights in neighbouring Roscommon. On average, departing passengers from Ireland West Airport say
they spent five nights in Ireland. The majority of visitors come from the U.K. which continues to be the
‘core market’, and despite the economic concerns in relation to Brexit - the airport saw an increase of 2%
in U.K. traffic. “The big growth came from our mainland European services. We saw a 20% increase in
our mainland European routes. We fly to Italy, Spain, Portugal, and Germany.” -- The airport has 23
international destinations and was served by three airlines, Aer Lingus, Flybe (no longer flying), and
Ryanair. A breakdown of the airport’s 2018 revenues of EUR 14.57 million show that EUR 7.6 million was
generated from aeronautical revenues; EUR 6.8 million from commercial revenues; and EUR 50,000 from
‘other sales’.
In 2019, a number of major capital projects were completed at Ireland West Airport - the
largest being an overlay of the main 2,500-m runway, originating from 1985. In line with this
work, the instrument landing and lighting systems were also upgraded, as were the taxiways. The total
cost of that project was EUR 11.3 million. In addition to that, the airport spent another EUR 3.5 million on
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other capital projects. The main part of these projects being a major security upgrade on hold baggage
screening which cost close to EUR 2 million. All airports in Ireland must undertake the same works under
departmental and European legislation. The total outlay on capital projects was about EUR 15 million,
funded through grant aid from the Government of 75% and the remainder was funded by the airport.
#1117.8
Shannon Airport is facing turbulent times as passenger numbers and profits drop
dramatically. Until 2018, Shannon Airport was thriving - but recent route cancellations have
meant business has taken a nosedive. Shannon Group made a profit (before exceptional items) of
EUR 20 million in 2018, up from EUR 9.8 million in 2017. Revenues across all of its business areas grew.
Shannon Airport only handled 1.86 million passengers in 2018, compared with 3.3 million in 2005. It is
expected to see passenger numbers fall for 2019. The group took a EUR 5.8 million charge in 2018 to
fund a voluntary redundancy programme, which should help its cost base in the future. Almost all of that
was borne by the Group’s airport subsidiary. Stakeholders in the mid-West hired Copenhagen Economics,
a Danish consultancy firm, to examine how aviation policy could be changed to bring greater economic
benefits to the region and spread some of the growth around the country. Its findings were interesting
when it assessed how much new airline routes from Shannon to various locations could boost regional
GDP. The report concluded that "overlapping catchment areas demonstrate that Shannon Airport faces
intense competition from Dublin Airport and to a lesser extent from the regional airports."
Increased competition "will have severe consequences for economic activity and jobs in areas outside the
Greater Dublin area," the report concluded. Shannon's argument is simple. At a time when Dublin is
congested and Shannon has a capacity for 4.3 million passengers, while carrying less than 1.8 million,
why not examine ways to incentivize or encourage some of that excess business and investment to the
mid-West? The report said that Dublin's dominance in the aviation sector is quite dramatic. Dublin
accounted for 86% of all traffic in 2018, up from 70% a decade before. The Shannon-siders
and Copenhagen Economics say it isn't about sacrificing Dublin Airport's growth plans for the sake of
regional hubs. Instead, they suggested that regional airports should be developed to handle excess
capacity from the capital, in order to entice FDI in the West and mid-West, but if Shannon wanted to
become a hub, it would need greater connectivity and routes to continental Europe. Meanwhile, Shannon
has to keep investing in its infrastructure, from runway upgrades to baggage handling and security. Part
of the problem here is that Shannon finally got its independence just at a time of economic change.
Shannon Airport should in theory have the capability to offer itself very successfully as a transatlantic
hub. It has U.S. immigration pre-clearance - the same as Dublin. If passengers are stopping off
somewhere just to transfer, in theory they shouldn't care where that is. It doesn't have to be a capital
city, because chances are you won't be going to see it. Shannon has a good, solid North American
business but it lacks direct connectivity to continental Europe. Only 20% of Shannon's total connectivity is
through direct flights. It relies massively on flights to Heathrow and on from there in its connectivity mix.
It has the lowest direct connectivity share of any of the five airports in the country. #1117.9
DAA Plc (ex-Dublin Airport Authority) expects to retain control of Cork Airport and plans to
invest EUR 40 million in its development over the next four to five years. The Government is
due to review Cork's ownership, as previously announced in its national aviation plan four years ago, but
the DAA said it remains committed. "We think we have been a really good custodian of the business in
Cork. We would like Cork Airport to remain part of the DAA family. It's a key part of the business," said
DAA Chief Executive Dalton Philips. He said that spinning out Cork from DAA control would not benefit
the airport, suggesting Ireland does not have a great track record of independently-owned airports. In its
national aviation policy document in 2015, the Government said ownership of the State-run airports
would be reviewed in 2019 and at five-year intervals thereafter.
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DAA is an airport operator and retail group with businesses in 13 countries, owned by the Irish State and
headquartered at Dublin Airport. DAA owns and manages the Dublin and Cork airports and has
international airport operations and investments in Cyprus, Germany, and Saudi Arabia. ARI, its travel
retail subsidiary, has operations in twelve countries, with outlets in Europe, North America, the Middle
East, India, and Asia-Pacific, and it also holds the Group’s 20% stake in Düsseldorf Airport. DAA also
provide aviation advisory services through the DAA International consultancy business. The Group’s core
purpose is to connect Ireland with the world and its vision is to be an airport industry leader. The Group
employs 3,500 people at its Irish airports and has a further 800 people working for its international
businesses. -- Dublin Airport Central is Ireland’s next-generation business destination located directly
opposite Terminal 2. #1117.10
GREAT BRITAIN
The U.K. Court of Appeal has blocked the British government’s plans for a third runway at
Heathrow Airport. The judges said that the Johnson Government failed to consider the
country’s commitments to the Paris Climate Agreement. The development shows the power of
using the courts to hold governments to their international climate change commitments. Heathrow said
it would appeal the verdict. Signatories to the Paris climate accord have agreed to reduce carbon output
and reduce global warming by 2° Celsius above pre-industrial levels by the end of the century. The ruling
said: “We have not found that a national policy statement supporting this project is necessarily
incompatible with the United Kingdom’s commitment to reducing carbon emissions and mitigating climate
change under the Paris Agreement, or with any other policy the Government may adopt or international
obligation it may undertake.”
London Mayor Sadiq Khan was in favour of the action and said: “A new runway at Heathrow would have
serious consequences on climate change, on air quality, on noise pollution, on road and rail networks,
and on the quality of life in our city.” Climate activists are thrilled and hope this sets a new precedent for
taking climate change into account for infrastructure development, keeping climate change at the heart of
all planning decisions. It also shows that more and more courts are forcing governments to consider their
obligations to tackle climate change. #1117.11
The International Air Transport Association (IATA) reacted to the Court of Appeal’s decision
to block Heathrow expansion on the grounds of incompatibility with the Paris Climate
Agreement. “The Court’s decision to throw further uncertainty on the development of vital air capacity
for the U.K. threatens tremendous damage to the U.K. economy. Our aim should be to eliminate carbon,
not travel, and the U.K. aviation industry has already committed to a net-zero target for aviation carbon
emissions. The Davies Commission’s exhaustive report laid out the arguments on increased airport
capacity clearly and further endless debate into the merits of growth risks the U.K. planning process
becoming a laughingstock. Heathrow enlargement cannot come at any price. Costs and landing charges
must be controlled if the full economic benefits of expansion are to be fulfilled. But it’s clear that an
affordable expanded Heathrow will be a huge prize for the U.K. The Government must show leadership,
back expansion, and ensure that the U.K. gets the sustainable airport capacity it needs to retain its place
as a global trading nation,” said Alexandre de Juniac, IATA Director General & CEO. #1117.12
London-Heathrow Airport’s passenger numbers reached 80.9 million in 2019, marking the
ninth consecutive year of growth. However, cargo service dropped by 6.6% compared with 2018.
Heathrow stayed in the ‘Top 10’ busiest airports and it attributes this to “larger and fuller aircraft.”
Heathrow benefited from the domestic routes surge, such as Flybe (no longer flying) domestic routes to
Newquay, Guernsey and British Airways’ Scottish route. As a result of the new services to Pittsburgh, Las
Vegas and Salt Lake City, the passenger volume to North America increased by 7.1%.
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2019 was an important year for the airport as Heathrow unveiled its masterplan in June and confirmed
the construction of the third runway. Earlier, the Civil Aviation Authority (CAA) turned down Heathrow’s
“aggressive schedule” and believed the airport’s third runway need “maximum activity” to be
accomplished. The new runway – if built - is expected to be completed between early 2028 and late
2029, a 12-month delay from the initial plan. CAA believed the delay may diminish the cost in the early
phases of development and rule out a “higher airfares, reduced choice and lower service quality.”
Heathrow CEO John Holland-Kaye said: “By the end of this new decade of delivery, a third runway will
have given Britain more hub capacity than our rivals in France or Germany, making this country a winner
and the best-connected country in the world. Regular, direct flights to all the major cities in the U.S.,
India and China – the greatest economies of the 21st Century.” #1117.13
6 March 2020 saw delivery of a major milestone for the Manchester Airport Transformation
Programme with Laing O’Rourke’s completion of the main build phase of the Terminal 2
Extension. It is a hugely significant achievement, coming a little over two-and-a-half years since
Manchester Airports Group signed the contract with Laing O’Rourke, and confirms the project remains
fully on course to ‘Go-Live’ in July 2020. “One year on from the completion of Pier One and the West
Multi-Storey Carpark, today’s on time milestone achievement represents the culmination of a huge
collaborative effort by MAG and our team of experienced delivery partners,” said Rob Stewart, MAG
Programme Delivery Director. “Everyone involved should feel extremely proud and the wider community
excited about this fabulous facility coming online in July.” Now the terminal extension has been handed
over, it will go through a range of trials and fit outs before opening to passengers in July. #1117.14
Approval for expansion of Stansted Airport should be granted according to Uttlesford District
Council’s experts, despite political efforts to block the development. After a year’s delay and
despite more than GBP 90,000 spent on independent legal advice, a report to a special planning meeting
on 24 January 2020 recommended councillors to approve the scheme to increase passenger numbers
from the current maximum of 35 million to 43 million a year. Annual traffic is currently around 28 million,
and the airport’s operator Manchester Airports Group (MAG) has committed to achieving the new capacity
without increasing the existing 274,000-flights-a-year limit and with a 15% smaller noise footprint. The
operator has also agreed to a GBP 35 million investment plan as part of its contentious Section 106
agreement with the Council. The planning application was first approved in November 2018, but when
the ‘Residents for Uttlesford’ party seized control of the Council in May 2019’s local elections, the scheme
was left in limbo, pending a planning committee review of mitigation measures and climate change
concerns.
-- There is no denying that the airport delivers substantial benefits to the Uttlesford, Essex and East of
England economies. This comes in many forms, but most notably from the 12,000 people employed
across the 200-plus employers at the airport, including over 2,000 Uttlesford residents. Growth to 43
million passengers a year will generate 5,000 more jobs at the airport and a further GBP 1 billion of
additional economic and social benefit. #1117.15
The departure lounge extension project is Birmingham Airport’s biggest terminal investment
in ten years and will increase the available space by 45%. The beginning of construction for the
GBP 30 million project has been officially marked by multiple government and airport officials. Features of
the expansion project include a modern, two-storey extension with an outdoor terrace area – which
creates more natural light and will increase the available space by 45% – additional seating, new toilet
facilities, five new catering units, and three additional retail outlets. In total, the extension will be 21 m
tall at its highest point and over 130 m long, built with 1,000 tonnes of steel and, at peak times, will see
200 construction workers collaborating on the project.
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Nick Barton, CEO of Birmingham Airport, said: “The extended lounge forms part of a wider terminal
transformation project, known as TE18, which will cater for the forecasted growth in passenger numbers
to 18 million per year by the year 2033. The departure lounge extension is the largest component of
TE18 and the biggest terminal investment we have made in ten years, at a cost of GBP 30 million. Once
complete, it will provide a spacious and modern facility for our customers with a wide range of shops,
restaurants and amenities.”
The U.K.’s Aviation Minister, Paul Maynard, said on 23 January 2020: “Our second city’s airport serves
more than one million passengers every month, so it is vital that it has the world-class facilities and state-
of-the-art infrastructure it deserves. This modern extension to the departure lounge will be good news for
the whole of Birmingham, helping boost the local economy while still supporting the airport’s wider
commitment of becoming net zero by 2033. It is not only set to boost the area's economy, but to also
help in the bid to become more environmentally friendly.”
In July 2019, Birmingham Airport had published its masterplan outlining how over the next
15 years it will invest half a billion pounds to meet the 40% forecast growth in passenger
numbers from the current 12.64 million in 2019 to up to an expected 18 million by 2033. All of this
growth can be achieved within the existing boundary and from its current runway. Other developments
taking place over the next three years forming the TE18 programme of works include an enlarged
passenger security search area, equipped with the latest X-ray equipment, further self-service bag-drop
kiosks, increased capacity in the baggage make-up hall, and additional arrivals baggage carousels. These
are all key components in the airport's strategy to provide excellent service and facilities to for its current
and future passengers. #1117.16
Leeds Bradford Airport (LBA) has unveiled plans for a brand-new terminal building, which
would enable it to meet its target of net zero carbon emissions from airport operations by
2023. The airport had previously submitted plans to extend its existing terminal, but the airport’s CEO
Hywel Rees said that “after scrutinizing all aspects of those plans, I am confident that we can accomplish
the same result, for the same number of passengers, but in a better way.” It was also confirmed that the
new site would be closer to a proposed parkway rail station, announced by Leeds City Council in 2019. It
is hoped that work would be able to start on construction of the site by the end of 2020, and for the new
terminal to be up and running by 2023. The new scheme follows concerns that existing plans would not
fit with Leeds City Council’s recent climate emergency declaration.
The new plan – which will be submitted this spring – calls for a brand new three-floor, 34,000-m²
terminal to be built on an alternative site within the airport’s boundary. The existing terminal would
remain operational until the new building is completed, with a scheduled opening date of 2023. The lower
ground floor would provide surface access to the forecourt and access to the main terminal by lifts and
escalators, while the ground floor will provide the check-in hall and the arrivals halls along with baggage
reclaim, customs and baggage make up. A first-floor mezzanine would house immigration and associated
facilities linked to a walkway to the aircraft, while the second floor would include a central search and
departure lounge, retail, food and drink, duty-free shops, and premium lounges. A western walkway
would sit alongside the new terminal building and provide contact stands for around twelve aircraft. The
GBP 150 million project would be privately funded by the airport’s owners AMP Capital and would be built
to achieve an excellent rating under the BREEAM scheme – the world’s leading sustainability assessment
method for master- planning projects, infrastructure and buildings.
Leeds Bradford is currently the 15th busiest airport in the U.K., with around 4 million annual passengers.
The airport is aiming to increase this figure to 7 million by 2030. The airport’s biggest carrier is Jet 2, with
flights to destinations including Amsterdam, Barcelona, Budapest, Paris-CDG, and Prague. Aer Lingus,
British Airways and KLM offer flights to the airport from their respective hubs of Dublin, Heathrow, and
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Amsterdam. Regional carrier Flybe also used to operate routes between Leeds Bradford and Belfast City,
Newquay, and Southampton before its collapse. #1117.17
New development plans for Doncaster Sheffield Airport (DSA) will see a GBP 10 million
investment in its terminal to help cope with the growth in passenger numbers in Yorkshire.
The airport’s owners have also renewed a plea to the Government to commit to a new GBP 300 million
railway station on the East Coast Mainline to provide easier access to the site, with hopes that the move
would help create 33,000 jobs over a decade. If successful, Doncaster Sheffield would be only the second
airport in the U.K. to have direct mainline rail access. Aviation Minister Paul Maynard visited the airport on
30 January 2020 to learn more about the planned re-development, which comes after The Yorkshire Post
had revealed Leeds Bradford Airport’s major re-development. Doncaster Sheffield Airport’s Chairman,
Robert Hough, said: “We are pleased the Aviation Minister recognizes our position as a key part of the
solution for the U.K.’s aviation needs and addressing the imbalance of just 1.2 seats per head of
population in Yorkshire versus 10 in the South. We are committed to delivering the opportunity here
which with the right support from Government can start making an impact on people’s lives in the North
now, not years ahead.” #1117.18
A new GBP 200 million logistics and industrial park is being developed at Teesside
International Airport in the north east of England. A ground-breaking ceremony was held in early
March 2020 and infrastructure work is now set to begin on the project that will see the creation of 3.4
million ft² of logistics, manufacturing and commercial space built on 270 acres of land running parallel to
the runway at the Southside of the airport. The biggest local authority shareholder in Teesside
International Airport (MME) looks set to take a long-standing ambition to develop the
Southside area a major step forward with the approval of a key partnership deal. It is hoped
the proposals for Southside, where planning permission was granted in 1999 by the Secretary of State for
freight handling, distribution and packaging, freight forwarding, will underpin a viable airport, the future
of which had hung under a cloud of uncertainty until January 2019. Tees Valley Mayor Ben Houchen has
outlined plans for the development, which would include 3.4 million ft² of logistic, manufacturing and
commercial space being built, providing opportunities for more than GBP 200 million of inward investment
and the creation of 4,400 jobs. His ten-year rescue plan for the airport also includes commitments to
increase passenger numbers to 1.4 million and secure a low-cost carrier by 2022.
Leading members of Darlington Borough Council, which has maintained its stake in the airport since Tees
Valley Combined Authority (TCVA) agreed to buy the 89% shareholding of Peel Holdings in January 2019,
will also consider supporting the huge development scheme through a GBP 23.6 million loan from TVCA
to create roads, utilities and flood mitigation works. Darlington Borough Council, together with the other
Tees Valley councils and Durham County Council, are minority shareholders of Teesside International
Airport Ltd (TIAL). To protect the public funds, consent from the minority shareholders is required to
enable TIAL to enter into any venture outside the normal business of the airport. The decision follows
concerns emerging that new flights from the airport were being subsidized by taxpayers with TVCA
contributing funds to support routes. #1117.19
Bristol Airport submitted outline plans in December 2018 for developments to increase its
annual passenger capacity from 10 million to 12 million a year by the mid-2020s, expand its
car parking, and improve the on-site infrastructure. The plans to increase the annual capacity by
20% were rejected by the North Somerset councillors on grounds including that the scheme's wider
negative impact on the environment would outweigh the narrower benefits to airport expansion. A
decision had been expected over the summer, but comments keep on coming - there are currently 3,787
objections and 1,807 letters of support, and reams of technical documents for planning chiefs to look
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through. Among them are Bristol Airport’s responses to representations from the likes of the Campaign to
Protect Rural England, Bath and North East Somerset Council, and Historic England. Concerns have
spanned from climate change and traffic to noise and biodiversity. The proposed increase in passenger
numbers would exacerbate climate change and would not help the transition to a low carbon future.
The Bristol project, coined ‘Towards 2050’, includes a charter for future growth in the five
key areas of aviation, economic impact, green belt, sustainable growth and surface access.
Design options for an inspirational gateway, improved boundary screening, and innovative uses for a
proposed airside platform are also being presented. Proposals for the next stage in the airport’s phased
development have been set out ahead of a planning application to increase capacity to accommodate 12
million passengers a year. The improvements required can be delivered largely within land owned by
Bristol Airport, and include surface-level car parking, a new canopy at the front of the building, an
additional multi-storey parking garage, and improvements to the on-site road layout. Local highway
improvements to enhance access are also proposed.
Janis Kong, Chair of Bristol Airport, said: “It was clear from the initial consultation on preparing a long-
term masterplan that local communities wanted clarity on our development plans and solutions to some
of the issues they face living close to a busy international Airport. “By bringing forward this planning
application in tandem with our emerging thinking on the masterplan, we will set out how phased growth
can be achieved through the 2020s as part of an exciting longer-term vision.” As part of the consultation,
proposals will also be developed to address impacts on the local community and environment including
aircraft noise, where no increase in annual night flights will be sought. Simon Earles, Planning &
Sustainability Director at Bristol Airport, added: “These proposals will ensure Bristol Airport continues to
provide the connectivity our region needs to be successful while offering local residents and stakeholders
greater clarity about the phasing of future development.
-- In 2018, Bristol Airport welcomed 8.7 million travellers through its Lulsgate terminal
making it the U.K.’s ninth busiest airport and the fifth outside of London. Planning permission is
already in place for facilities to handle up to 10 million passengers a year, and GBP 160 million has been
invested in infrastructure since 2010, including a hotel and multi-storey carpark. The updated masterplan
focuses on five key areas: creating a world-leading regional airport, employment and economic
prosperity, improving transport links, plus being sustainable and deliverable. #1117.20
Welsh ministers are considering loaning Cardiff Airport a further GBP 6.8 million, after
approving a loan of GBP 21.2 million in 2019. The airport had requested GBP 28 million at the time.
The Government will carry out analysis and financial due diligence before the additional funding is
approved. The initial GBP 21.2 million will help the airport invest in buildings and infrastructure, route
development, and security. The loan would be repayable over 25 years. The GBP 21.2 million loan was an
extension on the GBP 38.2 million the airport could already borrow from the Government. -- The Welsh
Government bought the airport in 2013 for GBP 52 million. Since then, passenger numbers have
increased significantly, but in December 2019. the airport posted a pre-tax loss of GBP 18.5 million,
nearly three times higher than the previous year. #1117.21
The developer behind a major development next to Edinburgh Airport has said there is "deep
disappointment" the Scottish government has called in the proposal. The 250-acre International
Business Gateway development was approved by City of Edinburgh Council on 30 May 2019. However,
the Scottish government said there were concerns about the transport impact of the proposed
development. It will now decide if the GBP 500 million plans will go ahead. The Government has used its
planning powers to call in the proposal. David D. Murray of Murray Capital - one of the International
Business Gateway consortium members - said the further delay in its plans would put at risk jobs,
investment and economic growth. He said: "This is a deeply disappointing decision by the Scottish
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government. The council has already undertaken an exhaustive three-year planning process on a project
we have been developing for over 20 years. "The Government has made clear its intent to steward the
growth of the Scottish economy at a time of very significant downside risk. But the words are not being
matched by action in this case, quite the reverse. This project would create hundreds of jobs in its
development and house 12,000 jobs when completed. The politics of the planning process is putting
investment, jobs and growth at risk. The danger is that the message from the Scottish government to the
world is a negative one at the very point when we need strategic projects like this active and investing in
the city and country."
A Scottish government spokesman said of the International Business Gateway decision: "Ministers have
called-in the application for planning permission in principle to allow further consideration of transport
impacts of the proposed development, in view of the national importance of the West Edinburgh area. As
this is a live planning application, it would not be appropriate to make any further comment on the merits
or otherwise of the application." -- The 15-year project promises large office accommodation, retail and
leisure space, more than 1,000 hotel rooms and 396 residential units. #1117.22
Aberdeen International Airport (ABZ) is working through a revolutionary GBP 20 million
upgrade to its terminal; a project which is the largest in the airport’s 85-year history.
Managing Director, Steve Szalay, reveals how the development will transform the way 3.1 million annual
passengers pass through the airport. A new era for Aberdeen: “The terminal upgrade is an exciting time
for me to join the team at Aberdeen International Airport, as we emerge from a troublesome period that
saw the energy sector suffer its biggest crash in decades, but the airport and the region are turning a
corner, and there is a renewed optimism in the air. I joined the airport in November 2018 and in that
short time I’ve come to realise that there is a tremendous opportunity for growth. Our passenger
numbers have plateaued during the last two years, but as our terminal upgrade nears completion and the
local economy shows green shoots of recovery, we’ll be well placed and ready when the uplift hits. We’re
still recovering from lost routes in 2017 and early 2018, and the sector isn’t without its challenges. We
are not immune from these. For us, market distortion remains impactful. Air Passenger Duty is still a real
barrier for growth, and we are feeling the effects of this. We hope that this issue comes to a positive
resolution. In difficult economic conditions, it would have been easy to postpone or even cancel our
Terminal Transformation project. Instead, we made the decision to invest. In the last two years, we have
delivered new domestic and international baggage reclaim areas, a hugely improved security search area,
and a much-improved retail offering for our passengers. Feedback has been overwhelmingly positive,
with further developments in late 2019. More retailers opened their doors in April 2019 within the
revitalized departures lounge and some existing catering units were refurbished in the summer months.
The final terminal was ready by October 2019. #1117.23
Guernsey Airport in the Channel Islands is proposing to spend up to GBP 12 million on a new
hold baggage screening system to comply with current aviation security requirements for
airports throughout the British Isles. The current equipment, which has been in operation since the
terminal building opened in 2004, no longer meets the regulations set by the U.K. Department for
Transport (DfT). The costs and benefits of extending the runway at Guernsey Airport by about
100 m – to 1,700 m - will be investigated. The decision was narrowly approved by a vote in the
Guernsey States (the local parliament) of 20 to 19 following decisions to not pursue further work in April
and September 2019. The Committee for Economic Development will be allowed to spend up to GBP
360,000 on the review, due to be completed by May 2020. Arguments for lengthening include attracting
new airlines. Deputy Jan Kuttelwascher, who led the motion, said this time the proposal was not limited to
extensions within the current runway safety area. #1117.24
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