AOA URGES BUDGET SUPPORT FOR UK AVIATION
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THE AIRPORT
OPERATOR
THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION
AOA URGES
BUDGET
SUPPORT FOR
UK AVIATION
and warns that the survival
of UK airports is at stake
Features
LEEDS BRADFORD SOUTHAMPTON AIRPORT
Plans for a new £150m terminal tells local council ts future
approved in principle depends on a runway extension
EIGHT ENGLISH AIRPORTS HOPES RISE FOR
SPRING 2021 bid for freeport status Stansted expansion
2
THE AOA IS PLEASED TO WORK
WITH ITS CORPORATE PARTNERS,
GOLD AND SILVER MEMBERS
Corporate Partners
Gold Members
Silver Members
WWW.AOA.ORG.UK
3
KAREN DEE
Introduction to The Airport Operator
THE AIRPORT
Welcome to All of these moves amount to a
OPERATOR this edition of
heartening vote of confidence
from the owners of airports that
THE OFFICIAL MAGAZINE OF THE AIRPORT OPERATORS ASSOCIATION
we will recover and be a vibrant,
The Airport successful sector again. But, while
AIRPORT OPERATORS ASSOCIATION
Operator that is really good news for the
future, it shouldn’t distract us from
The Baroness Ruby
McGregor-Smith CBE which tells the desperate situation that many
airports find themselves in now after
Chair
Karen Dee
the story of the Government has, in effect, forced
them to close down their passenger
Chief Executive how UK airports are fighting operations.
Henk van Klaveren
Head of Public Affairs & PR to survive the worst crisis The Office of National Statistics
recently confirmed that air travel has
Christopher Snelling that they have ever seen, but suffered more from the pandemic
Policy Director
Rupinder Pamme also points to some optimism than any other sector. The UK
Government’s statement that
Policy Manager
about the future. international travel restrictions will
Patricia Page not ease before 17 May means that
Executive Assistant We asked a diverse group of airports we will also be the worst-hit sector
& Office Manager to tell us how this year like no other this year. It is against this grim
has been for them and they paint a background that we have called on
Richard Atkin
vivid picture of the action they took the UK and devolved governments
Finance Executive
to save their businesses and to start to set out sector-specific support to
Tania Roca to prepare for the moment when help ensure there are viable airports
Operations, Safety we can all fly again. In this edition to be able to restart. In this issue you
& Commercial Director you can read the stories of chief can read about the Airport Recovery
Oli Melzack executives at Bristol, Cornwall Airport Plan that we have submitted to
Public Affairs Manager Newquay, Doncaster Sheffield and Whitehall in our bid to secure urgent
Gibraltar. support. We will find out whether
AIRPORT OPERATORS ASSOCIATION the Treasury has been listening on 3
As well as the view from airports,
3 Birdcage Walk March when Chancellor, Rishi Sunak,
we also sought the perspectives
London SW1H 9JJ reveals his Budget.
of our airline colleagues, of the
United Kingdom
wider business community and I hope that Ministers and officials
T: +44 (0)20 7799 3171 of the regulator and you can read will also understand that it is not just
E: info@aoa.org.uk perceptive contributions in this issue
W: www.aoa.org.uk financial support that we seek, vital
from IATA, the CBI and the CAA. as that is. Time and again in this crisis
Despite the tremendous difficulties we have seen rapid and unexpected
that all airports are currently changes in Government policy for our
Michael Burrell
experiencing, it is also striking to see sector announced with no warning or
Editor
how many of them continue to press consultation.
ahead with plans for growth and Now we need a clear framework for
investment in the medium and long- recovery from Government that will
THE AIRPORT OPERATOR term. enable us to plan ahead. Ministers
MAGAZINE IS PRODUCED BY can’t just press a button and say now
It was a cheering moment for our
sector earlier this month when Leeds ‘off you go’; we won’t have the staff
Bradford Airport won their local and airlines won’t have the aircraft
council’s approval for a new terminal available. It is going to be a big
Shimon Speigel
Creative Director building. You can also read about logistical and operational challenge
how Stansted been making its case for all of us to be ready to maximise
Natalia Lacerda the benefits of a restart. My hope is
to a public inquiry to secure approval
Graphic Designer that Ministers and officials will work
for an extra eight million passengers
GENIUM a year, while London Luton is seeking with us to set out a clear pathway
Studio 27 council approval for a one million to reopening so that, when the time
Quadrant Business Centre increase in its annual passenger cap, comes, we will all be ready to play our
135 Salusbury Road Bristol Airport is appealing against a part in the nation’s recovery.
London NW6 6RJ council decision to reject its plan for
a two million increase in its cap and Karen Dee, Chief Executive
T: +44 (0)20 7089 2622
Southampton Airport seeks council
E: hello@geniumcreative.com
approval for a vital runway extension.
W: www.geniumcreative.com
4
AOA URGES BUDGET
SUPPORT FOR UK
AVIATION AND WARNS
THAT THE SURVIVAL
OF UK AIRPORTS IS AT
STAKE
The Airport Operators Association has launched a
15-point Airport Recovery Plan in a bid to secure
urgent support for UK aviation in Chancellor
Rishi Sunak’s 3 March Budget.
WWW.AOA.ORG.UK
5 THE AIRPORT OPERATOR SPRING 2021
6
The report comes with a warning
from AOA Chief Executive, Karen
Dee, that “this summer must be a
success for aviation if airports are to
survive in the coming years”.
She said: “A further delay in
airports’ recovery leaves the UK’s
economic recovery at risk and the
UK Government’s levelling-up and
global Britain agenda in tatters.
If government fails to step up to
the plate, the impacts are clear:
people and businesses who depend
on aviation for their own success
will carry the heaviest burden,
particularly outside London and the
South East of England”.
In the run-up to the Budget the The impact of the pandemic on UK airports had been
AOA has been meeting MPs of
all parties to outline its recovery
“unprecedented” and was felt across all airports, but
plan. MPs on the Transport Select significantly more so at smaller airports.
Committee have been fully briefed
and copies of the report shared with
Shadow spokespeople, airport and that sets out how and when testing to facilitate a world-leading border
aviation-interested MPs and peers will reduce and finally eliminate experience.
and similar groups in the devolved quarantine for international travel.
administrations. 10. Fund support for the further
4. Withdraw business support only roll-out of next generation security
The 17-page AOA report, published gradually, with a continuation of equipment.
on 3 February and described as “A measures such as business rate
Recovery Plan to let UK airports relief and the Job Retention Scheme 11. Allow Apprenticeship Levy
take off again”, sets out how the for the aviation industry. funds to be spent on general skills
Government can support airports training.
through the aviation shutdown, 5. Offer a 12-month Air Passenger
help to restart aviation, boost Duty holiday, remove double- 12. Fund the first stages of the
the aviation recovery, ensure UK charging of domestic APD and Airspace Modernisation Strategy.
airports remain competitive and deliver discounted APD for flights
world-leading, ensure a sustainable using sustainable fuels. 13. Establish a “Green Airports”
aviation recovery and plan for future Fund to fund sustainable power
pandemic resilience. 6. Reverse abolition of the airside and heat generation, electric
VAT exemption and introduce vehicle charging infrastructure, low
Specifically, it says that the arrivals duty-free. emissions airside vehicle uptake
Government should: and sustainable aviation fuel
7. Establish Public Service infrastructure.
1. Extend full business rates relief in Obligation routes for important
2020/21 and retain relief in 2021/22, routes that are not returning and 14. Provide funds to improve
while also providing alleviation from set up an Aviation Restart Fund to access to airports, including green
regulatory and policing costs in the provide funding for airport charges transport options.
current financial year and again in on certain routes.
2021/22. 15. Provide a framework for future
8. Reassert its commitment to pandemic management to be in
2. Cover airport operating costs “making best use of existing place if and when COVID-19 is
during closure of domestic and runways” and the safeguarding of managed to a point where health
international passenger movements land around airports. restrictions are no longer required.
i.e., at least during the first quarter
of 2021. 9. Fund research for the trialling In her introduction to the report,
and implementation of current and the AOA Chief Executive said there
3. Put in place a testing framework future seamless journey technology was “a real prospect that 2021 is not
WWW.AOA.ORG.UK
7
materially better than disastrous
2020”. The Report develops AIRPORT OPERATORS ASSOCIATION
A UK Airport
She pointed out that throughout three different Recovery Plan
the COVID-19 crisis airports had
remained open in the national traffic scenarios for
interest, serving remote communities
and key industries such as oil,
the period 2021-
gas and offshore wind, as well as 25. All assume that
providing emergency services and
bringing crucial supplies into the UK domestic traffic
UK. All of these were costs borne
by the aviation industry with little
recovery is stronger
government support or recognition. than international
Dee said that government support short-haul traffic
would be vital, even in an optimistic
scenario, to prevent the UK lagging
due to fewer travel
behind our international competitors. restrictions.
UK-wide passenger numbers could
return to 2019 levels around 2025 at
the earliest, if 2021 sees a successful
global vaccine roll-out and easing sector supported Gross Value of 2021. At medium-sized airports
of travel restrictions, but that was Added of £46.2 billion, 832,000 EBITDA returns are also expected
genuinely an optimistic scenario. jobs and associated income of £25.7 to be positive from the summer of
billion. 2021, though revenue recovery is
She emphasised that “the role of slightly weaker and EBITDA returns
government is to see the aviation The impact of the pandemic on UK might not be positive throughout the
sector not just through the airports had been “unprecedented” year in the most pessimistic scenario
immediate crisis but support the and was felt across all airports, but until 2025. At smaller airports
sector through the slow recovery significantly more so at smaller annual EBITDA is expected to remain
with a UK-wide Aviation Recovery airports. All airports had sustained negative throughout the period.
Package”. Dee said: “the financial heavy losses but those sustained
damage of the pandemic for by small and medium-sized airports Looking at prospects for airports
aviation will take years to repair, so had been proportionately greater. by region in the 2021-25 period,
the work must start urgently. This the Steer Report suggests that the
is particularly important outside The Report develops three different finances of London’s airports are
London and the South East, where traffic scenarios for the period 2021- projected to recover faster than
the recovery is expected to take 25. All assume that UK domestic those of other regions. This is partly
longer to the detriment of the UK traffic recovery is stronger than because on long-haul routes airlines
Government’s levelling-up agenda”. international short-haul traffic due are likely to initially concentrate their
to fewer travel restrictions. They capacity at Heathrow and Gatwick.
The UK Airport Recovery Plan draws also all assume that short-haul traffic In the North of England and Scotland
from a 56-page report commissioned recovery is stronger than long- the potential loss of connections
by the AOA from the global business haul due to better cooperation on to emerging markets in Asia and to
consultancy, Steer, on the impact of international traffic restrictions as hub airports in the Gulf could have
COVID-19 on the UK aviation sector. well as more effective mitigation significant negative implications for
The Steer Report was completed in of the virus (e.g., through vaccines) regional connectivity. The economic
December 2020 and the consultancy within Europe, compared to many of impact of lower traffic is likely to be
has noted that developments since the UK’s long-haul destinations. felt the most in countries and regions
then “produce a significantly more more reliant on smaller airports,
pessimistic outlook for 2021 and a Steer suggests that following such as Wales, Northern Ireland and
more adverse starting position for the start of the projected traffic Yorkshire and Humberside.
medium-term recovery”. recovery in the spring of 2021,
revenues are expected to pick up Finally, the Report suggests that
The Report notes that prior to the significantly across all airports. small and medium-sized airports
pandemic the UK was the fourth At large airports earnings before will need to offer incentives and
largest in the world and the largest in interest, taxes, depreciation and discounts on airport charges in
Europe, with 300 million passengers amortisation (EBITDA) are projected order to attract traffic during the
passing through UK airports. The to be positive from the summer recovery.
THE AIRPORT OPERATOR SPRING 2021
8
AOA HEALTH AND
SAFETY GROUP
CO-CHAIR ENCOURAGES
AIRPORTS TO
“STEAL WITH PRIDE”
Heathrow’s Head of Health and Safety, Sharon Smith,
who co-chairs the AOA’s Health and Safety Group, says
that UK airports should do more to learn from each other
about best practice in airport health and safety.
A UK airports have
long with co-chair, Joanne injuries” (where syringes or needles
Johnstone, London Luton’s penetrate the skin) suffered by
Head of Health, Safety
and Environment, Smith has told
security staff searching passenger
bags, with the number of such
a great track record
colleagues at other airports that injuries now significantly reduced by in keeping runways
“it is OK to steal with pride. When
people take the best of the best that
the use of cut-resistant gloves.
safe, but what she
is in the spirit of collaboration. It
isn’t plagiarism and it is perfectly
The Group will use the AOA’s iAuditor
safety benchmarking tool to review
is seeking to do in
acceptable”. performance jointly, identify and the Health and
Smith said that UK airports have
address trends collaboratively
and share best practice to target Safety Group is
a great track record in keeping
runways safe, but that what she
an airport-wide improvement in
safety performance. It will monitor
“shine a light” on the
is seeking to do in the Health and safety standards through 2021 to health and safety of
Safety Group is “shine a light” on the
health and safety of individuals in
enable airports to move towards a
performance targeted approach for
individuals in airport
airport terminal buildings, whether
they be passengers or staff. In
2022. terminal buildings,
particular, she has launched a work Smith said that airports had long whether they be
programme which will focus on
steps that can be taken to improve
been collecting statistics about
time lost through injuries, but by
passengers or staff.
employee injury rates. Drawing on harnessing the power of automation,
her own experiences at Heathrow, the web-based tool would make it
she gave as an example “sharps really easy for airports to gather and
WWW.AOA.ORG.UK
9
“It brought us all became keener than ever to learn pandemic is going to be a mental
from each other’s experiences and health crisis”
together as we became quickly accustomed to doing
collectively tried to so through video calls. The Health and Safety Working
Group now meets monthly with a
navigate a set of issues Recalling the early months of the key objective being to widen its
where we had no crisis, she said: “It brought us all
together as we collectively tried to
membership. In addition to the
regular group meetings, there will
previous experience. navigate a set of issues where we had be two knowledge-best practice
It enabled us to come no previous experience. It enabled
us to come together and connect on
share sessions each year, each
of which will be filmed, edited
together and connect a mutual subject that was impacting and widely distributed to AOA
on absolutely everybody”. Smith said members.
on a mutual subject that COVID-19 had necessitated a
that was impacting on new emphasis on the health part of
health and safety in relation to both
For more information,
please contact
absolutely everybody”. physical and mental health. Looking Sharon.Smith@heathrow.com
ahead, she anticipates that “the next
share information about incidents
resulting in injury. Airports would
be able to provide the information
anonymously, but they would
know “where they are in the index
and that can allow us to have a
better and richer conversation”. It
would make it possible to compare
employee injury rates across all UK
airports, regardless of size.
She emphasised that the point of
benchmarking was “not to name
and shame airports, but to say
somebody is getting it right over
here and that then allows us to
say who is best in class and to
learn from an airport what I can
take from them. We can learn
the conclusions from an incident
and then collectively drive safety
performance”. Smith said: “You
can’t improve what you don’t
measure, but if we start to measure
our injury rates and we look at them,
we can start to focus on reducing
them”.
Smith said that she had been
encouraging the spirit of
collaboration within the Health and
Safety Group since 2019, when
she first proposed that holding
meetings online would facilitate a
more regular conversation. Then
came the COVID-19 crisis, which had
presented airport health and safety
professionals with a multitude of
new and unprecedented challenges, Sharon Smith ,Heathrow’s
Head of Health and Safety
but also had the effect of
reinvigorating the Group. Members
THE AIRPORT OPERATOR SPRING 2021
10
EXETER AIRPORT MP
SAYS THE GOVERNMENT
MUST ACT QUICKLY TO
ENSURE THE SURVIVAL
OF REGIONAL AVIATION
MPs receive hundreds of emails a day. Say a dozen or so
will be from industry lobby groups in the UK economy.
These emails often contain the latest bleak economic
assessment of the severe damage the pandemic is doing to
their respective sectors: “£X billion lost revenue”; “customers
down Y% on a year before”; “indebtedness sky high”.
F
or some, it can be easy to the table. The airline was a lifeline Exeter and Norwich airports, have
gloss over aviation headline for communities in the South West, lost 90% of passengers since the
projections as a tad abstract. served by its hard-working and pandemic took hold. Despite this,
For MPs who don’t have a dedicated staff. these airports are still stepping up
commercial airport in their backyard, to the plate in playing a critical role
these figures could subconsciously A year on, the picture is brighter in supporting our national effort to
feel remote: one day people will for my constituents. Exeter Airport combat coronavirus, be it providing
travel again to and from Spain, was handed a real lifeline after I ran supplies for the NHS, army, and
France, Italy or the US, so the a successful campaign for airports emergency services or ensuring mail
thinking goes. to apply for up to £8m of financial continues to flow. These are Public
support. In another boost for aviation Service Obligation (PSO) routes in all
I know MPs with regional airports in East Devon, the Dublin Aerospace but name.
in their constituency feel a real Group has created 100 highly skilled
responsibility to people whose aircraft maintenance jobs at Exeter I’m acutely aware the commercial
jobs depend on aviation’s long- Airport. airline industry will need at least
term survival. I felt the devastating three months to get going again.
collapse of Flybe cruelly just before At the time of writing, however, Pilots may undergo flight simulator
the furlough scheme came into only one flight took off today from training or cabin crew will be brought
place last year. Many local families the airport: a short internal flight to onto updated contracts and shifts.
overnight had no money coming Belfast. Regional and City Airports, That’s why a go-date is absolutely
in to pay the bills and put food on owners of Bournemouth, Coventry, crucial.
WWW.AOA.ORG.UK11
We cannot have an altogether
avoidable “lost summer”. At the
moment, opinion polling shows the
British public widely want to keep the
borders closed with tough custodial
penalties for ignoring quarantine.
When push comes to shove, however,
is this really what should be in place
in the summer when cases are fewer,
the vaccine rollout continues at pace,
and the idea of a break in Europe
or further afield takes on a renewed
appeal? It’s certainly up for debate
and I know which side I’m on.
Last March, a review of Air Passenger
Duty was announced as part of a
package of measures to support
regional connectivity by air. Many
MPs welcomed this move to level
the playing field to ensure regional
airlines weren’t hampered by
having to pay UK APD twice. The
government should also look at
extending the COVID Corporate
Financing Facility (CCFF) repayment
terms for airlines to bring this into
closer line with loan repayment
schedules for smaller businesses
through the Coronavirus Business
Interruption Loan Scheme.
Simon Jupp,
MP for East Devon
We need clarity on the government’s
position when the Aviation Recovery
Plan and Regional Connectivity
Review are eventually published. On
the Transport Select Committee,
“We need clarity on the government’s position
we’ve considered the devastating when the Aviation Recovery Plan and Regional
impact of coronavirus on the
aviation sector and the government’s
Connectivity Review are eventually published”.
response to support the sector and
keep passengers flowing – not least even cheaper fares. Either way, it’s Exeter University and the Met Office
travel corridors, passenger refunds, essential the government uses all are leading on cutting-edge climate
safe travel guidance, employee the tools at its disposal to ensure change science research ahead of
furlough, redundancies, and a fair playing field for operators COP26, and farms across Devon
financing through the CCFF. But we such as Loganair, Blue Islands and package up their finest produce and
still await one of the key tenets of this Skybus that operate from Exeter sell into US and Asian markets.
recovery through the Department for Airport. And it’s equally essential that
Transport’s plan, delayed as Ministers government support is not solely The survival of regional aviation is
grapple with the ever-changing contingent on public confidence to critical. Without it, we’ll be levelling
public health picture. It simply can’t fly, which is out of airlines’ control. down rather than levelling up the
come soon enough. economic growth we need now more
Post pandemic, the government than ever, in every corner of the
Even if we do hear good news on needs to couple-up our levelling-up country.
APD, the benefits of cutting it – an agenda with the role regional airports
excise tax – will only be felt when play in the wider UK connectivity. Simon Jupp is MP for East Devon
planes can return to the skies The South West is not all cream teas and a member of the House
and bookings come through as and sandcastles. Exeter Science Park of Commons Transport Select
companies can choose whether to is next to the airport and boasts tech Committee.
take the savings themselves or offer businesses that export to Japan,
THE AIRPORT OPERATOR SPRING 202112
SOUTHAMPTON
AIRPORT TELLS LOCAL
COUNCIL ITS FUTURE
DEPENDS
ON A RUNWAY
EXTENSION
Southampton Airport has told Eastleigh Borough Council
that approval of its plans for a runway extension “is now
fundamental to the future of the airport”.
T
he statement is part of new runway extension. The extension airport “would be loss-making”.
information submitted to the is now fundamental to the future By contrast, approval of the
Council last month in support of the airport, to ensure long-term
of its planning application for a resilience is captured for when the
164-metre runway extension. current pandemic situation begins
to ease for the aviation sector.
Southampton
The airport told the council that, as Southampton Airport being able Airport being able
a result of COVID-19, there is now
only a very low level of activity at the
to offer a wider variety of routes
from a higher number of different
to offer a wider
airport, with one or two flights per operators, will ensure that the variety of routes
day to the Channel Islands and a large
number of staff being furloughed.
airport can remain a key part of the
local and sub-regional economy”.
from a higher
number of different
“Despite this significant fall in both
use and income which, coupled with
In its additional and revised
information, Southampton Airport
operators, will
the collapse of Flybe, could have says it is “unlikely to operate at a ensure that the
catastrophic long-term implications
for Southampton Airport” the
level more than approximately 50%
of the level of operations before
airport can remain
airport’s submission says that: “the the collapse of Flybe without the a key part of the
parent company, AGS Airports
Limited, remains committed to the
runway extension in the foreseeable
future”. At the level of operations
local and sub-
capital investment required for the forecast without the extension the regional economy.
WWW.AOA.ORG.UK13
application would allow the airport However, the airport says that “the
to engage with a wider variety runway extension would enable
of airline operators as they seek a further 900+ of the aircraft
to introduce alternative routes to operating within this market, mainly
replace those of Flybe. from the Airbus A320 and Boeing
737 families and comprising the
More airlines and new routes would preferred fleets of market-leaders
“help to secure the viability of Ryanair, EasyJet, Wizz Air and Jet2,
the airport, safeguard jobs in the to operate from the site”.
local area that would otherwise be
lost and provide future resilience A public consultation on the airport’s
through a lower level of reliance proposals is now underway and
on a single operator”. The airport a final decision on the planning
said this should be “a key material application will be taken by the
consideration” in Eastleigh Eastleigh Local Area Committee of
Borough Council’s determination of Eastleigh Borough Council, possibly
the planning application. next month.
The airport has explained to the
Council that the current runway
length prevents many airlines
operating their fleet from the
“The runway extension would enable a further
site. The former Flybe fleet of 900+ of the aircraft operating within this market,
63 aircraft was the single largest
fleet capable of using the airport
mainly from the Airbus A320 and Boeing 737
and, following its collapse, there families and comprising the preferred fleets of
are now only just over 100 aircraft
in the UK market that could be
market-leaders Ryanair, EasyJet, Wizz Air and
accommodated in the summer Jet2, to operate from the site”.
season without the extension.
THE AIRPORT OPERATOR SPRING 202114
IN IT FOR THE LONG
HAUL – WHY IT’S
SO IMPORTANT TO
BUSINESS THAT THE
AVIATION SECTOR
SURVIVES AND THEN
THRIVES
By Matthew Fell, CBI Chief UK Policy Director.
A
t the CBI, we’re clear that the understand how critical aviation is to to beat. So, how can we help the
aviation sector matters for the tackling regional inequalities, with its aviation sector survive and then
UK economy. We’ve been a supply chains running deep into local thrive? It feels to us that we need to
leading voice in support of aviation economies. approach the challenge with bi-focal
from the moment the pandemic lenses.
struck. And with our membership spanning
airlines and airports, as well as First, comes the short-term action.
Our role in speaking for businesses the supporting logistics and
of all sizes and sectors, across infrastructure firms, we can be clear We’re calling on the Chancellor to
the breadth of the UK, make us a about the importance of the sector take urgent action to support jobs,
powerful ally. in its own right, as a source of skilled by extending the furlough scheme,
jobs right across the UK. and to support cashflow with
It means we can speak with further action on business rates and
authenticity about aviation’s For all these reasons, we’ve VAT.
importance to the wider economy, strained every sinew and worked
whether that be through boosting collaboratively with the government We want assurances from the
tourism, meeting clients overseas, to shape the Job Retention Scheme, Treasury that it will provide support
enabling engineers to support put in place business loan schemes commensurate with the impact
manufacturing in foreign markets or and argue for grants to help of restrictions. Increasingly, this
bringing goods into the UK. maintain jobs and save firms in these support should be focused on
challenging times. the parts of the economy in most
Our presence in all regions and distress, including in supply chains
nations of the UK means we But the Covid virus is proving hard and hardest hit sectors, something
WWW.AOA.ORG.UK15
“We want the
government to set
out a clear recovery
plan, to help put
an end to the stop-
start nature of
restrictions and
enable business to
plan for a successful
return to growth”.
some stakes in the ground and point
towards the sort of economy we
want to be in a global context.
The aviation sector should and must
be at the heart of this vision.
First, by deploying the skills,
innovation and technology inherent
in the sector to secure a low carbon
future through the development of
sustainable aviation fuels and the
broader “Jet Zero” ambitions.
Second, by helping to tackle regional
Matthew Fell, Chief UK inequalities and making build back
Policy Director, Confederation better a reality. From professional
of British Industry services firms in London through
to manufacturers in the North East,
aviation has a critical role to play in
‘levelling up’ the UK, a view we’ve
made loud and clear in the Regional
that the aviation sector can The UK has a once in a generation Air Connectivity Review.
legitimately claim has not been the opportunity to shape its future. The
case so far. twin shocks of Covid and Brexit And third, the aviation sector must
coupled with structural changes play a central role in “Global Britain”.
And we want the government to set driven by Net Zero and technology We have a unique opportunity to re-
out a clear recovery plan, to help offer a chance to shake off persistent establish the UK on the world stage
put an end to the stop-start nature challenges around productivity, this year, as hosts to both the G7 and
of restrictions and enable business regional and social inequality. COP26. More than anyone, airlines
to plan for a successful return to provide the connectivity and access
growth. For the international travel Unprecedented times call for an to markets around the world, the
sector, this would include a clear set unprecedented response. This is lifeblood of any successful modern
of criteria for re-opening, and a plan an opportunity for Britain to do economy.
for making maximum use of testing something different and better
and vaccines to get people back than it’s ever done before, to set That’s why the CBI, as the voice of
flying as soon as it is safe to do so. out a vision for how we compete business, is standing shoulder to
in the world. And it can be done in shoulder with the aviation sector to
At the same time as these actions for a unifying way, with business and help it survive and then thrive.
survival, it’s important to think about government collaborating on a
Britain’s place in the world and how shared mission. Matthew Fell is Chief UK Policy
we equip ourselves for long-term Director of the Confederation of
success. The vision must be bold. It should put British Industry.
THE AIRPORT OPERATOR SPRING 202116
PLANS FOR A NEW
£150M TERMINAL AT
LEEDS BRADFORD
AIRPORT APPROVED
IN PRINCIPLE
Leeds Bradford Airport is celebrating council approval for
a completely new terminal building that will replace the
existing terminal built in 1965.
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After a marathon debate of more “If fully approved, routes for business travellers, as
than eight hours, nine members of
Leeds City Council’s city plans panel our scheme would well as for the holiday traffic”.
voted to back the plans in principle, enable us to become Clarke said that some passengers
while five members voted against.
a net zero airport, would always go to a bigger
airport, like Manchester, but “where
Now the airport will make some delivering a much- there are opportunities for those
minor changes to its plans to take
account of concerns raised during
improved passenger passengers not to have to travel so
far, flying from a modern airport
the debate and then resubmit experience and to the destinations that they
them for full permission by the creating thousands choose, that is going to be a step
of jobs, helping to
panel later this year. They are then change for the experience of those
expected to win final approval passengers and of course will be
from the Secretary of State for support our region’s good for the environment”.
Housing, Communities and Local
Government. recovery”. The 34,000 sg.mt. state-of-the-
art building will be constructed to
Airport Chairman, Andy Clarke, said an environmental standard that,
that because the approval process panel members during the debate, the airport says, only a handful of
had been delayed by COVID-19 a he said: “They had a few issues other airport terminal buildings
completion date of 2023 was now around the train station, around in the world have achieved. The
unlikely. He promised that the taxis and on landscaping”. Johnson airport has estimated that the
new building would be the most said the new terminal would development will support over
environmentally friendly terminal “provide the people of Yorkshire 12,000 permanent jobs across the
in the UK. Clarke said the airport and of the region with a world class Leeds City Region and create 850
was “delighted” to have secured the terminal”, adding that it had also construction-related jobs over the
panel’s in principle support, adding: been designed with a clear focus on period of building work.
“If fully approved, our scheme people with restricted mobility.
would enable us to become a net
zero airport, delivering a much- The decision by councillors has
improved passenger experience and been welcomed by business
creating thousands of jobs, helping organisations in the region who
to support our region’s recovery”. want a more modern airport with
a greater range of destinations.
Charles Johnson, Head of Planning Clarke said the airport
and Development at the airport had been in discussion
said that he and his team would with a number of airlines
now work with planning officers over the last year
to establish what the conditions and, while it was too
for full approval would be. Noting early to make any
some of the concerns raised by announcements about
additional routes and
airlines, “we have
The 34,000 sg.mt. got some exciting
state-of-the-art opportunities that
will give broader
building will be
constructed to an
environmental
standard that,
the airport says,
only a handful Andy Clarke, Chairman
Leeds Bradford Airport
of other airport
terminal buildings
in the world have
achieved.
THE AIRPORT OPERATOR SPRING 202118 WWW.AOA.ORG.UK
19
FACING THE
CHALLENGE AND
FUTURE TOGETHER
By CAA CEO, Richard Moriarty.
T “I would like to
welve months ago, few of Despite the enormous financial and
us could have predicted management challenges, I believe
our current situation. The publicly recognise that airport operations have coped
coronavirus pandemic has taken
an enormous human and economic
and applaud the with the ongoing challenges and
uncertainty remarkably well. The
toll, and sadly will continue to professionalism sector has helped with the national
do so for the foreseeable future, and dedication effort in terms of guaranteeing vital
despite the planned global roll-
out of vaccines. Aviation has of all colleagues medical supplies and equipment
is flown into and around the
suffered unprecedented financial in aviation, who country. Airports have also found
harm and we have seen many
valued colleagues and friends lose
under very difficult themselves in the media and
political spotlight for much of the
their roles across the industry as circumstances have response to the pandemic. Air
businesses make the very difficult
but necessary decisions needed
ensured airports have corridors, passenger testing and
quarantine measures are all issues
to survive. Not only has aviation continued operating that airports have very little direct
already had to endure a whole
year with a huge loss of demand
throughout the last control over but are nevertheless
closely involved in.
and hence income, it also faces an 12 months”.
uncertain next few months ahead of I appreciate that everyone wants
what for many is a critical summer to have confidence that a recovery
season. for infrastructure operators where scenario is in prospect soon.
significant cost items are fixed. When the time comes for travel to
You do not need me to tell you just The uncertainty over when normal restart, I believe UK aviation will
how challenging the last 12 months service can resume, and the inability play a critical role in our economic
have been for the airport sector to plan ahead, is only adding to the recovery. Aviation will literally get
in particular. In 2019 UK airports pain. us moving again, connecting us to
handled a combined total of 296m our trading partners and driving
passengers - if 2020 had been I would like to publicly recognise economic growth as it moves
a normal year, we would almost and applaud the professionalism passengers and cargo around
certainly have broken through the and dedication of all colleagues in the world. All of our research
300m passenger milestone. As it aviation, who under very difficult and intelligence suggests there is
is, the figure was closer to 60m, circumstances have ensured airports tremendous pent up demand for
almost an 80 per cent decrease. have continued operating throughout people wanting to holiday, visit
This statistic represents an immense the last 12 months. Very difficult friends and relatives and conduct
existential struggle for businesses decisions have had to be made to trade and business.
trying to survive a severe a balance the need to keep operating
prolonged downturn, especially against the necessity to reduce costs. As the regulator for the UK aviation
THE AIRPORT OPERATOR SPRING 202120
“I want to reassure
everyone within the
industry that we will
continue strong and
productive working
relationships with our
European partners”.
the businesses we regulate over the
recent transition out of the European
system. Looking forward, we will be
working closely with the Government
to identify potential areas where
reform of the current status quo
can deliver real benefits, without
compromising safety, security and
consumer interests. In many cases,
like for commercial aviation, there
will be benefits to the industry in
remaining aligned with the existing
international framework. In other
areas, such as grassroots sport and
recreational aviation and new and
future technologies, there may be
opportunities for regulatory reform
which will deliver greater benefits.
I want to reassure everyone within
the industry that we will continue
strong and productive working
relationships with our European
partners. We will do all we can to
preserve the close ties that bind
Richard Moriarty, Chief the UK and EU aviation sectors.
Executive Officer, Civil Further afield we have already
Aviation Authority started deepening our international
relationships by establishing mutual
recognition arrangements with our
equivalent authorities in the US,
industry, we are totally focused on demand increases, potentially Canada, Brazil, Australia, Japan, New
doing all we can to assist airport with a surge from a low baseline, Zealand and Singapore.
businesses weather the current storm the re-start will pose some safety
and aid their operational recovery challenges that we all need to be Whatever the ‘new normal’ looks like
efforts in a safe and consumer- aware of and have plans in place to when we are on the other side of the
focused way. We have had many mitigate. pandemic, we will all be affected by
conversations with airports all over this experience for many years to
the country, working with them on The UK and the CAA now has more come. Hopefully, though, we will be
how to reconfigure their operations flexibility than before when it comes able to build on what we have learnt
in a safe and secure manner. to setting regulations. We are no and look forward to the future with
longer a member of the European confidence. Whatever lies ahead,
Another task for us all will be working Union Aviation Safety Agency facing it together will give us all the
to make sure we have a safe return (EASA). This has necessitated best possible outcome.
to normal. Much of the industry, from a huge amount of work on our
aircraft to systems and individuals, part to re-establish ourselves as Richard Moriarty is Chief Executive
will have been either dormant or an independent regulator, and to Officer of the Civil Aviation
working at reduced capacity. As provide continuity and assurance for Authority.
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G7 SUMMIT IN JUNE
WILL GIVE CORNWALL
AND ITS AIRPORT A
“ONCE IN A LIFETIME
OPPORTUNITY”
Plans to hold a world leaders’ summit in Carbis Bay,
Cornwall, this summer present “a once in a lifetime
opportunity to put Cornwall on the map”, according to Pete
Downes, Managing Director of Cornwall Airport Newquay.
D
ownes says that when he and South Korea. Cornwall Airport
talks about the long-term Newquay is an official partner of the
recovery of the airport event and will see leaders’ planes
from the collapse of Flybe and the arriving from around the world,
COVID-19 crisis, he sees “the legacy though it is not yet known whether
of the G7 as being the single most Jo Biden will fly in directly from the
important gift and the single most US on Air Force One.
important tool that we will have at
our disposal to drive the recovery, But Downes says: “What really
as after the G7 everyone will know excites us as much as the actual
Carbis Bay, will know St Ives and will three days of the summit and the role
know Cornwall”. we play there is what this does for
Cornwall in terms of long-term legacy
The G7 summit, scheduled for 11 to and how visible Cornwall will be
13 June, virus permitting, will be the around the world when this summit
first such meeting for two years. It is being held. The real opportunity
will be hosted by Boris Johnson for the airport doesn’t come from
and attended by US President, Jo having a few planes on site in June, it
Biden, and the leaders of Canada, comes from those images of Carbis
France, Italy, Germany and Japan, Bay and St Ives being seen around
as well as the European Union and the world and what that will do for
invited leaders from Australia, India people’s awareness of the charms
THE AIRPORT OPERATOR SPRING 202122
and enduring appeal of Cornwall”. Cornwall Airport Newquay, which has aircraft has a problem in the air, we
seen its passenger numbers plummet have been, throughout the pandemic,
He said: “I think it will give us a from 461,00 in 2019 to just 68,000 in the people who will support and deal
platform as we look to grow our 2020. Most of the 2020 volume was with that problem in the air, get that
international routes over the coming in the first two months of last year aircraft on the ground and then have
years and start to increase the before the collapse of Flybe and the the support on the ground in terms
number of markets where a direct onset of COVID-19. Until 2019 Flybe of rescue and fire-fighting services
link to Cornwall will be seen as accounted for 70% of the airport’s to deal with any issue. We have been
something with potential”. There passenger traffic. doing that very much at cost and
would also be a huge opportunity at a significant financial loss for the
for international connections via While the airport terminal has benefit of the wider industry. I think
the airport’s link to London. The G7 been closed to passenger traffic that is lost sometimes, just how much
being in Cornwall was “a once in a throughout the lockdowns, the regional airports in far-flung corners
lifetime opportunity to put Cornwall aerodrome itself has remained of the country actually do to keep
on the map and gives us a fantastic open for training, General Aviation, the rest of the industry moving”.
tool to go out and market Cornwall coastguard, search and rescue and
to airlines and tour operators and military flights. The airport’s in-house Like other small regional airports,
grow the number of services going radar and air traffic control services most of Cornwall Airport Newquay’s
forward”. have also continued to keep the skies revenue in normal times comes from
of Cornwall safe for small airfields in passenger flights. With most of
Meanwhile, a decision is imminent the county and for the lifeline services those having been effectively shut
on which airline will be awarded between Land’s End and the Isles of down by Government fiat, Downes
Cornwall Airport Newquay’s Scilly, with Cornwall Airport Newquay believes that the Government should
Public Service Obligation (PSO) being available for any bad weather now step in to help smaller regional
route to London for the next four diversions. airports. Looking ahead to the
years. The service, which is widely Chancellor’s Budget on 3 May, he
expected to be to Heathrow, will Downes comments: “That applies hopes that the Treasury will eliminate
provide Newquay with year-round in the skies all over Cornwall. If an the charging of Air Passenger Duty
connectivity to London, which
Downes said was ultimately what the
PSO was there to deliver. Its renewal
was always an important point for The G7 being in Cornwall was “a once in a
the airport, he said, but it was even
more important this year because “it lifetime opportunity to put Cornwall on the map
will really light the way ahead for the and gives us a fantastic tool to go out and market
airport’s recovery and will form the
basis on which we can build”. Cornwall to airlines and tour operators and grow
A recovery is badly needed at
the number of services going forward”.
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for granted. Another point that
Downes is keen to emphasise is that,
with the airport’s workforce now
down to less than half of normal
summer season levels, it will take
time for it to rebuild. He said:
“We just wouldn’t be in a position
where we could get back to half a
million passengers a year, even if
the demand was there, because the
business needs to recover, as well as
the traffic base”.
During the lockdowns, Downes’
priority has been to maintain regular
dialogue with the airport’s existing
airline partners, not least Loganair,
who stepped in just before the
pandemic with commitments to
take over some of the main Flybe
routes. All being well, Loganair
hopes to begin operations this
spring reconnecting Cornwall
to Edinburgh, Newcastle and
Aberdeen, as well as operating
routes to Teesside, alongside the
current Eastern Airways service, and
to Manchester.
Downes stresses the importance
of rebuilding year-round capacity
to Manchester, which had been
Pete Downes, Managing delivering 100,000 passengers up
Director of Cornwall
to 2019 and he was clearly delighted
Airport Newquay.
when easyJet announced Newquay
as a new network point earlier this
month. EasyJet will offer a year-
round five times a week service
(APD) on one leg of a domestic the first aviation sector to bounce to Manchester and a twice a week
journey. There are, he says, “so back, that would significantly summer season service to Glasgow.
many benefits that can be derived boost the airport’s short-term
and the recovery of airports like recovery prospects. As Downes Following these new airline and
ours can be so well-supported puts it, “if what you need as an route announcements, Downes
by the simple change of a 50% airline is more domestic traffic concludes that: “If travel can get
reduction in APD. It would quite and a strong leisure focus, there going again, I think we will be
genuinely be transformational is nowhere in the UK that is ahead of the game in a number
for many of those smaller better placed to deliver domestic of markets because we have got
and further-flung UK regional leisure traffic than Cornwall and these new airlines in and services on
airports”. we have certainly seen a quite sale. In these really difficult times
unprecedented level of interest in of the terminal being closed and
Domestic traffic has historically getting Newquay flights”. staff being furloughed, that has
accounted for over 75% of been a massive morale-booster for
Cornwall Airport Newquay’s If “staycations” are permitted this everyone connected to the airport.
passenger numbers, with summer, while foreign holidays It gives people hope that when the
particularly strong domestic remain impossible, the airport’s time comes they will be able to get
leisure traffic through the summer passenger numbers could rebound back to work and there will be a
season. If, as most observers strongly, though Downes cautions secure long-term future for them at
expect, domestic leisure traffic is that he has learnt to take nothing the airport”.
THE AIRPORT OPERATOR SPRING 202124 Dave Lees, CEO Bristol Airport WWW.AOA.ORG.UK
25
BRISTOL AIRPORT
LAUNCHES FIGHT TO
OVERTURN COUNCIL
VOTE AGAINST
EXPANSION PLANS
Bristol Airport has launched its appeal against a
decision by North Somerset Council to reject its
expansion plans which would allow passenger
numbers to grow from 10 million to 12 million a year.
THE AIRPORT OPERATOR SPRING 202126
T The expansion would
he council’s planning officers measures to minimise the adverse
had recommended that environmental effects of an
planning permission should be additional two million passengers per make an important
contribution to
granted, but a year ago councillors year.
refused permission by 18 votes
to seven, citing the impact of the
plans on the environment and
He points to improvements that
the airport has already made and is the Government’s
neighbouring communities. planning to make in terms of its own
performance on carbon emissions,
“ levelling-up” agenda
Supporters and opponents of
the airport’s plans, which include
which have fallen by 15% over the
last four years. Part of that was due
in the South West
extensions to the terminal building, to the investment that the airport – delivering up to
including a new immigration hall, and
construction of a new multi-storey
has made in on-site generation of
solar electricity, which by 2025 5,000 new jobs in the
car park, had until 22 February to
submit their comments. A public
will account for a quarter of the
airport’s electricity consumption.
region through supply
inquiry on the airport’s appeal,
led by an independent planning
Since last year the airport has also
been offsetting all journeys to the
chain growth and
inspector, is due to start in mid-July airport made by car, delivering what increasing inbound
tourism.
and is expected to last four weeks. it believes is a European-first for
The council has said it will mount airports. Bristol Airport plans to
a “robust defence” of the decision become carbon neutral for direct
to refuse planning permission. The emissions by 2025 and a net zero
inquiry will conclude either with airport by 2050. Looking back over what he described
a decision by the inspector or a as the “snakes and ladders” of the
recommendation to the Secretary of Focussing on the economic benefits last year, Lees said that the most
State for Housing, Communities and of allowing the appeal, Lees said the important challenges that COVID-19
Local Government. expansion would make an important had presented to the business related
contribution to the Government’s to its people. Just over 30% of the
The airport’s appeal comes as “levelling-up” agenda in the South staff had been made redundant and,
passenger numbers at Bristol have West – delivering up to 5,000 new of those that remain, 60% are on
been reduced to a trickle by the jobs in the region through supply furlough, while many of those still
COVID-19 crisis, but airport CEO, chain growth and increasing inbound working are not on-site. The biggest
Dave Lees, said he is confident that tourism. There would be 700 new challenge had been “keeping people
passenger numbers will regrow again jobs at the airport itself and Lees optimistic that we can come through
after the crisis and that expansion will said that a skills and employment this, albeit as a smaller team initially”.
both create jobs and boost economic plan tied to the development of
development in the West of England. the airport would enable work Asked what he thought were the
experience, apprenticeships and job- most important steps that the
He said that opponents of the readiness support. The plan would Government could now take to
expansion plan, concerned about ensure that a good proportion of the support the recovery of airports and
carbon emissions, should consider new jobs would go to people from of aviation in general, he mentions
what would happen if the appeal was deprived areas such as south Bristol. three:
rejected. People would still travel
by air but, instead of being able to When its expansion plans were first Firstly, he said, the Government has
use their local airport, many of them submitted the airport expected a key role to play in rebuilding trust
would drive to one of the London that there could be twelve million in aviation, by communicating clearly
airports. “That is not good news, is passengers using it by 2026. Now about what the recovery would look
it?” he suggested; “it might look like the airport’s central assumption like. He said that the UK should
you have achieved a win in terms of is that it will reach twelve million be working with other countries
not allowing Bristol to grow, but the annual passengers by 2030. While to agree on rules for testing and
issue of carbon won’t go away, so there is uncertainty over the precise health passports. Most people had
you are just putting your heads in the timing, Lees says he is in no doubt spent the last twelve months either
sand”. that recovery will come “and at home or close to home and for
when it comes it will be a strong many travelling abroad would feel
Lees is also keen to emphasise that recovery”. He pointed to a recent “exciting, but strange”. They would
sustainability and greener growth survey of 7,000 people that the need clarity and certainty, which the
are at the heart of Bristol Airport’s airport had conducted, where 80% of Government should be providing.
plans and that it has proposed respondents said that they wanted to
a comprehensive package of fly within the next twelve months. Secondly, the Government should
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development funding and grant day passenger numbers in the low
The Government support to enable the aviation
sector to reach carbon neutrality
hundreds, around just 1% of 2019
levels.
should continue to more quickly. Lees said that
provide research aviation needs to “work harder and
faster” on this and Government
Despite that grim background, Lees
remains confident and optimistic
and development support for sustainable fuels,
including hydrogen and electricity,
about the airport’s future. Assuming
that recovery begins in the second
funding and grant would help considerably. He said half of this year, Lees believes
support to enable
that this could be particularly that Bristol could be back to 2019
important for the West of England, passenger levels as early as 2023 or
the aviation sector which is home to the UK’s most
significant aviation and aerospace
2024. That would put the airport
in the upper quartile of UK airport
to reach carbon cluster, including such companies
as Airbus, Rolls-Royce, and GKN.
recovery, with Lees explaining that
his confidence about the future
neutrality more Lees was encouraged by the is based on the fact that Bristol
quickly. recent news that GKN Aerospace’s
Global Technology Centre, based
concentrates on short-haul and
leisure routes and it is these two
in Bristol, will be leading on the markets which he expects to recover
UK collaboration programme, most quickly.
provide financial aid to airports and called H2GEAR, to develop aircraft
continue to do so for some time. hydrogen propulsion systems, Bristol Airport may be all but closed
That meant, he said, that the recently supported by £27m of funding from today, but Lees has his sights firmly
announced business rates relief the Aerospace Technology Institute. set on a brighter future. He believes
scheme, the Airport and Ground that will encompass improved route
Operations Support Scheme, should For now, Bristol Airport’s frequencies, helping the airport to
be extended to cover not just the commercial passenger transport gain market share back from the
current financial year, but 2021/2022 business has come to a virtual London airports. He also has some
as well. Similarly, the job retention standstill. While 8.9 million exciting aspirations for new medium-
scheme, which is due to expire at passengers passed through the haul routes to key world cities such
the end of April, should also be airport in 2019, the 2020 passenger as Dubai, Istanbul and New York.
extended. numbers, which are currently being
finalised, are likely to be less than But first COVID-19 must be brought
Thirdly, the Government should 2.5 million. The early weeks of 2021 under control and Bristol Airport
continue to provide research and have been even worse, with day-to- needs to win that planning appeal.
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