OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE

Minute of Meeting held in the Council Offices, , on Thursday 17 August 2017 at 11.00am.

PRESENT Mr Uisdean Robertson, CNES (Chairman) Mr, Kenneth Macleod, CNES Mr Darren Roberts, Eastern Airways Mr Iain Mackinnon, CNES Mr Mathew Herzberg, Eastern Airways Mr Alan Mackenzie, Visit Mr Vincent Hodder, Mr Jonathan Hinkles, Ms Liz Sheridan, Flybe Mrs Jeanette Mackay, Loganair Mr David Paterson, Flybe

IN ATTENDANCE Mr Stephen Hendrick, HIAL Mr Lachlan Macpherson, NHS Western Isles Mr Colin G. Morrison, CNES Mr David Macleod, CNES

APOLOGIES Mr Duncan Smith, HIAL Mr Kenneth Mackenzie, Hoteliers Association Mr Roderick Mackay, HIAL Mr Iain Fordham, OHTIA Mr Gordon Jamieson, NHS Western Isles

Constitution

Appointment 1 It was agreed to appoint Mr Uisdean Robertson Chairman of the Airport of Chairman Consultative Committee.

The Chairman welcomed members to the first Meeting of the Committee under the new Comhairle and proceeded with introductions.

MINUTE

Minute of 2 The Minute of Meeting of 1 December 2016 was approved. Meeting of 1 December Under consideration of the Minute, the Director of Technical Service provided updates in 2016 relation to the following items:-

Item 2 – Inter Islands Air Services – Procurement of Contract The Director confirmed that the PSO had been awarded to Loganair for a period of four years from 1 April 2017. Subsequent to the introduction of the Summer 2017 timetable, Loganair had proposed amendments to the Stornoway Benbecula air service. These changes would provide improved connections from Edinburgh and to Benbecula and would facilitate NHS consultants travelling to Benbecula. It would also reinstate the connection to the 0700hr ferry from Barra on Tuesdays, Wednesdays and Thursdays. The changes, likely to agreed by the Comhairle, would be effective from 4 September 2017.

Item 3 – Regional Air Services – Air Scoping Study The Director of Technical Services informed the Committee that arising from a meeting of the Islands Transport Forum on 21 June 2017 concerns had been raised regarding the scope of the review and also the level of engagement by HIAL and that the Mr Humza Yousaf, Minister for Transport and the Islands would be raising them with HIAL directly.

Item 4 – Air Discount Scheme The Director confirmed that HITRANS had considered a Report on 23 June 2017 detailing an appraisal of extending student eligibility within the Air Discount Scheme and it had been agreed that a business case be submitted for future consideration. In regard to reinstating eligibility for business users, the Director confirmed that the Minister for Transport and the Islands had accepted the legal argument for reinstatement but it been had ruled out due to affordability.

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Item 6 – Loganair Update In regard to recommendation (3) the Director stated that the establishment of a short-life Working Group to focus on patient travel had not materialised due to non-engagement by NHS Western Isles.

It was agreed that Mr Lachlan Macpherson, representing NHS Western Isles at the Meeting, would address the issue of non-representation with Mr Gordon Jamieson, Chief Executive NHS Western Isles.

OUTER HEBRIDES AIR SERVICE

Eastern 3 In reference to Item 5 of the Minute of Meeting of 1 December 2016, Mr Darren Roberts, Airways Communications Manager and Mr Mathew Herzberg Head of Commercial, represented Update Eastern Airways at the Meeting. Mr Roberts submitted a Report providing an update on the Stornoway-Aberdeen route which continued to show a slight decrease in passenger numbers compared to the equivalent seven months in 2016 as a result of the downturn in the oil and gas industry and offset by marginal changes on other Stornoway schedules. The Report showed that the total passenger numbers on the route for the period January to July 2017 showed a decrease of 5.8% in comparison within the same period in 2016. In relation to on-time performance (OTP), 87% of all flights had operated within 15 minutes of the scheduled departure time (showing an increase of 32% over the summer months) and flight completion including weather and technical cancellations had been 99%.

The Report further stated that Eastern Airways had entered into an alliance with Flybe and from 29 October 2017 the Eastern Airways route network would become part of a five year franchise agreement, operating with BE flight codes and website bookings which would be available at Flybe.com. This would include the Stornoway – Aberdeen route, offering greater connections via Aberdeen onto the Flybe network. As a separate part of the alliance, from 1 September 2017 Eastern Airways would provide Flybe with four aircraft enabling the continuation of Flybe branded services from a number of Scottish airports. This included the Glasgow – Stornoway service, providing onward connectivity through its expansive Glasgow network and would retain existing connections to key UK hubs such as Manchester, Birmingham, Belfast City and Southampton.

It was agreed to note the Report.

Flybe Update 4 Mr Vincent Hodder, Chief Revenue Officer, Ms Liz Sheridan, PR Manager, and Mr David Report Paterson, Head of Alliances, represented Flybe at the Meeting. Mr Hodder provided the Flybe update in presentation slide format which covered the following topics:-

1 Introduction 2 connecting people and businesses  Flybe Facts  the UK’s Leading Regional Airline  empowering regional communities  Flybe aviation services  training  fleet 3 Commitment to Scotland  capacity/growth  codeshare and connectivity  new routes to the world 4 Enhanced Services for the Islands  six new routes  competition  frequent traveller programme and credit card  proposals for Stornoway

As indicated in the presentation, Flybe had 58% capacity growth in Scotland over a 20 year period from 2007 and operated 63 routes connecting with 20 airports beyond Scotland. The Eastern Airways network would be incorporated under a Flybe franchise operating new joint routes from 1 September 2017 concurrently with plans to put the existing Eastern network on sale as part operation. The combination of both Flybe and Eastern Airways networks would provide more choice and more options for customers.

The introduction of new six routes for Scotland from the Flybe/Eastern Airways alliance would introduce an Embraer E-170 jet service (76 seats) between Sumburgh and Aberdeen and Edinburgh and Glasgow due to commence on 1 September 2017. Flybe and Eastern Airways would connect Stornoway with Glasgow, flying up to three times daily providing morning, afternoon and evening departures from both destinations. OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 17 AUGUST 2017

It was proposed that the Flybe/Eastern relationship would provide true competition on intra- Scotland routes, and with Flybe’s extensive European network and codeshare relationships provide meaningful connectivity beyond-Scotland. Flybe had protected connectivity to at least 18 destinations across the UK and Europe, which would continue to be served from the Highlands and Islands. It was anticipated that increased capacity should lead to lower fares for customers as both carriers compete for market share and by entering these markets as a competitor.

It was confirmed that Avios partnership launched in October 2014 would continue. The “Spend&Fly”, loyalty programme exclusive to Flybe credit card holders allowed customers to earn flights when they spend on their Flybe credit card.

Mr Hodder provided an update from the Public Meeting held the previous evening which had been well attended and Flybe had appreciated the suggestions and feedback received. The issues raised included continuity of service, requests for the introduction of a Compassionate Policy and to continue to enhance the service to meet the needs of the community.

The Committee were afforded the opportunity to ask questions. Mr Hodder confirmed when asked that the proposed aircraft was not suitable for non-mobile passengers but that Flybe would look at alternatives and that they would also consider discounts for student travel.

The Chairman thanked Flybe representatives for their attendance and presentation to the Committee.

It was agreed to note the Report.

Loganair 5 In reference to Item 6 of the Minute of Meeting of 1 December 2016, Mr Jonathan Hinkles, Update Managing Director and Mrs Jeanette Mackay, Station Manager Stornoway, represented Report Loganair at the Meeting. Mr Hinkles provided the Loganair update in presentation slide format which covered the following topics:-

 Customer Numbers  Dependability  Barra, Benbecula and Stornoway Routes  Flying Solo and Building Scotland’s Airline  Partnerships and Connectivity  Customer Focus  Mobility – introduction of Aviramp (1st quarter 2018)

The presentation showed that customer numbers on all the routes for the period January to July 2017 indicated a percentage change for the same period in 2016. The flight completion rate was 99.2%, the same as 2016 and on-time performance (OTP) showed continued improvements with 83.5% of flights operating with 15 minutes of scheduled departure compared to 79.3% in 2016. Most routes showed improvements except Inverness-Stornoway-Benbecula impacted by the afternoon flight(s) on the Inverness- Manchester route using the same aircraft. The Manchester flight had now been removed from the aircraft’s daily schedule to protect the afternoon OTP and there had also been issues with taxiway works and ground handling at Edinburgh causing congestion.

In respect of the three islands airports the following updates were provided:-

Barra  On track for busiest ever year on the route, 24 extra Glasgow flights added June to August 2017 in conjunction with Transport Scotland  Proposals for increased available in 2018, included a feasibility study for aviation fuel at Barra, potential additional Sunday flight and other extras subject to tide  Reintroduce the ‘Sightseer’ fare this winter  Targeting new Twin Otter de-icing solution for winter

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OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 17 AUGUST 2017

Benbecula  Larger aircraft on Saturday and Sunday Glasgow route  Slow growth May/June 2017 and good performance in July (busiest ever month)  Announcement of new Edinburgh-Benbecula service from 5 September 2018 operating  Tuesday/Wednesday/Thursday same-plane service, 1-stop at Stornoway  07:20 from Edinburgh, arrives Benbecula 09:25  09:55 from Benbecula, arrives Edinburgh 12:00  evening Benbecula-Edinburgh connection via Stornoway  1-stop flights from £41.73 including ADS discount and all taxes  Morning Inverness-Benbecula connection restored  07:20 from Inverness, arrives Benbecula 09:25 Tuesday/Wednesday/Thursday  afternoon 1-stop service both ways remains in place

Stornoway  Busiest ever month in July (11,679 customers) due to increased capacity and beating previous record set in October 2016 for Royal National Mod  Increased Edinburgh service from 4 September 2018  restored from 8 to 11 roundtrips per week  morning departure from Edinburgh re-introduced Monday-Thursday (departs Edinburgh 07:20, arrives Stornoway 08:30)  Small timing changes on Glasgow-Stornoway  Two of four departures are 1-stop services to Manchester  Saab 2000 aircraft retained on peak-time flights

Mr Hinkles further highlighted Loganair’s own-brand operations for 1 September 2017 retaining the existing Loganair route network which operated 36 scheduled routes, predominantly in Scotland from Glasgow, Edinburgh, Aberdeen, Inverness Kirkwall and Norwich with 750,000 scheduled passengers per year. The new reservation system website and call centre had gone live on 22 March 2017 and a major re-branding programmer was underway. A total of 10 aircraft would be rebranded by the end of the month and a dedicated team of 165 staff operated in the Highlands and Islands. A new frequent flyer programmer had also been announced ‘Clan Loganair’.

The presentation further highlighted the 25 year BA partnership operating on 21 Loganair routes including an Inverness-Heathrow connection and ADS was automatically available on the first leg of flights booked through the BA website at be http://www.ba.com/ads. The inclusion of Stornoway-Manchester would facilitate connections to oneWorld airlines at Manchester including British Airways, Qatar Airways, American Airlines, Aer Lingus. Mr Hinkles highlighted a loss of connectivity for Western Isles as a result of the new Flybe/Eastern partnership and indicated that Loganair remained open to discussions to protect connectivity with Flybe.

The Committee were afforded the opportunity to ask questions.

Mr Alan Mackenzie, representing Visit Scotland asked about connectivity on the Edinburgh route and if there were any proposals to enable a day return flying from Stornoway to Edinburgh. Mr Hinkles stated that with the continued uncertainty at he could not make any long-term commitment.

The Director of Technical Services addressed both presentations and cautiously welcomed both airlines proposals but highlighted concerns for the impact at Stornoway Airport in regard to capacity and future sustainability of the service and sought assurance from the operators for the long term in maintaining these ‘lifeline’ services to the islands. The Director confirmed that concerns had been addressed in writing to the Minister for Transport and the Islands who had responsibility for government owned HIAL which operated the airports in the north.

Mr Hinkles and Mr Hodder informed the Committee that an agreement in principle had been signed between both airlines confirming that Loganair would undertake all grounds handling operations on behalf of Flybe. The Committee welcomed this and when questioned about co-ordinating on a commercial basis both operators clarified the restrictions imposed under European competition law which made that process very difficult.

The Chairman, on behalf of the Committee hoped that the airlines would continue to engage in positive and constructive communication in the coming months, particularly in relation to connectivity and making the most of the additional capacity on the additional rotations from Glasgow to Stornoway.

It was agreed to note the Report.

OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 17 AUGUST 2017

Stornoway 6 In reference to Item 7 of the Minute of Meeting of 1 December 2016, Mr Steven Hendrick, Airport Senior Air Traffic Control Officer (SATCO), Stornoway Airport represented HIAL at the Meeting and presented an update Report submitted by Mr Duncan Smith, Stornoway Airport Manager. The Report provided passenger movement figures for 2016/17 totalling 130,905, an increase of 1% on the previous year. Passenger figures had increased throughout the year after an early dip and the positive trend continued up to the end of March 2017. Aircraft movement figures for the same period totalled 10,694, a decrease of 3.6% attributed by a reduction in Bristow’s training flights and general aviation movements. The Report stated that the statistics for the current financial year to 31 July 2017 showed passenger movements of 46,840, an increase of 5.4% for the same period last year and aircraft movement figures of 3,576 a decrease of 4% due to reduced military movements.

The Report highlighted, as raised in the previous items, the additional flights available to Glasgow from Friday 1 September 2017. Three weekday flights and one on Saturday and Sunday as part of the Flybe/Eastern Airways franchise agreement and from that date Loganair would be operating under their own brand.

In regard to capital works, the following projects were planned for the current financial year:-

 Taxiway resurfacing project (cost £1.9m)  Met weather equipment replacement (cost £0.2m) – all 11 Airports centralised system  HV work round the airfield (£0.65m) – nearing completion  Ancillary back-up Vehicle replacements (£0.04m)

Mr Hendrick informed the Committee that the taxiway works would be undertaken by Breedon commencing Monday 21 August to 4 October 2017, comprising of five weeks day time works and apron works during the night. It was proposed that each phase would be completed in its entirety and gave assurances that customer safety and convenience would be a priority and contingency arrangements would be put in place providing buses for passengers if required. Mr Hendrick stressed that co-operation and communication with the airlines would be crucial over this period.

In relation to third parties, the Report confirmed that Bristows proposed to upgrade their section of the Gaydon Hangar and the next bi-annual Military exercise was scheduled for October 2017. The Report further highlighted community engagement in relation to the annual charity drag race held in June 2017 and the car rally in July 2017 and involvement with Autistic and Dementia groups in the form of awareness workshops held on-site.

It was further noted that that fibre optic cable work was ongoing to improve connectivity at Stornoway Airport and that an Airport Meeting Room was available for passengers booked through the Information Desk (01851 702256).

It was agreed to note the Report.

Benbecula 7 This item was deferred as Mr Roddy Mackay representing HIAL was unable to attend due and Barra to the death of his father and the Chairman, on behalf of the Committee, extended Airports condolences to Mr Mackay for his loss.

Date of Next 9 The Chairman thanked the operators and members for their attendance and for a very Meeting positive meeting.

It was agreed that the next Meeting of the Committee would be Thursday 9 November 2017 at 11.00am.

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