OUTER HEBRIDES CONSULTATIVE COMMITTEE

Minute of Meeting held in the Council Offices, , on Thursday 1 December 2016 at 11.00am.

PRESENT Mr John Mackay, CNES (Chairman) Mr Uisdean Robertson, CNES Mr Gordon Thomas, Lewis Access Panel Mr Iain Mackinnon, CNES Mr Duncan Smith, HIAL

IN ATTENDANCE Mr Jonathan Hinkles, Mr Roderick Mackay, HIAL Mrs Jeanette Mackay, Loganair

APOLOGIES Mr Alan Mackenzie, Visit Mr Darren Roberts, Eastern Airways Mr Gordon Jamieson, NHS Western Isles Mr Roy Bogle, Loganair Mr Kenneth Mackenzie, Hoteliers Association Mrs Rachel Mackenzie (HIE)

MINUTE

Minute of 1 The Minute of Meeting of 10 March 2016 was approved. Meeting of 10 March 2016

OUTER HEBRIDES AIR SERVICE

Inter Islands 2 The Director of Technical Services submitted a Report providing an update on the Air Services – outcomes of the Comhairle’s review of inter-island air services and the procurement Procurement exercise associated with the next contract. The Report stated that the Comhairle currently of Contract subsidised public inter-island air services between (BEN) and Stornoway (SYY) on the basis of a Public Service Obligation (PSO) at a cost £264k for 2015/16 and the current contract with Loganair was due to expire on 31 March 2017. The Report stated that the Comhairle agreed in June 2016 to undertake out a review of the PSO Air Services in advance of the procurement of the new contract from 1 April 2017 and Reference Economic Consultants had been appointed to undertake the review. The options associated with procurement principles and alternative air services had been suggested in the Review Report which was available from the Comhairle’s website.

The Report further stated that the Comhairle, on 5 October 2016, subsequently authorised the Director of Technical Services, in consultation with the Chief Executive and the Director of Finance and Corporate Resources, to undertake a tendering exercise of the Stornoway Benbecula air service and to include an option for the delivery of a five-day service; double rotations five days/week; fixed specification. It was noted that tender documents had been issued and the deadline for the submission of bids was 13 December 2016 and the Director would be reporting the outcome of the procurement exercise to the Comhairle early in February 2017 in the context of the budget-setting process for 2017/18 onwards.

It was agreed to note the Report.

Regional Air 3 The Director of Technical Services submitted a Report providing the background and an Services – Air update on the publication of the Air Services Scoping Study and a presentation to the Scoping Study Islands Transport Forum in September 2016. The Report stated that, subsequent to a request by the Minister for Transport and Islands, Transport Scotland had agreed the remit of the scoping exercise led by the three island councils in collaboration with HITRANS and ZetTrans. The full review report, which built upon previous research and available information, and proposed a more detailed and comprehensive review of Scotland’s scheduled internal Air Services was considered by the Islands Transport Forum, chaired by Humza Yousef MSP, Minister for Transport and Islands in September 2016 and the findings of the study were positively received by the Minister. An extract from the minute of the Meeting was included in the Report and the document and supporting report were available from the Transport Scotland web-page.

OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 1 DECEMBER 2016

It was further noted that a Meeting of the HITRANS Aviation Stakeholders Forum was scheduled for December 2016 which would afford an opportunity with both Transport Scotland and HIAL to discuss the terms of how the proposed actions could be taken forward.

It was agreed to note the Report.

Air Discount 4 The Director of Technical Services submitted a Report providing an update on the Scheme – development and publication of a costed and legally compliant business case to support the Business User inclusion of all business travel within the ’s Air Discount Scheme Eligibility (ADS). The Report stated that the current ADS introduced in May 2006 provided a 50% discount on the core air fare on certain eligible routes and business eligibility had been discontinued in April 2011. The Report stated that Officers from the three islands Councils, The Highland Council and Argyll and Bute Council, HITRANS and ZetTrans, in consultation with Reference Economic Consultants undertook research to support a business case for reinstatement of business user eligibility. The findings, legal aspects and potential costs associated with the reinstatement of the several elements of business user eligibility had been considered by the Islands Transport Forum, chaired by Humza Yousef MSP, Minister for Transport and Islands in September 2016.

The Report stated that one suggestion was that that grant aid could be provided to business users subject to it being consistent with the de minimus Regulation. In addition, the reinstatement of ADS for public sector business travel could be supported on the basis that aid of a social character benefits final customers and that resultant savings by these public sector bodies will be reinvested in services and therefore serve the interests of the residents of the eligible areas. The Report showed the estimated costs of reinstating eligibility for the various sectors as follows:-

 Private sector business travel £661k  Public sector business travel (exc. NHS Western Isles) £785k  Business travel for NHS staff £213k

The Report concluded that the findings of the research had been positively received by the Minister and that the challenges associated with identifying the additional funding and any further discussion on the matter would take place subsequent to the agreement of the Scottish Government budget in December 2016.

Mr Uisdean Robertson referred to discussion at a Population Seminar held in November 2016 in regard to Student Air Discounts and suggested that if there was a demand for mainland students to study in the Western Isles would it be possible, if there was a business case to support it, to extend eligibility to these students under the ADS.

It was agreed to:

(1) note the Report; and

(2) that the Director of Technical Services would contact Mr Iain MacMillan, Principal and Chief Executive, College (UHI) on the possibility of researching a business case for mainland students studying at Lews Castle College (UHI).

Eastern 5 There were no representatives from Eastern Airways present at the Meeting. A Report had Airways been submitted by Mr Darren Roberts, Communications Manager providing an update on Update the service and was presented at the Meeting by the Director of Technical Services. It was noted that the new scheduled times for the Stornoway/Aberdeen route had been introduced in April 2016 and had been welcomed. However, downturn in the oil and gas sector had impacted on the total passenger numbers on the route for the Monday to Friday services for the period January 2016 to August 2016 which showed a decrease of 11% decrease in comparison with a same period the previous year. In relation to on-time performance the Report stated that 74% of the flights for the period operated within 15 minutes of the scheduled departure time. Flight completion, including weather and technical cancellations for the same period had been 100%.

The Report informed of the seasonal reductions over Christmas to reflect demand over the holiday period and stated that there would be not scheduled flights on 26, 27 and 29 December 20156 and 2 and 3 January 2017. It was noted that the airline offered a fare deal between 19 December and 6 January. It was further noted that Ms Kay Ryan, Commercial Director had left the Company and that she be removed from the circulation list.

OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 1 DECEMBER 2016

It was agreed to note the Report.

Loganair 6 Mr Jonathan Hinkles, Managing Director and Ms Janette Mackay, Station Manager, Update Stornoway represented Loganair at the Meeting. Mr Hinkles provided the Loganair update in presentation slide format which covered the following topics:-

 Dependability  Challenges  Aviramps  Work in Progress  Passenger Numbers  Focus on three Western Isles  Proposals for Summer 2017  Manchester Link

Mr Hinkles stated that the last three months showed the lowest levels of cancellations and delays since mind-2013 and there had been a sustained improvement in punctuality for 2016. The challenges related to adverse weather in August resulting in a high level of cancellations and the impact of special procedures for Exercise Joint Warrior/Unmanned Warrior in October and, more recently, Twin Otter operations in freezing fog and precipitation which hopefully would be addressed by the introduction of a different de-icing fluid. Mr Hinkles highlighted the increased level of delays due to ground handling and facilities for customers with reduced mobility and that Aviramps, a board ramp solution instead of airstair had been successfully trialled at . Mr Hinkles confirmed that the equipment was manufactured in the UK and the intention was to rollout throughout the Highlands and Islands airports. Mr Hinkles further indicated that he was pursuing a lift facility at Airport for Gates 1, 2, and 3 and the Committee raised the issue of outdoor shelter at the doorways for passengers with mobility issues.

The presentation highlighted the customer operations function and that a new customer care capability had been introduced at Glasgow in the form of catering at departure gates, availability of mobile phone chargers and improved crew communication with passengers experiencing delays. Mr Hinkles acknowledged that there was further work to do around customer communication and Loganair were currently trialling a text notification system to update customers voluntarily “opting in” and expected this to be fully operational before Summer 2017.

In respect of the three islands airports the following points were highlighted:-

Stornoway  Flights to Glasgow were above 6,000 customers in July and October, boosted by Royal National Mod in October by 8% and the provision of a special Islay-Stornoway charter  down 14% in first 7 months, impacted by improved ferry link, however a reversed trend in August, September and October showing an increase of 3%  November passenger numbers steady and the forward bookings were strong for Glasgow  Modest growth on inter-isle Stornoway/Benbecula route

The Committee highlighted the return of the Stornoway/Benbecula flight on Friday afternoons providing enhanced connectivity within the Western Isles and the restoration of a Friday link between Benbecula and Inverness. However, it was suggested that there should be more public awareness on these additional rotations.

Benbecula  August figures were 4% up versus last year and 17% growth in October  Impacts of Exercise Joint Warrior/Unmanned Warrior  Affected by adverse weather but confident for Summer 2017 growth  Small dip in November, but more seats and more bookings in December  SAAB 2000 deployed to meet demand

Barra  Disruption in July/August due to adverse weather  Strong growth in shoulder seasons due to increased seat capacity  Figures up April 64%, May 25%, October 42%, and November 24%  £79 Adventure Day offer popular

OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 1 DECEMBER 2016

Proposals for Summer 2017

Mr Hinkles informed the Committee that from summer 2017 it was proposed that the 50- seat SAAB 2000 aircraft would take over three of the four weekday services between Glasgow and Stornoway from March 2017. The new weekday schedule would also include more convenient afternoon flight times and the larger aircraft would also operate up to three Saturday flights and both Sunday roundtrips next summer and be deployed to Benbecula on a regular basis for the first time on the single Saturday and Sunday flights to and from Glasgow.

In regard to the Stornoway-Inverness service Mr Hinkles stated there would be a dedicated flight at peak times each weekday morning and Edinburgh would have non-stop flights from Stornoway on Monday to Thursday mornings and on Thursday and Friday evenings, together with a new later evening non-stop return flight from Edinburgh to Stornoway at 18:00 Sunday to Friday. The new timetable, which also included Saturday and Sunday flights, had been structured to ensure that the route remained commercially viable despite extra charges to airlines being introduced by Edinburgh Airport from April 2017. He further confirmed that Loganair would continue to work with Transport Scotland for extra peak summer flights between June and August 2017.

Mr Hinkles spoke about the introduction of new same-plane services from Stornoway to Manchester twice daily each weekday in either direction (with additional services on Sundays) with a short stop at Glasgow or Inverness en route to Manchester. Fares from Stornoway to Manchester for Air Discount Scheme (ADS) members would start from just £47.38 one-way including all taxes and charges plus a free checked baggage allowance. Mr Hinkles confirmed that all Summer 2017 flights had been available for booking via www..com from Wednesday 23 November 2016.

These proposals and the introduction of the Manchester flight were welcomed by the Committee who further highlighted to Mr Hinkles the importance of marketing and promotion of all the flights and services offered by Loganair.

Franchise Opportunities

Mr Hinkles highlighted the opportunities offered by Loganair flying under its own name and that the 600 staff at Loganair were committed and looking forward to the future. Mr Hinkles gave assurances fare increases would be kept to a minimum and the concessions for children, students and check-through baggage would continue as would the Code Share Agreement with BA. Customers with frequent flyers and Avios Points would also be kept informed in order to redeem their points. Mr Hinkles stated that the immediate challenge was the reservation system and the functionality of ADS. It was anticipated that the new system would be in place from March 2017 for bookings from September 2017.

The Committee raised the issue of NHS Western Isles patient travel and seat bookings for patients and suggested that a short-life working group would be beneficial to focus on patient travel and accessibility.

It was agreed:

(1) to note the Report;

(2) that Mr Jonathan Hinkles liaise with Visit-Scotland and the Director of Technical Services to raise local public awareness of the services, offers and rotations offered by Loganair; and

(3) to establish a short-life officer working group to focus on patient travel and accessibility

Stornoway 7 Mr Duncan Smith represented HIAL at the Meeting and submitted an update Report Airport providing passenger movement figures from 2015/16 which showed a total of 129,609,051 passengers through , a drop of 3,939 passengers (2.9%) on the previous year. In the same period, aircraft movements were down by 94, a drop of 0.8%. The statistics for the current financial year to 31 October 2016 showed passenger movements of 81,375 (down by 21, 10%) and total aircraft movements were 6,478 (down 516, 7.4%) on the same period in the previous year. The figures had been impacted by the downturn in oil and gas and the completion of Bristow’s training.

In regard to capital works, the Report confirmed that a new Ambulift had been purchased and was in operation and work was ongoing with the replacement of the HV cabling at the Airport. It was proposed that the resurfacing of the Taxiways would be undertaken in in 2017/18. The Director of Technical Services requested that he be kept informed of the

OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 1 DECEMBER 2016

timeline of the resurfacing works as there may be an opportunity to tie in work with Comhairle roads resurfacing work.

In relation to third parties, the Report confirmed in April 2016 there had been additional aircraft based in Stornoway, in support of the biannual Military Exercise and an exercise in October had to be cancelled due to a lack of accommodation due to the national Mod. The Report indicated, at the time of writing, that Typhoon testing was due to commence following previous from testing in the Summer and November 2015. The Airport had also been used in early November by Airbus for aircraft crosswind testing.

Mr Duncan Smith highlighted Wi-Fi issues at the airport which should be rectified by the installation of a new cabinet by the end of December 2016. He further stated that workstation and charging points would be installed for customer use.

It was agreed:

(1) to note the Report;

(2) that Mr Duncan Smith would make enquiries regarding 3G connectivity at Stornoway Airport: and

(3) that Mr Duncan Smith would make enquiries regarding the availability of the Airport Meeting Room to passengers.

Benbecula 8 Mr Roddy Mackay represented HIAL at the Meeting and provided an update on Benbecula and and Barra Airports. Airports The Report provided details of passenger figures and aircraft movements for Benbecula Airport. The total number of passengers and aircraft movements for Benbecula for the year 2014/15 was 33,938 and 3566 respectively. In comparison to the same period to October 2015, the figures in October 2016 showed:-

 Passenger numbers were up 12.3%  Running passenger total was down 0.22%  Aircraft movements were up 15.8%  Running Aircraft movement’s was up 0.3%

Further updates were provided as follows:-

• a temporary hanger erected in support of the unmanned warrior exercise for the MOD and QinetiQ would be removed in January 2017; • a temporary RAF radar was in place in the airfield to allow upgrading of the RAF radar • replacement of the Emergency RVP, security rest room and ATC voice recorder • increase in locally staff complement in Air Traffic control currently undertaking training • airfield lighting had been replaced with energy efficient LED fittings. • survey work completed for the next phase of coastal protection works 2017. • SAAB 2000 Aircraft expected to cover Saturday and Sunday in the summer schedule. • a replacement X ray machine would be installed in the baggage hall early 2017.

Mr Mackay stated that HIAL were aware of issues with car parking spaces at the airport due to the care hire company and these would be addressed.

Barra Airport The Report stated that passenger numbers for 2016 to end of October were 8,801 up 940 (12%) on the previous year. In August this year celebrated its 80th year in operation and Loganair and HIAL were currently offering a “day return” trip Glasgow-Barra for £79 due to popularity from earlier this year. HIAL were recurrently drawing up plans to revamp/extend the terminal building capacity due to commence at the end of 2017. Mr Mackay stated that the cafeteria franchise was doing very well and also popular with non- travelling locals.

It was agreed to note the update.

Date of Next 9 It was agreed to schedule the next Meeting of the Committee in late May/early June 2017. Meeting