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Filton Airfield Aviation Options Report Bae Systems September 2011 Filton Airfield Aviation Options Report Bae Systems September 2011 FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 © Terence O’Rourke Ltd 2011. All rights reserved. No part of this document may be reproduced in any form or stored in a retrieval system without the prior written consent of the copyright holder. All figures (unless otherwise stated) © Terence O’Rourke Ltd 2011. Based upon the 2011 Ordnance Survey mapping with the permission of the Ordnance Survey on behalf of Her Majesty’s Stationery Office © Crown Copyright Terence O’Rourke Ltd Licence number AL100017826. FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 CONTENTS 1 NON-TEchnICAL SUMMARY 2 InTRODUCTIon 3 ThE WEST OF EnGLAND AEROSPACE INDUSTRY 4 CURRENT USE 5 REASONS FOR REVIEW 6 AlTERNATIVE AVIATION OPTIONS EVALUATED 7 FUTURE PROSPECTS OF THE WEST OF EnGLAND AEROSPACE INDUSTRY AND REDEVEloPMENT OPPORTUNITIES 8 ConclUSIon FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 4 FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 NON-TECHNICAL 01 SUMMARY 1.1 In April 2011, BAE Systems issued on Filton Airfield in June 2011 and held a a statement on the forthcoming closure of public consultation event inviting comment the runway at Filton Airfield. The decision on how it proposed to handle the airfield by BAE Systems to close the airfield has within the core strategy. The core strategy not been made lightly, but has been taken has been delayed to allow the council following a comprehensive review over a to undertake further work on green belt five plus year period and in consultation review, housing land requirements and with leading members of the aerospace Filton Airfield in line with the Examination industry at Filton. In reaching its decision in Public (EiP) Inspector’s comments. BAE BAE Systems has continued to examine Systems is currently working to provide an the need for runway retention and other evidence base to the council to inform its aviation based options that could provide decision making process and the progress the necessary level of income to keep of the core strategy. Public consultation on the runway operational. It has robustly the core strategy changes will be held in explored all options, sought the advice December 2011 – January 2012. of professional consultants and acted in a responsible manner in reaching its decision. WHAT HAS PROMPTED BAE SYSTEMS TO REVIEW THE OPERATION OF THE AIRFIELD? 1.2 Filton Airfield is privately owned and operated by BAE Systems. With the A. The airfield is unviable – exception of the listed hangars the airfield because of a decrease in users, is not protected in any way. There are no maintenance flights, and other legal covenants in place that prevent the aircraft movements airfield from closing, neither is an Act of Parliament required. The airfield is a private 1.5 Over the past decade, aircraft land asset. movements at Filton have decreased by over 27%. This has largely been driven PLANNING CONTEXT by a reduction in demand, maintenance flights and a simultaneous decrease in the 1.3 The planning framework for future number of airfield users. development in South Gloucestershire is currently being established by the council 1.6 The maintenance sector, which through the emerging core strategy. The previously generated good income from core strategy is an important document landing fees, is no longer operational as it sets out the council’s spatial vision at Filton because of a lack of demand. and objectives, core planning policies and Historically BAE Systems operated a proposals up to 2026. This document is maintenance business which included at an advanced stage and was submitted VC10’s and conversion of A300 aircraft to the Secretary of State on the 24 March to freighters. This finished in 2002. By 2011 for independent examination. 2009 aircraft movements relating to the maintenance businesses of MK Airlines 1.4 Whilst the unfortunate timing of the and Air Livery had significantly reduced. closure announcement is acknowledged, MK Airlines went into liquidation in 2010 the future of the airfield site is a matter and Air Livery left Filton in 2009 based that the core strategy will need to address. on an independent commercial decision. The council produced a position statement The benefits of basing their business at a commercial airfield (Manchester Airport), 5 FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 eliminating the need for ‘dead leg’ flights, the runway is no longer an essential was a significant factor in Air Livery’s requirement. Airbus currently only operates decision to leave the airfield and has been a limited number of staff and equipment a key constraint in attracting new users. movements associated with its existing business operations. The staff movements 1.7 Rolls-Royce has through are chiefly limited to an air bridge service independent review and because of to transport Airbus employees between changes in its own business operation, Filton, Chester (Broughton) and Toulouse. made decisions to cease all use of the Currently these flights are as shown in the airfield. With the exception of the heritage table. trust centre, Rolls-Royce has not used the airfield for commercial operations since the Flights from Broughton Toulouse early 1990s. The runway no longer forms Filton to: an integral part of its business operations, Monday 1 3 and its current and future business plans Tuesday 2 2 do not require the use of the runway to Wednesday 3 2 successfully operate and grow. In addition, Thursday 3 2 PrivatAir, Eastern Airways, MNG, Titan, Friday 1 1 Highland Airways and Universal have all ceased aircraft movements at Filton. 1.11 BAE Systems also currently 1.8 Royal Mail has never used the operates a shuttle from Filton to Barrow runway on a permanent basis. It was comprising two flights a day on Monday accommodated on a temporary basis and Wednesday, three flights on Tuesday at Filton for a number of months in and Thursday and one on a Friday. The 1994/1995 and again in 2007/2008 whilst additional BAE Systems corporate air runway maintenance was ongoing at travel shuttle ceased in 2009. Bristol Airport. Operations were returned to Bristol Airport. Royal Mail flights from 1.12 The annual operating costs of Bristol Airport have since ceased. The Filton Airfield are primarily fixed costs. Filton runway has never formed a integral Users of the airfield contribute, through part of its business operation, and its landing fees and lease agreements, current and future business plans do not although their contribution is minimal require the use of the runway. compared to that of Airbus. Together these income streams do not cover the 1.9 Whilst the aviation school and club total operating costs of the runway and the based at the runway continue to use the airfield has been making a significant loss airfield for training / private flights and there over the last 10 years. are some limited private business flights, their contribution through landing fees and 1.13 BAE Systems is a public limited lease agreements to the operational costs company accountable to its shareholders of the airfield is minimal. and sustaining this poor financial position is unviable and unacceptable to the 1.10 Airbus is now the only significant company. industrial user of the airfield. Aircraft movements by Airbus have decreased over the last decade and its business operation has changed, meaning 6 FILTON AIRFIELD AVIATION OPTIONS REPORT BAE SYSTEMS SEPTEMBER 2011 B. The runway no longer being worked on for alternative ways to occupies an essential role in the move Airbus people and parts. The future business operations of its key of the Airfield beyond 2012 is entirely at users the discretion of the freehold owner, BAE Systems. 1.14 BAE Systems fully supports the Filton aerospace cluster as a world Airbus is fully committed to Filton – this centre of excellence for the aerospace is the case now and will remain the case industry, supporting high value, skilled as clearly demonstrated by the recent engineering and manufacturing jobs. decision to build a multi million pound Airbus is a recognised world leader within business park at Filton and the continued the aerospace cluster and BAE Systems investment in state of the art facilities has given assurances that no decision such as the A350XWB Landing Gear Test regarding the runway would impact Facility. significantly on the Airbus business. Airbus is putting into place a range of 1.15 Both companies have regularly mitigation measures to ensure that the discussed the future of the runway in closure of the airfield does not affect its recent years and, having agreed that it was business in any significant way.” not financially viable to continue operating the airfield, announced in April 2011 that C. Inability to attract sufficient the runway will close. This was a mutual new business decision by the owner/landlord BAE Systems and the prime user and customer 1.18 In the face of continued decline in Airbus. airfield business (i.e. aircraft movements) from existing customers and users, BAE 1.16 Sufficient time has been allowed Systems has spent 10 years working to for Airbus to prepare for the closure, stem this decline by generating more ensuring a smooth transition as it puts in business from existing users and seeking place a range of mitigation measures to to attract new customers to offset a ensure its business is not affected in any greater proportion of airfield operating significant way. costs and increase its viability. 1.17 Airbus has repeatedly re-stated this 1.19 BAE Systems has been in position publicly. This is reiterated again in conversation with a variety of operators, its statement below: particularly aircraft maintenance/conversion operators to try to attract business to “BAE Systems, as the landlord of Filton Filton.
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