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OUR AIRPORTS LOCAL ACCESS – GLOBAL OUTLOOK Annual Report & Group Financial Statements 2010/11

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OUR AIRPORTS LOCAL ACCESS – GLOBAL OUTLOOK Annual Report & Group Financial Statements 2010/11 OUR AIRPORTS LOCAL ACCESS – GLOBAL OUTLOOK Annual Report & Group Financial Statements 2010/11 SG/2011/146 1 CONTENTS 2 WHO WE ARE 12 DUNDEE 4 ANNUAL TRAFFIC 13 INVERNESS STATISTICS 14 KIRKWALL 5 BOARD OF DIRECTORS 15 STORNOWAY 6 CHAIRMAN’S STATEMENT 16 SUMBURGH 8 MANAGING DIRECTOR’S 17 WICK STATEMENT 18 OUR GROUP FINANCIAL 10 YOUR AIRPORTS STATEMENTS BARRA, BENBECULA XX TARGETS FOR 11 CAMPBELTOWN, DEVELOPMENT ISLAY & TIREE & PERFORMANCE INDICATORS 2 3 Our core activities are: Supporting Scotland’s HIAL was incorporated in Edinburgh WHO WE ARE • Providing airports which meet regulatory sustainable development on 4 March 1986 as a private limited company. On 1 April 1995, ownership standards and support essential We work closely with our customers and of the company transferred from the UK transport connectivity. Highlands and Islands Airports Ltd (HIAL) is stakeholders to ensure that our strategic Civil Aviation Authority to the Secretary a private limited company wholly owned by • Maintaining and developing airport goals support sustainable development of State for Scotland and subsequently infrastructure and services. within the communities we serve and to the Scottish Ministers. Scottish Ministers and is responsible for the are aligned with the policy objectives HIAL receives subsidies from the management and operation of 11 airports. • Working with airlines and stakeholders of the Scottish Government. to maintain and develop scheduled, Scottish Government in accordance with Section 34 of the Civil Aviation charter and freight air services. Wealthier and Fairer – our airports Our airports are located at: Barra; provide access to air transport Act 1982 and is sponsored by the Benbecula; Campbeltown; Dundee; Our mission: connections which support sustainable Transport Scotland - Aviation, Maritime, Frieght and Canals Sumburgh: Inverness; Islay; Kirkwall; Stornoway; To provide and operate safe, secure economic growth and social inclusion. 152,695 and efficient airports which support Directorate. Healthier – our airports facilitate Sumburgh; Tiree; and Wick. the communities we serve. The 2010/11 HIAL Annual Report access to healthcare services for Kirkwall: and Group Financial Statements Our goal is to: remoter communities. 144,369 Working with stakeholders, we are have been submitted to the • Provide airports that enable air Scottish Ministers. committed to supporting the essential Safer and Stronger – air links enhance Wick: transport to fulfil its essential role the attractiveness of the communities Stornoway: 25,006 socio-economic role of aviation in Scotland in Scotland’s diverse regions. we serve as places in which to live, 117,439 through the maintenance and development • Work with stakeholders to develop work and invest. of our airports. sustainable air connectivity that Benbecula: Smarter – air links provide access supports socio-economic development 33,050 to education, employment, skills and Inverness: in Scotland. resources which contribute to the 536,471 Barra: • Advise Scottish Ministers on future socio-economic viability of more 10,359 developments and resource allocation remote communities. through robust strategic planning and Greener – reducing the environmental Tiree: effective collaboration with airport impact of providing airports through 8,174 Dundee: users and stakeholders. resource efficiency contributes towards 70,089 a greener Scotland. Islay: 26,224 Campbeltown: 8,961 4 ANNUAL TRAFFIC STATISTICS 5 FOR THE YEAR ENDED 20 10/11 PASSENGERS AND FREIGHT FOR YEAR ENDED 31 MARCH 2011 PASSENGERS FREIGHT TOTAL Terminal Transit Tonnes BARRA 10,359 -0% 10,359 -0% 0 -100% 29 +0% BENBECULA 33,050 -1% 32,497 -0% 553 -6% 466 -12% CAMPBELTOWN 8,961 -3% 8,961 -3% 0 -100% 1 +0% INVERNESS 536,471 -8% 534,185 -8% 2,286 -67% 1,833 -35% ISLAY 26,224 -3% 25,900 -4% 324 +80% 287 -7% KIRKWALL 144,369 -6% 130,034 -7% 14,335 +10% 132 -83% STORNOWAY 117,439 -4% 115,346 -5% 2,093 +102% 1,659 +2% SUMBURGH 152,695 +7% 148,759 +7% 3,936 -6% 979 -1% TIREE 8,174 -5% 7,974 -4% 200 -11% 49 -6% WICK 25,006 -0% 23,530 +7% 1,476 -50% 1 -50% TOTAL 1,062,748 -5% 1,037,545 -5% 25,203 -14% 5,436 -24% DUNDEE 70,089 -7% TOTAL 1,132,837 AIRCRAFT MOVEMENTS FOR YEAR ENDED 31 MARCH 2011 BOARD OF DIRECTORS TOTAL Public Transport Positioning Other* Military Fixed Wing Rotary HIAL’s Board of Directors is accountable to the Scottish BOARD OF DIRECTORS AND MANAGEMENT TEAM BARRA 1,246 -9% 1,176 -4% 0 +0% 1 +1% 69 -54% 0 +0% Ministers. The Board operates under its Members Code of Back Row (L-R) BENBECULA 4,284 -9% 2,805 -10% 418 -23% 254 +11% 692 -13% 115 +400% Conduct, which is derived from the Model Code produced Andrew Castell CAMPBELTOWN 2,350 +0% 1,207 -8% 54 -35% 1 -67% 228 -47% 860 +64% by the Standards Commission of Scotland, together with Non-Executive Director INVERNESS 28,103 -3% 11,516 -21% 1,533 -14% 1,313 -26% 13,668 +27% 73 -46% recognition of other published corporate governance guidelines. Gillian Haston ISLAY 2,853 +9% 1,758 +15% 156 +16% 23 -26% 774 -3% 142 +4% Head of HR & Organisational Development KIRKWALL 14,338 -9% 11,322 -2% 367 -1% 359 +1% 2,276 -33% 14 -70% Inglis Lyon STORNOWAY 11,012 -4% 6,841 -13% 283 +4% 433 +33% 3,312 +12% 143 +123% The Board is responsible for determining The Board is composed of six members. Managing Director SUMBURGH 11,595 -1% 7,008 +6% 913 +29% 730 -37% 2,918 -11% 26 -13% the company strategy, taking into account The non-executive Chairman, the Lynda Johnston TIREE 1,213 -6% 999 -6% 45 +18% 6 +200% 163 -16% 0 +0% the Scottish Ministers’ expressed policy executive Managing Director and four Head of Business Development to encourage sustainable economic non-executive Directors are appointed Grenville Johnston WICK 4,529 -27% 2,026 -6% 342 -37% 751 -4% 1,345 -47% 65 -59% development. by Scottish Ministers. Chairman TOTAL 81,523 -6% 46,658 -8% 4,111 -8% 3,871 -17% 25,445 +1% 1,438 +29% Norman Ross DUNDEE 35,407 -9% Financial Controller & TOTAL 116,930 Company Secretary Front Row (L-R) * Other includes business aviation flights, executive, fleet, freight/cargo, private & club, training, test, overflights and search & rescue. Alistair Goodlad Where significant, the percentage changes over the previous year are shown. Non-Executive Director Mike Cantlay Non-Executive Director Mark Stuart GROUP OPERATING PERFORMANCE Director of Operations Linn Phipps Capital project Airport Investment (£) Non-Executive Director Aeronautical Ground Lighting Islay 1.6M Runway resurfacing Dundee 1.5M Voiceswitch TECHNOLOGY?? Various 0.4M Generator and Aeronautical Ground Lighting Control System Inverness 1.1M Runway resurface Sumburgh 1.9M Aeronautical Ground Lighting Wick 1.9M 8.4M 6 7 A year ago we faced a reduction In its continuing efforts to engage with Dr Mike Cantley and Andrew Castell have CHAIRMAN’S STATEMENT in our revenue grant from the Scottish the public the Board held open days been re-appointed to the Board for a Government of £1,100,000. We have in Kirkwall, Lerwick and Stornoway. The further term of three years. I thank them Volcanic Ash at the start of our year and severe winter weather made huge efforts to achieve these attendance was modest but welcome. and the rest of the Board for their support savings through reducing operating The feedback we received most helpful. during a difficult year. However special towards the end has had a considerable effect on our results. costs, insurance costs, fuel and power One suggestion has resulted in a change praise goes to all our staff for their staunch The former cost the company £600,000 in lost revenues and costs, and payroll costs but we have in our website on reporting arrivals and support during a trying year as mentioned the latter £1,900,000 in costs. The fact that we were able to not compromised safety in any way. departures. Car parking charges were in my first paragraph. They never fail to be high on the agenda in these locations! cheerful and have always gone the extra complete the year with a loss worse than budget of a reduced Security and safety remain a constant We have decided to delay any decision mile for our customers and airlines. subject of Board meetings. Our in-house sum of £1,521,000 speaks volumes for our staff in finding on these charges. savings during a most difficult period. security company has continued to train staff to a high level of commitment There have been no major changes in our coupled with a user-friendly approach. airports. But it is worth recording that the Our safety systems and reporting thereof Macrihanish Airport Community Company have been improved. The whole question has indicated an interest in acquiring Grenville Johnston of security in the islands has been the Campbeltown Airport from the Ministry Chairman subject of discussion in the light of the of Defence. We remain in contact with EC 300 regulation (which regulates them about the future arrangements. Aviation Security in the European Union) Since the end of our financial year and and any possible relaxation of the looking ahead we congratulate our standards. This is a difficult subject Managing Director and flybe on reaching and we await comments from the agreement to commence a service to Westminster Parliament. Amsterdam from Inverness on a daily The appointment of Roxhill Developments basis. This is hugely significant for the to spearhead our activities in Inverness Highlands and I urge the population in Airport Business Park will result in our area to make full use of this excellent real progress around Dalcross. This connectivity. All our airlines contribute investment, with our partners, Moray hugely to our success but mention must Estates, Highlands and Islands Enterprise be made of Loganair who provide the and Highland Regional Council should back bone of our island services and now start to provide construction work, do so extremely well.
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