Chief Executive’s Introduction

Hi there, and from all at AOA Towers welcome to autumn 2015. I’m told that as only the first paragraph of this column is visible in the new email Monthly Update format – and that you need to click in to a link to see the rest – then I need to make an impact to get you lot reading the rest. So here it is: Chelsea 1, Crystal Palace 2! There, that got you didn’t it. I realise I may have lost the Chelsea-supporting readership by now, so apologies to Chelsea fans everywhere – but the last time I, as a Palace season ticket holder of 35 years, would have been able to laud a victory at the Bridge was 1982, so forgive me the self-indulgence. It’s been a real mix of a summer this year, with all kinds of weather. I found myself in Cardiff in mid- August amongst both the sun and rain; and a special thank you goes out to MD Debra Barber for a tour of the facilities there – I’m now thinking of becoming an airport fireman, having learnt the job at CWL, and I think Debra’s quite keen on this career avenue too one day! Working here at AOA Towers, we’re quite adept at putting out fires so I think I would certainly have the necessary skills and experience. Talking of visits, airlines trade association BATA have brought out an interesting study, which shows that more people than ever before are visiting friends and relatives (VFR) by air. VFR traffic has apparently increased 23% since 2010, to 19.03m. This is great news for airports, though maybe not such great news if it’s the in-laws popping by unannounced. Airports surveyed include Aberdeen, Birmingham, East Midlands, Edinburgh, Gatwick, Glasgow, Heathrow, Inverness, London City, London Luton, Manchester, Newcastle and Stansted. More on this in the Update. Talking of families, congratulations go this month to , the only airport to be nominated in the Family Traveller Magazine for the ‘Awesome for Families’ Award. Good luck! Another survey worth pointing out is one released recently by the CAA about airport security. Not for the first time a poll shows that – contrary to complaints about security processes at airports (usually made by MEPs in Brussels) – last year a staggering 93% of passengers were either very or fairly satisfied with security screening (the poll comprised a representative sample of airports, including Gatwick, Heathrow, London Luton, Manchester and Stansted). There is more on this elsewhere in the Update and in the report “Air Passenger Experience of Security Screening: 2014”, which can be seen on the DfT website at https://www.gov.uk/government/statistics/air-passenger-experience-of- security-screening-2014. The point, though, is next time someone says to you that people hate airport security, you might want to refer them to surveys like these. Some more positive news comes on the issue of the Regional Air Connectivity Fund (RACF), where the DfT has announced that 15 air routes have successfully made the funding shortlist. The fund is open to all airports with fewer than 5 million passengers per annum for a total of three years but can help increase routes to larger airports too, potentially providing benefit to many AOA airport members. Destinations whose connectivity could increase due to the RACF include: George Best Belfast City, Carlisle , City of Derry, Doncaster Sheffield, Dublin, Dundee, Durham Tees Valley, Edinburgh, Exeter, London Oxford, London Southend, Leeds Bradford, Newcastle, Newquay Cornwall, Norwich, and Southampton. The proviso on this is that funding for individual routes should not distort competition. Tim Alderslade, the AOA’s Public Affairs and PR Director, has been working diligently on behalf of members on this issue – see elsewhere in the Update for more. ======AOA CONFERENCE, AWARDS & EXHIBITION – 23-24 November On other matters, you may have seen that since I last mentioned the AOA Conference to you, we have added His Excellency, Mr Akbar Al Baker, Group Chief Executive of Qatar Airways, to the list of fantastic speakers – for the first tranche announced, click here. Mr Al Baker really is a charismatic speaker with outspoken views on all things aviation – we look forward to hearing what he has to say at the conference. Partnered for the first time with BAR UK, BATA and the Royal Aeronautical Society, the conference is shaping up to be the biggest and best AOA Conference ever. The deadline for the reduced members’ rate is approaching at the end of this month, on 29 September. I urge you to book your places soon by clicking here. Also, we will be promoting the AOA Annual Awards shortly. The airport awards are judged by airlines, and all airport members will be eligible. For Corporate, Gold, Silver and Associate members, do enter these awards – it really important that all the great work you are doing gets showcased and that you secure recognition. Finally, I’m told that on the Exhibition we’re down to the last few stands. If you would like to reserve one, please let Events Director Roger Koukkoullis or Events & Member Relations Executive Sally Grimes know at [email protected], [email protected], and 020 7799 3171. ======Finally, to end on a more poignant note, the AOA does not normally comment on accidents at member airports. Accidents do happen and usually involve people who are actively and voluntarily involved with aviation, whether crews, airport personnel or passengers. However, the fact that members of the public lost their lives at the Shoreham Airshow gives particular pause for reflection; and we sympathise deeply with the families and friends of those who lost loved ones. Our thoughts also go to colleagues at City Airport, dealing with this tragedy in such trying circumstances. We await the future CAA and Air Accidents & Investigations Branch report in to air shows such as these, reports in which I will take a keen personal interest as someone who attends such air displays every year. The AOA and its members will support measures which improve safety. Kind regards

Darren Chief Executive

Regional Air Connectivity Fund

The AOA welcomed the announcement made by the Department for Transport that 15 air routes have successfully made the funding shortlist under the Regional Air Connectivity Fund. The Fund, which is open to all airports with fewer than 5 million passengers per annum, will provide economic support for approved routes for a total of three years, following which they will need to demonstrate that they can be commercially viable. Full details about the announcement can be viewed here and here. The AOA released a statement on the day which was shared with media and political contacts and which said the following: “The AOA has long supported the Regional Air Connectivity Fund and we’re pleased that this announcement has been made. We believe the policy has the potential to help many of our smaller members, boosting passenger numbers and enhancing connectivity to and between the regions of this country. The Government needs to be careful that in awarding funding for individual routes it is not doing anything to distort competition, but provided that this is not an issue we would urge Ministers to proceed quickly and ensure that the money is allocated as soon as possible.”

Visas

The AOA continues to campaign on the issue of visas, making the case that with respect to cost and process the UK visa system needs to experience further reform. The issue was included in the list of policy ‘asks’ that we included in the recent Tourism and Aviation report, as well as the submission that we made to the Government as part of the Comprehensive Spending review process. In addition, we are currently putting together a paper, alongside Virgin Atlantic and Tourism Alliance, setting out three reforms that the Government could consider that would improve matters. These relate to transit visas, the cost of long-term 5 and 10-year visit visas and reducing the economic risk to the applicant of long term visas. The paper will form the basis of a public affairs campaign that we will kick-off in September, with the hope of securing change either in the Autumn Statement in December or beforehand i.e. to tie in with individual events such as the forthcoming state visit to the UK by the Indian Prime Minister or visits made by senior Ministers to China. As set out above, the AOA put in a submission to the Chief Secretary to the Treasury with regards to the ongoing Comprehensive Spending Review process. The paper focussed on three areas that we believe should be prioritised from a funding point of view: Tourism Grant-in Aid, the resourcing of Border Force, and visa costs. The full letter is attached to this Update email. Air Passenger Duty A cut in Air Passenger Duty in one part of the country should be matched, immediately, by a cut everywhere, according to the Airport Operators Association (AOA), the trade body that represents over 50 UK airports. In November the Smith Commission published proposals – which were subsequently supported by the main UK political parties – to devolve responsibility for APD to the Scottish Government. Ahead of the UK Government setting out draft legislation on these plans by 25 January, airports have called upon the Treasury to ensure that no parts of the country are disadvantaged by any potential reduction in the tax in Scotland. Darren Caplan, Chief Executive of the AOA, said: “UK levels of Air Passenger Duty continue to be the highest in the world, and represent a growing barrier to trade, investment and tourism. The Treasury has recognised this fact by making a number of welcome reforms to the APD regime over the past 12 months – such as removing the levy for both the longest-haul travel (bands C & D) and children under the age of 16 – but the fact remains that at a time when our international competitors are either abolishing or at least freezing their respective air taxes, overall rates of APD in this country are increasing year after year, and now stand at record levels. “The Smith Commission’s proposal to devolve APD to Scotland – and the decision of the main UK political parties to support this recommendation – is a genuine game changer, given the long-stated ambition of the Scottish Government to reduce APD by 50% in the short-term, to be followed by eventual abolition in the future. Now that the Scottish Government plans to follow our European competitors in taking action on this tax, the Treasury should think seriously about the impact that this will have on the rest of the UK. We continue to believe that a cut in APD anywhere should be matched, immediately, by a cut everywhere, so that no parts of the country are disadvantaged in any way, and we urge the Treasury to publish a plan that sets out how and when this can be delivered. “We also continue to urge all political parties to support the setting up of a comprehensive macro- economic study, led by the Treasury, that can consider the UK’s APD regime in its entirety, so that all future decisions on reform of this tax are evidence-based.”

Meeting with Department for Environment, Food & Rural Affairs (DEFRA) On 29 July, representatives from the AOA and Sustainable Aviation met with Emma Boon, Special Advisory to Liz Truss MP (DEFRA Secretary of State) to discuss local air quality matters. Boon stated that, in recognition of the growing interest in air quality issues from the EU and recent Airports Commission report, DEFRA are keen to meet with commercial industries to better understand the work they are undertaking to address local air quality emissions. It is hoped that this will help the Government better understand any potential policy or other support activities that may be required to minimise emissions, primarily to aid the Government’s response to the current EU legal action against the UK for breach of air quality limits. Local air quality monitoring across UK airports is generally well within Air Quality limits, although there are a few noticeable exceptions. Sustainable Aviation advised that they are exploring the option of developing an information paper on Air Quality, explaining what the industry in general is doing to reduce emissions and future opportunities to continue this through use of sustainable aviation fuels as well as the ongoing innovation in cleaner vehicles and surface access strategies across UK airports. Emma revealed that the UK Government will have to make ‘some big changes’ on air quality in a report back to the EU by the end of the year. It is not clear exactly what this means for airports and aviation yet but clearly this is an emerging issue which both AOA and Sustainable Aviation will continue to monitor. Border Force – Problems in airport border halls. Information wanted. Sir Charles Montgomery and Philip Duffy (Border Force COO) are due to attend the next AOA Board meeting in mid-September and – in addition to some information we have collated already. If you have any concrete examples of where there has been a problem in your airport’s border halls in recent months – especially in light of the reassurances we have been seeking – please could you send to me information, along with any further comments, by close of play, Thursday 3 September. Going forward after 1 September, please do feel free to keep updating the AOA if/when further episodes take place in your border halls as it is useful information to have. Border Force consistently claim that they are hitting targets and providing an improving service; and Sir Charles regularly says that he is committed to Border Force becoming the ‘best in the world’ and “having effective partner engagement is very much at the heart of making this happen”. However, AOA member airports have been regularly reporting long queues in Border Control areas all around the country – and so this is why we would like to put this evidence to them when we meet with Sir Charles and Philip Duffy next month. To update the AOA, please contact our Policy Manager, Peter O’Broin at [email protected] CAA

Frequency Spectrum

Discussed on a speculative basis, the issues surrounding Spectrum and ongoing discussion, some through ICAO or world forums. The AOA made the point that any proposals should be put to industry as airports should not be disadvantaged or have to pay for any changes.

The theory is that if frequency spectrum ranges change, the restriction on overlapping frequencies may force change or investment to update equipment.

The Ops & Safety Director attended the recent GHOST (Ground Handling Operations Safety Team) meeting and briefed the OSG ahead of the minutes being published. Primary issues were the fact that airports are still experiencing basic safety failures by HA’s. Also, that regulation for HA’s is in discussion. It is imperative that oversight of HA is by the CAA and not airports. Operations & Safety Group

Generally, it is intended to streamline the working group efforts through a number of factors, including: assessing the relevance & productivity, amalgamating where possible, setting up working groups for specific work streams and then disbanding them again.

Secondly, it is imperative that as the airports industry we engage, where appropriate, on EASA and / or CAA consultations, amendments to regulations and operating manuals. As well as this, chasing down other regulatory affairs which impact safety, costs and performance.

Some working groups have already been amalgamated, 3 into 1 for H&S. Prioritisation of activities means closing down groups when tasks are completed and starting new ones for specific objectives (e.g. updating CAP manuals, consultations). Also, there is a named person responsible for reporting back into the OSG, this will improve the feedback, communication and cross functional activities across the airports in due course (see Appendix A – OSG Structure). i. Safety Improvement Advisory Group report (Simon Butterworth, MAN) ii. CAA Review ACP Decision Making (Neil Thompson, LTN) iii. RFFS – WG [Paul Clarkson, IOM] iv. Health & Safety –WG [Simon Bown] v. DfT Aviation Fuel Task Force (Rob Cooke OSG Chairman/BHX) vi. Airspace Infringements – WG (Iain McDermott-Paine, SOU) vii. GHOST [name] viii. General Aviation Partnership (Amy Paul Denham, EGLD) i. Safeguarding Advice Notices (Jerry Barkley LGW) ii. MET Office Users Forum (Roger Koukkoullis, AOA)

Drones have been mentioned previously, and will be again, a new working group is intended for the Autumn/Winter period. Airports and some ATC units are involved. There is also confirmed support from CAA, BALPA, NATS, and the UK Flight Safety Committee.

Number of people flying to visit friends and relatives at all-time high

The British Air Transport Association have revealed a new analysis stating more people are taking to the skies to visit friends and relatives (VFR travel) than ever before.

Last year there were 19.03 million VFR visit to and from the UK by air - an increase of almost 230, 000 from the pre-recession high in 2008 and a 23% increase since 2010.

58% of the total visits last year (11.06 million) were made by UK residents to friends and family living abroad. Two thirds of those visits were made too European destinations and one third were to the rest of the world.

42% of the total (7.97 million) were made by overseas residents to the UK in 2014. 68% of those visits were made by people living in Europe, while 32% were from the rest of the world.

VFR visits to and from the UK have increased since 2010, but visits by UK residents overseas have increased at a significantly faster rate - 26% compared with 19% for overseas residents to the UK. Flying is the most popular mode of transport for people visiting friends and relatives. 83% visits are made by air compared with 10% by sea and 7& by rail through the Channel Tunnel.

There are also economic benefits from VFR travel, £4.07 billion was spent in the UK by overseas residents who were visiting friends and relatives last year.

VFR travel is not concentrated on any one airport, reflecting the fact that people all across the country fly domestic, short-haul and long-haul to see their loves ones. According to the latest CAA passenger survey data, had the highest proportion of VFR journeys at 48% in 2013.

VFR Airport Percentages

Luton: 48%

Stansted: 46.9%

Inverness: 37.8%

Birmingham: 36.8%

Heathrow: 35.9%

Glasgow: 31.5%

Edinburgh: 29.2%

London City: 28.2%

Gatwick: 27.5%

East Midlands: 26.6%

Newcastle: 25.5%

Manchester: 24.9%

Aberdeen: 23.5%

Nathan Stower, Chief Executive of the British Air Transport Association said: "While recent debate has focused on the economic benefits and environmental challenges of aviation growth, the social benefits of aviation should not be ignored. Air travel allows people who live in different parts of the country and different corners of the world to meet up with their family and friends. Communication technology may have improved and expanded in use significantly in recent years, but it’s clear that nothing can replace being with your nearest and dearest."

Security Screening - Positive news in survey on passengers' attitudes to secuirty screening & security rule change from 1 September

The CAA have released what are some very positive results from its survey on passengers’ attitudes to security screening, which was conducted in 2014.

The survey questioned 21,000 passengers about their experience of security screening at five airports: Heathrow, Gatwick, Stansted, Luton and Manchester. The survey found that in 2014 the majority (93%) of air passengers were very or fairly satisfied with their experiences at security screening, with 67% saying they were very satisfied. Only 3% said were very or fairly dissatisfied.

The aspects of security screening with which passengers were least satisfied were:

 queuing (cited by 6%)  slow speed of processing (5%)  removal of shoes (3%)  restriction of liquids (3%)

The majority of passengers (75%) said there was no aspect with which they were least satisfied. The average time passengers reported that they spent queuing for security screening was 7.1 minutes. The majority of passengers (91%) agreed that any inconvenience caused by the security screening was acceptable. Satisfaction at the five airports combined was similar in 2014 to 2013, as was the average queue time.

Also, as of 1 September airports across the EU have introduced some changes to cabin baggage screening, intended to increase the EU’s capability for screening artfully concealed IEDs. In brief, the main changes are that from 1 September 2015 an increased use of Explosive Trace Detection (ETD) equipment in screening bags is being deployed.

The UK Aviation Conference 2015

The UK Aviation Conference in association with BAR UK, BATA and Royal Aeronautical Society is now well under way. With less than three months to go, delegate and exhibitor spaces are now filling and it is looking to be a fantastic event for all.

Last week saw us announce our first tranche of speakers and we are excited to have one of the best line-ups we have ever had. Speakers include Robert Goodwill MP, Aviation Minister; His Excellency, Mr. Akbar Al Baker, Group Chief Executive, Qatar Airways; Stewart Wingate, Chief Executive, ; Pieter Elbers, President and Chief Executive, KLM; Sir Michael Arthur, President, Boeing UK & Ireland;Paul Kahn, President, Airbus Group UK; Ian Davis, Chairman, Rolls- Royce; Andrew Swaffield, Chief Executive Officer, Monarch Airlines; Sophie Dekkers, Director – UK Market, Easyjet; Amanda McMillan, Chief Executive, ; Ken O’Toole, Chief Executive, ; and Keith Conradi, Chief Inspector, Air Accident & Investigations Branch. These speakers are sure to encourage interesting and thought-provoking discussions about our industry and the challenges it faces in the years ahead. Click here for more speaker information.

The Conference & Exhibition is targeted to airport, airline and aerospace executives and managers, government officials and regulators, industry stakeholders and the media. Anyone with an interest or significant presence in the UK aviation and aerospace should be looking to attend the conference. To book tickets or find out more click here.

Further information regarding the conference schedule, award nominations and exhibitors will be sent to all members in the coming weeks.

If you would like to exhibit at the conference please contact Sally on [email protected] or 020 7799 3171.

Events: Helios Airport Seminar in association with AOA

Seminar: Cyber-security, remote towers, RPAS and noise

Essential briefings for airports

Date: Wednesday 30 September 2015

Venue: RAF Club, London

Aviation consultancy Helios are pleased to announce a free seminar organised in association with the AOA and aimed at fellow airport professionals.

Join us on 30 September (10:00 - 16:00) in London to discuss the latest developments in ATM, technology and the environment, and how these impact upon airport operations.

A number of invited keynote speakers will talk on pertinent issues of the moment. This year for the first time, there will also be a moderated round table on the aviation noise and respite debate, providing an opportunity to engage with policy makers and practitioners on what has become one of the biggest challenges in airport operations.

Presentations will include: Remote towers - what next and how to make the case; Cyber-security - what does an airport need to know?; Aviation noise and respite - how to break the deadlock; RPAS - where are they heading and the implications for airports

For more information about the seminar, contact Steve Leighton, Director of Airports.

To register your interest, contact Helena Vernon by 11 September 2015 by email or on +44 1252 451 673.

About Helios

Helios is an aviation consultancy specialising in airport performance improvement. The company’s work encompasses airfield and ATM performance, capacity and resilience optimisation, safety and risk management. Whether advising on regulatory matters, conducting airside simulations, developing business plans or undertaking economic appraisals, Helios understands the issues and delivers meaningful results.

Member Congratulations Southampton Airport has been nominated for the prestigious ‘Awesome for Families’ award by Family Traveller Magazine. They are the only airport to be nominated for this award. In discussion with families travelling through the airport today, these are some of the reasons noted on why Southampton Airport is “awesome for families” “The best thing for me is that the children can see the planes and the runway which they love. You don’t always get this at bigger airports, and also we were through to the departure lounge in 10 minutes, which was really easy. I’d always choose to come through here with kids” said Catherine Howard from Southampton travelling to Avignon with sons Jake and Charlie. Laura Talbot-Hole from Midhurst, travelling to Brest with her son Tom commented “I like the staff, especially those at the aircraft steps who help me with my buggy”. “I find the four hours free Wi-Fi really useful as it allows the kids to play games on the iPad whilst waiting for our flight” added Tom Huelin from Southampton travelling to Jersey with son Liam and daughter Ella. Rachel Crossland-Green with daughters Kiah, Llana and Mylee, travelling from Manchester, via Southampton Airport to Brest liked the Costa Coffee upstairs in the departure lounge with good food and great views over the runway. Hazel Screech, Customer Service Manager at Southampton Airport added “these are very typical of the positive comments that we get on a day to day basis from families travelling through Southampton Airport. We are in peak season now and the school holidays are always a very special time at Southampton Airport with families travelling to Spain, Italy, France, Holland, Belgium, the Channel Islands and the rest of the UK.” Good Luck to everyone at Southampton Airport from the AOA team. Media Coverage The AOA continues to engage with national and trade media, as required, to support our PA and policy agenda. Since the last Update, the AOA has been quoted in the Herald and Travel Weekly, the latter of which was an op-ed which focussed on the AOA’s views on the publication of the recent Government tourism strategy. This can be read here. Calendar of events AOA Calendar of Events for 2015

Event Date Venue

JANUARY

Public Affairs & Comms Network Tuesday 13 January Manchester Airport

(PACN) *

Monday 19 January AOA Offices Board Meeting

Tuesday 20 January AOA Offices

Ops & Safety Group *

Wednesday 21 January AOA Offices

Security Group *

FEBRUARY

Tuesday 24 February Westminster UK Roundtable

MARCH

Tuesday 3 March (afternoon) Grosvenor House Hotel, Annual General Meeting Park Lane, London

Tuesday 3 March (evening) Grosvenor House Hotel, AOA Annual Dinner Park Lane, London

Wednesday 18 March London PACN *

Monday 23 March AOA Offices Board Meeting

Wednesday 25 March Brussels EU Political Meetings

APRIL

Ops & Safety Group * Tuesday 14 April AOA Offices

Environment Specialist Conference Wednesday 29 April Heathrow Academy

MAY

Security Group * Monday 18 May Rockliffe Hall, Darlington

Security Specialist Conference Monday 18 May to Rockliffe Hall, Darlington

Tuesday 19 May

JUNE

PACN * Tuesday 9 June London

Board Meeting Monday 15 June AOA Offices

Scotland Roundtable ** Tuesday 16 June, 12 noon Macdonald Holyrood Hotel, Edinburgh

Oulton Hall, Leeds Ops & Safety Group * Monday 22 June

Oulton Hall, Leeds Ops & Safety Specialist Conference Monday 22 June to

Tuesday 23 June

JUNE (Cont’d)

AOA Offices Focus Group & Lunch (invited only) * Tuesday 30 June

House of Commons AOA Summer Reception Tuesday 30 June, 4.30pm

JULY

Security Group * Wednesday 8 July AOA Offices

AUTUMN

NE Roundtable in Autumn 2015** tbc

SEPTEMBER

PACN * Tuesday 8 September Liverpool Airport

Board Meeting Monday 14 September AOA Offices

OCTOBER

Ops & Safety Group *

Tuesday 6 October AOA Offices

Security Group *

Wednesday 21 October AOA Offices

NOVEMBER

Corporate Partners, Gold & Silver Tuesday 3 November, 1.30pm AOA Offices Members Focus Group / Lunch

Sustainable Aviation Reception Tuesday 3 November, 4pm House of Commons

Chairman’s Lunch *** Wednesday 4 November Shepherd’s Restaurant, Marsham Street, London

Liverpool Roundtable Liverpool Airport Friday 6 November

Board Meeting AOA Offices Monday 9 November

EU Political Meetings & Dinner * Brussels Monday 9 to

Tuesday 10 November

PACN * London Tuesday 17 November

AOA UK Aviation Conference, Hilton London Metropole Hotel, Monday 23 to Awards Dinner & Exhibition Edgware Road Tuesday 24 November

JANUARY 2016

Board Meeting Monday 25 January AOA Offices

* Invited Group Members only

** Invited Airport, Corporate Partner, Golds & Silver Members only