ITEM 7

CEO REPORT

FOR GATCOM

APRIL – JUNE 2019

Gatwick Airport Limited Stewart Wingate, CEO

Overview – April to June

Traffic Performance

12.5m 76.7k 85.8% Top passengers air traffic movements aircraft load factor Destinations Barcelona, Malaga, Dublin, Orlando

Operational Performance

Core Service In Bound Baggage On Time Departures Aircraft track performance Standards 99.37% in 55 mins or 71.5% 40/40 less Target: 70% summer & (latest data to be 46th consec month Target 99% 75% winter circulated separately)

Our Quality of Service Monitor (QSM) survey captures the level of overall passenger satisfaction amongst both Departing and Arriving passengers on a 5-point scale (1=Extremely Poor; 2=Poor; 3=Average; 4=Good & 5=Excellent) and the Average scores over the last three and a half years are shown in the graph here. disruption caused by ATC strike action across Europe allied with unseasonably poor weather.

The overall monthly scores over the last 12 months have been tracking high at just below 4.30 – and in the last quarter the scores have been 4.26; 4.26 & 4.24, for April, May & June respectively. In June the score is significantly higher than a year ago, which was characterised by disruption caused by ATC strike action across Europe allied with unseasonably poor weather. Net Promoter Score (NPS): This measure of advocacy (or how much our passengers are likely to recommend Gatwick to friends and family) has also been tracking upwards for the last few years.

The latest monthly NPS for each month between February & June are also highest-ever scores for this time of year, but the June score has been impacted by congestion in North terminal, in particular.

The first three months of the reporting year has started extremely well for Wilson James and the special assistance operation at Gatwick. Volumes have been significantly higher than last year with June 2019 seeing a 7% increase in PRM passengers vs June 2018. Even with these increases, performance has remained strong and the arrivals measures remain above 99% on a consistent basis. May/June 2019 has seen over a 10% increase on the 20 minute arrivals measure, a key to the step change in performance. May/June did also come with its challenges, for the first time ever May and June saw over 70,000 PRM passengers travel through each month. With the busy summer season well upon us the consistent performance of the special assistance operation is a great achievement. Attributable delays also continue the stable trend with the first three months of the reporting year below the 1% target.

As part of the CAA Accessibility audit (Regulation EC1107/2006), the CAA audited the responses to Special assistance feedback. 20 complaints were selected at random by the CAA with 90% categorised as “above expectation” and 10% “meeting expectation”. “The complaints handling function is above expectation.” “The responses given to complaints are well written, personalised and emphatic. Complaint handlers reply promptly to cases. Complex complaints are fully investigated as well.”

Passenger feedback saw a downward trend for complaints per 100,000 passengers in the last three months up to May, which showed a 13% decrease compared to the previous year.

Airport & Operations

Gatwick’s new long-term partnership with VINCI Airport and Global Infrastructure Partners (GIP) was confirmed in May when the sale of a 50.01% stake in the airport to Vinci Airports was completed. GIP will continue to manage the remaining 49.99% interest in Gatwick. The new partnership promises continued investment to put passengers at the heart of Gatwick’s future plans.

In June Gatwick published its annual financial results which demonstrated another successful year with passenger numbers growing to 46.4 million. The airport’s long haul routes showed particular growth (+14.3%) with around 1 in 5 airport passengers now travelling long-haul. New long haul routes include China Eastern flights to Shanghai and Norwegian’s new service to Rio de Janeiro.

In order to counter the threat of drones, Gatwick’s Security team continues to work with both the governments future Drone management strategy and manufacturers research and development programmes to deny a hostile drone. Our work has included a number of high level presentations and briefings to both DfT, CAA and the Airport Operators Association (AOA) together with a range of overseas agencies.

Working alongside the UK Government also features heavily as part of Gatwick Security’s future strategy planning as we seek to adhere to a range of key dates that will see a stepped approach towards delivering a security screening operation using the latest advancements in technology to enable us to screen 100% of passengers and staff through security (body) scanners and advanced computer tomography cabin baggage x-ray machines. Whilst deploying such kit may appear straightforward; significant planning work is on-going to address the physical infrastructure challenges that feature heavily when focusing on protecting both the ability to provide the highest levels of security standards and the most optimum passenger facilitation experience.

In April we appeared before the All Party Parliamentary Group on autism as part of its inquiry into the Autism Act, highlighting such initiatives as our sensory room and the hidden disabilities lanyard. Our latest Gatwick Accessibility Day saw 30 families welcomed to see the sights and hear the sounds of our busy airport in a safe, positive and fun environment. Gatwick’s Accessibility Days are designed to help familiarise families who may find the airport experience overwhelming and may need a little extra support during their airport journey - all before they travel. For some families, this makes all the difference in deciding whether to travel or not.

Blind and visually impaired passengers at Gatwick can now call a professionally trained agent 24 hours a day who will - by using the camera on the passenger’s mobile phone – guide them through the airport, help them read documents or flight information, shop or even find their bag on the luggage carousel. The free, on demand service can be accessed through the aira app on a smart phone and will help to give blind and visually impaired passengers more independence to move through and enjoy the facilities at the airport.

Working with UK Border Force, we supported the expansion of the e-gates which went live in May enabling eligible nationals from Australia, Canada, Japan, New Zealand, Singapore, South Korea and the USA to use them at Gatwick, improving the passenger experience through the border whilst maintaining security.

As part of this work over 180 signs were changed across the passenger arrivals routes. The withdrawal of landing cards for all non-EEA passengers arriving into the UK, across all routes, came into effect at the same time.

We have successfully launched a new passenger Wi-Fi which saw on day one over 10,000 passengers use the enhanced service. The increased internet speeds now position us as one of the best airports for Wi-Fi services in the area. Moreover, initial discussions are underway with network providers to explore the opportunities for 5G services at Gatwick.

Our Gatwick Chatbot has been enabled on Facebook Messenger allowing passengers to track the status of their flight, find information about restaurants, menu’s, opening times and other commonly asked questions through our virtual assistant ‘Gail’ directly within the Messenger app. Gail will learn the answers to more topics over time as it engages with passengers and we plan to promote this new service gradually over the next 6 months.

Gatwick is delighted to have won the Airport Council International (ACI) Europe’s Accessible Airport Award for its progress in helping to remove barriers that people with disabilities and reduced mobility face when travelling by air.

The Gatwick Airport Directive (GAD) on Limitations on the use of Aircraft Auxiliary Power Units (APU) has been reissued. This maintains the existing procedures and restrictions on APU usage, monitoring and auditing. In addition, a temporary exemption procedure has been introduced for the period June-September 2019 to enable a comfortable working environment during on-board turnaround cleaning activities. During this period, after 1100 hours local time, when cabin temperatures are recorded above 28° an exemption from the GAD restrictions on APU usage may be sought via the Airside Operations Duty team. Running of the APU in this situation is time- limited (maximum 45 minutes). Any exemptions need to be sought and recorded, and compliance will be monitored. New cycle parking facilities have been provided at various locations at South Terminal, increasing cycle parking by an additional 66 spaces. Additional spaces have been provided at Concorde House, which was previously very underserved. 11 pods have been removed from the shuttle side of the A23, increasing capacity by 36 spaces. A further rack has also been introduced at Car Park B, replacing a low quality, aging rack. Each of these new locations also has a bike maintenance pod attached for minor bike repairs.

Newly created walking and cycling maps have been installed to help staff, passengers and visitors to get around Gatwick’s external areas on foot, using our safe walking routes. They also highlight points of interest and key buildings. One map shows the airport’s cycling facilities, as well as National Cycle Route 21, which runs under South Terminal. The maps were launched in May to coincide with National Walking Month.

The Highways England M23 Smart Motorway Project is progressing well with the majority of the new gantries and MS4 signs already installed. The 36 hour closure of the westbound Gatwick Spur (J9-9a) was successful, with minimal congestion and just 1 complaint registered by Highways England’s Contact Centre and no Gatwick passenger complaints. This is due to strong cooperation and coordination between the project team and major stakeholders and an extensive communications plan for the airport and local communities. The M23 team are hosting a workshop in July for other smart motorway projects to improve their own communications and stakeholder management. Gatwick will be presenting to help project teams understand the challenges of working in a 24/7 operational environment from the perspective of a key stakeholder. There has been a final push to complete gantry works before the school summer holidays and Gatwick’s passenger peak; there are no closures planned from 10 July to September.

Investment & Growth

This June also saw the deadline for the government consultation on an Aviation Strategy for the industry, looking ahead to 2050. Following engagement with a wide range of internal and external stakeholders, Gatwick submitted a response focused on achieving sustainable growth for the sector.

Gatwick’s draft Master Plan consultation closed on 10th January 2019. The consultation received 5,285 responses. Over the past 5 months data verification and analysis of the responses has been completed. Alongside the Master Plan document we will publish a Consultation Report which will provide an overview of the consultation activity and the responses received. An update on the Final Master Plan is being given as part of the GATCOM agenda.

On 8 July we jointly announced with the Department for Transport (DfT), Network Rail and Coast to Capital Local Enterprise Partnership (LEP) that the Government has approved funds to redevelop the Gatwick Airport rail station. This means Network Rail can begin construction on this important £150m project. The redesigned train station will take the airport’s redevelopment to the next level by providing a seamless transition between the airport and the station, more lifts, escalators and a doubling in the size of the concourse. Funding for the project is through DFT, Network Rail, the Coast to Capital LEP and Gatwick and is a great example of public and private sector working in partnership.

The final design for the Robotic Cark Parking System project is completing with the first site works commencing in July. Testing and commissioning of the robotic system is expected to be completed in November 2019.

The Common Travel Area (CTA) and Domestic Arrivals project in the South Terminal is now operational. This will mean that CTA and domestic arrivals passengers will no longer need to be coached from stands; instead they will have a walking route back in to the terminal, resolving a major source of complaints and meeting CAA requirements.

In the North Terminal departures lounge, work is rapidly progressing on the project to provide a mezzanine extension – known as ‘Project Bobcat’. Projects to provide new food and beverage outlets are also in progress in the North Terminal and the project in the South Terminal to convert the old Fat Face unit to Joe & The Juice is also complete with the unit open for passengers.

The South Terminal Public Access project is now nearing completion with the lift installations now finished. The public opening is scheduled for 25 July when staff and passengers arriving by local bus to the South Terminal will have direct lift access from the bus stops into the terminal building. Further improvements have been made to the bus stop areas on both the northbound and southbound A23, including new covered walkways and pedestrian routes, and improved lighting and wayfinding in and out of the terminal. The new infrastructure improves an important transport hub for local passengers who arrive by bus and for workers employed at the airport, and the nearby Manor Royal Business Park and town centre. Over a dozen bus services currently use the hub, with often high frequency, 24-hour services connecting the airport to other locations across the region including , Redhill, Reigate, Horsham and Brighton.

The project to construct Multi Storey Car Park 7 in the North Terminal was approved at the Board in June. The £40m project will open to passengers in Spring 2021.

The Pier 6 Western Extension programme of work achieved a critical milestone in June with the delivery and installation of the three passenger boarding bridges that will enable the A380 to relocate to its new home on Pier 5. Once this new stand is operational in the Autumn, construction work can begin on the western extension for Pier 6.

The photograph shows all three boarding bridges installed on Pier 5. Work is also underway to widen and realign taxiway Quebec so that the A380 can taxi between the runway and it’s new home.

In addition, the hoarding has gone up in the IDL for work to start on the link bridge which will create a faster walking route for A380 passengers to Pier 5, and stand 103 on the eastern side of Pier 6 is making good progress and will be enabled to handle aircraft for the first time in the Autumn.

Airlines & Routes

April saw a number of new services added, including a brand-new route to Zadar (Croatia) operated by easyJet. With 2 flights a week, passengers can enjoy both exploring the sights, and relaxing by the sea in Croatia’s oldest continually inhabited city.

New airline routes included British Airways launching Almeria & Bilbao (Spain), Vueling relaunching Asturias and starting Alicante (Spain), easyJet adding Jerez (Spain), and Turkish Airlines commencing services to Antalya (Turkey).

May saw 2 new routes added to Gatwick’s portfolio, with TUI launching Lamezia-Terme (Italy) and Rijeka (Croatia). Adding choice to the urban explorer who also likes the sun, both destinations offer rich cultural attractions and historic landmarks.

Moving into June, Wizz recently added a new route to Gdansk (Poland). The daily service will be popular with those seeking short city breaks to Poland’s principal seaport.

Unfortunately, the start of Gatwick’s new route to Kuwait with Jazeera has been delayed, however we are confident the service will commence in the later part of the year.

Airspace & Noise

Future Airspace Strategy Implementation South (FASI(S)) Following two rounds of highly successful and constructive engagement, in which over 55 groups and organisations took the time to offer their views, we submitted our proposed airspace modernisation design principles to the CAA on 13 June. The CAA endorsed our proposal and offered no additional guidance on how they would like us to enhance our application of the principles underpinning the airspace change process. The 9 Design Principles are available to review on the CAA’s airspace change portal. We have written to all stakeholders to thank them for their support and their valued contribution and to outline our plans for the next 6 months. Stage 2, of the 6-stage process, will take about a year to complete. The objective is to develop a shortlist of design options upon which we can consult in 2021. The iterative development of these options will involve engagement with a wide range of existing stakeholders and the introduction of parish councils and similar organisations when it is appropriate. Throughout this period we will be working closely with other neighbouring airports to deconflict designs and with NATS to understand how airspace designs might integrate effectively.

The first stage of the engagement process to support the development of the Route 4 Design Principles, which included a series of focus groups held between 15-20 May, was successfully completed with the active contribution of a broad spectrum of stakeholders. Based on the feedback received a set of 17 draft Design Principles was included in the Stakeholder Review Document which was circulated to all stakeholders for review on 10 June with responses requested by 28 June. We are still planning to submit our Design Principles to the CAA by 12 July for a CAA decision by 26 July which will allow the airspace change to proceed to the next stage.

The CAA published the noise exposure contour analysis for Gatwick which showed that the airport’s noise footprint (54dBA Leq) reduced by 7% in 2018. The CAA concluded that this was due to a range of measures including improved operational procedures, the phasing out of the noisiest aircraft and the introduction of new, quieter aircraft.

The footprint, measured using the new nationally recognised standard measurement (54dBA Leq), shrank from 82.7 Km2 to 77.1 Km2 in 2018, compared to 2017. The number of people living within this noise contour also fell to 10,200 from 10,950. Cumulatively, over the last two years, 900 people have been taken out of this noise footprint as it shrank by 11% - reducing in area from 86.5km2 in 2016 to 77.1Km2 in 2018.

As previously reported The Environmental Noise Directive 2019-2024 Noise Action Plan for Gatwick Airport was adopted by the Parliamentary Under Secretary of State for the Environment on 11 February 2019. A number of action plan actions have been prioritised for implementation during 2019 and work has already commenced on a number of these selected actions, in particular reviews of our departure noise limits and our acoustic noise insulation programs. The deployment of the new Noise and Track keeping system directly and indirectly contributes to the completion of a number of action plan actions which focus on the availability of, and access to, airspace and noise related data.

The Noise Management Board (NMB) held its 14th meeting on 8 May where plans were discussed to take the NMB from its first term into the second term with a new structure: an NMB Executive Committee and an NMB Community Forum. Unfortunately, the NMB was itself unable to agree a plan or mandate for this transition. Gatwick Airport has paused governance in order to reflect on next steps.

The NMB has an important role to play in how Gatwick will manage local noise impacts in the future, and so in order to make the most of the Review Committee’s work to establish a future NMB, taking into account the findings and recommendations of the Committee’s comprehensive Review, we will consider carefully what options could be available to evolve the NMB on the basis of the lessons learned from the first 3-year term. It should be noted that there is broad agreement that the proposed new structure provides a good basis for a future NMB, and with that in mind we plan to initiate the selection and appointment of two Chairs, one for the NMB Executive Committee (NEX) and one for the NMB Community Forum (NCF).

The meeting of the NMB meeting scheduled for 24 July will be managed under interim governance arrangements and provides an opportunity to update on a number of workplan activities including: the review of Standard Instrument Departures, the new noise and track keeping system, progress of the Reduced Night Noise trial and the next steps for the second term of the NMB.

(The Noise Quarterly Performance Data Table will be circulated separately) Community

Students in the South East found out more about the opportunities that careers in Science, Technology, Engineering and Maths (STEM) offer at the regional Big Bang event in June, where Gatwick was headline sponsor. Part of a nationwide Big Bang programme, The Big Bang Fair South East aims to get young people interested in STEM subjects by showing how they are translated into real life. As lead sponsor, we want to inform and inspire the next generation about the wide range of applications of STEM skills at the airport and the exciting career paths that Gatwick offers. We created an airport zone, including 20 different activities, supported by 150 Gatwick staff volunteers from across GAL and Gatwick Family partners.

Eight students from Ifield Community College attended a week’s work experience at the airport. The programme was supported across the business to provide an overview of career choices at Gatwick. The week culminated in the students delivering a presentation to Gatwick staff on their work experience. They met Directors Chris Woodroofe and Darren Hockaday, who presented them with certificates to mark their success on the programme.

Gatwick Airport were proud to accept St Catherine’s Hospice Corporate Volunteer of the Year Award in May. Our partnership is St Catherine’s most successful corporate partnership in their history.

On Saturday 8th June, nearly 1,000 walkers brightened up the streets of Horsham to raise money for one of our charity partners, St Catherine’s Hospice, a charity who provide support to local people facing death and bereavement. Being a proud sponsor of St Catherine’s Midnight Walk, over 20 staff took part from Gatwick, walking 2, 7, 13 or 20 miles and contributed to the incredible £150,000 raised on the night. Gatwick’s Head of Occupational Health and Wellbeing, Deborah Edmond, helped kick off the walk with a heartfelt and supportive speech wishing the walkers luck as they set off on their challenge.

Gatwick sponsored the Brighton Marathon Weekend for the third year, making it possible for the race organisers to distribute 50,000 reusable water bottles to help to reduce litter and single use plastics at the event. Supporting the Brighton Marathon Weekend raises in excess of £4m for charities across the region, including by a large number of Gatwick staff. Our involvement also waived the fee for the Cancer Research UK Kids and Teens Mini Mile races to encourage a wider demographic of children participating.

Gatwick partnered again this year with British Airways Run Gatwick - the Crawley half marathon. The event is growing in reputation with 4,502 registrations (up 500 runners on 2018). The event saw approximately 9,000 spectators.

We sponsored the Gatwick Airport RaceCrew Programme - 285 volunteers enrolled to support various roles across the event village in Southgate Park and along all 13.1 miles of the race routes.

The recently formed Gateway Gatwick Group continues to make progress promoting tourism in the neighbouring areas of West Kent, East Sussex, West Sussex and Surrey. Passengers are now welcomed in the both terminals by stunning images of what is on offer on the airport’s doorstep. In addition, a page has been added to the Gatwick website www.gatwickairport.com/discoverlocal.

Gatwick’s continued partnership with Crawley Borough Council on the Invest Crawley programme included sponsorship of their Investor Tour in June, showcasing the town to prospective developers and investors. The tour included a presentation from Gatwick on the airport’s unique role in the Borough, and the benefits to local businesses. Also, in June we supported the Reigate and Banstead Borough Council Business Awards, with sponsorship of the Social Value Business of the Year.

Engagement with local community representatives has continued through our Discover Gatwick programme of events. These events will now pause for the summer period and will resume in the Autumn. Across the summer we are supporting the people and organisations in the communities around the airport. This year, we're doing that through an exciting mix of events and activities in Kent, Surrey and Sussex with events to suit most age groups and interests and include more locally Horley Carnival and Crawley High Street Live.

Recent engagement with local MPs has focused on airspace, with Gatwick part of a roundtable hosted by the new Aviation Minister Baroness Vere. As one of her first engagements in post, Baroness Vere also spoke at a launch event to celebrate Gatwick’s new owners.

Sustainability

Gatwick’s annual Decade of Change report for 2018 was published on 24 June. The Decade of Change report provides a summary of current initiatives and progress on our 2020 goals. The environment data is independently verified by Ricardo Energy & Environment.

Key aspects of our 2018 performance include:

• Recycling and reuse increased to 64%, with all empty coffee cups and plastics recycled and zero commercial and operational waste sent to landfill. • Carbon emissions from ground energy were 50% less than in 1990 which is halfway to net zero. Aircraft emissions remained at 2017 levels and surface access emissions fell slightly. • Gatwick’s contribution to the local economy included 57% of GAL staff employed from the local area and £128 million spent with local and regional suppliers. • Gatwick’s contribution to the local community included £192,248 raised for charity partners, 52 community events sponsored and 162 other local causes funded. • Securing the Wildlife Trust’s Biodiversity Benchmark certificate for the 5th consecutive year. • Maintained 44% of passengers arriving at the airport by public transport. • Reduced the airport’s noise footprint by 7% in 2018, compared to the previous year • Reduced the airport’s water consumption by 5%, compared to 2018.

The 2018 Air Quality Monitoring Joint Report prepared by Reigate and Banstead Borough Council shows that local air quality has generally continued to improve and that the monitoring programme is effective. The report shows that NO2 and PM10 levels in the Horley Gardens Estate continue to be well below the annual mean air quality objectives for Local Air Quality Management; apart from at the RB149 monitoring site on the Brighton Road. As the Joint Report states, this is due to road traffic emissions and we continue to support RBBC in managing this issue.

We continue to work with Reigate and Banstead Borough Council (RBBC) and Crawley Borough Council (CBC) on air quality matters including monitoring support, data sharing and collaborating on awareness-raising initiatives. For example, supporting RBBC with funding for the EV dual-charger in Victoria Gardens car park in Horley; and sponsoring CBC’s recent EV.ent for local businesses.

Gatwick achieved the ISO accreditation (International Organisation for Standardisation (ISO 14001 Environmental Management) for the 9th year running and the Occupational Health & Safety Assessment Series (OHOSA 18001) accreditation for the 7th consecutive year.

Gatwick is pleased to note that ten ultra-low emission buses (single-deck Wright Euro VI Micro Hybrid StreetLite) recently arrived at Metrobus’ Crawley depot and have been making their first journeys with passengers this week. These buses emit up to 98% lower levels of nitrogen oxides (NOx), a huge step forward in the effort to improve local air quality. The buses use start-stop technology, meaning no emissions at bus stops as their engines aren’t idling. Four of these UK-built buses are on the Horsham-Crawley-Gatwick route 200 and six are on routes 430 and 435 around Reigate, Redhill and Merstham.

We are pleased to report that in the first quarter of 2019 there was a 33% decrease in passenger accidents when compared to quarter one of 2018. Focus continues to be upon improving the incidents of slips and falls on People Conveying equipment such as walkways and escalators.