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ARGYLL & BUTE COUNCIL EXECUTIVE OPERATIONAL SERVICES 20 DECEMBER 2007 ARGYLL AIR SERVICES UPDATE 1. PURPOSE the Purpose of T

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ARGYLL & BUTE COUNCIL EXECUTIVE OPERATIONAL SERVICES 20 DECEMBER 2007 ARGYLL AIR SERVICES UPDATE 1. PURPOSE the Purpose of T ARGYLL & BUTE COUNCIL EXECUTIVE OPERATIONAL SERVICES 20 DECEMBER 2007 ARGYLL AIR SERVICES UPDATE 1. PURPOSE The purpose of this report is to update Members on the current position with the implementation of the Argyll Air Services. 2. RECOMMENDATIONS It is recommended that the Executive • Instructs the Head of Roads & Amenity Services to take all necessary appropriate action to ensure that the Argyll Air Services commences as soon as possible. • Confirms that Argyll & Bute Council will provide an out of hours air ground service at Oban Airport to aid emergency re-fuelling. • Requests that a further report is brought to the next meeting of the Executive. 3. DETAILS General The Argyll Air Services Project was commissioned and undertaken to reduce the isolation of the islands of Coll and Colonsay and also to provide the opportunity for the long term development of Oban Airport. The provision of scheduled service flights from Oban to Coll, Colonsay and Tiree improves accessibility to these islands for visitors and residents. The costs of redeveloping Oban Airport will be met by the Scottish Government and the operation of the scheduled flights is being subsidised through GAE support. It has always been recognised by the funding parties involved, including the Scottish Government, HiTrans, European funders, the Local Enterprise Company and Argyll & Bute Council that the cost of operating the scheduled service would not be recovered through fare income. GAE support would allow the vast majority of this cost to be recovered. Once the infrastructure improvements are complete and the airports are licensed the Airport Development Manager will be free to maximise the business potential of the Oban Airport. 1 Appendix One contains details of a report prepared by HiTrans – the Regional Transport Partnership which provides a historic context of the Argyll Air Services project. At the outset of this project in 2002, it was anticipated that the licensed services would commence around the autumn of 2007, and now five years later, we are reporting a project that is just four months late. From the project’s inception, the completion of the project has been frustrated by many factors including poor advice given by the initial airport consultant, Airport Operational Services Limited (AOSL), previously Humberside Aviation. All the detail provided by this company has needed to be reviewed once the Airport Development Manager was appointed. All general issues have now been addressed. The full requirements for a scheduled service have proved far more onerous than expected at the project initiation and a substantial amount of additional specialist design work and procurement has been required. The skill of the project team has been reflected in that they have managed to overcome all the obstacles presented to them and they have delivered three airports to the required standard. Credit must also be expressed to the main Contractors involved in the construction work which include Ennstone and M & K MacLeod who have worked in partnership with the Council to deal with the delays and additional works 3.1 TLC Ltd Issues There are a number of on-going issues at Oban Airport between TLC Ltd, the sole fuel supplier at Oban Airport and Argyll & Bute Council. These issues could affect the issue of a CAA licence. The current problems include: 1. There have been two reported instances of inappropriate use of the Argyll & Bute Council business frequency, which is for the sole use of the Council. 2. There has been much press interest relating to the emergency out of hours fuel service which is provided by TLC Ltd. It has been reported that Argyll & Bute Council banned this service. This is not accurate. The Council have made no changes to TLC’s right to supply fuel, and indeed the Council has allowed TLC, 24 hour access to the airport by installing a new access gate and we have also installed an external switch to the control tower to allow TLC to operate the runway lighting should it be required, which would increase airport safety. Under CAA regulations, TLC are not permitted to operate the newly installed VHF RTR Radio to contact aircraft for the supply of fuel. TLC have been aware of this requirement since 24 July 2007 and to address this matter, TLC need to purchase a business radio licence for about £100 from OFCOM which would be supported by the CAA, if they wish to have radio contact for refuelling with visiting aircraft during out of hours. There has never been any contract between TLC Ltd and Argyll & Bute Council to provide an out of hours service. 2 However, in light of TLC Ltd’s current refusal to apply for a business radio licence it is necessary that Argyll & Bute Council takes the appropriate action to ensure that the emergency re-fuelling can be sustained. Accordingly, it is proposed, that there is a move from the current ad hoc nature for out of hours cover to an “on call” arrangement where Argyll & Bute Council staff will provide the necessary air/ground cover. 3.2 Public Service Obligation - Highland Airways The official contract start date with Highland Airways is 7 January 2008. The airports will not be licensed by that date so scheduled services cannot start. Highland Airways are unable to obtain their CAA licence until they have undertaken proving flights. These cannot be undertaken until all the airports are fully staffed and operational. It has been necessary for Highland Airways to prepare advance publicity. As a result, Highland Airways decided that their current published start date will indicate that the scheduled service will commence from Monday 3 March 2008. If a licence is obtained earlier from the CAA, then the start of scheduled services will be advanced. The nominal fare level of £1 for the school pupil flights has been discussed with both Strategic Finance and Community Services. This nominal fare has been set as the fare income is offset against the cost of the service which is supported by GAE (currently at 80% of costs incurred). Setting a higher fare increases the cost to Community Services, who would be expected to pay the pupils’ fares, and as such this would reduce the GAE support levels to the Council. Overall Community Services would expect to have a cost saving by the reduction in ferry fare costs. 3.3 Colonsay The emergency water tank has been constructed, and the meteorological equipment is currently being installed. The need for a backup communication system is being investigated and this matter will be addressed early in the New Year. The operation and maintenance of the airport will be undertaken by Beaver Perseverance Limited. It is still necessary to train the staff and this is will be completed in early 2008. The CAA inspection team identified the need for additional minor earthworks to provide the necessary runway clearances. Resurvey work has now been completed and the Contractor will undertake these works in January 2008 to allow this to be completed prior to the next CAA inspection. This additional work is cost neutral to the Council. Minor snagging work on the terminal building has been completed, and the completion certificate for the terminal building should be issued this week. Operation and maintenance manuals for the terminal building have been approved by the CDM Coordinator and they will be issued in early January 2008. 3 3.4 Coll The meteorological equipment is being installed. Ground staff are being appointed and training will be carried out in January 2008. Some additional fencing is required after the initial CAA inspection, and this work is in hand. The terminal building completion certificate will be issued this week. The need for a backup communication system is being investigated and this matter will be addressed early in the New Year. Operation and maintenance manuals for the terminal building have been approved by the CDM Coordinator and they will be issued in early January 2008. Minor repairs are required to the aircraft standing area in front of the terminal building. This work will be completed in January 2008 and prior to the next CAA inspection. 3.5 Oban All civils works have been completed apart from the sealing of the filter drains which is being delayed by a combination of wet weather conditions and the availability of the bitumen tanker. It is recognised that the recent weather has been more than reasonable but there has been difficulty in procuring the bitumen tanker for this work. This work will be completed in January 2008. Other minor works are ongoing but these do not affect the CAA licence. Final measurement and claims have still to be agreed with the Contractor, but these do not affect the issuing of the CAA licence. 3.6 CAA Licensing The initial CAA inspections raised minor issues which prevented the issue of the licences for the operation of the scheduled services. At the end of the inspection the Chief Inspector from the CAA indicated that there were no “showstoppers”, and that he was extremely pleased about the quality of work that had been prepared for the inspection, and that they fully expected that at their next visit the licences would be issued. A second inspection by the CAA, has been arranged for February 2008 when all the necessary works and training will have been completed. 3.7 Fire and Rescue Vehicles A Protector C2 Fire Vehicle has been delivered to Oban. A second fire vehicle for Oban, as backup and for training, has been purchased and it will be delivered in January 2008. There is an ongoing need for fire and rescue training to be undertaken and a Service Level Agreement with Highlands and Islands Airports Limited has been completed to allow this to be undertaken at Campbeltown Airport.
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