Airport The annual update cardiff-airport.com

@Cardiff_Airport CardiffAirport @cardiff_airport Cardiff Airport Maes Awyr Caerdydd Diweddariad blynyddol

2018 Chairman’s welcome

2017 has been a watershed year, both for Cardiff Airport and We continue to be ambitious and have set ourselves a for our region. Not only have we delivered on our promise to double digit target for further growth in 2018 with more grow the business, achieving almost 50% passenger growth routes having been added by our airline partners. We will since our change of ownership in 2013, we have also, at continue to substantially improve the airport for all of our long last, secured a global flagship carrier in passengers to ensure that everyone who travels in and out which launches a daily service to the Gulf on May 1st 2018. of has a truly enjoyable and memorable experience. This is a pivotal move which transforms Cardiff Airport into We will continue to work closely with and our a vital gateway for both Wales and the and airline partners to attract even more inbound passengers to which significantly enhances our relationship with the world. Wales, as over 30% of our passengers originate from outside Wales. We will also continue to work closely with the aviation The Board of Cardiff Airport is firmly focussed upon industry which has a major presence across all of Wales. developing our strategies for growth and financial sustainability. At the heart of all of our activity has been I pay tribute to all of the airlines with whom we work and the wellbeing of our passengers and the development and profoundly thank them for their magnificent support over support of our staff and our partner relationships, particularly the years. We are deeply conscious of these relationships, in terms of safety and security. forged over time, and we will work with all of our carriers to ensure we continue to grow their business with us. The new Qatar Airways service from Cardiff Airport will be the first ever regular direct long haul flight linking Wales and Cardiff Airport is wholly owned by the the South West of England to a major global hub in the Gulf and I thank the Government for their trust in allowing the region. The benefits of this will be transformational for both Board to manage this national asset of Wales on their behalf. businesses and passengers across the region. We want to I also sincerely thank all of our political parties in Wales for work with all of our partners in the region in the year ahead coming together this year to test and support the Airport’s

to ensure that everyone will benefit from this extraordinary vision for growth. Such unity of purpose is fundamental opportunity. when developing a long term strategy for infrastructure development and to create long term sustainability for a On a personal note, I thank the Welsh Government for their critical part of our nation’s connectivity and aviation industry. support over the past two and half years, and the British

Ambassador to Qatar, His Excellency, Ajay Sharma and his We have more work to do to achieve our objective of exceptional staff for their outstanding support without which creating a great airport with a wide range of aviation facilities, we would not have achieved this success. of which Wales and the UK can be truly proud. We want Cardiff Airport to become a central part of the national I sincerely thank His Excellency Akbar Al Baker, the Group success story, an important gateway for the UK. This is a pivotal move which “ Chief Executive of Qatar Airways, for the faith he has placed in us and for his patience and courtesy that he has shown Looking back over 2017 I can confidently say that we have transforms Cardiff Airport into me since we began our discussions in 2015. made great progress on our journey. It has been a year of great significance for Cardiff Airport, and I look forward to a vital gateway for both Wales I am totally confident that the dedicated and hardworking further success in 2018 and beyond. team at Cardiff Airport will deliver a world class service with and the United Kingdom and Qatar Airways for passengers and businesses visiting Wales “ and travelling across the world. which significantly enhances our The critically important relationship between Qatar, Wales relationship with the world. and the United Kingdom is substantially strengthened with this service. This is not to be underestimated. Roger Lewis Chairman Business update

We are proud and confident that Cardiff Airport is We were delighted to beat competition from other delivering for Wales. Over 1.468 million passengers UK regional airports to be named Best Airport used the Airport during 2017, an increase of 9% (under 3 million passengers) at the Airport Operators versus 2016. Association Awards in November 2017; an award voted for by UK airlines. 2017 has seen continued growth in our route network and passenger numbers, which is set to continue We have been pleased to welcome Terry Morgan as through 2018 and beyond. Over the last year we have a Non-Executive Director, who will offer additional

had capacity increases on key services with , expertise to the Board with over 35 years of and . Plus we have welcomed Iberia experience in the industry. Express with a Madrid service, with a Guernsey service and additional routes from Ryanair Working together with all our partners, we are

to Faro and Flybe to . well positioned to deliver on our vision to be an outstanding capital city airport, connecting Wales to For 2018 we have announced a new partner in Qatar the world and the world to Wales. Airways who will be launching a daily service between “ Cardiff and Doha in May 2018. As well as new services with , TUI, Flybe and Thomas Cook we have also seen increased capacity from KLM. Our mission: In parallel, we have been working on enhancing

To be a sustainable airport business generating the customer experience for passengers travelling Deb Barber through Cardiff to ensure the start and end of their CEO significant economic benefit for Wales. journey exceeds expectations.

“ We have a set of shared values, which help us to achieve our business priorities: Our vision: “ Cardiff Airport aspires to be an outstanding capital city A S P I R E S airport connecting Wales to the world and the world Safety and Respect Ambition Pride in all Innovative in Efficiency at Service- security as our others and act to succeed that we do our approach all times orientated to Wales, whilst delivering an exceptional customer No.1 priority responsibly “experience. Growth of routes and passengers

ar ye he 1.468 r t million ve passengers th o 9% grow Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan

New routes: Growth has been achieved by: 2018 • Developing year round services for core business and ‘visiting friends and family’ markets Qatar, Doha and worldwide • Increasing low cost capacity of key leisure routes connections – Qatar Airways – Flybe • Developing bespoke markets to differentiate Cardiff Hurghada – TUI • Playing a key role in delivering major events in Wales and facilitating Welsh teams and fans who Antalya – TUI and Thomas Cook travel abroad. Seville – Superbreak Malta – Superbreak New routes: Madeira, Funchal – Superbreak 2017 Cardiff has 11 18 airlines regularly routes to major Montenegro, Croatia & Adriatic Coast Cardiff has over 50 Cardiff now connects Rome - Flybe use the airport hub airports with – Superbreak Madrid - Iberia Express direct routes to 9 capital cities Bergen – Hurtigruten facilities connections to over Guernsey - Blue Islands 900 destinations Iceland, Akureyri – Faro – Ryanair Superbreak Barcelona / Venice - Celebrity Cruises Dubai – Thomson The busiest year for 8 years. Almost 50% growth since the Cruise flights change to Welsh Government ownership in 2013 Enontekio Ivalo Cardiff Airport - the route network Pajala Over 50 direct services and over 900 connections. Akureyri

Bergen

Top 10 direct routes Top 10 key connections 1. Amsterdam 1. New York Glasgow 2. Majorca 2. Dubai 3. 3. Chicago Newcastle 4. 4. Singapore Dublin Amsterdam 5. Edinburgh 5. Copenhagen 6. 6. Hong Kong Dusseldorf 7. Malaga 7. Guernsey 8. Paris 8. Bangkok 9. Faro 9. Toronto 10. Belfast 10. Beijing Chambéry Venice Dubrovnik Burgas Reus Barcelona Rome Tivat Madrid Ibiza Mahon Seville Palma Kefalonia Dalaman Faro Alicante Zante Kos Antalya Malaga Malta Rhodes Crete Paphos Funchal

Orlando

Tenerife Gran Canaria Hurghada

Doha

83% Jamaica passengers travel on international flights Barbados New for 2018 Hub airport Direct routes

Map is for illustrative purposes only and not set to scale Cardiff Airport - Qatar Airways connections Daily flights start st1 May 2018 150 onward connections from Doha Operated on 787 Dreamliner

Cardiff Journey from Cardiff to Delhi 12 hours

Doha Journey from Cardiff to Bangkok 14 hours

Journey from Cardiff to Journey from Johannesburg Cardiff to 16 hours Auckland 30 mins 24 hours

Map is for illustrative purposes only and not set to scale S N I A T N U O

M

Newtown M69 Corby Stourbride M6 N Aberystwyth M6 A BIRMINGHAM Coventry M1 I Llanuri Kidderminster Ketterin R Lledrod M45 B Bromsrove M42 Rhayader M40 Royal Wellinborouh M Leaminton Aberaeron Redditch Warwick Spa New Quay A Trearon Llandrindod Leominster M5 Northampton Cardiff Airport - catchment area C Wells Worcester Synod Inn Bedford Builth Stratford- Lampeter Wells upon-Avon M1 Cardian Strumble Llanwrtyd Hay- Hed Pumsaint Wells on-Wye Evesham Newcastle Hereford Banbury Goodwick Ledbury Emlyn Llandovery Milton Fishuard Talarth M40 Keynes Crymych M50 Tewkesbury St Dvids Hed Cynwyl Llanado M5 Stow-on- Cities and towns will benefit from reduced Elfed Sennybride The Blck St Davids Llandeilo Mountins the-Wold Carmarthen Ross-on-Wye Cheltenham Crickhowell Dunstable journey times to fly long haul, for example; St Clears Luton Narberth Brynamman Aberavenny Haverfordwest Merthyr Aylesbury Ammanford Hemel Milford Tydfil Ebbw Oxford 20 mins / 12 miles Ystalyfera Hempstead Haven Vale Ralan Cardiff Pendine Pontardawe Stroud Pembroke M4 Aberdare Lydney Cirencester 3 hrs 140 miles Amersham Pembroke Dock Usk Hi h Neath Treorchy Pontypool Nailsworth Dursley Wycombe Cwmbran St Govn’s Thornbury M40 45 mins 27 miles Hed Port M48 M5 M25 Worms Hed/ Maeste Pontypridd Beaconsfield Newport Penrhyn-Gŵyr Talbot Newport Pencoed M4 Yate Swindon Port-Eynon M49 Maidenhead Slouh 2 hrs 30 mins 126 miles M4 A48(M) Avonmouth M4 Bridend M32 CARDIFF Portishead Readin Cowbride Bristol Chippenham M4 A329 M4 Clevedon Bracknell 1 hr 42 miles Nailsea Staines- Marlborouh Swansea Llantwit Barry Keynsham Newbury upon-Thames Major Cardi Airport Weston- Bath M3 3 hrs 30 mins 180 miles super-Mare Banwell Bladon Radstock Trowbride Burnham- Cheddar Basin stoke Lynton on-Sea Bristol City 1 hr 15 mins 56 miles Ilfracombe Minehead Frome Andover Warminster Farnham Guildford Population: 6.4 million Porlock M5 Wells Centre 2 hrs 106 miles Glastonbury Shepton M3 Braunton Williton Brid water Mallet Core catchment: Wales Street Barnstaple 2.4 million population Northam Othery Salisbury 1 hr 30 mins 70 miles Hrtlnd Point Dulverton Taunton Lanport Winchester Bath Bideford Ilchester Secondary catchment: Hartland South Wellinton 2 hrs 103 miles Molton Petersfield M271 South West England Great Torrinton Chulmleih Ilminster Yeovil M27 Southampton 4 million population Tiverton M5 Crewkerne M27 1 hr 30 mins 75 miles Fareham A3(M) Stratton Cullompton Chard Rinwood Gloucester Average annual income Bude Holsworthy Hatherleih Blandford Forum 2 hrs 101 miles Honiton M275 Chichester per capita: £30,000 Crediton Axminster Halwill Okehampton Junction Poole Portsmouth Boscastle Ottery St Mary Selsey Tintael Lyme 2 hrs 126 miles Launceston Exeter Seaton Reis Dorchester Bournemouth Bill Sidmouth Exeter Moretonhampstead Isle of Port Isaac Camelford 3 hrs 30 mins 187 miles Exmouth Bovey Purbeck Trevose Tracey Hed Padstow Dawlish Weymouth Tavistock Teinmouth 2 hrs 30 mins 164 miles Wadebride Callinton Yelverton Newton Abbot Portlnd Bodmin Buckfastleih Torquay Plymouth 225 Newquay Liskeard Bill 4 hrs 30 mins Bule miles Lostwithiel Saltash Plymouth Ivybride Totnes Pai nton Perranporth St Austell Looe Brixham St Agnes Fowey Torpoint Halwell Hed Yealmpton St Anes Dartmouth Truro Probus Redruth Mevaissey Kinsbride Cardiff Airport St Ives Salcombe Camborne Dodmn Strt Point Hayle Penryn Point St Just Penzance St Mawes Helston Falmouth Newlyn Lnd’s Porthleven End Map is for illustrative purposes only and not set to scale Source: ONS population statistics Mullion Coverack

Lizard Lizrd Point Enhancing the customer experience

We are committed to delivering an exceptional customer experience for our passengers and as such have continued to invest in our terminal and facilities.

We have just launched a Costa Coffee in the Arrivals Hall for those arriving to Wales or friends and family waiting to collect others.

The next phase of investment plans for the terminal include: • Opening additional seating areas in the Departure Lounge, providing further space to relax before the flight and enjoy views of the airfield • A Costa Coffee in the Departure Lounge, expanding the choice for customers alongside the existing Caffé Ritazza and The Beer House • Increased retail space, allowing for a larger WH Smith store, with additional product ranges including ‘Well’ pharmacy • Investing in upgraded air bridges to accommodate a range of aircraft from the Boeing 737 to the Airbus 321/330 and the Boeing 787 Dreamliner • Expanding the Executive Lounge, allowing for additional seating whilst enhancing the offer, meaning more customers can take advantage of the exclusive facilities before they fly • Upgrading the hold baggage screening system to meet enhanced security requirements.

Outside the terminal building customers will also see a number of changes to the car park and car hire facilities, including: • New ‘meet & greet’ car parking for customers with a dedicated area for drop off and pick up close to the terminal building • New car hire centre close to the terminal building.

Invested in our terminal and facilities to deliver an exceptional customer experience

Investing in safety & security

Our capital programme has been prioritised to deliver the highest standards of safety, security and regulatory compliance.

• We have invested in the latest security screening equipment for hold baggage plus the latest passenger scanning equipment to ensure ongoing compliance is maintained and even higher standards of detection are achieved • Considerable investment to introduce the new Voice Switch in Air Traffic Control to meet regulatory requirements for 2018 • We have renewed our Instrument Visual Range (IRVR) to improve our operation during low visibility • Worked collaboratively with HSE to make considerable improvements to our safety processes and procedures • Successfully progressed our environmental accreditation Seren BS 8885 • Looking into 2018 we are reviewing plans to expand the security search area, allowing for two additional channels to enhance the customer experience whilst maintaining security standards.

We continue to work in partnership with the Civil Aviation Authority and Department for Transport to ensure Safety and Security is our number 1 priority.

Safety and security is our number one priority Our people Our committed and high performing Airport team is fundamental to delivering the Airport vision and mission. The team’s wellbeing is seen as a central theme in ensuring that Cardiff Airport meets its objectives.

Key highlights of 2017 have included: • Team training has been structured ensuring alignment with business objectives • The introduction and development of an Apprenticeship programme • A comprehensive Health Surveillance Programme has been introduced • Launching an Education Programme for schools in Wales, the activities of which are linked to the National Curriculum • The Airport team has achieved the following awards: - Airport Operators Association Awards - Best Airport (under 3 million passengers) - Happy or Not - 7th happiest Airport in the world - OAG - 5 star award for scoring over 90% on time performance - Business Awards - contribution to South Wales Business - Institute of Directors – The Director’s Award for Deb Barber - Wales HR Network Awards - Winner of HR Assistant and Finalist for HR department of the Year Awards.

Cardiff Airport pays above the National Living Wage for those above and below the age of 25. We are also committed to working towards achieving the Real Living Wage with a pledge to have this in place by April 2020, subject to the Airport moving back to a position of profitability by that date.

The Airport continues to work in partnership with both the GMB and Unite unions in order to ensure the most effective employee relations. The 2017/18 pay discussions saw all staff receiving a two year pay deal of 4%, 2% of which would be applied in the first year.

Committed, high performing teams living our shared values Impact on the Welsh economy Cardiff Airport is a strategic asset for Wales: • 1,800 aviation related jobs at the airport • 2,675 total direct and indirect jobs • The overall GVA impact to the local economy is £102million • 30% passengers are visitors to Wales

International passengers by country of residence:

Ireland Germany France USA Poland Australia Netherlands Spain 16% 9% 9% 8% 7% 6% 6% 5%

The UEFA Champions Italy Canada Romania Switzerland Portugal Belgium New Zealand India League Final in 3% 3% 3% 2% 2% 2% 1% 1% numbers: Others: 17%

300% uplift in air traffic around the Supporting major events skies of South Wales Cardiff Airport works closely with stakeholders to ensure major events hosted in Wales are delivered 380 additional arrivals and departures safely and successfully. 21,000 travelling fans Every year Cardiff Airport delivers teams and fans travelling to and from Wales for the NatWest 6 Nations rugby tournament. 2 Champions League Final teams: Juventus and Real Madrid In 2017, Cardiff Airport played a huge part in delivering the UEFA Champions League Final for the capital city. 1 Champions League Trophy Cardiff Airport is a strategic asset for Wales and an integral part of the National Integrated Transport Strategy

Source: 2015 CAA Survey/2015 IPS Survey The future

We are focussed on delivering a successful and sustainable Airport business, which will be achieved in the following ways: • Creating contagious confidence in the market • Enabling choice for travellers to use Cardiff Airport • Winning new business and increasing capacity on services served by our current airline partners • Filling our existing flights • Diversifying our business through innovative wider initiatives • Attracting and supporting inward investment and to Wales • Working with key stakeholders to develop regional and national plans to improve access for our customers; - Cardiff City Region - National Integrated Transport Strategy • Developing the Airport Masterplan • Continuing to lobby on the devolution of Air Passenger Duty (APD) • Continuing to lobby on the disproportionate impact of UK Government policy on smaller, regional airports • By maximising the contribution, commitment and development of the workforce • A commitment to achieving the Real Living Wage by April 2020, subject to Airport profitability

We want to ensure Cardiff is the Airport of choice for people travelling to and from Wales.

Cardiff Airport stands as a symbol of Wales’s ambitions as a significant presence within the global aviation industry

WYG_A093950-2drg463 Governance

Upon taking ownership in 2013 the Welsh Government established a holding company to own the equity investment in the Airport. A management agreement has been put in place to regulate the relationship between the holding company and Cardiff Airport to ensure the Airport operates as a commercial enterprise at arm’s length from Government.

In addition to this arrangement, the Airport has four committees chaired by independent Non-Executive Directors for audit, risk, safety and security and remuneration.

Cardiff Airport operates to a two year rolling business plan and five year business projections. The Airport reports to the holding company on a monthly basis on financial performance and compliance with regulatory matters as required by the Civil Aviation Authority and other relevant regulatory bodies. The Airport has reported directly to the Welsh Assembly’s Public Accounts Committee.

The Board undertakes an annual performance appraisal.

The Airport Company now directly employs over 250 people having insourced key functions including security, facilities management and the airport fire and rescue service. The Airport supports 1,800 aviation related jobs and an additional 875 induced and indirect jobs totalling 2,675 across the region.

The ownership structure allows the Airport to operate with commercial independence whilst giving confidence in the long term security of the business as a strategic national asset Board of directors

Roger Lewis Contact telephone number Chairman 01446 712 532

Debra Barber Contact email address Chief Executive Officer [email protected]

Geraint Davies CBE Website Non Executive Director cardiff-airport.com Margaret Llewellyn OBE Non Executive Director @Cardiff_Airport

Terry Morgan Non Executive Director CardiffAirport

Spencer Birns Commercial Director @cardiff_airport

Huw Lewis Finance Director & Company Secretary Cardiff Airport