Strategic Plan 2017 – 2022 Here to get you to...

new markets

cities & sun

greater heights

Glasgow

Ayrshire

new customers

2 a more sustainable

your business goals

your destination safely

new experiences new job opportunities

places out of this world

3 4 Contents

6. 9. 10. 12. Forewords About us Our timeline Leading the change: our Board & Executive Team

14. 16. 18. Our services Our external operating Our vision, purpose environment & values

Strategic objectives

20. 22. 36. 42. Strategic objectives Bringing in business Continually compliant Making people a priority & staying safe, secure & sustainable 46. 50. 54. Financially fit Building networks Attracting investment & relationships

58. Financial overview 5 Chair’s foreword

On the day I arrived at The Scottish Government acquisition Prestwick in November 2014 of the airport and the strength of the to take the chair, passenger numbers new Board present an opportunity fell overnight from 1.1 million to to make long term plans and strategic 624,000. It was a stark fact that I investments that will support the wouldn’t call a red carpet welcome. airport’s ability to bring in new business and create wealth Glasgow Prestwick Airport was for the region. already facing a number of challenges and this made that challenge even Locally, the airport and its plans to greater. However, I have never become the UK and Europe’s first doubted that this would be a spaceport could benefit from challenge that the business would investment from the ongoing bid be able to overcome. by South, North and East Councils for an Ayrshire Growth Deal. Since joining the board, I’ve been Nationally, the Scottish Government is focussed on bringing together a team looking to reduce Air Passenger Duty. We are fortunate to be able to with the knowledge, expertise and navigate these changes with the experience to harness the goodwill On a UK and European level, we are stability that Scottish Government of our stakeholders and drive the still awaiting clarity on how Brexit will loan funding gives us. This loan business forward to become a impact upon the aviation industry – funding is set in the context that profitable and sustainable airport including open skies, border controls, the Scottish Government would like for the long term. travel behaviour and the economy. to see the airport return to private Each airline has a differentiated ownership as soon as practicable I’m glad to say that under the exposure to the post Brexit and it has been made clear that this guidance of our new Board, we were environment and the Board has should be done in a way that ensures able to minimise the damage of this identified key risks and opportunities that any new owners share the reduction in passenger numbers and as we move towards the same long term vision to have when taking in to consideration European exit date. an operational airport in Ayrshire accounting factors like impairments, for generations to come. we have made a reduction in In our market place we are noticing a operating losses. decline in dedicated cargo movements with the move towards belly hold It should be noted that under the cargo and combi aircrafts. On the direction of the Board, the Executive passenger front, charter airlines are Team has achieved budget for the last looking beyond the short haul market two years. I believe that the airport that has become fiercely competitive Andrew Miller, Chairman has turned a corner and that we are with the rise of low cost carriers. now moving in the right direction. Technology is changing the way that consumers interact with airport retail The Board has made it a priority to and concessions. Also the security of reset the strategic horizon and focus the airport drives ever increasing costs the business on achieving these goals. to ensure safety and compliance for The airport has suffered through a our customers. These are only a few number of changes in ownership in examples to give a flavour of what the past and, as such, it was difficult Glasgow Prestwick Airport will be to make long term plans. facing over the coming years.

6 Chief Executive Officer’s foreword

Often when someone enters a new We are starting at a lower point than post, they are judged on what they expected. Changes to airline strategy do in their first 100 days. In my first resulted in our passenger numbers 100 days at Glasgow Prestwick decreasing significantly and forecasts Airport, I clearly saw that we urgently based on market conditions at the needed to focus on winning new time have not materialised. However, business, whilst improving our current I believe that we are have levelled out services to our existing customers. and that we are starting to turn the This led me to making a significant corner. For the first time since 2007, investment in the Business we will see an upturn in our passenger Development function. numbers when we produce our annual accounts for financial year Not surprisingly, our plan to turn the ending 31 March 2017. airport around has a major focus on increasing revenue. This theme is very I’m pleased to say that this upturn isn’t much reflected in this document, exclusive to our passenger business – where you will notice that the biggest the good news carries over into our The airport has had a turbulent past. section is all about bringing in business. property – with an increase in our This strategy is the reset button and it occupancy levels of 25% since March is this focus and the direction that will Whilst all the teams here are adept at 2016 – and Fixed Base Operations – deliver a profitable and sustainable operating lean, we have seen a lack where we recently secured a US airport for the long term. of investment into infrastructure and Government fuel contract resulting in assets over the years so there isn’t much additional revenue. Our employees, partners and the wider room for making savings – if anything, community that we play an integral we need to make more strategic Whilst our plan, as I have described it, part in, have been right there with us investments to enable us to realise represents an exciting programme through our challenges. We are very our vision in the highly competitive going forward, we are not simply grateful for the ongoing support that marketplace that we operate in. looking to incrementally build on we receive and I hope that this business. We are working on the document gives you all the confidence Glasgow Prestwick Airport has the most opportunities that could become that we are here for the long haul. diverse service offering of any airport in international game changers. This Scotland. It also has a number of unique includes things like becoming the UK advantages, including our abundant and Europe’s first spaceport. land bank and the ability to adapt our operations quickly as we manage many We will be reviewing and updating the of the functions in house. We will be strategy annually to take account of what looking to build upon the things we do we have achieved, what has changed Ron Smith, Chief Executive Officer best thinking creatively about how we around us and what new opportunities get even more value from our resources. there may be for our business.

This strategy is an opportunity to give an overview of what we are working on and what we will be driving forward over the next five years. It is an opportunity for us to review where we have come from, what has changed around us and to establish a starting point – a benchmark – that we intend to build from.

7 Financial year Glasgow Prestwick 2015/16 Airport: Handled 624k passengers 624k

Processed 11,409 tonnes of cargo 11,409

Facilitated 23,929 aircraft movements 23,929

8 About us Glasgow Prestwick has the \ longest commercial and parallel taxiway in Scotland and is the only airport in Scotland with a rail station on site.

Glasgow Prestwick Airport is proud to be the longest serving commercial airport in Scotland.

The airport has always offered a diverse range of services and continues to do so with the widest aviation offering of any airport in Scotland. These services include passenger, charter, dedicated cargo, training flights, executive, military and general aviation. The airport has a large property portfolio on its 356 hectare site and hosts a selection of maintenance, repair and overhaul facilities as well as HM Coastguard Search and Rescue on the airfield.

Many of the services we offer are unique to Scotland and the north of England – in particular our ability to handle a range of specialist and large scale cargo. Glasgow Prestwick Airport has the There are six public car parks with Together with companies based longest commercial runway north 4,012 car parking spaces, with the in and around the airport, Glasgow of Manchester at 2,986 metres, ability to extend by a further 3,000 Prestwick supports in excess plus a second runway of 1,829 spaces if required. In addition to the of 4,500 jobs. metres. This allows all types of public car parks, the airport has a aircraft to be accommodated in further 553 car parking spaces for In 2014, Audit Scotland reported that most environmental conditions. tenants and employees. the airport contributes £61.1 million to the Scottish economy. Glasgow Prestwick Airport handled a The passenger terminal has capacity single cargo load of 124 metric tonnes for up to four million passengers The airport is looking to build on this on to an An-225 (the biggest cargo per annum with 18 check-in desks, significant contribution by developing aircraft in the world) through its ten gates and 12 stands. all of its business areas to increase bonded warehouse. This was the employment opportunities, trade and largest single cargo load ever In addition to the main terminal, tourism in Scotland. to fly from a Scottish airport. executive and military passengers can be processed at our Fixed Base It is also looking to build on links with The airport is located 30 miles south Operation accommodation, which the aerospace cluster, by fostering an west of Glasgow – Scotland’s largest benefits from a dedicated UK Border aerospace hub in Ayrshire and city and economy and within 60 Force Immigration Clearance facility. securing a licence to become one of minutes’ drive for 2.1 million people. the UK and Europe’s first spaceports. The airport directly employs more The airport has excellent surface than 300 people who facilitate the If the airport successfully secures this connections. It is the only airport in 24 hour a day, seven days a week, licence, it could lead to the creation Scotland with its own railway station 365 days a year operation across of 2,000 additional jobs and with 30% of passengers arriving at all our service areas. generate a further £320 million the airport by rail, and it is directly for the UK economy. accessible from the Scottish motorway network via the M77. 9 Our timeline

1920-30s 1940-50s 1960-70s

The airfield is founded by David World War II, the airport is used by A new terminal building, cargo McIntyre and the Duke of Hamilton the as a military base. building, control tower, loop road – members of No.602 City of Glasgow around the airport and longer Auxiliary Air Force Squadron. Scottish Passengers travel through the airport runway are launched. Aviation Limited is launched. once again from 1946. Glasgow Prestwick Airport is the only airport in The runway extension was The airfield’s founders are the first Scotland offering transatlantic flights. implemented to serve the US Air Force. aviators to fly over Mount Everest. The military returns in the form of the The airport welcomes its first jumbo jet The airfield becomes an airport with Air Force. Elvis visits and and the prototype for Concorde makes the addition of passenger facilities. makes the airport the only place an appearance at the 1972 Airshow. where he steps foot in the UK. The airport is used as a training Aircraft design and manufacturing facility for Concorde pilots. commences – the aerospace industrial footprint at Prestwick is formed. A National Centre opens to control Scottish airspace.

10 At the heart of Scotland’s aerospace industry, with \ over 50% of the country’s aerospace workforce employed at Prestwick.

1920-30s 1980-90s 2000-10s Looking forward

British Aerospace based at the The airport hits 2.5 million passengers The airport is purchased by the airport, manufacturers of airplanes per annum and its cargo and military Scottish Government in 2013 who including Jetstreams, receive customer base continues to grow. see the facility as an important the Queen’s Award for Export infrastructure asset that helps to Achievement 1985 and 1986. The airport welcomes world leaders support in excess of 4,500 jobs They also establish their own for the 31st G8 summit. in the west of Scotland. flying college at the airport. Spirit AeroSystems (Europe) Limited is It continues to offer aviation services The airport welcomes low cost established in Prestwick. Spirit Europe to a wide range of customers. airline Ryanair – which has grown is one of the largest airframe to become the world’s largest suppliers to Airbus and is a key It is the heart of Scotland’s aerospace airline by passenger numbers. supplier of major wing structures industry, with over 50% of the for Airbus and Boeing programs. country’s aerospace workforce Prestwick International Aerospace employed at Prestwick, offering a Park opens – enabling Prestwick diverse range of aviation services to maintain its position and providing vital connections as a major aircraft servicing to the rest of the world. and engineering base. Glasgow Prestwick Airport secures a spaceport licence.

It is a profitable and privately owned commercial airport.

11 Our Board

Andrew Miller Gordon Arthur Ken Dalton Bob Goldfield Jayne Maclennan Non-Executive Non-Executive Non-Executive Non-Executive Non-Executive Chairman Director Director Director Director

Andrew brings 40 years Gordon was Director Prior to retirement in 2011, Bob started his career as an Jayne is a Chartered of experience in aviation, of Corporate Affairs at Ken was Chief Executive of aircraft engineer. He then Surveyor who until retail and management Standard Life for seven Global Building Engineering moved on to other military recently held the post consultancy. years, where he was firm AECOM Technology aviation operational roles as Group Director of responsible for the Corporation (NYSE: ACM), before joining the civil property with First Andrew started his career communications a $7 billion global, aviation industry. Group plc, a leading at British Airways at campaigns that supported professional and technical international passenger Heathrow before moving the demutualisation and services company. From He has held positions as transport company. to Price Waterhouse subsequent flotation of the 2001-2010, Ken was CEO of Airport Director and Coopers. Positions in company in July 2006. AECOM Europe with 4,500 Managing Director at three She was also involved retail followed, including employees in architecture, in the UK and with the redevelopment periods as Managing Gordon was part of the engineering, transport, Ireland. He also held the of before Director of a Dixons Stores Executive Team for the water and management post of Airport Manager, the Group diverted its Group subsidiary and hugely successful Glasgow services. The company was Operations and Technical interest. As an experienced Regional President for the 2014 Commonwealth consistently recognised in Administration at Hong Non-Executive Director, Pacific Region for the Games. He was responsible the Sunday Times and Kong . Jayne holds posts on the world’s largest Duty Free for developing the strategy Financial Times ‘Best Boards of retail operator. for the organising Companies to Work For’. His last full-time post was Harbour Board, LocatED committee with the games Chief Executive of the Port and executive board of Andrew returned to partners, setting its vision, Ken is a graduate of the of Dover, Europe’s busiest the Royal Air Force. Aviation to work with Air values and objectives and University of ferry port. Bob holds a New Zealand where he was responsible for all and is a Non-Executive Master’s Degree in Air Jayne is also joint owner rose to be the Chief communications and Director of University Transport Management of MacLennan Norman a Operating Officer of their marketing for the Games. of St Andrews. and a Doctorate in company specialising in Global Aviation Business. Business Administration. strategic consultancy, Gordon is the Owner and He is also a Fellow of the mediation and executive For the past 10 years, Director of Roundtable Royal Aeronautical Society. coaching in the private, Andrew has worked as Consultants. He is also a public and third sectors. an advisor in the broader Non-Executive Director on field of aviation with clients the Board of UK Athletics. ranging from airlines, governments, tourism bodies, pension funds and investment banks.

12 Our Executive Team

Ron Smith Derek Banks Jules Matteoni Sonia Rafferty Mike Stewart Chief Executive Finance and Operations Human Business Officer Commercial Director Resources Development Director Director Director

Ron joined the airport Derek is a Chartered With 21 years’ experience With more than 18 years’ Mike was Board member in May 2016 following Public Finance Accountant in the aviation industry, experience in Human and Managing Director of a period as General with more than 26 years’ Jules is an accomplished Resources at a senior British Airways Regional Operations Manager experience of working aviation leader. level across the aviation Cargo, which was bought for CHC Helicopters in finance at senior and manufacturing over by Worldwide Flight Aberdeen. In his time management level and Jules joined Glasgow sectors, Sonia oversees Services – one of the with CHC, Ron delivered a has joined the airport Prestwick Airport more the airport’s Human largest airport ground new hangar, terminal and from the Scottish than 20 years ago. His first Resources, Employee handlers in the world. class leading operations Qualifications Authority, roles at the airport were in Development and centre to establish a new where he was Deputy the in-house Fire Service. Engagement and Safety, Worldwide Flight Services CHC Helicopter base at Finance Director. Prior Health and Environment. offered Mike the role of Airport. to this he worked in Having delivered Commercial Director. In further education and significant operational Sonia has led Human this role he secured a Prior to this, Ron was the for the NHS. improvements in the fire Resources for 16 years number of lucrative Managing Director of operations, Jules areas and in this time has airline contracts within James Walker UK Throughout his career, of responsibility grew successfully led our the UK before embarking Limited, a UK based Derek has been involved to encompass Passenger people through periods on a successful project to global manufacturing in managing significant Handling, Ground of change. establish Worldwide organisation that supplies budgets. In his previous Services, Motor Transport Flight Services operations a range of fluid and gas roles he has faced and Security. Sonia is a Member of across . sealing solutions and considerable financial the Chartered Institute of associated knowledge- challenges and has been Jules has recently taken Personnel Development Mike joined the airport in based services to a wide required to work with up the post as overall (CIPD) with a qualification January 2016 following a range of sectors including colleagues to develop Operations Director for from University of period as an aviation oil and gas, aerospace, new cost and pricing the airport, which Strathclyde. Sonia is a consultant where he was power and defence markets. models, maximise income oversees Compliance, qualified paralegal in engaged in high profile and develop sustainable Engineering, Airfield employment law, has aviation related projects Ron has a fellowship for commercial relationships. Operations and Air Traffic a Diploma in Neuro including securing the the Chartered Institute of Control all falling within Linguistic Programming prestigious American Marketing and is a member his new remit. and a qualification in Airlines contract on behalf of the Institute of Directors. Train the Trainer. of Airworld Global Ltd, a brand new General Sales Agent in the UK market.

13 Our Services

Passenger aviation Maintenance, repair and Search and rescue base overhaul (MRO) Glasgow Prestwick Airport currently Ltd operates serves in excess of 2.1 million people On-site there are two heavy search and rescue helicopter services who live within 60 minutes’ drive maintenance repair and overhaul from Glasgow Prestwick Airport on of the airport. The airport offers facilities. This includes a facility for behalf of HM Coastguard. The Search routes to a number of international Ryanair, operating across five bays and Rescue base operates 24 hours destinations. The airport has facilities within two purpose built aircraft a day, 365 days per year using two designed for up to 4 million hangars. The other facility is the state-of-the-art Sikorsky S-92 passengers per annum. European Headquarters for Chevron helicopters equipped with the Aircraft Maintenance Limited. latest search and rescue technology, Car parking and concessions including night vision, mission Training management and on-board Glasgow Prestwick Airport operates medical capabilities. its own passenger car parking. The superb weather conditions, clear The airport has a number of airspace, lack of congestion, length Commercial property and concession contracts offering of runway and the availability of development opportunities passengers catering, duty free, retail, take-off and landing over sea and car hire and money exchange outlets agricultural land ensures that Glasgow The airport has a range of property on site in both landside and airside. Prestwick Airport is one of the most available for businesses including popular and established training offices, specialist properties, Cargo airports in the UK. warehousing and hangar space. The footprint of the airport is 356 The highly skilled team in the Emergency responsiveness hectares – with a substantial amount dedicated cargo processing facility of this available for suitable has experience of handling specialist, The airport is open all year round, aerospace developments. large scale, high volume and quick 24 hours a day, 7 days a week turnaround cargo jobs. and operates at Fire Category 7. NASA partner

Military and executive aviation Glasgow Prestwick Airport is one Glasgow Prestwick Airport is a of only two tier-one airports in the current NASA partner that welcomes Business aviation, military, medical and able to take aircraft astronauts returning from space, via recreational flights can all be handled in the case of security emergencies. . The airport provides quickly and discreetly on a dedicated The airport actively organises regular space to NASA for hygiene facilities, secure apron, supported by a remote training and verification exercises with health checks and rehabilitation. immigration clearance facility. partners and other key organisations to ensure the highest levels of Host for industry Fuelling and other preparedness are in place to deal aviation services with such emergencies. The existence of the airport – along with its long history in aviation – Located on the Great Circle Route As a commercial airport, all necessary enables it to play host to a number between North America and the emergency plans are already of aviation and aerospace companies Middle East, and being the first prepared and in place. A further and other auxiliary services. Neighbours mainland airport between the USA advantage in any emergency situation already include BAE Systems, Spirit and Europe, Glasgow Prestwick is the airport’s proximity to hospitals, Aerospace, GE Aviation, UTC Aerospace Airport is ideally located for fuel including Crosshouse and and National Air Traffic Control (NATS). stops. The airport is able to Hospitals, both of which are offer in-house de-icing and a full within 20 minutes’ drive. The airport is working with South range of apron services. Ayrshire Council and Scottish Enterprise to develop and establish an aerospace and space hub at Prestwick for global businesses 14 operating in these sectors. 15 Our external operating environment

Glasgow Prestwick Airport is - through The airport is wholly owned by the Environmental context experience - very aware of the Scottish Government and is operated at relationship and sensitivity there is an arm’s length on a commercial basis. Demand for air transport is continually between changes in the external The airport is accountable to the growing. It is the responsibility of environment and its operations. shareholder through its board structure. airports and the wider industry to minimise and reduce the impact that In the passenger side of the business Following the Smith Commission, the this will have on the environment alone, the airport gained from the Scottish Government now has the in relation to noise and pollution. proliferation of low cost carriers power to make changes to Air following the deregulation of the air Passenger Duty. Any changes to this There are major national and global industry in Europe and the move to tax could have a significant impact on initiatives underway to address this online booking platforms. This gain all Scottish airports’ business – including air space redesign across enabled the airport to reach a peak development discussions. the United Kingdom. of 2.5 million passengers in 2007. The policies that enable us to operate Technological context It then suffered following the 2008 as an aerodrome and that will enable economic downturn, which had a us to apply for a licence to operate as There are opportunities to apply new significant impact on passenger a spaceport come from the UK technology across all areas of volumes. As a consequence, low Government and European level. The Glasgow Prestwick Airport’s business cost carriers made changes to their UK Government is responsible for the including new security screening strategies and a number of flights Border Services that are essential to technology and the use of digital moved from traditional low cost the airport’s operations. platforms to engage with carrier hubs to city airports. passengers and customers. The impact of the recent Brexit Understanding and continually vote on this legislation is yet Although long term these could monitoring the external environment to become apparent. deliver increasingly efficient and will be fundamental to the airport’s effective services. In the short term future success. The UK Government recently announced they will require significant its support for additional runway investment, some of this technology The Executive Team has carefully capacity to be developed at Heathrow. may become a statutory requirement. considered this external environment This decision has allowed the UK in development of this strategy. Government to move forward with the Social & market context However, the environment does not development of an updated Aviation stand still and the airport is working Strategy for the United Kingdom. Air travel in the United Kingdom to be ready for and reactive to continues to increase. The any changes to take advantage of Economic context forecasts opportunities, minimise and mitigate the South East airports could be full any threats that these changes may The UK Brexit vote and the recent US from as early as 2025. pose to its plans for the future. Presidential election have resulted in major changes to the value of There are trends developing around Political & policy context currency and in turn the price of changes to consumer behaviours in goods and services. relation to air travel in Scotland and There are touch points at Local, the UK. There is a shift towards rail for Scottish, UK and European This has the potential to impact on passengers travelling to London and Government levels. economic growth within the UK. there has been a reduction in travel However, the lower value of the for sun, sea and sand breaks and an Local Government plays a key role in pound may present increased value increase in city breaks. development planning for the area, it for international investment. is also pursuing a growth deal, in which the airport features, and it is a key consultee on areas like air space redesign and the spaceport licensing. 16 West of Scotland: 68,555 enterprises with a combined turnover of £9.43 billion employing 766,400 people Glasgow & Strathclyde: Gross Domestic Product €57.6 billion 17 Our vision To be the airport \ recognised for going beyond traditional boundaries to offer customers opportunities, solutions and best value in serving Scotland, the UK and the world.

Our purpose Return the business to \ private ownership with a sustainable future as an airport.

18 Our values

Safety, security & Passionate Trustworthy sustainability at & people centric & straightforward our core

We work hard to ensure that we have We care deeply about everything we We are honest, dependable, the right processes, procedures and do and the people who enable us professional and personable. We resources in place to enable us to to do it – our community, partners, want to make interactions with our operate efficiently, effectively and in employees and customers. A shared business easy and enjoyable for the confidence that we are protecting passion is at the heart of our working our customers, people, suppliers, our people, customers, community relationships and we look to nurture, community and shareholder. and partners whilst minimising our develop and harness this to increase impact on the environment around us. productivity, profitability and secure our long term sustainability.

Innovative Flexible Guaranteeing & collaborative & resilient great value

A pioneering spirit led to the establishment of our airport and The market we operate in is dynamic We want everyone who comes the aerospace industry that has and moves rapidly and we are ready in to contact with us to feel like it developed around us. We want to to react. We have a broad business was worthwhile, whether that is build on this, to look to the future and base with a wide service offering a passenger passing through our find new ways of working as a team and range of knowledge, skills and terminal or a colleague looking for and with partners to make positive experience. Through managing and assistance from another member of contributions to the economy and delivering many of our services in- the team. We want to make sure that society as a whole. We are a business house, we are able to adapt to deliver every penny counts, every action counts that doesn’t stand still – we want to a service that will help customers to and every customer feels satisfied. diversify and continuously improve. meet their aims and objectives. 19 Strategic objectives at a glance

Glasgow Prestwick Airport has six core strategic objectives that will enable us to deliver on our vision & purpose.

Bringing in Continually Making people / business / compliant / a priority & staying safe, secure & sustainable

Grow all of our revenue To deliver sustainable, safe, Have the right people, with streams to deliver a and top quality services to the right skills, in the right sustainable business resilient all of our customers, whilst roles at the right time to market changes, including continually looking for ways to give our business a securing the licence to in which we can improve competitive advantage. become the first spaceport our efficiency, effectiveness in the UK and Europe. and customer experience.

20 P22 P36 P42 Financially Building Attracting / fit / networks & / investment relationships

Ensuring that financial Work with partners and Seek external investment to services are fit to support stakeholders to further our accelerate the pace at which the business to develop, grow, business objectives and we return the business always offer our customers to play a positive role in to a sustainable and best value and ensure that the communities that profitable future. we make every penny count. we are part of.

P48 P52 P56 21 Bringing in business

22 Grow all of our revenue streams to \ deliver a sustainable business resilient to market changes, including securing the licence to become the first spaceport in the UK and Europe.

Glasgow Prestwick Airport has bolstered business development across its full product and service offering.

A centralised Business Development team has been created to ensure that there is a coordinated approach to promoting the airport.

This new team has dedicated resources focussing on identifying potential opportunities, building relationships and bringing in new business for each product and service area.

The team is working together to share knowledge, experience and learning and to identify where there could be potential for overlap across different business areas that could enable the airport to sell itself more effectively and be more efficient.

Bringing in business – key indicators

- Passenger numbers

- Cargo tonnage

- Movements

- Spend per passenger

- Car park booking numbers

- Occupancy levels

- Secure a spaceport licence

- Revenue generated 23 Bringing in business

Passenger

Glasgow Prestwick Airport is the closest airport for over half a million people and is accessible to 2.1 million people within a 60 minute drive. Glasgow It has the best surface access links of all the Scottish airports M8 Motorway due to its excellent location 1 hour journey directly off the M77 motorway M77 Motorway and its railway station, which 35 minute journey can be accessed from the terminal building.

Glasgow Prestwick Airport is the Glasgow only airport with a rail connection Prestwick in Scotland. This provides the Airport opportunity for those who do not drive, or have access to a vehicle, to easily and cost effectively connect with air travel.

The west of Scotland has an attractive Creating connections for The new Executive Team believes that tourism offering with world class the west of Scotland the airport has a role in providing sailing, golf courses, food and drink, wider connectivity through creating shopping, hotels and scenery. In order to deliver against its purpose routes to hub airports, from which of long term sustainability, it is vital its catchment area could benefit Glasgow and the west of Scotland that the airport expands its airline from onward connection options. has a growing economy that hosts customer base. As such, business a wide range of industry – including development activities in relation The UK Government is in the process events, life science, further education, to passengers are predominantly of establishing a new aviation research and aerospace. focussed on attracting new airlines. strategy, which through discussions with the Department for Transport Building on existing business Through creating completely new will be likely to include objectives routes for the west of Scotland, any around ensuring that there Glasgow Prestwick Airport has a incoming airline could also benefit is access for all to air travel longstanding relationship with Ryanair from destination marketing support and improved access to and currently has 17 routes available to from agencies like VisitScotland international connections. destinations across Europe. and Glasgow Life. Glasgow Prestwick Airport will be On the launch of the winter 2016/17 Any new route at Glasgow Prestwick suggesting that everyone in the UK schedule, Ryanair stated that they are Airport would also receive free rail travel should have the option of international able to increase passenger numbers by for its passengers for the first six months connectivity via air travel within one 12% at Glasgow Prestwick Airport year of operation of the route. This would hours drive of their home and that this on year. then move to standard half price rail should be included within the UK travel offer for all passengers flying to or Government’s Aviation Strategy. The airport is working closely with from Glasgow Prestwick Airport. Ryanair to enable them to achieve this Vital connections for growth by increasing the frequency of The team is gathering data including our local community routes and identifying route information on travel patterns and opportunities. This includes the possibility economic data to identify routes that The airport has already stated that it of offering packages for attractions in the could be viable from the west of is working to secure a connection to west of Scotland to stimulate inbound Scotland, especially those where a direct London for the local community. 24 travel to the Ayrshire area. connection does not already exist. Customers from Ayrshire should not need to drive past their local airport Existing to another airport to reach London. routes

Civil Aviation Authority (CAA) figures show that the number of people travelling from the Ayrshire area to London could sustain a daily route.

To be a success, the airport must find the right airline partner, route and schedule to meet the needs of the local community – in particular Pisa business travellers. Barcelona Reus Rome Palma Creating a balance between Corfu inbound and outbound Fargo Ibiza Malaga Murcia Glasgow Prestwick Airport is working Malta to identify new links that bring Tenerife, Lanzarote, Gran Canaria, Fuerteventura business people and tourists in to the west of Scotland. This will not only bring valuable inward investment but Total Passenger Numbers it will give the airport a more resilient passenger mix. 2.5

Serving industry 2 Glasgow Prestwick Airport is at the heart of a wider aerospace manufacturing campus. This includes 1.5 businesses such as GE, BAE, Spirit Aerospace, Woodward and UTC. Millions All of these businesses have travel 1 requirements and many will be travelling to similar aerospace hubs in other cities and countries. .5

Through understanding where some of these destinations are and what 0 wider markets exist for travel to these destinations, the team can use this FY13/14 FY14/15 FY15/16 FY16/17 FY17/18 FY18/19 FY19/20 FY20/21 FY21/22 as the foundation for discussions with prospective airlines for whom these routes might align with their strategies.

The airport will look to widen this where there is a proliferation of an industry within Ayrshire or any other areas for whom Glasgow Prestwick Airport is the closest airport. 25 Bringing in business

Cargo

Glasgow Prestwick Airport manages Oil & Gas Events dedicated cargo aircraft as its passenger airline does not facilitate The airport benefits from regular The team has identified that Scotland, belly hold cargo. The wider cargo business from the oil and gas industry. particularly Glasgow and the west, market is moving more and more However, with the challenges that this has a thriving event industry. This has towards belly hold. This is a further sector is facing, Glasgow Prestwick been bolstered by the development reason why the airport is focussed Airport is noticing a slowdown in the of world class venues like the SSE on bringing in new passenger airline movement of oil and gas equipment Hydro (the third biggest music arena customers as this could possibly through charter air cargo. in the world in terms of ticket sales) provide opportunities for cargo. and the success of the Glasgow 2014 The airport team will continue to Commonwealth Games. As the airport works to secure maintain relationships with additional passenger aircraft, it is stakeholders in this sector to ensure The airport team is looking to work with also looking to build upon its existing it capitalises on any market upturn. venues and agencies – including dedicated cargo business and its EventScotland – to attract these major experience in handling specialist, To sustain growth the team is looking to events to Scotland to enhance the large scale and just in time cargo. other markets that would benefit from country’s overall event offering and to the expertise developed through deliver against the national ‘Scotland The airport facilitates scheduled serving the oil and gas industry to – the perfect stage’ strategy. movements for CargoLux and move large items, large volumes Air KLM Cargo. It also and with just in time delivery. Key to these movements is turnaround supports charter cargo flights time, as often there is only a matter of on a regular basis. Aerospace days between tour dates. As Glasgow Prestwick Airport operates 24/7 it is As with its plans for developing The airport team has identified ready to receive goods at any hour. passenger airlines, in order to achieve opportunities in servicing the local The airport’s multi-skilled staff are able sustainability, the airport is keen aerospace market’s air passenger to bolster cargo operations at short to build upon its existing business requirements. There could also be notice to handle the large volumes by increasing the movements with opportunities in servicing their cargo involved in these movements. existing customers and bringing requirements. The companies in more scheduled and surrounding the airport manufacture The airport’s proximity to Glasgow charter cargo airlines. aircraft parts, including engines and and beyond via motorway and trunk wings. Although air cargo is roads make it the ideal entry or Scotland’s dedicated competing with road, rail and sea departure point for this equipment. cargo airport in relation to these movements – the close proximity of the airport Consolidation The airport has a number of to the manufacturing point could advantages when it comes to produce efficiencies that make air A challenge for Glasgow Prestwick dedicated cargo movements travel the best value. Airport in growing its cargo business is to, from and via Scotland. the ability for cargo airlines to balance As part of the work to develop the loads. This means where an aircraft The airport is open 24 hours a day, Prestwick Aerospace as a campus, comes in with cargo, it must be able to 7 days a week, 365 days a year. It where companies based in and fill that same aircraft with cargo for its has the facilities, equipment and around the airport work together to return or onward journey. experience for high volume, their mutual benefit, the airport team high value and large scale is building relationships with the key A way in which an airport can help cargo movements. decision makers in these organisations. to achieve this, is by creating some kind of consolidation point for It is ideally located at the halfway Through better understanding how imports and exports. point on the Great Circle Route these companies operate, Glasgow between the US and Middle East. Prestwick Airport intends to develop a cargo solution to meet their needs. 26 Glasgow Prestwick Airport's location on the Great Circle Route

The team at Glasgow Prestwick Airport is assessing imports and exports from Scotland, and mapping where these goods are arriving from or going to and identifying where there could be balanced payloads.

A key export sector in Scotland, that the airport is looking to build relationships with, is the food and drink sector. There are a number of high volume and short shelf life food exports – for example fish – where air cargo could present an option that is more reliable than other options. This industry has faced problems with using road haulage to get goods to Europe as a result of closures of the Channel Tunnel.

The Scottish Government signed a Memorandum of Understanding with Heathrow in September 2016. It outlined that the Scottish Government Cargo Tonnage would offer its support for the expansion of Heathrow and Heathrow 20,000 would commit to the use of Scottish 18,000 engineering, manufacturing and construction, creating extra 16,000 connectivity between Scottish airports 14,000 and Heathrow and exploring options for the establishment of a logistics 12,000 hub at Glasgow Prestwick Airport. 10,000

The UK Government announced its 8,000 support for the expansion of Heathrow 6,000 in October 2016. Soon after this 4,000 announcement, the Heathrow team visited Glasgow Prestwick Airport 2,000 to commence discussion as to what 0 would be required from this potential 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 logistics hub. Financial Year The potential hub would be used for the consolidation and movement of goods and prefabricated parts from across Scotland, the north of England and Northern Ireland.

The team at Glasgow Prestwick Airport will be working over the course of 2017/18 to build a partnership with Heathrow. 27 Bringing in business

Fixed Base Operations & other income streams

Fixed base operations Improvements to executive The airport is working with & General Aviation aviation facilities a number of these businesses to engage with corporate tourism agents Glasgow Prestwick Airport has been The FBO team aims to offer a fast to sell the overall package of Ayrshire the site of an airfield for almost 100 and discreet service to its executive as a premium corporate tourism years. It started life as a training aviation customers by arranging pick and event destination. airfield and over time developed in to up and drop off directly from their a manufacturing and military base. As aircraft. However, this service could Group & business travel a result, many of the services offered be enhanced through improvements through fixed base operations (FBO) to some of its executive facilities – Along with the Business Development and general aviation services are the providing a premium space for these team’s analysis of business travel airport’s original offering. customers to work or relax if they requirements that could support the arrive at the airport early for their creation of a scheduled passenger This business area facilitates the flights. Upgrades to this facility would route, the team is also looking movement of executive, military, also enable the FBO to accommodate at the destinations that may training aircraft and newly built or larger private parties. have a smaller demand. purchased aircraft in transit. Premium & corporate tourism This information will be used, with The timeline for securing business alternative travel options to these through the FBO and for general There are a number of high quality destinations, to assess if there are aviation is much shorter than passenger hotels, resorts and attractions in any opportunities to bring together and cargo and, as such, successful Ayrshire and along the west coast business journeys on a private charter. business development in this area can including Turnberry Resort, Glenapp have a much more immediate impact Castle Hotel and Dumfries House. The airport is exploring other charter on our revenue. Glasgow Prestwick Airport is looking group travel requirements. For to develop partnerships with these example, sports teams, where it can The airport brought this service tourism businesses to create unique offer improved service levels through in-house in January 2015 and since product offerings. its dedicated immigration clearance has made investments into a Business facility and discreet and direct access Development post to cement These offerings could include to aircraft through the FBO facilities. relationships with existing customers facilitating private aircraft travel to and to bring in new business. It has the area and helicopter transfers invested in facilities, including the directly to the accommodation. creation of a dedicated immigration clearance facility for FBO customers. 28 Scottish event industry worth £3.5bn a year North Sea oil contributes £35bn to the UK economy Food & drink exports worth

£4.8bn 29 Bringing in business

Fixed Base Operations & other income streams

Maintenance, repair & overhaul The airport will be looking for Know what is moving where opportunities to act as a In January 2017, Chevron Aircraft sub-contractor to larger companies Glasgow Prestwick Airport’s location at Maintenance commenced operations contracted by governments and the midway point on the Great Circle at Glasgow Prestwick Airport. military forces. This will include Route means that there is a high exploring opportunities that may come volume of traffic passing overhead. This facility serves as an additional selling off the back of the UK Government point to attract military, executive and Strategic Defence and Security review, Its positioning makes it a prime location general aviation customers. The airport which will involve a £100m investment for a fuel stop ahead of or following a team is actively referring its existing by Boeing in Scotland. transatlantic crossing. This position and customers to the Chevron team and the MRO facility on site also make it an will look to build relationships with Building relationships ideal place for tech stops. Chevron’s customer base. A high volume of movements through The airport is working to capitalise Securing long term contracts the FBO do not fall under contracts. As on this further through developing such, it is important that the Business a better understanding of what is In 2016, Glasgow Prestwick Airport Development and FBO teams have passing overhead and targeting secured a US Defence Logistics relationships with potential repeat any organisations responsible for Agency fuel contract. This contract customers. This helps to ensure that regular overpasses. offers certainty on Glasgow Prestwick Glasgow Prestwick Airport is at the Airport’s margin on fuel supplied to forefront of their mind when passing In addition to analysing what is US forces and streamlines the over the United Kingdom and that it already moving overhead, building processes for units to stop and refuel becomes their preferred stop off point. wider industry knowledge will enable at Glasgow Prestwick. The airport is the Business Development team to already seeing an upturn in business The team proactively attends events to identify opportunities – for example, from this contract. target potential customers. The FBO understanding who is ordering aircraft team ensures that as customers pass and when and where these are being The team will be actively seeking through, they receive a high quality and delivered in the event that Glasgow and tendering for more long term personable service and one that is Prestwick Airport could be contracts with military forces with followed up by Business Development. offering fuel stops. CAA clearance to stop at UK FBOs. This will include contracts for military training exercises.

30 FBO It is forecast that fuel revenues will Creating a new, more flexible, car increase year on year over the course park product offering Percentage Additional of the next five years. Year increase income In 2016, Glasgow Prestwick Airport (£,000) Longer term, the airport will seek procured a new car parking system, to develop its current fuel supply including both hardware and software. 17/18 11.8% 254,000 resilience with further development of its existing unique rail supplied Central to the specification for this 18/19 5.0% 120,000 fuel farm facilities. was increased flexibility in products, promotions and car park operations. 19/20 4.8% 122,000 Commercial The new system will be implemented in the first quarter of financial year A significant amount of income from 2017. It will include new car parking 20/21 4.8% 128,000 passenger aviation is generated via products – including a premium drop commercial activities including car off and parking option that enables 21/22 0.1% 3,000 parking, catering and retail concessions. passengers to get as close as possible The airport generates revenue through to the terminal entrance. Fuelling a contract with an agency who sells advertising sites within and This wider range of products from The airport is in discussion with Air BP surrounding the airport. budget to premium will offer in relation to its fuel provision. These passengers more choice and will discussions have already resulted in The strategy to grow scheduled encourage more passengers to book some improvements to the fuel margins passenger traffic and the associated car parking directly with the airport. for the airport to the price that we are forecasts have been taken in to able to offer FBO customers. consideration in the growth of this area The ability to adapt prices and offer over the course of the next five years. promotions will enable the airport Through offering customers better The commercial strategy ensures that we to react to changes in the external value, the team has been able to are prepared to capitalise on any market. Promotional codes will secure more business – which has passenger growth and the team is present an opportunity to assess the resulted in an overall increase to fuel proactively exploring how we can effectiveness of marketing initiatives revenue. This is proving to be generate increased spend per passenger. and target this spend more effectively. beneficial for the airport and Air BP.

The airport intends to build on this further as it continues with its contract negotiation with Air BP. 31 Bringing in business

Fixed Base Operations & other income streams

Expanding retail Promoting our products Property & catering offering In order to increase spend per Glasgow Prestwick Airport has a An immediate objective for retail and passenger, the airport proactively large property portfolio on both catering is looking for ways in which markets its retail and catering offer landside and airside across the it can improve passenger experience to its growing 100,000 person full extent of the airfield. with existing concessionaires – through database and to pre booked car refurbishments and/or adaptations to parking customers just ahead of These properties were originally product offerings. travel. It also markets promotional developed to host military operations, offers within the terminal building. aviation industry manufacturing Longer term, trends across airports companies, ground operations, suggest that passengers wish to Advertising asset improvements cargo forwarding operations progress through the check-in or and warehousing, aerospace / baggage drop processes and security The airport entered in to a contract airport supply chain and aviation as quickly as possible and Glasgow with Primesight, an advertising space service providers. Prestwick Airport must adapt. sales agency, in 2016. There is substantial office and The vast majority of Glasgow As part of this contract, Primesight meeting space within the passenger Prestwick Airport’s public space is responsible for the day-to-day terminal building on the landside. is landside and as such we have maintenance and sale of advertising limited space available for retail and spaces at Glasgow Prestwick Airport. Over the past ten years, the catering expansion airside. We will Over the course of the next five years, profile of the tenants has changed face a challenge in capitalising on this Glasgow Prestwick Airport will work and currently, the bulk of the let increase in passenger dwell time in with Primesight to invest in new properties are leased to and airside areas. advertising sites and to upgrade occupied by non-aviation and some existing advertising sites aviation related companies. As part of the wider master planning, to digital infrastructure. the airport will look to improve and As of 31 October 2016, the property increase its retail and catering offering These upgrades will start with portfolio has a capacity of 70,000m². with a focus on our airside area - the installation of digital screens creating new spaces and attracting alongside the new car park Short term, the strategy is to adopt new concessionaires to the airport. infrastructure. These screens will a more dynamic approach to filling be utilised for car park operational unlet properties to potential tenants 32 purposes and advertising. from any business sector. As of 31 October 2016, the property \ portfolio has a capacity of 70,000m².

In the medium term, there will be a Revenue from non passenger & proactive and concentrated effort cargo aviation income streams to act as an incubation hub for the aerospace, space sectors and other £18m ancillary services to ensure that the already significant Prestwick £16m Aerospace Campus can develop £14m further, using an integrated approach. £12m Long term, the objective is to convert the tenant profile to one that is £10m predominantly aerospace, space and £8m ancillary services orientated as part of a strengthened aerospace cluster. £6m £4m This sees the development of a new masterplan to meet the growing £2m needs of the business as it increases all income streams. This may include £0 refurbishment of areas, uninhabitable 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 at the moment, for airport use or for Financial Year rental to external companies.

The plan will outline the building of additional hangarage and any other structures required to facilitate business growth.

33 Bringing in business

Spaceport

Securing a licence

The UK Government announced in early 2014 that it would be looking to establish a UK spaceport by 2020 through a bid process.

The government drew up a short list of six potential sites and Glasgow Prestwick Airport was one of the front runners.

In May 2016, the UK Government announced its decision to cancel the bid process for a UK spaceport and replace that with a licensing framework. Artist impression of Glasgow Prestwick Spaceport Glasgow Prestwick Airport welcomes this as it will enable the commercial Glasgow Prestwick Spaceport would This includes building relationships with market to drive this process forward, envisage facilitating the former two spaceport operators in other countries. and it will allow for a broad range of types of operation. Glasgow Prestwick would look to commercial spaceflight operations to benefit from their experiences of be established in the UK. Glasgow Prestwick Airport is now going through a licensing process and engaging with the CAA, DfT and the establishing the required infrastructure. The types of commercial space UK Space Agency to establish and operations that the UK Government is prepare for the licensing criteria for Through playing an active part in a potentially aiming to licence include: operating a spaceport in the UK. network of spaceports from across the globe, who have different launch • Horizontally launched It is expected that Glasgow Prestwick capabilities, the airport will gain further sub-orbital spaceplane Airport will be the first fully licenced business development leads. operations for microgravity operational spaceport in the UK, experiments and passenger with minimal investment required In addition to working with other spaceflight experience to achieve this. spaceport operators, it is vital that Glasgow Prestwick Airport works with • Satellite launch into orbit from Key partner for industry space launch vehicle developers and horizontally launched operators. This is the equivalent of sub-orbital spaceplanes To accelerate the pace towards working with passenger and cargo Glasgow Prestwick’s first space airlines across our other business areas • Vertical satellite launch systems launch, the team is working to – without these operators we do not and recovery. build relationships with organisations have a space launch revenue stream. from across the space industry. 5 4 3 2 1  Modern Transport CAA, Department for Airport identifies Glasgow Prestwick Glasgow Prestwick Bill passed by Transport & UK Space capital investment Airport invests Airport applies UK parliament Agency establish required to in additional for licence regulatory framework secure licence & infrastructure further develops UK & business case Europe’s first space launch 34 Launch vehicle development and licensing Spaceport in numbers engineering undergraduates 8,000 within 50 miles of Prestwick 4 million people within 2hrs Over £150 million Enterprise Zone incentives investment in Ayrshire further and are available, with up to 100% higher education infrastructure non-domestic rates relief and over the past 5 years a streamlined planning process

of the UK’s of this 16% space industry are based workforce in and are based in around the 16% Scotland 50% Spaceport site An independent assessment estimated the investment required at Glasgow Prestwick Airport to meet US licensing requirements was less than £2m

Further stakeholders that we are Attracting visitors Glasgow Prestwick Airport has building relationships with are the commenced a programme of end users of a space launch facility. Whilst the gaining of a spaceport relationship building with the Glasgow This includes satellite manufacturers, licence could be possible within the Science Centre and the faculties and organisations that develop components, next two years, and full operational departments of Space and Aerospace and suppliers that manage the data status two years after that, an Engineering and Research at both down streamed from space. Working attractive revenue stream could come University of Glasgow and University of with these organisations gives the in the form of a Spaceport Visitor Strathclyde to look at the opportunities airport a better understanding of the Centre. Footfall statistics and that exist. We are working with South processes so that we can design our revenues generated by various Ayrshire Council and Scottish Enterprise approach accordingly. It will also present visitor centres in the UK are being on the revenues that could be prospective property tenants who may researched, but with a specific generated, not only for the Spaceport wish to be part of the overall Prestwick focus on the National Space Centre Visitor Centre but for Ayrshire and Aerospace Campus. in Leicester where the provisional Scotland through the resultant increase outline research would suggest that in tourist attraction. revenues could be highly attractive.

35 Continually compliant & staying safe, secure & sustainable

36 \ To deliver sustainable, safe, and top quality services to all of our customers, whilst continually looking for ways in which we can improve our efficiency, effectiveness and customer experience.

Continually compliant & staying safe, secure & sustainable – key indicators

- Health and safety statistics

- Customer complaints, comments and feedback

- Turnaround times

- Sustainability report

- Costs 37 Continually compliant & staying safe, secure & sustainable

Operations Surface access agreement. It will look for ways in which the two organisations can Successful airports are built on a Glasgow Prestwick Airport will look work together to support Scotrail foundation of safe and compliant to work with partners to develop and in meeting its obligations as set operations. As operational deliver a plan to improve accessibility out in the Scotrail Service Quality requirements change and business of the airport from across our Incentive Regime. plans accelerate, capital planning catchment areas. Central to becomes important to future success. this is ensuring that there are Half price rail travel to or from a range of modes of transport anywhere in Scotland, and seamless The Glasgow Prestwick Airport available for our passengers, employees, transfer of passengers via the capital investment plans include tenants and business partners. airbridge walkway connecting the improvements to the railway station, railway station to the terminal terminal building, security, the runway The airport will look to make business building, are major incentives for and apron areas and car parks. cases to the operators of the Scotrail passengers to use the excellent franchise for timetable improvements and frequent train connections Investment in infrastructure to to align these to flight schedules, to that can take less than 40 minutes improve efficiency and reduce our increase frequency of connections, to link Glasgow City Centre with carbon footprint is also a key element improve journey times and connect Glasgow Prestwick Airport. The within the planning horizon. with a wider range of end airport will actively promote these destinations within Scotland – to increase the number of passengers Glasgow Prestwick Airport will use including retaining the direct that utilise this low carbon its capital plan to not only improve Edinburgh connection implemented mode of transport. the facilities for all customers and as part of the ongoing Edinburgh passengers, but to change its Glasgow rail improvement project. The airport will continue to work approach on how business is closely with bus operators to promote undertaken at the airport. New and The airport is working to make commercially operated services and forward thinking solutions for meeting improvements to the station to support any services that the and exceeding customer requirements infrastructure, which the airport owns. airport believes are required to meet will remain at the forefront of the It will work with the Scotrail franchise desired service levels that may not airport’s outlook and planning. holder to support them in the delivery necessarily be commercially viable. of any commitments to improve the station detailed in their franchise The airport will work to promote sustainable modes of transport as much as possible. However, these are not always practicable for passengers and as 38 we grow passenger numbers, we would expect to see an increase in cars does not work with developing travel dropping off and parking at the airport. trends, where more passengers The car park operation is being designed proceed directly through to departures. to enable flexibility and increases in car As such, we will reclaim some of this parking space as required. landside space for the airside areas – expanding and redeveloping security, Terminal - Landside commercial areas and departure gates. The strategy is to return all departure Landside facilities are changing with gates to full operating status, including the advent of new technology and the appropriate facilities for Passengers changes to airline business models, with Reduced Mobility (PRM), departing products and operating procedures. and arriving. Making travel easier for those who require support and Our strategy is to simplify the assistance remains a prime focus for passenger experience and make the Glasgow Prestwick Airport and a ‘step first impressions of Glasgow Prestwick free’ operation is the target. Airport as a modern airport that is easy to navigate. Given the strategic plans to attract UK hub connectivity through domestic As part of the wider property master flight connections, the refurbishment planning, we are reviewing passenger of the former domestic channel, flows and looking to locate amenities outbound and inbound, will be in the most appropriate position for undertaken and investment in the long term. This would include facilities to support this approach will looking at entry and exit points, be made. The objective is to ensure concession locations and where we the airport puts in place a proactive have facilities like outsized baggage operational improvement programme and car parking pay points. within the departures and arrivals facilities, including the potential of Terminal - Airside non-airbridge enhanced aircraft boarding systems. The reshaping of the terminal facility continues into the airside area. The majority of Glasgow Prestwick Airport’s terminal building floor area is landside. The proportion of this split 39 Continually compliant & staying safe, secure & sustainable

Airfield & runways The airport prides itself on being at Airport can fully mitigate windfarms the forefront of new initiatives and and the airport operations remain The capital expenditure programme partners with the CAA and the safe and efficient. will continue to include investment Office of Road and Rail (ORR) to on airfield, apron and runway maintain that status. The procurement of this new system maintenance to ensure that Glasgow and technology is being funded Prestwick Airport remains compliant, Safety processes and procedures at through windfarm operators. safe and capable for all aircraft and the airport provide the framework customer operations. to drive improvements and The use of this new system will allow developments across the business considerable increases in the number As part of the revenue growth plan, areas so that safety is, and will of wind turbines that can be located a well maintained, well positioned continue to be, a behaviour and not locally, allowing Scotland to continue and long runway gives the airport an afterthought. in its drive to increase the levels a major advantage over all other of electricity generated from airports in Scotland. Radar renewable sources.

This, together with the best weather New radar technology is being Air traffic management and atmospheric conditions of any introduced at Glasgow Prestwick airport location in the UK, to mitigate the increasing Not only is the world changing around Prestwick Airport has generated a number of windfarms in and around us but the world above us is also strong track record of being an the surrounding areas that cause changing with the introduction of ultra-reliable 24/7 facility that can operational impact across the Air airspace redesign. provide excellent opportunities to Traffic Control Network. support the attraction of new This is a UK national programme customers across all targeted The new radar technology enables and airspace changes are needed to business segments. controllers to distinguish wind turbine enhance the safety and efficiency of air blade movements and aircraft traffic control in the face of sustained Compliance movements by removing any ‘clutter’ growth in the aviation industry and to generated by these turbines, enabling minimise future delays. The excellent safety record at the controller to safely navigate Glasgow Prestwick Airport and aircraft in areas where there are Glasgow Prestwick Airport has the commitment to continuous turbines present. embarked on this journey with the improvement generates high levels help of suppliers, partners and of confidence at customer, staff The aim is to have this new radar stakeholders. The strategy is to have and business partner level. development fully operational in the airspace redesign complete and 40 2017/18, so that Glasgow Prestwick implemented by 2018. The procurement of the airspace There is full recognition that there redesign service has been won by NATS is a cost in delivering some of the and this work started in January 2017. new and ongoing environmental controls, but the airport is committed Consultation with all stakeholders to be at the leading edge of including the local communities – environmental excellence. particularly those communities that may be on or near new flightpaths – Key areas include waste management is a critical part of this process. reduction, air quality improvement, noise reduction, energy, water usage and bio Planning on the consultation is diversity, in addition to a full programme underway and will start with the of reduced energy consumption and the stakeholders and local community migration to the use of electric vehicles in June 2017. as part of the ongoing vehicle replacement programme. Environment

Glasgow Prestwick Airport is fully committed to continuously improving its environmental performance, preventing pollution and in complying with all regulations and requirements that apply to the business.

To achieve this, it regularly reviews its objectives and targets to ensure it meets all legal and other environmental and public commitments.

A starting point for the future has to be that the impacts will not increase with airport growth, hence the airport is striving to reduce, in real terms, the scale and nature of all issues and impacts. 41 Making people a priority

42 \ Have the right people, with the right skills, in the right roles at the right time to give our business a competitive advantage.

Making people a priority – key indicators

- Completion date for harmonisation of terms & conditions

- Employee turnover levels

- Employee Development Review statistics

- Attendance improvement

- Employee engagement & feedback 43 Making people a priority

Ensure we have the right people, Multi-skilling Personal & professional in the right place at the right time development

A priority for the Scottish Government An advantage that we have from In addition to developing people to be when they acquired Glasgow operating in a lean way is that many able to support other business areas, Prestwick Airport was protecting of our employees are multi-skilled. we are also committed to continually employment in Ayrshire. As such, This provides the airport with a high developing employees’ core business we are committed to maintaining level of flexibility and adaptability. and specialist skills to ensure that we a headcount in the region of 300 This has enabled us to secure are operating as effectively as possible full time equivalents. business as we are able to redirect and that we are up to date on operating resources at short notice and handle principles across all disciplines. As the business shifts and develops, jobs of a significant scale. This is how we structure ourselves and something that we proactively promote. We proactively work with further where we direct this headcount education establishments, including may need to adapt and change. We are in the process of looking at all the Ayrshire College, University of the areas of the business to establish if West of Scotland and University of We are working on our approach to there are further opportunities for Strathclyde to source best value resource management and rostering to efficiencies or attracting business development opportunities. ensure that we have an approach that through multi-skilling. works well for the business but also for employees to ensure that we attract and retain the best people for positions.

44 Historical terms & conditions Corporate standards Internal communications & engagement

There are a number of legacy issues The Strategic Plan has evolved the A continued focus for the airport’s currently in place, all of which will be airport’s existing values to bring them Executive Team will be ensuring that reviewed and addressed. in line with our new brand and vision. we communicate effectively across the organisation. This will require substantial audit and In order to embed these values, analysis followed by the design of a the airport will look to develop a This will help to ensure that all company wide system to have a set of corporate standards. This employees are clear on the airport’s transparent working structure. will encompass everything that our plans for the future and their role in employees, customers and partners supporting the delivery of an airport This will involve: interact with across our business. that is profitable and sustainable for the long term. • The review of the current variable A system to monitor maintenance of terms and conditions that operate these standards will be developed and Effective internal communication will across our business an internal committee will be created to help foster a collaborative working share best practice across business areas environment focussed on continuous • The review of the salary assignment and to identify areas for improvement improvement across all areas. An process to achieve a clear and and any required action plans. additional benefit of a more proactive transparent salary banding structure approach to communicating with with roles graded to each band employees will be an increase in morale and productivity. • The review and re-planning of working practices in preparation for the business moving away from major seasonality patterns

• Implementing a culture change focusing on continuous improvement through the involvement, engagement and empowerment of people.

45 Financially fit

\ Ensuring that financial services are fit to support the business to develop, grow, always offer our customers best value and ensure that we make every penny count.

46 Glasgow Prestwick Airport operates in a highly competitive market. As such, cost control and accuracy of pricing is of the utmost importance to ensure that we are able to secure and retain business.

Glasgow Prestwick Airport is publically owned and we must ensure that the procurement of goods and services is in line with statutory requirements and in a fair and transparent way to deliver best value for the airport.

Financially fit - key indicators

- Performance against budgets

- Delivery of internal audit action plans

- Service provision to our suppliers

- Savings 47 Financially fit

Creation & embedding Improve governance & Finance systems that are of control procedures project management fit for purpose

Over the course of the next five years, Further to the work to improve The airport is exploring opportunities the airport’s finance function will financial processes and procedures, to adopt new technical solutions review policies, procedures and the airport team is developing a that will deliver efficiencies in processes to ensure that these are fit robust governance process – with financial management and create for purpose. Updates will be cascaded clear delegated responsibility levels improved reporting. through the newly created internal and approval processes for spend and communication channels, together new projects. This will be rolled out The team will work with other with employee training for more over the course of Financial Year 2017/18. businesses to identify if other fundamental changes. corporate processes or procedures Develop a programme could be incorporated to create a Procurement of internal auditing single management system. This may include human resource and The review and implementation of Glasgow Prestwick Airport has performance management functions. updated finance policies and appointed BDO to provide internal procedures commenced with the audit support on corporate activities. creation of a new procurement process. This ensures that we are operating in This will complement the audit line with statutory requirements under processes that already exist within Scottish Government ownership and security, compliance and railway that the airport is getting best value. station operations.

Where possible, the airport is looking Internal audit is central to ensuring for opportunities to consolidate that the airport makes every action contracts to deliver economies of scale. count and every penny count.

These changes may have an impact on Following internal audits, action plans the airport’s supplier network and it will be developed and the delivery will provide information and guidance of these action plans will be on these changes through the website monitored through the Finance and ‘meet the buyer’ events. and the Executive Teams.

48 49 Building networks & relationships \ Work with partners and stakeholders to further our business objectives and to play a positive role in the communities that we are part of.

50 Glasgow Prestwick Airport has a wide and diverse range of stakeholders – including customers, our people, suppliers, community, politicians, media, competitors and industry bodies.

Getting best value from these relationships and minimising risk requires careful consideration of all of these groups and a coordinated approach to relationship management.

As a publically owned business, the airport is accountable to Ministers who in turn are accountable to Parliament and is committed to sharing as much information as possible on our plans for the future and ongoing performance.

Building networks & relationships – key indicators

- Advertising value equivalent of media coverage

- Stakeholder engagement statistics

- Social return on investment

- Community perception and participation Scottish Government and London Heathrow MOU signing, Glasgow Prestwick Airport, October 2016 - Size of marketing database 51 Building networks & relationships

AOA Conference, London, November 2016

Media relations To ensure that the resource invested Where community feedback is in relationships is proportionate and collected, the airport will report back The airport is building relationships with adding value, the airport monitors on how this has been considered and local, national and trade media outlets. interactions through a client what action will be taken as a result. relationship management system The team is working to identify and they will report on these Corporate social responsibility initiatives and updates that would be on a monthly basis. of interest to the public and a trade Glasgow Prestwick Airport is keen to audience and they will share these Community engagement proactively play a positive role in its through media releases. community beyond the employment Glasgow Prestwick Airport is fortunate and economic contribution that The team provides timely and to be surrounded by an extremely we already make. transparent responses to enquiries supportive local community, who received via media outlets. highly value their local airport. It intends to do this through the delivery of a corporate social Glasgow Prestwick Airport facilitates The airport will look to build upon responsibility strategy. interviews and access to spokespeople. this support by involving the community as it develops. This will look at supporting Stakeholder educational initiatives – with a focus management strategy This will include activities like on inspiring young people to pursue consultation on air space redesign, science, technology, engineering The airport team maps stakeholders spaceport and any other and maths related subjects. to establish a coordinated approach to major developments. communicating with these stakeholders. It will include support for The team will do this through a environmental initiatives to play our This will include providing updates variety of channels and media – looking part of offsetting the environmental through social media channels, the to identify the most appropriate impact of our operations. website, newsletters, eventsand face- method of engagement depending to-face meetings where appropriate. upon the message.

52 Glasgow Prestwick Airport Charity Committee cheque presentation, December 2016

The airport has an established charity fund, which employees pay into on a monthly basis. The Executive Team will continue to support this activity and it will allow employees the time to administer this through a Charity Committee.

Building up a database Through attendance at exhibitions and events and a number of other marketing methods, we are building up a database of business to business contacts.

We also have a large database of potential passengers. We are growing this through our digital channels, advertising and competitions.

Scottish International Airshore STEM week, Glasgow Prestwick Airport, August 2016 53 Attracting investment

54 Seek external investment to \ accelerate the pace at which we return the business to a sustainable and profitable future.

The Board of Glasgow Prestwick Airport is looking to return the business to private ownership as soon as practicably possible. Delivery of the other five Strategic Anchors detailed in this plan will make a major contribution to the achievement of this objective.

This objective does have a number of specific activities that should be undertaken to ensure that we are investment ready.

55 Attracting investment

Ensure that any investors will be Letting people know we are here Monitor the market likely to share long term goals and what we have to offer Glasgow Prestwick Airport’s Executive The Board is committed to ensuring that Following the rebranding of Glasgow Team continually monitor the external Glasgow Prestwick Airport is developed Prestwick Airport, the airport has put operating environment and market as in such a way as to ensure it remains an a significant amount of effort into part of forward planning for business operational airport for the long term. raising the profile of the business development, operations and finance. in a positive way. The airport only enters in to discussions This monitoring will also contribute with potential investors who have a This is done through attendance at to the airport’s ability to attract vision for Glasgow Prestwick Airport events, face-to-face engagements, investment as the team will that aligns with the aspirations of the public relations and marketing. understand where there may be Board, Executive Team and opportunities and where they Scottish Government. The airport team is looking to build should be seeking to develop interest in our activities and positive and build relationships. The Executive Team has developed perceptions, within Scotland, the UK a process to carry out its own due and the world. diligence on any investors who express interest in Glasgow Prestwick Airport. Successful coordinated communications and marketing will be beneficial across Ensure our house is in order all Strategic Anchors.

Glasgow Prestwick Airport is reviewing all areas of the business to ensure that policies, processes, procedures, working practices and all other aspects will stand up to scrutiny from potential investors.

Where we identify areas for improvement, this will be added to the wider organisational work plans .

56 57 Financial overview

The turmoil of the global financial The acquisition of the airport by The graph below indicates the crisis has created significant the Scottish Government secured a expected growth patterns based at uncertainly: the availability of national asset that provides the basis acquisition, May 2014 and November finance to fund developing markets, for a strong commercial opportunity 2016. Clearly the projections have not individuals’ disposable income to become a major contributor to materialised for a number of reasons has dropped, energy prices have the Grosse Value Added locally and and this has presented the Board and fluctuated significantly putting nationally because of its location and Executive Team with major challenges. pressures on margins and shareholder infrastructure. The acquisition case Nevertheless, we have seen the start returns, and in the maturity of was based on the market conditions of growth in passenger numbers markets such as low cost airlines in at the time and indicated rapid growth which, are predicted to rise to 0.66m Europe. However, there are growth was achievable within the short term. in 16/17 and 0.71m in 17/18. areas in the middle and far east with However, the report did not consider low cost airline creation and the the possibility of a swift change in developing long haul segment for strategy by Ryanair to become more both passenger and cargo. centrally focused, removing a large percentage of its flights from regional airports, this resulted in passenger numbers reducing from 1.10m in 13/14 to a low of 0.62m in 15/16. Total Passenger Numbers 2.500

2.000

1.500

1.000

0.500 Acquisition May-14 Nov-16 0.500 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Financial Year

A similar position exists for cargo due There is a growing trend to utilise That said Glasgow Prestwick Airport to changes to the way that cargo is belly-hold capacity rather than could still dramatically increase its transported. Although the global air dedicated cargo freighters, market share by re-positioning its cargo market continues to grow year and this sector of the market dedicated cargo programmes and on year, the mode of uplift has is therefore in decline. securing new passenger airlines altered significantly. with available belly-hold capacity.

Cargo Tonnage 18,000 16,000 Acquisition May-14 Nov-16 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 13/14 14/151 5/16 16/171 7/18 18/191 9/20 20/212 1/22 58 FinancialYe ar The graph below indicates the growth numbers and cargo tonnage, although potential for major income streams. significant capital growth could be In general, the revenue streams will achieved from spaceport operations. develop in line with passenger

Revenue (£’000) 14,000 Acquisition May-14 Nov-16 12,000

10,000

8,000

6,000

4,000

2,000

0 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Financial Year

The Board and Executive Team By adopting a more dynamic, However, we will also continually will drive each revenue stream by comprehensive and proactive examine the costs of the services establishing dedicated sales staff approach to revenue generation we offer to increase efficiency and to work with current and future it is anticipated that the airport effectiveness. The divergence in the customers to drive best value for will become attractive to inward cost base post 2016/17 is largely them and increase revenue to the investment, making it a sustainable driven by the estimated costs of airport. There will be no reliance and profitable business that will operating a spaceport and visitor on a single customer or income support the local and national centre, although there is a stepped stream in the future. economy. The focus has rightly approach to increasing air traffic been on generating more whether from passengers, cargo, revenue for the business. military or general aviation.

Costs (£’000) 25,000 May-14 Nov-16 20,000

15,000

10,000

5,000

0 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Financial Year

The Five Year Strategic Plan has but on the basis of realism and been designed to be a live working logic, whilst accepting that many document and has been developed areas of the business and physical not simply as a numbers exercise, infrastructure require urgent attention.

59 Glasgow Prestwick Airport Ltd. Aviation House Prestwick KA9 2PL Scotland United Kingdom glasgowprestwick.com Glasgow Prestwick Airport Glasgow Prestwick Airport @GPABusiness This document can be provided on tape, braille, large print and other 60 languages by calling 01292 511 200.