OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE Minute of Meeting held in the Council Offices, Stornoway, on Thursday 17 August 2017 at 11.00am. PRESENT Mr Uisdean Robertson, CNES (Chairman) Mr, Kenneth Macleod, CNES Mr Darren Roberts, Eastern Airways Mr Iain Mackinnon, CNES Mr Mathew Herzberg, Eastern Airways Mr Alan Mackenzie, Visit Scotland Mr Vincent Hodder, Flybe Mr Jonathan Hinkles, Loganair Ms Liz Sheridan, Flybe Mrs Jeanette Mackay, Loganair Mr David Paterson, Flybe IN ATTENDANCE Mr Stephen Hendrick, HIAL Mr Lachlan Macpherson, NHS Western Isles Mr Colin G. Morrison, CNES Mr David Macleod, CNES APOLOGIES Mr Duncan Smith, HIAL Mr Kenneth Mackenzie, Hoteliers Association Mr Roderick Mackay, HIAL Mr Iain Fordham, OHTIA Mr Gordon Jamieson, NHS Western Isles Constitution Appointment 1 It was agreed to appoint Mr Uisdean Robertson Chairman of the Outer Hebrides Airport of Chairman Consultative Committee. The Chairman welcomed members to the first Meeting of the Committee under the new Comhairle and proceeded with introductions. MINUTE Minute of 2 The Minute of Meeting of 1 December 2016 was approved. Meeting of 1 December Under consideration of the Minute, the Director of Technical Service provided updates in 2016 relation to the following items:- Item 2 – Inter Islands Air Services – Procurement of Contract The Director confirmed that the PSO had been awarded to Loganair for a period of four years from 1 April 2017. Subsequent to the introduction of the Summer 2017 timetable, Loganair had proposed amendments to the Stornoway Benbecula air service. These changes would provide improved connections from Edinburgh and Inverness to Benbecula and would facilitate NHS consultants travelling to Benbecula. It would also reinstate the connection to the 0700hr ferry from Barra on Tuesdays, Wednesdays and Thursdays. The changes, likely to agreed by the Comhairle, would be effective from 4 September 2017. Item 3 – Regional Air Services – Air Scoping Study The Director of Technical Services informed the Committee that arising from a meeting of the Islands Transport Forum on 21 June 2017 concerns had been raised regarding the scope of the review and also the level of engagement by HIAL and that the Mr Humza Yousaf, Minister for Transport and the Islands would be raising them with HIAL directly. Item 4 – Air Discount Scheme The Director confirmed that HITRANS had considered a Report on 23 June 2017 detailing an appraisal of extending student eligibility within the Air Discount Scheme and it had been agreed that a business case be submitted for future consideration. In regard to reinstating eligibility for business users, the Director confirmed that the Minister for Transport and the Islands had accepted the legal argument for reinstatement but it been had ruled out due to affordability. 445 OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 17 AUGUST 2017 Item 6 – Loganair Update In regard to recommendation (3) the Director stated that the establishment of a short-life Working Group to focus on patient travel had not materialised due to non-engagement by NHS Western Isles. It was agreed that Mr Lachlan Macpherson, representing NHS Western Isles at the Meeting, would address the issue of non-representation with Mr Gordon Jamieson, Chief Executive NHS Western Isles. OUTER HEBRIDES AIR SERVICE Eastern 3 In reference to Item 5 of the Minute of Meeting of 1 December 2016, Mr Darren Roberts, Airways Communications Manager and Mr Mathew Herzberg Head of Commercial, represented Update Eastern Airways at the Meeting. Mr Roberts submitted a Report providing an update on the Stornoway-Aberdeen route which continued to show a slight decrease in passenger numbers compared to the equivalent seven months in 2016 as a result of the downturn in the oil and gas industry and offset by marginal changes on other Stornoway schedules. The Report showed that the total passenger numbers on the route for the period January to July 2017 showed a decrease of 5.8% in comparison within the same period in 2016. In relation to on-time performance (OTP), 87% of all flights had operated within 15 minutes of the scheduled departure time (showing an increase of 32% over the summer months) and flight completion including weather and technical cancellations had been 99%. The Report further stated that Eastern Airways had entered into an alliance with Flybe and from 29 October 2017 the Eastern Airways route network would become part of a five year franchise agreement, operating with BE flight codes and website bookings which would be available at Flybe.com. This would include the Stornoway – Aberdeen route, offering greater connections via Aberdeen onto the Flybe network. As a separate part of the alliance, from 1 September 2017 Eastern Airways would provide Flybe with four aircraft enabling the continuation of Flybe branded services from a number of Scottish airports. This included the Glasgow – Stornoway service, providing onward connectivity through its expansive Glasgow network and would retain existing connections to key UK hubs such as Manchester, Birmingham, Belfast City and Southampton. It was agreed to note the Report. Flybe Update 4 Mr Vincent Hodder, Chief Revenue Officer, Ms Liz Sheridan, PR Manager, and Mr David Report Paterson, Head of Alliances, represented Flybe at the Meeting. Mr Hodder provided the Flybe update in presentation slide format which covered the following topics:- 1 Introduction 2 connecting people and businesses Flybe Facts the UK’s Leading Regional Airline empowering regional communities Flybe aviation services training fleet 3 Commitment to Scotland capacity/growth codeshare and connectivity new routes to the world 4 Enhanced Services for the Islands six new routes competition frequent traveller programme and credit card proposals for Stornoway As indicated in the presentation, Flybe had 58% capacity growth in Scotland over a 20 year period from 2007 and operated 63 routes connecting with 20 airports beyond Scotland. The Eastern Airways network would be incorporated under a Flybe franchise operating new joint routes from 1 September 2017 concurrently with plans to put the existing Eastern network on sale as part operation. The combination of both Flybe and Eastern Airways networks would provide more choice and more options for customers. The introduction of new six routes for Scotland from the Flybe/Eastern Airways alliance would introduce an Embraer E-170 jet service (76 seats) between Sumburgh and Aberdeen and Edinburgh and Glasgow due to commence on 1 September 2017. Flybe and Eastern Airways would connect Stornoway with Glasgow, flying up to three times daily providing morning, afternoon and evening departures from both destinations. OUTER HEBRIDES AIRPORT CONSULTATIVE COMMITTEE: 17 AUGUST 2017 It was proposed that the Flybe/Eastern relationship would provide true competition on intra- Scotland routes, and with Flybe’s extensive European network and codeshare relationships provide meaningful connectivity beyond-Scotland. Flybe had protected connectivity to at least 18 destinations across the UK and Europe, which would continue to be served from the Highlands and Islands. It was anticipated that increased capacity should lead to lower fares for customers as both carriers compete for market share and by entering these markets as a competitor. It was confirmed that Avios partnership launched in October 2014 would continue. The “Spend&Fly”, loyalty programme exclusive to Flybe credit card holders allowed customers to earn flights when they spend on their Flybe credit card. Mr Hodder provided an update from the Public Meeting held the previous evening which had been well attended and Flybe had appreciated the suggestions and feedback received. The issues raised included continuity of service, requests for the introduction of a Compassionate Policy and to continue to enhance the service to meet the needs of the community. The Committee were afforded the opportunity to ask questions. Mr Hodder confirmed when asked that the proposed aircraft was not suitable for non-mobile passengers but that Flybe would look at alternatives and that they would also consider discounts for student travel. The Chairman thanked Flybe representatives for their attendance and presentation to the Committee. It was agreed to note the Report. Loganair 5 In reference to Item 6 of the Minute of Meeting of 1 December 2016, Mr Jonathan Hinkles, Update Managing Director and Mrs Jeanette Mackay, Station Manager Stornoway, represented Report Loganair at the Meeting. Mr Hinkles provided the Loganair update in presentation slide format which covered the following topics:- Customer Numbers Dependability Barra, Benbecula and Stornoway Routes Flying Solo and Building Scotland’s Airline Partnerships and Connectivity Customer Focus Mobility – introduction of Aviramp (1st quarter 2018) The presentation showed that customer numbers on all the routes for the period January to July 2017 indicated a percentage change for the same period in 2016. The flight completion rate was 99.2%, the same as 2016 and on-time performance (OTP) showed continued improvements with 83.5% of flights operating with 15 minutes of scheduled departure compared to 79.3% in 2016. Most routes showed improvements except Inverness-Stornoway-Benbecula impacted by the afternoon flight(s) on the Inverness- Manchester route using the same aircraft. The Manchester flight had now been removed from the aircraft’s daily schedule to protect the afternoon OTP and there had also been issues with taxiway works