Tony Jarvis, Transport Policy Manager

1
The importance of air services from Highlands
Islands airports for securing economic
developmentand social cohesion

• Tony Jarvis, Transport Policy Manager
• Highlands Islands Enterprise

2
Air Services the Scottish context
22.7m passengers in 2004 Growing by 1.5m per year
Airport terminal pax 2004 (millions)
Ferry 5.7m Rail 62.2m Bus 445m
Others
Glasgow
Aberdeen
Prestwick
Inverness
Edinburgh
Source Civil Aviation Authority / Scottish
Transport Statistics. Figures for given for last
available year air 2004 ferry 2003 bus rail
2002.
3
Air Services the Scottish context
Total UK cross-border traffic 12.9m EDI LON
3.6m
Pax by route type 2004 (millions)
(2003 figures in blue)
Total cross-border traffic by rail 4.9m
Highlands Islands traffic London 4 Internatio
nal 0 UK regions 1 Internal 100
Source Civil Aviation Authority / Scottish
Transport Statistics Figures for given for last
available year air 2004/2003 ferry 2003 bus
rail 2002.
4
The Highlands Islands context
Highlands Islands airport terminal pax (000s)
Source Civil Aviation Authority, 2004 data
5
The Highlands Islands context
Selected minimum surface transport journey times
r rail b bus f ferry
Source Transport Direct operators websites.
6
Regional Network in 2003
Each line 1 daily round trip, Mondays to Fridays
ATP (66 seats) Saab 340B (33-36
seats) Jetstream32 / Twin Otter (18 seats)
Not including inter-island routes
Source OAG / HIE
7
Regional Network in 2005
Each line 1 daily round trip, Mondays to Fridays
Embraer 145 (50 seats) Saab 340B (33-36
seats) Jetstream32 / Twin Otter (18 seats)
Not including inter-island routes
Source OAG / HIE
8
Trends in Air Passenger Traffic 1994-2004
100
73
-22
Source CAA
9
Air fares on selected regional services
Sample of 5 itineraries booked between 1 day and
4 months in advance, taken from airlines
websites. All fares inclusive of taxes and
surcharges.
10
Impact of an expanded regional air network
Based on improved frequencies and scheduling,
plus a 30 reduction of average fares, with an
initial cost of approx 12m per year
TEE
EALI
Source Expanded air services network in the
Highlands Islands STAG Appraisal,HITRANS,
2004.
11
The Highlands Islands context
Highlands Islands airport terminal pax (000s)
Source Civil Aviation Authority, 2004 data
12
Cross-border services from Inverness 2002
Each line 1 daily round trip, Mondays to Fridays
BA Citiexpress (BAe 146) London Gatwick easyJet
(B-737) London Luton
13
Cross-border services from Inverness 2005
Each line 1 daily round trip, Mondays to Fridays
BA Citiexpress (BAe 146) London Gatwick easyJet
(A319) London Luton London Gatwick Belfast
International Bristol bmi (A320) London
Heathrow Eastern Airways (Jetstream
31) Birmingham Manchester
14
BA Citiexpress service to London Gatwick
Economic impact of service in 2001
Provides access to London 3 times daily, ability
to inter-line, air freight capabilities
Source Potential economic impacts of cessation
of London Gatwick to Inverness Air
Service. PriceWaterhouse Coopers, 2001.
15
Service Profiles at London Airports
At August 2003
16
Eastern Airways service to Manchester
Route profile

• 15,188 trips in 2004
• 90 business, 10 leisure
• 70 inbound, 30 outbound
• Origin of visitors Manchester 10, rest of North
  West 51
• Visitor expenditure in region 200,000 pa,
  nearly 50 of this outside Inverness.
• 25 of trips would not be made without service

Source Economic social impact of Eastern
Airways Inverness-Manchester Route. HIE, April
2004 / Civil Aviation Authority.
17
Eastern Airways service to Manchester
Key benefits identified by passengers reporting
very positive impacts
Source Economic social impact of Eastern
Airways Inverness-Manchester Route. HIE, April
2004.
18
Eastern Airways service to Manchester
Some example impacts

• Residents
• Salmon farmer actual sales of 15m
• 2 Nuclear decommissioning potential contracts
• Visitors
• Would not be working in this area if this service
  did not exist
• Consultancy Services 50k
• trip to the site of a 150,000 project. Would not
  have been able to take on this project without
  direct flight
• Others for 10m, 1m and 150k

Source Economic social impact of Eastern
Airways Inverness-Manchester Route. HIE, April
2004.
19
The impact of easyJet at Inverness
Passengers per annum
Source Economic social impact of no frills air
services in the Highlands Islands. HIE, Nov
2002 / Civil Aviation Authority.
20
easyJet service to London Luton
Route profile

• 115,022 trips in 2004
• 75 leisure, 25 business
• 65 inbound, 35 outbound
• Origin of visitors London 44, rest of South
  East 31
• Visitor expenditure in region 12.4m pa

Source Economic social impact of no frills air
services in the Highlands Islands. HIE, Nov
2002 / Civil Aviation Authority.
21
easyJet service to London Luton
Benefits from visitor expenditure in the region
Annual expenditure (m)
Net Impact 3.75m 132 FTEs created
Source Economic social impact of no frills air
services in the Highlands Islands. HIE, Nov 2002
22
easyJet service to London Luton
Perceptions of resident leisure users
Improved transport access
HIE area seems less remote
Lower transport costs mean I have
more money to spend on other things
Improved contact with friends and
relatives
HIE area is better place in which to
live
More likely to continue to live in HIE
area
Strongly agree
Agree
0
20
40
60
80
100
Source Economic social impact of no frills air
services in the Highlands Islands. HIE, Nov 2002
23
easyJet service to London Luton
Perceptions of visitor business users
Highlands and Islands seems a
less remote place to do business
Improved access to markets
Improved communication with
other parts of firm
More likely to invest in the
Highlands and Islands
Better access to suppliers
Strongly agree
Agree
0
20
40
60
80
Source Economic social impact of no frills air
services in the Highlands Islands. HIE, Nov 2002
24
Why are air services important to Scotland?

• Long overland journeys, infrequent and slow ferry
  crossings
• High cost of improving road / rail / ferry links,
  plus limits to what can be achieved
• Remote communities need fast and frequent access
  to key business and service centres
• Tourists want a fast and efficient means of
  getting to their destination

25
Thank you

• For more information, visitwww.hie.co.uk/trans
  port.htm