Strategic Plan 2017 2022 - Glasgow Prestwick
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Strategic Plan 2017 – 2022
Here to get you to...
new markets
cities & sun
greater heights
Glasgow
Ayrshire
new customers
2
a more sustainable Scotland
your business goals
your destination safely
new experiences
new job opportunities
places out of this world
3
4
Contents
6.
Forewords
9.
About us
10.
Our timeline
12.
Leading the change: our
Board & Executive Team
14.
Our services
16.
Our external operating
18.
Our vision, purpose
environment & values
Strategic objectives
20.
Strategic objectives
22.
Bringing in business
36.
Continually compliant
42.
Making people a priority
& staying safe, secure &
sustainable
46.
Financially fit
50.
Building networks
54.
Attracting investment
& relationships
58.
Financial overview 5
Chair’s foreword
On the day I arrived at Glasgow The Scottish Government acquisition
Prestwick Airport 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 Ayrshire
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:
624k
Handled
624k
passengers
11,409
Processed
11,409
tonnes of
cargo
23,929
Facilitated
23,929
aircraft
movements
8
About us
\ Glasgow Prestwick has the
longest commercial runway 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 Royal Air Force 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 United States 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 Air Traffic Control 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.
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.
11Our 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, airports in the UK and with the redevelopment
periods as Managing Gordon was part of the engineering, transport, Ireland. He also held the of Bristol Airport 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 International Airport. Jayne holds posts on the
world’s largest Duty Free for developing the strategy Financial Times ‘Best Boards of Aberdeen
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 Strathclyde 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.
12Our 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
Norwich 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 South Africa.
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.
13Our Services
Passenger aviation Maintenance, repair and Search and rescue base
overhaul (MRO)
Glasgow Prestwick Airport currently Bristow Helicopters 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 United Kingdom able to take aircraft astronauts returning from space, via
recreational flights can all be handled in the case of security emergencies. Kazakhstan. 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 Ayr 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 Department for Transport 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.
16West 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.
18Our 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.
19Strategic objectives
at a glance
Glasgow Prestwick Airport has
six core strategic objectives
that will enable us to deliver
on our vision & purpose.
/ Bringing in
business / Continually
compliant
& staying
/ Making people
a priority
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
fit / Building
networks &
relationships
/ Attracting
investment
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 21Bringing 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 23Bringing 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. Edinburgh
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
and its railway station, which M77 Motorway
35 minute journey
can be accessed from the
terminal building.
Glasgow Prestwick Airport is the
only airport with a rail connection Glasgow
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
business travellers. Barcelona
Pisa
Reus Rome
Creating a balance between Palma
Corfu
inbound and outbound Fargo
Alicante
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
Millions
Aerospace, Woodward and UTC.
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.
25Bringing 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 France 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.
26Glasgow 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
20,000
expansion of Heathrow and Heathrow
would commit to the use of Scottish 18,000
engineering, manufacturing and
16,000
construction, creating extra
connectivity between Scottish airports 14,000
and Heathrow and exploring options 12,000
for the establishment of a logistics
hub at Glasgow Prestwick Airport. 10,000
8,000
The UK Government announced its
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. 27Bringing 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.
28Scottish 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.
30FBO It is forecast that fuel revenues will Creating a new, more flexible, car
increase year on year over the course park product offering
Additional of the next five years.
Year Percentage
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
20/21 4.8% 128,000 A significant amount of income from 2017. It will include new car parking
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. 31Bringing 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
£10m
the tenant profile to one that is
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
£0
all income streams. This may include
13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22
refurbishment of areas, uninhabitable
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.
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