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Breakfast Presentation Wednesday 12 November 2014 David Winstanley Chief Operating Officer

FBE Birmingham Airport Plans & Opportunities

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Guest Speaker: David Winstanley MA FCMI, Chief Operating Officer (COO) Birmingham Airport David has spent the vast majority of his professional career within or associated with aviation, firstly as an officer in the Royal Navy and Royal Air Force and currently as Chief Operating Officer at Birmingham Airport. David originally joined the Royal Navy in 1984 and attended Britannia Royal Naval College Dartmouth before joining the Royal Air force in 1986. Originally trained as an Air Traffic Control officer in the RAF, David enjoyed a wide-ranging and varied military career, serving across the UK and abroad. He spent the early part of his career as a controller and then later gained functional expertise in airfield operations, career management, project and requirements management, regulatory compliance, risk management and leadership development. Promoted to Wing Commander in 2002, he was selected to attend advanced staff training at the Military Defence Academy in Shrivenham, on completion of which he gained his Masters degree in International and Defence Studies with Kings College London. In the last 3 years of RAF service, he established a reputation in the field of leadership development and played a key role in the establishment of the now highly regarded RAF Leadership Centre. David left the Royal Air Force October 2006 and joined Centrei Ltd as a Director and consultant to continue his work in the leadership development arena. David joined Birmingham Airport in 2007 as Head of Regulatory Compliance and Safety. In May 2009, David took over responsibility for all operational security matters and fulfilled the role of Head of Aviation Security prior to being promoted to Operations Director in June 2010. David took up his current role as Chief Operating Officer in May 2014. David lives in Rutland with his wife Lindsay and their 2 children, Laura 19 and James 17. David lists his main interests as military history, cricket, skiing, cycling and keeping fit.

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Page 1: FBE Birmingham Airport Plans & Opportunities

Breakfast Presentation

Wednesday 12 November 2014

David Winstanley

Chief Operating Officer

Page 2: FBE Birmingham Airport Plans & Opportunities

Scope

•The Airport ‘Past’

• The Airport ‘Today’

Aviation Industry/Davis Commission

Regional/City growth

• The Airport ‘Future’

Page 3: FBE Birmingham Airport Plans & Opportunities

Elmdon Airport - Birmingham 1939

Page 4: FBE Birmingham Airport Plans & Opportunities

Airport UtopiaAirport UtopiaAirport UtopiaAirport Utopia

Page 5: FBE Birmingham Airport Plans & Opportunities

Airport RealityAirport RealityAirport RealityAirport Reality

Page 6: FBE Birmingham Airport Plans & Opportunities

• BHX best connected airport by road and rail in UK

• 159 direct international flights

• 45 Airlines

• 3 major alliances – Star, Skyteam, One World, plus non-aligned

• 400 connections over major and intermediate hubs

• New runway extension 3000m

• £113m t/o, £49m EBITDA, 6000 employees on site in 140 companies

• 1000 acres operational site

Birmingham Airport Today

Page 7: FBE Birmingham Airport Plans & Opportunities

Aeronautical Revenue

� £47m in FY13 from aeronautical revenue streams c45% of income

� Good presence in all four key

sectors

� c. 85% of aeronautical revenue

attributable to Scheduled, Charter

and Low Cost flights

� Diverse base of airlines mitigating the risk of airline failures

� easyJet started first year-round

service in 2012 and is seen as an

opportunity for future growth

� Monarch, flybe, easyJet plus other

flag or scheduled carriers growing to fill vacated or underserved routes at

Birmingham

Key Airlines

Top 5 airlines by % of total passengers

16.20%

14.40% 14.10%

11.30%

6.90%

0.00%

4.00%

8.00%

12.00%

16.00%

20.00%

Page 8: FBE Birmingham Airport Plans & Opportunities

Commercial Revenues

Strong base of recognised high street brands

Retail Income Breakdown (£million)� Offers diversification in revenues from traditional aeronautical revenues

� Income from shops consists of basic rents and

concession fee

� Long term contracts with minimum volume

guarantees providing protection to shocks in passenger numbers

� Significant progress made in last 3 years with combination of 2 Terminals driving improved

performance. Income growth of 3.5% CAGR and

yield growth of 5.0% CAGR over past five years

Major High Street Brands

0

10

20

30

40

50

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

Duty Free Car parking Catering Shops

Car hire Forex Other

Catering: 17

Retail: 26

Other: 18

Page 9: FBE Birmingham Airport Plans & Opportunities

In House Outsourced/Partnered

• Terminal operations

• Fire and Rescue• Airport security

• Baggage system• Passenger services information

• Airport control • Marketing and sales

• Motor transport• Airport bussing

• Capital project development• Airfield Engineering

• Health and Safety• Finance

• Air Traffic Control – In sourcing• Baggage handling

• Passenger handling• Air cargo

• Airfield security• Border control

• Airport policing• Trolley management

• Fuel supply• Retailing

• Food and beverage operations • FBO and aircraft maintenance

• Capital project works

Operations (c £60m)

Page 10: FBE Birmingham Airport Plans & Opportunities

Birmingham Airportc £250m Investment

Page 11: FBE Birmingham Airport Plans & Opportunities

The new Runway Extension £48m

Page 12: FBE Birmingham Airport Plans & Opportunities
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Game Changer: 400m = 2500nm

Page 15: FBE Birmingham Airport Plans & Opportunities

International Pier

One Terminal: high quality flexible space

Page 16: FBE Birmingham Airport Plans & Opportunities

Enhanced Security Facilities

Centralised security

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Airport Collaborative Decision Making

Page 18: FBE Birmingham Airport Plans & Opportunities

New ATC Tower

Page 19: FBE Birmingham Airport Plans & Opportunities

New Hangar Facilities

Page 20: FBE Birmingham Airport Plans & Opportunities
Page 21: FBE Birmingham Airport Plans & Opportunities

UK Aviation Growth – Airports Commission

Page 22: FBE Birmingham Airport Plans & Opportunities

Facts v. Fiction?

Heathrow Argument: • Only gateway to emerging markets (China)

• Only way for business to grow and drive UK economy

• Mega Hub is the future

Considerations:• Build cost for Heathrow’s 3rd rwy c £16.bn v. £9.bn for Gatwick

• Noise impact: Heathrow 1m affected v. 40k

• Mega Hub Debate?....Move to ‘Point to Point’• Supporting Infrastructure?

Choice: Is it simply Heathrow or Gatwick?

Page 23: FBE Birmingham Airport Plans & Opportunities

Future Aviation Strategy ?

What of the Devolution Debate?

• Growing the UK economy means supporting great cities

• Great cities need great airports • Customers need choice

This is why we support a competitive network of great airports for great cities, and not a single market-dominating mega hub which

would harm the economy, passenger choice and value.

We need Heathrow to remain strong, and others to have the chance to grow as well.

Page 24: FBE Birmingham Airport Plans & Opportunities

The future

High speed rail – step change in connectivity

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The ‘Changing Passenger’ Experience

Paperless/Card free travel

Wearable Technology

End to End Travel Apps

On Board Wi-Fi

Changing Terminal Design

Page 26: FBE Birmingham Airport Plans & Opportunities

The Future ~ Master Plan?

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The Future ~ Master Plan?

Page 28: FBE Birmingham Airport Plans & Opportunities

Thank you and Questions?