Cardiff AirportThe annualupdate 2016

Maes Awyr CaerdyddDiweddariadblynddol 2016

January 2017

We want Cardiff Airport to become a central part of the national success story, a symbol of Wales’ global ambition.“ “

Chairman’s welcome2016 was a watershed year for Cardiff Airport, defined by a 16% increase in passenger numbers.

This past year has seen a fundamental and positive change in attitude and perception about Cardiff Airport and what it can deliver for the people and businesses within our catchment area. This change has been achieved by a remarkable team of great people working closely with great airlines alongside a range of great partners. On behalf of the Board I would like to thank and congratulate the Airport team for their hard work and outstanding achievements over this past year.

The focus of the Board during these last twelve months has been to develop our strategies for growth and financial sustainability for the Airport. At the heart of all off our discussions and activity has been the wellbeing of our passengers and the development and support of our staff and our partner relationships, particularly in terms of safety and security.

Twelve months ago we promised that we would grow our business and we have delivered on that promise. We have now set ourselves a target for continued growth in 2017 with more routes, at better prices, and at better times. We will continue to improve the airport for all of our passengers to ensure that everyone who travels in and out of Wales has a truly enjoyable and memorable experience. We will continue to work closely with Visit Wales and our airline partners to attract even more inbound passengers to Wales, as over 24% of our passengers originate from outside of

Wales. We will also continue to work closely with the aviation industry which has a major presence across all of Wales.

Cardiff Airport is wholly owned by the Welsh Government and I thank the Government for their trust in allowing the Board to manage this national asset of Wales on their behalf. I also sincerely thank all of our political parties for coming together this year to test and support the Airport’s vision for growth. Such unity of purpose is fundamental when developing a long term strategy for infrastructure development and to create long term sustainability for a critical part of our nation’s connectivity and aviation industry.

We have much more work to do to achieve our objective of creating a great airport with a wide range of aviation facilities which Wales and the UK can be truly proud of. We want Cardiff Airport to become a central part of the national success story, a symbol of Wales’ global ambition.

Looking back over 2016 I can confidently say that we have begun this journey. All in all, it has been a year of great significance for Cardiff Airport, and I sincerely hope for all of Wales.

Roger LewisChairman January 2017

Our mission:To be a sustainable airport business generating significant economic benefit for Wales. “ “

Our vision:Cardiff Airport aspires to be an outstanding capital city airport connecting Wales to the world and the world to Wales, whilst delivering an exceptional customer experience.

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Business update

*Within top 4 fastest growing airport’s in UK – October 2016. UK CAA.

Over 1.345 million passengers chose to fly from Cardiff during 2016, an increase of 16% versus 2015. This significant growth, positions Cardiff as one of the fastest growing airports in the UK*. Growth is forecast to continue and we have announced a number of new routes ahead of the summer 2017 season.

We have focussed our capital programme for the year on high standards of safety and regulatory compliance, on continuing to improve our passengers experience and on business critical infrastructure. In particular we took delivery of three state of the art fire vehicles in April 2016 and major improvements were made to the Departure Lounge. A new walk-through duty free shopping area now offers a significantly enhanced range of products and well-known brands, and a new and-improved coffee shop and bar/restaurant area now offers our customers more choice.

We have continued our work this year to strengthen our regulatory performance. Working with the HSE, we have made considerable

improvements to our safety processes and procedures and have also maintained our focus on environmental sustainability.

The in-sourcing programme has been completed this year with facilities management, security operations and fire and rescue services all transferred to Cardiff Airport. This has resulted in increased efficiencies across the Airport operation and significantly improved engagement, with a programme of collaborative working introduced across all working areas.

The business is growing stronger and we are well positioned to deliver on our vision and mission generating significant economic benefit to Wales.

Debra BarberManaging Director & Chief Operating Officer

We have a set of shared values, which help us to achieve our business priorities:

Service-orientated

Efficiency at all times

Respect others and act

responsibly

Innovative in our approach

Pride in all that we do

Safety and security as our

No.1 priority

Ambition to Succeed

A S P I R E S

Growth of routes and passengers

Jan Feb Mar Jun Aug SepJulMayApr Oct DecNov

16% growth over the ye

ar1.345

millionpassengers

Growth has been achieved by:

• Developing year round services for core business and ‘visiting friends and family’ markets

• Increasing low cost capacity of key leisure routes

• Developing bespoke markets to differentiate Cardiff

• Playing a key role in delivering major events in Wales and facilitating Welsh teams and fans who travel abroad.

One of the fastest growing airports in the UK* achieving an increase in passengers of 16%

18 airlines regularly use the airport

facilities

Cardiff has over 50 direct routes

Cardiff now connects to 9 capital cities

across Europe

Cardiff has 11 routes to major hub airports with

connections to over 900 destinations

*Within top 4 fastest growing airport’s in UK – October 2016. UK CAA.

New routes: 2017

Rome - Flybe Madrid - Iberia Express Guernsey - Blue Islands

Dubai - Thomson Cruise flights

New routes: 2016

Verona - Flybe Berlin - Flybe

London City - Flybe

Enhancing the customer experienceWe are committed to delivering an exceptional customer experience for our passengers and as such have continued to invest in our terminal and facilities.

2016 has seen the launch of a number of initiatives:

• A new walk through tax and duty free store offering new product ranges including Welsh gifts and well-known brands such as Benefit, Links of London and Folli Follie

• The Beer House bar and restaurant has been designed to showcase the best of Welsh food and drink, including locally produced beers and dishes using Welsh ingredients throughout the menu

• Caffe Ritazza is inspired by cosmopolitan European café culture

• Installed ‘common user self-service’ check in kiosks

• Enhanced the terminal space and car parks by introducing LED lighting across the site

• Focussed on delivering an exceptional customer experience by employing a new Customer Services and Terminal Manager

• Developed a Customer Experience Working Group which looks at all parts of a passenger’s journey through the Airport.

Invested in our terminal and facilities to deliver an exceptional customer experience

Investing in safety & securityOur capital programme has been prioritised to deliver the highest standards of safety, security and regulatory compliance.

2016 has seen the launch of a number of initiatives:

• In June our three new fire vehicles became fully operational, having invested over £2million in the fully customised, state of the art trucks

• We have invested in the latest security screening equipment for baggage to ensure ongoing compliance and even higher standards of detection

• Developed a Health and Safety Committee with engagement from across the whole Airport

• Worked collaboratively with HSE to make considerable improvements to our safety processes and procedures

• Successfully retained our environmental accreditation Seren BS 8885.

Safety and security is our number one priority

Developing our workforceOur committed and high performing Airport team is fundamental to delivering the Airport vision and mission. We have introduced company values which are now embedded across the organisation and underpin all of our working practices and operations.

2016 has seen the launch of a number of initiatives:

• Insourced 155 team members from facilities management, security operations and fire and rescue services to the Cardiff Airport team, resulting in increased efficiencies across the Airport operation and improved engagement

• Established strong working relationships with GMB and Unite trades unions, including the development of a joint agreement

• Held two Team Conferences (April and November 2016)

• Conducted an engagement survey and developed a Focus Group to coordinate action plans.

Committed, high performing teams living our shared values

Source: 2015 CAA Survey/2015 IPS Survey

Impact on the Welsh economyCardiff Airport is a strategic asset for Wales:

• 1,750 aviation related jobs at the airport

• 2,625 total direct and indirect jobs

• The overall GVA impact to the local economy is £102million

• 1 in 4 passengers are visitors to Wales…

• …of which international visitors using Cardiff Airport contribute an estimated £55million to the Welsh economy

• International passengers by country of residence:

Ireland Spain France USA Germany Netherlands Australia Italy

28% 13% 12% 8% 6% 6% 3% 3%

Canada Finland India UAE China Malaysia New Zealand Others

2% 2% 2% 1% 1% 1% 1% 12%

Cardiff Airport is a strategic asset for Wales and an integral part of the National Integrated Transport Strategy

2017 - Senior Open Golf

Championships

2018 - Volvo Round the World

Yacht race

Future events

Supporting major eventsCardiff Airport works closely with stakeholders to ensure major events hosted in Wales are delivered safely and successfully. Our team, along with other transport providers, local authorities, venues and emergency services adopt a collaborative ‘Team Wales’ approach to achieve this success.

Every year Cardiff Airport delivers teams and fans travelling to and from Wales for the RBS 6 Nations rugby tournament.

Cardiff Airport will play a huge part in delivering UEFA Champions League Final 2017 for the capital city.

We have already committed to handling an additional:

Supporters (Commercial Aircraft) 24,000

VIP & Sponsors (Private Flights) 200+ movements

The tight window for fan travel will require a second, temporary terminal to be erected and operational for the duration of the event.

Cardiff Airport is key to the delivery of major events for Wales

The futureWe are focussed on delivering a successful and sustainable Airport business, which will be achieved in the following ways:

• Creating contagious confidence in the market

• Enabling choice for travellers to use Cardiff Airport

• Winning new business and increasing capacity on services served by our incumbent airlines

• Filling our existing flights

• Diversifying our business through innovative wider initiatives

• Attracting and supporting inward investment and tourism to Wales

• Working with key stakeholders to develop regional and national plans to improve access for our customers; - Cardiff City Region - National Integrated Transport Strategy

• Developing the Airport Masterplan

• Continuing to lobby on the devolution of Air Passenger Duty (APD).

We want to ensure Cardiff is the Airport of choice for people travelling to and from Wales.

Cardiff Airport stands as a symbol of Wales’s ambitions as a significant presence within the global aviation industry

GovernanceUpon taking ownership in 2013 the Welsh Government established a holding company to own the equity investment in the Airport. A management agreement has been put in place to regulate the relationship between the holding company and Cardiff Airport to ensure the Airport operates as a commercial enterprise at arm’s length from Government.

In addition to this arrangement the Airport has four committees chaired by independent Non-Executive Directors for audit, risk, safety and security and remuneration.

Cardiff Airport operates to a two year rolling business plan and five year business projections. The Airport reports to the holding company on a monthly basis on financial performance and compliance with regulatory matters as required by the Civil Aviation Authority and other relevant regulatory bodies. The Airport has reported directly to the Welsh Assembly’s Public Accounts Committee.

The Board undertakes an annual performance appraisal.

The Airport Company now directly employs 250 people having insourced key functions during the past 12 months including security, facilities management and the airport fire and rescue service. The Airport supports 1,750 aviation related jobs and an additional 875 induced and indirect jobs totalling 2,625 across the region.

The ownership structure allows the Airport to operate with commercial independence whilst giving confidence in the long

term security of the business as a strategic national asset

Board of directorsRoger LewisChairman

Debra BarberManaging Director & Chief Operating Officer

Geraint Davies CBENon Executive Director

Margaret Llewellyn OBENon Executive Director

Spencer BirnsCommercial Director

Huw LewisFinance Director & Company Secretary

Contact telephone number01446 712 532

Contact email addresspaula.baggot@cwl.aero

Websitecardiff-airport.com

@Cardiff_Airport

CardiffAirport

@cardiff_airport

Cardiff Airport

cardiff-airport.com

@Cardiff_Airport CardiffAirport @cardiff_airport Cardiff Airport