Breakfast Presentation
Wednesday 12 November 2014
David Winstanley
Chief Operating Officer
Scope
•The Airport ‘Past’
• The Airport ‘Today’
Aviation Industry/Davis Commission
Regional/City growth
• The Airport ‘Future’
Elmdon Airport - Birmingham 1939
Airport UtopiaAirport UtopiaAirport UtopiaAirport Utopia
Airport RealityAirport RealityAirport RealityAirport Reality
• 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
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%
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
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)
Birmingham Airportc £250m Investment
The new Runway Extension £48m
Game Changer: 400m = 2500nm
International Pier
One Terminal: high quality flexible space
Enhanced Security Facilities
Centralised security
Airport Collaborative Decision Making
New ATC Tower
New Hangar Facilities
UK Aviation Growth – Airports Commission
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?
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.
The future
High speed rail – step change in connectivity
The ‘Changing Passenger’ Experience
Paperless/Card free travel
Wearable Technology
End to End Travel Apps
On Board Wi-Fi
Changing Terminal Design
The Future ~ Master Plan?
The Future ~ Master Plan?
Thank you and Questions?
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