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Consultation for the Policy and Financial Management Review (PFMR) of Highlands and Islands Airports Limited (HIAL)

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Appendix 3 - Airport Information

Inverness Airport

8.17 Inverness is the gateway Airport to the Highlands and a significant driver for the local economy. In 2007/08, over 700,000 passengers used the Airport, its busiest year so far and its ninth consecutive year of passenger growth. The Airport provides for services within the Highlands and Islands and is the Highlands main air link to the central belt of Scotland, London and other parts of England. It also provides for scheduled services to Belfast and Dublin. Passenger numbers at the Airport are projected to grow to around 1.8m by 2030.

8.18 By taking full control of the terminal building (following buy-out of the PFI contract) and through income raised from airport charges, concessions and car parking, the Airport's operating loss, before subsidies, was reduced by £1.3m from the previous year to £1.9m. Delivering the Airport into profitability is a medium to longer-term aim of HIAL.

8.19 More than £4m was invested in improving airport facilities in 2006/07. In line with projected passenger growth, HIAL has development proposals for the Airport in the next few years including an extension of the terminal building.

Sumburgh Airport

8.20 164,000 passengers used the Airport in 2007/08, an increase of 13%, with the Scottish Government's Air Discount Scheme ( ADS) a significant contributory factor. The Airport provides for Shetland's air links with Orkney, the Scottish mainland and London.

8.21 At nearly £3.6m, the Airport had the largest operating loss of HIAL's 11 airports in 2006/07, although a new direct air link to London and major improvements to the main runway, which will facilitate the development of new air routes, should serve to reduce this.

Kirkwall Airport

8.22 Nearly 150,000 passengers used the Airport in 2007/08, an increase of 17%, with the ADS a significant contributory factor. The operating loss before subsidy was approaching £2.2m. The Airport provides for scheduled services to Shetland and the Scottish mainland and inter-Orkney services.

Stornoway Airport

8.23 Just over 130,000 passengers used the Airport in 2007/08, an increase of nearly 4% and again, the ADS contributed significantly to the increase. The Airport's operating loss came in just under £2m. The Airport provides for scheduled services to Benbecula and the Scottish mainland.

Dundee Airport

8.24 Dundee Airport joined HIAL on 1 December 2007. Over 64,000 passengers used the Airport in 2007/08, a 21% increase from 2006/07. The Airport had been an increasing financial burden for its former operator, Dundee City Council and has a current annual operational deficit approaching £2m. The Airport facilitates scheduled services to London City, Belfast and Birmingham Airports.

Benbecula Airport

Nearly 37,000 passengers used the Airport in 2007/08, a figure virtually unchanged from the previous year. The Airport's operating loss amounted to £1.75m. The Airport provides for scheduled services to Barra, Glasgow International and Stornoway.

Wick Airport

8.25 Over 26,000 passengers used Wick Airport in 2007/08, a decrease of 19%. The Airport's operating loss came to nearly £2.2m. The Airport provides for direct scheduled services to Aberdeen and Edinburgh and a variety of UK airports via Aberdeen.

Islay Airport

8.26 Almost 30,000 passengers used the Airport in 2007/08, an increase of 5%. Part of the recent increase in passenger volumes can be attributed to the popularity of the Air Discount Scheme and Loganair's decision to increase aircraft rotations to cater for this. The Airport's operating loss in 2006/07 amounted to £0.76m. The Airport provides for direct scheduled services to Glasgow International Airport.

Barra Airport

8.27 Around 10,500 passengers used Barra Airport in 2007/08, an increase of 5%. The Airport's operating loss in 2006/07 amounted to £0.49m. Barra Airport provides for direct scheduled services to Benbecula and Glasgow International.

Campbeltown Airport

8.28 10,000 passengers used the Airport in 2007/08, an increase of 6%. The Airport's operating loss in 2006/07 amounted to £0.75m. The Airport provides for scheduled services to Glasgow International.

Tiree Airport

8.29 8,000 passengers used the Airport in 2007/08, an increase of 6%. The Airport's operating loss in 2006/07 amounted to £0.6m. Tiree Airport provides for scheduled services to Glasgow International.

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Page updated: Tuesday, July 8, 2008