HIAL has welcomed the publication of the Department for Transport’s White Paper "The Future of Air Transport" and the recognition it gives to the vital role of air services in Scotland.

The White Paper endorses the approach taken by Highlands and Islands Airports, the Scottish Executive and its agencies in working with airlines and stakeholders to deliver an air transport network for the region that is:

• sustainable in the long term;
• serves social and economic needs;
• enhances internal and external business links;
• develops opportunities for the promotion of inbound tourism; and
• respects the unique environmental heritage of each location.

Bob Macleod, Managing Director of HIAL, said: "This document is good news for the region and supports the work that we and our stakeholders are pursuing to expand air services for the social and economic benefit of our communities and businesses.

"It recognises that Inverness Airport now has real potential to reach and exceed one million passengers per annum and that an extension to the existing runway could open up even more route development opportunities for the region’s principal air hub.

"A runway extension would be an important strategic development for the airport. The current runway of 1,800 metres is designed for aircraft of up to 230-seat capacity/Boeing 757 type. Preliminary engineering studies have been carried out and costs obtained for extending the runway to 2,000 metres. This would allow the development of transatlantic traffic at Inverness and also suit the larger types of aircraft entering airline fleets, particularly those of no-frills carriers.

"While the existing runway length is not constraining the current rapid pace of development at Inverness (passenger growth of almost 18% in current year) an extension would assist future route development. This year has already seen new routes and services open up to Birmingham and Gatwick while bmi has announced a Heathrow service for next March and the no-frills arm of SAS, Snowflake, will also start flying an Inverness-Stockholm route in March. The opportunity of runway extension will be important for the development of the airport and air services in the future.

"The growth potential at Sumburgh, Kirkwall and Stornoway is acknowledged along with the development plans in progress across our 10 airports," said Mr Macleod.

Potential enhancements at the region’s main airports highlighted in the White Paper include:

• an extension to the length of the runway at Sumburgh;
• runway rehabilitation and improvements to the Instrument Landing System and runway lighting (already underway) at Kirkwall; and
• new runway lighting, improvements to the taxiway and development of new heliport facilities at Stornoway.

With the exception of Scatsta, these are the largest airports in the Highlands and Islands after Inverness. They are likely to see much of the future traffic growth outside Inverness and consequently have the greatest potential to attract jet operations, which will improve both the quality of service and journey times.

Mr Macleod said: "The White Paper also endorses the work we are undertaking with the Civil Aviation Authority and Department for Transport on evaluating regulations that govern smaller airports with lower traffic volumes.

"Lower traffic volumes at smaller airports mean the cost per passenger in maintaining infrastructure is substantially more than at major airports elsewhere in the UK. This directly contributes to the fares that people living in the Highlands and Islands have to pay and the level of subsidy that is necessary to maintain airport infrastructure. We will continue to explore with the regulatory bodies the scope for derogations consistent with ensuring the continued safety of operations."

The airport operator also welcomed the White Paper commitment to consult further on the use of Public Service Obligations (PSOs) to deliver enhancements to the air network serving the Highlands and Islands.

Mr Macleod said: "This year been one of exciting developments at our airports with more new routes and services starting and considerable passenger growth. Initiatives such as the Scottish Executive’s Interim Route Development Fund are supporting increased choice for travellers. Our partnership work with stakeholders, including councils and the Highlands and Islands Enterprise network, has also been invaluable in this process.

"The White Paper clearly sets out the important role of aviation and the increasing demand for air travel. I have every confidence that 2004 will see further significant developments at our airports for the benefit of our economy and communities."

ENDS