The successful development of new air services, growth in passenger numbers and ongoing investment in airport infrastructure were highlighted in the annual report and accounts for 2003/04 published by HIAL today (06.08.04).

The company manages and operates 10 airports in the Highlands and Islands of Scotland on behalf of the Scottish Ministers at: Barra; Benbecula; Campbeltown; Inverness; Islay; Kirkwall; Stornoway; Sumburgh; Tiree and Wick. It is responsible for providing safe and cost-effective airport operations and supporting economic and social development in the region.

In the annual report and accounts published at the company’s annual general meeting, the loss for year ending 31 March 2004 was £643,000 as compared with a loss of £1,304,000 in 2002/03.

The total subsidy received from the Scottish Ministers was £23,718,000, which was split £17,325,000 revenue and £6,393,000 capital. This subsidy supported the company’s operations and allowed it to complete significant capital investment in airport infrastructure and upgrades.

Receipts from air traffic and other income amounted to £9,806,000, which was £577,000 more than the previous year’s total and reflected increased revenue from traffic at Inverness, Islay, Kirkwall and Stornoway airports.

Passenger numbers across the company’s airports in the year increased by 8% to 933,779 compared to the 2002-2003 total of 864,301.

The largest year on year passenger growth was recorded at Inverness with 19% and Stornoway with 11%. Passenger numbers also increased at Barra, Benbecula, Campbeltown, and Kirkwall while Islay’s performance matched the previous year. There were small decreases in passenger numbers at Wick and Tiree while Sumburgh’s figures continued to reflect the downturn in oil-related traffic.

Total aircraft movements at the 10 airports increased by 6% to 81,064, with the largest gains taking place at Inverness and Stornoway.

A number of new routes and services were introduced during the year by airline customers Eastern Airways (Inverness-Birmingham) and bmi (Inverness-London Heathrow) while BA franchisee Loganair increased the frequency of flights on many of its routes in the region.

Investment in infrastructure and upgrades required capital investment of £7.2 million. This included completing the installation of Kirkwall’s instrument landing system and the airport’s new fire service building, replacing airfield ground lighting at Benbecula and the upgrade and extension of the terminal at Islay.

Sandy Matheson, Chairman of HIAL, said the company had continued to support the development of the region and achieved growth in a competitive market environment.

“We operate in a highly commercial market where UK airports must now actively compete for airline business. We have achieved successes in terms of developing new routes and services during the year while maintaining and improving airport infrastructure and further enhancing our partnerships with key stakeholders,” said Mr Matheson.

“Good transport links are fundamental to the region and our airports facilitate business, leisure and welfare links that support its sustainability.

“The role of the airports and aviation is supported by both the subsidy we receive from the Scottish Ministers and the many partnerships in which we are involved. We are committed to building these relationships to ensure that the region continues to accrue benefits stemming from air connectivity. The ultimate beneficiaries of our work are the people, communities and businesses in the Highlands and Islands and those who travel into the area for business, leisure or social purposes,” said Mr Matheson.

Mr Matheson also highlighted the cordial and constructive relationship the company enjoys with the Scottish Executive, its Ministers and officials, and its many stakeholders across the region.

“We are heartened by the support we receive for our work and the widespread recognition of the vital role aviation plays in the development of the communities served by our airports,” said Mr Matheson.

“This company continues to evolve and is focused on the needs of its customers, the travelling public and the airlines. I am confident that in the current year we will build on this position to achieve growth in services at our airports and support improved air connectivity for the region, Scotland and the UK as a whole.”

HIAL Passenger Totals for 2003-2004 (1 April 2003 – 31 March 2004)

ENDS