Future priorities for the 10 airports operated by Highlands and Islands Airports Limited have been set out with the launch of the company’s new strategic plan.

Following five consecutive years of passenger growth at its airports HIAL is aiming to deliver further enhancements to the scheduled air network, develop its largest airport at Inverness and improve its financial performance to offset the requirement for Scottish Executive subsidy across its operations.

HIAL’s managing director Inglis Lyon said: “Air services play a vital economic and social role in this region which includes the UK’s most remote communities. Our 10 airports directly support air access and have delivered increasingly significant benefits for the region’s businesses and communities over the past five years.

“This plan sets out how we intend to be a catalyst for development within the Highlands and Islands while improving our efficiency as a business. Air travel will directly contribute to economic growth, support inward migration and ensure that this region remains competitive.

“Our business mission going forward is to provide fit for purpose airports, develop the region’s air network and provide value for money through commercial innovation, prioritising investment, partnership working and overall efficiency. This is what will deliver best value for the region and our shareholder,” said Mr Lyon.

Route development and improvements to existing air services have seen more direct travel opportunities open up for the region since 2000. It has also been a major driver for inbound tourism. HIAL’s total passenger throughput has increased by 47% since 2000 to a record total of 1,153,000 in the year ending 31 March 2006 reflecting the continuing demand from travellers for air services.

The plan highlights a number of major development projects. These include physical infrastructure which will offer service enhancements, work with airlines to deliver new air services and initiatives to capitalise upon commercial and socio-economic development opportunities.

HIAL’s targets include:

• achieving average total passenger growth of 10% per annum;
• introducing new air routes;
• increasing revenue from non-aviation sources;
• delivering efficiency savings in line with its Efficient Government target; and
• introducing an Environmental Management System to create resource efficiency.

The future development of Inverness Airport is a key priority for the company both in terms of securing new cross-border and international air services and improving the airport’s financial performance.

Mr Lyon said: “Inverness is our largest and fastest growing airport. It achieved passenger growth of 85% between 2000 and 2006 and has the potential to handle more than one million passengers a year by 2010 and 1.8 million by 2030.

“We aim to make the airport profitable by achieving commercial returns from the asset while ensuring that it continues to develop as the region’s principal airport. The airport’s outline master plan, due to be published at the end of August, will set out the projected land use and infrastructure developments for the site to 2030.”

Short term milestones in the airport’s development are:

• achieve circa one million passengers by 2010;
• north apron upgrade to accommodate more scheduled and executive aircraft;
• expansion of on site car parking to more than 1,000 spaces with distinct short and long stay provision;
• development of seven-day local radar/controlled airspace; and
• reconfiguration or expansion of terminal building to accommodate higher passenger numbers.

Inverness Airport currently generates more than £120 million per annum for the Highland economy and supports more than 2,300 full time equivalent jobs in the region. Its future development will see it play an even more important role as a catalyst for inward investment and tourism.

HIAL also hopes that the initial success of the Scottish Executive’s Air Discount Scheme will support its work in encouraging operators to increase capacity on Scottish domestic routes, particularly those linking island communities with the mainland.

The opportunity to generate new income from land and property is another priority for HIAL with the 250 hectare Inverness Airport Business Park joint venture the most advanced project of this type and opportunities being developed at its other airports.

“Freeing up land that is surplus to operational requirements for economic or social development will benefit the local economy and generate new returns for us in the future. We have a number of sites around our airports identified for uses including housing, light industrial and hotel accommodation and aim to progress this development with public and private sector partners,” said Mr Lyon.

Copies of the strategic plan are available from HIAL’s head office at Inverness Airport or by clicking here.