The Aviation White Paper and the Highlands

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The Aviation White Paperand the Highlands
Islands

• Tom Matthew
• Highlands Islands Enterprise

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The Highlands
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Inverness Medical Part of Johnson Johnson
Group 1,200 employees Exporting world-wide Staff
travelling world-wide on a daily basis
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Ensuring Access To Hub Airports
We cannot have a situation where the regions
are denied access to London Alastair Darling
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Inverness ServicesPresent Provision

• Other Cross-Border Services Manchester Birm
  ingham Stockholm

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Research Into The Impacts Of Loss of
Inverness-Gatwick Service (1)

• Independent study, undertaken in December 2001
• This was before easyJet Gatwick service
  bmi Heathrow service
• Based on loss of full service operator with
  additional services to Luton or Stansted

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Research Into The Impacts Of Loss of
Inverness-Gatwick Service (2)

• Short-run employment loss of 1,400 Full-Time
  Equivalent jobs
• Long term impact could be greater - not least
  through perceptions of the region
  beingperipheral, with minimal interlining and
  premier routes from the South East
• Impacts generally felt in premier businesses
• Traditional cost-benefit analysis cannot
  quantify the negative impacts in terms of trips
  no longer made
• Yet when Inverness-Heathrow ceased in 1997,
  traffic between London and Inverness fell by 20

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The Findings In Context

• Impact equals one in every hundred jobs in the
  region
• Loss of premier businesses regional GDP per
  capita is only 75 of the UK level under 3
  of the regions businesses employ more than 50
  people

• Low population (434,000) means that business base
  needs to be outward looking-exports and tourism
• Limited business base means that we require the
  import of external expertise
• Impacts would be felt widely in geographic terms

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Caithness Sutherland 7
Ross and Cromarty 18
Inverness Nairn 43
Skye Lochalsh 3
Moray, Badenoch Strathspey 29
Origin of residents using the BA
Inverness-Gatwick service
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Significance of Interlining

• In the case of Inverness some firms were
  there on the assumption that they could easily
  get to London and the US (Alastair Darling)
  but..
• The White Paper defines London as Heathrow,
  Gatwick, Stansted, Luton and City

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London AirportsService Profiles
At August 2003
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Interlining Gatwick and Luton Compared
LTN
GATWICK
LHR
Source CAA Data
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Possible Alternatives?

• Markets too thin to support extensive direct
  services to non-UK hubs
• Interlining opportunities at regional airports
  are much less than at south east hubs
• Surface access only one direct daytime train
  between Inverness and London which takes 8 hours

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Conclusions

• Air services to London generate very significant
  economic benefits
• Need a mix of services to London airports-no
  frills and full service
• This must include connections to hub airports,
  with adequate frequencies and timings
• Interlining opportunities are essential,
  especially where the remote airport has limited
  connectivity
• Defined circumstances for a PSO should reflect
  surface travel alternatives
• Good air services are essential to growing
  regional prosperity