The recent sale of Gatwick, marking the start of a break-up of BAA’s virtual monopoly, may prove significant in the long run, but passengers will have to wait some time before feeling the effects.
Having been in control of Heathrow, Gatwick and Stansted for more than 40 years, as well as Edinburgh and Glasgow airports since the early 1970s, BAA has been criticised for poor service, with claims that investment in Heathrow’s monster growth led other airports to suffer.
In contrast, airports such as Manchester and London City, the latter controlled by new Gatwick owners Global Infrastructure Partners (GIP), have actively sought to expand route options and improve passenger facilities.
The separation of Gatwick from BAA’s group is certain to increase competition among the London airports, which should see facilities improve, while the airport’s notoriously high fees are likely to fall, creating more competition among top airlines for routes.
However, for the consumer, any fare reductions are likely to be limited due to the increase in Air Passenger Duty, and in terms of flight options, it is thought that most transatlantic and Far East flights will continue to fly out of Heathrow.
Gatwick, the UK’s second largest airport, is almost at bursting point and while GIP has already pointed to improving the security and check-in speed, there is limited opportunity for immediate expansion.
Plans are likely to be put in place to construct a second runway, enabling Gatwick to increase its capacity to 80 million passengers – more than the total that flew through Heathrow in 2008 – but there is a restriction on this development until at least 2019.
In the short-term, GIP chairman and managing partner Adebayo has said the company will focus on improving the passenger experience, from reducing the number of delayed flights, to investing in facilities ranging from airport lounges to security.
However, the sale does not mean BAA has the cash to spend on its remaining airports: it faces a £1 billion debt payment in March 2010, and has total borrowings of almost £10 billion.
Meanwhile, away from the Gatwick sale, Britain’s airports are going through an expansion boom, with terminal upgrades, runway extensions and new hotels all in the offing. Here’s a rundown of some of the latest plans around the country.
Terminal upgrades
New thinking over pre-flight passenger trends has seen many of the UK’s airports launch significant upgrades to their terminal facilities, with the increase in popularity of online check-in causing people to spend more time in airside areas before boarding their flights.
Belfast airport chief executive Brian Ambrose says: “In the past, passengers waited until the last minute before going through security to board their flights, but in recent years we have seen that reverse, with travellers spending more time airside.”
With this in mind, Belfast has begun a £6 million refurbishment to increase shopping facilities by 60%. Liverpool is also working on a £12 million terminal extension that will convert landside retail to airside by summer next year.
Jersey has invested £4 million in a new airside lounge, while Birmingham has just opened a new three-storey pier following a £50 million project to enhance airside facilities.
Bournemouth has big plans following a £45 million redevelopment, due to be completed mid-2010, which will double the size of its departures building and offer three times the retail and catering space. This comes after a complete runway overlay, an increase in aircraft parking capacity and an addition of 600 car parking spaces.
Leeds Bradford is also working on upgrades having received the go-ahead for a £28 million development to enlarge it by 4,600sq metres and add a range of improvements including a new airside departure lounge and a wider selection of retail and catering facilities.
And finally, redevelopment at Gatwick is underway, with an improved pier at its South Terminal to increase the number of aircraft stands. The inter-terminal monorail trains have also been removed ready for new ones in April 2010, with a bus replacement service in place until then.
Security matters
The move towards online check-in has had a knock-on effect on airport security and many airports are also upgrading these areas to improve the speed of the passenger journey from the airport entrance to the boarding lounge, both for business and holiday flights.
London City director of terminal services Melanie Burnley says: “With less use of traditional check-in desks, more passengers are heading straight to security upon arrival at the airport and we need to adjust our facilities to allow for this.”
London City will change its terminal to add new lanes in the security area and enlarge the departure lounge by late-2010.
Edinburgh is in the middle of a £2 million expansion of its immigration hall, while Belfast is increasing its security search capacity as part of its £6 million upgrade, to be finished in January, and Liverpool is set to complete a new search facility as part of a £12 million upgrade by mid-year.
Leeds Bradford will also enlarge its passenger security screening zone as part of its upgrades.
Runway extensions
Several UK airports are in different stages of runway extensions or upgrades, with Southend’s plans perhaps set to be the most significant if they are given the go-ahead.
The small airport, yet another in the London region, is hoping to extend its runway by 300 metres and build a new terminal for both business passengers and holidaymakers on European flights. It is expected to be completed by mid-2011, in time to be fully operational for the 2012 Olympics.
At East Midlands airport, the runway will be extended by 190 metres in a £4 million expansion that, while mainly for cargo, is likely to open up more long-haul destinations. Manchester and Guernsey, meanwhile, are both working on runway refurbishments, with the former set to cause delays to night flights next year.
Lounges and transportation
An innovative new lounge opened at Stansted in late September, offering economy passengers the chance to experience quality pre-flight treatment that is normally reserved for business-class passengers.
The No.1 Lounge, which offers panoramic views, has a bar and bistro with hot dishes and snacks and is available from £17.50 per adult.
At Birmingham, Emirates has announced plans to create a new 7,000sq ft business-class lounge, the biggest of any long-haul airline operating at the airport.
Parking has been a recent focus at Manchester, with top airport operator Purple Parking opening a new location for valet, short- and long-stay, chauffeur, and meet-and-greet services.
Aberdeen has also upgraded facilities with an extra 500 spaces, but the £5 million development stirred up controversy after significant price hikes were introduced.
Hotels
Anticipation of a continued increase in traffic through the London airports has led developers to put in planning applications for airport hotels.
Budget giant Premier Inn plans two new properties at Heathrow for Terminals 4 and 5, as well as one at Stansted and one inside Gatwick’s North Terminal. The Hilton Garden Inn is also planning a new 250-room hotel just five minutes’ walk from the terminal at Luton. All are due to open in 2011.
Liverpool is already benefiting from a new 160-room Hampton by Hilton hotel with direct access to the terminal building. Plans have been submitted for a 250-room hotel to be created by 2012 at Bristol Airport, and East Midlands could benefit from a new 200-room hotel planned for the Pegasus Business Park at Castle Donington.
