Resilient airport is making plans
Global recession, rising oil prices and increased taxation are giving the aviation industry a turbulent ride. But Newcastle International Airport is still flying high, says Dave Laws.
THE late Sir Adam Thomson, former chairman of British Caledonian, said once: “A recession is when you have to tighten your belt; depression is when you have no belt to tighten. When you’ve lost your trousers, you’re in the airline business!”
There’s truth in that. The global economic downturn is testing businesses in every sector. Aviation is no exception.
This year and next will be the most challenging period the industry has ever faced, as airlines and airports are forced to consolidate.
In the last 12 months alone more than a dozen airlines have ceased trading. There will be further casualties before recovery comes.
Things are made worse by plans to increase air passenger duty this year, and again in 2010. This could not come at a worse time.
We are lobbying the Government on behalf of passengers, urging a rethink of the potentially damaging impact from these tax increases of up to 112%.
Despite the current climate, Newcastle International and its airline partners are more resilient than many competitors across the UK.
Emirates reached a milestone in June, welcoming the 250,000th passenger on its daily service between Newcastle and Dubai. Hundreds of thousands of North East travellers every year are now, better than ever, connected to the Middle East, Far East and Australasia.
New routes are on departure boards too. Thomas Cook added three destinations to its Newcastle portfolio this summer; Cimber Air delivered further good news for passengers by reinstating daily flights to Copenhagen; easyJet began new flights to Malta; and Jet2.com launched new routes to Sharm el Sheikh, Ibiza and Split,.
Meanwhile, Newcastle International has been named best-performing airport in the UK for charter flight punctuality. So it pays to fly from your local airport!
It is often said that the airport runway is the most important main street in any town. Newcastle International is a major driver of regional economic development.
It contributes £400m a year to the North East economy and will have a vital role in ensuring the region’s economy recovers.
So despite the challenges, we have to forge ahead with ambitious plans.
Developments now include an on-site hotel, a filling station and an update of the Instrument Landing System.
This year a £6m runway resurfacing project was completed early and to budget.
Work is thus provided for many businesses and suppliers at a time when jobs are needed.
Dave Laws is chief executive, Newcastle International Airport
