Guest Speaker: David Winstanley MA FCMI, Chief Operating Officer (COO) Birmingham Airport David has spent the vast majority of his professional career within or associated with aviation, firstly as an officer in the Royal Navy and Royal Air Force and currently as Chief Operating Officer at Birmingham Airport. David originally joined the Royal Navy in 1984 and attended Britannia Royal Naval College Dartmouth before joining the Royal Air force in 1986. Originally trained as an Air Traffic Control officer in the RAF, David enjoyed a wide-ranging and varied military career, serving across the UK and abroad. He spent the early part of his career as a controller and then later gained functional expertise in airfield operations, career management, project and requirements management, regulatory compliance, risk management and leadership development. Promoted to Wing Commander in 2002, he was selected to attend advanced staff training at the Military Defence Academy in Shrivenham, on completion of which he gained his Masters degree in International and Defence Studies with Kings College London. In the last 3 years of RAF service, he established a reputation in the field of leadership development and played a key role in the establishment of the now highly regarded RAF Leadership Centre. David left the Royal Air Force October 2006 and joined Centrei Ltd as a Director and consultant to continue his work in the leadership development arena. David joined Birmingham Airport in 2007 as Head of Regulatory Compliance and Safety. In May 2009, David took over responsibility for all operational security matters and fulfilled the role of Head of Aviation Security prior to being promoted to Operations Director in June 2010. David took up his current role as Chief Operating Officer in May 2014. David lives in Rutland with his wife Lindsay and their 2 children, Laura 19 and James 17. David lists his main interests as military history, cricket, skiing, cycling and keeping fit.

1. Breakfast Presentation
Wednesday 12 November 2014
David Winstanley
Chief Operating Officer

2. Scope
• The Airport ‘Past’
• The Airport ‘Today’
Aviation Industry/Davis Commission
Regional/City growth
• The Airport ‘Future’

3. Elmdon Airport - Birmingham 1939

4. AAAAiiiirrrrppppoooorrrrtttt UUUUttttooooppppiiiiaaaa

5. AAAAiiiirrrrppppoooorrrrtttt RRRReeeeaaaalllliiiittttyyyy

6. Birmingham Airport Today
• BHX best connected airport by road and rail in UK
• 159 direct international flights
• 45 Airlines
• 3 major alliances – Star, Skyteam, One World, plus non-aligned
• 400 connections over major and intermediate hubs
• New runway extension 3000m
• £113m t/o, £49m EBITDA, 6000 employees on site in 140 companies
• 1000 acres operational site

7. Aeronautical Revenue
£47m in FY13 from aeronautical
revenue streams c45% of income
Good presence in all four key
sectors
c. 85% of aeronautical revenue
attributable to Scheduled, Charter
and Low Cost flights
Diverse base of airlines mitigating
the risk of airline failures
easyJet started first year-round
service in 2012 and is seen as an
opportunity for future growth
Monarch, flybe, easyJet plus other
flag or scheduled carriers growing to
fill vacated or underserved routes at
Birmingham
Top 5 airlines by % of total passengers
16.20%
20.00%
16.00%
12.00%
8.00%
4.00%
Key Airlines
14.40% 14.10%
11.30%
6.90%
0.00%

8. Commercial Revenues
Strong base of recognised high street brands
Retail Income Breakdown Offers diversification in revenues from traditional (£million)
aeronautical revenues
Income from shops consists of basic rents and
concession fee
Long term contracts with minimum volume
guarantees providing protection to shocks in
passenger numbers
Significant progress made in last 3 years with
combination of 2 Terminals driving improved
performance. Income growth of 3.5% CAGR and
yield growth of 5.0% CAGR over past five years
Major High Street Brands
50
40
30
20
10
0
08/09
09/10
10/11
11/12
12/13
Duty Free Car parking Catering Shops
Car hire Forex Other
Catering: 17
Retail: 26
Other: 18

9. In House Outsourced/Partnered
• Terminal operations
• Fire and Rescue
• Airport security
• Baggage system
• Passenger services information
• Airport control
• Marketing and sales
• Motor transport
• Airport bussing
• Capital project development
• Airfield Engineering
• Health and Safety
• Finance
• Air Traffic Control – In sourcing
• Baggage handling
• Passenger handling
• Air cargo
• Airfield security
• Border control
• Airport policing
• Trolley management
• Fuel supply
• Retailing
• Food and beverage operations
• FBO and aircraft maintenance
• Capital project works
Operations (c £60m)

10. Bcir £m2i5n0gmh aInmv eAsirtmpoerntt

11. The new Runway Extension £48m

14. Game Changer: 400m = 2500nm

15. International Pier
One Terminal: high quality flexible space

16. Enhanced Security Facilities
Centralised security

17. Airport Collaborative Decision Making

18. New ATC Tower

19. New Hangar Facilities

21. UK Aviation Growth – Airports Commission

22. Facts v. Fiction?
Heathrow Argument:
• Only gateway to emerging markets (China)
• Only way for business to grow and drive UK economy
• Mega Hub is the future
Considerations:
• Build cost for Heathrow’s 3rd rwy c £16.bn v. £9.bn for Gatwick
• Noise impact: Heathrow 1m affected v. 40k
• Mega Hub Debate?....Move to ‘Point to Point’
• Supporting Infrastructure?
Choice: Is it simply Heathrow or Gatwick?

23. Future Aviation Strategy ?
What of the Devolution Debate?
• Growing the UK economy means supporting great cities
• Great cities need great airports
• Customers need choice
This is why we support a competitive network of great airports for
great cities, and not a single market-dominating mega hub which
would harm the economy, passenger choice and value.
We need Heathrow to remain strong, and others to have the
chance to grow as well.

24. The future
High speed rail – step change in connectivity

25. The ‘Changing Passenger’ Experience
Paperless/Card free travel
Wearable Technology
End to End Travel Apps
On Board Wi-Fi
Changing Terminal Design

26. The Future ~ Master Plan?

27. The Future ~ Master Plan?

28. Thank you and Questions?