My thoughts:
Today was the latest Airport Consultative Committee meeting, which I attended as usual. My 34th consecutive year! Here is an update.
CEO Update (Vincent Hodder)
LBA is in a strong position, ahead of budget relating to revenue/cash flow and with solid passenger numbers. Nevertheless, the balance sheet remains stretched, due to the works carried out over the winter plus the increased number of staff employed - and the pay increases that have been given as part of a 4 year deal with the UNITE and GMB unions.
In February 2022, LBA employed 54 FTE security screening staff.
In February 2023 they employ 108 FTE security screening staff.
In addition a further 12 will commence training this month, and a further 10 in April.
LBA averages 55,000 pax weekly at present, 80,000 per week in April and 120,000 per week in peak summer. The number of staff available already should ensure no repetition if last year's problems.
This is all reassuring. Financial stretching would be expected during this period of high development activity.
The reconfiguration of check in hall A is nearing completion. Considered a big upgrade, eliminating the claustrophobic feel caused by low ceilings and large pillars. Despite now having no ceilings with exposed ventilation equipment, it looks bright and modern. It cost £400k. The new check in equipment has been installed in conjunction with a company who is showcasing the LBA installation to other customers and therefore at lower cost. Further equipment is due for installation by May having been delayed by the manufacturer.
Definitely worth the price tag. Passenger experience will be improved, leading to more customers (and so on)
LBA saw 196,000 passengers in February 2023. This represents 106% of the February 2020 (pre-pandemic) passenger throughput. January 2023 was 100% and December 2022 was 99%. This places LBA as the fastest recovering UK airport from the pandemic. Consequently is will be back in profit for the 2022/23 financial year.
That is surprising yet somewhat unsurprising. I wouldn't have thought that we'd be the
fastest recovering airport, yet fast recovery seems unsurprising given a relatively standard Jet2 winter program, a strong Ryanair program and the arrival of Wizz. All excellent news though!
Wizz Air have been a huge benefit to LBA. To clarify for those who consider that moving to LBA from DSA was straightforward, it was explained that there were several airports seeking to secure Wizz when they left DSA. One airport to the NE of LBA was keen enough to offer to pay for them to fly from there. However, having met LBA management Wizz took the view that LBA represented the best option for them with the best likely passenger figures. This has been shown to be the case with high passenger loads and ongoing high demand. It is apparent that the largest proportion of Wizz passengers originate from the West Yorkshire area and this was the case even when operating out of DSA. Wizz are very happy with the performance of their routes and have indicated that they are not intending to move again, seeing LBA as the best option for them. This includes the scenario where DSA re-opens in the future. They provide 400,000 seats per annum out of LBA at present.
Quite frankly best case scenario for us with regards to Wizz. We of course know that a certain airport would love to offer subsidies (coughTeesside) but I am glad they chose LBA and even more glad that they are doing well.
There remains strong demand from a number of European airlines to fly into LBA, citing strong inbound demand from their domestic passengers for flights to LBA. No contracts are signed but LBA are hopeful of several new carriers/routes from summer 2024, with the possibility of one or two this year or over the winter of 2023/4.
I am hopeful. We have gained so many, we have lost a lot. Could this finally be LBAs time to grow largely with airline diversity?
Terminal update:
As I have reported previously, LBA management have been engaged in re-designing the interior of the 2019 approved terminal extension. RIBA Stage 3 design is now completed for the extension, the airport has gone out to tender, the list of tenderers has been reduced and the final contenders interviewed. The airport are now awaiting tenders from interested parties. This is a huge task which will take a couple of months. Contractors for this project will need to commit large sums simply to go through the tender process - one of the risks of the trade.
LBA are commencing the process now of seeking funding for this project and will meet lenders later this week. The process of obtaining funding should be completed by May/June. LBA expect to be in a position to provide a full explanation of the scheme including the works schedule at the next Consultative Meeting in June . It was confirmed that AMP Capital DO NOT provide funding for this work. The airport has to be self sufficient.
Good that they're getting on with it. Hopefully LBA can get all the funding they need (presumably they think they can given that they seem to be getting on with it)
The scheme is in 3 parts.
1. 2019 terminal extension
2. Existing terminal refurbishment /reconfiguration.
3. Extension of airside apron/ stands.
The first two should cost around £40m each. Part 3 is not yet priced nor immediately imminent.
The extension will increase the terminal footprint by 40%; increase passenger seating by 80%; increase retail space by 70% and also increase lounge space significantly.
The refurbishment of the existing terminal will result in major layout changes with improved facilities throughout.
It is hoped to commence the extension in the Autumn 2023 with completion late 2024..
This will be brilliant. The best case scenario we have right now. I hope it will turn around our fortunes significantly and erase our bad stigma.
Arrivals escalator.
This escalator has to be turned off to meet H&S requirements when passenger numbers are significant. This is because passengers alighting the escalator at the top are blocked off by passengers using to adjacent staircase. This leads to a pile up at the top and a risk to H&S.
It has been found that reducing the speed of the escalator and therefore reducing the speed at which passengers are trying to get off the escalator, will resolve the issue. The airport are therefore considering replacing the motor with one that operates at slower speed to reduce the impact on passenger flow at the top. This should allow the escalator to operate at all times.
Parkway Station update.
The Council have bought one farm and are buying land off a second farm to enable access to the new station.. Opening by 2026 remains the plan.
Discussions are ongoing however regarding the timetables for trains, as Network Rail say that further up the line, there is no capacity for any more trains at the Starbeck Level Crossing.
I sure hope it goes ahead. Access to Leeds, Harrogate and York (if its on the line I think it is)
Meanwhile, the council continues it's consultation regarding the access roads in the area. They recently bid for Government funding for this. It was refused along with all the other submissions out forward by Leeds. No surprise!
🙄
Jet2
Confirmed that one if the based 737 300s is to be retired shortly and will be replaced by a 737 800.
This I feel bittersweet about. For one thing I will definitely miss the B733 but on the other hand I've been looking at the loads and often feel the flights using B733s could easily fill B738s.
Ryanair.
Confirmed that two of the based aircraft this summer will be 737 MAX .
I certainly wasn't expecting 2 but I'm not going to complain!
Overall I am happy with the way things are going. I would also like to say thanks for not only giving us a good level of insight, but also for taking the time to report all this.