Post by Humberside on Sept 27, 2011 9:58:38 GMT
www.norwichairport.co.uk/news.asp?id=146
Norwich International Airport announces increase in Airport Development Fee (ADF)
From 3rd January 2012 the Airport Development Fee charged to passengers departing from Norwich International will increase to £10 for adults aged 16 and over. However, the charge for under 16’s will be abolished.
Since 2007, against a backdrop of severe economic turbulence, the ADF has contributed to over £14.0m of investment in the Airport including a terminal extension, refurbished arrivals concourse, flight information screens, air traffic control equipment and fire training and rescue equipment.
The increase in the ADF is unavoidable if the Airport is to continue to provide connectivity for the region’s travellers by helping it retain and develop the route network and by contributing to the ever increasing and very significant investment requirements imposed by the regulatory bodies governing its activities.
As well as the existing payment facilities in the terminal building, the Airport expects to introduce internet purchase capability in the near future. This means passengers can purchase their ADF ticket at home prior to travel making the journey through the Airport even quicker than it is today.
-ends-
Notes to editors
Why is the ADF increasing?
It has become clear that the Airport will not be able to sustain the current route network, achieve the growth demanded by the region’s travellers and continue to improve the airfield and passenger facilities without becoming even more competitive. The only way this can be assured is through increasing ADF.
Over the past 3 years, during the severe downturn, the ADF has helped ensure the Airport remains able to strike the right deals with airlines to retain routes. Pressure from airlines and tour operators on margins (as ticket prices and holidays have themselves had to become cheaper) has meant that we have needed to offer more competitive rates than ever before in our history, in order to retain existing routes and stand any chance of growth.
The ADF also helps the Airport meet its statutory, regulatory imposed investment obligations to keep the airfield safe and compliant. This has been the focus for the Airport’s finite resources and this has meant that development of passenger facilities has been restricted.
Do any other airports have a charge like this?
Blackpool and Durham Tees Valley Airports joined Newquay and Norwich International by introducing ADF’s at £10 and £6 respectively in 2009 and 2010. Most other Airports charge for services they offer such as baggage trolleys, parking drop off, fast track security lanes, plastic security bags, business centres, wifi etc. All of these services are free at Norwich International.
Is ADF hindering the growth of Norwich International and forcing passengers to other Airports?
No, actually without the ADF maintenance and growth of the airport’s route network could not happen, and therefore passengers would be forced elsewhere to fly to their destination of choice.
Has the introduction of ADF damaged the Airport’s reputation and caused routes to be lost?
No it has not. Offered the choice of keeping the airport and allowing its potential to be realised or removing the ADF and being forced to fly from another more distant airport, we believe the former is the best option.
We are not alone in losing routes over the past few years and all Airports are constantly competing to get an airline to use its scarce asset – the aircraft – on a route of its choice. We are working very hard to attract airlines to fulfil some of the routes that have operated in recent years.
Because of the ADF we are able to be more entrepreneurial on pricing than most Airports however often this is simply not enough. Concerns about the number of people (load factor) who want to use a flight or the ticket price (yield) that an airline can achieve are often more persuasive in an airline’s decision making than the commercial deal the Airport can offer. The ADF is therefore not a guarantee of success, but it certainly helps our chances.
What are we going to do with the extra money raised?
The additional cash raised by the ADF will be used to deliver the route development strategy and will contribute to some essential investments required both on the operational airfield and to the passenger facilities.
Are there any improvements planned?
We will be introducing internet purchase capability for the ADF to enable passengers to buy their tickets online and avoid a queue in the terminal building. As part of the customer service improvement strategy we are collating the views of passengers (through the frequent flier forum, the Norwich Airport Passenger Consultation Group) to inform investment in passenger facilities.
Since 2007 the ADF has contributed towards:
• Retention of scheduled services that currently operate
• Provision of winter flights in Winter 10/11 to SSH, ALC and TFS and ongoing flights to Madeira
• New fire training ground
• Fire fighting equipment
• Air traffic control equipment
• Terminal building extension
• Refurbished arrivals concourse
• Security equipment
• Radar equipment
• Flight information system
In Summary
Until the ADF is as commonplace at regional airports as charging for drop off, baggage trolleys or paying airlines for checking in or printing boarding passes, it will be a point of debate. However, without it Norwich International will not have the opportunity to fulfill its potential.
From 3rd January 2012 the Airport Development Fee charged to passengers departing from Norwich International will increase to £10 for adults aged 16 and over. However, the charge for under 16’s will be abolished.
Since 2007, against a backdrop of severe economic turbulence, the ADF has contributed to over £14.0m of investment in the Airport including a terminal extension, refurbished arrivals concourse, flight information screens, air traffic control equipment and fire training and rescue equipment.
The increase in the ADF is unavoidable if the Airport is to continue to provide connectivity for the region’s travellers by helping it retain and develop the route network and by contributing to the ever increasing and very significant investment requirements imposed by the regulatory bodies governing its activities.
As well as the existing payment facilities in the terminal building, the Airport expects to introduce internet purchase capability in the near future. This means passengers can purchase their ADF ticket at home prior to travel making the journey through the Airport even quicker than it is today.
-ends-
Notes to editors
Why is the ADF increasing?
It has become clear that the Airport will not be able to sustain the current route network, achieve the growth demanded by the region’s travellers and continue to improve the airfield and passenger facilities without becoming even more competitive. The only way this can be assured is through increasing ADF.
Over the past 3 years, during the severe downturn, the ADF has helped ensure the Airport remains able to strike the right deals with airlines to retain routes. Pressure from airlines and tour operators on margins (as ticket prices and holidays have themselves had to become cheaper) has meant that we have needed to offer more competitive rates than ever before in our history, in order to retain existing routes and stand any chance of growth.
The ADF also helps the Airport meet its statutory, regulatory imposed investment obligations to keep the airfield safe and compliant. This has been the focus for the Airport’s finite resources and this has meant that development of passenger facilities has been restricted.
Do any other airports have a charge like this?
Blackpool and Durham Tees Valley Airports joined Newquay and Norwich International by introducing ADF’s at £10 and £6 respectively in 2009 and 2010. Most other Airports charge for services they offer such as baggage trolleys, parking drop off, fast track security lanes, plastic security bags, business centres, wifi etc. All of these services are free at Norwich International.
Is ADF hindering the growth of Norwich International and forcing passengers to other Airports?
No, actually without the ADF maintenance and growth of the airport’s route network could not happen, and therefore passengers would be forced elsewhere to fly to their destination of choice.
Has the introduction of ADF damaged the Airport’s reputation and caused routes to be lost?
No it has not. Offered the choice of keeping the airport and allowing its potential to be realised or removing the ADF and being forced to fly from another more distant airport, we believe the former is the best option.
We are not alone in losing routes over the past few years and all Airports are constantly competing to get an airline to use its scarce asset – the aircraft – on a route of its choice. We are working very hard to attract airlines to fulfil some of the routes that have operated in recent years.
Because of the ADF we are able to be more entrepreneurial on pricing than most Airports however often this is simply not enough. Concerns about the number of people (load factor) who want to use a flight or the ticket price (yield) that an airline can achieve are often more persuasive in an airline’s decision making than the commercial deal the Airport can offer. The ADF is therefore not a guarantee of success, but it certainly helps our chances.
What are we going to do with the extra money raised?
The additional cash raised by the ADF will be used to deliver the route development strategy and will contribute to some essential investments required both on the operational airfield and to the passenger facilities.
Are there any improvements planned?
We will be introducing internet purchase capability for the ADF to enable passengers to buy their tickets online and avoid a queue in the terminal building. As part of the customer service improvement strategy we are collating the views of passengers (through the frequent flier forum, the Norwich Airport Passenger Consultation Group) to inform investment in passenger facilities.
Since 2007 the ADF has contributed towards:
• Retention of scheduled services that currently operate
• Provision of winter flights in Winter 10/11 to SSH, ALC and TFS and ongoing flights to Madeira
• New fire training ground
• Fire fighting equipment
• Air traffic control equipment
• Terminal building extension
• Refurbished arrivals concourse
• Security equipment
• Radar equipment
• Flight information system
In Summary
Until the ADF is as commonplace at regional airports as charging for drop off, baggage trolleys or paying airlines for checking in or printing boarding passes, it will be a point of debate. However, without it Norwich International will not have the opportunity to fulfill its potential.