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Wings Over Wick.

The need to strike a reasonable balance between regulatory control, safety standards and airport operations was highlighted at the prestigious Aviation Club of the UK in London today (5 June 2003).

Bob Macleod, managing director of Highlands and Islands Airports Limited addressed the gathering of leading aviation industry figures on the subject of amelioration and compared the regulatory approach in the UK to other countries where regional airports are more cost effective to run.

Highlands and Islands Airports, the operator of 10 airports in the North of Scotland, has commissioned a detailed study on the amelioration of some of the costs and more onerous operating standards that currently apply in the UK. This study, due to be completed at the end of 2003, will weigh operating regulations against the retention of current safety standards.

Speaking to the club�s meeting at the Institute of Directors in London, Mr Macleod said: �There are fundamental differences in the way in which the UK Civil Aviation Authority and other significant signatories of the International Civil Aviation Organisation conventions approach safety regulation and in particular the review of regulations. In Australia, New Zealand, Canada, and the United States, for example, there is a robust safety regulatory review process that is totally transparent, draws upon the experience of all stakeholders and, most significantly, is based upon assessment of risk.

�In these countries aviation safety regulations that have high cost impact on the community are periodically reviewed and subsequently modified to reflect local conditions and the concept of mitigating risk at reasonable cost. The result of this is that smaller airports, by virtue of their scale and thus risk exposure, are treated differently than larger airports with a concentration of public risk.

�The UK CAA, on the other hand, seeks to apply the same regulations to all airports, irrespective of scale. Regrettably the UK CAA does not have a transparent regulatory review process and, therefore, does not benefit from the experience and inputs of stakeholders.

�At our 10 airports we believe that we are faced with excessive regulatory costs because the UK CAA applies its standards across the board. The cost impact on us is very substantial and is a major factor in the high level of subsidy we receive from the Scottish Executive to provide airport infrastructure to facilitate lifeline air links. We are constantly concerned about overprovision and the high cost of meeting UK CAA regulations. We would welcome the introduction of a system which applies more appropriate regulation at reasonable cost while maintaining safety standards.�

Mr Macleod cited the example of Barra Airport in the Outer Hebrides and its beach landing strip that caters for around 8,500 passengers a year.

�Barra with its beach runway has to comply with the same operating regulations and standards as London Heathrow even though the operating environment and conditions are markedly different. Barra handles less than 9,000 passengers a year while Heathrow handles 9,000 an hour. I keep three fire appliances on stand-by at Barra for a 19 seat Twin Otter. This is a prime example of blanket regulations placing a hard to justify burden on our operations,� said Mr Macleod.

�We have now set in progress a study that will examine the retention of current safety standards at smaller airports and the possibility of relieving some of the associated costs and more onerous operating standards.�

Commenting after his speech, Mr Macleod added: �It was a great honour to be invited to address the Aviation Club of the UK and to follow in the footsteps of aviation industry leaders such as Rod Eddington and Richard Branson. It was also an opportunity to address an issue that has a huge impact on the operations of regional airports such as those we manage in some of the UK�s remotest communities.�

Notes
Highlands and Islands Airports Limited manages and operates 10 airports in the North and West of Scotland on behalf of the Scottish Executive at: Barra; Benbecula; Campbeltown; Inverness; Islay; Kirkwall; Stornoway; Sumburgh; Tiree and Wick.

The company handles an annual budget of almost �30 million (one third revenue and two-thirds subsidy from Scottish Executive) and is responsible for providing airport infrastructure, facilitating lifeline air links and promoting economic sustainability and social inclusion in Scotland�s remoter regions.

In year ending 31 March 2003 the company�s 10 airports handled more than 864,000 passengers and over 76,000 aircraft movements.

For further information see the www.hial.co.uk  website.