Kent International Airport : Frequently Asked Questions
http://www.infratil.com/kent_international_airport_faqs.htm
- Where is Kent International Airport (KIA)?
KIA is near Ramsgate in the east of Kent, England. It is approximately 110 km east of London.
- What are the Airport's key physical and operational
capabilities?
Runway: 2,752 metres x 61 metres with a full parallel taxiway - recently resurfaced and remarked. This runway is sufficiently long and wide to service B747s and the new A380s.
Aprons: New passenger terminal apron capable holding of 4 X B737s.
Separate large freight terminal apron and standing areas capable of holding 3 to 4 B747s.
Air Traffic Control and Navigation: Instrument Landing System (ILS) Category 1 on both runways (i.e East to West and West to East). Non-directional beacons (NDB) and Distance Measuring Equipment (DME) are also installed.
Fire Services: Three fire tenders and crew, ICAO and UK CAA compliant to Category 6 fire cover, consistent with large freight and narrow body passenger jet operations.
Land Area: The total area is 296 hectares:
- Approximately 20 hectares inside perimeter fence is available for
airport related development (esp. additional freight facilities)
- 46 hectares of immediately adjacent land is used for aircraft storage (connected by an apron across a road) and is developable for airport purposes.
Other Facilities: Various hangars and minor buildings leased on short terms to airport users and service providers.
- Approximately 20 hectares inside perimeter fence is available for
airport related development (esp. additional freight facilities)
- What are the infrastructure links and travel times?
KIA is 1.5 kilometres from the dual carriageways (A299 then the M2), which provide fast road links to the M25 (London ring road) and central London. Drive time to the M25 is approximately 1 hour and to central London approximately 1 hour 45 minutes.
KIA is within half an hour of Dover and Ramsgate ports (access to Europe).
London trains take 95 minutes to a station approximately 7 kilometres from KIA.
- What is the condition of KIA?
KIA is in good condition. Some of the assets are new and in excellent condition. Over the past few years significant expenditure has been made: a new Border Inspection Post (GB£3.8m), new aprons and taxiways near the Passenger Terminal (GB£9m), carparking land and development (GB£4m), perimeter fencing, instrument landing systems and refurbishment of the Passenger Terminal. As a result, both freight and passenger services can recommence and grow for a number of years with low capital expenditure requirements.
Some additional capital expenditure is likely in a number of areas, principally a new radar and some runway and electrical works. These costs have been included in a GB£9m capital budget over the first three years.
- What are the freight facilities?
KIA has a new 3,200m2 cargo facility incorporating a fully licenced Border Inspection Post (BIP) adjoining the apron. The BIP allows the import and customs and veterinary clearance of meat and fish imports into the EU.
A separate older freight warehouse also adjoins the apron. This is suitable for import and export of general freight.
- What are the freight prospects?
Infratil considers that air freight growth will continue to outperform GDP growth.
KIA is well equipped and positioned to develop into a significant freight airport servicing southern England, the UK and Western Europe.
Truck transporters can reach the warehouses and distribution service centres located in the London M25 ring road region in around 2 hours making KIA highly competitive with the much more congested principal London airports (Gatwick, Heathrow and Stansted) and the major Midland airports, East Midlands and Manchester.
KIA's major advantage is its lack of slot congestion and its ability to provide prompt ground service, a significant advantage to customers over the principal London airports. KIA can take delayed or unscheduled services, which other airports struggle to fit into congested passenger service dominated schedules. KIA will also offer freight airlines competitively priced aircraft parking.
The existing facilities are sufficient for medium term freight volume forecasts. Should demand be stronger, there is ample room for additional freight warehouses and aircraft parking.
Initially, KIA will focus on ad hoc freight operations and charters carrying:
- Imports of fresh produce from Africa and the Middle East;
- General imports and exports of general merchandise; and
- Humanitarian and Military service operations.
The Border Inspection Post should prove attractive to chilled meat and fish importers.
Longer term, KIA has potential to become a base for a number of scheduled freight operators.
KIA has previously handled approximately 44,000 tonnes per annum. Infratil believes that, over time, with improved service and a long term commitment this and more freight can be handled at KIA.
- Imports of fresh produce from Africa and the Middle East;
- What are the passenger facilities?
KIA has a recently refurbished 2,800 square metre single level terminal capable of handling up to 700,000 passengers per annum. It has:
- New baggage handling, baggage x-ray and passenger security equipment;
- 6 check-in desks;
- Separate departures and arrivals areas; and
- Food and beverage services, duty free store and car rental services.
- New baggage handling, baggage x-ray and passenger security equipment;
- What are the passenger prospects?
KIA is well positioned to provide regional passenger services to the population of east Kent through to east London. According to the 2001 census, over 500,000 live within a 30 minute drive of KIA, and 1.9 million people live within an hour.
The uncongested terminal, very proximate carparking and quick passenger handling is expected to make KIA attractive to passengers compared to the nearest major airport, Gatwick (approximately 110 kilometres west).
The business plan for the acquisition is based on the immediate Kent catchment, given the strong competition from Gatwick and Stansted, in particular for low cost, charter and business services.
The major passenger routes are expected to be jet services to holiday ("sun" and "snow") routes in Spain, Italy and France provided by low cost and holiday charter airlines.
Additionally, there is expected to be a smaller market for turbo-prop services to regional UK and western European destinations.
EU Jet, with limited marketing and resources, was carrying approximately 350,000 passengers per annum. Infratil expects to comfortably exceed that level over time.
Because the market will be dominated by outbound holidaymakers, reasonable carparking and food and beverage revenues are expected. This was an area that performed well while EU Jet was in operation.
The proximity of the Eurostar train and Channel ferry services to continental Europe has been taken into account when considering the potential size of the passenger market and the potential for services to places like Paris.
- What carparking is there?
A new 1,000 carpark facility is immediately adjacent to the Passenger Terminal with modern ticketing equipment. Land is owned and planning permission held to construct an adjoining further 1,000 carparks.
- What are the property development opportunities directly
related to KIA?
The land areas, both inside and outside the perimeter fence, are available for development for airport purposes. As freight traffic grows this should be attractive for warehousing and distribution centres. KIA would be a good location for Maintenance, Repair and Overhaul (MRO) facilities for airlines or third party providers.
- What is the planning status of KIA?
KIA operates between 07.00 and 23.00 with some flexibility to extend regular operating hours to between 06.00 and 24.00.
Unscheduled night flights permitted on case by case basis subject to charges for aircraft noisier than "QC4" - especially B707s, DC8s and some older B747s.
A formal regular night flying policy is under discussion with the local council, Thanet District Council.
Both the Kent County Council and Thanet District Council are supportive of growth at KIA. The draft local plans contemplate significantly more passengers (6 million by 2021) and freight (250,00 tonnes by 2011) than have recently been the case.
- What does the Department for Transport White Paper on The
Future Development of Air Transport say about the southeast of England and
KIA?
The White Paper considers that there will be a substantial increase in demand for passenger and freight services in the southeast of England and that the existing major airports will become capacity constrained. When considering growth options, KIA is recognised as a second tier airport with suitable runway and land and capable of handling 2 to 3 million passengers by 2030.
- Who will manage and run KIA?
Steven Fitzgerald, the CEO of Infratil Airports Europe. The two operating airports (Glasgow Prestwick and KIA) will be run as an integrated group. The business development and commercial teams at GPA will provide significant support to the local staff at KIA and and there are likely to be opportunities for exchanges between airports.
- What are the short term financial prospects for KIA?
Because of KIA's administration, it has no current freight or passenger business. It will take some time for these markets to be developed. Infratil has a long term view on KIA and is prepared to absorb operating losses for 3 to 4 years.
- Why has KIA failed in the past?
Airports carry high fixed costs. The capital costs are high and full air traffic control and fire services are needed even for infrequent services. In the past, KIA did not achieve the necessary freight or passenger volumes to cover its fixed operating and capital costs. Infratil considers that the long term outlook for freight services to the region are highly favourable and that there is strong local market for passenger services. To achieve satisfactory operating results will take patience and require close work with freight and airline customers to ensure that the services match the demand.
Planestation acquired its major customer, EU Jet. It would appear that EU Jet absorbed a significant amount of cash and the collapse of the Planestation occurred before the airport could realise its potential. Infratil will not be buying an airline.
- What are the immediate plans?
Infratil's immediate focus will be on re-opening KIA to freight traffic. This can only occur once the Civil Aviation Authority operating licence is re-instated (which is not expected to be problematic given Infratil is an existing UK airport operator and the key assets and positions remain in place at KIA). Within a very short time, Infratil will meet with the existing staff, local government officials and local business people to discuss its plans and request feedback and views.
- What is the situation with the staff?
KIA comes with approximately seventy staff. These are primarily in air traffic control, fire services and security along with key management and regulatory positions. This is sufficient to keep KIA operational and recommence freight operations at a modest level. Once passenger services recommence and/or freight services grow, more staff will be required.
- How is the purchase being financed?
With existing bank facilities of the Infratil group. No new equity will be raised.
- What is the history of KIA?
KIA was known as Manston Airfield or RAF Manston. It became operational in 1916. It played a significant role during the Battle of Britain in World War II.
A concrete runway was built in 1943/44. Runways and taxiways received a major upgrade by the US Air Force that used the airfield in the 1950s.
Commercial operations - alongside the military - began in 1959. A customs area was introduced in 1960.
In 1998, the Ministry of Defence sold RAF Manston to Planestation PLC (formerly trading as the Wiggins Group). Planestation made significant investments at KIA but was forced into administration (an equivalent of receivership) in July 2005, principally by the failure of its start-up low cost airline, EU Jet.