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Nick Jones, Chief Executive, Newcastle Airport: “We’ve done a lot of work with the UK Government in relation to the Northern Powerhouse project. Almost 3,500 people work at Newcastle Airport, and it generates hundreds of millions of pounds in GVA [Gross Value Added] across the region. Of course, it’s also critical to key businesses and key sectors of the economy in terms of delivering connectivity.”

The Northern Powerhouse is a flagship UK Government policy designed to boost regional economic growth in the north of England, with improved connectivity and transport infrastructure at the heart of these plans.

Newcastle Airport is perhaps the perfect embodiment of the Northern Powerhouse – traffic is growing, new routes are enhancing connectivity, and infrastructure investment has further improved the airport journey for travellers. Indeed, Transport for the North, which was created as part of the Northern Powerhouse, earlier this year published a report by the Independent International Connectivity Commission, which highlights Newcastle Airport’s very specific role as the gateway to North East England.

“We’ve done a lot of work with the UK Government in relation to the Northern Powerhouse project,” explains Nick Jones, Chief Executive, Newcastle Airport. “Almost 3,500 people work at Newcastle Airport, and it generates hundreds of millions of pounds in GVA [Gross Value Added] across the region. Of course, it’s also critical to key businesses and key sectors of the economy in terms of delivering connectivity.”

The airport is a successful public-private partnership between seven local authorities in the North East region and AMP Capital, the Australian infrastructure fund, which have a 51% and 49% shareholding respectively. “In many ways the success the airport is seeing at the moment is a result of that strong partnership, through which we’ve been able to grow passenger numbers and offer an increasing choice of destinations,” says Jones.

4.8 million passengers were welcomed in 2016 – up 6% on the previous year – and growth has continued into 2017, with over five million passengers forecast this year. This is being stimulated by a balanced mix of full-service, low-cost and charter carriers. Most recently, Ryanair added new Faro and Madrid routes to its winter schedule from Newcastle, increasing its total to 10 routes.

“Two years or so ago, Ryanair was operating just one route from Newcastle,” Jones comments. “This summer it will operate 12, so a lot of our recent growth is down to this, but we’ve also seen the return of Berlin with easyJet, as well as growth and returning routes from Jet2.com and a number of our airlines. We’ve seen strong load factors across the board, so that’s also delivering growth.”

Newcastle is directly connected to 82 destinations, with British Airways to London Heathrow being the largest single route. Meanwhile, Air France-KLM operates from Newcastle to the Amsterdam Schiphol and Paris-CDG hubs.

Significantly, in 2007 Newcastle secured a daily Emirates service to Dubai. Having started with an A330 operation, the airline upgraded to a daily 777 service in 2012 and the route now carries 250,000 passengers annually. “It’s had a massive impact in terms of the regional economy,” says Jones. “The route has opened up significant trade routes for North East businesses across the globe, particularly to the east, and it’s also been a revelation in terms of cargo. The figure we quote regularly is that the value of flown exports from Newcastle before this route started was less than £20 million (€23m) per year, and that has grown to well over £300 million (€347m), so that’s been a game-changer.”

Digital communication ‘to stay one step ahead’

A progressive aviation marketing approach has been developed in recent years. The first phase was about creating awareness under the banner of ‘Discover the World from Your Airport’. Digital communication is a big part of the strategy, and the recently-relaunched airport website has a dedicated ‘Discover’ page, showcasing the destinations served directly, plus all of the potential onward connections via Heathrow, Amsterdam, Dubai, Dublin and Paris.

“It’s about reaching out to the travelling public to say it’s ‘your airport’,” Jones explains. “The Discover page has seen significant traffic over the period of the campaign, with millions of page views, so that’s been a great success.”

The new website is fully responsive for tablets and smartphones, and Newcastle Airport is very active on the main social media platforms – Twitter (66,000 followers), Facebook (31,000 ‘likes’), Instagram, LinkedIn, and most recently Snapchat. “As the preferred platform of each generation changes, we have to keep our finger on the pulse. Our aim is to stay one step ahead in that respect,” Jones adds.

Phase 2 of the campaign, meanwhile, has focused on some very area-specific marketing messages across the North East region, which have been received very positively. The campaign has covered its core catchment area of Northumberland, Tyne & Wear, County Durham, Teesside, and beyond.

“We work closely with our airline partners in terms of marketing strategy, and to ensure all routes are promoted,” says Jones. “We direct customers to the Discover website, and when a new route is launched we make it more prominent on that page.”

Success in developing the route network and increasing traffic has allowed Newcastle Airport to invest in enhancing passenger experience. The latest developments have seen transformation of the landside facility, with a new terminal floor, new self-service bag drop kiosks, and upgraded baggage systems. “We’ve installed new primary radar systems on the roof as well, so there is significant investment going on, and that follows a £15 million (€17m) investment in the departure lounge and a new 1,600-space long-term car park,” Jones notes.

Landside upgrades will be complete imminently, and focus will then shift to updating the long-term master plan to 2030. That will go out to consultation later in the year, covering all aspects of airport development and how Newcastle will accommodate an almost doubling of passenger numbers.

All of these developments are undertaken against the backdrop of a strong environmental and social agenda. A state-of-the-art noise monitoring system and air quality monitoring are just two aspects, while the airport liaises regularly with the local community in terms of biodiversity.

Brexit and Air Passenger Duty

While looking to a bright future, the airport has recently celebrated some significant anniversaries. 2015 saw a year of celebrations for Newcastle’s 80th anniversary, while February this year marked 50 years since then-UK Prime Minister Harold Wilson opened the current terminal building. Then May saw the 40th anniversary of then-US President Jimmy Carter landing in Newcastle on Air Force One. “The celebrations we’ve had over the last few years are a way of keeping the airport connected with the region and the community that it serves,” Jones comments.

He adds that the priorities now are two-fold: Brexit and Air Passenger Duty (APD). Once the outcome of the UK General Election on 8 June is known, Jones urges the new government to prioritise early certainty for the aviation industry, potentially through transitional agreements, and the securing of new air service agreements as part of the Brexit negotiations. “We will work alongside ACI EUROPE to achieve that,” he says.

The issue of APD is a particular concern for airports in northern England, as the devolved Scottish Government has been given the authority to reform and reduce the burden of APD north of the border. “We’re very concerned about the impact on airports in the north of England, so we’re asking the UK Government to clarify its intentions in the event that Scotland lowers APD, which we’re expecting it to do in April next year. We need clarity from the UK Government and want them to match any reductions in Scotland across the rest of the UK. That way, we’ve got a fair system and a level playing field,” Jones concludes.