1. Making Best Use of the UK’s Airport Infrastructure

2. Topics Oxford Airport – situation today and aspirations Oxford Airport – what’s new SE UK infrastructure – what if, when, how? Heathrow & Politics! HS2, London, Birmingham and other rail and connectivity solutions Who needs airports anyway?

3. Oxford’s Infrastructure

4. Oxford Airport’s Challenges ‘Grown-up’, established, regional airlines very risk-averse Current airline culture expects airports to waive most fees and pay for most marketing for typically first year of operations or more New routes by an unfamiliar airline from airport that people don’t associate with commercial flights are tremendously difficult to market Typical regional airline business model is to breakeven at 60-70% average load factor after one year to 18 months and have sustained profitability after year two – the big regional players used to work on year three before making profit Most ‘young’ regional airlines don’t have cash to sustain more than six months start-up period with initially low load factors

5. Oxford Airport Challenges However, clear OXF demand long been identified, at the right price Business traveller is target market bias for max viability Over an hour to BHX or LHR, so Oxford unusually isolated for UK city Edinburgh, Belfast, Glasgow, Amsterdam, Dublin and Paris statistically most viable for day-return flights. Amsterdam with connectivity to rest of the world is most viable along with Edinburgh Seasonal flights – Jersey, Geneva (skiing) were established, but very low margins for a lot of hassle, but not dismissed

6. Oxford’s Future? Still aspire to get back commercial routes, but not at a loss Secured some government backing for an Edinburgh route this year, but original airline partner has challenges, still exploring options/partners Private, ‘business aviation’ is far more profitable with far less hassle Best predictions long term would be for five or six destinations being served with up to 12 return flights a day with aircraft size increased from 30 seats to 100+ (max 120) to suit demand – or flight frequency Would need to build dedicated airline terminal beyond a few hundred passengers a day (currently use VIP passenger handling facility)

7. Smaller Regional Airports New C-Series can access smaller runways – down to 4,000ft (OXF is 5,000ft – same as London City), with up to 120 passengers and fly well over 2,500 miles, or further with a smaller passenger load

8. Transatlantic flights now possible Non-stop all business class (40 seats) flights proposed from London to New York from London City – other US destinations too Only aircraft that can do this is new Bombardier C-Series, though other aircraft under development Opens door to other small regional airports like Oxford being useable for long-haul flights, although niche, high-end, pricey…

9. New opportunities through new EU legislation Single-engined aircraft will be permitted to operate commercially for first time in Europe this autumn Reduces costs 25-50% over twin-engined alternatives New short business shuttles and cheaper private charter solutions

10. UK’s position right now Expected final decision on another ‘London’ runway in summer Pressure to go with Davies Commission endorsement of 3 rd LHR RWY Air quality and mitigation of carbon emissions now top of agenda Waiting for Transport Committee inquiry on airport interconnection Politics affecting progress with mayoral elections, EU referendum, Boris/Osborn/Cameron power plays (although denied…..!) Heathrow has already contracted companies, ready to go Likely any decision will be challenged by Judicial Review

11. Heathrow….. Heathrow is completely full – a slot pair sell for £60m! A major hub airport needs more than two runways – AMS has six! Gatwick can build another runway from 2019, but is not a hub airport and arguably never will be….and it’s another hour away from the core user base (drive) Amsterdam Runways:

12. UK so hopelessly slow Terminal 5 - took 20 years HS2 - will be 30 Years – has had 17 failed Judicial Reviews Crossrail – 40 years (1974) Another London runway – +50 years and counting Oxford Parkway – 100 years for new UK city to London rail link! …and yet in middle of south Atlantic we can build this – St.Helena airport in just three years…

13. Connectivity

14. HS2 – Why? Arguably of no use to anyone living between London and Birmingham At £55 Billion, £462/mile, staggeringly costly and NO HEATHROW LINK!!! Revised estimates indicate £80 Billion Turns 1hr 24 min Birmingham city journey into 50 mins (but BHX in 38) For same price one could build over 500 very decent, regional airports!!! Wont be completed until 2026 (if at all!) – BHX airport happiest beneficiary! Stansted Northolt Heathrow Gatwick How about maglev link for all London Airports as well as turning Northolt into ‘3 rd ’ LHR runway? Joins five runways together and costs massively less than HS2 or ‘Boris Island’ estuary airport 40m 60m 7m 40m

15. There’s HS2 and then there’s real ‘High Speed’ Shanghai Transrapid Connects airport to city metro system Up to 311 mph (normal @ 268mph) Completed in 2004 – just 2.5 years to build Cost $1.2 Billion US (£49m/mile) Reaches 217mph in 2 minutes Does the 19 mile run in 7 minutes 574 passengers per train

16. Northolt Solution? 90% civil use by private aviation today – that can relocate easily (to Oxford!) Realignment of runway to match Heathrow runways is relatively straightforward Right next to Hillingdon tube station Can be connected to Heathrow by underground high speed maglev in 5 minutes + secure baggage transfer solution Massively cheaper and quicker to develop than any Heathrow or Gatwick solution

17. Northolt Solution - 2 Grossly underutilised by military, 90% used by private jets today – could be 10 x busier Proposed 3 rd LHR Runway Option 1 Realignment of Northolt runway to run parallel with Heathrow’s would significantly increase useable capacity and negate conflict with Heathrow air traffic – just 5 miles north of proposed 3 rd runway position at a fraction of the cost…..39 miles from Oxford 5 Miles

18. Northolt Solution - 3 Realignment without diversion of A40 (and longer) Realignment with diversion of A40 (and longer) Hillingdon Tube Station A40/M40 direct to Oxford – 40 miles

19. London City Airport (LCY) Plans for larger terminal, new aircraft stands, new taxiway were blocked by Boris Johnston, infuriating business community Had support of local council, local business and mayor’s own officers LCY now appealing as development would almost double contribution to UK economy and create another 1,600 jobs with new flights to Middle East and USA Key works could be completed by 2018 if given go-ahead All part of political wrangling over LHR 3 rd Runway, mayoral elections and challenges to top of government but noise cited as primary issue

20. Point of Note Birmingham Airport, biggest beneficiary of the establishment of the £55 Billion HS2 (will be around 45 minutes from Euston to terminal) is 48% owned by the Ontario Teacher’s Pension Fund who now also have the majority stake in London City Airport (just sold for £2 Billion) and the high-speed rail link between London and the Channel Tunnel. They also own Belfast International Airport, Bristol Airport, Brussels Airport and Copenhagen Airport. They are capitalised at around £80 Billion of which 10% is in major infrastructure

21. Who needs airports anyway?! World’s largest aircraft resides in Bedford, UK Up to 92mph max speed 303ft x 143ft up to 5 days endurance airborne 10 tonne payload Oxford – Cambridge?!

22. Thank You & Questions? James Dillon-Godfray Head of Business Development jdg@londonoxfordairport.com