Hugh Aitken gave delegates an overview of Scotland’s current connectivity with its external markets through aviation links.

It was projected that 150 destinations would be served direct from Scotland this summer. Links with hub airports were particularly vital. Domestic flights involved 11.3 million passengers per annum. The Route Development Fund in recent years had given Scotland comparative advantage, but since the demise of the Government’s contribution due to State Aid issues, competitors had caught up with Scotland since.  BAA had committed £130m to the RDF over 5 years, and continued to provide on-going support to airlines through reductions in operational charges.

The growth in aviation was frequently thought, incorrectly, to be one of the major contributors to climate change concerns. In fact its role in carbon emissions was only 5%. The inclusion of aviation in the Emissions Trading Scheme was very important, as choosing to stand still was not an option. Neither was aviation vs high-speed rail a real choice for Scotland. Both were needed.

Additional capacity at Heathrow was vital for Scotland’s connectivity.  The delivery of a third runway would make the case for strengthening flights between Heathrow and Scotland, including the Highlands, where direct routes were a key contributor to success in tourism and investment. In long-haul connectivity, additional capacity to the Middle East was important due to the region’s onward connections with other parts of the world such as Asia and Australasia.  This was considered a priority in advance of direct links with Far East destinations, where volumes would not currently give the same range of additional business.

Tourism promotion undertaken by the major Scottish cities had given a significant impetus to the interest of overseas airline operators in introducing direct connections. Some 70% of international business travellers arrived by air, underlining the importance of direct links to optimising Scotland’s business with the world. Scottish business people could assist the drive for increased links by:

• lobbying for support;
• supporting direct services on the “use it or lose it” principle;
• acting as ambassadors with overseas business contacts

Discussion centred on a range of issues:

• the customer service experience at airports, including the image presented as a gateway to Scotland;
• the need for access to emerging markets such as India and China, and whether limited resource prevents this as a result of investment in separate international airports in Scotland;
• what the recipe for success may be in galvanising support for direct routes – from the airline point of view this means ensuring flights have enough passengers paying the right fares (eg business fares);
• extending exemption on Air Passenger Duty throughout Scotland;
• the impact of high fares to the islands on ensuring sustainable communities;
• the importance of Crossrail in Glasgow, and High Speed rail into city centres;