Kent International Airport
Frequently Asked Questions
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. The airport currently services daily 747 freight traffic and seasonal passenger charter flights to European holiday destinations.
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.
Currrently freight traffic includes:
Imports of fresh produce from Africa and the Middle East; General imports and exports of general merchandise; and Humanitarian and Military service operations. This traffic is demonstrating growth and several other streams of freight traffic are targeted as suitable to operate at KIA.
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.
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 airport has a unique catchment of 750,000 inhabitants.
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 in 2005. 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 destinations 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 cater for infrequent aircraft arriving or departing outside of these hours.
Unscheduled night flights may be permitted on case by case basis subject to charges for aircraft noisier than "QC4" - especially B707s, DC8s and some older B747s.
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.
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.
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