Agenda Item 4

Annex 5
Kent International Airport Variation to s.106 Agreement

Background

KIA has been actively negotiating with a significant long haul European air freight
carrier with a view to re-locating an existing air cargo operation from its existing hub
to KIA. The commencement of this activity at KIA would have the effect of
delivering approximately 400 employment opportunities to the area.

Until the end of February when the operator will be in a position to confirm the
contract with Infratil, it is not possible to name the carrier. The airline is a significant
operator which will be a new entrant to KIA.

On Thursday the 29th of January a meeting was held during which the final key points
for agreement were discussed. During this meeting, it was noted that the aircraft
operator is required to make a decision urgently, and is not in a position to award
the business to KIA without assurance that the restrictions on night-time flying can be
modified as required to physically enable the operation. If a contract is agreed in
February flights may start as early as May, and not later than October 2009.

The cargo operation concerned operates scheduled cargo services, with several
flights required to be scheduled to arrive or depart KIA between 0600 and 0700. The
operator needs the ability to schedule flights up to 2330 in line with operational hours
in place at the competitor airport.

The airport operator requests the adoption of a variation in line with the S106
agreement such that this operation would be permitted to go ahead. Enabling this
activity would establish the base for a sustainable airport at Manston, along with
securing a significant number of up front local employment opportunities.

Nature of Activity

The proposed cargo operation would involve the re-location of an existing European
air freight business to KIA. The airport would become the centre for a globally
recognised freight operator, requiring the relocation of pilots, freight forwarding staff,
administration staff, logistics providers, aircraft engineers, caterers, cleaners etc. As
well as the employment activity generated by these agencies, the airport itself
would employ a further 54 staff to accommodate the increased business. Based on
examples found at other UK airports, this level of activity would lead to a further 300
indirect employment opportunities.

The 11 weekly aircraft turnarounds would be scheduled to operate between the

hours of 0600 and 2330, in line with the hours available at the aircraft operator’s
current airport in use. The aircraft fleet employed would be 747-400 series, rated
QC4 on departure and QC2 on arrival. The nature of the shipments would be
general cargo, involving consolidating, deconsolidating and logistics centres based
at the airport site.

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Due to the extensive project required to relocate the operation, the carrier has a
requirement for certainty that during the next ten years they will be able to operate
their business in a stable regulatory environment.

Details of Employment Generated

Full Time Employment generated directly by the airport would be:

Roles Created Number of New Roles

Air traffic Control Staff 3
Rescue Fire Fighters 12
Load Masters 6
Aircraft Handlers 14
Warehouse Operatives 10
Cargo Officers 12
Airport Jobs 57
Airline/Freight Forwarder Jobs* 55
Indirect/Induced Jobs** >300
Total Jobs Created >412

The based aircraft operation would require the immediate employment/relocation

of;

*3 administration staff, 38 pilots, 8 freight forwarders along with a host of logistics,

engineering, cleaning and catering staff required to support a based airline
operation.

**Using examples from other UK airports it can be shown that the additional activity
at the airport will generate indirect and induced employment opportunities for over
300 further full time employees. For example, East Midlands Airport reports that the
Cargo operation of 300,000 tonnes per annum supports 2,100 indirect and induced
jobs.

The influx of business relating to the new contract will also secure the future of the
150 staff already based at KIA.

Reason for selecting KIA

Air Freight carriers, like all businesses in the current economic climate are looking for
more efficient ways of doing business. KIA is a very attractive airport to both cargo
and passenger operators due to the comparatively low infrastructure costs and
resulting airport charges. KIA has been identified as being a suitable location for the
operation due to its physical location and access to a good labour pool. The
operator will be able to base its activity at Manston, saving time and cost, making
KIA an attractive option provided that the operational environment permits the
flying activity required.

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Environmental Effects - Aircraft

The Environmental impacts of this operation will primarily relate to an increase in the
number of flights hosted by the airport. Currently there are on average 444 large
aircraft movements at KIA per month. The new operation will add a further 95
movements per month. This increase, whilst significant on a proportional basis,
should be considered in light of the airport’s current low level of activity. KIA is
currently operating at a fraction of its potential and is not a sustainable business at
current traffic levels.

As discussed above, the operator’s schedule requires the movement of aircraft

between the hours of 0600 and 2330 as opposed to the current KIA scheduled
operating hours of 0700 – 2300. The effect of allowing this activity will result in a low
number of weekly movements taking place during these shoulder periods. Current
restrictions on night flying permit off schedule aircraft operating within these shoulder
periods. Due to the nature of aircraft activity the airport already hosts several
movements per month within the night time period. During the quarter ended
December 2008, KIA hosted 14 flights between the hours of 2300 and 0700. The
airport received a total of 62 complaints from 4 people in this time.

Environmental Effects – Vehicles

With any increase in the cargo traffic using KIA, there will be an associated increase
in the level of vehicle traffic using the airport and nearby roads. Current planning
permissions attached to the approval of the freight centre at the airport dictate how
these increases will be accommodated. An existing s.106 agreement requires the
airport operator to implement improvements to the road access infrastructure when
thresholds of cargo traffic are met. The airport will seek to comply with these
restrictions and requirements in the normal course of operating the cargo business.

Environmental Mitigation

There exists an opportunity to amend the current restrictions on runway use such that
the number of aircraft overflying the town of Ramsgate is further reduced. The
airport proposes to modify the current requirement which directs the preference for
Runway 28 to be used for departures (away from Ramsgate) wherever possible. The
operator proposes to implement a direction whereby night-time arrivals have a
preference imposed to utilise RWY 10 (arriving from the West) weather permitting.
Due to the frequency of still wind conditions during night-time hours this mitigation
will minimise the effect of night-time noise on the residents of Ramsgate as a
proportion of aircraft movements will arrive from and depart to the West – avoiding
the town of Ramsgate weather permitting.

The airport operator will continue the regime of reporting all night-time movements
to the KIACC and to TDC. Noise monitoring will be improved to provide the Planning
Authority and the community with data and analysis of the changes in the noise
climate attributable to change in the total number of aircraft movements, and in
particular the movement of aircraft during the proposed shoulder periods.

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Application for Variation to the s.106 Agreement

The airport operator formally applies to the Thanet District Council for permission to
host scheduled aircraft movements between the hours of 0600 and 2330. This
modification to the airport operating restrictions can be achieved via an
amendment to the 2000 s.106 agreement.

The variation will include the following;

i Scheduled aircraft rated QC4 or less shall be permitted to

operate during the hours of 0600 – 0700

ii Scheduled aircraft rated QC4 or less shall be permitted to

operate between 2300 – 2330 hours.

iii All aircraft movements between 2300 – 0700 will be

requested to land on Runway 10 and depart on Runway
28 subject to weather conditions.

iv A noise monitoring regime will be put in place before the

new freight carrier commences operation at KIA to
capture and report data on peak noise levels and
continuous sound level (Leq)

v Statistics will be reported on a monthly basis, to enable

production of 3 month reviews.

vi The strict engine testing restrictions contained within the

existing S.106 agreement will continue to apply.

The content of the Night-time flying policy 2010 – 2018 will cover the
following subjects;

i Review of the variation with a view to confirmation of the

23.00 – 23.30 and 0600 – 0700 shoulder period operations.

ii Revision of noise abatement routes, with a passenger

and/or freight threshold at which secondary radar
capability and therefore flightpath tracking is required.

iii Incorporation of ad hoc flights to be included in the

policy as well as scheduled aircraft movements

iv Identification of any aircraft to be exempt e.g.

coastguard.

v Initial and thereafter periodic review of the QC rating of

aircraft using the airport during night-time hours.

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 vi Continued reporting of noise statistics, during the Night-
time period

vii Revision of the environmental penalties system

recognising that the community fund has been successful
in assisting residents and groups living beneath flight
paths. And continues to be so.

viii The views of the community, in particular as represented

by KIA and airport users will be important, and included.

ix Review of preferred runway usage.

Conclusion

Infratil is meeting the Board of the aircraft operator on 12 February

and seeks a response from the Council as soon as possible

Matt Clarke

Chief Executive, Kent International Airport

5th February 2009

…………………………………………………………………….. date

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