Transport CommitteeFurther written evidence from Bristol Airport (AS 55A)

1. Bristol Airport is pleased to provide further written evidence relating to the costs of regulation as requested at the oral evidence session on 10 December 2012.

2. Regulatory costs incurred by Bristol Airport are set out in table 1 below. This includes CAA costs and the costs of policing and security, both of which are subject to regulatory control.

Table 1

REGULATORY COSTS AND PASSENGER NUMBERS AT BRISTOL AIRPORT,
2008 TO 2012

	2008	2009	2010	2011	2012	CAGR
	actual	actual	actual	actual	forecast
Policing costs	0	0	0	£493,276	£710,944
Security costs	£2,494,545	£2,580,076	£2,936,783	£3,113,926	£3,446,049	8.4%
CAA costs	£198,629	£208,260	£212,571	£228,787	£242,695	5.1%
Total	£2,693,174	£2,788,336	£3,149,354	£3,835,989	£4,399,688	13.1%
RPI1	214.8	213.7	223.6	235.2	242.4	3.1%
Passengers	6,174,302	5,565,767	5,667,921	5,714,442		-2.5%
Revenue	£59,406	£55,365	£56,734	£56,411		-1.7%
EBITDA	£35,904	£32,316	£32,345	£31,529		-3.5%

3. It can be seen from the above that costs applying to the CAA have risen over this period at a rate in excess of the rate of inflation. The effect on Bristol Airport's operating costs is compounded by additional policing and security costs which together with the CAA costs have added over £1.7m to our cost base compared with 2008, an increase of 63%. Between 2008 and 2011 passenger numbers declined by 7.5%, revenues by 5% and EBITDA by 12%. All costs are nominal.

21 December 2013