1

GATCOM REPORT FROM

GATWICK AIRPORT CHIEF EXECUTIVE STEWART WINGATE

PERFORMANCE, ACTIVITIES AND PEOPLE

October - December 2016

Agenda item no. 6(b)

2

1. OVERVIEW

1.1 During the period, Gatwick achieved a 9.5% year-on-year increase in traffic, resulting in 9.8m passengers travelling through the airport. In December we achieved a record breaking 43 million passengers in a rolling 12 month period – a first for a single runway airport.

1.2 Passenger service levels continue to be maintained at a high standard, evidenced by Gatwick passing 100% of the 8 core service standards that are based upon our Quality of Service Monitor (QSM) for the 19th consecutive month.

1.3 Gatwick’s network of both long and short haul routes continues to grow, with the announcement

of a new weekly Thomson service to Phu Quoc, new BA services to Orlando and Fort Lauderdale (both 4 weekly), a new 3 weekly Air Canada Rouge service to Vancouver, a new Ryanair 6 weekly service to Alicante and two new services from easyJet to Granada and Varna (both 3 weekly).

1.4 We have announced several executive level appointments during this quarter, including a new Chairman and Chief Operating Officer. Sir David Higgins – current Chairman of HS2 and a Board Member of the Commonwealth Bank of Australia - will replace Sir Roy McNulty as Gatwick's chairman from the beginning of 2017. Chris Woodroofe (Previously Head of Passenger Services for Gatwick) has become Chief Operating Officer, replacing Scott Stanley who has been appointed as Gatwick’s Chief Development Officer. Ray Melee – previously Gatwick’s Development Director - has been appointed Chief Construction Officer.

1.5 In late October, the Government announced that Heathrow was its preferred choice for the

location of a new runway in south east England. The decision was high profile and for several days the buildup and the announcement itself dominated the national news agenda. Gatwick responded by expressing obvious disappointment but also by making clear that it ‘stands ready to proceed when the time comes’. The airport also expressed confidence that it had put forward ‘a credible financeable and deliverable plan for expansion.’

1.6 Boeing has announced plans to build a commercial maintenance hangar at the airport, subject

to local authority planning permission. The new facility will add engineering capacity to support the Gatwick airline community’s immediate operational needs to continue its record growth in both short and long haul services and will support more than 100 jobs at the airport.

1.7 During the period we have continued to develop our 2017 Capital Investment Programme and plan to publish a draft for consultation with the airlines in the coming weeks. Our focus is on investment to support the future growth of Gatwick as a single runway airport, driving efficiency across the airfield and terminals. We will continue to engage with PAG and the wider community as this work progresses.

1.8 Following a strategic review of its business, Aviator, one of the major ground handling service providers operating at Gatwick announced its intention is to exit the UK ground handling market in order to focus its attention on its core markets in the Nordic region. Arrangements were put in place to provide continuity of service by Aviator for affected airlines until the end of November 2016. While ground handling arrangements at Gatwick are primarily a contractual matter between airlines and their agents, Gatwick took a proactive role in helping affected airlines to develop long term arrangements and assist both Aviator and airlines to ensure a smooth transition for passengers, airlines and staff affected by the change.

3

2. DELIVERING THE BEST PASSENGER EXPERIENCE

2.1. CORE SERVICE STANDARDS (CSS) The Quality of Service Monitor (QSM) customer satisfaction scores remained high, attaining passes for 100% of the 8 standards measured. The overall Departures QSM scores in the South Terminal is at its highest-ever level (4.34, up from 4.28 in the same quarter last year) and in North also remains high (at 4.26, equal to last year). On the Arrivals route, the South Terminals’ overall QSM score is also high (4.23 vs. 4.23), and the North’s score (4.15 vs 4.10) is finally on the up as the transformational work in the Arrivals concourse nears completion - November’s North score is the highest November score ever (4.20). Despite the transformational work, 3 of the 4 QSM-based CSS measures (Cleanliness Wayfinding & FIDS), have increased over the same quarter in 2015, in both North & South Terminals. However, the continued increases in passenger numbers have adversely impacted the seat availability scores in both terminals – down from 4.16 to 4.00 in North and from 4.07 to 3.92 in South. This was further exacerbated by poor scores in December due to departure lounge congestion resulting from flight delays caused by severe fog. The Terminals team is looking at ways to address this decline.

2.2. IN-BOUND BAGGAGE (IBB)

Against a 98% target for in-bound baggage (IBB), the airlines at Gatwick achieved a score of 99%, slightly down from 99.8% in the same period last year. Current performance with the moving annual target is marginally down at 99.2% reflecting the addition of two new handling agents following Aviators cease of operations. Gatwick measures IBB scores and reviews them with airlines and ground handling agents daily.

2.3. FLIGHT INFORMATION

In this period, the Quality of Service Monitor (QSM) scores, which measure the ease of finding, reading and understanding Flight Information Display (FID) screens remained extremely strong and over-target in both the South Terminal (at 4.48 for the quarter) and the North Terminal (4.39) against a target of 4.20.

2.4. SECURITY The operational focus for Security leading into December has been on building resilience and delivering a consistently stable operation. All Security CSS metrics have been met for the period October to December 16 with a new GAL internal central search queue time target being set (97.5% of passengers queueing for less than 5 minutes) to drive our service delivery standards and further enhance operational stability. Recruitment of security officers continues in line with this as does development of our internal talent pipeline and succession planning.

Customer service standards, as measured through our security QSM scores, continue to provide tangible evidence of the high levels of service being delivered by our staff. The operational team continues to focus on driving this forward through training, briefing and day to day leadership. Linked to this is the ongoing focus on staff wellbeing and EHS awareness. The second security wellbeing survey of the year is driving our wellbeing initiatives for 2017 and an ongoing focus on EHS culture and behavioural safety is being driven at all levels of the leadership team.

The emphasis on security enhancements continues as part of our landside security strategy, which is currently central to driving the South Terminal Development Programme. This aims to reduce massed crowds and dwell times whilst also delivering a better passenger experience at check-in. Further projects as part of the airline moves

4

campaign have seen redeveloped crew search facilities moved to the ground floor of Jubilee house and enhanced staff search facilities delivered in South Terminal while the completion of South Terminal Family and Assistance lane is delivering greater levels of passenger service. The Gen 2.1 project is seeking to further enhance our capacity and processing performance in central search while work to understand the capabilities of the next generation of cabin bag X-ray machines is underway with manufacturers and regulators.

The target for the security team in 2017 continues to be to develop the best people with the best technology, operating in the best environment, in order to deliver the World’s leading Airport Security Operation.

2.5. IMMIGRATION

Two crew lanes have been installed in the South Terminal immigration hall and are now in operation. Ten additional e-gates are shortly to be installed, bringing the total to twenty five, followed by seven additional manual desks. The trial of allowing twelve to eighteen year olds to use the egates is proving hugely popular, and we are about to welcome our ten millionth user this month.

2.6. PASSENGERS WITH REDUCED MOBILITY (PRM)

It has been busy year for PRM operation with 551,724 PRMs which represents roughly 10% increase versus last year (498,569). Passenger volume increase was 7% from the previous year which demonstrates the increased demand on PRM.

2016 had a hidden disability focus which received several awards and the focus has been timely as the Civil Aviation Authority has now issued guidance for airports on hidden disability.

1st Oct -31Dec saw 136,574 passengers assisted (increase of 9% VLY) and 41,302 flights handled (10% increase VLY).

2.7. PASSENGER COMMUNICATIONS The support given by the Passenger Advisory Group continues to be appreciated by Gatwick, with many of the members being involved in multiple working groups. In October, to further enhance the members’ knowledge, we arranged for the Passenger Advisory Group to hear more about what our passengers had been saying about Gatwick by sharing key findings from the 2016 YouGov passenger research. We also provided the group with an update on Gatwick’s electrical and IT resilience.

In response to passenger feedback and recommendations from our Passenger Advisory Group, improvements to both the departures and arrivals experience have been made in North Terminal to better inform passengers of walking times and distances to/from the gates which will also support our drive to improve our airlines’ on time departure performance.

As part of Airline Moves in January, a comprehensive range of passenger communications across a wide range of channels and locations has been produced to ensure that passengers are advised of the terminal changes in advance of 24 January.

5

2.8. PASSENGER FEEDBACK During the quarter Gatwick received two compliments and 11 complaints per 100,000 passengers. The top three issues were special assistance service, security staff and baggage delivery waiting time. The top areas of compliment were special assistance staff, staff helpfulness and special assistance service. Negative feedback has been received about the ongoing rail strikes and adverse weather (poor visibility due to heavy fog).

2.9. AIRLINE MOVES AND TRANSFORMATION At the time of writing, we’re ready to deliver one of our biggest projects to date, as three of our key airlines move terminals. From 24 January all easyJet flights will depart from the North Terminal, then from 25 January all British Airways flights* will depart from the South

Terminal and all Virgin Atlantic flights from the North Terminal.

The moves will be staggered over a 72 hour period in order to ensure a seamless transition, with all three airlines operating a reduced flying programme during this time to simplify the process.

We have been planning meticulously for more than two years. Relocating the airlines involves a complex programme of work that stretches right across the airport, with 84 construction activities to create new spaces in and around the terminals. New check-in desks, IT Infrastructure, crew reporting areas, engineering bases and premium lounges for British Airways and Virgin Atlantic are among the essential programmes of work.

Now that many of the construction projects have been completed (a small number are planned to be delivered after the moves), the focus is on the three days of transition. Every activity that needs to take place across the airfield, baggage systems and other affected areas will be tracked. Minute by minute activities are documented and sequenced to ensure that everything that needs to get done, can get done. There are 500 things that need to happen across the airport over the 72 hours.

37 trials, involving 500 volunteers, have given the airlines assurance that everything is ready for them to operate successfully in their new homes. In addition, staff familiarisation and training has taken place, both for Gatwick and the airlines.

Communications is essential to the moves. We have provided information to 130 organisations who either have a workforce at Gatwick or who need to know something about what is happening. Beyond Gatwick’s 2,900 employee base, there are 25,000 people who work at the airport that have been reached. Passengers will find communications about the moves at every touchpoint and there will be 200 wayfinding signs changing across the airport along with 70 ambassadors in the terminals to help guide the way.

* Two British Airways flights are moving before 25 January.

From 11 January 2017, BA2273 to New York will depart from South Terminal.

From 19 January 2017, BA2612 to Naples will also depart from South Terminal.

6

3. HELPING OUR AIRLINES GROW

3.1. TRAFFIC This period saw Gatwick achieve a 9.5% year-on-year increase in traffic, resulting in 9.8m passengers travelling through the airport. This increase was driven by an extra 3,565 aircraft movements compared to the same period last year. Load factor went up by 0.7 points despite the increase of 944,883 seats which resulted in 853,124 additional passengers using the airport.

3.2. ROUTE ANNOUNCEMENTS

Gatwick saw some new long haul route announcements during this period, with BA announcing 4 weekly services to Oakland and Fort Lauderdale which will commence on 28th March and 6th July respectively, and a new 3 weekly Air Canada Rouge service to Vancouver to commence from 8th June. Thomson also announced a new weekly route to Phu Quoc to commence from 1st November 2017. Ryanair announced a new route to Alicante (6 weekly from 1st November 2016) whilst easyJet will launch a new 3 weekly service to Granada (Spain) from 4th February and a 3 weekly service to Varna from 6th July. BA also announced a new seasonal 4 weekly service to Limoges due to commence in April.

3.3. OTHER AIRLINE AND GROUND HANDLER ANNOUNCEMENTS

Monarch have announced a £165 million investment from its majority shareholder, Greybull Capital. As a result of this investment Monarch has successfully renewed its ATOL licences from the CAA for the next 12 months and funded future growth plans. Following a strategic review of its business, Aviator - one of the major ground handling service providers operating at Gatwick - announced its intention is to exit the UK ground handling market in order to focus its attention on its core markets in the Nordic region. Arrangements were put in place to provide continuity of service by Aviator for affected airlines until the end of November 2016. While ground handling arrangements at Gatwick are primarily a contractual matter between airlines and their agents, Gatwick took a proactive role in helping affected airlines to develop long term arrangements and assist both Aviator and airlines to ensure a smooth transition for passengers, airlines and staff affected by the change.

3.4. REGULATION The CAA published the conclusions of its early ‘health check’ of the new commitments

based economic regulation framework at Gatwick in December. The review concluded

that many aspects of the new framework appear to be working well, specifically:

Gatwick has contracts with airlines covering more than 85% of passengers;

Traffic growth is ahead of expectations and passenger satisfaction rising;

GAL is pricing below CAA ‘fair price’ path and meeting its service quality targets; and

No airlines calling for return to previous regulatory regime.

The CAA is not proposing any changes to the framework or the licence, however it is

expecting improvements in three areas:

7

Airfield infrastructure: “We look to GAL to make good progress with its current proposals … If capacity constraints are not being addressed.., then we may need to consider further measures.”

Airline relationships: “It is important that GAL takes steps to improve its relationships with airlines, especially at operating level”. CAA could consider further measures.

On-time performance: CAA concerned about GAL/airlines differences in analysing causes of delay. CAA leading independent study (reporting spring 2017) to inform all parties.

GAL welcomes recognition of benefits for passengers delivered under new regulatory

regime since 2014. GAL will continue to focus on understanding and meeting passengers’

needs. We will take steps to address the areas of improvement identified by the regulator

as appropriate.

4. INCREASING VALUE AND EFFICIENCY

4.1. THE GATWICK GROWTH BOARD During autumn 2016, the Growth Board started its programme of stakeholder meetings, including with the chairman of GATCOM and with several of the GATCOM member organisations. This programme of engagement is scheduled to continue in the first few months of 2017, and will include MPs and local authorities.

To inform its work, the Growth Board commissioned its first study in September 2016 from Oxford Economics, on the economic impact of Gatwick Airport. This study, published by GAL on 9 January, found that:

Gatwick contributed £5.3 billion - or 0.3% of the UK’s GDP - and supported 85,000 jobs in 2016;

Gatwick could support an extra 13,000 new jobs across the UK by 2025 with its existing single runway – and lift its total contribution to the national economy to £6.5 billion - if passenger numbers grow by around 20% from 43 million a year today – a growth rate broadly similar to that achieved in the last 5 years;

The airport’s impact in the Gatwick Diamond area – including supply chain activity and spending in the local consumer economy – is estimated at £2.3 billion and 36,000 jobs. This is around 10% of the total economic activity in the Gatwick Diamond area, and one in every 12 jobs.

The Growth Board’s next study, to be commissioned later in January, will address the infrastructure required to support Gatwick’s growth and connectivity over the coming decades, with an emphasis on surface access (road and rail connectivity) to the airport and within the region, but also including the other infrastructure implications of expansion and the required employment and skills.

4.2. CAPITAL INVESTMENT PROGRAMME

During the period we have continued to develop our 2017 Capital Investment Programme and plan to publish a draft for consultation with the airlines in the coming weeks. Our focus is on investment to support the future growth of Gatwick as a single runway airport, driving efficiency across the airfield and terminals. We will continue to engage with PAG and the wider community as this work progresses.

8

4.3. FUTURE RAILWAY STATION DEVELOPMENT The team continue to work with DfT and Network Rail to agree an affordable scheme for the Rail Station. The review should be completed by the end of March. Further discussions with DfT are being undertaken to better understand how any funding gaps can be resolved.

4.3. GOVIA THAMESLINK RAILWAY STRIKE ACTION

Continued action official and unofficial by conductors employed by Southern has been impacting services to and from Gatwick. The Gatwick team are working closely with GTR to minimise any disruption.

4.5. ROAD NETWORK

The M25 SW quadrant consultation is underway. Gatwick have responded to the consultation looking at ways to improve the efficiency and capacity in the corridor. In addition Highways England will commence their road investment 2 consultation in the autumn. Gatwick have met with the project team for the M23, SMART motorway, more detailed discussions will take place over the coming months with an aim to minimise disruption on passengers and staff during works. Confirmation has been received that the works will include an additional lane on both east and west directions of the M23 from junction 9 to 9A.

4.6 SURFACE TRANSPORT FORUM

Gatwick held the Gatwick Transport Forum on the 7th October. Speakers included Stewart Wingate being interviewed by Steve Richards discussing events at Gatwick over the last 12 months. Leon Daniels, Managing Director Surface Transport from Transport for London talked about Sustainable Transport for London. Question Time was hosted by Simon Calder, the Senior Travel Editor from the Independent, with questions being answered by the Gatwick Surface Transport Team. Professor Iain Gray from Cranfield University presented on Science, Innovation and Technology and Angie Dole Passenger Services Director for Southern and Gatwick Express provided a performance update.

At the transport forum Emma Rees, Head of Real Estate and Surface Transport also announced two new sustainable transport initiatives. The first is the launch of an electric car share product with Blue City whereby passengers will be able to use a car located on the South Terminal forecourt to drive to London and leave at designated points. This is a first for Airports in the UK. The second initiative was the launch of our Airport Taxis trialling fully electric / hybrid cars including Tesla from spring next year.

Following the Forum, new Gatwick Express facilities were officially unveiled at the station, including a second dedicated entrance and a new passenger lounge for Gatwick Express rail passengers. This is the result of a joint £400,000 project between Gatwick Express and Gatwick Airport to improve passenger flow through the rail station concourse. Forum members were also given the opportunity to travel to Victoria on the new Gatwick Express rolling stock.

9

4.7. EMPLOYMENT AND TRAVEL TO WORK SURVEY Processing of the Employment and Travel to Work Survey, conducted in summer 2016 is now complete. Gatwick will be using the data to review our Staff Travel Plan and to inform ongoing initiatives for cycling and journeys to work using sustainable modes. We will continue to work with local businesses and communities, such as the Manor Royal Business District on the potential for integrated solutions. We will also be sharing the report with local authorities and other interested parties.

4.8. NORTH TERMINAL DEVELOPMENT

Concourse ceiling works, lighting and life safety are now all fully tested and complete in the Arrivals area. Shell and core for the World Duty Free and 4 retail units continue. Further works to deliver further back of house facilities continues. Drainage and all structural repair works for the main deck of Multi Storey Car Park 6 are now complete. Dismantling of the scaffolding around the perimeter of the building has commenced. Waterproofing and painting has been completed in 4 of the 7 car park levels. Cable pulling and light fittings installation has also commenced in the main car park decks.

5. BUILDING A STRONG ENVIRONMENT, HEALTH AND SAFETY CULTURE

5.1 ENVIRONMENT, HEALTH AND SAFETY

Unfortunately we have reported a passenger RIDDOR for December (The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 1995). This incident involving a PRM buggy is currently subject to a CAT II investigation. Passenger incidents have risen (31 v 21) compared to December last year. Incidents involving GAL staff were down marginally in December (39 vs 40). Staff injuries are trending down for the sixth consecutive month but YTD, are higher in comparison to 2015 by 13%. Regrettably, 2 GAL staff LTIs (Lost Time Injuries) have been recorded in December compared to 3 last year. We are however improving year on year our reduction in RIDDORs (67%) compared to this time last year.

December’s fire alarm activations totalled 7, a reduction of a third compared to last month and our second consecutive monthly improvement. Thankfully only 1 materialised into a passenger evacuation within the NT CIP.

Road Traffic Incidents (RTIs) involving vehicle on vehicle have increased significantly (12 v 1) compared to December last year. An increase in reporting of public incidents on the Gatwick landside roads network has skewed this. Our YTD improvement has therefore been nullified.

Gatwick has reported zero environmental exceedances in December.

Summary:

0 x Environmental exceedances 0 x Reportable Staff incidents to the HSE

1 x Passenger evacuations 1 x Reportable PAX incident to the HSE

2 x Lost Time Injuries

10

5.2 SECTION 106 ANNUAL REPORT

Following conclusion of GAL’s 2015 S106 Annual Monitoring Report and verification, the report has been posted on GAL’s website at: http://www.gatwickairport.com/business-community/about-gatwick/corporate-responsibility/s106-action-plans/

Following the triennial “Fit for Purpose” review of GAL’s Action Plans, some minor updates have been made in consultation with local authorities. The updated Action Plans will be published shortly and will be incorporated in GAL’s 2016 S106 Annual Monitoring Report.

5.3 DECADE OF CHANGE

On 31 October, Gatwick signed the Airports Sustainability Declaration, along with 14 other airports, at the Airports Going Green annual conference held at Amsterdam Schiphol. The Declaration commits signatories to work together on airport sustainability and resilience through collaboration, transparency, innovation and engagement. Other signatories include Heathrow, Schiphol, Munich, Rome, New York-JFK, Dallas-Fort Worth and San Francisco. http://news.schiphol.com/international-airports-sustainability-declaration-signed-at-schiphol/

5.4 CARBON

Annual renewal of GAL’s Airport Carbon Accreditation at Level 3 (Optimisation) was completed in October 2016, including external verification of continuous reduction in GAL’s carbon footprint. Future certifications will be undertaken in the first half of the year alongside the Decade of Change reporting cycle.

5.4 AIR QUALITY

The annual meeting of the Joint Local Authorities Group on Air Quality was held on 15 November. Gatwick’s report covered 2015/16 monitoring, and initiatives including Fixed Electrical Ground Power usage; electric vehicles infrastructure planning; and work underway to update the airport’s air quality inventory and modelling.

5.5 NOISE

5.5.1 INDEPENDENT AIRSPACE REVIEW

Since the last GATCOM meeting, NMB has held its 3rd meeting (15th November), which covered agenda items including updates of recommendations to date, continuous improvement, 2017/18 proposed work plan, and departures. Draft minutes of this meeting are on the NMB webpage. The next NMB meeting (NMB/4), will be a public meeting and invites from the NMB have been sent out to GATCOM, NATMAG, FLOPSC Members, local district, borough, town and parish councils and members of the public who have corresponded with the NMB and Arrivals Review team over the last year – in all, around 400 invites.

At this meeting GAL will be publishing its year-on update, which is a recommendation within the arrivals review (IMM20) and will give an update on progress from the publication of the Independent Arrivals Review (January 2016) to January 2017, including commentary from stakeholders and the Chair of the NMB. Copies of this will be available from 31st January at the public meeting and online at Gatwick’s noise webpage and the NMB webpage.

The next meeting of the NMB is scheduled for 5th April.

11

5.5.2 CIVIL AVIATION AUTHORITY P-RNAV POST IMPLEMENTATION REVIEW

Route 4 The re-designed Route 4 RNAV1 SID monitoring period came to an end on 26 November 2016. Route 4 as currently amended will remain in place at least until we receive a response from the CAA. Should the CAA deem the amendment to have been unsuccessful, it would be at that stage when we will consider other options available including reversion to the conventional navigation procedure.

In accordance with the requests included in the Post Implementation Review (PIR) note[1] GAL has provided the data necessary to allow a full and complete evaluation of the Route 4 RNAV1 SID. Over the 6-month monitoring period these included:

Monthly track dispersion plots;

Details of operational issues arising from Gatwick ATC and London Terminal Control at Swanwick;

Details of any operational issues raised by aircraft operators;

Plots showing the locations of residents providing feedback;

Copies of all feedback received from local communities.

Overall, our assessment of the amendment to this route, as adopted on 26 May 2016, is that it has achieved what it was required to do, in that it has shown c. 94% compliance in its track keeping within the NPR and has at the same time achieved a degree of dispersal around the route’s turn, something that was particularly requested by the local communities.

As a baseline, track keeping conformance achieved through the conventional SID during the period May-November 2013 was 92.6%. We are confident that the Route 4 RNAV1 has delivered improved performance. Following the original RNAV1 implementation during the period May-November 2015 traffic route conformance dropped to 62.06%. Track keeping has significantly improved during this monitoring period with conformance reaching 93.95% over the period May-November 2016. In terms of air traffic movements (ATMs) although the number of aircraft flying the route during both periods was around the same – 19,792 (2015) and 19,722 (2016) – this reduced off track aircraft by 6315 ATMs.

During the monitoring period complaints received in respect of this route were as follows:

Number of pieces of email feedback 16,964

Number of individual email addresses 1,863

Numbers of email addresses Feedback Email Nos Feedback Percentage

50 individuals responsible for 5731 33.78%

100 individuals responsible for 7902 46.58%

250 individuals responsible for 11824 69.70%

Of the total number of complaints received, 4,858 (29% of the total) from 695 individuals (37% of the total), related to the overflight of Horley[2], as aircraft were vectored from the SID. After the adoption of this amendment, levels of vectored traffic leaving Route 4 and

[1] August 2013 Airspace change introducing RNAV SIDs at Gatwick Airport. Stage 7 CAA ACP process - Conclusions of Post-Implementation Review Requirements for further action by GAL dated 23 May 2016. [2] In contravention of UK AIP entry EGKK AD 2.21 which prohibits the overflight of Horley by aircraft operating to/from Gatwick.

12

over flying Horley increased from historical levels of approximately 1-3% to a high of 8-9%. This is clearly an important issue but one which we consider to be separate from the route design itself. Working closely with NATS this problem has been addressed through a controller education programme as a result of which the number of Horley overflights have progressively declined since the problem was first identified. Horley overflights in August were measured at 8.66% (355 aircraft) but by comparison December overflights were 0.57% (14 out of 2463 aircraft). We will continue to monitor the numbers of Horley overflights and work with NATS to ensure the highest possible levels of compliance are maintained.

Although the dedicated Route 4 email address closed with effect from 23:59 on 26 November 2016, noise complaints related to Route 4 will still be captured via our dedicated noise complaint tool Casper. We will keep updating our online information (http://www.gatwickairport.com/business-community/aircraft-noise-airspace/) and our blog has a number of maps uploaded to it to allow comparisons to be made (http://www.gatwickairport.com/business-community/aircraft-noise-airspace/airspace/our-blog/).

Route 5 The revised Route 5 design required by the CAA as an outcome of the PIR was submitted to the CAA and the design approved for operation. It will be introduced from 30 March 2017. We have agreed with the CAA to conduct the majority of engagement online with local press notices and Gatwick Airport writing to key stakeholders alerting people to the online engagement. Route 5 will be subject to a 6-month monitoring period but not subject to the additional monthly assessment applied previously to Route 4.

Route 2

The CAA is assessing the large volume of Route 2 flight data we submitted which included track performance and the Boeing and Airbus simulator assessments. The data submitted indicates that, over-time, the slight ballooning in the turn has reduced and that there is improved adherence to the NPR. Pending the CAA assessment of Route 2 we have no proposed implementation date.

5.5.3 COMPLAINTS HANDLING POLICY

The revised aircraft noise complaints handling policy supported by our digital platform (Casper - http://noiselab.casper.aero/lgw) has been in place since 30th September although for the first month operating in parallel with the previous process. Since its introduction we have received feedback from communities and stakeholders including GATCOM, NMB and NaTMAG. In adapting the process to accommodate some of the ideas proposed we have:

introduced a freepost address for those without access to the internet (feedback received by post is entered into the Casper system by our team, to maintain a single, uniform and transparent record of all complaints);

been working with Casper to improve the functionality available through mobile devices, such as the live traffic feed, delivery of which is aimed for early 2017;

committed to reviewing the accessibility/signposting of Casper via the Gatwick website.

13

6. COMMUNITY ENGAGEMENT

6.1 GOVERNMENT AND PARLIAMENTARY ENGAGEMENT

During this period, Gatwick attended the Conservative, Labour, SNP and Liberal Democrat Party Conferences, hosting a number of events and briefings with politicians, think tanks and other organisations. We also continued to engage with a broad selection of MPs and other elected officials, across a range of areas to campaign for a second runway, including local MPs, members of APPG’s and select committees, as well as those MPs with an interest in our campaign for expansion. We issued our response to the Government’s final decision on the location of the next new runway in the South East and have continued to engage constructively on the issue with the Department for Transport, Mayor’s office and other interested parties. We have also continued to engage with the Mayor of London who visited the airport to launch the next phase of Gatwick's capital investment programme and to pledge his continued support for Gatwick. We have worked closely with the Department for Transport and GTR to manage and plan for the various rail strikes that have impacted Southern services over the period. We have engaged with politicians, civil servants and business organisations in both the UK and Brussels on the impact of Brexit on Gatwick, our community and our partners. We have begun a more active engagement programme with local MPs to discuss noise issues and our economic contribution to the region. We continue to play an active role in the cross-industry organisation, Sustainable Aviation as well as working with the AOA on other issues such as Air Passenger Duty.

6.2 LOCAL COMMUNITY ENGAGEMENT As part of our ongoing community engagement programme we have been working to increase opportunities for further engagement with parish and town councils and neighbourhood groups. In October and November we held a series of tours for parish and town councils and neighbourhood groups, hosted at the airport. Each event included an overview of Gatwick’s business and operations, including noise and airspace management. Over 100 community representatives attended these events and the feedback was overwhelmingly positive. This engagement was in addition to our ongoing programme of activity with local authorities, which in the current reporting period included meetings with Crawley Borough Council; West Sussex County Council; Reigate and Banstead Borough Council; and Brighton and Hove City Council.

6.3 LOCAL ECONOMIC AND BUSINESS ORGANISATIONS During the period Gatwick was actively involved in a number of local economic/business meetings and events including presentations to Gatwick Diamond Overview Forum; Gatwick Diamond Business Group; Skills East Sussex; Team East Sussex; Brighton and Hove Economic Partnership; Coast to Capital LEP; Manor Royal Matters Conference; and both the Kent Invicta and Surrey Chambers of Commerce. In November, twenty five of Britain’s brightest young brands departed from Gatwick on a week-long trade mission to Hong Kong organised by Enterprise Nation – a small business support group that organises trade missions to help the smallest British firms to export goods and services. Gatwick and its newest airline Cathay Pacific subsidised the flights for the week-long trade mission.

14

6.4 THE GATWICK FOUNDATION FUND

Thirty-one exceptional projects across Kent, Surrey and Sussex have become the first recipients to be awarded £150,000 in grants from the newly established Gatwick Foundation Fund, a collaboration between the Community Foundations in Sussex, Surrey and Kent. The projects include a broad mix of local charities and voluntary organisations with a key focus on young people, the elderly, disability groups, families, education and training. The 31 recipients estimate grants will positively benefit 13,750 across the regions of Kent, Surrey and Sussex. The next round of grants is expected to be allocated in February 2016 and can be used to fund existing services or facilities as well as new initiatives. Applications should be made through the relevant Community Foundation in each area.

6.5 GATWICK AIRPORT COMMUNITY TRUST (GACT)

The 2017 Grant Programme is currently open for this year’s grant applications with a deadline of 17 March for projects to be considered for a grant award in this year’s funding programme. Successful applicants will receive payment by the end of May.

The independent charity has been awarding grants annually to local community projects in parts of East and West Sussex, Surrey and Kent for the past 14 years, funded via Gatwick’s S106 Legal Agreement with Crawley Borough Council and West Sussex County Council. During that time hundreds of projects have benefitted from funds. Last year GACT awarded grants to 137 different projects totalling over £192,000. Beneficiaries ranged from scouts and village halls to museums, sports clubs, choirs, theatre groups, pre-schools, the elderly and people with disabilities.

6.6 SPONSORSHIP

Gatwick became an official partner this year of the Bonhams London to Brighton Veteran Car Run which took place on Sunday 6th November 2016. The event won the best Rally or Tour of the Year at the International Historic Motoring Awards 2016.

Nearly 400 veteran cars participated in this year’s car run, passing hundreds of thousands of spectators along the 60 mile route. Having gathered for the start in Hyde Park, the half way point for the participants was Crawley High Street this year, where the Gatwick team welcomed the cars and gave away hand warmers and provided a veteran car as a photographic back drop for spectators. Gatwick team members were also on hand in London and Brighton to support the event and engage with spectators. From 1st December 2016 to 2nd January 2017 Gatwick sponsored Reigate On Ice. Undercover of a Big Top Marquee, skaters experienced skating on real ice along with festive music, Christmas food and drink and live entertainment. The ice rink overlooks Priory Park, which has just won the South and Southeast in Bloom gold award (South & South East in Bloom is part of the Britain in Bloom, campaign where Boroughs, communities, residents and businesses can work together to improve their environment and for which Gatwick is headline sponsor). On 3rd December a free fireworks display was held in Priory Park, Reigate with The Shane Ritchie Band performing after the fireworks display.

Gatwick supported the Horley Association of Traders’ (HATs) Christmas Fair this year by sponsoring Horley’s first ever Santa’s Grotto in the High Street. The log cabin which housed Santa was a welcome addition to the town’s festivities.

15

Other events sponsored in the period include the BBC Sussex and BBC Surrey Community Heroes Awards; Surrey SME Business Awards; and the Develop Croydon Annual Conference.

6.7 CHARITABLE ACTIVITY

Gatwick sponsored St Catherine’s Hospice Christmas fundraiser, Santas v Elves. The competitive fun run was the first event of its kind for the Crawley based hospice, Gatwick’s local charity partner. St Catherine’s Hospice provides end-of-life care and support to terminally ill people and their families across Crawley, Horsham, East Surrey and Mid Sussex. Some 80 per cent of them are cared for in their own homes throughout Surrey and Sussex. The four Santa v Elves runs raised an estimated £30,000. Our three charity partners, Cancer Research, St Catherine’s Hospice and Gatwick TravelCare received a share of £12,720.11 representing spare currency donated by our passengers.

7. THE BEST PEOPLE, PROCESSES AND TECHNOLOGY

7.1 EDUCATION, EMPLOYMENT AND SKILLS

Following the publication of the Employment and Skills Research in 2016 (which identified that as Gatwick grew there would be increased demand for both quantity and quality of people, along with specialist technical skills across the STEM disciplines) GAL are now working on developing an employment and skills strategy and solutions to meet future airport requirements, including opportunities for further developing our apprenticeship programme.

Our graduate engineering programme, launched in 2016, offers aspiring engineers from across the UK the opportunity to apply for its graduate programme and help take forward the next stage of the airport’s £2.5bn transformation. Delivered in partnership with the University of Brighton, University College London and Imperial College London, the programme will see three engineering graduates join Gatwick’s engineering team each year. The selected universities were chosen for providing renowned excellence in engineering studies. Applications for Civil Engineers, Electrical and Electronic Engineers, Mechanical Engineers and, for the first time, Quantity Surveyors are all now open. Gatwick will provide mentoring and support for each graduate to gain Chartered Engineer status, as well as further professional development. This complements Gatwick’s well-established engineering apprenticeship programme, which celebrates its 40th anniversary this year.

7.2 IT

We have worked with Vodafone to upgrade their mobile service to 4G at North Terminal. Vodafone customers will benefit from this high speed 4G service which delivers more than 100mbps. The upgrade will be completed for South Terminal by end of April. We have completed the deployment of battery powered beacons in the terminals, which will enable better indoor positioning and navigation on mobile apps. The new indoor map

16

& navigation service will be made available to airlines to use this quarter. Gatwick will also use this service in the upcoming passenger app. It has been one year since we launched the Community app (app for the workforce) at Gatwick and we now have more than 6000 active users from over 200 organisations. We have replaced the old analogue radio handsets with digital ones for GAL. We rolled out 900 new handsets and 120 vehicle sets. Digital radios have improved voice quality and extended coverage. We have increased capital investment on IT systems this financial year and will continue with higher level of investment next year as well. This will help us to introduce further automation and replace some of the legacy systems. A lot of effort has been put in over the last 6 months to ensure that IT systems become more stable. The systems ran silently during the Christmas peak period.

7.3 SOCIAL MEDIA

Gatwick hit two social media milestones in November with 300,000 followers on Twitter and 25,000 fans on Instagram. This is an increase of around 30% and 130% respectively, year-on-year. On a followers per passenger basis we have 43% more than Heathrow. The growth has been brought about through a strategy of interesting and targeted content, high levels of customer service and being a trusted source of information.

7.4 INNOVATION

The successful rollout of a hidden disability lanyard at Gatwick Airport has been

recognised for its forward-thinking approach towards supporting passengers with

Dementia.

Gatwick and OCS, the airport’s special assistance provider, were jointly presented with the Dementia Innovation Award at an awards ceremony hosted by the Alzheimer’s Society and attended by Health Secretary Jeremy Hunt. The award recognises ‘forward thinking in developing a piece of research, new product, project or service to support people affected by dementia.’ Gatwick has also become the UK’s first Autism Friendly airport in recognition of the airport’s commitment to becoming an accessible and friendly environment for autistic passengers. The airport was presented with the award by The National Autistic Society’s Chief Executive at a ceremony to mark the achievement. The award recognises the successful efforts of Gatwick and its assistance provider OCS to meet a range of Autism Friendly criteria which will benefit autistic passengers, their families and caregivers.

17

7.5 INTERNAL COMMUNICATIONS

During the period the team communicated Gatwick’s mid-year results to employees across all departments and held two events for our management team – one for senior leaders and one for all people leaders, with the aim of updating these groups on our progress against business objectives and galvanising these groups for the coming six months.

A major talking point for employees was the announcement on airport expansion which we ensured was communicated swiftly directly from the CEO via direct staff communications and a video message.

Significant engagement and communication was delivered in collaboration with HR and our operational teams on the Defined Benefit Pensions reform. This included running hundreds of face-to-face sessions to help employees understand our proposals and creating collateral to keep affected members informed through the consultation period.

Also within this period, Internal Communications progressed the Airline Moves narrative and supporting our transition team with a call for volunteers for trials and a number of pieces of interactive collateral to bring the Airlines Moves story to life.