Sky's the limit for Andy

HE might be faced with a rather challenging, perhaps even unenviable task, but Durham Tees Valley Airport’s new commercial director Andy Foulds seems fairly well-equipped for the task.

With more than two decades experience in transport, and a track record which saw the number of passenger cruise stops almost double at Port of Tyne under his watch, Mr Foulds expertise will no doubt put in him in good stead for the frankly mammoth task of turning the loss-making airport into a profitable regional asset which can create jobs in and outside the runways and hangers, and help businesses grow.

And there’s one thing this down-to-earth, man from Lancashire wants to get straight from the outset. “If I didn’t believe in the airport, I wouldn’t have taken this job,” says Mr Foulds. “I believe there is a viable airport here.

“While an airport is a stand-alone company, it is a very important local asset. “An airport can bring quite a lot of benefits to a region. At the moment, Durham Tees Valley is not reflecting its potential.”

He is quite clear in his objective: to nurse the ailing airport back to health. And although he is just days into his job, he already has some ideas about how he might set about the task in hand.

Already, the airport is in talks with aviation-related firms about leasing spare space in the hangers and land around the runway. Owners Peel Holdings are also investing in the terminal building, making minor refurbishments and tidying the place up. He says he is even prepared to look at the controversial £6 fee passengers pay just to fly from the airport – a measure introduced to off-set some of the ailing airport’s operating costs – but warned lifting it in the short term may not be viable.

“We need to get revenues up across the business. We can only cut costs so far,” he says. “It has got to be viable and stable. Right now it is not – but I do believe it can be.

“We are looking at everything relating to aviation to maximise the value of the runway,” he says. “There needs to be a broad brushed movement to push the airport forward.”

Mr Foulds is also making moves to meet with local councils, business, commerce organisations and the public in a bid to get the community behind the transport hub – a model he is bringing with him from Port of Tyne.

“Port of Tyne does not have shareholders. It is very closely integrated with the local authorities and local interests. That is a model I will be looking to bring here – closeness with local communities,” he says.

“I will be working with local authorities, the local enterprise partnership, Tees Valley Unlimited, and local businesses quite closely wherever I can.”

This, he says, will be key to attracting new airlines to the airport, as operators need to know demand is there before they commit.

“Having support in the LEP, businesses, the public and the local leisure industry will be important – using what we hope will be demonstrated demand coming out of these discussions to make a business case that attracts new opportunities in,” he says.

“It is not simply a case of picking up the phone and ringing up someone and saying, “Come fly with us, we’re great.” It is all about risk. That is where we have to show there is a clear demand here.”

And the relationship between Durham Tees Valley Airport and the south of the North-East is symbiotic, he says.

“An airport or any transport asset is a growth engine for a region and a creator of direct and indirect jobs,” says Mr Foulds. “Any (airline) company (investing here) has to know there is a market here. “That is where we are working with businesses and the local community. We need to give airlines that confidence that they’re not taking a risk by putting planes here.

“It will be a case of moving forward together.”

While land surrounding the airport will play a role in getting it back to profitability, as part of the strategy, Mr Foulds says he will be looking at every aspect of the business, including upping passenger destinations and, hopefully as a consequence, numbers.

The possibility of introducing freight is also still on the table, despite the rejection of the airport’s £5.9m bid to the Government’s Regional Growth Fund. Mr Foulds says the management is looking into other funding options to make the plan to develop a freight operation and up to 1,500 jobs a reality.

Although he says it is too early to say how long the airport would take to turn around, Mr Foulds says he believes it will take years rather than weeks, with the number of airline operators and passenger figures not an aspect of the business which could be changed overnight.

“We are getting very close to 2013 and already the operators have their summer brochures out,” he says.

“It is too early to say how long it will take (to turn the airport’s fortunes around). Years rather than months, though.”

As well as two years as commercial director for The Port of Tyne, Mr Foulds has 18 years’ experience with AP Moller-Maersk shipping group, with periods in Germany, Denmark, the United States, South Africa and Singapore.

“Port of Tyne has done really well. When I was there, we managed to grow from 20 cruise calls a year to 37 within two years. “That was a good result. That is one of the things which has prepared me for this role.

“There was a bit of passenger development, a bit of strategic development, and land assets. It is a very similar role – it is a transport asset with a runway, rather than a river and development around it.”

And he says his appointment – with his strong track record in transport – demonstrates how committed Peel is to making Durham Tees Valley become a successful, profit-making airport once again.

“This is a long term job. It reflects Peel’s long term commitment to the airport and their business strategy generally,” he says. “Peel is a family-owned business which does take a long term view.

“If you look at their strategic plans for the long term, their assets are Port Salford, the Port of Liverpool, they have a stake in John Lennon Airport and Robin Hood Airport.

“All of these are transport links with property attached. Durham Tess Valley is the same – a land asset around a transport asset.

“Transport is a major part of what they do. It is a core part of their business. The perception has been that Peel is here for the land. “But without the airport, the land would not be as valuable – it would just be another industrial estate.

“The airport has a good runway, a good terminal infrastructure – that gives us options. What it will look like in the future depends on opportunities and demand.

“One of the things which changed recently is airlines are willing to talk. They are not in batten-down-the-hatches mode anymore."

He also has some more innovative ideas which may help the airport, urging the Government, which is in the middle of reviewing the UK’s aviation policy, to make a decision – and the sooner, the better. “We would also like to see the Government make a decision sooner rather than later.

“The business community is risk averse. If you have uncertainty in anything, it is risk. Risk costs money. The delay in Government policy is a risk and it is costing money.”

He also mooted the rather radical idea that the Government could look at using spare capacity at well-connected regional airports as an alternative to building an extra runway at Heathrow or an extra London airport.

“We would like to see a more balanced approach from the review, which is less focussed on the south east.

“While London struggles for capacity, there is existing capacity elsewhere.

“If you fly into Heathrow, it will take you an hour to get to central London, even by high-speed rail, Birmingham is 45 minutes. With good transport links, we are just two and a half hours from London. “We are still in the game.”