JLA’s £12m refurbishment ‘to improve revenues and passenger experience’

THE pressure on airports to develop their non-airline revenues has grown in recent years.

In 2010, airport charges generated £9.72m for Liverpool Airport, its lowest level since 2002, when passenger levels were less than half of the 5.1m seen in the year to March, 2010. Charges peaked at £13.4m in 2006.

JLA’s income from concessions and rents has increased significantly for most of the decade.

It generated less than £5m in 2001, it had doubled by 2004, and doubled again by 2008 when JLA earned £21.6m. Although there was a small dip in 2009, revenues were back up to £21.3m last year.

The need to maximise these additional revenues is key to the £12m investment in the airport’s infrastructure, which will see more retail units alongside a reconfigured departure lounge and an expanded security area.

Work is due to be completed by the end of next month.

Neil Pakey, the former managing director of John Lennon Airport, has this week been appointed as senior director for network development for the Vancouver Airport Service.

He said: “We are not expecting any increase in this financial year due to the disruption during the refurbishment, but we are forecasting a further increase in revenues in future years due to the excellent passenger experience the redevelopment should provide.

“This project will enable the company to focus retail into an all airside facility – that is, after security – for departing passengers, which has been needed ever since the introduction of greater security restrictions in recent years.

“The new retail developments will see an extra 20,000 sq ft of retail space, an increase of 32% on the previous space.

“To date, the response from both existing and potential retailers to Vancouver Airport Services taking over the business and to the development under way has been very encouraging, with commitments by retailers to invest at the airport, too.”

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