Glasgow Prestwick Airport: economic impact assessment

3. Secondary aviation impacts

The GPA site is host to activities that extend beyond the core aviation activities described in Section 2 via the presence of businesses operating on the airport’s premises. These organisations include: search and rescue (SAR) services, MRO and aircraft component providers, and logistics via the rail link connection provided by ScotRail. Activities offered by these third parties utilise GPA facilities including hangar space and the airstrip, to generate secondary aviation related revenue for South Ayrshire and the wider area. These providers demonstrate both the attractiveness and versatility of GPA’s strategic offering to aerospace related operators and the clustering benefits generated by the airport, referred to as the ‘Aerospace Engineering and Aviation Cluster’ in this report (per Table 1.1). An overview of the key secondary aviation related organisations, by service type, is provided in Table 3.1 below:

Table 3.1: Key Secondary Aviation organisations

Organisation

Bristow Helicopters

• Service Type: Search and Rescue services

Prestwick Aircraft Maintenance Limited, Storm Aviation, GE Caledonian, etc.

• Service Type: MRO and aircraft component providers

ScotRail

• Service Type: Rail services

Source: SG/GPA

For each of these organisations, qualitative and quantitative insights are presented, by service area, to understand their economic contribution to the region. This includes several case studies on key MRO and aircraft component providers and a summary of the employment and training impacts generated from these secondary activities in 2023.

3.1 Search and Rescue services

GPA provides a base for SAR services at the airport to enable the safety and wellbeing of individuals in Scotland in emergency situations. The service is operated by Bristow Helicopters,^[29] contracted by the Department for Transport (DfT) through HM Coastguard. The airport is one of four search and rescue bases in Scotland and is among the busiest bases across the UK.^[30] This is facilitated by GPA’s versatile infrastructure offering, including the longest commercial runway north of Manchester, at 2,986 metres and a secondary runway spanning 1,905 metres which helps accommodate various types of aircraft for wider, non-commercial aviation activities. This infrastructure offering, especially the long runway, plays a key role in carrying out SAR services on site.

Furthermore, insights shared by Bristow Helicopters as part of the stakeholder engagement process for this work, highlighted several further factors as contributing to GPA being an ideal base for SAR operations, including: the consistent good weather conditions, lighter traffic compared to other airports in the region and 24/7 operations.

Previously provided by HMS Gannet, the 24-hour military and civilian SAR service at GPA is considered to contribute to the health and well-being of residents by providing emergency services including the transportation of medical emergencies and equipment, particularly to remote regions, as confirmed via stakeholder interview in May 2024. A 2012^[31] study reported that the service provided by HMS Gannet employed a combination of around 100 military and civilian personnel and generated direct economic impacts of £3.7 million.

The SAR team operates from a purpose-built facility on the north side of the GPA site and is usually commissioned by the Joint Rescue Coordination Centre to provide both land and offshore services. The team utilises AWW189 helicopters for its operations and completes an average of 350 missions annually. As a fixed government contract, SAR services provide a steady revenue stream to GPA over the term of the contract.^[32] Additionally, it creates employment opportunities in the local area, with the SAR team consisting of 32 members, including pilots, administrators, and engineers, most of whom reside in the surrounding region. This is a reduction in the size of operation from around 100 people employed at HMS Gannet, with a mixture of military and civilian personnel, as reported in the 2012 economic impact study of GPA.^[33] The team also relies on local businesses to provide secondary services such as aircraft cleaning and catering.

Bristow Helicopters expects to continue building a strong presence at the GPA site, with future growth plans over the next two years including: increasing the size of the SAR team to 55 members at the base by 2026, collaborating with Nova Systems to develop future technologies to improve helicopter systems and partnering with 2Excel Aviation to deliver a two-wing aircraft and fixed-wing hangar at the GPA site. These plans indicate Bristow Helicopters commitment to continue delivering SAR services from its base at GPA and leveraging the airport’s unique strategic location and offer to diversify its operations.

3.2 Maintenance Repair and Overhaul (MRO) and aircraft component providers

The GPA site serves as the central hub for the Aerospace Engineering and Aviation Cluster in the Ayrshire region. Within this cluster, the Prestwick Aerospace^[34] is a centre of excellence for MRO, aero structures, and design engineering services. With a highly skilled workforce and a well-established local supply chain, this hub caters to both local and international customers. Some of the largest global aerospace companies, such as BAE Systems, Spirit AeroSystems, and GE Aerospace, have operations in this hub, with an estimated 813 FTEs employed on-site at the airport. Among these, Prestwick Aircraft Maintenance Limited (PAML) is the largest employer, with approximately 600 FTEs, constituting 73% of other on-site employees (excluding those directly employed by GPA).

The presence of these MRO and aerospace component providers generates numerous economic benefits for both GPA and the wider region. Beyond their direct revenue contributions and support for ancillary services such as accommodation and catering, MRO and aerospace component providers serve as major aerospace and engineering employers in the area, offering a significant number of skilled jobs to aerospace engineers, technicians, and support staff. Moreover, their investments in training and apprenticeship programmes contribute to the development of local training facilities, further enhancing the region's skills base. This is also vital to close the skills gap experienced in aerospace engineering roles by a majority of the organisations in the cluster.

To gain further insights regarding the activities of the MRO and aerospace component providers at Prestwick Aerospace, stakeholder interviews were conducted with PAML, GE Caledonian and Storm Aviation between April to May 2024. These sessions focused on understanding: key activities, the strategic role of GPA to their business and in the region, and the economic impact they generate in terms of employment and training provision in the region. Based on data provided by GPA, the estimated FTEs for the organisations interviewed for this report, and other businesses (both on-site and in the cluster) was 3,306 individuals in 2023.^[35]

The case studies below provide insights from these stakeholder interviews, offering a greater understanding of the activities of the MRO and aerospace component providers on the GPA site and the economic impact they generate.

Case Study 1: PAML

PAML, the maintenance provider for Ryanair, has been operating at the GPA hangar for over 20 years. With 6 bays, they offer a range of services including base aircraft maintenance, ad hoc specialised services, and line maintenance support to Edinburgh and Glasgow airports. A significant portion of their services are dedicated to on-site commercial flights at GPA.

At the GPA site, PAML currently employs a team of 600 FTEs and contractors and 20 international workers who have been seconded to the site. To retain this large team, PAML offers competitive salaries. Moreover, they actively contribute to skills generation and development in the local area, through their training and apprenticeship programmes.

Further information in relation to these initiatives is provided in Section 4.2. PAML's activities in the region are heavily reliant on GPA's commercial operations, particularly on the presence of Ryanair's on-site fleet of commercial aircraft. Although PAML acknowledges challenges related to the economic viability of operations at GPA, driven by high utility costs, (including rent and electricity), limited incentives, and the shortage of skilled workers in the region, they noted an on-going commitment to continue operating at the GPA site. Therefore, GPA plays a crucial role in facilitating PAML's ongoing operations in the local region, which, in turn, contributes to high-value skills generation and the creation of employment opportunities in the area.

Case Study 2: Storm Aviation

Storm Aviation, the only independent full aircraft component provider based in Scotland and has been operating at GPA for over 8 years. A combination of commercial considerations and economic viability has meant they relocated their main base in the UK from Stansted to GPA in 2021.

Currently, Storm Aviation's team at GPA consists of 68 full-time employees and 20 contractors. However, similar to other aircraft component manufacturers in the region, they are facing a severe shortage of skilled engineers. To address this issue, they have contracted 12 engineers from the Philippines on a 12-month basis for their GPA site. In addition to creating employment opportunities in the local region, Storm Aviation is actively involved in skills development and upskilling. They collaborate with Ayrshire College and the local council to deliver training and apprenticeship programmes.

Currently, they have 7 apprentices and plan to onboard 2 more over the next year. In addition to their expansion plans at the GPA site, Storm Aviation is also interested in constructing new hangar facilities and training centres. Furthermore, they aim to grow their current team to 230 employees within the next 2 years.

Case Study 3: GE Caledonian

GE Caledonian is an aero engine facility operated by GE Aerospace since 1997. Located off the airport but clustered around the Prestwick Aerospace Campus, it benefits from the favourable weather conditions at Prestwick and the support provided by local colleges and universities, which offer training in the region. The facility is heavily reliant on GPA's aviation activities for the supply of materials. On average, it undertakes approximately 200 engine maintenance projects per year.

Currently, GE Caledonian employs 780 full-time equivalent (FTE) employees and has around 50 apprentices enrolled in its four-year apprenticeship programme. In addition to its commitment to skills development and generation in the region, GE Caledonian has also been involved in various sustainability initiatives, such as the development of a solar energy storage site and efforts to increase recycling and energy efficiency.

Looking ahead, GE Caledonian plans to expand their workforce by between 50 to 100 new staff members, increase the number of shop visits at the GPA site, and to collaborate on the Ayrshire Growth Deal, which aims to attract investment in aerospace innovation to the region.

3.3 Rail link connections

GPA is the only rail-connected airport in Scotland, with a dedicated rail station connected to the airport terminal via a walkway. GPA’s rail connection service is provided by ScotRail and facilitates increased passenger traffic via improved accessibility to the airport. GPA confirmed that this service generated an annual revenue to offset the cost of operating and maintaining the station via an access fee paid by Scotrail for the use of the railway station.

The station is situated on the Glasgow Central to Ayr railway line and provides direct trains to Glasgow Central with two trains running every hour. GPA passengers using the railway benefit from half-price tickets, increasing the attractiveness of the airport to a wider catchment area than those who travel to the airport by road. Transport Scotland last reported 101,200 passenger journeys to and from the Prestwick Airport railway station in 2019/20.^[36]

3.4 Employment impacts

As highlighted throughout this section the secondary activities on the GPA site and wider cluster generate sizable employment impacts in the region, as summarised in Table 3.2 below.

Table 3.2: Estimated FTEs at the GPA site and in the Aerospace Engineering and Aviation Cluster, 2023

Source: FTE estimates from December 2023, SG Analysis, FTE estimates from April 2024 per stakeholder interviews conducted for this study

These impacts include:

• 813 FTE employed across a variety of aviation-related roles at the GPA site.
• MRO and aerospace component providers, in particular, generate the majority of employment in and around the Aerospace Engineering and Aviation Cluster. Over 3,300 people^[38] are employed in roles ranging from aviation engineers, manual workers, and aircraft mechanics in the wider aviation cluster. Of these, 2,493 FTE are employed across five organisations as shown in Table 3.2.
• Additionally, most MRO and aerospace component providers offer training and apprenticeship programmes that generate further employment impacts. On average, stakeholders interviewed for the purposes of this study confirmed employing over 200 apprentices and trainees in 2023.^[39] The economic impacts of this are explored in detail in section 4.2 of the report.

Estimated GVA impacts generated from indirect employment at the GPA site in FY 2023 is provided in Table 3.3 below.^[40] Given the GVA impacts have been estimated by applying GVA per head data from SG official business statistics, a range of impacts have been provided, as follows:

• Scotland and South Ayrshire level GVA per head by relevant sector (Aerospace, retail and average Scottish GVA - applied to non-aerospace and non-retail organisations) for 2021; and
• Scotland and South Ayrshire level GVA per head by relevant sector (as presented in the point above) adjusted to 2023 prices.

To avoid double counting,^[41] GVA impacts from training and apprenticeships are calculated in Section 4.2, under wider training impacts.

Table 3.3: Estimated GVA from employment at the Aerospace Engineering and Aviation Cluster, 2023

Source: SG Data, ONS Earnings & Hours Worked UK region by Industry (2021), Scottish Annual Business Statistics (2021), OBR GDP estimates (March 2024)

It can be concluded that with 813 FTEs employed indirectly at the GPA site and 2,493 FTEs in the wider Aerospace Engineering and Aviation Cluster, the airport’s secondary aviation activities also play a key role in generating indirect GVA for the Scottish economy, estimated to generate between:

• £143.2m - £204.8m indirect GVA in 2021 prices (£34.3m to £48.7m on GPA site and £109m to £156.1m in the wider cluster); and
• £161.4m - £230.8m indirect GVA in 2023 prices (£38.6m to £54.8m on GPA site and £122.8m to £176m in the wider cluster).