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Committee for Economic Development publishes report on the Economic Impact Analysis of extending Guernsey Airport's runway

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Friday 22 May 2020

The Committee for Economic Development has today published a summary of the report produced by Frontier Economics which examines the costs and benefits of extending the runway at Guernsey Airport.

The analysis undertaken by Frontier Economics provides an Economic Impact Analysis of extending Guernsey airport's runway to at least 1,700m, as well as providing a high-level Social and Environmental Impact Analysis.

Deputy Charles Parkinson, President of the Committee for Economic Development said:

"The report the Committee for Economic Development commissioned from Frontier Economics shows that there is a clear net economic benefit of extending Guernsey airport's runway to at least 1,700m. In order to breakeven, the runway extension would need to lead to an additional 8,200 visitors per year. To put that figure in perspective, that is less additional passengers than travelled to London Southend when that route was trialled in 2019 and this could lead to a net economic benefit of £21 million over 40 years."

"If the runway extension was to lead to an additional 20,000 visitors per year, then the report suggests that the net economic benefit could rise to an estimated £200 million over a 40 year period. Nevertheless, the Committee recognises that in light of the Covid-19 pandemic and the potential impact on air travel, now is not the right time to bring a policy letter to the Assembly, as the report's findings will need to be reviewed."

"As part of the economic recovery plan for the Bailiwick of Guernsey and after checking whether the assumptions underpinning the reports are still valid, the Committee for Economic Development will decide on the terms of a Policy Letter to bring to the Assembly for an extension of Guernsey airport's runway, once the Covid-19 pandemic is under control and the future of the local and UK airline industry is clear."

Downloads

Frontier Economics - Guernsey airport runway extension - SUMMARY REPORT

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