Case Study: Malindo Air
1. INTRODUCTION
Increasingly public sector partners including Transport Scotland, Scottish Enterprise and Visit Scotland are taking a ‘Team Scotland’ approach to the strategic development of new air routes to Scotland. All partners are agreed on the importance of ensuring that support efforts are directed towards routes that will bring net economic benefits to Scotland.
With this in mind, in late December 2011, Scottish Enterprise, working in partnership with the other parties, commissioned York Aviation to develop a common economic appraisal framework for new route development activities that could be agreed by all parties.
The Study is specifically required to address three main components, summarised below:
•a brief overview of existing evidence, literature and research on the economic and carbon costs and benefits to an economy of increased air connectivity;
•a brief review of existing methodologies for assessing economic and carbon costs and benefits (including Transport Economic Efficiency appraisal and approaches to assessing wider economic benefits); an appropriate methodology is then to be proposed that will allow an assessment to be made of the quantitative and qualitative contribution of new air routes to the Scottish Government’s Economic Strategy and the National Performance Framework; this should also consider how contributions to the development of Scotland’s growth sectors might be measured, and whether economic benefits can be measured at a sub-Scotland, Scotland, UK and European level;
•the testing and use of the agreed methodology to appraise the quantitative and qualitative economic and carbon costs and benefits of five potential routes into Scotland (2 from Scotland to China and 3 from Scotland to the Middle East).
This Technical Report sets out the rationale for public sector intervention in the air transport market, provides a detailed description of the defined appraisal framework and its indicators, outlines the
Increasingly public sector partners including Transport Scotland, Scottish Enterprise and Visit Scotland are taking a ‘Team Scotland’ approach to the strategic development of new air routes to Scotland. All partners are agreed on the importance of ensuring that support efforts are directed towards routes that will bring net economic benefits to Scotland.
With this in mind, in late December 2011, Scottish Enterprise, working in partnership with the other parties, commissioned York Aviation to develop a common economic appraisal framework for new route development activities that could be agreed by all parties.
The Study is specifically required to address three main components, summarised below:
•a brief overview of existing evidence, literature and research on the economic and carbon costs and benefits to an economy of increased air connectivity;
•a brief review of existing methodologies for assessing economic and carbon costs and benefits (including Transport Economic Efficiency appraisal and approaches to assessing wider economic benefits); an appropriate methodology is then to be proposed that will allow an assessment to be made of the quantitative and qualitative contribution of new air routes to the Scottish Government’s Economic Strategy and the National Performance Framework; this should also consider how contributions to the development of Scotland’s growth sectors might be measured, and whether economic benefits can be measured at a sub-Scotland, Scotland, UK and European level;
•the testing and use of the agreed methodology to appraise the quantitative and qualitative economic and carbon costs and benefits of five potential routes into Scotland (2 from Scotland to China and 3 from Scotland to the Middle East).
This Technical Report sets out the rationale for public sector intervention in the air transport market, provides a detailed description of the defined appraisal framework and its indicators, outlines the