Capital airport set to take on Europe's best - £40 million terminal extension will support hundreds of jobs

• 40 million BAA investment
• supporting 200 jobs for Edinburgh
• new purpose built security screening area
• new bars, shops and restaurants
• more space to relax

A multi-million pound plan to develop Edinburgh Airport into one of the most modern gateways in Europe - and support hundreds of jobs - has been launched by operator BAA.

The company, which also owns Aberdeen and Glasgow airports, is to invest £40 million on a major terminal extension that will increase capacity in the terminal, provide a new purpose built security screening area, and offer passengers a wider choice of shops, bars and restaurants.

The new security search area will have capacity for 14 x-ray machines, allowing the airport to handle up to 13 million passengers a year.

Around 200 jobs in the construction and retail sectors will be supported or created as a result of the development.

The £40 million project is the first phase of a planned £100 million investment over the next five years, and will be met entirely by BAA at no cost to the Scottish taxpayer.

Opened in 1977, Edinburgh Airport is today Scotland's busiest airport and serves more than 110 destinations worldwide. This year alone, more than a dozen new services have been confirmed, including new flights to Italy, Spain, Croatia, Germany, France and Malta.

In the past decade, passenger numbers at Edinburgh Airport have doubled, rising from 4.5 million in 1998 to almost 9 million in 2008.

And while growth has tailed in recent months as a result of the current economic downturn, airport MD Gordon Dewar believes Edinburgh Airport must look to the long term and plan for the future in order to compete effectively with Europe's "biggest and best" airports.

Mr Dewar said: "This BAA investment is a significant vote of confidence in Edinburgh Airport. It will help stimulate the local economy and create or support hundreds of jobs at what is obviously a difficult time for the airline industry and for the wider economy.

"Edinburgh Airport is an economic asset of national importance, sustaining our vital tourist industry and supporting many thousands of jobs across the capital, and across Scotland.

"Although Edinburgh Airport is not immune to the short term economic pressures affecting the travel industry, we must look to the long term and build for the future. A successful, ambitious airport is good for Edinburgh and good for Scotland."

He added: "The terminal at Edinburgh Airport is now at capacity, so we face a choice - we either develop the airport in a responsible, sustainable manner, or risk Edinburgh falling behind other European cities by allowing our competitors airports to take the lead.

"This investment will create a modern, well equipped terminal providing state of the art security, more space to relax and a wider choice of bars, shops and restaurants for our passengers. More importantly, it will ensure that when the economy recovers, as it will, Scotland's busiest airport is well placed to compete with Europe's biggest and best airports."

BAA's investment in Edinburgh Airport was welcomed by the City Council and local tourism chiefs.

Councillor Jenny Dawe, Leader of Edinburgh City Council said: "Edinburgh airport is the busiest in Scotland and this planned investment is vital for the future growth of the city and its long-term economic future.
 
"Scotland is a growing nation and needs investment in infrastructure to ensure that we continue to thrive and remain competitive in the global marketplace and we must compete against many regions which benefit from better connectivity and shorter distances. I look forward to the successful development of the airport as a key gateway to Scotland and to wider international markets."

Barbara Smith, Chair of Edinburgh Tourism Action Group (ETAG) said: "Edinburgh Airport is such a crucial part of Scottish tourism. It offers direct access to Edinburgh and everything that the city has to offer visitors  around the world.
 
"ETAG welcomes this exciting news. As a city, we constantly compete with other destinations around the world to improve what we offer to visitors. It is these visitors who make such a contribution to Scotland's economy.
 
"We also welcome new jobs and infrastructure development within the tourism industry, particularly in the current financial climate. These new facilities will further enhance Edinburgh as a first-class destination to visitors, as well as making travelling to and from Scotland easier."

The 5,000 square metre extension has been designed by Archial Group and will be built by Balfour Beatty.

The ambitious development will take two years to complete because of the complexity of building in a live airside environment, with the project delivered in a phased basis in order to keep the main departure lounge open and ensure sufficient access to departure gates.