BAA is proud to serve Scotland. Our airports are an integral part of the social and economic life of our country, delivering high quality jobs, generating investment and sustaining our tourist industry – now, more than ever, the lifeblood of our economy.

Together, our airports welcomed more than 21 million passengers in 2007, more than at any other time in Scotland’s history. The number of destinations available from Scotland’s airports also reached a new high. Today, business and leisure travellers have access to a network of 140 destinations worldwide, across the UK, Europe, North America, the Caribbean, North Africa, the Gulf and Asia.

As a result, Scotland has never been better connected.

As our passengers travel further, to the far reaches of the globe, they return home with greater expectations of their local airports. As the custodians of those airports, it is our duty to ensure those expectations are met, and surpassed.

Improving the passenger experience through our airports – by reducing security waiting times, for example – is a key challenge. Work is already underway, with a new £31 million Glasgow Airport terminal extension, incorporating a purpose built security search area with state of the art screening technology, due for completion in October 2008 – one of many tangible signs that BAA is, step by step, transforming Scotland’s airports and setting a new standard for air travel in Scotland.

Over the course of the next ten years, BAA Scotland will invest £500 million across its three airports, delivering the additional terminal and airfield capacity Scotland’s airports need to compete in a challenging market.

As this report shows, our airports provide many positive social and economic benefits for the communities they serve. As our business grows, so too will the number of good quality jobs for local people. Our airports have also opened up new opportunities to travel, making affordable air travel a reality for many Scottish families. Our own tourist industry has also benefited from the growth of our airports. As a country on the geographical periphery of Europe, Scotland’s economy needs a successful aviation industry if it is to compete effectively. Our airports have responded to this challenge and Scottish businesses now have access to some of the world’s most important centres of commerce.

But, as our airports grow, so the need to manage and mitigate the impacts of aviation growth becomes ever more pressing. Climate change, aircraft noise, air quality and road congestion are just some of the many concerns addressed in this report.

BAA openly acknowledges that aviation has an impact on climate change, and we have been unfaltering in pursuing what we believe is the most practical solution – emissions trading.

We are committed to supporting the European Union’s (EU) plan to bring aviation greenhouse gas emissions within the EU Emissions Trading Scheme as soon as practicable. But action at a European level can only be the start, the first step towards a global agreement on climate change. BAA is determined to play its part in this important debate.

This report sets out how we intend to meet this, and many other challenges, as we strive to grow our airports in a safe, sustainable and responsible manner.

It is a record of our commitment to our passengers, to our local communities and to the businesses that drive Scotland’s economy through a rapidly expanding international route network.

It is the story of a company proud of its Scottish roots, committed to Scotland for the long term.

I hope you find this report useful.