Yoko Ono was "overwhelmed" when the airport asked if it could adopt the Lennon name - and her only stipulation is that it be used 'tastefully'.

On 25 July this year, Her Majesty the Queen officially opened the airport's new terminal - a £32.5m development featuring no less than 13,000 sq ft of specialist Pilkington glass. From the shed to a very handsome greenhouse… The story of Liverpool's transformation is wrapped up in the emergence of the low-cost phenomenon. The airport's owner today is Peel Airports. This is part of Peel Holdings, which began as a textiles company and diversified into property, beginning with the Manchester Ship Canal. Peel also owns and has developed the Trafford Centre, a leisure and retail complex on the edge of the Manchester.

The opportunity to buy Liverpool airport came in 1997. Confidence was low, particularly as Manchester had just obtained planning permission for its second runway.

Peel Airports commercial director Neil Pakey said the airport recognised it would never be the leader in this region, "but we saw we could be the leading low-cost airport. We believe we identified a category where leadership was possible, and we've delivered."

Low cost, high throughput
As so often elsewhere, easyJet has been the key. The airline began operations out of Liverpool in October 1997. As a former property company, Peel often refers to easyJet as an 'anchor tenant' and the revised easyJet contract signed two years ago has underwritten the terminal expansion project. Airport and airline have a 20-year agreement, which guarantees at least seven Liverpool-based easyJet aircraft but there is scope to go far beyond that. Pakey remarked: "The anchor seems to be holding."

Ryanair is at Liverpool too and is currently operating on its Brussels South Charleroi route at about 85% load factor. The same is true for easyJet on its CDG route.

The 'new' terminal at LJLA actually envelopes the old - but is three times larger, offering annual capacity of more than 3m.

Re-branding 'a stroke of genius'
If easyJet provided the opportunity, a simple addition to the name has catapulted Liverpool airport from the also rans to the top of the charts. Very, very few airports in Europe have exploited the power of branding - there is Venice Marco Polo, Salzburg W.A. Mozart and Rome Leonardo da Vinci (although airport people know it as Fiumicino). And that's about it.

By contrast, in the US, practically every significant airport and even humble brown-dirt landing strips are named after a local politician, bureaucrat or local hero.

Incredibly, the notion of re-branding the airport 'Liverpool John Lennon' came up during a coffee-break at a board meeting of Peel Holdings. Pakey explained: "Peel chairman John Whittaker was looking for a tag of some sort for the new terminal. As soon as it was mentioned, he said: 'Right, we're doing it!' Whittaker had been in the US earlier researching the Southwest Airlines phenomenon and he'd been to John Wayne Orange County airport. The idea obviously clicked and it stuck in his mind… and the rest is history."

Peel put the idea to Lennon's widow, Yoko Ono through her New York lawyers. They said they would ask her views and report back. According to Pakey, she was "overwhelmed" and absolutely delighted. "She has been unbelievably co-operative."

Perhaps the most extraordinary element of the exercise is that no financial consideration has ever been mentioned. The only criterion Yoko has put in place is that Liverpool use the branding 'tastefully'. She also readily sanctioned the use of the famous self-portrait and the tag line 'Above us only sky' taken from Lennon's masterpiece, Imagine. "It was a great challenge keeping the branding quiet in the nine months before 2 July 2001."

The airport had a second perfect promotional opportunity when Yoko Ono and Cherie Blair unveiled a newly commissioned statue of Lennon at the airport in March this year.

The royal opening completes a triple triumph, made all the sweeter since Entrepreneur magazine declared the re-branding exercise "a stroke of genius".

Peel strategy
The company plans to make further investments, but only where its criteria are fully met. Chief among these is unfulfilled growth potential. It is not, however, in the market for major privatisations.

An example of its thinking is Doncaster Finningley, the former RAF base with the second longest runway in the north of England. When purchased in 199, one of the conditions of the sale was that it be turned to civilian use.

Pakey described Finningley as "a national asset just waiting to be developed at a time when we are all talking about lack of capacity. Finningley is just awaiting the green light."

During the planning process, Doncaster Metropolitan Borough Council took 15 months to approve Peel's scheme - then it was 'called in' by government. The Public Inquiry was completed in March this year, and the Inspector is currently writing his report - this is due to be complete by September.

With regard to Peel's other significant airport holding, its 50% stake in Sheffield City, Pakey acknowledged this has a very short runway and is therefore highly restricted in which markets it can serve. Peel, he said, planned to refocus Sheffield as a GA and helicopter airport with a deliverable and sustainable strategy.

Facts and Figures Key features of the new terminal development include: Total cost of the new terminal is £32.5 million with an £8 million contribution from the EU through the Objective One Programme. The new terminal is three times the size of the old, growing from approximately 86,000 sq ft to 260,000 sq ft. The new check-in hall opened in early January and, at 25,000 sq ft, is three times larger than the old area. 36 state of the art, ergonomically designed check-in desks have been installed 16 ticket desks will be available for airlines, handling agents, tour operators and a Bureau de Change. 6 departure gates will be available for flight departures 43,000 sq ft of quality retail space will be available A number of leading High Street brand retailers and local organisations have taken units in the building with agreements due to be signed shortly. WH Smith, Burger King, Select Service Partner (who operate the Aintree Food Village and Estuary Bar), Gina's (gift shop) and Serendipity (games area) are all operational. Car parking is increased to over 4,200 spaces. Particular attention has been paid to Special Needs passengers and visitors. The Airport believes it has one of the UK's most accessible terminals. 10,000 polished limestone tiles have been laid. 13,000 sq ft of specialist glass from St Helen's based Pilkingtons has been installed to create a light, airy and relaxing environment both during the day and night. Construction took approximately 1.5 million man-hours Between 2000 and the end of 2002 approximately 700-800 full time equivalent jobs are forecast to have been created as a consequence of the current airport development The outbound baggage carousel cost over £2 million, is over 1,500 ft in length and is nearly four times larger than the Airport's previous system. There will be four large arrivals baggage carousels located in the expanded passenger arrivals hall.

SSP adds to Liverpool outlets Select Service Partner Airport Restaurants has opened three new landside catering facilities at Liverpool John Lennon airport. The Burger King restaurant, a new bar and the Aintree Food Village, join the company's existing two airside outlets, which are also to be refurbished as part of the airport's development programme.

Who's involved? Companies contracted by Liverpool John Lennon airport for the work on the new terminal included: Clark and Fenn, Electel, Logan, Gleeds, WSP, Scott Wilson Kirkpatrick and Leach Rhodes Walker.

Sir Roy opens £3.5m ATC tower CAA chairman Sir Roy McNulty (right, with Robert Hough, chairman Peel Airports) unveiled a plaque in Liverpool's CPMG designed, 55m ATC tower on 16 May and said: "This facility provides ATC controllers with the latest technology to allow the airport to provide the highest level of service for years to come." Key systems providers included Avionic Services, which supplied a turnkey package of equipment, services and technical support including equipment specification, project management, installation, commissioning, customer acceptance, training, documentation and assistance with satisfying the SRG in regard to all the safety critical and safety related aspects. In the terminal, FS Walker Hughes provided a complete airport operations management and passenger information display system. The company's systems are also in place at Manchester and London-Luton airports.