ACI Europe called for this additional capacity to be delivered swiftly, as well as for further airport capacity development and legal certainty on the future of the UK-EU aviation relationship.
BRUSSELS – The UK Government has announced yesterday a tentative approval for an additional runway at London-Heathrow airport – subject to another public consultation and parliamentary vote. This announcement points to a timeline for final approval that could extend to the end of 2017.
Reacting to the news, ACI Europe – the voice of Europe’s airports – welcomed the fact that the UK government has finally clarified its position on expanding airport capacity in the UK. ACI Europe called for this additional capacity to be delivered swiftly, as well as for further airport capacity development and legal certainty on the future of the UK-EU aviation relationship.
Olivier Jankovec, Director General ACI Europe commented “This announcement brings us closer to the end of one of the longest, most publicly-consulted infrastructure planning processes, anywhere in the world. While a positive development in itself, this is just a first step requiring both swift implementation and a plan for further airport capacity development – not least because this new runway at Heathrow will not be enough to meet future demand for air transport. An island economy lives or dies by its air connectivity. If the UK Government is serious about its focus on economic growth and preserving the country’s global positioning, it needs to truly embed air connectivity and sustainable airport development in its economic strategy. This has become a common feature of some of the world’s most dynamic and forward-looking economies°.
He added “Last but not least, today’s announcement can be no substitute for much needed legal certainty over the future of the UK-EU aviation relationship. There must be quick reassurances that as part of its Brexit strategy, the UK Government will seek to ensure that the UK and EU aviation market will remain closely integrated – with EU and UK airlines continuing to enjoy free market access.”
As recognised by the EU Aviation Strategy launched last year, the lack of sufficient airport capacity remains one of the main challenges faced by European aviation – with the situation being particularly acute in the UK. EUROCONTROL has forecast that insufficient levels of airports capacity will result in 12% of demand for air transport not being accommodated by 2035 – or 1.9 million flights not taking place. The lack of airport capacity will mainly affect medium-sized and larger airports – reflecting a trend of air traffic concentration as airlines tend to focus on primary markets & higher yields. Along with Turkey, the Netherlands and Belgium, the UK is expected to face a significant shortage of airport capacity.
Jankovec commented: “Europe continues to face an airport capacity crunch over the next 20 years. This will obviously hurt aviation – with delays & flight cancellations expected to reach unprecedented levels throughout the entire network and also generating huge environmental inefficiencies. In addition, this will damage our economies with the resulting weakened air connectivity costing €97 billion in lost GDP annually and nearly 2 million jobs missed out on by 2035.”
IATA Statement on UK Government Decision on Heathrow
"We fully support the government's conclusion that Heathrow needs a new runway. It's the right decision. But it needs to have the right price tag.
To maximize the potential of the new capacity, Heathrow costs must become even more competitive and cost effective. The government's desire to keep charges close to current levels cannot be compromised. In fact, the aim should be much more ambitious given the already high costs of doing business at Heathrow.
The government's objective to facilitate the expansion without hitting passengers in the pocket must also not be compromised. Passengers using the airport deserve value for money when they fly from Heathrow. Under no circumstances should travelers today be expected to pay for benefits that will only be enjoyed by those traveling after the runway becomes operational. A key component must be a close scrutiny of all costs associated with the new capacity, and how these are allocated to different stakeholders. For instance, the government should take separate responsibility for all surface access funding, for both road and rail.
We are convinced that the new runway will be environmentally sustainable and look forward to a dialogue with stakeholders on how this can be achieved. But the new runway must not be so encumbered with draconian operational restrictions and costs on its use that its potential economic value is destroyed. That would short-change travelers and the UK economy.
The next step needs a big community effort. Airlines, the airport, the regulator and the government must work very hard together to ensure the success of the new runway. Above all, that means keeping costs at competitive levels," said Alexandre de Juniac, IATA's Director General and CEO.
International Airlines Group (IAG) welcomes the decision to expand Heathrow and is pleased that the Government has recognised the cost to customers must not increase from today’s level if the airport is to have a future.
Willie Walsh, IAG’s chief executive, said: “We’re pleased that a decision has finally been made but the cost of this project will make or break it. The Government’s directive to cap customer charges at today’s level is fundamental.
“Heathrow is the world’s most expensive hub airport so it’s critical that new capacity is affordable. The airport has consistently argued that the British economy will benefit if the third runway is approved. Heathrow want it, argued for it and now must ensure it’s the UK and the travelling public who get the benefits from the runway not the airport’s owners.
“An efficiently built Heathrow will demonstrate that the UK can deliver cost effective infrastructure and compete on the world stage”.
The third runway will be funded by airlines and their customers and does not come from the public purse.
Willie Walsh continued: “We will be vigilant in ensuring that Heathrow does not raise charges to benefit its shareholders to the detriment of the travelling public. We believe it’s sensible that this is properly debated and we look forward to being consulted about our views”.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
