Contents

SASIG 2013/14 Meeting Dates

Regional News

Industry News

Parliamentary News

Government News

House of Commons Questions

Media News

 

SASIG 2013/14 Meeting Dates

28 June 2013

25 October 2013

7 March 2014

Meetings are held at 11am, Local Government House, Smith Square, SW1P 3HZ, with lunch provided afterwards, location map.

 

Regional News

20 Apr 2013 – The debate over night flights at Heathrow Airport continues. The London Assembly urged the airport to encourage planes to approach from the west of London to reduce the number flying over the capital, but Heathrow said it did not want to pledge to action if it could not deliver.

21 Apr 2013 – The residents of the London Borough of Hillingdon currently have their chance to vote in a ‘referendum’ about the proposed third runway for Heathrow. The poll will be conducted from April 21 until May 16 and will also ask if people want more flights to and from the airport. Richmond Council is running a similar poll and the results will be announced on the same day.

20 Apr 2013 – A survey of airport parking prices has found that Heathrow Airport has the most expensive parking rates. A week’s parking in June 2013 starting at £42 for a pre-booked private off-site car park. The cheapest parking was found at Luton Airport, where a week can cost £23 if booked in advance, followed by Liverpool on £26 and Glasgow on £27

20 Apr 2013 – Flybe has warned its annual losses will be worse than previously predicted. The Exeter-based airline is now expecting losses of £23m, £5.5m more than its previous forecast of £17.5m. The airline is also repeating its Air Passenger Duty rebate promotion, which it says will reduce fares by up to £26 on UK domestic routes. The offer is valid for flights on 151 routes booked between today and Tuesday April 23, for travel between July 1, 2013 and October 25, 2014.

22 Apr 2013 – Manchester Airport expects to pass the 20 million annual passenger mark in 2013, after adding 17 new destinations this summer. The airport handled 19.7m passengers last year, 847,000 or 4.5 per cent more than in 2011.

22 Apr 2013 – Work has been completed on a new lounge at Bristol Airport. The new £600,000 Aspire Lounge replaces the old executive lounge, increasing the space available by 50 per cent. A range of product improvements for passengers have been introduced.

24 Apr 2013 – The Western Rail Access to Heathrow Stakeholder Steering Group (WRAtH SSG) has appointed Malcolm Parsons as Senior Programme Development Manager to oversee the project. Malcolm has previously fulfilled a management role for major projects in the west of England for Network Rail.

25 Apr 2013 – Heathrow Airport posted losses of £196m, compared to £232m a year ago, on revenues 6.1 per cent higher at £520m in the quarter. Airline fees and other aeronautical income rose 11.9 per cent to £301m, reflecting a 12.7 per cent increase in tariffs last April. Turnover from the airport’s shops, car parking and cafes increased 2.9 per cent to £107m.

 

Industry News

19 Apr 2013 – Manchester Airports Group have gained the highest ranking in a Corporate Responsibility Index awarded by ‘Business In The Community’. The Index is developed in consultation with businesses, challenging and supporting large organisations to integrate responsible business practices.Heathrow Airport were also given the ‘Platinum Big Tick’ at the same event.

20 Apr 2013 – Vince Cable, the Secretary of State for Business, is to visit the Brazil this week as part of a bilateral series of talks with his counterpart in the country. During his stay he will meet with representatives of Embraer, the Brazilian aircraft manufacturer, which it is believed are considering investing in Britain.

21 Apr 2013 – Craig Kreeger, the new chief executive of Virgin Atlantic, has said that Amsterdam’s Schipol Airport is a ‘threat’ to LondonHeathrow. He points out that passengers can fly to 26 UK destinations from Schiphol but only to seven from Heathrow.

21 Apr 2013 – American academic Dr. John Kasarda writes about the development of what he calls the ‘Airport City’ and ‘Aerotropolis’ – airport-centred urban economic regions. Dr. Kasarda is currently a Professor of Strategy and Entrepreneurship the University of North Carolina at Chapel Hill, and Director of the Frank Hawkins Kenan Institute of Private Enterprise. He also directs the Kenan Institute’s Center for Air Commerce.

22 Apr 2013 – A new law passed by the European Union to come into effect in 2014, may change the Ryanair limit on passengers with disabilities. The airline which currently places a limit of four passengers with disabilities per flight claim that the limit was imposed to guarantee the safety of passengers.

22 Apr 2013 – A new report published by Sustainable Aviation (a lobby group whose supporters include British Airways and Heathrow Airport) argues that the aviation industry can be reduce aircraft noise even if the number of flights increases. A short summary of this report can also be seen on the SASIG Publications page.

22 Apr 2013 – The World Wildlife Foundation has published a report on the economics of airport expansion. A short summary of this report can also be seen on the SASIG Publications page.

22 Apr 2013 – The group Stop Stansted Expansion (SSE) published their response to the Airports Commission discussion paper on Aviation Connectivity and the Economy. Among their arguments they assert that the demand for more business flights or more routes to emerging markets are being driven by the ‘UK aviation lobby’ rather than national demand. The full report can be found here.

22 Apr 2013 – British Airways’ parent company has struck a deal with Airbus that could see it buy up to 36 of the manufacturer’s long-haul A350 planes. International Airlines Group (IAG), which owns BA and Spain’s Iberia, said it had placed 18 firm orders and had an option to buy 18 further Airbus A350 aircraft.

22 Apr 2013 – The Mayor of London, Boris Johnson, will speak at a rally against the expansion of Heathrow Airport. The event will be held in Barn Elms, Wandsworth on Saturday 27 April.

22 Apr 2013 – EasyJet has started talks with Boeing and Airbus for new-generation jets. EasyJet is reported to be ‘keen to get the new, more fuel-efficient jets’.

22 April 2013 – Vietnam Airlines has expanded its service from London Gatwick. UK arrivals into Vietnam have increased by 40 per cent year-on-year since nonstop services were launched.

 

Parliamentary News

24 April 2013 – Lords debate Tourism 

The Government was determined to increase tourism from growing markets including China, and was working on this by improving visa processes and enhancing air links, peers heard today. Responding to a question on the Government’s plans to maximise tourism potential in the UK, Conservative Lords Government Spokesperson for Culture, Media and Sport Lord Gardiner of Kimble said that the industry was central to the Government’s strategy for growth.Noting that tourism might become the UK’s fastest-growing sector over the next decade, Lord Gardiner highlighted the Government’s 2011 strategy on the industry, and said that Ministers wanted to remove unnecessary barriers. His department was delivering changes wherever possible, he said, and working with other Government departments and private sector partners to capitalise on the UK’s tourism potential. There was a need to capitalise on increasing numbers of travellers from new markets such as China, he noted, which by 2030 would have 1.4bn affluent customers. Specific improvements had been made to Chinese and Indian visas, Lord Gardiner said, and aviation connectivity with the country was being enhanced. The Government was also “looking at Brazil, Russia, India and other emerging markets”, he noted.

Highlighting the role of the GREAT campaign, he said that in 2013 it would focus on China. Recent figures showed that the Government was on track to meet its target of bringing in an additional 4.6m visitors by 2015, he said.The Olympics had generated worldwide coverage of British attractions, Lord Gardiner noted, with over 14,000 positive stories during the first six months of 2012. Hailing the role of domestic tourism, Lord Gardiner highlighted a “significant increase” in this area, with 2.8 per cent more being spent on domestic holidays in Britain last year.The Growing Tourism Locally programme would create new jobs in this area, he said, while VisitEngland was working with local tourism bodies and businesses to “develop strong private sector leadership” and links with local enterprise partnerships.

On the potential for changes to daylight savings, Lord Gardiner said that he was “mindful” of comments about the position of Scotland, and argued for the need to “develop consensus on this matter so that the whole of the United Kingdom feels comfortable about it”.

Asked about the possibility of changes to Air Passenger Duty, he said that this was a matter for the Treasury. It could also not be considered in isolation, he said, highlighting the imposition of “a variety” of other tourist taxes by other countries. The tax had provided £2.6bn in revenue in 2011-12, Lord Gardiner noted, so there was a need to be “very careful and cautious as it would be difficult to forgo this without making cuts in other areas”. Potential changes to VAT had been examined by the Treasury, he said, and referred to the “significant VAT release for cultural attractions and public transport which are not available in different countries”. Asking the question, Liberal Democrat peer Lord Lee of Trafford said that the UK’s tourism industry “could do so much better” than at present. Highlighting the country’s “cornucopia of riches”, he cited “huge potential”, and argued that successive Governments had failed to take the issue seriously.

Criticising reductions in funding for VisitBritain and VisitEngland, he attacked the imposition of full-rate VAT on accommodation, arguing that a reduction would create jobs and provide revenue. Lord Lee further condemned the deferral of deliberations on expanding airport capacity, and called for amendments to the Package Travel Directive. The demise of Regional Development Agencies had “seriously reduced funding” for important tourism initiatives and projects, he argued, describing their replacement through the Regional Growth Fund as inadequate. He also attacked the notion of imposing a “mansion tax”, citing its potential to impose “severe annual burdens” on the owners of historic properties.

Responding to the debate, Shadow Business and Culture Spokesperson Lord Stevenson of Balmacara called for “tourism experts or champions in each of the policy departments in which [tourism] operates”.

 

 

Government News

24 April 2013 – A new report from the Committee on Climate Change examines both the size of UK’s carbon footprint and the impact of low-carbon policies on UK competitiveness. It aims to provide a picture of the UK’s contribution to climate change and help shape the future of its climate change policy.

The report estimates that the UK’s carbon footprint has increased by 10% or more. This is reportedly due to increased imports as incomes have grown and manufacturing has shifted to other countries as part of the broader globalisation process.

The report considers whether carbon policies have contributed to this shift in manufacturing, but concludes that this is not the case. It also considers competitiveness risks in future due to low carbon policies, including the Electricity Market Reform  aimed at supporting the transition to a low-carbon power system. The report concludes that these risks are manageable within policies and funding already announced by the Government. These policies could increase electricity bills for the typical household.

The report highlights the essential role of a global deal to drive emissions reductions across countries and achieve climate objectives. This would also reduce the UK’s imported emissions, which together with deep cuts in domestic emissions required under the Climate Change Act would reduce the UK’s carbon footprint by around 70% over the next decades.

The full report, launch presentation and data supporting the report’s conclusions can be found here.

25 Apr 2-13 – National Statistics has published a report titled ‘Air Quality Statistics – UK, 1987-2012’, available here.

 

 

House of Commons Questions

Rosindel – Delays to passeger flights

18 April 2013

Andrew Rosindell (Conservative Party; Romford): To ask the Secretary of State for Transport by how many hours commercial passenger flights were delayed in each of the last five years.

Simon Burns: The Civil Aviation Authority collects and publishes data on delays at 10 UK airports. Estimates of the total number of hours by which commercial passenger flights were delayed in the last five years, based on the CAA punctuality statistics, are given in the following table.

Estimated number of hours by which commercial passenger flights were delayed at the 10 UK airports for which data are available, 2008-12

 

2008

2009

2010

2011

2012

Birmingham

25,600

18,100

23,800

14,400

14,300

Edinburgh

25,600

18,300

23,400

16,600

15,500

Gatwick

82,400

60,100

88,100

51,000

53,400

Glasgow

23,300

14,600

18,500

12,700

12,900

Heathrow

134,800

93,200

121,700

94,800

103,700

London City

18,200

8,700

9,800

7,800

7,300

Luton

22,400

17,100

23,900

14,800

13,800

Manchester

58,500

38,100

51,500

37,600

38,400

Newcastle

12,700

8,500

13,000

7,500

7,600

Stansted

36,200

28,200

34,200

18,100

19,000

Total (10 airports)

439,800

304,900

407,900

275,300

285,900

 

Rosindell – Public cost to delayed commercial passenger flights

18 April 2013

Andrew Rosindell: To ask the Secretary of State for Transport what estimate he has made of the cost to the public purse attributable to delayed commercial passenger flights in each of the last five years.

Simon Burns: The Department for Transport has made no estimate of the cost to the public purse attributable to delayed commercial passenger flights in each of the last five years.

 

Jarvis – Decision on the expansion of Heathrow Airport

22 April 2013

Dan Jarvis MBE, Shadow Culture Minister: To ask the Secretary of State for Transport when he intends to announce a decision on expansion of Heathrow Airport.

Simon Burns: Last year, the Government set up the independent Airports Commission to examine the scale and timing of any requirement for additional capacity to maintain the UK’s position as Europe’s most important aviation hub, as well as identify how any need for additional capacity should be met. The Airports Commission will publish its interim report at the end of this year and its final report by summer 2015.

 

McCrea – Aviation Strategy for Northern Ireland

22 April 2013

Rev William McCrea MLA, Environment Spokesman Democratic Unionist Party (DUP) South Antrim): To ask the Secretary of State for Northern Ireland what representation she has made to the Secretary of State for Transport concerning an aviation strategy for Northern Ireland.

Theresa Villiers, Northern Ireland Secretary: I have regular discussions with my ministerial colleagues on transportation matters, and in particular the importance of regular flights to the London airports, including Heathrow, which directly benefit business, tourism and the general travelling public in Northern Ireland.

 

Field – Percentage of coverage of the ‘e-Borders Programme’

24 April 2013

Frank Field, (Labour Party; Birkenhead): To ask the Secretary of State for the Home Department what she expects the highest achievable percentage coverage of all passenger movements to be for the e-Borders programme; and when she expects this figure to be achieved.

Mark Harper, Immigration Minister: Advance passenger information (API) is now collected for over 142 million passenger and crew movements each year on over 4,400 routes, equating to 66% of passenger movements to and from the UK. This amounts to 80% of all aviation movements and includes 100% of non-EU commercial aviation passengers. We continue to extend the collection of API data to the maritime and general aviation sectors and are engaging with rail operators in order to maximise data collection. New capability has been added to the system to enable the processing of API received from all types of transport.We continually work to achieve the highest possible coverage, but there are a number of factors which potentially limit the volume of passenger data that can be captured. These include European Freedom of Movement legislation and operators’ business models, especially in the rail sector. Considering these factors, it is not possible to set absolute targets.

 

Paisley – Government policy on Air Passenger Duty on short haul flights

25 April 2013

Ian Paisley Jr, (Democratic Unionist Party; North Antrim): To ask the Chancellor of the Exchequer what his policy is on air passenger duty on short haul flights within the UK.

Sajid Javid, Economic Secretary to the Treasury: Air Passenger Duty (APD) rates for short-haul flights for 2013-14 were set out at the 2012 Budget. The APD rates for. 2014-15 were set out at the 2013 Budget. In both cases, rates have increased in line with inflation only. A table of APD rates can be found online here: http://cdn.hm-treasury.gov.uk/fb2013_ootlar.pdf

 

Edwards – Air Passenger Duty, Wales

25 April 2013

Jonathan Edwards, (Plaid Cymru; Carmarthen East and Dinefwr): To ask the Chancellor of the Exchequer what recent representations he has received from Ministers in the Welsh Government on the (a) rate and (b) devolution of airport duty tax.

Danny Alexander, Chief Secretary to the Treasury: Treasury Ministers and officials have regular discussions with the Welsh Government on a wide variety of topics. To support the UK Government’s assessment of the recommendations in the Silk Commission’s first report “Empowerment and Responsibility: Financial Powers to Strengthen Wales”, an intergovernmental working group has been established comprising officials from the UK and Welsh Governments.

 

Dodds – Discussions with aviation industry about G8 Summit in Northern Ireland

25 April 2013

Nigel Dodds OBE, (Democratic Unionist Party; Belfast North): To ask the Secretary of State for Transport what discussions he has had with (a) airport operators and (b) airline carriers on the holding of the G8 Summit in Northern Ireland in June 2013.

Simon Burns, Transport Minister: The Secretary of State for Transport, my right hon. Friend the Member for Derbyshire Dales (Patrick McLoughlin, Transport Secretary) has not been involved in discussions with airport operators or airline carriers over the planning for the forthcoming G8 summit. Planning for the summit has been led by the Foreign and Commonwealth Office, who have engaged with Belfast International airport, Enniskillen airport and other interested stakeholders.

 

Media News

22 Apr 2013 – The Confederation of British Industries (CBI) has responded to the Department for Transport consultation on night flights by saying that the flights play a ‘unique role’ ensuring both timely movements of freight and allowing business travellers to arrive at destinations ready for a full day’s work. The consultation has sought to review opinion on current night flying operations at Heathrow, Gatwick and Stansted Airports.

22 Apr 2013 – Thames Valley Berkshire Local Enterprise Partnership have published their response to the Airports Commission consultation on Aviation Connectivity and the Economy.

22 Apr 2013 – The European Union has decided to temporarily exempt airlines from reporting carbon emissions for flights between EU airports and third countries. The European Council on Monday took a decision derogating temporarily from the directive establishing the EU scheme for greenhouse gas emission allowance trading.

23 Apr 2013 – The group Stop Stansted Expansion has called for night flights to be progressively phased out at Stansted Airport so as to reduce sleep disturbance for local communities. The call for an end to night flights is part of a 10,000 word submission sent by the campaign group to the Government highlighting the particular disturbance caused by night flights at Stansted because of its rural location where background noise levels are generally very low.

23 Apr 2013 – London Gatwick Airport has submitted its response to the Department for Transport’s Night Flying Restrictions Consultation. The airport has asked that its current night flight quota remains consistent. They suggest that this capacity will enable Gatwick to continue to develop new destinations to the Far East for example.

23 Apr 2013 – The UK Civil Aviation Authority has secured €95,700 in compensation for UK passengers hit by delays of over three hours that it considers were within their airline’s control. On 23 October 2012, the Court of Justice of the European Union (CJEU) judgment in the case of TUI Travel and others v CAA confirmed that passengers whose flights arrive more than three hours late may be entitled to compensation for the delay in line with EC Regulation 261/2004, unless circumstances outside the airline’s control delayed the flight.

24 Apr 2013 – The Civil Aviation Authority has announced that it is to merge the activities of its Safety Regulation Group and Department of Airspace Policy, with effect from 1 July 2013. The new, merged department will be led by Mark Swan, currently the CAA’s Director of Airspace Policy.

24 Apr 2013 – The Association of British Travel Agents has responded to the Government’s consultation on night flying restrictions at Heathrow, Gatwick and Stansted.  They have emphasised the need for a balance between the economic benefits of meeting demand and the impact of night flights on local communities and the environment.

25 April 2013 – The Freight Transport Association has stated aviation expansion is vital to the economy. In its submission to the Airports Commission’s discussion paper ‘Aviation Connectivity and the Economy’, the association said that air freight is crucial to the UK economy because it provides a service which the rest of UK industry relies upon in order to be competitive in the global market.

26 Apr 2013 – The Prime Ministers new Head of Policy has stated that poor reliability of Heathrow Airport is damaging Britain’s economy. Jo Johnson, brother of the London Mayor is reportedly in favour of a new hub airport in the Thames Estuary.

The Parliamentary information in this Bulletin is sourced from De Havilland Information Services plc.