Contents
SASIG 2013/14 Meeting Dates
Regional News
Heathrow Expansion
Industry News
Government News
House of Commons Questions
House of Lords 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 May 2013 – Plans to attract long haul services from Cardiff Airport have been submitted to the Airports Commission. The Western Gateway proposals include making better use of the spare capacity at Cardiff to reduce congestion at airports in the south east of England. It also calls for air passenger duty to be reduced for flights from Wales.
20 May 2013 – The new chairman of Gatwick Airport has raised concerns about the Gatwick Express train service. Speaking to The Standard, Sir Roy McNulty is reported as saying that the Gatwick Express service gives incoming passengers a poor first impression due to overcrowding and old rolling stock.
20 May 2013 – Stansted Airport’s new owner has called for faster train links to the airport. Manchester Airports Group (MAG) has submitted its response to the Airports Commission.
20 May 2013 – The managers of Birmingham Airport have announced plans to double its capacity to 27 million passengers by 2021.The airport operators have unveiled a five point plan to the Airports Commission where they intend to:
- Launch a ‘Great British Airports’ marketing campaign at the 2013 World Routes convention.
- Trial fifth freedom rights for non-EU carriers seeking to offer long-haul services from airports outside the South East.
- Implement a differential tax regime at airports with spare capacity.
- Implement a congestion charge at over-capacity airports.
- Promote consumer choice through surface access improvements.
21 May 2013 – Birmingham Airport has received another award for ‘Airport of the Year’ at the Global AirRail Awards 2013. Global AirRail Awards is an international awards ceremony dedicated to the air-rail market to recognise best practice in intermodal travel around the world. The awards were open to all airports that have local, national and/or international rail connections and rail facilities.
21 May 2013 – Swiss regional airline Darwin is to open a base at Cambridge Airport operating four new routes to Amsterdam, Paris, Milan and Geneva. Darwin will offer a total of 50 flights a week to and from Cambridge from September 2 – made up of 24 weekly flights to and from Amsterdam; 12 a week to and from Paris Charles De Gaulle; eight weekly flights for Milan Malpensa, and six weekly services for Geneva.
Heathrow Expansion
17 May 2013 – In its submission to the Airports Commission the owners of Heathrow have stated: ‘An additional runway at Heathrow would deliver sufficient new capacity for the foreseeable future.’
21 May 2013 – Plans to build a four runway international airport in Haddenham in 2030 have been officially scrapped. Heathrow Airport Holdings Ltd has now revealed the proposal is no longer being considered in its submission to the Airports Commission.
21 May 2013 – Hounslow’s deputy leader Councillor Colin Ellar has been reported as saying that a larger Heathrow with four further runways to the west is the ‘most viable’ option for airport expansion. Councillor Ellar gave the proposal as the initial findings of the council’s borough-wide consultation on Heathrow’s future were announced. Residents in three London boroughs say they are against Heathrow Airport expanding, according to council consultations. Hounslow Council said 72% were against expansion, 94% wanted noise reduction but 62% did not want a new hub built if it meant Heathrow would close. In Richmond and Hillingdon 71% of people objected to a third runway. Mayor of London Boris Johnson said the results of the joint referendum strengthened his case for an Estuary airport, and called on the Government to signal to the Aviation Commission to rule out Heathrow expansion as a solution to the capacity crisis.
Industry News
20 May 2013 – Both fine-particle air pollution and noise pollution may increase a person’s risk of developing cardiovascular disease, according to German researchers who have conducted a large population study, in which both factors were considered simultaneously.
20 May 2013 – There are 103 Airbus A380 airliners in service as of early May 2013. Emirates has 33 and Singapore Airlines has 19, so when assessing network scheduling, these two and their hubs predominate: of the 1,048 weekly A380 flights, 402 are from Emirates alone. Dubai and Singapore airport see the most A380 flights. The airport seeing the most A380 operators is Hong Kong followed by Paris and Los Angeles. The largest A380 destination that is not yet an A380-hub is London Heathrow. The UK and USA are the most common A380 destinations after Australia, Singapore and the UAE.
20 May 2013 – Ryanair announced record annual profits of €569m, up 13 per cent on last year despite higher oil costs. Revenues rose 13 per cent to €4.88bn as traffic grew 5 per cent to 79.3m passengers. Unit costs rose 8 per cent mainly due to an 18 per cent (€292m) increase in fuel. Excluding fuel unit costs rose by 3 per cent, while avg. fares improved by 6 per cent. 21 May 2013 – Ryanair also announced it will be launching new routes in 2014 linking Central European cities to Israel.
21 May 2013 – A report entitled ‘Aviation Radar 2013’, by Roland Berger Strategy Consultants suggests that European airlines and airports are facing fundamental changes. The report notes that the increasing popularity of low cost carriers and airlines from the Middle East is changing the competitive landscape of European aviation. Particularly how leisure and business travellers’ strong price sensitivity is negatively affecting airlines’ average revenues. There are also stricter regulatory frameworks such as more extensive bans on night flights or additional safety regulations, which further limit operations of airlines and airports in Europe. The report notes that many companies in the aviation sector have already responded by launching comprehensive efficiency improvement and restructuring programmes.
22 May 2013 – China has agreed to set a cap on its greenhouse gas emissions for the first time. Under the proposal China would put a ceiling on greenhouse gas emissions from 2016.
22 May 2013 – Airline industry agreement on a standard measure of aircraft greenhouse-gas emissions may be delayed at least a year for more research, according to the International Civil Aviation Organization. The United Nations-overseen body is developing a Greenhouse Gas-Reduction Plan after the European Union broadened its emissions market to cover airlines, in January 2012.
22 May 2013 – Travelport has signed two more airlines to use its new flight comparison system. The technology firm launched Travelport Merchandising Platform for selling flights last month in Ireland. The new product allows Travel Merchandising Companies to shop for airline fares and ancillaries on a single screen. Easyjet, which was the launch customer for the ‘aggregated shopping’ system, has now been joined by the carriers Norwegian and Jet
23 May 2013 – Flybe has announced the sale of all 25 of its take-off and landing slots at Gatwick Airport to Easyjet for £20m. The sale is part of a cost-cutting programme for the airline. About 600 workers have been made redundant and pilots have agreed a 5 per cent pay cut. Jersey Airport have issued a statement in response to the sale, expressing their regret. Flybe is a business partner for Jersey Airport and provides the island with the greatest UK coverage. The airline has stated that it will continue operating services out of Birmingham and Manchester.
23 May 2013 – The government is calling for views on how consumer protection for holidaymakers should be provided in the first stage of its review of the Air Travel Organiser’s Licence (Atol) scheme. The call for evidence is the first step in the consultation process which, it is reported, could lead to changes in the way the Atol scheme operates and funded.
23 May 2013 – Local governments in China are set to build more airports. In southern Hunan Province, the government has made plans to build seven additional airports, which would join the area’s five existing airports that are reported as having been losing money.
Government News
20 May 2013 – Michael Medlicott has been elected as the new Chair of the Air Travel Trust, following his appointment as a trustee by Dame Deirdre Hutton, Chair of the Civil Aviation Authority (CAA). Mr Medlicott was elected as Chair by the existing trustees of the ATT. He has been a member of the CAA Board since 2010. He previously held a senior management position at Delta Airlines, sat on the Board of the Manchester Airports Group and was also the Chief Executive of the British Tourist Authority. The ATT also published its 2013 annual report and financial statements, which reveal the fund has returned to surplus for the first time since 1996. The report shows that the ATT received £48.1m in ATOL Protection Contributions from 19.2m passengers during 2012/13, up from £42.6m from 17.3m passengers in the previous year. The report also shows there were only 11 ATOL failures during 2012/13, representing an estimated cost to the ATT of £844,000. This was down from 23 failures in 2011/12, at a cost of over £14m.
House of Commons Questions
Eagle, M – Progress on Heathrow Airport Capital Investment Programme
20 Mary 2013
Maria Eagle, Shadow Transport Secretary: To ask the Secretary of State for Transport what recent progress has been made on the Heathrow capital investment programme; and if he will make a statement.
Simon Burns: Heathrow airport’s capital investment programme is funded entirely by the airport operator, Heathrow Airport Ltd. The airport is in the fifth year of its programme for the period 2008 to 2014 (or Q5 plus 1), with significant progress having been made on refurbishing and redeveloping the terminals at the airport, in particular the new terminal 2. Further information can be found about the improvements on the airport operator’s website here.
Eagle, M – Progress on Heathrow Airport Terminal 2A system installation
20 May 2013
Maria Eagle: To ask the Secretary of State for Transport what recent progress has been made on Heathrow terminal 2A; and whether the system installation has been completed.
Simon Burns: Heathrow terminal 2A is expected to be ready for passenger use in 2014. A timeline for the work and updates on progress can be found on the airport operator’s website here.
Eagle, M – Contributions by different sectors to Heathrow Airport Capital investment programme
20 May 2013
Maria Eagle: To ask the Secretary of State for Transport how much and what proportion of the cost of the Heathrow capital investment programme has been contributed by (a) local authorities, (b) private companies and (c) central Government.
Simon Burns: Heathrow airport’s capital investment programme is funded entirely by the airport operator, Heathrow Airport Ltd.
Eagle, M – Progress of Gatwick Airport Capital Investment Programme
20 May 2013
Maria Eagle: To ask the Secretary of State for Transport what recent progress has been made on the Gatwick Capital Investment Programme; and if he will make a statement.
Mr Simon Burns: Gatwick airport’s capital investment programme is funded entirely by the airport operator, Gatwick Airport Ltd. The airport is in the fifth year of its programme for the period 2008 to 2014 (or Q5 plus 1), with significant progress having already been made on refurbishing and redeveloping the north and south terminals at the airport. Further information can be found about the improvements on the airport operator’s website here.
Eagle, M – Contributions by different sectors to Gatwick Airport Capital investment programme
20 May 2013
Maria Eagle: To ask the Secretary of State for Transport how much and what proportion of the cost of the Gatwick capital investment programme has been contributed by (a) local authorities, (b) private companies and (c) central Government.
Mr Simon Burns: Gatwick airport’s capital investment programme is funded entirely by the airport operator, Gatwick Airport Ltd.
Davies – Effect of Air Passenger Duty on the UK’s tourism, aviation and airport industries
20 May 2013
Philip Davies, (Conservative, Shipley): To ask the Secretary of State for Transport what representations he has made to the Chancellor of the Exchequer on the effect of air passenger duty on the UK’s tourism, aviation and airport industries.
Mr Simon Burns: The Secretary of State for Transport, my right hon. Friend the Member for Derbyshire Dales (Patrick McLoughlin) meets with the Chancellor as part of his day to day business, during which a wide range of issues are discussed. Decisions on taxation, including air passenger duty, are taken by the Chancellor.
Lefroy – Biofuels: jobs and economic growth
21 May 2013
Jeremy Lefroy: To ask the Secretary of State for Transport (1) how many jobs have been created in the biofuels industry as a result of the Renewable Energy Directive’s requirement to create 10 per cent of transport energy from renewable energy; (2) what assessment he has made of the effect of the biofuels industry on UK economic growth.
Norman Baker, Transport Minister: Consideration of the impact on growth and employment of the Renewable Transport Fuel Obligation will be included in an assessment of the Obligation which we will conduct later this year.
‘Advanced Biofuels: The Potential for a UK Industry, NNFCC 11-011′ was published in November 2011. The study, commissioned by the Department of Energy and Climate Change and the Department for Transport, estimated that strong development of advanced biofuels could create up to 6000 full-time construction jobs and over 2000 permanent jobs supplying and operating the plants by 2020.
According to recent industry figures it has been estimated that the biofuels sector sustains approximately 3,500 jobs. (REA/Innovas: ‘Renewable Energy: Made in Britain’, 23 April 2012).
21 May 2013
Dr Kwasi Kwarteng (Conservative Party; Spelthorne): To ask the Secretary of State for Transport what progress he has made on discussions with the International Civil Aviation Organisation on carbon emissions.
Simon Burns, Transport Minister: The Government remains committed to tackling the climate change impacts of international aviation at a global level and will continue to work through the International Civil Aviation Organization (ICAO) to push for an ambitious global agreement on measures to address emissions from this sector at this year’s General Assembly (24 September-4 October).
Since December 2012 the UK has actively participated in the ICAO High Level Group on Climate Change which has met three times so far. The High Level Group has sought to resolve some of the long standing issues which have blocked progress in ICAO in the past. The discussions have been relatively constructive to date and we are hopeful that new text on addressing aviation emissions through a basket of measures, including market based measures will be adopted at the General Assembly.
Lefroy – Competition between biofuels and food production
21 May 2013
Jeremy Lefroy (Conservative Party; Stafford): To ask the Secretary of State for Environment, Food and Rural Affairs what steps he is taking to prevent the development of biofuels competing with food production.
David Heath, Farming Minister: The Government believes that food production must remain the primary goal of agriculture and the production of biofuel must not undermine food security, in the UK or internationally. Modelling analysis published as part of the Bioenergy Strategy suggests that increased EU demand for biofuels has led to global crop prices being around 3 per cent to 5 percent higher than they would otherwise have been and that this would correspond to only a modest rise in food prices, since crops represent a small share of the cost of food production. As set out in that strategy, it is nevertheless essential that we continue to monitor the volume and all types of bioenergy demand and their links with food prices and production. To this end, we will continue to work with the European Commission in its ongoing evaluation of the economic, social and environmental impacts of the EU’s biofuels policies.
House of Lords Questions
Lords Written Answer
Chidgey – Competition between biofuel and food production: European Union
21 May 2013
Asked by Lord Chidgey (Liberal Democract peer): To ask Her Majesty’s Government what plans they have to work with their European Union counterparts to ensure that the European Union does not increase biofuel production that competes with food production.
Lord De Mauley (Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs): The Government believe that food production must remain the primary goal of agriculture and that the production of biofuel must not undermine food security, in the UK or internationally. Modelling analysis published as part of the Bioenergy Strategy suggests that increased EU demand for biofuels has led to global crop prices being around 3% to 5% higher than they would otherwise have been and that this would correspond to only a modest rise in food prices, since crops represent a small share of the cost of food production. As set out in that strategy, it is nevertheless essential that we continue to monitor the volume and all types of bioenergy demand and their links with food prices and production. To this end we will continue to work with the European Commission in its ongoing evaluation of the economic, social and environmental impacts of the EU’s biofuels policies.
Lords Written Answer
Chidgey – Biofuels and economic growth
21 May 2013
Asked by Lord Chidgey: To ask Her Majesty’s Government what is their estimate of (1) the number of jobs created to date, and (2) the total number of jobs that will be created, as a result of the requirement under the European Union Renewable Energy Directive to obtain 10% of the United Kingdom’s transport energy from renewable energy.
To ask Her Majesty’s Government what is their assessment of the impact that the biofuels industry has had on United Kingdom economic growth to date; and what impact they forecast it will have over the next decade.
Earl Attlee, Government Spokesperson for Transport: Consideration of the impact on growth and employment of the Renewable Transport Fuel Obligation will be included in an assessment of the obligation which we will conduct later this year. Advanced Biofuels: The Potential for a UK Industry, NNFCC 11-011 was published in November 2011. The study, commissioned by the Department of Energy and Climate Change and the Department for Transport, estimated that strong development of advanced biofuels could create up to 6,000 full-time construction jobs and over 2,000 permanent jobs supplying and operating the plants by 2020. The potential for future growth in the supply of sustainable biofuels, and its effect on UK employment directly and indirectly, will continue to be considered in future decisions on what additional measures will be required to ensure that the UK delivers the requirements of the renewable energy and fuel quality directives in the period 2014 to 2020.
Media News
21 May 2013 – The London Chamber of Commerce and Industry (LCCI) has called on Ministers to commit to a clear timetable to implement short and medium term measures recommended by the Airports Commission. Making its submission to the Airports Commission consultation on ‘Short and medium term proposals for making the best use of existing capacity’ the LCCI called for:
- Additional night-flights at Heathrow before the end of March 2014;
- Introducing mixed-mode at Heathrow by the end of March 2015; and
- Specifying airport passenger needs as a criteria in new rail franchises.
The Parliamentary information in this Bulletin is sourced from De Havilland Information Services plc.