Contents
SASIG 2014/15 Meeting Date
Regional News
Industry News
Parliamentary News
Government News
House of Commons Questions
House of Lords Questions
Media News
SASIG 2014/15 Meeting Date
6 March 2015
Meetings are held at Local Government House, Smith Square, SW1P 3HZ, location map.
Regional News
21 February 2015 – Plans have been published, as part of an £8million development project, to build a new 330-room hotel next to the terminal at Stansted Airport. A hotel operator for the two-acre site, adjacent to the terminal building on Bassingbourn Road, is yet to be agreed but the structure will be built by developer Urban&Civic in association with Manchester Airports Group, which owns Stansted. Construction is scheduled to begin in July this year with the target opening date being ‘Christmas 2016’.
23 February 2015 – The founder and Director of the global transport consultancy, Steer Davies Gleave, Jim Steer, said that a new rail line between Stansted Airport and London Liverpool Street could reduce journey times to less than 30 minutes during his keynote address to delegates attending the 14th Stansted Airport Transport Forum. Mr Steer said that improvements would also benefit the East of England and its economy by enabling faster journey times and new direct services to key destinations in the region such as Canary Wharf, Cambridge, Colchester, Norwich and Ipswich.
23 February 2015 – The Mayor of London Boris Johnson and Chancellor of the Exchequer George Osborne have announced plans to improve rail connections between London, Cambridge and Stansted Airport. Mr Johnson and Mr Osborne saif they would establish a West Anglia task force, a group that will look at ways to improve connections between London Liverpool Street and Stansted Airport.
23 February 2015 – East Midlands Airport is set to become a national station for police planes and a helicopter in a reorganisation of the force’s air fleet. The National Police Air Service has announced plans to place 19 helicopters and four fixed-wing aircraft at 15 bases across the country. It is trying to cut its budget by 14 per cent over the next three years after already trimming £11 million from its annual cost. The four new fixed-wing aircraft, which are said to be cheaper to run than helicopters, will be based at East Midlands Airport. It will also house one helicopter.
23 February 2015 – Plans to base search and rescue helicopters at Manston Airport have been abandoned after the closure of the site. The Kent airfield was announced in 2013 as one of 10 UK bases for the helicopters when private company Bristow takes over the service in July. But a letter from Transport Miinister John Hayes on Thursday confirmed Manston would no longer be used. Leader of Thanet District Council Iris Johnston said she was furious and ‘pretty surprised’.
23 February 2015 – East Sussex County Councillor Councillor Roy Galley – who was part of the minority vote against plans to build a second runway at Gatwick – has labelled the argument for the expansion as ‘weak’. Cllr Galley has criticised the County Council’s argument that expanding Gatwick will lead to economic growth. Cllr Galley argues that the council is over estimating the amount of jobs needed in the area, and is concerned the huge undertaking of expanding Gatwick would lead to an inward migration of workers that local infrastructure could not handle.
24 February 2015 – The Colnbrook incinerator will stay open until 2023 and then move just a few yards back if Heathrow Airport begins expansion. Heathrow Airport has reached an agreement with Grundon Waste Managementand Slough Borough Council to overcome a risk to delivery of a Third Runway which Sir Howard Davies had described as high’.
25 February 2015 – Durham Tees Valley Airport has accelerated plans to develop its services for the region by seeking the views of local companies for ways in which it can improve.
25 February 2015 – Heathrow Airport has requested that The Airports Commission change its assessment of the impact of expansion on local communities from ‘adverse’ to ‘neutral’.
Industry News
24 February 2015 – Manchester Airport, in conjunction with the independent living aids company Clos-o-Mat and disability rights campaigner Tony Clough, has launched brand new Changing Places facilities in each of its three terminals. The newly installed facilities have been designed to meet the needs of passengers who have profound and multiple learning disabilities (PMLD) and other passengers with severe disabilities who need the support of at least one carer, providing them with a safe and easy toilet facility to use when travelling through the airport.
25 February 2015 – The Aviation Minister Robert Goodwill has told Parliament that Government was having difficulty finding a solution to the potential competition from Scottish Airports to those in the North West of England as a result of the Scottish Parliament abolishing Air Passenger Duty. Mr Goodwill said that the Government were, ‘pretty much limited by EU competition rules’ as to what they could do to help.
Parliament News
23 February 2015 – The House of Commons Transport Committee enquiry into smaller airports heard evidence from the Aviation Minister Robert Goodwill and Deputy Director of Aviation Policy and Delivery at the Department for Transport, Ben Smith. The topics covered: International hub airports; Air Passenger Duty; Manston Airport; Public Service Obligation ; and airport expansion and smaller airports. A summary of the evidence is presented below, with the full transcript available here.
International hub airports
Opening the session, Committee Chair Louise Ellman asked if the witnesses would make opening statements. In reply, the Minister said that the Government welcomed the contribution of ‘regional international airports’ outside of the South East of England. Pressed by the Chair over the number of small airports in the UK, Mr Goodwill declared that he was comfortable with competition within the sector, adding that he felt the aviation sector had been ‘vibrant’ since the Recession. He claimed that small airports all over the UK had viable plans for bright futures. Those close to larger regional airports like Manchester ‘felt their big brother breathing down their neck’, the Minister said, noting that some airports had been held back by a lack of connectivity to Heathrow and Gatwick. He said that some airlines had exploited distortions in the Air Passenger Duty (APD) market to provide connecting flights from smaller UK airports to European hubs.
Questioned by the Chair over whether smaller airports were viewed as strategic assets for state intervention, Mr Goodwill noted that many Local Enterprise Partnerships were investing in surface access to local airports. The Minister said that airlines such as Flybe had been able to sell slots at Gatwick to allow them to invest in other parts of the country. Smaller airports were seeing their passenger numbers grow and recover since ‘the dark days of the Recession’, he said.
Air Passenger Duty
Labour MP Jim Fitzpatrick asked the Minister to provide an assessment of APD and the impact of devolving the tax to Scotland. In reply, Mr Goodwill said that a Treasury minister would indicate that revenue from APD was necessary to help pay down the deficit. He noted that some viewed it as a distortion of the market, because passengers flying via European hubs paid less APD than those flying via UK hubs. The Treasury had simplified the banding of the tax and provided more help in the form of exemptions for children under the ages of 15, Mr Goodwill said. He said that APD was a tax that formed part of the Government’s ‘long-term economic plan’.
Addressing the subject of devolution to Holyrood, the Minister suggested that some thought should be given to the impact of differing levels of APD in the devolved regions, for example on Newcastle or Bristol Airports. EU competition laws restrained the action that the UK Government could take to address any outstanding issues, apart from the Chancellor of the Exchequer reducing the rate in England to ensure tax competition, Mr Goodwill said. He said that reducing APD for England would not produce any advantage to the regions, owing to the lack of devolution.
Devolving APD would have an impact on airports close to the devolved regions, the Minister said, speculating that some airlines might be tempted to relocate operations to an airport where they would pay a cheaper rate. Pressed further by the Chair, Mr Goodwill argued that any system of tax competition tended to force rates down and was therefore a positive influence.
The Treasury would be considering the matter constantly to review the impact of any devolution, he told the Committee. Labour MP Graham Stringer asked if the economic benefits of abolishing APD would outweigh the costs. Responding, Mr Goodwill said that the Government was aware of the Ernst & Young study pushing that case. He noted that the aviation sector lobbied him on the ‘politically-charged tax’, but said that changing a rate often proved counterproductive.
Mr Stringer asked if any change in APD could be expected in the near future. In reply, Mr Goodwill simply said: ‘Watch this space.’
Manston Airport
Turning to the subject of Manston Airport, Mr Goodwill confirmed that he had met with many of the relevant parties, including Ann Gloag, Conservative MP Sir Roger Gale and RiverOak Investments. He hoped that a rescue deal could be secured for the Airport to allow it to remain open. All possible avenues should be explored. DfT was examining the paperwork considered by Kent County Council before rejecting the Compulsory Purchase Order, the Minister said. He emphasised that the Government was keen to facilitate the restoration of operations at Manston Airport.
The Minister dismissed ‘scare stories’ circulating over the presence of vital equipment, such as radar and landing lights. Some firefighting and passenger equipment had been sold. Mr Stringer inquired as to whether the Government had sufficient powers to intervene in the case of Manston. ‘We have the powers that we need to work with the Civil Aviation Authority’, Mr Goodwill replied, explaining that the UK Government was not minded to intervene in a commercial matter. There were still adequate opportunities to save operations continued at an airport that enjoyed considerable local support, he said.
Questioned by Mr Stringer over suggestions to treat Manston Airport as a strategic national asset, Mr Goodwill said that the availability of emergency and technical expertise would depend on whether the airport could be used as a diversionary runway. The Government had never considered purchasing Manston and setting up operations there, the Minister said, adding that he was committed to working with local authorities on the matter. He speculated that Kent County Council might have been concerned that it would be left running the airport. However, Mr Goodwill admitted that he did not know who currently owned Manston Airport. He did not believe that Mrs Gloag had bought the airport with the intention of ceasing operations and turning it into a development site.
The Minister recalled two conversations with Ms Gloag in which she had claimed that she would attempt to make a go of running an airport with a low-cost operator. He was challenged by both Mr Stringer and the Chair over why his account of Ms Gloag’s remarks differed from Sir Roger Gale’s evidence to the Committee a fortnight before. Sir Roger had alleged that Ms Gloag had never intended to maintain the airport as a going concern. Later in the session, challenged by the Chair over the future of Manston Airport, Mr Goodwill pledged ‘to leave no stone unturned’ to facilitate a continuation of operations at Manston. ‘The Prime Minister has taken a personal interest in Manston’, he said, explaining that both Downing Street and Transport ministers were taking a close interest in developments.
Public Service Obligation
The Chair asked if the Government has chosen to implement Public Service Obligations to maintain air routes to Newquay and Dundee. In reply, Mr Goodwill said that Newquay had provided a vital air connection during works on the rail line at Dawlish. He added that passenger numbers were increasing. Mr Smith added that the two routes had been the only bids submitted that had met the Governments criteria.
Challenged by the Chair over whether the subsidy created distortions in the market, the Minister said that the use of taxpayers’ money was justified in spreading economic uplift in the South East. Mr Smith explained that the UK Government would discuss any applications for funding with the European Commission.
Airport expansion and smaller airports
The Chair asked if expanding airport capacity at either Heathrow or Gatwick would benefit smaller airports. In reply, Mr Goodwill said that the expansion of either airport would create new slots for some regional airports. He added the development of HS2 could also see a fall in short-haul flights within the country, pointing to evidence from Germany to support this. Building a high-speed railway line could free up slots for smaller airports too, the Minister explained. ‘We have a very vibrant aviation sector and that is down to the free market’, Mr Goodwill declared, emphasising that subsidies had not led to success.
Later in the session, questioned by Mr Stringer over the changing nature of the aviation industry, the Minister said that many airlines were using smaller planes that could fly more regularly and better meet the needs of business people. He declared that the sector was experiencing diversity and innovation in different kinds of services. Pressed by Conservative MP Martin Vickers over surface connectivity to airports, Mr Goodwill said that all regional airports had pressed the case to improve it with him.
At the close of the session, Mr Goodwill reiterated his belief that the future of the aviation sector lay with commercial providers, as opposed to the state.
Government News
23 February 2015 – Transport Secretary Patrick McLoughin visited the East Midlands to see how transport investments are aiming to helping to grow the regional economy. He first visited East Midlands Airport, the second largest air freight airport in the UK, to mark the airport’s best ever cargo figures. Last year saw the airport move nearly 310,000 tonnes of cargo – the most in the airport’s 49 year history and 3.6 per cent more than in 2013. Mr McLoughlin also visited the operations centre of delivery company DHL, which is investing £90 million in improvements to their facility at East Midlands Airport.
26 February 2015 – Transport Secretary Patrick McLoughlin visited Lancashire to see how transport improvements are aiming to benefit the region. Mr McLoughlin said, ‘Transport is absolutely key to ensuring our economy thrives. We are investing £800 million in 9 new roads schemes for the north west of England, in addition to the £110 million being spent on this vital new link off the M6. Our £15 billion road investment strategy is the first of its kind and part of this government’s long term economic term plan to help people get about their daily business’. Among the schems he mentioned was further investment on the southern access to Manchester, joining up previously announced schemes to provide better access to the city and to Manchester airport.
27 February 2015 – The Chancellor of the Exchequer has set out his six point long term economic plan for the North East showing what has been delivered, what is underway and what more can be done to build a ‘Northern Powerhouse’ that enables the region to reach its potential as a driving force in the UK. In a speech in Stockton, the Chancellor set out the detailed plan as part of a day long tour of the region. Among the key aims raised by The Chancellor were plans to:
- deliver £4.5 billion investment in transport in the North East, the largest in a generation, including £2.7 billion for the Intercity Express Programme, developing plans for 140mph trains from Newcastle to York which, combined with a potential HS3 scheme, could cut 35 minutes from journeys between Newcastle and Manchester by up to a quarter, improved services and new trains on northern rail routes, and £1 billion for roads in the North East, enabling transformational upgrades to the A1. This also includes a new review into support for regional airports like Newcastle and Durham Tees Valley that could be affected by Air Passenger Duty devolution.
- boost tourism and the rural economy in the North East to attract an additional 150,000 overseas visitors each year with new investment for the iconic Lindisfarne Castle, Hadrian’s Wall and the Captain Cook Museum.
- devolve greater powers to the great cities and counties of the North East – by continuing work with the North East combined authority on devolution proposals and agreeing in principle to a skills devolution with the Tees Valley combined authority once it has been formed
The full transcript of the speech is available here.
House of Commons Questions
23 February 2015
David Hanson (Labour, Delyn): To ask the Secretary of State for the Home Department, what proportion of general aviation private flights were (a) classified as high risk and (b) met by Border Force officials on arrival in the last 12 months.
Mike Penning (Minister of State for Policing, Minister of State for Justice, Hemel Hempstead, Conservative): The information requested in this question is not available for release on the grounds of operational security.
23 February 2015
David Hanson: To ask the Secretary of State for the Home Department, how many general aviation flights were met by border officers in each year since 2010; and how many such flights were classified as high risk.
Mike Penning: The information requested in this question is not available for release on the grounds of operational security.
23 February 2015
David Hanson: To ask the Secretary of State for the Home Department, how many general aviation pre-flight passenger notifications were (a) submitted and (b) not submitted to Border Force officials in each year since 2010.
James Brokenshire (Minister for Security and Immigration, Old Bexley and Sidcup, Conservative): This information is not recorded in a reportable field on Home Office databases. Obtaining such information would therefore require a manual search of records and could only be achieved at a disproportionate cost.
23 February 2015
David Hanson: To ask the Secretary of State for the Home Department, how many flights on the Civil Aviation Tracking System were found not to have submitted general aviation reports after Border Force cross-checking in each year since 2010.
James Brokenshire: This information is not recorded in a reportable field on Home Office databases. Obtaining such information would therefore require a manual search of records and could only be achieved at a disproportionate cost.
McGovern, A – Estimate of the change to the cost of travelling
23 February 2015
Alison McGovern (Wirral South, Labour): To ask the Secretary of State for Transport, what estimate he has made of the change in real terms of the cost of travelling by (a) private car, (b) bus, (c) train and (d) domestic air flight between (i) 2000 and 2010 and (ii) 2010 and 2014.
Mr Robert Goodwill (Parliamentary Under-Secretary of State for Transport, Scarborough and Whitby, Conservative): The Department for Transport published statistics on travel costs, based on data from the Office for National Statistics (ONS), in the Transport Statistics Great Britain compendium. Data from the independent ONS suggests that:
(i) Between 2000 and 2010 the real cost of motoring, including the purchase of a vehicle, declined by 8%, bus and coach fares increased by 20% and rail fares increased by 15% in real terms.
(ii) Between 2010 and 2014 the real cost of motoring, including the purchase of a vehicle, decreased by 5%, bus and coach fares increased by 2% and rail fares increased by 6% in real terms.
(iii) The costs of travelling by air are not available from ONS data. However information is available based on fare data from the Civil Aviation Authority. The real cost of the average UK one-way air fare, including taxes and charges, covering domestic flights from 2000 to 2010 declined by 41% and from 2010 to 2013 declined by 4%, reflecting a range of factors including increased competition between airlines. Estimates for 2014 are not yet available.
25 February 2015
Mike Kane (Wythenshawe and Sale East, Labour): To ask Mr Chancellor of the Exchequer, what assessment was undertaken of the effect of a zero-rate air passenger duty in Scotland on airports in Northern England before taking the decision to devolve the setting of that duty.
Priti Patel (Exchequer Secretary to the Treasury, Witham, Conservative): The devolution of APD to Scotland raises the potential for reel pressure to be put on regional airports – particularly in the North East but also on Manchester and others. The Chancellor has been clear we will work together cross parties to ensure that we minimise the impact of any decision by Scotland to reduce ADP, so that we protect English regional airports.
25 February 2015
Mike Kane: To ask Mr Chancellor of the Exchequer, how much revenue was accrued to the Exchequer in air passenger duty from Manchester Airport in each of the last five years.
Priti Patel: The devolution of APD to Scotland raises the potential for reel pressure to be put on regional airports – particularly in the North East but also on Manchester and others. The Chancellor has been clear we will work together cross parties to ensure that we minimise the impact of any decision by Scotland to reduce ADP, so that we protect English regional airports.
25 February 2015
Mike Kane: To ask Mr Chancellor of the Exchequer, what estimate his Department has made of the potential cost to Manchester Airport of a zero-rate air passenger duty for Scotland.
Priti Patel: The devolution of APD to Scotland raises the potential for reel pressure to be put on regional airports – particularly in the North East but also on Manchester and others. The Chancellor has been clear we will work together cross parties to ensure that we minimise the impact of any decision by Scotland.
26 February 2015
Zac Goldsmith (Richmond Park, Conservative): To ask the Secretary of State for Transport, what recruitment process was used when hiring Simon Baugh, Group Director of Communications for his Department; and what role Mr Baugh will have in his Department after the Airports Commission has made its recommendation on airport expansion in the South East.
Claire Perry (Parliamentary Under-Secretary of State for Transport, Devizes, Conservative): The recruitment process for this role followed the legal principle that a person’s selection must be on merit on the basis of fair and open competition as set out in the Constitutional Reform and Governance Act 2010. The process was overseen at all stages by a Civil Service Commissioner and managed by executive search firm Odgers Berndston. The role was advertised nationally in September 2014, and the process that then followed comprised longlisting, shortlisting, psychometric testing and final interviews by a panel. The panel was chaired by the Civil Service Commissioner and otherwise comprised Philip Rutnam, Permanent Secretary of the Department for Transport; Alex Aitken, Executive Director of Government Communications, Cabinet Office; David Prout, Director General, High Speed Rail, Department for Transport; and Alison Rumsey, Group HR Director, Department for Transport. Prior to final panel interviews the shortlisted candidates met the Permanent Secretary and the Secretary of State for conversations in which the candidates had the opportunity to ask questions about the Department. The meetings with the Secretary of State were observed by representatives from the Civil Service Commissioner’s office in line with Civil Service Commission’s Recruitment Principles. As Mr Baugh was previously employed by Heathrow Airport Ltd, he will not be involved in advising Ministers on issues relating to the work of the Airports Commission for the 6 months following his appointment, which starts on 30 March 2015.
House of Lords Questions
25 February 2015
Lord Kilclooney (Ulster Unionist Party peer): To ask Her Majesty’s Government, in the light of the proposed acquisition of Aer Lingus by International Consolidated Airlines, whether they have made representations to safeguard the slots at Heathrow airport for flights by British Airways and Aer Lingus to Belfast City; and whether they have made representations to safeguard the slots at Gatwick airport for flights to Belfast City.
Baroness Kramer (Minister of State for Transport, Liberal Democrat Peer): The Government does not currently consider that there is a risk of air services between Belfast and London being lost. The routes remain commercially viable, with nearly two million passengers carried on almost 19,000 flights between the two Belfast airports and the five main London airports in 2013. EU Regulations govern the allocation, transfer and exchange of slots at Heathrow, Gatwick and other slot co-ordinated airports in the UK. The purpose of the EU Slot Regulations is to support the operation of a single market for aviation by seeking to ensure airlines have fair and equal access to airports across the EU through the application of independent, non-discriminatory and transparent slot allocation procedures. The Regulations stipulate that the actual process of slot allocation is undertaken entirely independently of the Government, the UK Civil Aviation Authority or other parties. The Government has therefore made no representations to safeguard Heathrow or Gatwick slots for air services from Belfast. In circumstances where vital air connectivity would be lost, EU law does provide some limited scope to protect regional air services by allowing Member States to establish public service obligations (PSOs) to protect air services to airports serving a peripheral or development region, or on thin routes considered vital for a region’s economic and social development. Where a PSO has been approved, this would permit slots to be ring-fenced at a London airport. There is no other mechanism for the Government to intervene in the allocation of slots at London airports. As part of the 2013 Spending Round the Chief Secretary to the Treasury announced that £20million would be made available over the two years 2014-15 and 2015-16 through a Regional Air Connectivity Fund to maintain regional air access to London through the establishment of PSOs where there was the probability that an existing air service would be lost. The 2014 Budget announced a doubling of the Regional Air Connectivity Fund to maintain existing connectivity to London.
Media News
23 February 2015 – The Guardian newspaper have published a report on how they believe the 2015 UK election will affect UK air passengers.
23 February 2015 – A patent row has emerged over the The Heathrow Hub plans for expanding Heathrow Aiport, currently being considered by the Airports Commission. American airline captain Daniel Gellert claims the plan, which includes stretching the existing north runway and dividing it with a buffer zone to allow simultaneous take-off and landing on both stretches, infringes a patent lodged in 2008, reports the Sunday Times. Mr Gellert argues his ‘safe runway aircraft arrival and departure system using split runway design’ was granted a European patent in October 2011. Co-sponsor of the scheme Mr Jock Lowe insists his plans for the Heathrow Hub are original and that he was unaware of Gellert’s plan.
24 February 2015 – The publication Business and Commercial Aviation have published a report entitled ‘Managing helicopter noise keey to keeping access to urban areas.
26 February 2015 – The North West Air Connectivity Roundtable featuring business and political leaders from the area will meet at the Tate Liverpool on March 14 to discuss how airports expansion in the South East of England could be used to expand the city’s connectivity with London and international markets. The event is being coordinated by pro-airports expansion group, ‘Let Britain Fly’, in partnership with the think tank ‘CentreForum’.
26 February 2015 – Member of Parliament for Twickenham Vince Cable will be among the speakers who will address a rally against a third runway at Heathrow Airport on March 3 in central London. The event is being coordinated by campaign group Hacan. Also attending the event will be Leader of the Green Party Natalie Bennett, Former Transport Minister Steve Norris and the Chief Executives of Greenpeace and Friends of the Earth.
SASIG ParliamentaryNews Bulletin 23 February – 28 February
SASIG RegionalIndustryNews Bulletin 23 February – 28 February
The Parliamentary information in this Bulletin is sourced from De Havilland Information Services plc .