Editorial
The unexpected election result was the big new story at the beginning of June, and most of the remainder of the month has been taken up with the ramifications (e.g. the DUP deal, new ministerial appointments including Lord Callanan replacing Lord Ahmad) and then the start of Brexit negotiations. The result is a lack of clarity about the Government position on Aviation in relation to Brexit and its timetable for moving forward broader Airports policy.
Turning to SASIG news, the Technical Working Groups have been suspended until the autumn pending a Government announcement on the Aviation Strategy. However, SASIG did respond to the Government NPS and Airspace and Noise consultations which can be seen on our website here and here and also to the CAA’s consultation on the Airspace Change Guidance document.
The next big external event is 14th September in London where there is an interesting-looking conference on the Aviation Strategy – Westminster Energy, Environment & Transport Forum
Chris Cain,
Head of Secretariat
Monthly Highlights
8th June – The General Election held resulted in a hung Parliament with no party having an overall majority. The Conservatives entered into talks to build a confidence and supply agreement with the DUP.
14th June – Lord Callanan was appointed Parliamentary Under Secretary of State for the Department for Transport with responsibility for Aviation.
26th June – A deal for the DUP party to support a Conservative Government was agreed and signed. This includes a £1billion financial package and a commitment to examine the effect of APD on Tourism on Northern Ireland.
28th June – Lord Callanan discussed Brexit and the future of aviation at the Association of British Travel Agents (ABTA) Travel Matters conference. Read his full speech here.
Editor’s Forward Look
Other consultations, anticipated or ongoing, can be found on the Milestone Timetable accessible via this link.
This list gathers European Commission public consultations in one place and replaces the former ‘Your voice in Europe’ website: http://ec.europa.eu/info/consultations_en
Contents
- Meetings and Conferences
- Parliamentary and Government News
- National and Regional News
- Other Aviation Industry News
- SASIG Library Additions
SASIG Meetings
– 6th July: SASIG AGM/Full meeting: Venue: CIHT, London.
– 11th October: Airports, Cities & Economic Growth Technical Working Group
– 1st November: Surface Access Technical Working Group and Environment, Planning and Airspace Technical Working Group
External Meetings and Conferences
– 4th-6th July 2017: LGA Annual Conference & Exhibition: International Convention Centre, Birmingham. This is the local Government event of the year.
– 14th September 2017: Westminster Energy, Environment & Transport Forum– Central London. Title: Developing a UK Aviation Strategy: Heathrow Implementation and the future of airport capacity across the UK.
– 23rd-26th September 2017: World Routes 2017, Barcelona. The 23rd World Route Development Forum.
– 13th-14th November 2017: 6th European Aviation Conference: Dublin City University, Ireland
– 6th-7th December 2017: AEI: 2017: Airport Expansion and Improvements: Hosted and Sponsored by Heathrow Airport, London Heathrow Marriott Hotel.
Parliamentary Questions
Q.1. Question (HL112) asked by Lord Balfe on 21st June 2017: “To ask Her Majesty’s Government what measures they are taking to obviate danger to civil aircraft posted by remotely piloted aircraft as required by the International Civil Aviation Organization as communicated to contracting states in letter AN13/55-17/38”.
A. Lord Callanan on 28th June 2017: “The Department for Transport and the Civil Aviation Authority (CAA) work with a wide range of partners, including the British Airline Pilots’ Association and the Police, to ensure our understanding of potential hazards to aircraft remains up to date. Work is underway to better understand the risk posed by drones to commercial aircraft and ensure that the regulatory and industry responses remain fit for purpose. The Government has conducted a consultation to determine if further measures are needed in this area and will be responding to this soon with its intended future actions. We have also been working closely with the CAA and industry to adapt and strengthen existing measures and mitigations as drone use and the related technology evolves. This has led to a safety awareness and education campaign aimed at leisure drone users, the launch of a new www.dronesafe.uk website, and a free new app ‘Drone Assist’ by NATS, which shows users where they should and should not fly in their locality”.
Q.2. Question (HL65) asked by Baroness Randerson on 21st June 2017: “To ask Her Majesty’s Government when the Secretary of State for Transport last met representatives of Airbus”.
A. Lord Callanan on 28th June 2017: “The Secretary of State last met representatives of Airbus on 2nd October 2016”.
Q.3. Question (911) asked by Ian Murray (Edinburgh South) on 23rd June 2017: “To ask the Secretary of State for Scotland, what assessment he has made of the effect on the (a) footfall at and (b) revenue of UK airports of the reduction of Air Passenger Duty in Scotland”.
A. Mel Stride on 28th June 2017: “The Scottish Government are yet to announce rates for their new Air Departure Tax (ADT). The UK government will closely monitor any effects of rate changes in Scotland on UK airports, and as announced at Autumn Statement 2016, the government has committed to reviewing ways of supporting English airports from any effects of Air Passenger Duty devolution once the UK has withdrawn from the European Union”.
Q.4. Question (423) asked by Kate Hollern (Blackburn) on 21st June 2017: “To ask the Secretary of State for Transport, if he will bring forward legislative proposals to support regional airports”.
A. John Hayes on 29th June 2017: “The Government is committed to developing a new Aviation Strategy and we will be setting out our proposed approach in due course”.
Q.5. Question (1235) asked by Catherine McKinnell (Newcastle upon Tyne North) on 26th June 2017: “To ask Mr Chancellor of the Exchequer, what recent assessment he has made of the effect on England’s regional airports of devolving air passenger duty to the Scottish Government”.
A. Mel Stride on 28th June 2017: “The Scottish Government are yet to announce rates for their new Air Departure Tax (ADT). The UK government will closely monitor any effects of rate changes in Scotland on UK airports, and as announced at Autumn Statement 2016, the government has committed to reviewing ways of supporting English airports from any effects of Air Passenger Duty devolution once the UK has withdrawn from the European Union”.
Q.6. Question (HL139) asked by Lord Steel of Aikwood on 22nd June 2017: “Her Majesty’s Government what assessment they have made of the impact on consumers of the cost of domestic flights on routes on which airlines have a monopoly or near monopoly; and whether they intend to investigate commercial practices whereby administrative charges are imposed on consumers who wish to change their flight details after having purchased fully flexible tickets”.
A. Lord Callanan on 28th June 2017: “The Government is not able to get involved in regulating the level of fares set by airlines operating in the UK, or abroad. Since the inception of the Single European Aviation market, any EU airline may establish the fare structure it wishes. The Government has made no assessment on the impact of the costs of domestic flights, but has focused on ensuring connectivity to the regions. However, the Civil Aviation Authority (CAA) has started work on unfair contract terms with the airlines, in accordance with the CAA’s Strategic Plan 2016-2021. The work will include a review of the airlines’ terms and conditions with the aim of ensuring the rights and obligations of the consumers and businesses are fair and balanced and consumers are not being penalised by unfair contract terms”.
Transport Questions: House of Lords: 26th June 2017
Lord Spicer (Con): “To ask Her Majesty’s Government whether they intend to publish a strategy for aviation”.
The Parliamentary Under-Secretary of State, Department for Transport (Lord Callanan) (Con): “My Lords, the Government are committed to developing a new aviation strategy, and we will set out our proposed approach shortly. This will be an ambitious programme of work and we will consult widely, leading to the publication of an aviation strategy White Paper at the end of 2018”.
Lord Spicer: “I congratulate my noble friend on his new appointment. Does he think that it will bring out the many Members of this House and of the other place who want above all to know the date by which we will start to build a new runway at Heathrow? That date should, I think, be before Brexit takes off, as it were. Can my noble friend give us his early thoughts on this matter?”
Lord Callanan: “I thank my noble friend for his kind words. The Government remain committed to airport expansion in the south-east of England through our preferred scheme at Heathrow. We must remember that our manifesto contained a commitment to continue the programme of expansion at Heathrow. We are getting on with the job of delivering critical infrastructure in the national interest. A consultation on the draft Airports National Policy Statement closed on 25 May and the department is currently reviewing the tens of thousands of responses received. Once the analysis is completed and the Government have considered the responses, I assure noble Lords that we will set out our next steps”.
Lord Berkeley (Lab): “Once the strategy is published, will the Minister quote the costs to the public purse of the surface access? My understanding is that those costs for the expansion at Heathrow will be even higher than the cost of the first phase of HS2. Would it not be better to expand our regional airports and to do less in the south-east?”
Lord Callanan: “The costs of the surface access to support the new development at Heathrow, if indeed it proceeds, will be borne by Heathrow Airport itself. Of course we also remain committed to expanding regional airports, a subject dear to my heart, and we will set out our approach in the aviation strategy White Paper that I mentioned earlier”.
Lord Naseby (Con): “Since aviation policy must cover drones, is the Minister aware that the Government have been consulting for the past two years, while other countries such as the USA have legislated? Is it not time that we actually took some action so that all drones that are either bought or are already around are registered, with strict penalties for those who abuse them?”
Lord Callanan: “My noble friend makes a powerful point. As he says, we are consulting on the issue at the moment. There have been a number of well-publicised incidents of drones causing a hazard both to members of the public and to aircraft, and we will set out appropriate steps shortly”.
Baroness Randerson (LD): “Given the Government’s repeated failure to come up with a plan to improve air quality that is consistent with EU standards, does the Minister accept that the expansion of Heathrow poses a massive additional challenge for which no satisfactory solution has been provided?”
Lord Callanan: “As the noble Baroness is aware, air quality is a national issue, and we take it extremely seriously. The final plan on air quality is due to be published on 31 July. If the Heathrow Airport decision proceeds, the impact on air quality will be taken fully into account. Moreover, Heathrow Airport has committed to moving passengers from their cars and on to public transport and has recently committed to no overall increase in car movements to and from Heathrow in the event of a third runway proceeding”.
Lord Rosser (Lab): “I add my welcome to the Minister in his new position and I express my best wishes to his predecessor, the noble Lord, Lord Ahmad of Wimbledon, in his new role. I suspect that he will find himself spending more time inside an aircraft as a Foreign Office Minister than he did as Aviation Minister. We have had a statement this morning about the financial support the UK Government are prepared to make available to Northern Ireland following discussions between the Conservative Party and the Democratic Unionist Party. It says:“A detailed consultative report will be commissioned into the impact of VAT and APD—air passenger duty—“on tourism in Northern Ireland to recommend how best to build upon the growing success of that sector”.Are similar consultative reports being commissioned into the impact of air passenger duty on tourism in other parts of the United Kingdom? If not, why not?”
Lord Callanan: “As someone who uses regional airports regularly, the issue of air passenger duty is, of course, high on my agenda. I am sure the noble Lord will understand that, as a Minister only a couple of weeks into his appointment, were I to start rewriting the Chancellor’s Budget proposals at this stage I would not last very long”.
Lord Trefgarne (Con): “My Lords, when the time comes to repatriate the regulation of civil aviation, will that be vested in a revitalised Civil Aviation Authority, as in the past, or left to the European Aerospace Agency?”
Lord Callanan: “The whole issue of Brexit and how liberalised air transport will go forward will be the subject of negotiation. We want to ensure seamless access to European air transport matters, and I am sure the European aviation industry will want to access UK policy, too”.
Lord West of Spithead (Lab): “My Lords, talking of aircraft, the Minister will be aware that the aircraft carrier HMS “Queen Elizabeth” is, as we speak, negotiating out of the fitting-out basin in Rosyth. Will he pass his best wishes to the ship’s company of that great ship, which for 50 years will ensure the security of our nation?”
Lord Callanan: “Vast though my responsibilities are, they do not yet include aircraft carriers”.
Lord Popat (Con): “My Lords, I welcome the fact that the Government’s strategy on new aviation policy is coming very soon, but I guess we are 20 years behind. I say this as the Prime Minister’s trade envoy to Rwanda and Uganda. We recently sold two airplanes to the Rwandan Government, and for the first time, some four weeks ago, there was a direct flight from Kigali to Gatwick. We managed to get only three slots. We wanted seven slots. No slots were available at Heathrow either. Post-Brexit, for us to be a genuinely outward-looking country, we need direct flights and we need more slots. Most African countries, which are a growth area, need flights. The Ugandan Government want one, Tanzania wants one, Zambia wants one, but there are no slots available at Heathrow or Gatwick. Can we speed up the process of the third runway, and maybe even a second runway at Gatwick?”
Lord Callanan: “I take my noble friend’s concerns on board. Many airlines want access to the south-east of England. As we proceed with Brexit, aviation will be a critical component of our engagement with the rest of the world. More people will need to visit this country; more people will need to travel abroad for a new UK sector. Of course, the expansion of Heathrow, if it proceeds, will provide extra slots and we will look at the context of slots at regional airports in the aviation strategy”.
Baroness Ludford (LD): “My Lords, can the Minister tell us whether Zac Goldsmith will resign his seat if the expansion of Heathrow goes ahead?”
Lord Callanan: “I am sure the noble Baroness will want to ask Zac Goldsmith himself that question”.
Transport Questions: House of Lords – 29th June 2017
Open Skies Agreement (Membership) Bill
Summary: A Bill to promote continued membership of the Open Skies Agreement. The Bill was introduced by Baroness Randerson, read a first time and ordered to be printed.
Government News
8th June – The country held a snap General Election which resulted in a hung Parliament. Prime Minister Theresa May lost her majority in Parliament and entered into talks to build a confidence and supply agreement with the DUP.
14th June – Lord Callanan was appointed Parliamentary Under Secretary of State for the Department for Transport and will be responsible for Aviation.
26th June – A deal for the DUP party to support a Conservative Government was agreed and signed.
2nd June – Leeds Bradford Airport gets new service to Dusseldorf. Flybe will operate the service six times a week during the winter schedule.
2nd June – Gatwick achieves carbon neutral status from ACI Europe. It is the first London airport to do so.
4th June – Heathrow is considering ‘viaducts’ over the M25. It’s looking at plans to construct its 3rd runway across a series of “viaducts” that would cross above the M25.
8th June – New fast track security channel opens at Bristol Airport. It forms part of ongoing enhancements to passenger facilities at the airport.
9th June – Birmingham Airport CEO is to step down. This will be effective from 12th July.
12th June – Record breaking May at Stansted. There was an increase of 7% over the same month last year.
12th June – Manchester Airport reports 38th consecutive month of growth last month. It was the airport’s busiest May on record.
13th June – Southampton Airport launches new airline. Powdair has launched ticket sales through its website with a winter schedule that flies to Sion Airport in Switzerland.
13th June – Newcastle Airport makes fresh Government plea on APD. It is urging the government to announce specific measures to support English regional airports from the impacts of APD devolution to Scotland.
15th June – Doncaster Sheffield Airport enterprise zone site purchased. A site at Aero Centre Yorkshire, which sits within the airport’s enterprise zone, has been sold for £4.5m.
15th June – Another record month for Birmingham Airport. Over 1.2m people travelled through its doors in May – 196,000 more than in May 2016.
15th June – Newcastle Airport signs up to entrepreneur forum deal. The airport has signed up to be a business support partner of the Entrepreneurs’ Forum.
16th June – Heathrow is helping small to medium businesses (SMEs). Airport joins Department for International Trade to award 20 SMEs with grants to fund trade missions, trade shows and foreign market.
16th June – Inverness Airport wins Scottish Airport of the Year award.
16th June – Norwich Airport cyber-hacker jailed. He hacked into the website of Norwich airport in 2015 and the airport said the breach cost it up to £40,000 to fix.
17th June – Tory MPs say Heathrow runway ‘not going to happen’ following hung Parliament. As many as 40 of the PM’s own MPs are against the building of a 3rd runway.
19th June – Survey shows Southend is the 2nd least stressful airport in the UK. Birmingham led the poll by kiwi.com and Heathrow was voted the most stressful UK airport.
21st June – Belfast Airport backs efforts to get rid of APD. Airport MD said: “APD is restricting growth, choking economic development and holding back Northern Ireland tourism potential”.
21st June – Doncaster Sheffield Airport regains title of UK’s fastest growing airport. Latest CAA figures show the airport has seen a 43.1% growth with rolling passenger numbers of 1.3m between April 1 2016 and March 31 2017.
21st June – The Mayor of London publishes his draft Transport strategy for consultation. It shows he is not in favour of the new Heathrow runway – see P.248 “Focus on: The Unacceptable Impact of Expanding Heathrow”. The consultation closes on 2nd October 2017 and can be seen here.
21st June – Rail link to Leeds Bradford Airport moves closer. Work on an outline business case for building a £25m railway station serving the airport, has been given the go-ahead.
22nd June – Bristol Airport opens new immigration hall. New facility as ten of the latest ePassport gates and was opened by the UK Immigration Minister, Brandon Lewis.
23rd June – Green light for Luton Airport rail link. Plans for a £200m rail link between Luton Airport and the Bedfordshire town’s Parkway train station have been given the go-ahead.
23rd June – Birmingham Airport joins up to car share scheme. Four of Solihull’s biggest employers including the airport, have joined forces to establish a staff car sharing scheme as part of an ongoing commitment to sustainability.
23rd June – Liverpool John Lennon Airport reveals ambitions for next 30 years. As part of a four-week public consultation which starts next week, bosses are to unveil ambitious plans.
23rd June – Monarch Airlines launches 4 new routes from Birmingham. The airline will now fly to Valencia in Spain, Split in Croatia, Naples in Italy and Rhodes in Greece.
23rd June – Wizz Air opens first UK base at Luton Airport. It’s calling it a ‘major investment’ and it’s also increasing seat numbers on Luton routes 13 % to 6.3 million this year.
26th June – Delay over Heathrow must end says Head of National Infrastructure Commission. Lord Adonis says Brexit and the hung parliament should not hold up crucial projects such as the expansion of Heathrow airport.
26th June – Work begins on 2nd phase linking Great Yorkshire Way to Doncaster Sheffield Airport. This will complete the direct link from the motorway network to the airport.
29th June – Gatwick reaches over 45 million passengers per year milestone. The airport today published its results for the year ended 31 March 2017.
29th June – Stansted announces consultation events. These will be to gather the views of local residents to help shape its plans to make best use of existing runway capacity.
2nd June – Belfast City Airport will look to expand following takeover. 3i, an international investment fund, now own the airport, which is their first one, in a £700 million deal.
5th June – British Airways set for more cabin crew strikes. Union Unite has announced members of BA’s “mixed fleet” crew will walk out from June 16 to June 19 in a pay dispute.
11th June – Around 42% of MPs oppose 3rd runway since the Election. The hung parliament will make it harder to force through contentious and unpopular polices like the runway.
12th June – Airbus say production could leave Britain unless Brexit demands are met. It insists Brexit must allow staff from all over the world to enter Britain easily, ensure that parts are exempt from trade tariffs and ensure certain regulatory standards are maintained.
13th June – BALPA calls for swift Government action on aviation issues. The pilots’ union says PM must now turn her attention to decisions on airport expansion and drones.
14th June – Study indicates aircraft noise increases risk of heart disease. The study was published in the online journal BMJ Occupational & Environmental Medicine.
15th June – Review into Ireland’s airport capacity to begin. The review, announced last year, concerns the long-term development of Ireland’s state airports through to 2050.
15th June – Easyjet boss calls for ‘pragmatic’ Brexit. The airline’s C.E. has urged the government to consider the needs of business to ensure the best possible deal.
15th June – Easyjet’s fuel efficient aircraft ready for take-off. The budget airline is preparing for this week’s launch of a new aircraft which could deliver emissions reduction and fuel efficiency savings of up to 15% compared to existing generation models.
15th June – IT meltdown has cost British Airways £80m so far. At the annual meeting of BA’s parent company, IAG, boss Willie Walsh gave the first assessment of the gross cost.
15th June – Leaving EU without a deal will be worst-case scenario for airlines. CE of aerospace trade body, ADS Group, says no deal could lead to flight chaos.
16th June – MPs want assurances the Government’s deal with DUP won’t harm the two North-east airports. They’re concerned they could suffer as a result of the DUP’s policy of cutting taxes at airports in Northern Ireland.
18th June – Plans to axe aviation tax is a give-away to wealthy Scots say campaigners. About 70% of the country’s richest households will benefit from the Scottish Government’s plans, compared to 30% of the poorest, they claim.
19th June – Irish aviation start-up offers flights from Waterford. Ireland’s newest airline, Aer Southeast will fly from Waterford to Luton, Manchester and Birmingham from July 24th.
20th June – Airlines UK backs ADT move. Passing of the final stage and approval of the Air Departure Tax Bill in the Scottish Parliament was welcomed in a statement from the industry body that represents UK carriers.
23rd June – US subscription airlines launches in the UK. Surf Air is offering unlimited private flights between London and Europe for a monthly subscription fee.
28th June – Hannover is chosen for Routes Europe 2019 aviation forum. It’s to be hosted by Hannover Airport with the support of the Lower Saxony state government and Hannover City Council.
28th June – Lord Callanan, the new Parliamentary Under Secretary of State for the Department for Transport, discussed Brexit and the future of aviation at the Association of British Travel Agents (ABTA) Travel Matters conference. Read his full speech here.
13th June – ACI Europe Airport Industry Connectivity Report 2017 released at the 27th ACI Europe General Assembly, Congress & Exhibition in Paris, is on the website here. Additional appendices for this report can also be seen here.