Editor’s Highlights
June was a significant month for aviation policy as the Government both published, and then secured approval for, its Airports National Policy Statement: New runway capacity and infrastructure at airports in the South East of England with a large majority in Parliament. This in effect grants outline planning approval for a third runway at Heathrow, but there remains a long way to go and many obstacles to overcome – including potential judicial reviews, the DCO process and a new regulatory settlement. The Committee on Climate Change 2018 Progress report also indicated a key action required by the Government by the first half of 2019 is to “Publish a plan to limit UK aviation emissions to the level assumed when the fifth carbon budget was set (i.e. around 2005 levels in 2050, implying around a 60% potential increase in demand) … ”
In other news: Luton BC has commenced DCO procedures to expand capacity at Luton Airport to 36-38 mppa by initiating a first stage informal consultation on options; a decision remains pending on MAG’s planning application to grow Stansted to 43.5mppa; Ryanair announced the opening of a new base at Southend; and Airbus intervened in the Brexit debate by threatening to leave the UK if there is not a suitable agreement between the UK and EU that allows just-in-time and tariff free movement of parts between sites in the UK and Europe to continue. Looking forward a Green Paper on a long term aviation strategy for the whole of the UK is promised in October and a White Paper in spring next year.
Events, Meetings and Conferences
– 16th-22nd July 2018: Farnborough International Air Show: Farnborough, Hampshire.
– 18th October 2018: Westminster Energy, Environment & Transport Forum: The future of UK airport capacity in the South East. Central London.
– 14th-15th November 2018: Accelerate Aviation 2018: Hilton Tower Bridge, Tooley Street, London. Defining the future of the aviation industry.
Parliamentary and Government News
5th June – Government publishes National Airport Policy. Details can be seen here.
5th June – Secretary of State for Transport made a statement to Parliament about the proposed expansion of Heathrow Airport. Details can be seen on our website and here.
5th June – DfT publishes ‘Addendum to the Updated Appraisal Report Airport Capacity in the South East’. It can be seen on our website and here.
6th June – A departmental minute was laid before Parliament relating to a blight agreement between Secretary of State for Transport, and Heathrow Airport Ltd. It can be read here.
12th June – Aviation Minister Baroness Sugg gave a keynote speech to the British-Irish Airports Expo. The speech can be seen here.
21st June – A series of policy papers were published by the Government regarding the proposed Heathrow third runway. Further details can be seen here.
22nd June – International Trade Minister Greg Hands announces his resignation from government to oppose the Heathrow 3rd runway. Details can be seen here.
25th June – Government agrees final proposal for Heathrow expansion. Details are here.
Transport Questions: House of Commons:
5th June – Airports National Policy Statement
A statement from the Secretary of State for Transport about proposed expansion of Heathrow and the ensuing debate can be seen here.
7th June – Heathrow
An urgent question was asked of the Secretary of State for Transport to see if he would make a statement on the potential taxpayer liabilities that the Government have entered into in their statement of principles agreement with Heathrow Airport Ltd. The ensuing debate can be seen here.
25th June – National Policy Statement: Airports
The Secretary of State for Transport asked the House to approve the National Policy Statement on New runway capacity and infrastructure at airports in the South East of England, which was laid before this House on 5 June 2018. The ensuing debate is here.
Transport Questions: House of Lords
6th June – Airports National Policy Statement
The Parliamentary Under-Secretary of State for Transport, Baroness Sugg repeated the statement made on 5th June by the Secretary of State for Transport, Chris Grayling in the Commons. It and the following debate can be seen here.
7th June – Heathrow
Baroness Sugg repeated the answer given to the urgent question asked on 5th June to the Secretary of State for Transport in the Commons regarding Heathrow . It and the following debate can be seen here.
26th June – Airports: Border Force
The Government was asked what steps they intend to take to (1) improve the performance of the Border Force at UK airports, and (2) reduce delays in clearing EEA and non-EEA passengers through immigration. Details of the debate may be seen here. Another debate was held regarding what assessment Government have made of the risk assessment published by Airbus of the impact on its business of the UK leaving the EU without a proper agreement and adequate transition time. That debate can be seen here.
Parliamentary Questions:
Question (HL8341) asked by Lord Berkeley on 5th June 2018: “To ask Her Majesty’s Government what property compensation estimate has been prepared for the proposed Heathrow third runway extension; and what is its scope and total value”.
A. Baroness Sugg on 8th June 2018: “Residential property costs for Heathrow Airport Ltd’s publicly committed property compensation scheme for those affected by expansion have been estimated at £550m, to be financed by Heathrow and not the taxpayer. This estimate covers both the compulsory purchase zone and the wider property zone and for eligible properties this includes a 25% home loss payment, as well as the Stamp Duty Land Tax, moving costs and legal fees associated with buying a new home”.
Question (151177) asked by Andy McDonald (Middlesborough) on 7th June 2018: “To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to activate section 30 of the Climate Change Act 2008 to include emissions from (a) international aviation and (b) shipping the UK carbon budget”.
A. Claire Perry on 12th June 2018: “While the UK’s 2050 target and carbon budgets currently exclude emissions from international aviation and international shipping, the Committee on Climate Change has advised on planning for these emissions and their assumptions are incorporated into the Government’s 2050 pathways as set out in the Clean Growth Strategy. The Government is continuing to work to decarbonise the aviation and shipping sectors, both through international action, such as standards and offsetting schemes, and domestically, for example through support for sustainable alternative fuels, improved efficiency and new technologies”.
Question (151179) asked by Andy McDonald (Middlesborough) on 7th June 2018: “To ask the Secretary of State for Transport, what assessment he has made of the potential change in the level of total air traffic movements at (a) Heathrow Airport, (b) London airports, (c) Manchester Airport, (d) Newcastle Airport, (e) Glasgow Airport and (f) throughout the UK as a result of a third runway at Heathrow Airport”
A. Jessie Norman on 12th June 2018: “The Government has fully assessed the impact of expansion in the South East on the UK’s connectivity. As set out in Chapter 3 of the Updated Appraisal Report. The Government is clear that a Northwest Runway at Heathrow will help to secure the UK’s status as a global aviation hub, while regional airports will continue to develop their point-to-point networks. This conclusion is supported by the analysis which shows that passenger numbers and international flights at airports outside London are expected to increase by 80% and 71% respectively between 2016 and 2050 with a third runway at Heathrow. In addition, passengers from all across the UK are expected to use the connections made available at an expanded Heathrow, with nearly 6 million additional trips from passengers outside London and the South East being made via the airport in 2040.
The expected number of Air Transport Movements at each of the listed airports, both with and without expansion, is given in Annex E (Tables 66 & 67) of the UK Aviation Forecasts 2017 report.
http://www.caa.co.uk/Commercial-industry/Airspace/Airspace-change/Decisions-from-2018/London-Luton-Departure-Procedures/
At present, the expectation is that the airport might consult on this proposal next summer”.
Question (151074) asked by John Grogan (Keighley) on 7th June 2018: “To ask the Secretary of State for Transport, if he will place in the Library a copy of the legal advice provided to his Department on the provision of subsidies for regional air connections from UK airports to Heathrow airport”.
A. Jesse Norman on 12th June 2018: “The current regulation is clear that subsidies can be provided under Public Service Obligations (PSOs). The Government already subsidises three PSO routes to London airports (Newquay to Gatwick; Dundee to Stansted; and Londonderry to Stansted). The Department has taken further legal advice on the Government’s interpretation of existing PSO regulations as part of the development of policy to improve connections between Heathrow and the regions and nations of the UK should expansion go ahead. This will be central to achieving the Secretary of State’s ambition for up to 15% of slots from a new runway being used for domestic routes. The Government’s position on domestic connectivity will be set out in a Green Paper on the Aviation Strategy this autumn and while Government does not publish legal advice, other relevant documents will be published alongside this consultation as appropriate”.
Question (150750) asked by Wera Hobhouse (Bath) on 6th June 2018: “To ask the Secretary of State for Transport, what his Department’s plans are for improving surface transport access to airports; and how such improvements will be funded”.
A. Jesse Norman on 11th June 2018: “The Government’s position on surface access for airports is that developers should pay the costs of upgrading or enhancing road, rail or other transport networks or services where there is a need to cope with additional passengers travelling to and from expanded or growing airports. Where the scheme has a wider range of beneficiaries, the Government will consider, along with other relevant stakeholders, the need for additional public funding on a case-by-case basis. Through the Aviation Strategy the government is reviewing the effectiveness of the current policy and guidance, and considering how co-ordination between government processes for transport access improvements and airport plans may be improved”.
Question (149562) asked by Sir David Amess (Southend West) on 4th June 2018: “To ask the Secretary of State for Transport, if he will make it his policy to allocate additional funding to local authorities who own aerodromes to release the economic potential of those facilities”.
A. Jesse Norman on 12th June 2018: “Most airport operators whether in the commercial private sector or in public/private partnerships operate as private commercial undertakings. In this regard, the UK’s aviation industry operates essentially without subsidy. It is therefore for local authorities to determine any additional funding for any aerodromes they own. Additionally, provision of public funding for airports needs to comply with the European Community State aid guidelines for airports and airlines”.
Question (152751) asked by Zac Goldsmith (Richmond Park) on 12th June 2018: “To ask the Secretary of State for Transport, how much funding the Government has allocated to support a connection to an expanded Heathrow Airport from regional airports”.
A. Jesse Norman on 15th June 2018: “The Government expects that the majority of domestic routes will be commercially viable, as many are today, with support from Heathrow Airport. This support includes discounted charges for domestic passengers at Heathrow, and a £10 million Route Connectivity Fund for domestic services to and from Heathrow. The Government will also take action, where appropriate, to secure routes through the use of Public Service Obligations (PSOs). PSOs provide the opportunity to offer exclusive rights to airlines to operate a route. The Government currently provides subsidies for three PSO routes to London: Newquay to Gatwick; Londonderry to Stansted; and Dundee to Stansted. The Government’s approach to domestic connectivity will be set out in a Green Paper on the Aviation Strategy towards the end of this year, and the extent to which subsidies may be required can only be determined subject to market conditions nearer to the time at which new capacity becomes operational”.
National and Regional News
5th June – Heathrow decision set to be met by outcry. Campaigners have reacted with concern to reports the Government will give the go-ahead for 3rd runway at Heathrow.
5th June – Secretary of State for Transport made a statement to Parliament about the proposed expansion of Heathrow Airport. Details can be seen here.
11th June – Two-year work to upgrade M23 near Gatwick starts on June 18th. Highways England says the 2-year project will provide much needed improvements near airport.
13th June – Ryanair will open a new base at Southend Airport. It’ll be their14th base and create 750 jobs.
13th June – Gatwick Airport announces new growth plan. It will extend part of its North Terminal as part of a £1.11bn five-year investment plan.
19th June – Heathrow Hub readies judicial review of Airports National Policy Statement. Their legal advisors have written to the Secretary of State indicating a challenge to the NPS.
20th June – House of Commons is to vote on Heathrow expansion next week. This follows the approval of the plans by the Cabinet.
25th June – Luton Airport begins consultation on expanding by making best use of its runway. Details and consultation documents can be seen here.
25th June – Government voted to support Heathrow expansion/third runway. The House of Commons supported the plan by 415 to 119, giving the government a majority of 296.
27th June – Heathrow warned against landing fee ‘spike’ to pay for third runway. CAA declared they will “put a lot of pressure on Heathrow to rise to the occasion”.
28th June – Mayor and MP clash over Birmingham Airport plans. The difference in opinion centres around the question of a second runway at the airport.
30th June – An article in ‘Wired’ about how Heathrow is busier than ever but physics means it is getting quieter can be seen here.
Other Aviation Industry News
1st June – Survey shows there is a growing demand for regional airport departures amongst British travellers. The survey was conducted by luxury holiday experts Away Holidays.
7th June – IATA urges Governments to be cautious if considering airport privatisation. They say it’s wrong for cash-strapped Governments to assume private sector has all the answers.
12th June – Easyjet says its fares would drop by a third if Heathrow 3rd runway goes ahead. They say it would let low-cost carriers fly from the airport for the first time.
12th June – Aviation Minister Baroness Sugg gave a keynote speech to the British-Irish Airports Expo. The speech can be seen here.
22nd June – Airbus threatens to leave UK over Brexit. Airbus is making plans to leave the UK in the event of a “no-deal” Brexit, which could lead to the loss of tens of thousands of jobs.
25th June – Airports commit to 6 new resolutions at ACI World Assembly in Brussels. The aim is to maximise the contributions of airports to maintaining and developing a safe, secure, environmentally sustainable, and customer-centric aviation system worldwide.
29th June – Committee on Climate Change says DfT must publish a plan by summer 2019 to limit aviation carbon dioxide emissions. Further details can be seen here.