Editor’s Highlights  

October was a busy month in terms of Aviation policy:

  • A Global Travel Task Force was set-up to look at travel corridors, quarantine arrangements and testing procedures to reduce self-isolation times for travellers;
  • Brexit looms ever larger and what once seemed clear in relation to aviation is suddenly once again cloudy;
  • A Union Connectivity Review was announced by the PM;
  • The Government’s intentions in relation to Freeports were clarified;
  • The Heathrow 3rd Runway Supreme Court case got underway;
  • The Airfield Development Advisory Fund came on-line for small airports and 
  • The prospect of a much slimmed down Flybe appeared to be emerging from the ashes of its earlier demise;
  • There were eight lots of transport questions in the Commons and 2 in the Lords.

All in all, a lot to absorb, though not much of it transparent and even less of it likely to bring early action to help an industry once again on its knees after a small summer up-turn, as Covid infection rates begin to rise in the UK and overseas. The list of industries that have received sectoral help in the UK is a substantial one but aviation is not among them. Even the long-standing business rates issue remains at large.

And finally, while we wait for November’s developments, a change of title! SASIG’s growing profile within the aviation industry is bringing with it increased exposure for the Secretariat at meetings with Government Departments and major stakeholders. Recognition of this, and the tendency of some parties we deal with to attach significance to titles, led Chairman Keith Artus along with the approval of the Chairman’s Advisory Group, to ‘up-grade’ the previous Head of Secretariat nomenclature to Policy Director as it was felt this also better reflected and clarified my role within SASIG. Same job (if an ever busier one), same person, just a different title.

Chris Cain

Policy Director
SASIG

Monthly Highlights

3rd October – Government announces independent review of transport connections across the UK.  Details of the Terms of Reference can be seen here
7th October – Heathrow begins 3rd runway Court appeal. It’s challenging previous decision to block the runway project on the grounds it didn’t take into account UK’s climate pledges.
7th October – Government outlines new plans for FreeportsFreeport bidding process in England to open before the end of the year.

7th October – Government launches Taskforce for safe return to global travel. Further details here and here.

15th October – SoS acknowledges at virtual ABTA conference that flights between UK and European Union may be grounded from 1 January 2021 if there is a no-deal Brexit.
19th October – Flybe could start flying again next yearThe regional airline went into administration in March, but it is now purchased by Thyme Opco Ltd.

19th October – Secretary of State for Transport’s “Beyond the crisis” – speech to the aviation industry can be seen here.
29th October – Airfield Development Advisory Fund, supported by DfT and UK CAA goes live. See details here.

This month the Independent Commission on Civil Aviation Noise (ICCAN) published its first review on exploring the relationship between aviation noise and people’s health. Please see here for further details. They also looked at people’s experiences of aviation noise during the COVID-19 crisis over the summer and the results of their survey can be seen here.

Events, Meetings and Conferences

SASIG Meetings

16th December 2020: 10:30am-1pm: SASIG full meeting/afternoon workshop (Virtual meetings via Zoom) (Please note: this date has been changed from 19 November 2020).

23rd March 2021: 10:30 – 1pm: SASIG full meeting/afternoon workshop (Virtual meetings via Zoom).

External Conferences (please note: some changes due to COVID-19 crisis)

17th-18th November 2020: Cargo Airport Growth Summit (Virtual)

30 November – 4 December 2020: Routes Reconnected: Virtual and Amsterdam.

December 2021: 9th European Aviation Conference: Heilbronn, Germany

10th-12th May 2021: Routes Europe: Bergen, Norway.

28 June-1 July 2021: Passenger Terminal Expo 2021: Conference & Exhibition, RAI Amsterdam, Netherlands.

5th-7th September 2021World Routes 2021: Milan, Italy.

October 2021: ABTA Travel Convention, Marrakech, Morocco.

Parliamentary and Government News

3rd October – Government announces independent review of transport connections across the UK.  Details of the Terms of Reference can be seen here

7th October – Government outlines new plans for Freeports. Freeport bidding process in England to open before the end of the year.
7th October – Government launches Taskforce for safe return to global travel. Further details here and here.

19th October – Secretary of State for Transport’s “Beyond the crisis” – speech to the aviation industry can be seen here.

Transport Questions:  House of Commons: 

5th October – Union Connectivity Review
Secretary of State for Transport publishes TOR’s for Union Connectivity Review – see here.

14th October – Support for the Travel Industry
Alan Brown MP (Kilmarnock & Loudoun) rose a petition on behalf of his constituents who work in the travel, aviation, aerospace and tourism sectors and who are worried about their livelihoods and the ‘lack of targeted action to date by the UK Government’.

14th October – Jet Zero Council
Andrew Selous MP (South West Bedfordshire) asked that this house has considered the work of the Jet Zero Council. See further details here.

15th October – CCC Report on reducing UK Emissions: Government Response. 
Secretary of State for Business, Energy & Industrial Strategy informed the House of the laying of the Government response to the Committee on Climate Change 2020 report on reducing UK emissions. For details see here.

21st October – Support for the Travel Industry
David Linden MP (Glasgow East) rose a petition on behalf of his constituents who wish to see support for the travel industry.

22nd October – Carbon emissions – Aviation
Government was asked what steps are being taken to reduce carbon emissions in the aviation sector. See here for details.

22nd October – COVID-19 Quarantine – International Travel
Government was asked what steps the DfT is taking to reduce the duration of covid-19 quarantine required after international travel. For details see here.

22nd October – Transport Sector: Support and COVID-19 Emergency Funding
The question was asked what (a) financial and (b) other support will be provided to the transport sector in the next six months. See here for details.

Transport Questions:  House of Lords

5th October – COVID 19: Aviation Sector
Government was asked what assessment they’ve made of the impact of quarantine provisions to address the COVID-19 pandemic on civil aviation; and what measures they plan to take to support the aviation sector. See here for details of the debate.

6th October – COVID-19: Transport Industry
Government was asked what additional support they plan to give to the transport industry (including aviation) to enable that industry to address the impact of the Covid-19 pandemic. 

Parliamentary Questions:  

Q.1. Question (99731) asked by Luke Pollard (Plymouth, Sutton & Devonport) on 6 October 2020: “To ask the Secretary of State for Transport, what estimate he has made of the potential cost increase as a result of the two year delay to the Western Rail Access to Heathrow project”.
A. Chris Heaton-Harris on 14 October 2020: “Progress on the Western Rail Link to Heathrow is subject to a satisfactory business case and the agreement of acceptable terms with the Heathrow aviation industry. Negotiations on these terms have not yet concluded and any estimate of cost to the taxpayer is dependent on this agreement. There is also no reason why costs would increase as a result”.
Q.2. Question (99730) asked by Luke Pollard (Plymouth, Sutton & Devonport) on 6 October 2020: “To ask the Secretary of State for Transport, when construction work will start on the Western Rail Access to Heathrow”.
A. Chris Heaton-Harris on 14 October 2020: “Construction of the Western Rail Link to Heathrow is expected to start following the granting of planning consent, with construction of the main build estimated to take approximately five years. Submission of the scheme’s application for development consent, is subject to a satisfactory business case and the agreement of acceptable terms with the Heathrow Aviation industry”.
Q.3. Question (99729) asked by Luke Pollard (Plymouth, Sutton & Devonport) on 6 October 2020: “To ask the Secretary of State for Transport, what consultation he undertook before postponing the delivery of the Western Rail Access to Heathrow”. 
A. Chris Heaton-Harris on 14 October 2020: “The Department has not postponed the delivery of the Western Rail Access to Heathrow. The Government has always been clear that delivery of such is subject to a satisfactory business case and agreement of acceptable terms with the Heathrow Aviation industry. Discussions between the Department and Heathrow Airport Limited to agree an appropriate funding contribution were interrupted following the Court of Appeal’s judgement on the Airports National Policy Statement and the devastating impact of COVID-19, resulting in a delay. Network Rail plans to re-consult on the scheme in 2021”.
Q.4. Question (101038) asked by Patricia Gibson (North Ayrshire & Arran) on 8 October 2020: “To ask the Chancellor of the Exchequer, what assessment he made of the effect of the withdrawal of tax free shopping on the competitiveness of UK airports”.
A. Kemi Badenoch on 13 October 2020: “Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage arriving from or going overseas (passengers). The following rules will apply from 1 January 2021:

– Passengers travelling from Great Britain to any destination outside the United Kingdom (UK) will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

– Personal allowances will apply to passengers entering Great Britain from a destination outside of the UK, with alcohol allowances significantly increased.

– The VAT Retail Export Scheme (RES) in Great Britain will not be extended to passengers travelling to the EU and will be withdrawn for all passengers.

– The concessionary treatment on tax-free sales for non-excise goods will be removed across the UK.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies.

The detailed rationale for these changes are included in the written ministerial statement and summary of responses to the recent consultation: https://questions-statements.parliament.uk/written-statements/detail/2020-09-11/hcws448 and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers.

In 2019 HMRC estimate that VAT RES refunds cost around £0.5billion in VAT for around 1.2million non-EU visitors. In 2019 the ONS estimate there were substantially more EU visitors (24.8 million) than non-EU passengers (16.0 million) to the UK. This implies an extension to EU residents would significantly increase the cost by up to an estimated £0.9billion. This would result in a large amount of deadweight loss by subsidising spending from EU visitors which already happens without a refund mechanism in place, potentially taking the total cost up to around £1.4billion per annum. The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free to the EU before.

HMRC estimate that around £150 million of VAT is not charged as a result of tax-free airside sales. As with the VAT RES, extending the relief to the EU would significantly increase the cost of the scheme and result in a large amount of deadweight loss by subsidising spending from EU-bound passengers which already happens. The final costings will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast. The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees”.
Q.5. Question (100924) asked by Virendra Sharma (Ealing, Southall) on 8 October 2020: “To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of implementing business rate relief for airports in response to their reduction in passenger traffic”.
A. Jesse Norman on 13 October 2020: “The Government recognises the challenging times facing the aviation industry as a result of COVID-19, and firms experiencing difficulties as a result of COVID-19 can draw upon the unprecedented package of measures announced by the Chancellor, including schemes to raise capital and flexibilities with tax bills. Firms in the aviation sector will now also be able to take advantage of the targeted package of measures to support jobs and businesses through the winter months. The Government has also launched a new Global Travel Taskforce to work with industry to support the safe recovery of international travel”.
Q.6. Question (99665) asked by Owen Thompson (Midlothian) on 6 October 2020: “To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on tax revenues of his plans for duty-free and tax-free goods at airports announced on 11 September 2020”.
A. Kemi Badenoch on 12 October 2020: “Ahead of the end of the transition period, the Government has announced the VAT and excise duty treatment of goods purchased by individuals for personal use and carried in their luggage to or from Great Britain. The following rules will apply from 1 January 2021:

-Passengers travelling from Great Britain to any destination outside the United Kingdom will be able to purchase duty-free excise goods once they have passed security controls at ports, airports, and international rail stations.

-Personal allowances will apply to passengers entering Great Britain from a destination outside of the United Kingdom, with alcohol allowances significantly increased.

-The concessionary treatment on tax-free sales of non-excise goods and the VAT Retail Export Scheme will not be extended to passengers travelling to the EU, and will be withdrawn for all passengers.

The Government published a consultation which ran from 11 March to 20 May. During this time the Government held a number of virtual meetings with stakeholders to hear their views and received 73 responses to the consultation. The Government has also continued to meet and discuss with key stakeholders following the announcement of these policies. The concessionary treatment on tax-free sales currently affects airports that fly to non-EU destinations. The extension of duty-free sales to EU bound passengers will be a significant boost to all airports in England, Scotland and Wales, including Edinburgh and Glasgow and smaller regional airports which have not been able to offer duty-free before. The final costing will be subject to scrutiny by the independent Office for Budget Responsibility and will be set out at the next forecast. The Government also recognises the challenges the aviation sector is facing as it recovers from the impacts of Covid-19 and has supported the sector throughout the pandemic, and continues to do so, including schemes to raise capital, flexibilities with tax bills, and financial support for employees”.
Q.7. Question (100898) asked by Hywel Williams (Arfon) on 8 October 2020: “To ask the Secretary of State for Transport, what his timescale is for the completion of the Union Connectivity Review; whether that review will make an assessment of the potential merits of air connectivity between (a)(i) Ynys Mon and (ii) Gwynedd and London and (b)(i) Ynys Mon and (ii) Gwynedd and Scotland; and if he will make a statement”.
A Rachel MacLean on 13 October 2020: “The Union Connectivity Review interim report will be published in January 2021, with final recommendations in Summer 2021. The Review will cover transport connectivity between England, Scotland, Wales and Northern Ireland via road, rail and air and across the Irish Sea. This will be an independent review chaired by Sir Peter Hendy who will determine which air corridors should be assessed”.

National and Regional News

1st October – Exeter Airport receives funding boost to avoid ‘worst case scenario’. Collapse of Flybe and coronavirus has led to the airport facing an existential threat to its future.
1st October – Covid testing for passengers arriving in UK could begin within weeks, according to Heathrow CE. Government has told them they are aiming to begin trials by mid-October.
3rd October – Government announces review of transport connections across the UK. See here for further details.  Details of the Terms of Reference can be seen here.
5th October – Legal representatives for Friends of the Earth publish Heathrow Airport Expansion: Supreme Court Appeal briefing – for details see here
5th October – Government to finally allow airport testing to begin. Transport and Health Ministers expected to announce a test and quarantine programme in the next few days.

5th October – Campaigners call for ‘clean air’ at Leeds Bradford Airport. They want council to reject plans for new terminal scheme.

6th October – An article in ‘Surrey Live’ about how Horley in Surrey is being devasted by the slowdown in flights from Gatwick, can be seen here

6th October – Gatwick to introduce drop-off and pick-up fee. The £5 fee will start from 2021.
7th October – Heathrow begins 3rd runway Court appeal. It’s challenging previous decision to block the runway project on the grounds it didn’t take into account UK’s climate pledges.

9th October – Campaigners unhappy with Bristol Airport’s attempt to purchase land. Airport has applied to the council for a CPO to buy nearby land to improve access to airport.

9th October – CAA publishes consultation document in response to HAL’s request for CAA to change its approach to the calculation of its regulatory asset base (RAB) to take account of the impact of the COVID-19 pandemic on its revenues in 2020 and 2021. 

10th October – Southampton Airport MD says it could close next year if plans for runway extension are refused. Airport wants to extend runway and increase the number of flights.

12th October – Stansted Airport’s new MD is optimistic about recovery. He also says the management team do have a tricky balancing act.

12th October – Heathrow drops out of top ten airports in August. Up until the pandemic it had been Europe’s busiest airport.

12th October – UK aviation sector worth £15billion before the pandemic. This is according to data from a study commissioned by London City Airport. Its MD always welcomes new Global Travel Taskforce – see here
13th October – An article in Business Live titled: “Can regional airports survive the COVID crisis?” can be seen here.

13th October – Airlines and airports in fresh aid package plea. IATA and ACI united in calling on governments for more help.

14th October – SoS for Transport says his coronavirus testing plans will get more people flying. He said this at a virtual ABTA travel industry association event.
14th October – Manston Airport: Judicial review granted over development. It will challenge the government’s decision to allow an airport site to be developed.

15th October – Job losses due to impact of C-19 confirmed at Carlisle Lake District Airport. 16 staff have been made redundant and the airport remains closed to passenger operations.

16th October – Freeports: East Midlands Airport bid backed by LEP. They say a Freeport at the airport would help rebuild the region’s economy.

16th October – Environmental group calls on Gatwick to ‘build back better’. Gatwick Area Conservation Campaign lay out a series of national and local measures they say are needed. 

17th October – Ryanair cuts hits Cornwall Newquay Airport. Flights to Alicante will now only be one a week.

18th October – Video of a retired Boeing 747’s final landing into Cornwall Newquay Airport before it is scrapped can be seen here.

19th October – BA Gatwick future in doubt. It is thought the new BA chief executive will reduce operations from Gatwick as part of a wide-ranging new strategy.
19th October – HMRC reveals Brexit lorry park plans for Birmingham Airport. It may be in use for 2 years and Car Park 6 has already been removed as an option from airport parking facilities.
20th October – First pre-departure C-19 testing facility opens at Heathrow Airport for departing passengers to Hong Kong and Italy. The private tests cost £80 each.
21st October – Doncaster Sheffield Airport rail link plan dropped. Rail Minister says DfT “does not believe that proposed scheme will deliver value for money in its current guise”.

21st October – Cornwall Council CEO claims Cornwall Newquay Airport Ltd is ‘not currently a viable company’. However, the question of obtaining a loan could be an option to look at. 
22nd October – Third consultation starts over Southampton Airport expansion plans. The airport wants to increase the number of flights and allow the use of larger planes.

23rd October – Tories aim to end Southend night flights. They’ve said they back “further controlled expansion” but want night flights removed.

23rd October – Gatwick CE says about 40% of employees will have lost their jobs by the end of this month due to COVID-19 impact. Further details can be seen here.

25th October – CAA says without emergency cash from Heathrow’s shareholders the state may have to take over airport to save it from collapse. Details may be seen here

27th October – Local residents say they weren’t consulted over increase in flights from Farnborough Airport. Airport plans to double aircraft movements over a phased period.

28th October – Heathrow overtaken as Europe’s largest airport. It has been overtaken by Paris’s Charles de Gaulle Airport.
28th October – Anti-noise campaigners angry at Luton Airport expansion plans. The airport wants to increase its annual passenger numbers from 18 million to 19 million.
30th October – Another 120 jobs to go at Birmingham Airport due to C-19 crisis. The airport has already made 250 redundancies. 

Other Aviation Industry News
1st October – Potential buyer for Prestwick Airport pulls out. Transport Secretary said he’d now been advised they did “not wish to complete the purchase of the business at this time”.
1st October – ACI World develops tools to help passengers travel with confidence. Further details may be seen here.
1st October – Centralising ATC for HIAL airports is ‘unsafe’ say campaigners to MSPs.

2nd October – Public pressure grows on aviation industry to do more about climate change. This is according to new research commissioned by air traffic service, NATS.

2nd October – ACI has warned that physical distancing at airports could severely restrict capacity by up to 75% as passenger traffic starts to grow.  See more details here.

3rd October – Mayors meet to discuss future of Shannon Airport. Talks have been held between the mayors of Limerick, Clare and Tipperary, alongside airport bosses.

5th October – An article in Airport World titled: “Sustainable design: playing the long game” may be seen here.  

6th October – Ireland: Airports and airlines to meet transport minister for talks on aviation connectivity. They will meet tomorrow at Leinster House.
6th October – An article in Travel Weekly asking why airlines are paid months in advance resulting in delays to holiday refunds, can be seen here.

7th October – Prestwick Airport is talking to other potential buyers after its sale fell through due to the uncertainty caused by the pandemic. Further details can be seen here

7th October – Government outlines new plans for Freeports. Freeport bidding process in England to open before the end of the year.
8th October – An article in My London titled: “43 fascinating facts about Heathrow, Gatwick and Stansted airports you probably never knew” can be seen here.
8th October – A six-week consultation on the development of Glasgow’s metro system which will include an airport link will be launched by the City Region Cabinet. Details are here.
8th October – Easyjet warns it will lose more than £800m this year due to coronavirus. It has slashed its winter schedule to cut costs. 

8th October – Red Arrows escort for the last two British Airways Boeing 747s to take off from Heathrow as they fly to UK airports to be scrapped after iconic jumbo jet fleet was retired.

9th October – Up to 900 jobs to go at MAG. Owners of Manchester, Stansted and East Midlands Airport say it is due to the impact of COVID-19.

9th October – CAA publishes consultation document in response to HAL’s request for CAA to change its approach to the calculation of its regulatory asset base (RAB) to take account of the impact of the COVID-19 pandemic on its revenues in 2020 and 2021. 

10th October – Councillor criticises plans to charge for drop off/pick up at Dublin Airport. Airport has committed to putting funds raised by the measure into environmental projects.

12th October – ‘SNP must review policy and reject Heathrow expansion’ says former minister. Further details may be seen here.  

12th October – An article in Airport Review titled: “Optimising airport operations during a pandemic’ can be seen here.

12th October – Alex Cruz steps down as BA boss. He has been replaced immediately as CE by Sean Doyle, currently the chairman and CEO of Aer Lingus.

13th October – An article in ‘The House’ by Huw Merriman MP titled: “Passenger testing is needed if we want the UK aviation industry to survive” can be seen here.
14th October – Coronavirus: Ryanair slashes winter routes. It will axe more than one in three of its winter routes and close Cork and Shannon bases over the winter. 
15th October – SoS acknowledges at virtual ABTA conference that flights between UK and European Union may be grounded from 1 January 2021 if there is a no-deal Brexit.
18th October – Labour TD says Government members are “dragging their heels” over implementation of C-19 airport testing as it is “ready to go” at Dublin and Cork airports.
19th October – Cork Airport will continue to facilitate Aer Lingus. Airline continues its review of operations since the pandemic began.
19th October – Secretary of State for Transport’s “Beyond the crisis” – speech to the aviation industry can be seen here.

19th October – Flybe could start flying again next year. The regional airline went into administration in March, but it is now purchased by Thyme Opco Ltd.
21st October – Industry chiefs hail airport testing as ‘step in the right direction’. Further details may be seen here.
22nd October – CAA launches Economic Regulation of Gatwick Airport Ltd: consultation on new commitments. See here for further details.
22nd October – Edinburgh Airport to introduce new flat-fee for drop off and pick-ups. The new charges come in from November 9.
23rd October – UK presses for use of faster passport gates at EU airports post-Brexit. See details here.

23rd October – ICCAN launches survey to gain an emerging view on the future of aviation noise management. The survey will run until 18 December 2020 – see details here.
23rd October – Network Rail hopes a new railway station next to Inverness Airport could be open by late 2022. Plans are expected to be submitted before Christmas.25th October – Aviation regulator planning ‘no major changes’ to passenger charges at Dublin Airport. This will apply to years 2020 and 2021.
27th October – ACI Europe says nearly 200 European airports ‘face insolvency’ due to worsening passenger demand.

28th October – Air travel recovery stalled by ‘confusion and chaos’ says DAA chief. He says this is despite an EU agreement meant to cut the need for quarantines or other restrictions.
28th October – Taxi drivers say they will be left ‘out of pocket’ over Edinburgh Airport’s £4 drop off/pick up fee. The fee will come into force on 9 November.
28th October – Ireland West Airport, Knock announces 4-week closure. This is due to Ryanair suspending flight operations from the airport and other regional airports.
29th October – CAA publishes revised edition of CAP738 – Aerodrome Safeguarding. Further details and access to the document may be seen here.
29th October – Airfield Development Advisory Fund, supported by DfT and UK CAA goes live. See details here.
30th October – BA owner IAG calls for airport testing as losses widen. It has warned passenger demand could take 3 years to recover to pre-pandemic levels.
30th October – CAA publishes a further update and information relating to work on airspace modernisation. For details please see here.

 

SASIG Library Additions

  • At the SASIG members’ meeting of 1 October 2020 a presentation was given by Zoe McLernon from Logistics UK which can be seen in the members’ area of the website.
  • Following the members’ meeting, a workshop was held in the afternoon led by UKRI Innovate. Their presentation plus another by Basil O’Fee, Northpoint Aviation may both be seen in the members’ area of the website.
  • SASIG’s Business Rates Submission to DfT (1 Sept 2020) and accompanying spreadsheet may be seen in the members’ area of the website.

The Updated: UK approach to recreational general aviation safety: An independent review (CAP1886 – published 23 October 2020) can be seen on our website