Editor’s Highlights
Another busy month for Aviation Policy as the Government battled with COVID, while the industry pressed for testing regimes that would allow them to get moving again and financial support from the public purse. The outcome was little different than in Waves 1 and 2, with travel restrictions becoming tighter as the Government moved towards a Christmas Lockdown. In addition, as before, the Chancellor showed little empathy with the aviation’s industry’s travails, continuing to resist a sectoral support package of the kind that he has provided to other parts of the UK economy, allowed in Scotland and watched Government across Europe and North America offer their industry.
To complicate matters further, a Brexit deal was finally reached with the EU just before Christmas, leaving the UK from 1st January with 3rd and 4th Freedoms for passenger flights and some 5ths for freight to replace the former EU Open Skies regime and many EU aviation institutions. As this newsletter was being finalised queues of lorries had built up at Manston Airport as logistics operators tried to beat the looming Brexit deadline, but in the longer-term much more important will be the disruption and additional costs associated with new border bureaucracy and the duties that will be applied to goods, both inbound and outbound, between the EU and UK. Hopefully, these concerns will push the UK’s lack of air freight capacity and the tardiness of its forwarding industry in adopting the most modern industry digitalisation and automated processes, to the front of the Government’s mind – especially in the context of its vision of the UK as a global trading nation.
Then there was the reversal by the Supreme Court, of the Appeal Court’s decision on the Heathrow/ANPS judicial review, and the implications this may also have for local battles being fought at Stansted and Bristol resisting airport growth on climate change grounds – specifically the UK’s 2050 net zero climate change commitments. The Government is still considering its response to the Court’s ruling and the aviation section of the Committee on Climate Change’s 6th Report, which was also published in December.
Elsewhere, the CAA published its Airspace Modernisation Programme progress report (summarising not much) against a background of murmurings of discontent on all sides about the length and complexity of the airspace change process. The DfT added to this already spicy mix by launching its Night Flights consultation, whilst conceding that the Aviation Recovery Plan and both Connectivity studies will be delayed as resources are diverted to deal with Brexit and COVID firefighting.
And finally, but by no means least, the SASIG meeting and workshop on 16th December were both well attended. The Secretariat subsequently confirmed SASIG’s membership of CAST and our engagement with CAA in drawing-up Airport Safeguarding Advice for LAs. We have also agreed with LGA corporately that SASIG will extend its remit to lead on Aerospace where it impacts on LA interests, Business/General Aviation and Urban Air Mobility.
Chris Cain, Policy Director – SASIG
Monthly Highlights
2 December – Government’s night flights consultation goes live. See here for details.
16 December – Supreme Court reverses earlier decision on Heathrow expansion.
22nd December – CAA publishes their Airspace Modernisation Strategy 2020 progress report. See here for details and access to the report.
24th December – Brexit deal delivered. See here and here for details.
Events, Meetings and Conferences
SASIG Meetings
23rd March 2021: 10:30 – 1pm: SASIG full meeting/ afternoon workshop (Virtual meetings via Zoom)
21st July 2021: 10:30-1pm: SASIG full meeting/ afternoon workshop – Westminster Suite, LGA or virtually via Zoom – to be decided.
External Conferences (please note: some changes due to COVID-19 crisis)
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 2021: World Routes 2021: Milan, Italy.
October 2021: ABTA Travel Convention, Marrakech, Morocco.
December 2021: 9th European Aviation Conference: Heilbronn, Germany
Parliamentary and Government News
3rd December – Transport Secretary announces new exemptions to travel quarantine rules. These include high-value business travellers, journalists and ‘elite’ sports stars.
24th December – Brexit deal delivered. See here and here for details.
Both the Houses rose on 17 December 2020 and will return on 5 January 2021.
Transport Questions: House of Commons:
15th December – Planning for the Future
The House was asked to consider the Planning for the Future White Paper. See details here.
Transport Questions: House of Lords
2nd December – Belfast International Airport
Government was asked what steps they are taking to support the operation of Belfast International Airport. See herefor details.
3rd December – National Planning Policy Statements: Climate Change
Government was asked what plans they have to review National Planning Policy Statements to assess whether they are aligned with UK commitments under the Paris Climate Agreement and section 1 of the Climate Change Act 2008. See here for details.
7th December – Unmanned Aircraft (Amendment) (EU Exit) Regulations 2020
The Grand Committee was asked to consider the Unmanned Aircraft (Amendment) (EU Exit) Regulations 2020. See here for details of the discussion.
17th December – Heathrow Airport Expansion
The Government was asked what assessment they have made of the impact of the judgment by the Supreme Court in R (on the application of Friends of the Earth Ltd and others) v Heathrow Airport Ltd on the expansion of Heathrow Airport. See here.
17th December – Freight Industry Delays
The Government was asked what discussions they have had with organisations representing the freight industry about arrangements to ensure that delays at (1) ports, and (2) airports, are avoided. See here.
Parliamentary Questions:
Q.1. Question (124719) asked by Henry Smith (Crawley) on 3 December 2020: “To ask the Chancellor of the Exchequer, what assessments his Department has made of the potential merits of providing alternative airside tax-free shopping regimes for international visitors at the end of the transition period”.
A. Kemi Badenoch on 10 December 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 EU residents 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 is also continuing to meet and discuss the changes with 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(opens in a new tab) and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers(opens in a new tab). A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders.
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 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.
On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free airside sales. The OBR estimate that the withdrawal will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of Covid-19.
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.2. Question (128199) asked by Damien Hinds (East Hampshire) on 10 December 2020: “To ask the Secretary of State for Transport, when he plans to amend the Air Navigation Directions 2017 to require the Civil Aviation Authority when considering airspace change proposals to undertake an assessment of the available safety data regarding all airspace users and publish a statement on how proposals satisfy the requirements of the operators and owners of all aircraft; and whether the post-implementation review of the airspace change proposal that came into force at Farnborough Airport in February 2020 will include an analysis of safety data”.
A. Robert Courts on 18 December 2020: “The Air Navigation Directions 2017 are kept under review but there are no immediate plans to amend them. When undertaking the post-implementation review of the Farnborough Airport airspace change, the Civil Aviation Authority will consider the safety and operational characteristics of this proposal, including available flight data, and then determine whether the proposal has met its regulatory requirements”.
Q.3. Question (HL11037) asked by Baroness McIntosh of Pickering on 2 December 2020: “To ask Her Majesty’s Government what estimate they have made of the economic impact of the loss of duty-free sales on (1) Belfast International Airport, (2) Stansted Airport, (3) Manchester Airport, and (4) Newcastle Airport”.
A. Lord Agnew of Oulton on 17 December 2020: “Ahead of the end of the transition period, the Government has announced the 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 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 is also continuing to meet and discuss with 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(opens in a new tab) and https://www.gov.uk/government/consultations/a-consultation-on-duty-free-and-tax-free-goods-carried-by-passengers(opens in a new tab). A technical note has also been issued to stakeholders to expand on this document and to respond to issues raised by stakeholders. On 25 November the independent Office for Budget Responsibility (OBR) set out their assessment of the fiscal impact of the withdrawal of the tax-free airside sales. The OBR estimate that the withdrawal will raise approximately £170 million per year for the Exchequer, after behavioural responses are taken into account and passenger numbers recover from the impacts of COVID-19. The Government 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.4. Question (130135) asked by Steve Double (St Austell & Newquay) on 15 December 2020: “To ask the Secretary of State for the Home Department, pursuant to the Answer of 2 December 2020 to Question 120898 on Heathrow Airport, what recent assessment he has made of the adequacy of the level of resource and support provided to Border Force to ensure that it is able to effectively discharge its duties at Heathrow within agreed service level agreements (a) over the Christmas period and (b) at the end of the transition period”.
A. Chris Philp on 21 December 2020: “Border Force is confident that resources to meet anticipated overall operational requirements are in place for the Christmas and transition period, with Border Force recruiting sufficient additional frontline staff and continuing to build staffing levels during 2020 across all critical ports. This will ensure full operational readiness at the UK border to meet the requirements from the end of transition.
Resource and staffing requirements at every port, including Heathrow, are continually reviewed by Border Force working with airport operators including Heathrow Airport Ltd, and resources are deployed flexibly as and when they are required. Wait times in airports can be caused by a number of factors, not just related to resourcing. This includes the volume of immigration case working, additional support, checks in relation to Covid-19, and specific security activity. Our teams seek to balance this range of tasking each day. Whilst mindful of passenger wait times and experience, our primary objective is to ensure the security of the border.
New Border Force staff receive a comprehensive package of training prior to operational deployment. comprehensive guidance and training plans have been developed to upskill BF frontline officers in new policy, process and system changes for the end of the Transition Period. Initial training is further reinforced and supplemented by on the job mentoring once new staff have been deployed to UK ports. Figures for the queue time for non-EEA passengers during the period from 5 November 2020 2 December 2020 are yet to be published”.
Q.5. Question (HL10961) asked by Lord Hay of Ballyore on 1 December 2020: “To ask Her Majesty’s Government what resources they have made available to support Belfast International Airport during the COVID-19 Pandemic”.
A. Baroness Vere of Norbiton on 15 December 2020: “The aviation sector is vital to our future as a global trading nation, playing a critical role in local economies, including in Northern Ireland. The national measures taken in response to COVID-19 have been unprecedented, enabling airlines, airports and ground handlers to benefit from a very significant amount of taxpayer support. This includes, but is not limited to, the Coronavirus Job Retention Scheme and financing facilities. The Government is also working on a strategic framework for the medium and long-term recovery of the aviation sector in the form of a recovery plan. Airport policy is devolved to the Northern Ireland Executive (NIE). NIE has provided business rates relief to airports in Northern Ireland worth £2.2 million. NIE are continuing to consider appropriate support for airports in Northern Ireland”.
National and Regional News
1st December – An article titled: ‘Ben Houchen’s international airport: public ownership, private control’ can be seen here.
1st December – Airport industrial development aims to bring 80 jobs to Doncaster. The first phase will be completed this week.
1st December – New hangar completed at Norwich Airport. The £7million, 54,000 sq ft hangar and associated 15,500 sq ft workshop will accommodate KLM Engineering Group.
2nd December – How Teesside Airport will look after its first major refurbishment in 15 years. The airport is undergoing a multi-million pound transformation.
2nd December – Manston Airport development approval ‘to be quashed’ with decision to be re-examined following challenge bid. See details here.
3rd December – Southampton Airport expansion plans rejected for a second time.
Councillors have decided to object to the proposals to expand the runway by 164 metres.
4th December – London City Airport unveils its new COVID-19 modified master plan. Its publication follows a 16-week consultation carried out in summer 2019.
4th December – Heathrow to consider implementation of Forecourt Access Charges in 2021. They want to prevent a car-led airport recovery from the COVID-19 pandemic.
4th December – Blackpool Airport Enterprise Zone Masterplan has been updated. See here.
5th December – Stansted Airport sets up new test centre for passengers. Airport bosses say it will make travel to popular European destinations easier and more flexible.
6th December – Heathrow may suspend dividend payments. In a submission to the CAA it said it would not pay dividends this year or next in return for leniency from its lenders.
6th December – Leeds Bradford Airport to cut over 100 jobs due to C-19 impact. The airport has entered into a consultation process with its workers.
7th December – An article about why Heathrow is ‘closed’ at nights and why it has some of the strictest restrictions of any European hub airport can be seen here.
8th December – Green Party asks Bristol Mayor to oppose airport expansion plans. The plans would allow the airport to grow its passenger numbers from 10 million to 12 million a year.
8th December – Southampton Airport expansion: Council decision delayed until 2021. Council statement said delay was at request of the airport to submit additional information.
9th December – Council explores idea of reopening Plymouth’s disused airport. It’s asked Government’s new Airfield Development Advisory Fund for help to obtain a clear picture of what level of investment would be needed to reopen for commercial passenger services.
9th December – BCP Council bid for Bournemouth freeport status. It’s working with organisations including airport to put together a submission ahead of February deadline.
10th December – The expansion of Bristol Airport has lost the support of the city council. They now say it is “incompatible” with carbon reduction targets and “must not go ahead”.
11th December – Heathrow demands Chancellor ends tourist tax on duty free passengers. It will also keep Terminal 4 shut until the end of next year because of the impact of C-19.
11th December – Bristol Mayor wants frequent flyers taxed to tackle climate change. He said more questions needed to be asked about regional airports.
13th December – MD of East Midlands Airport has joined board of the D2N2 LEP. Clare James has been appointed as a private-sector board member and joins LEP from January 2021.
14th December – Multi-million pound investment into Teesside Airport’s security begins.
It’s to cater for thousands of extra passengers expected next summer.
15th December – Seasonal joy for Gatwick with expected rise in traffic. See here for details.
15th December – Bournemouth Airport boss welcomes testing policy. He also welcomes Government announcement on business rates relief for airports.
16th December – Supreme Court reverses earlier decision on Heathrow expansion.
17th December – A positive future is seen for Gloucestershire Airport. See details here.
17th December – Doncaster Sheffield Airport makes management changes.
17th December – Heathrow expansion will be ‘vital to counter £4 billion hit to Hounslow economy’ says Council chief. See here for details.
18th December – Western Rail link to Heathrow is delayed. DfT has instructed Network Rail to hold its DCO submission until winter 2022 to ensure a funding agreement is worked out.
18th December – Plymouth submit bid for support from Airfield Development Fund. Council wants picture of what level of investment would be needed to reopen the airport for commercial passenger services.
18th December – Cornwall Airport Newquay reopens for commercial flights. It stopped all commercial flights on November 9th due to impact of C-19. More details here.
18th December – London City Airport completes major airfield expansion projects. This includes a full-length parallel taxiway and eight new stands.
19th December – Ministers face fresh legal challenge over Heathrow expansion plans. Lawyers and environmentalists demand it review its policy in line with its commitment to net-zero emissions by 2050.
20th December – TUI cancels flights out of Luton Airport as it goes into Tier 4. It will apply between 20-30 December. It will continue its Gatwick and Stansted flights as they are Tier 2.
21st December – Southend Airport opens private COVID-19 testing site. The test is available to passengers for £105 and non-passengers at £125.
22nd December – Southend Airport appeals refusal over new hotel plans. Airport bosses remain hopeful of building a second hotel on site despite plans being rejected by council.
24th December – Expert says Leeds Airport expansion will happen next year. However, he remains unconvinced of the economic and business benefits promised to the region.
24th December – Top legal minds are already preparing the groundwork for a fight over the expansion of Bristol Airport next summer. See details here.
24th December – Doncaster Sheffield Airport ‘confident’ of the future. It says it is “currently experiencing a large volume of enquiries for flights”.
25th December – A secret view inside Heathrow’s abandoned Terminal 1 building – see here.
28th December – New record for UK’s busiest pure cargo airport. In November, East Midlands processed its highest number of goods in a month – a 26.4% increase on last year.
28th December – Wokingham Council Labour leader says expanding Heathrow is a bad idea. He believes the emissions caveat is misleading.
29th December – Southend Airport has achieved Government support to promote trade operations post-Brexit. This will provide a welcome boost to the local economy.
31st December – An article titled ‘Developments which could re-shape North Somerset in 2021’ which includes Bristol Airport expansion can be seen here.
Other Aviation Industry News
1st December – Study ranks 30 European airports. Heathrow has best facilities out of those contenders but only ranked 7th overall. Details here.
1st December – Easyjet to charge £24 each way for overhead lockers. The budget airline today revealed it will be halving baggage allowances from February 10.
2nd December – Aviation organisations call for airport slot use relief for Summer 2021. See further details here.
2nd December – Government’s night flights consultation goes live. See here for details.
2nd December – ICCAN publish their best practice for airports’ engagement with communities on the issue of aviation noise. For details and access to document, see here.
3rd December – Wizz Air are to open a new base in Cardiff. It will be its fourth alongside London Luton, Gatwick and Doncaster Sheffield.
3rd December – Irish regional airports to receive €3.4m in Government grants. Donegal, Kerry and Ireland West Airport (Knock) will all benefit.
3rd December – Flybe moves a step closer to relaunch. The airline’s new owner has already applied for a license to begin operating flights.
3rd December – Transport Secretary announces new exemptions to travel quarantine rules. These include high-value business travellers, journalists and ‘elite’ sports stars.
5th December – Marginal recovery in activity at Belfast International Airport wiped out in October. Further details here.
6th December – See here for article titled: ‘Airlines 4 Europe – Airlines and Airports call on EU/EEA and UK Governments to immediately abolish passenger quarantines as EASA/ECDC guidelines confirm their ineffectiveness’
8th December – Updated COVID-19 economic impact analysis published by ACI World.
9th December – IATA describes the recovery of passenger demand as ‘disappointingly slow’ in October. See here for further details.
9th December – MAG half year interim results reveal revenues dropped 82.5% between April and September revealing the full impact of the devastating coronavirus crisis.
10th December – Committee for Climate Change says any UK airport expansion must be offset by reducing flights elsewhere. This is according to their 6th Carbon Budget (2033-37).
10th December – Irish Finance Minister has announced up to £7.8 million is being made available for Belfast International and Belfast City Airport. See details here.
11th December – UK’s first drone flight between commercial airports takes off from Cornwall. The return flight was between Lands End and Isles of Scilly.
12th December – Irish airports predict a quiet Christmas. It will be about a tenth of the amount of passengers who travelled through this time last year.
14th December – An article in Passenger Terminal Today titled: ‘Why contactless technology is key to rebuilding passenger confidence’ can be seen here.
15th December – Scotland’s airports and the body representing UK-registered airlines say Scottish aviation is falling behind on restarting travel. Further details here.
16 December – EU seeks to re-introduce airline slot rules. See here and here for details.
16th December – Long-await plans for station at Inverness Airport reach ‘milestone’ as plans are submitted. Further details here.
16th December – An article in Airport Review titled ‘Funding Opportunities for Europe’s airport regions’ can be seen here.
18th December – A new report shows 6,000 routes were lost in Europe to the pandemic. Further details may be seen here.
18th December – An article in Airport Review titled ‘The key challenges for today’s airports and becoming fit for the future’ can be seen here.
19th December – Dublin Airport proposes amendments for new runway’s conditions. DAA wants to ensure higher utilisation of the €320m project.
20th December – Prestwick Airport campaign on drones. Further details here.
21st December – Loganair is to pull flights from Belfast City Airport until February. This is due to the continuing impact from the coronavirus.
21st December – CAA issues response to Ryanair’s press release stating that they have cancelled some routes because the CAA has changed its wet-leasing policy at short notice.
22nd December – Union announces industrial action over HIAL air traffic plans. HIAL says the action will affect communities already impacted by the Covid-19 pandemic.
22nd December – CAA publishes their Airspace Modernisation Strategy 2020 progress report. See here for details and access to the report.
22nd December – Ryanair to reopen its base at Shannon Airport next summer. It’s also called on the Irish government to act to incentivise travel to secure at capacity at Cork and Dublin.
23rd December – Wizz Air announces new routes from UK airports despite Covid uncertainty. New destinations will be served from its Doncaster Sheffield, Gatwick and Luton hubs.
24th December – UK and EU strike trade deal; duty free sales set to return from 1 January but tax-free set to be scrapped. For further details see here.
26th December – DAA seek to alter Dublin runway conditions. They say if they’re not changed, they would significantly affect the operation of the airport.
27th December – Ryanair boss says pandemic is ‘growth opportunity’. He says his firm was in discussions with airports across Europe to bolster its capacity.
28th December – ADS CE warns that the aviation sector is facing a “deepening crisis” as Covid-19 and global government restrictions continue to blight travel.
28th December – Quick swap engines could be the future of Zero Emission flight. See here.
30th December – Dublin Airport is the first Irish airport to achieve carbon neutral status. The airport has reduced its overall carbon emissions by 25 per cent between 2013 and 2019
SASIG Library Additions
A presentation on aerodrome safeguarding given by Tony Heap, Policy Specialist – Aerodromes, CAA. at the SASIG members’ meeting on 16 December 2020 can be seen in the members’ area of the website along with a note outlining the structure of the Combined Aerodrome Safeguarding Team (CAST).
A workshop held on 16 December 2020 following the main members’ meeting, focused on the DfT’s night flights restrictions consultation and the ICCAN survey on noise management. A presentation by Gary Marshall, Senior Policy Advisor, Airspace & Noise Division at DfT and a presentation by Sam Hartley, Secretary to the ICCAN Commission can be seen in the members’ area of the website.
A round table hosted by HM Treasury regarding Freeports was held on 8 December 2020. Their presentation may be seen in the members’ area of the website.