Latest Aviation Policy News
Overseas Travel And Tourism estimates (Q2 2013)
ONS Overseas Travel and Tourism Q2 2013
This report contains estimates of completed international visits to and from the UK and earnings and expenditure associated with these visits. The estimates are derived from the International Passenger Survey (IPS) conducted by ONS at all major air and Eurostar ports in the UK as well as on sea and Eurotunnel routes into and out of the UK.
Compared to a year ago, visits to the UK by overseas residents increased by 5.2 per cent to 8.9 million in quarter 2 2013. The length of visit by overseas residents also increased, with the number of nights spent in the UK rising by 5.0 per cent. In addition, the estimated earnings from these visits increased by 11.9 per cent to £5.2 billion. These trends are a continuation of those observed for the first quarter of 2013.
Visits abroad by UK residents in this quarter, compared to a year ago, increased by 2.7% to 15.9 million. The number of nights spent abroad by UK residents, also increased by 7.6 per cent and expenditure during these visits increased by 7.0 per cent to £9.2 billion, compared with quarter 2 2012.
The tables for this report can be downloaded from the data section of this publication.
Seeking views on the Airports Commission’s emerging thinking on airport capacity in the UK
7 October 2013 speech by Sir Howard Davies, Chair of the Airports Commission sets out the Airport Commission’s emerging thinking on airport capacity in the UK.
It sets out a number of the key arguments that have been made against expanding aviation capacity in the UK, namely that:
- there will not be sufficient growth in demand to justify further expansion
- the market will be able to accommodate expected demand growth by using existing spare runway capacity
- continuing growth in aviation would not be consistent with the achievement of the UK’s statutory climate change targets
- the government should manage demand growth by supporting the use of airports outside the south east of England
In each case, the speech summarises the commission’s current analysis. To further inform its work on these issues, the Airports Commission is currently welcoming comments on the emerging thinking set out in the speech.
The Commission will present its conclusions on the UK’s future aviation needs in its interim report by the end of 2013.
Responses should be sent to: [email protected]
The consultation closes on 31 October 2013
Aviation related highlights from the Conservative Party Conference, Autumn 2013
Aviation related highlights from the Conservative Party Conference, Autumn 2013 (29 Sept – 2 Oct)
Transport Hub at Conference: The Big Transport Interview with Transport Minister Stephen Hammond
29 Sept 2013 – Opening his remarks, Mr Hammond said that ‘it would be a disaster to scrap’ High Speed 2 (HS2). Mr Hammond argued that HS2 would not take funds away from other transport schemes, pointing to the links between Manchester and Leeds. On the challenge of balancing a drive for economic growth with environmental concerns, he stated that HS2 and the electrification of the line to Liverpool would help to create a central economic hub in the north, comprising Manchester, Leeds and Liverpool.
Stephen Hammond speaking on Aviation
Mr Hammond noted that he had opposed a third runway at Heathrow as a Wimbledon MP at the last General Election. His position was that a third runway would not address the additional capacity needs of the UK, he explained, suggesting that the real question was whether to support a fourth or fifth runway.
If an increase in aviation capacity was to be delivered, cross-party support was essential, Mr Hammond said, arguing that this had been crucial in the early stages of the HS2 project, and was evident in the political make-up of the Davies Commission panel. Mr Hammond said that he suspected that the Commission’s initial report in December ‘will rule a number of ideas in’, such as the third runway at Heathrow, and ‘rule a number ideas out such as the Mayor of London’s proposed new airport development in the Outer Thames Estuary.
A representative of the Airport Operators Association said that ‘doing nothing was not an option’, and asked what the Conservatives were doing to build a consensus with the Labour Party. Replying, Mr Hammond said that the make-up of the Davies Commission was ‘more Catholic than you might expect’, with senior Labour transport figures as members. A Guardian journalist cited rumours that the DfT was prepared to ‘kick the delivery of short-term measures’ (recommended by the Davies Commission in its initial December report) ‘into the long-grass’. Mr Hammond rejected this, stating that it would be ‘absurd’ for the Department to reject proposals before it had seen them.
Conservative Conference – Transport Secretary Patrick McLoughlin’s speech to Conference
30 Sept 2013 – In his speech at the Conservative Party Conference Mr McLoughlin stated that transport continued to play a significant part in the UKs economic recovery. He referenced the announcement of investment in 15 transport infrastructure schemes, and noted international investment in major port projects. Mr McLoughlin affirmed his support for HS2.
Business Is Good For Britain: How can we encourage private investment and exports?
30 Sept 2013 – Conservative Leader of the House of Commons Andrew Lansley said that ‘manufacturing was increasingly a technology sector, and added that businesses in manufacturing were more likely to be in export markets than those in services’. Mr Lansley was speaking at a Conservative Party Conference fringe event hosted by the British Chambers of Commerce (BCC), supported by Heathrow Airport; entitled Business is Good for Britain: How can we encourage private investment and exports? alongside John Longworth, Director-General, British Chamber of Commerce (BCC); and John Holland-Kaye, Development Director, Heathrow Airport Ltd. The event was chaired by Sky News Business Presenter Joel Hills.
Solving the Aviation Conundrum: a simple and affordable plan for Heathrow
30 Sept 2013 – Greater private sector investment was needed to create a ‘boom’ in UK infrastructure, Steve Baker Conservative MP said today. Mr Baker was speaking at the event ‘Solving the Aviation Conundrum: A simple and affordable plan for Heathrow’ hosted by the Centre for Policy Studies and Runway Innovations Ltd at the Conservative Party Conference. Also speaking was: Allister Heath, City A.M. Editor; William ‘Jock’ Lowe, Director, Runway Innovations Ltd.; and Graeme Leach, Chief Economist and Director of Policy, Institute of Directors. The event was chaired by Tim Knox, Director, Centre for Policy Studies.
Air Tax, Visas, Connectivity: Does the UK have an aviation policy for growth?
1 Oct 2013 – Daniel Moylan Aviation Advisor to Mayor of London, said ‘the Heathrow expansion was a political failure and undeliverable’ He was speaking at a Conservative Party fringe event, hosted by the Transport Hub and its partners Airport Operators Association (AOA) and The Travel Association (ABTA) entitled Air Tax, Visas, Connectivity: Does the UK have an aviation policy for growth? Also speaking were: Stephen D’Alfonso, Senior Public Affairs and Research Manager, Association of British Travel Agents (ABTA); and John Longworth, Director-General, British Chamber of Commerce. The event was chaired by Darren Caplan, Chief Executive, Airport Operators Association (AOA).
Party Conference information is sourced from DeHavilland Information Services Plc.
Quinquennial Reviews of Designated Airports (Information relating to the CAA’s price control reviews of airports)
The Civil Aviation Authority (CAA) has powers under the Civil Aviation Act 2012 for the economic regulation of operators of airports in the UK that pass a market power test. Airports that pass the test will require an economic licence from 1 April 2014. The CAA is currently assessing whether Heathrow, Gatwick and Stansted pass the test and, if so, the conditions of their licences.
The Civil Aviation Authority (CAA) is consulting on its final proposals for the economic regulation of Heathrow and Gatwick airports after April 2014.
An overview of the CAA’s consultations for the airports can be seen here, with links through to the separate documents: Preparing for a future with passengers at its heart.
The consultation documents for each airport along with several associated documents can be found here: Economic Regulation of Heathrow, Gatwick and Stansted.
Responses to the proposals must be submitted to the CAA by 4 November 2013.
The CAA will publish its decisions on the economic regulation of the airports in January 2014.
The Mayor of London’s review of submissions to the Airports Commission (Long and short to medium term proposals)
In August 2013, the Airports Commission published all of the responses it had received to its call for outline submissions of potential long term options for additional airport capacity. The Commission also published a list identifying potential short to medium term initiatives.
In response to the Commission’s call for comments by 27 September 2013, Transport for London (TfL) have written, tendered and published their response to the proposals. The paper seeks to set out: a number of important issues which it believes are associated with a selection of the long-term submissions (with detailed comments in Appendix A); and the Mayor’s views on the key short to medium term options which have been identified by the Commission. The report suggests four options TfL believe the Commission needs to address
- There is no common set of assumptions across the submissions
- Dispersed expansion will not only be unable to meet connectivity needs, but it would also have significant cumulative impacts
- Heathrow cannot be the future hub airport – and its expansion may require financial support from Government
- Surface access requirements are underplayed, and almost all proposals will require financial support from Government
SASIG Bulletins for September are now available
The latest SASIG bulletin is available here.
Access to these articles will require membership login.
Aviation related highlights from the Labour Party Conference, Autumn 2013
Aviation related highlights from the Labour Party Conference, Autumn 2013 (22 Sept – 25 Sept)
Transport Hub at Conference: The Big Transport Interview with Shadow Secretary of State Maria Eagle
22 Sept 2013 – Speaking at a Labour Party fringe event, Transport Hub at conference, Labour Shadow Transport Secretary Maria Eagle said that she felt travel affordability was the main transport issue facing the country.
Discussing Labour’s policy review, the Shadow Transport Secretary said that one of the main priorities was affordability of transport fares. She added that any rise in fares should be capped at 1per cent above inflation for all routes. She went on to say that she supported devolution and putting councils and transport authorities in charge of bus routes and fares.
The top five train companies made over £300 million of profit, she highlighted, even though they were paid more money than they were charged in franchises. Talking about nationalisation, Ms Eagle said that it was a question of value for money. Labour wanted to do what works and lines should stay in public ownership where it worked well, she stated. Ms Eagle said that her speech would include references to the privatisation of rail lines. The privatisation of the East Coast Mainline should be halted and they should at least be able to bid for the future franchise, she stressed.
Business is good for Britain: How can we encourage private investment and exports?
23 Sept 2013 – Britain needs a state backed investment bank in order to maintain economic growth, Shadow Business Secretary Chuka Umunna said today. He was speaking at a Labour Conference fringe event hosted by the British Chambers of Commerce supported by Heathrow Airport titled ‘Business is Good for Britain: How can we encourage private investment and exports?’. Also speaking at the event were: Beth Rigby, Deputy Political Editor, Financial Times; John Longworth, Director General, British Chamber of Commerce; and Nigel Milton, Director of Policy and Political Relations, Heathrow Airport.
Labour’s new transport policy – what would it mean for cities?
24 Sept 2013 – Speaking at a PTEG event entitled ‘Labour’s new transport policy – what would it mean for cities?’ Shadow Secretary of State for Transport Maria Eagle said that a Labour Government should be more ambitious on the devolution of transport. Also speaking at the event were: Ken Livingstone, former Mayor of London; Graham Stringer MP PTEG Parliamentary Group; and David Brown, Chair of PTEG.
Air tax, visas, connectivity: Does the UK have an aviation policy for growth?
25 Sept 2013 – The Airport Operators Association’s Chairman, Darren Caplan, warned a Labour Conference fringe that the UK had slipped to twelfth in Europe for air connectivity, putting jobs at risk. Mr Caplan was speaking at an event entitled ‘Air tax, visas, connectivity: Does the UK have an aviation policy for growth?’ Also speaking at the event were: Martin Tiedemann, Co-Chair, Socialist Environment and Resources Association; Adam Marshall, Director of Policy and External Affairs, British Chamber of Commerce; and Brian Ross, Economic Advisor, Stop Stansted Expansion. The panel was chaired by Luke Pollars, Association of British Travel Agents and prospective parliamentary Labour candidate for Plymouth, Sutton and Devonport.
Party Conference information is sourced from DeHavilland Information Services Plc.
Geoff Muirhead steps down from his position at the Airports Commission
The Department for Transport has announced that Geoff Muirhead CBE, former Chief Executive of Manchester Airports Group, is to stand down from his role on the Airports Commission. Read more here.
Aviation related highlights from the Liberal Democrat Party Conference, Autumn 2013
Aviation related highlights from the Liberal Democrat Party Conference, Autumn 2013 (14 Sept – 18 Sept)
The Big Interview with Norman Baker MP – Aviation
15 Sept 2013 – On airport expansion and the future of Heathrow, the Minister said that the Liberal Democrats had taken the view that exponential growth of aviation was not viable. The projections were for an ever increasing percentage of carbon emissions originating from aviation. There was spare capacity at Luton, Stansted and Gatwick, he added. Mr Baker agreed that there should be a hub, possibly by a high speed link between Heathrow and Gatwick. The Davies Commission was a good idea and cross party agreement was essential for the future of airport capacity. Mr Baker stated that Sir Howard Davies was ‘competent’ and he was interested in what the recommendations would be.
Ministerial Q&A on Transport with Norman Baker MP
15 Sept 2013 – Aviation journey times should include travel to and from city centres, Liberal Democrat Transport Minister Norman Baker said today. Mr Baker was speaking at a Ministerial Question and Answer session on transport at the Liberal Democrat Party Conference in Glasgow.
A Vision for 2035: The Future of Aviation?
16 Sept 2013 – The Davies Commission was the last chance for the UK to maintain its global position as the leading aviation hub, the Liberal Democrat Party Conference Fringe heard today. Transport Hub and Chartered Institute of Logistics and Transport (CILT) in the UK hosted the event, ‘A Vision for 2035: The Future of Aviation?’ Speaking at the event were: Guy Lavis, Aviation External Affairs Lead – Transport for London; Martin Evans, MILT, Director and Aviation Advisor – CILT (UK); Nigel Milton, Director of Policy and Public Relations – Heathrow Airport; and John Morris, FCILT, Public Affairs Director – Birmingham Airport. The event was chaired by Vernon Murphy, Aviation Forum – CILT (UK)
Party Conference information is sourced from DeHavilland Information Services Plc.
High Speed Two: an engine for growth
This report presents analysis by KPMG which asserts that the planned High Speed 2 rail link (HS2) could grow the country’s economy by £15billion per year and that the regions outside London would benefit most from the project. The report, commissioned by HS2 Ltd, the company developing the new high speed link, also provides and analysis of the economic benefits for each HS2 city region (with variations in the impact on particular regions depending on assumptions as to competition business sensitivities) – For example the report estimates that HS2 will give the Birmingham city region economy a yearly boost equivalent to 2.1 – 4.2 per cent of the city region’s Gross Domestic Product. For Manchester city region the figure is 0.8-1.7 per cent, for Leeds city region, 1.6 per cent and for Greater London 0.5 per cent.
Based on analysis of how connectivity influences productivity and competitiveness today, the KPMG report examines the potential benefits of HS2 in a different way to those captured in more traditional appraisals.
A key facts document for the HS2 project can be found here.