SASIG 2012/13 Meeting Dates
Friday 1 March 2013
18 December 2012 – 4 January 2013 Regional, Industry and Government News
Regional, Industry and Government News
Civil Aviation Authority (CAA) announces decision in Aer Lingus Heathrow complaint case
The CAA has published its decision on a complaint made by Aer Lingus about landing charges for small aircraft and charges on airlines for passengers on domestic and Irish flights at Heathrow Airport.
Welsh Government reaches deal to buy Cardiff Airport to bring it into public ownership
The nationalisation of the airport comes after a few years which have seen declining passenger numbers and the loss of a number of key routes. Bristol Airport operators have said that it is seeking assurances that Cardiff Airport will be run on a commercial basis and will not receive subsidies from the Welsh Government; and have also questioned whether the acquisition of a commercial business operating in a highly competitive market is the best use of taxpayers’ money.
Government decision on international aviation emissions announced
Government will defer a decision on whether to include international aviation emissions in carbon budgets until the setting of the fifth carbon budget in 2016, by which point there should be more clarity on how aviation emissions will be tackled at an EU and global level. Caroline Flint, Shadow Energy and Climate Change Secretary, has issued a press release on the decision.
Analysis by the Department for Transport suggests that a 50% rise in air passenger duty at Heathrow and Gatwick would be high enough to persuade passengers to switch to airports like Luton and Stansted
The report, ‘Modelling the Effects of Price Differentials at UK Airports’, is being studied by several MPs, who are keen for it to be submitted as evidence to the Airports Commission. It suggests that applying different rates of tax at airports would create a better regional balance in passenger numbers and take pressure off Heathrow and Gatwick.
Civil Aviation Bill
The Civil Aviation Act has become law and paves the way for airports to offer better facilities and information for passengers
The new Act sees a number of key changes to the powers and responsibilities of the aviation regulator, the CAA, including: giving the CAA a single overriding duty for its airport economic functions to further the interests of passengers and owners of cargo in the provision of airport operation services; and giving the CAA more effective enforcement powers. The CAA will work to bring the new airport economic regulatory framework fully into force in April 2014.
Further details on the Civil Aviation Act can be found in an email from the SASIG office sent on 30 Dec. 2012 or on the SASIG website.
Publications
Institute of Directors report claims London needs three new runways
The report ‘Flying into the Future’, suggests that the majority of respondents (59%) feel that the lack of capacity at Heathrow Airport has an effect on inward investment in the UK and identifies a need to expand London airports.
Consultations
The Civil Aviation Authority has published for consultation its latest thinking on whether Stansted Airport should be fully de-regulated from 2014
The consultation is about whether the airport should be subject to economic regulation; it does not cover the type of regulation that any licence would contain, which would be consulted on in 2013.
House of Commons Questions
Timetable for the public consultation on operational freedoms at Heathrow Airport (see ‘Airports Commission’) – Goldsmith, Z – 19 Dec. 2012
Number of staff employed by the Airports Commission (see ‘‘Airports Commission’) – Goldsmith, Z – 19 Dec. 2012
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8-17 December Parliamentary and Government News
Government News
The Office of Budget Responsibility (OBR) has revised down forecasts for UK airline passenger numbers over the next five years
The anti-Air Passenger Duty (APD) campaign, A Fair Tax on Flying, has claimed the revision is evidence of a negative impact the tax is having on travel demand.
Leading aviation figures call for radical improvements to UK airspace to increase capacity and efficiency, and reduce environmental impacts – Civil Aviation Authority
Prime Minister David Cameron has rejected calls to speed up a review of airport in the south east of England
Mr Cameron said the Airports Commission review into UK airport capacity needed time to, “marshal all the arguments” over whether more runways should be built at Heathrow, Gatwick or Stansted or a new airport in the Thames Estuary.
Party Political Press Releases
Henry Smith MP (Cons; Crawley) Welcomes Successful Virgin Atlantic Bid As Good News for Crawley
House of Commons Questions
Inclusion of Shipping and Aviation Emissions in the UK Carbon Budget – Huppert, J – 13 December 2012 (see ‘Topical Questions’)
Assessment of the effects on the atmosphere of aeroplane contrails Aviation Exhaust Emissions – Leslie, C – 12 December 2012 (see ‘Environment and Climate Change: Aviation Exhaust Emissions’)
Westminster Committees
10 Dec. 2012 – Aviation Strategy – Transport Select Committee
During the inquiry, MPs were told that Heathrow Airport offered the best option for regional airports seeking to increase connectivity to the rest of the world.
The Committee heard from:
- Graeme Mason, Planning and Corporate Affairs Director, Newcastle Airport;
- Craig Richmond, Chief Executive Officer, Peel Airports and Regional Executive, Vantage Airport Group;
- Derek Provan, Managing Director, Aberdeen Airport;
- Darren Caplan, Chief Executive, Airport Operators Association
10 Dec. 2012 – Richard Deakin,Chief Executive Officer of the air traffic management organisation NATS, highlights the importance of airspace in his evidence to the Transport Select Committee Inquiry on Aviation Strategy
Mr Deakin said that the function of airspace was too often overlooked in the debate around future airport capacity in the south east of England, telling MPs that “airports only work with efficient airspace to support them.” Mr Deakin added that a 4-runway airport in the Thames estuary could not co-exist with Heathrow and London City as they operate today.
11 Dec. 2012 – Paul Kehoe, Chief Executive of Birmingham Airport gives evidence to MPs at the Transport Select Committee’s inquiry into aviation Appearing alongside other airport operators outside of the south east of England, Mr Kehoe argued that international connectivity is vital for regions across the UK if we are to grow the national economy.
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1-7 December Parliamentary and Government News
Government News
London Assembly’s Transport Committee begin call for evidence as London airport capacity investigation is launched
The investigation will look into existing capacity and will identify issues that the Government’s independent Airports Commission should take into account when considering the options for airport expansion. The Assembly aims to collect evidence and views from aviation experts, business leaders, environmentalists and the general public to ensure all opinions are considered.
The Committee will hold two public meetings with experts as part of its investigation on 15 Jan. 2013 and 6 Feb. 2013 and produce its findings by May 2013. It welcomes written submission until 28 Feb. 2013. The final report will be submitted to the Airports Commission in May 2013.
Transport Minister Simon Burns to visit Manston Airport to discuss new airport rail links
Director General for HS2 announced as David Prout, currently a Director General at the Department of Communities and Local Government
Mr Prout will join the Department for Transport in the New Year in a newly-created post taking charge of the delivery of HS2.
Autumn Statement
Association of British Travel Agents comment on air passenger duty rise
British Air Transport Association (BATA) comment on Autumn Statement Responding to today’s Autumn Statement, Simon Buck, Chief Executive of BATA said, “While we welcome the Chancellor’s announcement of over a billion pounds of additional investment in UK road transport infrastructure, we regret that the Coalition Government continues to stand in the way of private investment in new runway capacity where it is most needed. “
DeHavilland, SASIG’s Parliamentary monitoring service has produced briefings on the Autumn Statement: implications of the Statement on investment in energy and the environment and a second briefing on transport and infrastructure.
Westminster Committee
Heathrow and Gatwick airport bosses clash over Heathrow third runway during Transport Select Committee meeting over aviation policy and competition
Stewart Wingate, Gatwick chief executive, told the Commons Transport Select Committee he would oppose a third runway at Heathrow and wanted to see Gatwick develop as a competing hub airport. He rejected suggestions that the South East was facing an airport crisis and said: “There’s a lot of capacity in the system. The challenge is how to make better use of it in the short term.”
Colin Matthews, Heathrow chief executive, told the committee a third runway was needed at Heathrow to strengthen its role as a premier hub airport and avoid losing international business. He said that since 2003 Heathrow had lost the equivalent of 1,500 flights to China because there were no take-off and landing slots for them.
Airports review is doomed to gather dust, British Airways (BA Ltd) chief executive warns Transport Select Committee
BA Ltd Chief Executive, Willie Walsh, suggested the government’s airports review will simply end up on a shelf, and major airlines will, “still be operating from a two-runway airport at Heathrow in 2050”. He added that airlines will only pay for expansion at Heathrow.
The full debate can be found here.
House of Commons Questions
Secretary of State discussions with airlines on the introduction of transatlantic and trans-Asian routes from Liverpool Airport (see ‘Liverpool Airport’) – Rotheram, S – 30 Nov. 2012
Assessment of the potential effect of a third runway at Heathrow Airport on air pollution – Goldsmith, Z – 3 Dec. 2012 – (see ‘Heathrow Airport: Air Pollution’)
Evaluation of plans to allocate £0.5bn for a western rail connection to Heathrow Airport – Clifton-Brown, G – 3 Dec. 2012 – (see ‘Heathrow Airports: Railways’)