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. Yet despite this milestone there is still a long way to go and many obstacles to overcome – including judicial reviews, the DCO process, a new regulatory settlement and quite possibly a general election before the runway becomes a certainty.
The Committee on Climate Change 2018 Progress report also reminded the Government it has even longer horizons to keep in mind, by indicating 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), supported by strong international policies”
In the interim: 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 has not yet been made on MAG’s planning application to grow Stansted to 43.5mppa; Ryanair announced the opening of a new base at Southend; the British-Irish Airports Expo was a considerable success and is an event SASIG will look to participate more actively in next year; 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 its current just-in-time and tariff free manufacturing processes to continue.
Brexit related activity is likely to take centre stage for the aviation sector in the coming months, with the prospective judicial reviews also likely to attract a lot of column inches. It is therefore reassuring to know that DfT is also continuing to work on a broader long-term strategy for the aviation sector, and that it is engaging constructively with SASIG while doing through the Airspace and Noise Engagement Group, attendance at SASIG events and bi-lateral meetings with Ministers and officials. A Green Paper is promised in October and a White Paper towards the middle of next year.
Monthly Highlights
5th June – Government publishes National Airport Policy.
5th June – Secretary of State for Transport makes statement to Parliament about the proposal for a third runway at Heathrow.
5th June – DfT publishes ‘Addendum to the Updated Appraisal Report Airport Capacity in the South East’.
12th June – Aviation Minister Baroness Sugg gives keynote speech to the British-Irish Airports Expo.
21st June – A series of policy papers were published by the Government regarding the proposed Heathrow third runway.
25th June – Government voted to support Heathrow expansion/third runway.
25th June – Luton Airport begins consultation on expanding by making best use of its runway.
Events, Meetings and Conferences
SASIG Meetings
– 11th July 2018: SASIG full meeting/AGM followed in the afternoon by a workshop on Surface Access to Airports issues. Jointly sponsored by RABA and AOA with guest speakers from Highways England and DfT. (Venue: LGA, Smith Square, London)
– 16th November 2018: SASIG full meeting (Venue: LGA, Smith Square, London) followed in the afternoon by a workshop on Airports, Cities and Economic Growth.
External Conferences
– 3rd-5th July 2018: LGA Annual Conference & Exhibition: ICC, Birmingham.
– 10th July 2018: 1st annual (2018) UK Airport Infrastructure Development Forum: Pinsent Masons, London. Successfully delivering new infrastructure, expansion and improving connectivity at airports.
– 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
(Parliament rose on 24th May for the Whitsun recess and returned on 4th June).
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 Limited. The statement 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 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 can be seen 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:
Q.1. Question (149090) asked by Luke Pollard (Plymouth, Sutton & Devonport) on 1st June 2018: “To ask the Secretary of State for Transport, whether the Government has a policy on the re-opening of Plymouth City Airport; and if he will make a statement”.
- Jesse Norman on 11th June 2018: “The Government published in December 2016 a study on the findings from previous reports commissioned by interested parties on the potential viability of renewed commercial passenger services from the former airport. As aviation operates in the private sector, it will be for Plymouth City Council and Sutton Harbour Holdings, as respectively owner and leaseholder of the airport site, to consider any plans put forward by potential investors for re-instating aviation operations from the airport”.
Q.2. Question (149094) asked by Luke Pollard (Plymouth, Sutton & Devonport) on 1st June 2018: “To ask the Secretary of State for Transport, on how many occasions the power under section 41 of the Civil Aviation Act 1982 to acquire and manage land for any purpose connected to civil aviation has been used; and on what dates that power was exercised”.
- Jesse Norman on 11th June 2018: “The power under Section 41 of the Civil Aviation Act 1982 to acquire and manage land has never been used for any purpose connected to civil aviation”.
Q.3. 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”.
- 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”.
Q.4. Question (151120) asked by Justine Greening (Putney) on 7th June 2018: “To ask the Secretary of State for Transport, what estimate he has made of the number of new pages of documentation that have been published as part of his Department’s Airport National Policy Statement on 5 June; and if he will provide a list of those documents”.
- Jessie Norman on 12th June 2018: “The Department has made no estimate of the pages of new information published. On 5 June, the Secretary of State laid in Parliament the Airports National Policy Statement (NPS). As required under the Planning Act 2008, this was accompanied by an Appraisal of Sustainability and the Government response to the Transport Committee scrutiny of the draft NPS. The Government has also published “The proposed expansion of Heathrow: a summary” and a non-technical summary of the Appraisal of Sustainability to provide an overview of these documents. To assist readers, the Government has published change logs of amendments made to the NPS and the Appraisal of Sustainability since published for further consultation on 24 October. In addition we have published: a Habitats Regulations Assessment, an Equality Assessment, and a Health Impact Analysis, each accompanied by change logs listing amendments made since consultation; a report from the Independent consultation advisor on the October consultation; a summary of the responses to the October consultation; the Government’s response to the two public consultations; nine regional fact sheets; the key findings of an external report on Heathrow Airport Limited’s (HAL) delivery plans; an external review of proposed the capacities of HAL’s north-west runway and Heathrow Hub Limited’s extended northern runway; and a new Addendum to the “Updated Appraisal Report: Airport Capacity in the South-East”.
Q.5. 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”.
- 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”.
Q.6. 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”.
- 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.
Q.7. Question (151110) asked by Sir Mike Penning (Hemel Hempstead) on 7th June 2018: “To ask the Secretary of State for Transport, when the timetable is for the appointment of a Head Commissioner for the Independent Commission on Civil Aviation Noise; and if he will make a statement”.
- Jesse Norman on 14th June 2018: “The recruitment process to appoint a Head Commissioner for the Independent Commission on Civil Aviation Noise is under way, and an announcement will be made as soon as an appointment is confirmed”.
Q.8. Question (151111) asked by Sir Mike Penning (Hemel Hempstead) on 7th June 2018: “To ask the Secretary of State for Transport, what progress has been made on the proposed Luton Airport airspace changes Luton 26 BPK RNP1 SID; and if he will make a statement”.
- Jesse Norman on 14th June 2018: “This proposed airspace change is being considered under the Civil Aviation Authority’s (CAA) CAP 1616 airspace change process. Progress can be monitored on the CAA’s website at the following link entitled “London Luton – departure procedures”:
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”.
Q.9. 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”.
- 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”.
Q.10. 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”.
- 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”.
Q.11. Question (HL8377) asked by Lord Selkirk of Douglas on 5th June 2018: “To ask Her Majesty’s Government whether they plan to take steps to ensure no future allocation of lower airspace takes place until a policy on the allocation of lower airspace has been agreed and implemented by the Civil Aviation Authority”.
- Baroness Sugg on 19th June 2018: “Airspace is allocated in accordance with the Civil Aviation Authority (CAA) classifications of airspace. As set out in the Civil Aviation Authority (Air Navigation) Directions 2017, the CAA is responsible for the policy on the classification of UK airspace, how this is implemented, as well as its modification through the CAA’s airspace change process. The government has no plans to review this”.
Q.12. 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”.
- 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”.
Q.13. Question (152750) asked by Zac Goldsmith (Richmond Park) on 12th June 2018: “To ask the Secretary of State for Transport, whether he has undertaken an assessment of the financial viability of using public service obligations to support regional airports; and if he will make a statement”.
- Jesse Norman on 15th June 2018: “As the Department’s ‘Guidance on the Protection of Regional Air Access to London’ states, the Department will conduct a Value for Money assessment on the economic case for any bids for funds. This was undertaken on each of the existing PSO routes to London, from Newquay, Dundee and Londonderry”.
Q.14. 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”.
- 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
1st June – Passengers at Manchester Airport will no longer be able to be dropped off outside airport doors for free. They’ll have to pay a fee or be dropped off over a mile away.
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.
6th June – Work began this week on new taxiway at Manchester Airport. It is the start of a reconfiguration of the airfield.
6th June – Airport expansion is no longer a pipe dream but a necessity. Former transport secretary Lord Adonis told ITT delegates this in Sicily this week.
8th June – Liverpool Airport completes final phase of its upgrade. The works have lasted for 18 months.
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.
11th June – An article in Airline Economics about the uncertain effects of the proposed third runway at Heathrow can be seen here.
11th June – Luton Airport boss says Heathrow 3rd runway will not solve capacity problems. He says regional airports need to be able to meet their full potential with improved rail links.
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.
18th June – Work started today to upgrade M23 near Gatwick Airport. It will take 2 years to complete but M23 is a key strategic road connecting Crawley and Gatwick to the M25.
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.
19th June – Heathrow’s capacity issues are hindering connectivity says an article in Air Traffic Management which can be seen here.
20th June – House of Commons is to vote on Heathrow expansion next week. This follows the approval of the plans by the Cabinet.
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 – Stansted earns carbon neutral airport status. It’s been awarded Level 3+carbon neutral status by ACI in recognition of its work to reduce and offset carbon emissions.
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 – Farnborough Airport has been awarded carbon neutral status. It is the world’s first business aviation airport to do so.
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 – Bristol Airport named best in Europe in 5-10 million passenger category. The award was given by ACI.
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.
5th June – Government publishes National Airport Policy. Details can be seen here.
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.
14th June – Cardiff Airport to set future plans following growth. It says it will be unveiling its Masterplan, which will detail its development vision up to 2040.
19th June – ACI Europe releases its 2018 Airport Industry Connectivity Report at the 28th ACI EUROPE & ACI WORLD Annual Assembly, Congress & Exhibition in Brussels.
20th June – MSPs discuss Prestwick Airport. Non-executive chairman tells the committee that investment in the airport is “being matched with a relentless pursuit of new business”.
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20th June – MP’s and residents’ request to extend Edinburgh flight path consultation are denied. Edinburgh airport bosses are satisfied enough has been done so far.
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.
SASIG Library Additions
A consultation programme and summary of key milestones for SASIG can be seen here.