Editor’s Highlights
As anticipated, the return of Parliament after the summer recess, foreshadowed a busy September with aviation policy the subject of several debates in the House of Commons (see below) and an above average number of PQ’s. The industry is also rarely out of the national and regional news as concerns about job losses in the sector grows and aviation searches (thus far vainly) for the arguments that will persuade the Government to offer a sector specific deal, similar to those that have by now been provided in North America and almost all European members states.
In these circumstances, continuity of leadership and expertise is usually important. The SoS, a known supporter of aviation, remains in post, but the Aviation Minister portfolio has again changed hands with Robert Courts taking over from Kelly Tolhurst (who has moved to MHCLG), the seventh such change in the last 5 years. Fortunately, the new Minister is known to have a personal interest in aviation and he has made an early start in meeting industry representatives. SASIG will be seeking a meeting with him later in the autumn.
SASIG submitted its research on Business Rates to DfT during the month – the supporting position statement has been included in the library section of the member website. We understand, that both items were also shared with Treasury and are being used by AoA to lobby Government through different channels.
The next SASIG meeting is set for 1 October and will be conducted virtually. It will also act as the Group’s AGM for 2020. The guest speaker is from Logistics UK (formerly the Freight Transport Association) and is followed by a workshop on emerging aviation technologies which has attracted a lot of interest from none member authorities because of the significance the subject matter (drones, urban air mobility systems, electric aircraft and automation) will have for all authorities over the next decade.
Monthly Highlights
1st September – Parliament returned from Summer recess and Spaceflight Regulations Consultation published.
7th September – Government to review airport slot allocations. DfT has announced it will form part of a five-year recovery plan for the aviation industry.
7th September – Promises of a forthcoming Government strategy for the recovery of the aviation sector published in a DfT response to the TSC’s Report: “The impact of the coronavirus pandemic on the aviation sector.”
8th September – Robert Courts MP appointed new Aviation Minister, taking over from Kelly Tolhurst MP.
9th September – SASIG/DfT Liaison Group meeting.
23rd September – Economic regulation of Heathrow: working paper published. This working paper sets out details of CAA’s proposed approach to reviewing Heathrow Airport Limited’s (HAL’s) capital expenditure incurred during the Q6 price control.
Events, Meetings and Conferences
SASIG Meetings
1st October 2020: 10:30am-1pm: SASIG full meeting/afternoon workshop: Virtual meetings via Zoom.
16th December 2020: 11am-1pm: SASIG full meeting/afternoon workshop (Virtual meetings via Zoom) (Please note: this date has been changed from 19 November 2020).
External Conferences (please note: some changes due to COVID-19 crisis)
5-6 October 2020: British-Irish Airports EXPO: has been cancelled for 2020.
19 October 2020: Airlines 2050: London
30 November – 4 December 2020: Routes Reconnected: Virtual and Amsterdam.
December 2021: 9th European Aviation Conference: Heilbronn, Germany
Parliamentary and Government News
The House of Commons rose on 22 July 2020 for the Summer Recess and returned on 1 September 2020.
The House of Lords rose on 29 July 2020 for the Summer Recess and returned on 2 September 2020.
8th September – Robert Courts MP appointed new Aviation Minister, taking over from Kelly Tolhurst MP.
16th September – In PM’s questions, Steve Double (St Austell & Newquay) asked about regional airports, which have been hit by the closure of Flybe. PM responded that Government will continue to consider applications for public service requirements and to consider the case for cutting APD although no commitment could be made right now.
16th September – TSC heard from Chairman and CEO of British Airways about the current challenges facing the aviation sector and BA staffing plans. Transcript can be seen here.
Transport Questions: House of Commons:
1st September – Spaceflight Regulations: Consultation
A consultation on draft regulations and guidance made under the 2018 Space Industry Act was published following the ministerial statement made on 29th July 2020. Details here.
1st September – Radlett Airfield Site
A debate regarding the possible development of the disused Radlett Aerodrome in Hertfordshire and the associated planning issues may be seen here.
7th September – International Travel
Secretary of State for Transport, Grant Shapps, made a statement concerning international travel corridors. The statement may be seen here.
10th September – Aviation Sector
A debate regarding the current position of the aviation sector and what the Government can and is doing to assist can be seen here.
17th September – Aviation Sector Jobs
The new Aviation Minister was asked what recent discussions he has had with Cabinet colleagues on helping to protect the jobs of workers in the aviation sector. See here.
Transport Questions: House of Lords
9th September – International Travel
The statement given by the Secretary of State for Transport, Grant Shapps, in the House of Commons on 7 September, was read out in the House of Lords and can be seen here.
Parliamentary Questions:
Q.1. Question (HL7810) asked by Baroness Randerson on 3 September 2020: “To ask Her Majesty’s Government what assessment they have made of the impact on Crawley and the surrounding area of the redundancies announced by Gatwick Airport; and what plans they have to provide additional support to the local authorities concerned”.
A. Lord Greenhalgh on 17 September 2020: “Government is working with the Crawley Economic Recovery Task Force to support Crawley and the surrounding area. We have provided local authorities with an unprecedented package of support, allocating £4.3 billion of support for spending pressures, including £3.7 billion of un-ringfenced grants and the £600 million Infection Control Fund. Crawley Borough Council have received £1.39 million in emergency grant funding. We are also supporting local authorities to help local businesses. Government has put forward a package of support for businesses to help with ongoing business costs in recognition of the disruption caused by Covid-19. This includes the Small Business Grants Fund (SBGF), the Retail, Hospitality and Leisure Grants Fund (RHLGF) and the Local Authority Discretionary Grants Fund (LADGF). As of 30 August, Crawley Borough Council have paid out over £12.5 million to 886 business premises under the SBGF and RHLGF. They are also working hard to deliver grants to local businesses under the LADGF. Government has recently awarded the Coast to Capital LEP £19.2 million from the new Getting Building Fund for a wide range of projects that will deliver a much-needed boost to the local economy. Over £8 million has been awarded to a proposal to create a new innovation centre in Crawley, bringing together major innovation-led businesses. We have recently received Crawley’s Town Investment Plan as part of the government’s Towns Fund. This sets out Crawley’s vision to drive the sustainable economic regeneration of Crawley, accounting for Covid-19 impacts, to deliver long term economic and productivity growth. Government is currently reviewing Crawley’s Town Investment Plan and will respond shortly. We will continue to work closely with all local authorities as they support their communities through the pandemic”.
Q.2. Question (HL7808) asked by Baroness Randerson on 3 September 2020: “To ask Her Majesty’s Government whether they have suspended meetings of the expert steering group representing airports; if so, why; how they intend to liaise with airports on the impact of the COVID-19 pandemic on airports across England; and when they last held discussions with the representatives of each airport in England”.
A. Baroness Vere of Norbiton on 17 September 2020: “The Department momentarily paused all non-essential official-led engagement with the aviation sector ahead of Parliament returning, taking the opportunity to review how we engage with industry, both in terms of sharing information and for giving industry the opportunity to feedback as policy develops. Engagement has now restarted, with the Secretary of State having personally spoken to numerous stakeholders. A revised Expert Steering Group, as well as other forums for engagement have now resumed and we remain committed to an open dialogue with the sector”.
Q.3. Question (85063) asked by Ruth Cadbury (Brentford & Isleworth) on 4 September 2020: “To ask the Secretary of State for Transport, what representations his Department has received from (a) British Airways and (b) International Airlines Group on the Governments support for the aviation sector”.
A. Andrew Stephenson on 9 September 2020: “The Department for Transport has been in regular contact with airlines, airports, ground handlers and unions to understand the impact of COVID-19 on the companies and their workers. It would be inappropriate to comment on discussions held with individual companies. The aviation sector is essential to the UK economy, and companies can draw upon the unprecedented package of measures, including: schemes to raise capital, flexibilities with tax bills, and financial support for employees. If airlines find themselves in trouble because of coronavirus, and have exhausted the measures already available to them, the Government is prepared to enter discussions with individual companies seeking bespoke support as a last resort, having exhausted all other options? Any intervention would need to represent value for money for taxpayers”.
Q.4. Question (86692) asked by Drew Hendry (SNP) on 8 September 2020: “To ask the Secretary of State for Transport, what assessment he has made of the potential merits of introducing covid-19 testing for all arrivals at airports”.
A. Andrew Stephenson on 11 September 2020: “The Government is actively working on the practicalities of using testing to release people from self-isolation earlier than 14 days. Officials across the Government are working with health experts with the aim of cutting the self-isolation period without adding to infection risk or infringing on our overall NHS test capacity. The Secretary of State for Transport has committed to updating the House on testing of international arrivals in the coming weeks”.
Q.5. Question (85093) asked by Sarah Olney (Richmond Park) on 4 September 2020: “To ask the Secretary of State for Transport, what plans the Government has to introduce covid-19 testing for departures and arrivals at airports”.
A. Andrew Stephenson on 14 September 2020: “We are actively working on the practicalities of using testing to release people from self-isolation earlier than 14 days. Department officials are working with health experts with the aim of cutting the self-isolation period without adding to infection risk or infringing on our overall NHS test capacity”.Q.6. Question (HL7605) asked by Lord Berkeley on 2 September 2020: “To ask Her Majesty’s Government when the Department for Transport plans to update the data on (1) public experiences of, and attitudes towards, air travel, (2) public attitudes to climate change and the impact of transport, and (3) aviation statistics information; and when each of these were last updated”.
A. Baroness Vere of Norbiton on 16 September 2020: “The Department for Transport has previously published a statistical publication entitled “Public experiences of, and attitudes towards air travel”, last released in 2014. This presented analyses of a short set of questions relating to air travel that were placed into the Office for National Statistics’ Opinions and Lifestyle Survey. These questions have since been suspended. Information about UK consumers’ behaviour and attitudes towards commercial aviation can now be found in the Civil Aviation Authority’s (CAA) Aviation Consumer Survey and the corresponding reports are published on the CAA website. The Department for Transport published the National Travel Attitudes Study: Wave 3 in August 2020 which included information around attitudes to climate change. The National Travel Attitudes Study is a bi-annual survey used to collect information on public attitudes towards travel and transport. The Department for Transport’s compilation of aviation statistics is released annually in the AVI tables series alongside the release of the Department’s annual statistical compendium entitled “Transport Statistics Great Britain”. These aviation statistics were last released in December 2019 and are currently scheduled to be updated in December 2020. Information relating to statistics for UK airports is also available directly from the CAA website”.
Q.7. Question (86671) asked by Seema Malhotra (Feltham & Heston) on 8 September 2020: “To ask the Secretary of State for Transport, when he plans to publish his strategy for the recovery of the aviation sector following the covid-19 outbreak”.
A. Andrew Stephenson on 11 September 2020: “The government have been developing a recovery plan for aviation, and are aiming for this to be published this autumn”.
Q.8. Question (HL8192) asked by Baroness McGregor-Smith on 16 September 2020: “To ask Her Majesty’s Government how much financial support they plan to provide to the aviation industry in the UK to support that industry during the COVID-19 pandemic; and how they calculated the amount of such support required”.
A. Baroness Vere of Norbiton on 30 September 2020: “The aviation sector is crucial to the UK’s economy and businesses across the industry are able to draw on the unprecedented package of economic measures we have put in place during this time. This includes a Bank of England Covid Corporate Financing Facility scheme and the job retention scheme, both of which have been used by the aviation sector. In exceptional circumstances, where a viable company has exhausted all options and its failure would disproportionately harm the economy, the Chancellor has made clear, the Government may consider bespoke support on a ‘last resort’ basis. We will notify Parliament of the spend incurred as a result of any deal”.
Q.9. Question (HL8083) asked by Baroness Randerson on 14 September 2020: “To ask Her Majesty’s Government what plans they have to waive the rules applying to the use of slots by airlines; whether they plan to make a statement to this effect; and if so, when”.
A. Baroness Vere of Norbiton on 28 September 2020: “On 14 September, the European Commission published their intention to extend the current airport slot waiver for the 2020/2021 winter season, until 27 March 2021”.
Q.10. Question (88322) asked by Seema Malhotra (Feltham & Heston) on 10 September 2020: “To ask the Secretary of State for Transport, what progress he is making on plans for the development of a southern rail access to Heathrow”.
A. Chris Heaton-Harris on 15 September 2020: “Southern Access to Heathrow (SAtH) would provide extensive benefits to the areas surrounding Heathrow and the South East of England, making getting to the airport quicker, easier and greener for millions of travellers in the boroughs surround the airport, across the south of England as well as creating regeneration opportunities and making Britain a more attractive place to invest and connect UK exporters to new international markets. While a fast pace on SAtH is important, the scheme is very much in its infancy, and there is as yet much to be developed. It is crucial to the success of the project that time is taken in this early stage to ensure that the initial outcome based specification and commercial model on which the scheme will developed, are appropriate and the right solution to ensure value for money to the fare payer, the scheme proposer and the tax payer. My Department continues to work closely with the market, including scheme promoters, operators and capital investors, along with the wider private sector and following Ministerial approval and alignment to the HM Treasury Infrastructure Finance Review; my Department intends to provide further guidance to the market regarding the commercial approach for SAtH early in 2021. We also are continuing to work alongside Network Rail and Heathrow Airport Limited, to integrate with Western Rail Link to Heathrow, while ensuring alignment with other major infrastructure projects, to guarantee the most efficient design and delivery of SAtH.
Q.11. Question (88874) asked by Seema Malhotra (Feltham & Heston) on 16 September 2020: “To ask the Secretary of State for Transport, what discussions he has had with the Chancellor of the Exchequer on the alleviation of business rates for airports in England and Wales; and if he will make a statement”.
A. Robert Courts on 16 September 2020: “Business rates are managed by HM Treasury in conjunction with the Ministry of Housing, Communities and Local Government and Local Authorities. The Department for Transport and HM Treasury have been engaging closely with industry, through the Expert Steering Group, to understand their assessment of the outlook for the sector and implications of any sector specific support measures, including business rates”.
National and Regional News
1st September – Gatwick has said demand for air travel may not return to pre-pandemic levels for five years. It’s announced a £321million loss in the first half of 2020.
2nd September – Arrivals hall at Teesside Airport undergoes major transformation. Upgrades are being carried out to support local businesses and workers.
3rd September – Heathrow may axe 1,200 jobs due to crippling downturn in passenger traffic. Consultations have started with unions over pay cuts and changes to benefits.
3rd September – Luton Airport has announced the appointment of Jonathan Rayner to the role of chief commercial officer. He will join the team in early November.
3rd September – Tory councillors are demanding a rethink of decision to shut easyjet airline base at Southend Airport. Motion will be debated at the council next week.
5th September – An article in News Digest titled: ‘London’s 6 airports – How do they compare?’ can be seen here.
6th September – London Heathrow and British Airways in dispute over £500m charge. It relates to abandoned expansion plans.
7th September – Images of what Leeds Bradford Airport’s new terminal will look like if approved, may be seen here.
8th September – Drivers struggling to park near Southend Airport are inconveniencing residents. Southend Council is considering a series of options to address the problems.
9th September –According to a survey by London City Airport, 71% of senior executives think removing current restrictions in favour of a testing programme would give firms confidence to begin travelling again.
9th September – Loganair announces next summer’s schedule. Routes include Newquay to Newcastle and Scotland and Exeter to Scotland.
9th September – Union says Gatwick Airport risks becoming a ‘ghost town’ after the C-19 crisis. More than 6,000 jobs have been lost since the start of the pandemic.
10th September – An article in Airport Review titled: ‘London Heathrow: Britain’s front door for passengers and cargo’ can be seen here.
11th September – Cornwall Spaceport funding could be cut to cover airport C-19 losses. Cornwall Council will consider this option at a meeting next week.
14th September – ‘Bitter blow’ for Southend Airport as new easyjet flights are cancelled. The new route to Bergen had only just been launched.
14th September – Jobs to go as London City Airport confirms restructuring. It’s announced plans to cut a third of its workforce.
14th September – Luton Airport urges Government for support. However, passenger numbers for August were an improvement on July.
14th September – Councillor calls for independent investigation over Judicial Review resolution. It is regarding the granting of a development order for Manston airport.
15th September – The first Teesside to Heathrow flight in ten years has taken off. The new service will run daily.
15th September – Reports says council is set to take out £60million loan on Luton Airport. For details see here.
16th September – New plans for rail service to link Gatwick with Canterbury, Ashford and Tonbridge. Kent County Council are seeking to lobby DfT for cross-country service.
16th September – Lockdown lifestyles drive up growth of cargo and MAG-owned East Midlands and Stansted Airports. See further details here.
17th September – Bristol Airport has lodged appeal against refusal to expand for more passengers. The appeal has been submitted in the past few days.
18th September – It’s reported that 60% of public comments so far are against expansion of Leeds Airport. See here.
21st September – 90 Southend Airport staff facing axe in latest redundancy blow. Redundancy consultations are now underway.
21st September – Heathrow boss urges Government to open up UK-US route. He asks that government gives its backing to an airport testing trial to avoid losing trade deals.
21st September – Leeds Bradford Airport replacement Terminal plans to be discussed this week. The airport submitted an application earlier this year.
22nd September – Mayor Andy Burnham wants Govt to extend furlough scheme and listen to regional voices. He says businesses like Manchester Airport may ‘disintegrate’ if not.
23rd September – Council unhappy with Bristol Airport’s decision to appeal expansion refusal. They feel it is not the right time whilst in a Climate emergency.
23rd September – Heathrow rail link to be delayed for up to two years. Planning application for the scheme which would allow people living to the west of Heathrow to travel direct to the airport, had been expected this year.
23rd September – Economic regulation of Heathrow: working paper published. This working paper sets out details of CAA’s proposed approach to reviewing Heathrow Airport Limited’s (HAL’s) capital expenditure incurred during the Q6 price control.
24th September – Luton Airport hotel set for approval. Site earmarked for the development is the surface car park of the existing Courtyard by Marriott Hotel at Luton Airport.
25th September – Parking problems around Southend Airport may run for another two years. Plans to resolve this issue have been delayed further by COVID-19.
25th September – Loganair announce route from Newquay to Manchester starting next year. The service was previously run by Flybe.
27th September – There are fewer destinations from Southend Airport due to C-19 pandemic. Alicante and Majorca however still remain.
28th September – Financial package for Exeter Airport set to be agreed by council. The demise of Flybe and the C-19 pandemic have had significant impact on the airport.
29th September – Bristol Airport looks to acquire land for expansion. It’s applied for Compulsory Purchase Orders covering 22 pieces of land to improve road access.
30th September – MAG enlists advisory service to provide support in areas such as capacity planning and modelling, development and asset management, operations, maintenance, business advice and operation readiness.
Other Aviation Industry News
1st September – ACI has published its fourth COVID-19 economic impact analysis bulletin. The industry is predicted to record $104.5billion reduction in revenue for 2020. More here.
1st September – Shannon Airport described as ‘key influencer’ for attracting foreign direct investment in Ireland’s mid-west. Solution to maintaining aviation connectivity is needed.
1st September – An article in Business Travel News titled: “Analysis: The changing face of aviation” can be seen here.
3rd September – Claims of the ‘demise’ of UK aviation’ made. Leading figures in UK aviation have expressed frustration that Government is still not backing C-19 testing at airports.
4th September – UK criticised over airport C-19 tests with ’30 countries already doing them’. There are claims it is killing the travel industry and international trade.
4th September – Airlines and airports agree conditions for European winter slots waiver. Further details may be seen here.
6th September – Charges for dropping off and picking up people at Dublin Airport to be introduced. Approval is being sought from planning authorities.
6th September – Labour demands airport testing review to cut quarantine. They want a ‘robust testing regime’ to help the ailing tourist industry.
7th September – Airports applaud EC Coordination Framework as “stalled” recovery figures are released. Further details may be seen here.
7th September – Government to review airport slot allocations. DfT has announced it will form part of a five-year recovery plan for the aviation industry.
8th September – An article in Airport Review titled: ‘Airport Cities: More than just offices, hotels and restaurants’ can be seen here.
8th September – Remote ATC plans prove unpopular with council. There are fears airports like Sumburgh are being ‘experimented on’ as part of HIAL plans to centralise ATC.
9th September – Ryanair says it will close its bases at Cork and Shannon airports if quarantine restrictions are not lifted. Further details may be seen here.
10th September – An article in Airport Technology titled: ‘Companies to decrease business travel over the next 12 months due to COVID-19: Poll’ can be seen here.
11th September – IATA proposes 4-point plan to support UK aviation industry. It comes when air transport crisis in UK threatens around 820,000 jobs across the entire economy.
13th September – Airport Operators Association slams government scrapping of airport tax free sales. Further details may be seen here.
14th September – Cork Airport has called for Green List reform in 5-point plan to save its future. Cork Airport management met with local Oireachtas members today.
14th September – Duty free bargains on perfume, clothes and electronics will end on 1 January 2021. Tax savings will now only apply to alcohol and tobacco.
16th September – ICAO is set to recommend further C-19 airport testing. Recommendations will follow next month after a meeting held yesterday.
16th September – BA boss tells MPs that the airline is ‘fighting for survival’. He defends axing up to 12,000 jobs.
17th September – An article in Daily Mail on the ‘aviation abattoir’ where Boeing 747s get laid to rest, can be seen here.
17th September – An article in GlobalData about contactless technologies in travel and tourism may be seen here.
20th September – UK retailers, hoteliers and airport chiefs warn the chancellor that scrapping tax-free shopping for international tourists has put 70,000 jobs in jeopardy.
20th September – Ryanair re-iterates Cork, Shannon bases winter closure warning. Aviation industry needs immediate decisiveness from Government says airline.
22nd September – IATA calls for worldwide airport testing to replace quarantine measures. Further details may be seen here and here.
24th September – Fears Irish regional airports may suffer in ‘2-tier’ recovery. Tánaiste Leo Varadkar thinks Dublin will bounce back quickly but is concerned for Cork and Shannon.
27th September – AGS Airports test new sustainable security product in three UK airports. They aim to replace over 2million single-use plastic bags used each year across the group.
29th September – An article in Politics Home titled: ‘Time is running out to save airport communities’ can be seen here.
29th September – Dublin Aerospace takes over Flybe’s aircraft servicing base at Exeter Airport. The company has established Exeter Aerospace at the facility.
29th September – CEO of Whizz Air thinks slot waivers are ‘nonsense’. Airline wants to expand in airports like Gatwick but is being blocked because the slots are being protected.
30th September – Prestwick Airport sale grounded after bidder pulls out. The prospective buyer walked away following the impact of the coronavirus on aviation.
30th September – Further support measures for Shannon and Cork Airports are being considered. This is according to the transport junior Minister.
30th September – An article in the Independent titled: “What will airports be like post-pandemic?” can be seen here.
SASIG Library Additions
There were no Library Additions this month.