Editor’s Highlights

October is often a busy month for aviation policy announcements as Ministers are back from their summer holidays and because it is conference season and Budget time, they are anxious to have policy to announce or to get unfinished business delivered before Parliament is prorogued for the Queens Speech. October 2021 has proved to be no different to many others.

From the industry’s point of view the most important development was first the introduction of a simpler traffic light system for international travellers and then the gradual reduction of red listed countries – the final seven were removed on 30th October. That was then supplemented by the announcement in the budget of a reduction by 50% of APD for domestic flights (excluding the Crown Dependencies), which is a major fillip to smaller airports which depend heavily on this kind of traffic. However, it was accompanied by an increase in the APD rates for ‘ultra’ long-haul flights – a new category of traffic. The decisions have been criticised by some media outlets but actually represent a more proportionate approach to the emissions of different categories of traffic.

There were also six sets of Transport Questions in one or other of the Houses of Parliament on topics including Climate Change/Net Zero and Slot Allocation rules introduced during COVID. 

Finally, the CAA has issued a major consultation on Heathrow’s Quinquennial review – required reading for those with an interest in the airports short term plans.

Again, a comprehensive guide to the month’s aviation policy developments.

Chris Cain

Policy Director
SASIG

Monthly Highlights

4th October – UK implements simpler ‘traffic light’ system for international travellers.  Further information is here.

6th October – Gatwick proposes aircraft noise cap. Their press release is here.
6th October – Departing ICCAN tell Aviation Minister that the aircraft noise issue should be dealt with by an independent body, with “clout” – see here.

7th October – Government announces cuts to ‘red’ travel list effective from 11 October.

8th October – DfT publishes updated guidance on Public Safety Zones – see here.

18th October – CAA publishes consultation on initial proposals for Economic regulation of Heathrow Airport – see here.

27th October – In his Budget the Chancellor announces flights between England, Scotland, Wales and Northern Ireland will have a lower rate of APD from April 2023.  He also introduces ‘ultra’ long-haul band in APD covering plane journeys longer than 5,500 miles, from April 2023. See here.

Events, Meetings and Conferences

SASIG Meetings

(To note: depending on any restrictions continuing, some of these meetings may be held virtually. It is therefore advised to check with the Secretariat first before making any travel arrangements).

15 December 2021: 10:30-1pm: SASIG full meeting/ afternoon workshop – Virtually via Zoom.

Dates for 2022 to be decided.

External Conferences (please note: due to the pandemic, some changes may have occurred).

11 November 2021: Next steps for Freeports in UK: WEETF online forum.

1-2 December 2021: 9th European Aviation Conference: Heilbronn, Germany.

10 February 2022UK Emissions Trading Scheme-next steps for operation, expanding engagement and remaining competitive: WEETF online conference.
5, 6 & 7 April 2022: Passenger Terminal Expo & Conference: Paris Expo Porte de Versailles, Paris, France.

            18-22 May 2022: Routes Europe: Bergen, Norway. 

Parliamentary and Government News

Summer Recess dates for both House of Commons and Lords: 
Commons rose on 23rd September and returned on 18th October whilst the Lords rose on 16th September and returned on 11th October.

Transport Questions:  House of Commons: 

18th October – Updates to International Travel: Summary

The Secretary of State for Transport provided an update as trailed in his oral statement on 20 September 2021.

29th October – International Travel Update.
The Secretary of State for Transport provided a further update on the conditions of international travel.

Transport Questions:  House of Lords

11th October – Net-Zero Emissions Target
Government was asked what fiscal measures they are taking in pursuit of their net zero emissions target.

Also, on this day the Government was asked what plans they have to expand the UK’s Emissions Trading Scheme to include all forms of transport – see here.

19th October – Airport Slots Allocation: (Alleviation of Usage Requirements) (No 2) Regulations 21

Baroness Vere of Norbiton asked that the Grand Committee consider the Airports Slot Allocation (Alleviation of Usage Requirements) (No. 2) Regulations 2021.

26th October – Airports Slot Allocation (Alleviation of Usage Requirements) (No. 2) Regulations 2021.

Baroness Vere of Norbiton asked that the draft Regulations and Orders laid before the House on 19 July and 6 September be approved. Relevant documents considered in Grand Committee on 19 October.

27th October – Climate Change: Global Temperatures

Government was asked what assessment they have made of the report of the Intergovernmental Panel on Climate Change, published on 9 August; and what policy areas they intend to reassess in response to the finding that global temperatures are rising faster and will have worse consequences than previously predicted. Aviation is referred to.

Parliamentary Questions:  

(Please note: some questions were asked last month but not answered until this month hence inclusion here).

Q.1. Question (57350) asked by Bell Ribeiro-Addy (Streatham) on 15 October 2021: “To ask the Secretary of State for the Home Department, what steps she is taking to (a) reduce the average time taken to process passenger arrivals at Heathrow Airport, (b) tackle shortages of Border Force staff and (c) tackle broken e-gates at UK airports”.

A. Kevin Foster on 20 October 2021: “Throughout the pandemic we have been clear queue times may be longer as we ensure all passengers are compliant with the health measures put in place to keep the UK public safe. We have endeavoured to improve waiting times this week, for example by flexibly deploying staff across Heathrow Airport and continue to work closely with all airports and airlines to make sure passengers can have a safe and hassle-free journey. Border Force regularly reviews staffing requirements to ensure resources are deployed flexibly when required to carry out the vital function of border security.

In recent weeks there have been a series of short interruptions of service for the Border Crossing system and eGates. We have taken actions to review and address the cause of these issues and have increased monitoring to identify system pressures early to avoid interruptions to service. Border Force work closely with technology partners to minimise the impact of service interruptions and have a series of operational mitigations to manage the impact on passenger flows and ensure border security has been maintained at all times”.

Q.2. Question (57395) asked by Zarah Sultana (Coventry South) on 15 October 2021: “To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of extending the Coronavirus Job Retention Scheme for the aviation industry beyond September 2021”.

A. Lucy Frazer on 20 October 2021: “The Coronavirus Job Retention Scheme (CJRS) was designed as a temporary economy-wide measure to support businesses while widespread restrictions were in place. After running for nineteen months, the scheme closed on 30 September 2021. To date, it has succeeded in supporting 11.7 million jobs across the UK, with employer claims totalling £69.3 billion. As the economy has reopened, the jobs market has recovered, vacancies are at record highs and the success of the Government’s vaccine programme has allowed us to lift almost all restrictions. That is why it is right that the Government continues to wind down its temporary pandemic support, while continuing to support businesses to invest in the recovery and supporting people into new jobs.

The Government recognises the challenging circumstances the aviation industry has faced as a result of Covid-19. The aviation and aerospace sectors are being supported with over £12 billion that has been made available through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility (CCFF), and grants for research and development. Thanks to the rollout of the UK’s vaccination programme, the Government has been able to relax the rules on our international travel programme. A new system for a safe and sustainable return to travel has been set out, which separates countries into a red list and the rest of the world. On Monday 11 October 2021, England’s red list was reduced to just seven countries, with 47 countries coming off the red list.

From 24 October 2021, fully vaccinated passengers with an authorised vaccine and most under 18s arriving in England from countries not on the red list can take a cheaper lateral flow test, instead of a PCR test, on or before Day 2 of their arrival into the UK. They will not need to self-isolate or take a pre-departure or day eight test. Eligible travellers vaccinated in over 100 countries and territories including Brazil, Ghana, Hong Kong, India, Pakistan, South Africa and Turkey, will not need to self-isolate, nor complete pre-departure testing and day eight testing requirements on arrival to the UK from non-red list countries and territories, like UK vaccinated adults. Anyone who tests positive will need to take a confirmatory PCR test which can be genomically sequenced to help identify new variants.

The Government is focused on fully reopening international travel as soon as it is safe to do so and will further review England’s international travel policy in the new year”.

Q.3. Question (56902) asked by Angus Brendan MacNeil (Na h Eileanan an Iar) on 15 October 2021: “To ask the Secretary of State for Transport, what the environmental standards will be for fuels in aviation in the (a) UK and (b) EU; and whether his Department has plans to harmonise those rules”.
A. Robert Courts on 20 October 2021: “Between July and September, the Department consulted on proposals for a UK sustainable aviation fuels (SAF) mandate requiring jet fuel suppliers to blend an increasing proportion of SAF into aviation fuel from 2025. The consultation sought views on the eligibility criteria SAF will need to meet, the interactions between SAF and other domestic and international policy, and the compliance, reporting and verification principles of the proposed SAF mandate scheme. The consultation proposes strong sustainability criteria that SAF will need to meet to receive support. Our proposed criteria would restrict support to SAF produced from feedstocks and process inputs that deliver significant GHG emissions savings, when considering their supply chains and direct and indirect sustainability and land use impacts. The Department is carefully considering responses received to the consultation and will publish a summary of responses including next steps in due course. This will formalise our position on the GHG emissions savings and other sustainability criteria that SAF would have to meet under a UK mandate”.

Q.4. Question (52406) asked by Laurence Robertson (Tewkesbury) on 21 September 2021: “To ask the Secretary of State for Transport, what support he is offering to the civil aviation industry while covid-19 public health restrictions on international travel remain in place; and if he will make a statement”.
A. Robert Courts on 18 October 2021: “The Government recognises the challenging circumstances facing the aviation industry because of Covid-19 and firms experiencing difficulties have been able to draw upon the unprecedented package of measures announced by the Chancellor. In total, we estimate that by the end of September 2021 the air transport sector (airlines, airports and related services) will have benefited from around £7bn of Government support since the start of the pandemic. This includes support through loan guarantees, support for exporters, the Bank of England’s Covid Corporate Financing Facility and the Coronavirus Job Retention Scheme. The Department for Transport works closely with HM Treasury on matters related to aviation. We continue to take a flexible approach and keep all impacts and policies under review”.

Q.5. Question (HL2861) asked by Lord Myners on 4 October 2021: “To ask Her Majesty’s Government what quantitative measure or measures they will use to determine the success of their levelling up policies”.
A. Lord Greenhalgh on 18 October 2021: “Levelling up is at the heart of the Government’s agenda to build back better after the pandemic and deliver for the people of the UK. The Government will publish a White Paper in due course that will set out our plans in more detail.
Q.6. Question (60362) asked by Andrew Rosindell (Romford) on 21 October 2021: “To ask the Chancellor of the Exchequer, when he plans to make a decision on changes to Air Passenger Duty in respect of flights (a) between UK airports and (b) from UK airports to airports in the Crown Dependencies”.
A. Helen Whately on 29 October 2021: “Air Passenger Duty (APD) is levied on flights departing from UK airports. Therefore, return flights within the UK pay UK APD on both legs of a return journey, unlike return flights between the UK and the Crown Dependencies. At Budget, the Government announced that, from April 2023, it would introduce a new reduced domestic band of APD, covering flights between England, Scotland, Wales and Northern Ireland, in order to support connectivity across the UK. The economy rate for flights to the Crown Dependencies will remain frozen at £13, benefitting passengers travelling to these destinations”.

Q.7. Question (57394) asked by Zarah Sultana (Coventry South) on 15 October 2021: “To ask the Secretary of State for Transport, what assessment he has made of the potential merits of working with governments around the world to develop a blueprint for travel regulations”.

A Robert Courts on 20 October 2021: “HM Government has, and will continue to have, a leadership role in shaping the emerging global framework for international travel in a steady state of an international travel landscape that co-exists with an endemic COVID-19 including through the International Civil Aviation Organization (ICAO) and through numerous bilaterals attended by myself and officials. The UK has also recently chaired the G7 transport and health ministers meeting to endorse and promote a set of high-level principles for international travel. G7 members affirmed their support for the work of ICAO to align travel requirements and help facilitate interoperability of vaccination certificates and applications to further support the recovery of the travel sector”.

Q.8. Question (58744) asked by Gregory Campbell (East Londonderry) on 20 October 2021: “To ask the Chancellor of the Exchequer, when he plans to announce the outcome of the effect of Air Passenger Duty on regional air routes in the aviation tax reform proposals”.
A. Helen Whately on 22 October 2021: “The Government recently consulted on aviation tax reform. As part of the consultation, the Government outlined its initial view that the effective rate of Air Passenger Duty (APD) on domestic flights should be reduced in order to support Union and regional connectivity and that the number of international distance bands should be increased in order to align APD more closely with our environmental objectives. The consultation sought evidence on the potential impacts of these proposals, including on regional air routes, and closed on 15 June. The Government will update on next steps in due course”.

National and Regional News

1st October – JetBlue have launched a new, nonstop service between New York and London Gatwick. 

1st October – American Airlines say UK policies have made Heathrow a dysfunctional connecting hub. However, they hope the situation will change soon. 

1st October – Newcastle International Airport on the road to net zero by 2035. Article by their CEO Nick Jones can be seen here.

3rd October – An article in Simple Flying titled: ‘Heathrow Airport: Passengers are prepared to pay more to fly sustainably’ can be seen here.

4th October – BA has signalled it may reverse its decision to scrap short-haul flights out of Gatwick. Pilots may give it their support in a ballot later this week. 
5th October – Analyst says Heathrow may never recover its top spot in Europe – see here.

5th October – BA to suspend its Gatwick short-haul operation. They say they are disappointed that they did not receive support from pilots’ union BALPA.
6th October – Gatwick proposes aircraft noise cap. Their press release is here.
7th October – Boost for Stansted Airport expansion as judge rejects challenge. UDC is opposing MAG’s expansion plans which were granted planning permission in May. 
7th October – Pilots give BA the green light on restarting of Gatwick operations. This is BALPA’s second ballot vote within a month.

8th October – Doncaster Sheffield Airport and Wizz Air strengthen plans for future growth by signing new deal. Their alliance began in 2006.

10th October – Gatwick is reportedly paying staff to stay at home amid a travel crisis which is losing the business £1m every day – see here.

11th October – Britain should use COP26 to push sustainable aviation fuel says Heathrow CEO.

11th October – Local councils asked to reject Newcastle Airport’s request for £5.1m loan of taxpayers’ money – see here.

12th October – Heathrow urges Government to promote SAF production. It’s suggested the introduction of a price support mechanism and loan guarantees as part of the mandate.

12th October – Bristol Airport awaits decision on expansion as inquiry draws to a close.

12th October – Easyjet has given a lukewarm response to Gatwick’s growth plans – see here.

14th October – Land acquired for development/expansion of Doncaster Sheffield Airport

14th October – Airlines slam Heathrow’s 90% airport fee hike – see here.
15th October – Bristol Airport joins consortium tasked with developing hydrogen fuel infrastructure – see here.
18th October – 
An article titled: ‘Manchester Airport bounces back’ by their MD is here.18th  October – An article titled: ‘Heathrow Airport should introduce fee increase with caution’ is here.

18th October – CAA publishes consultation on initial proposals for Economic regulation of Heathrow Airport – see here.
19th October – MAG will provide passengers at all three of its airports with the ability to offset the carbon emissionsfrom their flights in a new partnership with CarbonClick.

19th October – Sustainable aviation fuel introduced for the first time at London Gatwick.
20th October – Southampton Airport welcomes refusal of runway legal challenges. The High Court has refused two applications for judicial reviews. 

20th October – Manchester Airport ahead of many in recovery from pandemic – see here.

21st October – Images of huge Gigafactory at Coventry Airport site released – see here.

21st October – The future of a Cornwall-London air route to be decided next month. The route is subsidised by the Government but there have been no flights since September.

22nd October – Gatwick’s expansion plans would create 18,400 local jobs – see here.

23rd October – Flying taxis set to shuttle passengers from Heathrow to cities in south of England for price of an Uber in just four years’ time – see here.

25th October – Heathrow allows passengers to buy SAF to offset emissions. This will be regardless of their airline or end destination.

25th October – New agreement means that eVTOL aircraft could operate from Heathrow – see here.

26th October – Heathrow boss says air traffic may not recover until 2026. He says airport is still making losses even though international travel rules were easing.

26th October – An article in TTG titled: ‘Pricing itself out won’t help Heathrow, airlines – or agents’ can be seen here.

28th October – Results show strong demand at Heathrow as travel restrictions ease – see here.

28th October – An easyJet and Bristol Airport trial: Ultra-low emission aircraft turn initiative reduces CO2 emissions by 97%.

29th October – Manchester Airport to become first in UK with direct sustainable jet fuel supply. MAG has partnered with Fulcrum BioEnergy Limited UK to achieve this.

31st October – Heathrow third runway dealt blow after top shareholder pulls investment. Ferrovial signals it will not plough more money into airport due to it yielding “low returns”.

 

Other Aviation Industry News

1st October – Holiday-goers could fork out as much as £105m on airport drop-off fees next year. Some 26% of Brits use such drop-off zones when travelling to and from an airport.
3rd October – An article in Simple Flying titled: ‘How Cloud Technology will help airports adapt to the new climate’ can be seen here.

4th October – UK implements simpler ‘traffic light’ system for international travellers. Further information is here.
4th October – Ryanair reports 50% traffic rise over 2020 – see here.
5th October – ACI Europe clashes with IATA over increased airport charges proposals. IATA say the move would “stall recovery in air travel and damage international connectivity”.

5th October – Uber trips to UK airports soar by 328% after restrictions lift – see here.
6th October – Departing ICCAN tell Aviation Minister that the aircraft noise issue should be dealt with by an independent body, with “clout” – see here.

7th October – An Airport Technology article about the future of aircraft boarding and digital token technology can be seen here.

7th October – Government announces cuts to ‘red’ travel list effective from 11 October.

8th October – An article in Airport Technology titled: ‘Google Flights carbon emissions feature meets sustainability shift’ can be seen here.

8th October – DfT publishes updated guidance on Public Safety Zones – see here.

9th October – Nicola Sturgeon urged by Scottish Lib Dem leader to ‘tear up’ Heathrow Airport deal. He’s urged her to do this before COP26 in Glasgow next month.

11th October – Business productivity scheme helps airport and flight simulator firm. Flyme based at Shortwood Business Park is the UK’s only purpose-built airport and flight simulator.

11th October – The Campaign for Better Transport urges a ban on UK domestic flights (where the train takes under 5 hours) and subsidised rail travel. 
12th October – IATA CEO says it would be ‘madness’ for Shannon Airport to set up its own airline. It was suggested last week but he feels airports should focus on running airports.

13th October – An Airport Review article titled: ‘The importance of the slot relief policy in aviation’s recovery’ can be seen here.

13th October – Irish Government announces €126m total aviation funding package. This is through the Regional Airports programme.

13th October – ABTA chief reiterates call for dedicated outbound minister. He feels the industry has been “treated as an orphan” for too long.

14th October – New research finds appetite to travel is high. Europe is a favoured destination.

14th October – BA confirms A380 plans as part of winter expansion. The ‘Superjumbo’ will return to the skies in November.

15th October – An article in Airport Technology titled: ‘Contactless technology will enhance airport experience for passengers’ can be seen here.

15th October – Government considering counting aviation bio-fuel as generating zero carbon emissions in the UK ETS. – see here.

19th October – AOA launches Decarbonisation Report at its annual conference.

19th October – An article in Moodie Davitt Report titled: ‘Airport Dimensions on ‘Tomorrow’s Traveller, Tomorrow’s Airport Experience’ can be seen here.

20th October – DAA urgently needs a regulatory decision on passenger charges that addresses the “unsustainably low level” that currently pertains, says its chairman designate.

20th October – Construction of platforms at new Inverness Airport station begins.

20th October – ‘Commercial aircraft: three reasons why the industry is recovering beyond expectations’ – see this article in Airport Technology.

21st October – easyjet opens its first airport lounge at Gatwick – see here.

22nd October – Edinburgh Airport teams up with Orsted for offshore wind-to-hydrogen plan. The plan is to decarbonise the airport and produce emission-free fuel.

25th October – AGS Airports named top three performing sustainable airports by GRESB. The airports are Aberdeen International, Glasgow and Southampton. 

25th October – An article titled: ‘The path towards airport operational efficiency: moving towards Total Airport Management’ can be seen here.

26th October – Flybe hires new CEO to head its relaunch. According to industry insiders, Flybe is working towards a 2022 summer season launch date now.

27th October – A Business Desk article titled: ‘Return of airline passengers ‘couple of years away’ despite pandemic high’ is here.

27th October – Avia Solutions Group acquires Biggin Hill Hangar Company, the owner of Hangar 510, an FBO and MRO centre of operations at London Biggin Hill Airport.

27th October – In his Budget the Chancellor announces flights between England, Scotland, Wales and Northern Ireland will have a lower rate of APD from April 2023.  He also introduces ultra long-haul band in APD covering plane journeys longer than 5,500 miles, from April 2023. See here.

28th October – Backers of UK airport expansion are part of UN green investment scheme – see here.

28th October – Ryanair launches electric handling at 11 major European airports. Is part of aim to reduce its environmental footprint and help achieve net zero CO2 emissions by 2050.

29th October – An article titled: ‘Three airports on one journey to a sustainable future’ about the three AGS airports – Aberdeen, Glasgow and Southampton – is here.

31st October – An article in Simple Flying titled: ‘A Network of Vertiports could be coming to the UK’ can be seen here.

31st October – An article titled: ‘How airlines are boosting efficiency with the Biometrics Boom’ can be seen here

SASIG Library Additions

There were no Library additions this month.