SASIG Newsletter – May 2022
Editor’s Highlights
Although the Queen’s Speech and parliamentary recess reduced the amount of Parliamentary business transacted during May, there were some noteworthy policy developments and a constant stream of new stories about cancelled flights and airport queues to fill in the downtime.
The most significant of these came late in the month when DfT published their long-awaited Aviation strategy document titled ‘Flightpath to the Future’. As billed, this is a short-medium term (to 2030) agenda setting document designed to outline the future direction of travel for the sector as it emerges from its COVID troubles. It is a White Paper Lite if you like, not a detailed policy treatise – with ten key themes around which further policy will be brought forward over the next 5-10 years. It does not replace the Airport National Policy Statement from June 2018 or the ‘Making best Use’ policy statement that was published concurrently. There is little on the recovery of wider economies and communities from the pandemic and it is light on noise policy.
The much-anticipated Aviation Net Zero policy document remains outstanding, although there was a pledge by Grant Schapps to deliver the first transatlantic flight fuelled solely by environmentally friendly aviation fuel (i.e. no blend) by the end of next year.
Finally, the CAA is consulting on an Environmental Sustainability Strategy to determine its own operations and its approach to such matters in terms of policy and regulation.
Chris Cain
Policy Director
SASIG
Monthly Highlights
12th May – SASIG Members’ meeting (virtual).
14th May – Transport Secretary announces pledge to deliver world’s first transatlantic flight fuelled purely by environmentally friendly aviation fuel by the end of next year.
19th May – The House of Commons debated transport including aviation.
26th May – SASIG takes part in round-table session on Aviation Strategy hosted by Aviation Minister. On same day the Minister launches ‘Flightpath to the Future’ – see here. The Ministerial statement is here and also the Transport Secretary issued a short update on the Union Connectivity Review – see here.
Also, this month the CAA published its Environmental Sustainability Strategy – 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).
6 July 2022: 10:30: SASIG meeting/AGM: (Virtual).
20 October 2022: 10:30: SASIG meeting, Westminster Suite, LGA or virtual (TBC)
External Conferences (please note: due to the pandemic, some changes may have occurred).
16-18 June 2022: AeroExpo UK: Cotswold Airport.
22-23 June 2022: 5th British-Irish Airports Expo: ExCel, London. SASIG will be attending.
23-24 June 2022: Aviation World Congress, Kensington, London.
28-30 June 2022: LGA Annual Conference, Harrogate Convention Centre, Harrogate.
18-22 July 2022: Farnborough International Air Show. Farnborough Airport.
Parliamentary and Government News
The 2022-23 session began with the State Opening on 10 May 2022.
Whitsun Recess: both Houses rose on 26 May and will return on 6 June 2022.
14th May –Transport Secretary announces pledge to deliver world’s first transatlantic flight fuelled purely by environmentally friendly aviation fuel by the end of next year.
19th May – UK targets Russian airlines with new sanctions – see press release here. Also on this day the House of Commons debated transport including aviation – see here.
26th May – Aviation Minister launches ‘Flightpath to the Future’ – see here and the Ministerial statement is here. On the same day the Transport Secretary issued a short update on the Union Connectivity Review – see here.
Transport Questions: House of Commons:
There were no Transport Questions in the House of Commons this month.
Transport Questions: House of Lords
There were no Transport Questions in the House of Lords this month.
Parliamentary Questions:
Q.1. Question (900) asked by Tulip Siddiq (Hampstead & Kilburn) on 11 May 2022: “To ask the Secretary of State for the Home Department, what steps she is taking to help (a) reduce the average time taken to process passenger arrivals at Heathrow Airport and (b) tackle shortages of aviation staff”.
A. Damian Hinds on 2022: “Border Force is committed to ensuring passengers wait times are kept to a minimum, however this must be balanced with our duty to Border Security, checking 100% of passports and making sure that anyone or anything that might cause harm to the UK is correctly dealt with.
Resource and staffing requirements at every port are continually reviewed by Border Force who work closely with port operators to ensure resources are deployed flexibly as and when they are required. Despite Easter being one of the highest periods of inbound travel from the past two years, Border Force were able to successfully deliver a secure and effective border control with little to no disruption to passengers at Heathrow and all other major ports in the UK. Border Force also received praise from Heathrow Airport Limited on its operational posture over the Easter period allowing passengers to enjoy a relatively hassle yet secure entry into the United Kingdom.
However, Border Force has already begun planning extensively for the Summer period and will not hesitate to deploy staff to the ports where they are most needed including to boost resilience, including Heathrow. Which Border Force does not recruit aviation staff, we are working closely with all UK ports and airports to ensure passengers have the smoothest possible journey”.
Q.2. Question (471) asked by Bell Ribeiro Addy (Streatham) on 11 May 2022: “To ask the Secretary of State for the Home Department, what assessment her Department has made of the impact of IT issues on the efficiency of eGates in UK airports”.
A. Kevin Foster on 18 May 2022: “From late September through to mid-November we saw a series of short interruptions of service for the Border Crossing system and eGates. These had a variety of root causes, and a contributory factor was the need to expedite the roll-out of the new gates, which incorporated checking the Passenger Locator Form as part of reopening the UK’s border – this compression of timescales, meant we experienced more problems than in previous upgrades. We have since taken a series of actions to review and address the cause of these issues and have increased monitoring to identify system pressures early to avoid interruptions to service – this has been reflected in a reduction of service interruptions. Border Force works 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, whilst ensuring border security is maintained at all times”.
Q.3. Question (406) asked by Preet Kaur Gill (Birmingham, Edgbaston) on 10 May 2022: “To ask the Secretary of State for Transport, what assessment he has made of the potential economic merits of the Birmingham Airport Connectivity project”.
A. Wendy Morton on 13 May 2022: “Although unable to discuss individual projects at this time, we remain committed to publishing the RNEP update, which has been delayed by the need to take account of the impacts of the pandemic and the Spending Review. We want to provide as much clarity and certainty as possible on rail enhancements and will set out our plans shortly”.
Q.4. Question (595) asked by Steve McCabe (Birmingham, Selly Oak) on 11 May 2022: “To ask the Chancellor of the Exchequer, with reference to the Answer of 26 April 2022 to Question 157540 on Aviation: Taxation, what assessment he has made of the potential merits of tolerating the potential administrative complexity of a frequent flyer levy to facilitate the move towards net zero”.
A. Helen Whately on 18 May 2022: “As part of a consultation on aviation tax reform between March and June 2021, the Government sought views on whether a frequent flyer levy could replace APD as the principal tax on the aviation sector. In the responses received to the consultation, the Government received a wide range of views on a frequent flyer levy. Some stakeholders, including those from the aviation industry, strongly opposed any suggestion that APD should be replaced with a frequent flyer levy, on the grounds that it would be significantly more difficult to administer. Conversely, environmental stakeholders supported the introduction of a frequent flyer levy, considering that the benefits of such a levy outweighed any potential administrative complexity. Following the consultation, having considered all views received carefully, the Government published a response which outlined that it was minded to retain APD as the principal tax on the aviation sector, noting in particular concerns about the possible administrative complexity and data processing, handling and privacy of a frequent flyer levy. Full details of the consultation and the Government’s response can be found at:
www.gov.uk/government/consultations/consultation-on-aviation-tax-reform
Q.5. Question (469) asked by Bell Ribeiro Addy (Streatham) on 10 May 2022: “To ask the Secretary of State for the Home Department, what estimate her Department has made of the cost of maintaining eGates at UK airports each year”.
A. Kevin Foster on 16 May 2022: “The cost of maintaining e-Gates at UK airports in the 2021-22 Financial Year was £4,753,126, excluding VAT”.
Q.6. Question (HL268) asked by Lord Patten on 16 May 2022: “To ask Her Majesty’s Government what assessment they have made of London Heathrow being the only international hub airport in the UK”.
A. Baroness Vere of Norbiton on 25 May 2022: “In 2012, the Government established the independent Airports Commission to examine the nature, scale and timing of any requirement for additional capacity to maintain the UK’s global hub status. The Airports Commission carried out a detailed assessment of the UK aviation market and considered that it was served by a diverse system of airports, from a global aviation hub at Heathrow through large scale point-to-point airports, such as Manchester, Birmingham and Gatwick, down to small airports primarily focusing on maintaining lifeline routes.
Further assessment of the UK aviation market and its hub status was carried out by the Government as part of the development of the Airports National Policy Statement (ANPS), which provides the primary basis for decision making on development consent applications for a Northwest Runway at Heathrow Airport. The ANPS sets out the importance of Heathrow Airport’s position as one of the world’s major hub airports”.
Q.7. Question (HL267) asked by Lord Patten on 16 May 2022: “To ask Her Majesty’s Government, what assessment they have made of the effects on the (1) regional, and (2) national, economy of the decision of Loganair to cease serving Teesside International Airport”.
A. Baroness Vere of Norbiton on 23 May 2022: “Whilst the decision by Loganair to withdraw from Teesside Airport is disappointing, it is ultimately a commercial decision by the airline.The Government recognises the importance of regional airports to our aviation sector and to the communities they serve. We continue to support regional airports through various policy measures such as our introduction next year of a 50% cut in Air Passenger Duty on domestic flights”.
Q.8. Question (3793) asked by Alexander Stafford (Rother Valley) on 17 May 2022: “To ask the Secretary of State for Transport, if he will introduce a sub-mandate on power-to-liquid fuels to help decarbonise aviation”.
A. Robert Courts on 25 May 2022: “Sustainable aviation fuel (SAF) will have a key role in driving down carbon emissions in the UK aviation sector and the Government is fully committed to accelerating its development. The Government recognises the long-term potential of power-to-liquid (PtL) fuels specifically, due to the feedstock availability and high greenhouse gas (GHG) emissions reductions they can achieve. However, PtL fuel costs are significantly higher than the cost of SAF produced through any other pathway and the production of these fuels is not expected to be widespread until the late 2030s.
Last year we consulted on proposals to introduce a SAF mandate in the UK, including mechanisms to accelerate the technological and commercial development of PtL fuels specifically. We are currently reviewing evidence provided in response to the consultation and wider resources to determine which mechanism may be most effective in reducing the cost of and stimulating investment in PtL production. We will provide further clarity in the upcoming government response to the SAF mandate consultation”.
Q.9. Question (3567) asked by Dr Matthew Offord (Hendon) on 17 May 2022: “To ask the Chancellor of the Exchequer, if he will make an assessment of the sustainability of finance from the UK-ETS to be used to support the development of the UK Sustainable aviation fuel industry”.
A. Lucy Frazer on 24 May 2022: “Carbon pricing will play a key role in helping the UK achieve Net Zero. The UK launched our own Emissions Trading Scheme (ETS) at the beginning of 2021, covering the power, industrial and aviation sectors. It raises funds to be invested across the Government’s spending priorities, including our public services as well as our Net Zero ambitions. The UK ETS Authority is currently consulting on developing the UK ETS, including aligning the total cap on emissions with net zero.
The Government is also supporting Sustainable Aviation Fuel (SAF), although these are not ringfenced funds from the ETS. At the Spending Review, the Government committed £180m to accelerate the commercialisation of Sustainable Aviation Fuel (SAF) plants and to set up a UK clearing house for SAF. The Government also extended its long-term commitment to the aerospace sector, guaranteeing funding for the Aerospace Technology Institute (ATI) to 2031, co-investing with industry in world-class research and development. The ATI will receive a record £685m of funding over the next 3 years, an increase of more than 50%. This activity will help drive the development of zero-emission flight technology, which is an important part of our Jet Zero ambitions to decarbonise aviation”.
Q.10. Question (3568) asked by Dr Matthew Offord (Hendon) on 17 May 2022: “To ask the Secretary of State for Transport, what recent assessment his Department has made of the viability of the UK sustainable aviation fuel deadline of 2025”.
A. Trudy Harrison on 24 May 2022: “We want the UK to be a global leader in sustainable aviation fuel (SAF) and we see the potential to create over 5,000 jobs from a domestic SAF industry. Our SAF programme is one of the most comprehensive in the world. We continue to look at options to help build a UK SAF industry, in addition to the government’s proposed SAF mandate and £180m grant funding mechanisms.
As part of our work we are engaging industry, including through the Jet Zero Council SAF Delivery Group, to get a better understanding of how private investment in the UK SAF industry can be leveraged, and the potential need for and impacts of a price stability mechanism such as a contracts for difference scheme.
We are working at pace on a number of levers to support the UK SAF industry, accelerating its commercialisation and ensuring existing and prospective SAF plants developing in the UK can progress to construction as quickly as possible.
Our support includes a £168m capital grant funding competition to support the development of advanced fuels plants and £12m for the operation of a SAF clearing house to help certify new fuels and support early stage aviation fuel testing for years 2022-25; a consultation on the introduction of a SAF blending mandate to drive the uptake of SAF in the UK; a £400m partnership with Breakthrough Energy which aims to drive investment into the next generation of clean energy technologies, including SAF; and funding to help deliver the world’s first net zero transatlantic flight fuelled by 100% sustainable aviation fuel by the end of 2023. We are also exploring what additional policy interventions may be needed to accelerate the commercialisation and scale up of SAF plants developed in the UK such as those that address price stability and risk.
Unique circumstances globally, including the war in Ukraine, have pushed up transport fuel prices. How current fuel and future SAF costs are passed through to passengers is a commercial decision for airlines. Future SAF cost uncertainties make it difficult to predict exactly how much ticket prices could increase, but our analysis suggests this impact will be relatively small.
Industry has welcomed the potential introduction of a mandate and we continue to work with all stakeholders on this matter, aiming to reduce any adverse effects on air travel”.
Q.11. Question (7978) asked by Jim Shannon (Strangford) on 24 May 2022: “To ask the Secretary of State for Transport, if he will take steps with airline companies to help reduce the cost of flights from Great Britain to Northern Ireland”.
A. Robert Courts on 27 May 2022: “The Government recognises how vital aviation is to maintaining connectivity between Great Britain and Northern Ireland. We are supporting connectivity across the union, through a 50% cut in Air Passenger Duty on domestic flights from April 2023, as well as our support for the PSO connecting Londonderry to London. Air travel between Northern Ireland and Great Britain is provided by a competitive market and fares are a commercial decision for airlines, based on several factors”.
National and Regional News
1st May – Farnborough earns top FBO score outside of the Americas. London Stansted was in second place.
2nd May – Niceair (North Iceland) is launching a twice-weekly non-stop service linking Stansted with Akureyri on Iceland’s remote north coast. It’s not using the main hub Keflavik.
2nd May – Heathrow wants to share recovery benefits with surrounding communities. The updated Heathrow Local Recovery Plan will allow the community around the airport to capitalise on the aviation sector’s recovery.
3rd May – Decision on Southampton Airport runway extension expected this week. The airport is looking to extend the northern end of its runway by 164m.
4th May – An article looking at the issue of the fractious debate over future pricing at Heathrow can be seen here.
4th May – Liverpool John Lennon Airport celebrate Lufthansa’s new service to Frankfurt. It brings return of global connectivity for airport and city region for first time in over 10 years.
4th May – 24-hour capability, open slot availability and uncongested airspace are enabling Bournemouth Airport to be small but flexible alternative to Heathrow and Gatwick airports.
4th May – Bristol Airport passengers hit by long queues are unhappy – see here.
5th May – Recruitment drive to help cut delays at Manchester Airport. Many staff were laid off in the wake of the pandemic. Further details may be seen here.
6th May – Record month for London City Airport. It experienced a 35% surge in passenger numbers for April 2022 compared to the previous month.
7th May – BA unhappy with Heathrow for closing T4 during pandemic. BA struggling with staff shortages. Cited ‘airport capacity constraints’ as another key challenge in first quarter.
9th May – Survey by the Telegraph ranks UK’s best and worst airports. Top was London City Airport whilst Bristol and Leeds did not do so well.
10th May – Heathrow increases its 2022 passenger number forecast from 45.5m to nearly 53m. This 16% rise follows a “strong April with 5.1m people using the airport.
10th May – Loganair to axe Teesside-Heathrow route due to higher Heathrow Airport charges. A rise in the price of aviation fuel has also been blamed as part of the reason.
11th May – Passengers face more long queues at Bristol Airport due to staffing shortages. Meanwhile, campaigners are taking fight against Bristol Airport expansion to the High Court.
12th May – Birmingham Airport and all its retail and food concessions are now powered by electricity generated from a mix of solar, wind and hydro – see here.
12th May – Heathrow will receive £5 billion over the next 4 years if a proposed increase in charges is approved, according to analysis commissioned by airlines who are not happy.
12th May – London Luton Airport has busiest month since outset of pandemic. It welcomed almost 1.2 million passengers in April.
13th May – Farnborough Airport CEO discusses what commercial airports can learn from private aviation and what the airport has achieved in sustainability and social responsibility.
16th May – MAG reveals it’s preparing to begin procurement of a new £60m finger pier for terminal 2 at Manchester Airport before the end of the year.
17th May – Biggin Hill Airport plots future amongst surge in VIP/business travel – see here.
18th May – London City Airport brings forward net zero target to 2030. It wants to get ahead of moves by large corporations to cut flying/reduce emissions threatening business travel.
18th May – Newcastle International Airport net zero strategy: It’s planted over 8,300 trees as part of its membership of the North East Community Forest Project.
19th May – Long queues at Bristol Airport have described as an “absolute shambles”. Passengers hit out at long waiting times on social media.
20th May – An article titled: ‘How to avoid missing your flight because of airport queues and your rights if you do’ is here.
20th May – Vueling launches two services from Gatwick to Spain – see here.
21st May – Sun Express airline plans Bristol and Newcastle expansion from 2023. This will bring its number of UK destinations to 8.
21st May – An article titled: ‘Farnborough Airport invests in a green growth future’ can be read here.
23rd May – Regular flights from Jersey to Norwich resurrected by Blue Islands. The flights will be on Tuesdays and Saturdays throughout the summer and will run until 24 September.
23rd May – Southampton Airport has won a battle in the High Court over its proposed runway extension – see here.
24th May – Signature Aviation opens new private terminal at Birmingham Airport. Signature Aviation is the world’s largest private aviation terminal operator.
24th May – Newcastle Airport has celebrated its one millionth passenger.
25th May – An article on the traverse of passengers through Stansted Airport to get to their flight can be seen here.
25th May – An article about how London Oxford Airport is investing in new facilities to absorb strong growth in business aviation traffic can be read here.
26th May – Aviation Minister launches ‘Flightpath to the Future’ – see here. The Ministerial statement is here. This also revives hopes for Heathrow third runway – see here.
26th May – Gatwick to step up consultation on its Northern runway plans. The consultation will run from June 14 to July 27.
27th May – Birmingham Airport boss warns staffing issues may last until autumn. During the pandemic 43% of its employees were made redundant.
27th May – Emerald Airlines launch flights from Belfast City Airport to Glasgow and Exeter. This brings the number of routes it operates at Belfast to six.
28th May – Chaos at Bristol Airport as passenger flights cancelled 8 hours after check in.
29th May – Norse Atlantic to start Gatwick-New York flights from August this year.
31st May – Opposition claims Government ‘hasn’t prepared’ for rise in demand for foreign holidays – see here.
31st May – Tui cancels quarter of flights from Manchester Airport. Cancellations to affect up to 37,000 passengers until end of June as half-term engulfed in travel chaos.
Other Aviation Industry News
1st May – Urban air mobility ‘Concept of Operations’ completed in UK – see here.
2nd May – easyjet launches 7 new UK routes for summer 2022 from 6 different UK airports.
3rd May – MAG who operate Manchester, London Stansted and East Midlands airports launch a data literacy apprenticeship to enhance digital skills throughout its workforce.
5th May – Regional revival: Europe’s airports post two-year passenger traffic high in March.
5th May – The Construction Employer’s Federation (CEF) for Northern Ireland and City of Derry Airport (CoDA) join forces as commercial partners – see here.
6th May – Edinburgh Airport has begun powering its airside vehicles using vegetable oil. It’s one part of the way they are looking to reducing emissions.
6th May – European airports and ground handlers issue joint statement on post-covid operational challenges. More details here.
6th May – An article titled: ‘Looking ahead to upper airspace traffic management’ can be read here.
8th May – easyJet plans to take out seats from planes in latest bid to tackle staff shortages. This will enable it to operate flights with fewer cabin crew.
10th May – Prospect of sustainable aviation powered by hydrogen edges closer after plans announced to build two commercial-scale mobile hydrogen refuelers in California.
11th May – Passenger numbers continue to recover at Northern Ireland airports – see here.
11th May – An article titled: ‘Aviation aims to accelerate sustainable, safe, digital European sky’ can be read here.
12th May – European airports welcome updated health safety rules for air travel – read about it here.
13th May – Cancellation policies for TUI, easyJet, Ryanair and more amid ‘chaos’ at UK airports. UK holidaymakers warned to expect a “summer of chaos” in airports.
13th May – Strong start this month for business aviation – see here.
14th May –Transport Secretary announces pledge to deliver world’s first transatlantic flight fuelled purely by environmentally friendly aviation fuel by the end of next year.
16th May – Report commissioned by AEF says “jet zero” plan relies on unproven or non-existent technology and “sustainable” fuel and is likely to result in ministers missing their legally binding emissions targets – more details here.
16th May – Ryanair boss warns of holiday prices hikes and airport delays. He says it will be down to staff shortages and soaring demand for European holidays after the pandemic.
17th May – City of Derry Airport’s traffic is expected recover to about 85% of pre-pandemic levels this year, boosted by new connections launched by Loganair and Ryanair.
18th May – Ryanair opens new heavy maintenance facility at Shannon Airport. It will create 200 extra jobs.
18th May – Latest economics data shows need for greater flexibility on airport charges – see more details here.
18th May – Routes Europe attendees discuss whether or not an airport’s sustainability credentials will influence airline network planning decisions in the future – see here.
19th May – UK targets Russian airlines with new sanctions – see press release here.
20th May – World Travel & Tourism Council has published a report on best practices/support for governments for the introduction of a ‘Digital Travel Portal’ to allow safe travel to reduce delays at airports – see here for details.
20th May – Airlines and airports look beyond Summer with questions over whether the rebound in demand expected this summer will extend into winter.
21st May – Cranfield University professor says airports can be green and air travel could be cheaper eventually, but first a high level of investment is needed – see here.
23rd May – Jersey connectivity boosted by three new UK routes.
24th May – CILT(UK)’s Public Policies Committee has released a paper on airport expansion in the UK. See more details here and the document is here.
25th May – A blog in Airport World titled: ‘Using airport charges as levers for growth, efficiency and sustainability’ can be read here.
27th May – French-Italian company ATR to develop hybrid-electric regional aircraft called ‘EVO’. It will be compatible with 100% Sustainable Aviation Fuel (SAF).
27th May – ‘Chronic staff shortages’ in the aviation sector puts holidays at risk of delay and cancellations says report on ITV.
28th May – Jet2 announce four new Greek and Turkish routes for Summer. They will operate from Edinburgh Airport.
30th May – Ryanair accuses Dublin airport of ‘mismanagement’ as it rejects higher charges. Minister to meet DAA to discuss the chaos and inadequacies plaguing the airport – see here.
31st May – CAA publishes its Environmental Sustainability Strategy – see here.
31st May – Dublin Airport bosses told to come up with solutions to resolve the lengthy delays faced by passengers – see here.
SASIG Library Additions
Presentations from the last meeting of the Airspace and Noise Engagement Group’s (ANEG) Aviation Noise & Health Impacts discussion group attended by SASIG and held on 28 April 2022 can be seen in the members’ area of the website.