Budget announcement on ePassport gates a welcome step in the right direction

Responding to the announcement at the Budget that access to ePassport gates at the border at UK airports will be extended to visitors from the United States, Canada, Australia, New Zealand and Japan, Tim Alderslade, Chief Executive of Airlines UK, said:

“As passenger numbers continue to rise, UK Border Force must be adequately resourced and adopt new approaches in order to prevent a repeat of last summer, where lengthy border queues were experienced at a number of UK airports. This announcement is a welcome step in the right direction, enabling millions more travellers to be processed more quickly. It’s important now to ensure Government rapidly implements the required technical changes so passengers can take advantage as quickly as possible.” 

Airlines UK response to comments from the Scottish Conservatives on Air Departure Tax

Responding to comments from the Scottish Conservatives today on the need to reduce Air Departure Tax, Tim Alderslade, Chief Executive of Airlines UK, said:

“Aviation in Scotland is crying out for this cut and it is now up to both governments to bang some heads together and put an end to this legal wrangling. Action on APD would be the single best way to stimulate demand for new routes and boost connectivity to Scotland’s airports. We know that Scotland has lost some routes this year and it’s little surprise when you consider that passengers are charged up to £78 just to leave the country – it makes Scotland uncompetitive with the rest of Europe and with Brexit on the horizon it makes little sense when we need to be reaching out to the world now more than ever.”    

UK depends more on air freight services than most EU competitors

A major new report published today shows that the UK is more dependent on air freight services compared to most of its EU competitors.

The report, commissioned by Airlines UK and supported by Heathrow Airport, Manchester Airports Group and the Freight Transport Association, shows that while only a quarter of German exports to non-EU countries in value terms are transported by air, for UK exports it is nearly half.  Only Ireland ships a greater share of its non-EU exports by air than the UK.

The report calculated the total economic contribution of the air freight sector to the UK economy, and found:

  • UK air freight imports and exports were worth £181 billion in 2017
  • Air freight services contribute £7.2 billion to the UK economy and support 151,000 jobs
  • Critically, looking at air freight’s wider contribution to UK PLC, the study shows that across all sectors of the economy £87.3 billion of GVA is currently dependent on air freight exports, including a very significant proportion of some key industries’ output:
  • Pharmaceuticals – £13.9bn
  • Computer, electronic & optical – £8.3bn
  • Creative arts & entertainment – £5.3bn

The report also shows how vital air freight is to the UK’s regional economies. Whilst less than 2% of London’s production is dependent on air freight services, equivalent figures across some of the UK’s other regions include:

  • 9% in the North West (worth 14.9bn)
  • 8.6% in Wales
  • 7.6% in the East Midlands
  • 6.8% in the South West.

Air freight is essential to the transport equipment producing industries in the East Midlands, the North West, the South West and Wales, while pharmaceutical manufacturing in the North West makes very significant use of air freight.

Airlines UK Chief Executive, Tim Alderslade, said: “This report gives us the hard evidence of just how important air freight is to the national economy, our regional economies and to the international trade which will be increasingly important to us as we leave the EU.  The upcoming Aviation Strategy must look to how the UK can support its air freight sector thrive, both by creating the conditions to help grow our international connectivity, as well as by recognising where barriers exist and, in particular, the important role and contribution of Night Flights in facilitating cross-border trade”.

The report makes clear that there are real opportunities, particularly for regional airports, arising from improved air connectivity. It cites as an example the fact that the value of exports travelling to China from Manchester Airport has increased by nearly £300 million in the two years since a direct route to Beijing was introduced.

Making the link between connectivity and trade, the report cites how the UK has more freight capacity to the US than any other EU country, ensuring that last year 60% of the UK’s trade value with the US was transported by air (compared to 51% for France and 36% for Germany). By contrast, the UK currently has less capacity to China than either Germany or the Netherlands.

The report also provides a timely reminder of the damaging effects of Night Flight restrictions on UK competitiveness, since the express business model of the major international freight companies is increasingly dependent on being able to ship goods during the night, not least to meet growing consumer expectations of fast delivery.

Aviation Minister Baroness Sugg said: “Air freight is vital to the UK and global economy, delivering jobs across the country and transporting goods to people and businesses. I’m grateful for the work that Airlines UK does to promote the importance of the air freight sector to the UK and our Aviation Strategy will consider how best to support the future growth of this important industry in the UK.”

Lynne Embleton, Chief Executive, IAG Cargo, said: “Air freight is vital for the UK economy as this report demonstrates. The industry is built on speed and reliability – characteristics that helped IAG Cargo carry billions of pounds of UK exports and imports last year including life-saving drugs, fresh produce, essential tech and machinery parts. This supports a wide range of British businesses. As we prepare for Brexit, the Government’s Aviation Strategy must take the value of air freight to the UK economy into account and help the industry grow and further connect Britain to the wider world”.

Nick Platts, Head of Cargo, Heathrow, said: The UK has always been a great trading nation and Heathrow plays a unique role today in continuing that legacy. As the country’s most valuable port handling over £106bn of trade annually, Heathrow already connects Britain’s businesses with new customers in growing markets all around the world. Our expansion plans are on-track and will see us double our cargo capacity and add up to 40 new long-haul routes. But we can’t be complacent. Policymakers must not underestimate the competitive advantage of Britain’s air freight strength and ensure the right policies are in place that will enable us to keep Britain at the heart of the global economy.”

 Tim Hawkins, Chief Strategy Officer, Manchester Airports Group, said: “Air freight plays a critical role in supporting continued growth of the UK’s world class industries. The Government’s new Aviation Strategy is the opportunity to understand the future needs of these industries and the role that key strategic hubs across the UK can play in delivering a global trading network.

“The increasing range of ‘just in time’ express cargo services is appreciated by anyone ordering or sending a package via the internet, and airports like East Midlands and London Stansted have a vital role to play in keeping trade and e-commerce moving. At the same time, growth in long haul bellyhold cargo from airports like Manchester demonstrates there is huge opportunity to drive value directly into the UK’s regions.”

The full report is available here.

Airlines UK response to the publication of Civil Aviation Authority guidance on assisting passengers with hidden disabilities

Responding to the publication of Civil Aviation Authority guidance on assisting passengers with hidden disabilities, a spokesperson for Airlines UK, said:

“UK airlines have a proven track record of working to make air travel as accessible as possible. Airlines will engage closely with the CAA on this guidance and also actively promote the steps already in place to ensure passengers with any disability have the best experience when taking to the skies. The best thing a passenger with a hidden disability can do is pre-notify their airline in order to request additional assistance and make their individual needs known.”    

Advice to UK consumers impacted by Primera Air ceasing operations

Primera Air Scandinavia, a Danish scheduled air carrier, and Primera Air Nordic, a Latvian air carrier, which offered a number of services from Birmingham and Stansted to various points in Europe, Canada and the United States, have ceased to trade and suspended all operations with immediate effect.

Advice to UK consumers seeking information about refunds, travel insurance claims or ATOL protection: https://www.caa.co.uk/Passengers/Resolving-travel-problems/Travel-company-problems/Failure-of-scheduled-airlines/

We are aware of the following airlines offering Primera Air passengers rescue fares:

Norwegian

British Airways

Virgin Atlantic and Delta Air Lines

  • Routes available: Between London Heathrow and New York, Washington DC, Boston and Toronto
  • How to book: Call 0344 8747747 in the UK  or +1 800 862 8621 in the U.S
  • More details: https://www.virginatlantic.com/

Ryanair

easyJet

  • Routes available: routes previously operated by both Primera and easyJet
  • How to book: 0330 365 5000

Airlines UK response to publication of Government technical notices on Brexit and aviation

Responding to the publication of three Government technical notices on Brexit and aviation covering market access, safety and security, Tim Alderslade, Chief Executive of Airlines UK, said:

“Airlines are confident that there will be a new agreement on aviation between the UK and the EU. Whilst we don’t support a no-deal Brexit, we welcome that both the UK and the EU are proposing in this event a minimum agreement that would cover flight and safety requirements for the benefit of both passenger and cargo services.”

UK airports losing out on over 60 new direct routes because of sky-high rates of Air Passenger Duty, report concludes

UK airports could be losing out on over 60 new direct routes – including 15 long-haul connections outside of London – because of current Government policy on Air Passenger Duty (APD) – a new report has found.

A study carried out by Frontier Economics – commissioned by Airlines UK, the industry association that represents 13 UK-registered carriers – looked to identify potential new connections that could receive a viability boost if the tax were abolished. It concluded that 66 new routes could be added by airlines, including:

  • 20 domestic connections
  • 31 short-haul connections (excluding the UK)
  • 15 long-haul connections outside of London

The report also found that of a sample of eight routes dropped by airlines in recent years on the grounds that they were loss making all of them could have been viable if APD had been abolished.

The purpose of the report was to describe how APD – the departure tax paid by all passengers taking off from a UK airport – impacts on airline route economics and capacity decisions. It concludes that by increasing the price of tickets for passengers, the tax dampens demand and impacts negatively on connectivity at UK airports. It highlights that:

  • APD was found to constitute as much as 50% of the price of an off-peak short-haul ticket (from UK to Poland) and 44% the price of an off-peak long-haul ticket (from UK to Israel).
  • By raising around £3.4 billion per year, APD represents around the same cost as the total aeronautical revenue (the money raised through charges paid by airlines) generated by all airports in the UK.
  • Through analysis of 2017 schedules data at the 20 largest airports in the UK, by movements, a total of 66 new direct connections could potentially be viable if APD were abolished, such as:

Domestic connections – examples include Liverpool to Southampton; Bristol to Leeds Bradford; and Edinburgh to Guernsey

Short-haul connections (excluding the UK) – examples include Belfast to Madrid; Southampton to Barcelona; and Aberdeen to Munich

Long-haul connections – examples include Bristol to Dubai; Edinburgh to Delhi; and Birmingham to Tel Aviv

Commenting on the report, Tim Alderslade, Chief Executive of Airlines UK, said:

“As we prepare to leave the European Union we should be doing everything in our power to create the conditions for economic success – and as an island nation it is hard to see how levying the highest rate of tax on air travel in the world is compatible with this goal. Airlines are in the business of responding to demand, and by increasing the price of a ticket by such an extent the Government is directly contributing to fewer connections at UK airports and lower frequency on existing services. The costs of such a counterproductive policy are there for all to see – with dozens of potential services, including long-haul connections outside of London, proving unviable under current conditions, putting a brake on the UK’s economic growth. 

“The message from this report is clear – get rid of this damaging tax once and for all and carriers will be in a position to respond in kind with more routes, greater frequency and better connectivity for the whole of the UK.”     

Johan Lundgren, Chief Executive of EasyJet, said:

“Removing Air Passenger Duty would allow airlines to provide more routes and lower fares for passengers in the UK, offering even more choice and important economic connections. This is a clear opportunity for the Government to help business all across the UK to do more business abroad.”

Craig Kreeger, Chief Executive of Virgin Atlantic, said:

“With Brexit on the horizon the UK should be working harder than ever to demonstrate it is open for business, not levying the highest rate of tax on air travel in the world. We need the Government to send a clear signal that it is serious about helping us to connect to international markets and that it sees our world-class aviation sector as a key component of the nation’s future economic success.”

Priti Patel, Member of Parliament for Witham, said:

“Britain’s high rates of Air Passenger Duty act as a barrier to economic growth and this report shows how this tax is damaging our country. When we are competing in a global market for businesses, investors and tourists to come to Britain this tax on travel puts people off and is stopping business from creating jobs. This tax needs dealing with so we can open up more trade links and travel routes to the rest of the world and attract more businesses and tourists into Britain.”

Jim Shannon, Member of Parliament for Strangford, Northern Ireland, said:

“This is yet more compelling evidence that the current high level of UK APD is damaging the overall UK economy. We’re particularly hard hit in Northern Ireland as we share a land border with a country with no equivalent aviation tax. Every extra route means more quality jobs and increased growth. Northern Ireland needs action on this tax, and so does the rest of the UK; action to boost jobs and trade. My colleagues and I will be pushing hard for this in the upcoming Budget.”  

 

The full report is available here.

UK airlines respond to Civil Aviation Authority poll on consumer satisfaction with air travel

Commenting on the publication of the latest Civil Aviation Authority (CAA) consumer survey into satisfaction with air travel, a spokesperson for Airlines UK said:

“UK airlines work hard to ensure that passengers have an enjoyable travelling experience, and as the latest CAA tracker shows in the vast majority of cases this is already happening. Airlines are committed to consistently improving their offering whilst delivering travel at lower cost, and it should be remembered that fares have come down by an average of 40% over the past couple of decades, with more people choosing to travel by air than ever before.

“Occasionally things do go wrong and that is why airlines provide support to passengers, including complying with all legal requirements on passenger rights and consumer protection – paying compensation when it is due and offering great customer service to their 270 million passengers, in what is a highly competitive industry.

“Many parts of the passenger journey are out of the control of airlines, for example and as cited by the CAA the experience of navigating the immigration hall upon arrival, and we have been vocal that the service provided by Border Force at many airports, in particular Heathrow, over the past few months has been unsatisfactory, with lengthy queues becoming the norm for many travellers. Airspace delays and multiple strikes also play their part – and the quicker Government gets on and delivers airspace modernisation the better. We are committed to working together with Ministers and all parts of the industry to ensure that passenger expectations are met.”

Latest CAA disruptive passenger data shows the need for airside licensing

Commenting on the publication of the latest Civil Aviation Authority (CAA) data on disruptive passengers, which show the CAA has already received more than 200 incident reports about disruptive passengers from UK airlines in 2018, Tim Alderslade, Chief Executive of Airlines UK, said:

“Although incidents of disruptive behaviour are rare, where they do happen the consequences can be serious. As these stats demonstrate, the problem has increased substantially over the past 5 years. We’ve been working closely with Government and the CAA, as well as other industry stakeholders, to tackle this problem, however this worrying trend of increased incidents shows that more can be done.

“As airline data shows around half of cases involve alcohol, airlines believe that the current exemption for airports from the Licensing Act should be removed so whilst passengers can still enjoy a drink to start their holiday, airport outlets would be subject to the same licensing requirements as bars, pubs and other outlets selling alcohol in towns and cities across the country, as well as landside at airports.”

UK airlines comment on Heathrow expansion vote – “a welcome shot in the arm for UK plc, but concerns about cost and early morning operations remain”

Commenting on parliamentary support being given to expansion at Heathrow Airport, Tim Alderslade, Chief Executive of Airlines UK, the industry association that represents UK carriers, said:

“This is a welcome shot in the arm for UK plc, and a sign that there is clear political consensus within the House of Commons for taking this project to the next stage. Airlines stand ready to respond to the unlocking of new capacity by creating new routes and helping to connect the UK to new markets and destinations. The economic boost this will provide to all regions of the UK will be transformational.   

“We’ve always said that we have concerns about some elements of the scheme – notably on future charges, as well as the impact of restrictions on early morning operations on UK connectivity for cargo and passengers – and we will continue to work constructively with the CAA on designing a regulatory regime that will ruthlessly protect passengers from increased costs. We fully expect the Secretary of State to enforce his stated aim of keeping passenger charges at today’s levels but until we receive complete clarity on this our support for the new runway will remain conditional for now.”