Airlines UK responds to the Autumn Statement

Responding to the Autumn Statement delivered by the Chancellor earlier today, Tim Alderslade, Chief Executive of Airlines UK, the trade association representing UK airlines, said:

“The failure to take action on Air Passenger Duty is a missed opportunity to support family budgets and demonstrate that – in the current Brexit climate – the UK is open for business. It is increasingly untenable – at a time when we are looking to strike deals and open ourselves up to new markets and opportunities – for Ministers to continue to levy such excessively high levels of taxation on air travel. With new capacity at Heathrow not likely to be operational for another ten years at least, it was important for the Government to signal that improving connections from airports across the country and making the UK more competitive internationally is a top priority – and they failed in that task.  

“It is also extremely disappointing that the Government has failed to set out conclusively how they intend to respond to the Scottish Government reducing the tax by 50% in April 2018. It is still the policy of the Government to ensure that airports in England and elsewhere do not lose out by way of competitive distortion and yet by refusing to take a decision on any of the options currently under consideration until we leave the EU – whenever that may be – Ministers are prolonging the uncertainty that has built up over the past couple of years. The airline community was united in believing that none of the options were satisfactory – principally for the reason that all three would result in undue distortion of the market within England, with negative impacts for regional economies and consumers, and the summary of responses to the Treasury discussion paper published today makes clear that none of the options attracted support within industry. The fact that they have not been ruled out is a complete mystery, and begs the question of how the UK Government will respond once the APD cut north of the border takes place.”

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Joint statement between the UK Government and Airlines UK

A joint statement from the Secretary of State for Exiting the EU, the Secretary of State for Transport and the Chief Executive of Airlines UK – the association of UK airlines.

“Aviation is absolutely crucial to the UK’s economy and building a global Britain that seizes the opportunities exiting the EU presents.”

“As an island nation with global reach, we have the largest aviation network in Europe and the third largest in the world, handling over 250 million passengers and 2.3 million tonnes of cargo last year. The UK has direct connections to over 370 international destinations, more than any other EU country.”

“We will work closely together to ensure that this international industry continues to be a major success story for the UK economy – contributing around £20 billion in 2014 alone – and better understand what risks and opportunities exist. We also share a determination to give as much early certainty to the sector as possible, given the long lead in times associated with developing new routes – and to supporting the sector as much as possible in the interim.”

“Market access remains a top priority, and we want to make sure we have liberal access to European aviation markets. We will also work closely to explore new opportunities for further liberalisation. We are clear that Brexit provides greater freedom to seek new agreements between the UK and some third countries. This includes looking at possible bilateral agreements to strengthen economic and cultural ties even further with countries such as the US and Canada.”

“Other areas of critical importance to address during negotiations include aviation safety, security, air traffic management, passenger rights, customs, and the environment. We will continue to engage with the industry on these issues throughout.”

“We also share a determination to continue investment in the industry and to secure the best possible deal for UK aviation.”

“We want to work together to build on all this with a common aim to ensure that the industry – and therefore the country – remains prosperous and open for business.”

 

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Airlines urge the Government to use the Autumn Statement to remove Air Passenger Duty on air travel from UK airports.

UK and foreign airlines have urged the Government to use the upcoming Autumn Statement on 23 November to send a message to the world that the UK is open for business – post Brexit – by removing Air Passenger Duty on air travel from UK airports.

Airlines UK Chief Executive, Tim Alderslade, and Board of Airline Representatives in the UK Chief Executive, Dale Keller, said:

 “The UK’s airline organisations welcomed the announcement from the Government that approval would be granted to the building of an additional runway at Heathrow, but the truth is that this capacity will not be operational for another ten years at least. In the meantime there are airports across the UK with plenty of spare capacity, and the Government needs to do more to broaden their appeal to would-be airline customers. At the very top of the list of things they could prioritise – alongside improving surface connectivity – is dealing with APD.

“In the post-Brexit world, when we are looking to strike deals and see the UK become a standard-bearer of global free trade, it is becoming increasingly untenable for the Government to continue to levy excessively high levels of APD. Only aviation can connect the UK to the emerging markets that are seen as vital to our continued prosperity, and retaining an uncompetitive passenger tax is an open invitation to our international rivals to steal a march on us. Brexit has changed everything and we will not be able to take full advantage of the opportunities presented in terms of greater liberalisation unless action is taken now to become truly competitive.”   

 

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BATA becomes Airlines UK – the association of UK airlines

The British Air Transport Association (BATA), the trade body for UK-registered airlines, will on Monday 7 November change its name to ‘Airlines UK – the association of UK airlines’.

Tim Alderslade, Chief Executive of Airlines UK, said: “UK airlines have seen huge change and growth in the 40 years since BATA was established. Our sector is an important UK success story in which BATA has played a part. There is a huge amount going on in the industry currently – whether that’s expansion at Heathrow and ensuring that airlines are fairly represented in future discussions around cost and funding; promoting the need for aviation to be prioritised during the EU withdrawal process; and further communicating to stakeholders the huge strides forward the sector is taking to become ever more sustainable. As a result there has never been a more important time for the voice of UK airlines to be heard loud and clear in these debates by governments, regulators and the media. We wanted a name that will enable us to more easily be and do ‘what it says on the tin’ – and Airlines UK will help us to do that.”

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BATA responds to airport capacity announcement

British Air Transport Association media release

Immediate release

Responding to the announcement made this morning on expansion at Heathrow airport, Tim Alderslade, Chief Executive of the British Air Transport Association (BATA), the trade body for UK airlines, said:

“We welcome this long overdue announcement – and agree with the Government’s decision that additional capacity at Heathrow offers greater potential economic and social advantages than expansion at Gatwick. Tough discussions now have to be had by all parties – and our airline members will be closely involved in these next stages of preparatory work. The needs of passengers, cargo customers and local communities must be met.

“Our members are clear that the cost of expansion that they and their customers pay for is key and we will be scrutinising this decision and future, more detailed, plans. Heathrow is the most expensive hub airport in the world – and airports are not funded by the taxpayer, but by passengers. Therefore any new infrastructure must be cost effective. We must ensure that it is affordable and that the price paid by customers does not increase. Today’s passengers must not pay for capacity that will not be operational until the mid-2020s.

“In short, we need the right solution at the right price, at the right time, in order to meet the needs of customers.”  

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Alex Cruz, Chairman and Chief Executive of British Airways, gives 2016 BATA annual lecture

The 2016 BATA annual lecture took place yesterday afternoon, with Alex Cruz, Chairman and Chief Executive of British Airways, delivering a speech to an audience of senior industry figures and stakeholders at the London Transport Museum in Covent Garden.

BATA responds to ICAO announcement that an agreement has been reached on a global carbon offsetting scheme for aviation

Responding to the announcement that an agreement has been reached at the International Civil Aviation Organisation (ICAO) on a global carbon offsetting scheme for aviation, Tim Alderslade, Chief Executive of the British Air Transport Association (BATA), the trade body for UK airlines, said:

“The scheme agreed at ICAO will play a pivotal role in enabling UK aviation to meet its goal of achieving carbon neutral growth from 2020 whilst halving net emissions by 2050. It should not be forgotten that we are the only industry that has voluntarily agreed to such a commitment, where we are making great progress in achieving our target. 

“UK airlines have invested in more than 470 new aircraft since 2005, at a cost of over $50 billion, helping the industry to reduce its carbon emissions by 20 million tonnes. A further 350 aircraft are on order, that are due to enter into service in the coming years. Overall we are exceeding the industry target for improving our performance on carbon reduction, with an increase in fuel efficiency of over 11% since 2008. 

“This global deal – which has attracted the support of 65 countries and is expected to cover over 84% of international aviation emissions growth over its lifetime to 2035 – will complement this effort and enable aviation growth to continue – with all the associated economic and social advantages – whilst ensuring that emissions are reduced. As a sector we really have decoupled growth in aviation from growth in emissions – this is an exciting development for all those who want to see this industry prosper.” 

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BATA responds to new statistics on disruptive passengers compiled by the Civil Aviation Authority

 

Responding to new statistics compiled by the Civil Aviation Authority and published by the BBC showing an increase in incidents of disruptive behaviour on airlines, Tim Alderslade, Chief Executive of the British Air Transport Association (BATA), the trade body for UK airlines, said:

“UK airlines take a zero tolerance approach to disruptive behaviour, which is why BATA led the way in drawing up and publishing the UK Aviation Industry Code of Practice. We welcome the recognition from Government that excessive drinking at airports and on-board aircraft is an issue that needs to be addressed, and we look forward to discussing with Ministers how to best tackle this problem.

 “Airlines will, in the meantime, continue to take internal actions and work with partner organisations to reduce the number of incidents, which in the context of total UK passenger numbers are extremely rare but nevertheless can cause unnecessary disruption, annoyance and delay. Airlines are already taking a number of steps to deal with this problem – from refusing the sale of alcohol to certain customers or stopping the service of alcohol altogether, banning disruptive passengers from booking again, or actively seeking to recover costs from the passenger in case of diversions or any damage to the plane – and these will continue as we endeavour to get a grip on these increases in incidents.”  

UK airlines critical of Border Force plans for paid “fast track” passport checks at airport immigration halls

Responding to the news that Border Force is working on introducing a new Fast Track Passport Control service at immigration halls whereby passengers will be able to pay extra for “fast track” passport checks at airports, Tim Alderslade, Chief Executive of the British Air Transport Association (BATA), the trade body for UK airports, said:

 “The Government and Border Force must ensure that this premium service does not become their overriding priority. Whilst at certain airports there may be some level of demand for this product at immigration halls, such an arrangement should not detract from the need for Border Force to provide the standard, required service which ensures that service levels and targets are met. This should not become the new ‘normal’ for passengers – and they should not have to pay extra to fund a service that they should expect to receive anyway.   

 “The proposed changes could have major implications for passengers – especially at smaller airports with constrained infrastructure and limited space to accommodate premium offerings. Moreover, Brexit means that future border and immigration arrangements are unclear and therefore substantial changes should be avoided until the full implications of the referendum result as they impact on border operations are better understood.”

 

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BATA response to the announcement by the Civil Aviation Authority on Alternative Dispute Resolution

 

Responding to the announcement by the Civil Aviation Authority (CAA) that 20 airlines have signed up to CAA-approved Alternative Dispute Resolution (ADR) bodies to resolve passenger complaints, Tim Alderslade, Chief Executive of the British Air Transport Association (BATA), the trade body for UK-registered airlines, said:

“UK airlines need to provide good customer service to attract passengers in the highly competitive markets in which they operate. When things do go wrong, most complaints are resolved amicably without passengers having to resort to contacting the CAA or taking a complaint to court. For example, BATA’s member airlines served 138 million passengers in 2014, but the CAA PACT team handled just 11,500 complaints relating to our members in the year to March 2015, an approximate complaint rate of less than 0.1%.   

“Following the ADR Directive and its implementation by the UK Government, ADR was made available in the aviation sector on a voluntary basis. A number of carriers have already committed to using ADR while others will be carefully considering it as an option, ultimately basing their decision on what is best for their customers.”    

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