UK airlines respond to Heathrow Airport congestion charge proposal

Commenting on proposals put forward for a congestion charge to be levied on some air passengers driving to Heathrow airport, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered carriers, said:

“Notwithstanding the fact that much of the pollution is caused by non-Heathrow related congestion, the Government needs to do more to improve public transport to the airport. Whilst access is very good in places, from the West and South, in particular, it is scratchy at best and it seems unfair to penalise people who have no other reasonable way, other than the car, of getting to their destination. Speeding up the delivery of western rail access to Heathrow should certainly be a priority for Government. We need much more consultation on this proposal – its knock-on impact on congestion elsewhere and its effect on consumers. This will, in effect, be another tax on air travel, at a time when we have the highest tax on aviation in the world in the form of Air Passenger Duty.”

Airlines UK responds to the Air Departure Tax Bill being passed by the Scottish Parliament

Responding to the passing of the final stage and approval of the Air Departure Tax (ADT) Bill in the Scottish Parliament today, a spokesperson for Airlines UK, the industry body that represents UK airlines, said:

“The Air Departure Tax Bill has now passed its final hurdle in the Scottish Parliament. From next year, Scotland will have its own tax regime for passengers flying from Scottish airports. We await the details of the ADT banding and rates, which are due later this year, with keen interest.

“At a time when competitor nations are busy reducing or abolishing their own versions of the Air Departure Tax – including Ireland, which has seen a surge in new routes and passengers since it took action to make its airports more competitive – it will make little sense for Scotland to put itself at a disadvantage by continuing to levy sky-high taxes on aviation.

“The airline sector has been clear that taking action on ADT will make a big difference to businesses and families – and provide a welcome boost to the Scottish tourism industry. Our members would see Scotland – a key market for them already – as an even more attractive destination to add capacity and put on new routes. Importantly, this could also be done in a way that is environmentally sustainable – thanks to the huge and continuing investment airlines are making in cleaner, quieter aircraft and the ambitious carbon reduction targets the industry – encompassing airlines, airports, manufacturers and others – has signed up to.”​

UK airlines are responding to the carbon challenge and can deliver growth in aviation through reduced levels of ADT

With the Scottish Parliament Finance and Constitution Committee today considering the Air Departure Tax Bill at Stage 2, Airlines UK, the industry association that represents UK-registered carriers, repeats its support for a reduction in ADT and highlights the commitment of UK airlines to sustainability and emissions reduction.

Tim Alderslade, Chief Executive of Airlines UK, said: “It is clear that existing rates of UK APD place Scotland at a competitive disadvantage compared to the rest of Europe and act as a barrier to trade, investment and tourism. Reducing the new Air Departure Tax by 50% would make Scotland a more attractive place for airlines to add capacity, delivering new routes and more services. This would have substantial economic advantages, with a 2015 York Aviation report concluding that such a reduction would create nearly 4,000 jobs and add £1 billion to the Scottish economy.

“However, airlines are clear that growth must go hand in hand with actions to cut global CO2 emissions and UK carriers take their environmental responsibilities very seriously. The industry is on target to meet its ambitious goal of reducing global CO2 emissions from all journeys, by half of their 2005 levels, by 2050 – with UK airlines having already reduced emissions by 20 million tonnes since 2005.

“This reduction has been achieved predominately through the introduction of over 470 cleaner, quieter aircraft into service over the last decade, with orders placed for another 400. These new planes offer at least a 13% improvement in fuel efficiency. Government data shows that in 2015, jet fuel deliveries to UK airports, for UK and non-UK airline operations, were 10% lower than in 2006, despite 20 million more air passengers being carried. Essentially therefore, from 2006 to 2014, growth in UK aviation was delivered without any increase in C02 emissions.”

UK airlines set out manifesto asks for new Parliament

Airlines UK, the industry association that represents UK-registered carriers, has set out a number of manifesto ‘asks’ ahead of the General Election in June, with Brexit, taxation and airport capacity at the top of its list of priorities.

A number of policy areas are listed on which action is required in the next Parliament to create a framework that will encourage UK airlines to compete, grow and deliver more in the years ahead.

• Brexit – Safeguard EU, US and international market access for airlines; continue UK membership of the European Aviation Safety Agency (EASA) with all EASA rules and regulations applied to UK operators and companies based here and the UK continuing to receive full voting rights within EASA; continue UK involvement in the development of Single European Sky (SES), and participation in SESAR; retain ability to employ staff from across Europe post-Brexit and protect current employment rights for those already employed in the UK or elsewhere in the EU; ensure there are no further restrictions to UK border arrangements.

• Airport capacity – Continue to express commitment to expansion at Heathrow airport at a reasonable cost, with charges reducing over time with increased movements; put in place a policy framework that supports growth in aviation at other UK airports, through airspace modernisation, surface access improvements and operational changes that enhance resilience.

• Tax – Abolish APD in the next Parliament to transform the UK’s international competitiveness, boost trade and support tourism; ensure that reductions in APD in Scotland do not cause competitive distortions in other parts of the UK.

• Sustainability – Deliver legislation for including all sustainable aviation fuel producers in the Renewable Transport Fuel Obligation. Provide a clear long-term policy to encourage UK sustainable aviation fuel production.

• Borders and Visas – Give Border Force the resources it needs to deliver a safe and secure border while meeting passenger and airline expectations for queue times and customer service; ensure there is no relaxation of current targets for queue times at the border and that these times are benchmarked regularly against our competitors; if a UK Electronic Travel Authority (ETA) is introduced for some non-visa nationals ensure the scheme is user friendly and cost effective; improve the competitiveness of the UK visa system in China and other important markets like India.

• Disruptive passengers – Amend the Air Navigation Order to make consumption of a passenger’s own alcohol onboard an aircraft a criminal offence.

Tim Alderslade, Chief Executive of Airlines UK, said: “UK aviation is uniquely placed to deliver the Government’s vision of a global, outward looking Britain. Airlines – whether full service, low-cost, charter or freight – play a key role as economic enablers of GDP, connecting all regions of the UK to countries across the world, including many of the important economies that, post-Brexit, the UK will be seeking closer ties with. However, there are obstacles to maximising this opportunity and it is in these areas that we ask Ministers to work with us in the next Parliament.

“Brexit will continue to be an area of major interest, with aviation providing important economic connections that must continue once the UK leaves the EU. We look forward to the EU and UK reaching an agreement as soon as possible that allows consumers and businesses from all European countries to continue to travel to and from the UK and around Europe just as they do today.

“The airline community will continue to support expansion at Heathrow, provided it is delivered at a reasonable cost with charges reducing over time with increased movements. Airlines are clear that the cost of expansion they and their customers pay for is a key factor. We need the right scheme at the right price, at the right time, to meet the needs of passengers.

“That said, with a new runway not expected to be operational for many years the Government needs to take steps to encourage airlines to develop new routes from other airports. This means encouraging free and open competition and not picking winners for expansion. Surface access improvements, reductions to APD, airspace modernisation and operational changes that enhance resilience will help to widen catchment areas and make more routes viable.”

Airlines UK respond to Article 50 announcement

Responding to the announcement by the Prime Minister that she has today invoked Article 50, paving the way for the UK to withdraw from the European Union, Tim Alderslade, Chief Executive of Airlines UK, the industry body representing UK-registered airlines, said:

“People will continue to want to fly across Europe after the UK leaves the EU. We look forward to the EU and UK reaching an agreement as soon as possible that allows consumers and businesses from all European countries to continue to travel to and from the UK and around Europe just as they do today.”

Norwegian UK joins Airlines UK

The UK subsidiary of low-cost airline Norwegian has become the latest member of Airlines UK, the industry body that represents UK-registered carriers.

Norwegian is the third largest low-cost airline in Europe with 30 million annual passengers. The UK is playing an increasingly important role in this growth and in 2016 the airline flew 4.5 million passengers to and from 4 UK airports, with further new routes, increased flights and new jobs planned in the UK this year. To support this growth, the UK subsidiary ‘Norwegian UK’ (NUK) was established in November 2015. NUK will allow Norwegian to build on its growing UK operation by accessing traffic rights to a series of global markets.

Airlines UK is the trade body for UK-registered airlines, with members representing all sectors of the industry. In 2015, Airlines UK members employed 76,000 people and were responsible for some 99% of UK airline output, carrying 144 million passengers and 1 million tonnes of cargo. The twelve Airlines UK member airlines – including Norwegian – are: British Airways, CargoLogicAir, DHL, easyJet, Flybe, Jet2.com, Monarch, Norwegian UK, Thomas Cook, Thomson Airways, Titan Airways and Virgin Atlantic. The association works with governments, regulators and legislators to promote the interests of UK airlines, and with organisations across the sector to encourage long-term and sustainable growth in aviation. It formulates opinions and engages with stakeholders on a number of issues, including airport capacity, taxation, sustainable aviation, disruptive passengers and regulation and consumer protection.

Tim Alderslade, Chief Executive of Airlines UK, said: “Norwegian are fast establishing a major presence in the UK, with current operations at 4 airports and exciting plans for future growth. As the association that advocates on behalf of UK-registered airlines we were keen to work more closely together with NUK to strengthen our campaigning voice and ensure that we are best representing the sector in discussions with governments and regulators. There is a huge amount going on at the moment – from ensuring that the Brexit negotiations between the UK and EU safeguard market access for airlines to campaigning for lower rates of taxation on our industry and working with Government to produce an aviation strategy that promotes sustainable, long-term growth across the whole of the country. Partnering with NUK will better enable us to do this and we look forward to working with them over the months and years ahead.”

Lennart Ceder, Chief Operating Officer at Norwegian UK, said: “Airlines UK has a crucial role in shaping the thriving British aviation industry so as Norwegian continues its rapid UK growth, we are delighted to become members. Norwegian believes not just in healthy competition but also healthy respect between airlines so we look forward to uniting with other UK carriers to tackle the many challenges and opportunities we all face together.

UK Airline CEOs write to Scottish Parliament Committee Chair to emphasise support for Air Departure Tax reduction

The Chief Executives of some of the UK’s largest airlines have re-emphasised their support for a 50% reduction in the Air Departure Tax in Scotland.

In the same week that the Scottish Finance Minister, Derek Mackay MSP, appears in front of the Scottish Parliament Finance Committee (29th February) to explain to MSPs how and when such a reduction will be brought into force, the Chief Executives of Flybe, Thomas Cook, Thomson Airways and Virgin Atlantic, have written to Bruce Crawford MSP, Chair of the Committee, to set out their reasons for supporting more competitive aviation taxes in Scotland.

Excerpts from the letter include the following:

• “There is no doubt that APD is damaging to Scotland and places it at a competitive disadvantage which acts as a real barrier to trade and investment. A 50% reduction in the rate of the new ADT for all routes would improve Scotland’s world standing in terms of both short and long-haul travel. Globally, for Band A economy Scotland would rank ninth highest amongst OECD countries, behind the rest of the UK, Greece, Italy and Chile. Scotland would rank second for Band B economy, behind England and Wales, however its rate would be much more in line with the equivalent rates for Germany, Australia and Austria.”
• “This lower passenger tax would certainly make Scotland a more attractive place for airlines to add capacity, delivering new routes and more services.”

• “We recognise that growth must go hand in hand with actions to cut global CO2 emissions from all journeys by half of their 2005 levels by 2050 – a key industry target. We are on target to meet that goal – having collectively reduced our emissions by 20 million tonnes since 2005. This has largely been achieved through the introduction of more than 470 cleaner, fuel efficient aircraft into service over the past decade, with orders placed for another 400. UK Government data shows that in 2015, jet fuel deliveries to UK airports, for UK and non-UK airline operations, were 10% lower than in 2006, despite 20.9 million more air passengers being carried. In other words, from 2006 to 2014, growth in UK aviation was delivered without any increase in CO2 emissions.”

• “In a post-Brexit world we believe positive action on aviation taxation would send a clear message that Scotland is open for business and ready to welcome the world. This would represent a massive boost to the Scottish tourism industry and airlines are ready and keen to respond with new routes and substantial increased investment.”

Tim Alderslade, Chief Executive of Airlines UK, the industry body that represents UK airlines, said: “At a time when competitor nations are busy reducing or abolishing their own versions of the Air Departure Tax – including Ireland, which has seen a surge in new routes and passengers since it took action to make its airports more competitive – it makes little sense for Scotland to continue to put itself at a disadvantage by levying such sky-high taxes on aviation.

“The airline sector has been clear that taking action on ADT will make a big difference to businesses and families – and provide a welcome boost to the Scottish tourism industry. Our members would see Scotland – a key market for them already – as an even more attractive destination to add capacity and put on new routes. Importantly, this could also be done in a way that is environmentally sustainable – thanks to the huge and continuing investment airlines are making in cleaner, quieter aircraft and the ambitious carbon reduction targets the industry – encompassing airlines, airports, manufacturers and others – has signed up to.”

Notes to Editors

Signatories to the letter include:

• Christine Ourmieres-Widener, Chief Executive of Flybe
• Peter Fankhauser, Chief Executive of Thomas Cook Group
• John Murphy, Managing Director of Thomson Airways
• Craig Kreeger, Chief Executive of Virgin Atlantic Airways
• Tim Alderslade, Chief Executive of Airlines UK