Airlines Response to January 6th Changes to International Travel Restrictions

Commenting on the changes announced today to international travel restrictions, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:  

 “This is a hugely welcome move at a critical time in the booking season for passengers, and will provide a massive boost to those wanting to travel abroad or come to the UK this year. People will now be able to book knowing that – for the fully-vaccinated – all emergency testing restrictions have been removed. 

 “Today marks an important step towards learning to live alongside the virus, helping passengers and the travel sector look ahead to what will be an all-important spring and summer season.”

Our comment on the need for Treasury support for UK airlines

Commenting on the need for Treasury support for UK airlines, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“Aviation has received no direct support since the end of furlough and yet until recently was the only sector with direct restrictions. We are approaching the key booking period for the year and consumer sentiment is shot to pieces, due to the testing requirements imposed on travel that can cost hundreds of pounds when free NHS tests are available in other sectors.

 “We have a bleak few months ahead with potentially little to no revenue, yet still need to be able to deliver for passengers and UK plc in the spring and summer. The cost to the wider economy will be hundreds of millions of pounds if we can’t open up – not to mention the jobs and skills that will be lost from the sector, many permanently, across all parts of the UK. We support 500,000 direct jobs. These can’t be sustained if there is no demand. 

 “Offering more debt to a sector that has already borrowed billions of pounds is not sustainable. Last March the Chancellor asked airlines to ‘pursue all possible actions to preserve cash and maximise liquidity’. We’ve done this – and more. Aviation has to be treated on a par with the domestic economy.

 “Unless Government takes action to remove the remaining emergency travel restrictions, that it admits are increasingly redundent as Omicron becomes the dominant variant, the Chancellor must urgently come to the table with economic support for the aviation industry.”

Airlines respond to red list country changes

Commenting on the announcement that all 11 countries will be removed from the red list tomorrow at 4am, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“Removing these countries from the red list makes complete sense but doesn’t go nearly far enough. If the red list isn’t necessary given that omicron is established here at home, then neither are the costly emergency testing and isolation measures imposed on even fully vaccinated travellers, which again put us completely at odds with the rest of Europe. It is testing that is the deterrent to travel, not the relatively limited red list. 

 “Government has admitted that the measures introduced are disastrous for the travel sector, and the science says they aren’t now required. The Health Secretary says he wants to act quickly to remove unnecessary restrictions, and we implore him to make good on this by scrapping testing as soon as possible, otherwise the key Christmas and New Year booking period will be undermined. This is make or break for UK aviation and if Government is unable to row back from these restrictions over the New Year, it will need to step in with further economic support for a sector that again has been singled out”. 

Airline CEO letter to Prime Minister – Covid travel restrictions

13.12.21

Dear Prime Minister, 

As leaders of UK airlines, we are deeply concerned about the haphazard and disproportionate approach by Government to travel restrictions following the emergence of the Omicron variant.

Ten days ago, you rightly said that vaccines and boosters remain our best line of defense against variants of Covid-19 and highlighted the need for proportionate travel measures. It is increasingly likely that Omicron will soon be the dominant variant in the UK, and the Health Secretary has already said it is circulating in the UK independent of international travel.

Whilst we fully recognise the need to take steps to contain the initial impact of the Omicron variant, travel has been singled out with the introduction of disproportionate restrictions. Further, pre-departure and upon-arrival testing clearly add very little value to our Covid protection, but unnecessarily disrupt Christmas for families as well as businesses while severely damaging the UK travel industry. 

The Government must now take the following steps to support consumers and prevent the permanent scarring of our industry, which plays an essential role in the UK’s global economy and supports over 500,000 direct jobs in every corner of the country:

  • All emergency testing for fully vaccinated passengers should be removed at the formal review on 20 December
  • A package of bespoke economic support measures should be provided immediately to bridge the sector through this crisis

Only the UK requires pre-departure and post-arrival PCR tests, irrespective of vaccination status. Whilst we have heard much talk of cracking down on the ‘rip-off’ testing regime – charging up to £399 for a PCR test – we’ve seen precious little action, despite repeated promises.

We have also seen immediate problems with red list arrivals, with many customers booking hotels which either were not ready or had been double booked, requiring them to rebook and pay again. Many people are stranded abroad through no fault of their own, due to a policy that cannot be executed properly.

We and our customers feel sincerely let down, having believed a more pragmatic, evidence-led approach to travel, in line with the rest of the world, had been achieved and agreed by all concerned just a few months ago. Instead, the layering of additional travel restrictions, introduced at short notice without consultation or discernible strategy, have disrupted Christmas plans and severely undermined customer sentiment just before the crucial Christmas and New Year booking season (up to 30% of tickets are sold).

We urgently request you meet with us, to understand the problems that we and our customers are now facing because of these measures, which the Transport Secretary himself admitted risked ‘killing off’ the travel industry. We urge you to act now to prevent this from happening.

Yours sincerely, 

  • Andrew Flintham, Managing Director, Tui UK & Ireland
  • Eddie Wilson, CEO, Ryanair
  • Johan Lundgren, CEO, easyJet
  • Jonathan Hinkles, CEO, Loganair
  • Sean Doyle, CEO, British Airways
  • Shai Weiss, CEO, Virgin Atlantic
  • Steve Heapy, CEO, Jet2.com
  • Tim Alderslade, CEO, Airlines UK

UK Airlines response to the recent changes to travel restrictions, Omicron

Commenting on the recent changes to international travel restrictions, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

 “We understand the cautious approach being taken to travel from Southern Africa in light of concerns over the new variant. Airlines are working with governments and are in touch with affected customers. The situation is developing rapidly, and hopefully as more data emerges emergency border restrictions can be reversed quickly – and applied only where they will make a material difference.

 “In the meantime, we urge Ministers to make mandatory PCR tests free of charge for impacted passengers, many of whom are now in the invidious position of having less than 48 hours to arrange extra testing whilst overseas. Many will struggle to do so which is why support from Government – at no excessive cost to the Exchequer – would be an appropriate gesture.”

Airlines UK response to proposed Heathrow passenger charge increases

Great British Rip-Off: Airlines issue stark warning to regulator that Heathrow already charges more per passenger than every other major airport in the world and allowing its sky-high fees to take-off again will hike its fares to double that of Charles de Gaulle in Paris, hurting customers and UK’s economic recovery 

  • UK’s airport regulator, the Civil Aviation Authority (CAA), is deciding whether to allow Heathrow to charge up to £30 per passenger to use its airport from January next year – with the potential to increase again in the summer
  • Heathrow had asked for almost £45 per passenger
  • Airport is already one of the most expensive in the world and its greed could divert tourists and investors to other European hubs – channelling money away from the UK

It’s already the most expensive airport anywhere in Europe yet the Civil Aviation Authority (CAA) is contemplating just how much Heathrow should be allowed to increase its charges per passenger, with the fee set to rise from around £19 this year to £30 from January 2022, and the potential for this fee to rise further.

Last month the regulator ruled out the doubling of charges proposed by the airport, but said Heathrow could still be allowed to increase charges to £30 per passenger at the start of the year and up to £34.40 from next summer, a staggering 75% increase on today’s rates.

It means the cost of travel for passengers could rise with airlines unable to absorb the entirety of the charges. The charge per passenger is based on the airport’s prediction of the cost of what a passenger uses during their journey, including airport security, water and energy costs, etc.

While airlines have tapped investors rather than customers for loans to help them survive the global pandemic, Heathrow has taken a very different approach – charging higher passenger fees for trips being taken now, to cover the cost of flights that weren’t taken during the crisis, and borrowing more money that it expects customers to pay back through this increased charge.

Heathrow’s charges are already the highest in the world. This latest hike would come at a time when Heathrow’s international competitiveness has seen it fall to the sixth busiest airport in the world, behind the likes of Paris, Amsterdam and Frankfurt.

And while fees charges by its European competitors’ have mostly remained flat or fallen, Heathrow has chosen to inflate the fees it charges so that next year it is likely to be more than twice as expensive as some other hubs.

AIRPORT Today’s charge per passenger* Proposed 2022 charge per passenger*
Heathrow £19.36 £29.50
Zurich ⇓ 31% less than Heathrow ⇓ 48% less than Heathrow (Heathrow is 1.9x more expensive)
Frankfurt ⇓ 31% less than Heathrow ⇓ 45% less than Heathrow (Heathrow is 1.8 x more expensive)
Paris ⇓ 41% less than Heathrow ⇓ 53% less than Heathrow (Heathrow is 2.1x more expensive)
Madrid ⇓ 52% less than Heathrow ⇓ 63% less than Heathrow (Heathrow is 2.8x more expensive)
Amsterdam ⇓ 51% less than Heathrow ⇓ 58% less than Heathrow (Heathrow is 2.4x more expensive)

*Source: Today’s charge per passenger: Jacobs Review of Airport Charges 2020; Proposed 2022 charge per passenger: Airlines UK analysis of current charges consultations at European airports

Today's charges per customer Source: Jacobs Review of Airport Charges 2020

Today’s charge per customer
*Source: Jacobs Review of Airport Charges 2020

2022 charges per customer Source: Airlines UK analysis of current charges consultations at European airports

2022 charge per customer
*Source: Airlines UK analysis of current charges consultations at European airports

Heathrow’s proposed increase would be the highest in Europe, putting its fees well above all other major airports and risking more traffic moving to European competitor hubs with the UK’s slump down the league table becoming permanent.

Commenting on the proposed increase in charges, Tim Alderslade, Airlines UK CEO, said:

 “It’s crazy that at a time when the travel industry needs holidaymakers to return to the skies, the UK’s biggest airport is hellbent on trying to price them out, penalising them for not travelling during the pandemic by adding an over-inflated premium to their tickets rather than turning to its shareholders or taking out loans, like the rest of the industry.

 “Aviation is vital to support the UK’s economic recovery, but this move will only drive business and jobs elsewhere in Europe. We know the CAA prides itself on protecting consumers and we urge it to do just that and reverse this dramatic rise in charges from a monopoly-abusing hub airport.”

 At a Transport Select Committee hearing on Wednesday, Willie Walsh, Director General of IATA, warned that if the CAA allows Heathrow’s new charges to be taken forward; “It will just price the UK out of business completely”, and suggested that consumer interests “are not protected” under the airport’s proposals.

Airlines respond to the changes to Air Passenger Duty

Commenting on the changes to Air Passenger Duty announced today by the Chancellor of the Exchequer, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“Reducing the rate of domestic APD will correct an anomaly that has existed for too long and greatly enhance connectivity to and between all the regions of the UK, supporting route viability and enabling businesses and sectors across the economy to access markets, attract inward investment and support our tourism industry.  

 

“For many people and companies wanting to do business in the UK or see family and friends – particularly across Scotland and Northern Ireland – travelling by air remains the only viable option. This will make a tangible difference to their lives, providing more choice and frequency for consumers, and bringing all parts of the country closer together.

 

“But we’re still the most taxed airline sector in the world and as we recover from the pandemic, we’re being burdened with a new, uncompetitive ultra-long-haul APD hike. While APD was initially introduced as a “green levy”, not a penny has ever been used for environmental purposes and increases will only hinder UK aviation’s ability to invest in decarbonisation.

 

“This will also impact the UK´s economic recovery, consumers and jobs. Given the acute pressure on business, the hike in international APD will make it even harder for UK companies to trade in some key overseas markets. This is ultimately a tax on Global Britain.”

Airlines comment on the announcement by the Civil Aviation Authority on Heathrow passenger charges

Commenting on the announcement this morning by the Civil Aviation Authority on Heathrow passenger charges, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“The CAA is our last line of defence against a monopoly-abusing hub airport. Monopolies will always try it on and that’s why we need a strong regulator to clamp down on what is blatant gouging. How on earth can it be in the interests of consumers to ramp up charges by as much as 50%?

 

“Passengers need to be front and centre here – it’s Heathrow’s shareholders and not our customers who should be asked to foot the bill. We will oppose this in the strongest terms.”

Airlines respond to PCR test removal date for vaccinated passengers

Commenting on the announcement that PCR tests will be removed for vaccinated passengers returning to the UK from 24 October, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“This is great news and we’re pleased to get it over the line in time for the crucial half-term period, which will be a massive relief to families desperate to get away this autumn. Vaccinated passengers can be reassured that they do not need to book or take an expensive PCR test when they return to the UK, which will further reduce the cost of travel.  

“It adds to the positive news from last week with the substantial reduction of the red list and announcement of further mutual recognition of vaccines, and taken together this is a major step forward that will support the desperately needed recovery of our sector.”

Airlines UK response to latest Red list update

Commenting on the latest Red list update, Airlines UK, the industry body representing UK-registered carriers, said:

“We welcome the significant reduction of the Red list as another positive step towards normalising air travel and reopening our sector. This builds on recent changes that have seen travel to many more countries become easier and cheaper for passengers, progress we hope towards removing all test requirements for the fully vaccinated as soon as possible.

However, it is disappointing for our customers to have no definitive clarity yet on when the lateral flow changes will be introduced. With the crucial October half-term just two weeks away we urgently need clarity so that passengers can plan ahead. This is the key booking period between now and Christmas, so time is of the essence.”