UK airlines and airports welcome Government reform to airspace modernisation programme

Commenting on the announcement made today by the UK Government on reform to the UK airspace modernisation programme, Tim Alderslade, CEO of Airlines UK and Karen Dee, CEO of AirportsUK, said:

“Reform to the UK’s airspace will reduce delays for passengers and cargo, improve resilience and help aviation achieve net zero. This is a major priority for airlines and airports and we strongly support these reforms in particular the commitment to consult on changes to the airspace design process.

“This consultation must result in a quicker and more proportionate system so we can deliver the overall programme as quickly as possible and ideally before the end of the decade.”

UK airlines respond to Government airport capacity announcement

Commenting on the announcement made today by the Government on airport capacity, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:  

“We welcome the strong recognition from the Chancellor of aviation’s unique role enabling economic growth in all parts of the UK. Airlines support more airport capacity to grow the economy and foster trade but expansion must be affordable, improve operational resilience for passengers and freight, and be compatible with our net zero commitments. 

“Airlines are making progress towards net zero and the industry now needs Government help to align any additional capacity with further policy support to incentivise the production of SAF and deliver urgent modernisation of airspace as quickly as possible.” 

UK airlines oppose 60% increase in cost of UK ETA

Commenting on the decision by the UK Government to increase the cost of a UK ETA by 60% whilst also exempting transit passengers from ETA requirements, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“The exemption from ETA requirements for transit passengers is a very welcome and pragmatic step, addressing the real risk that the UK would lose business to European hubs which don’t require transit visas. We urge that this exemption is made permanent given the vital role that passengers transiting the UK play in making vital international routes viable, particularly to growth markets. 

“By contrast, the increase in ETA costs to £16 – nearly three times the cost of the EU equivalent which lasts a year longer – is bitterly disappointing and makes little sense in a country that depends on its air connectivity for economic growth, and which only recently raised air passenger duty to record levels. The UK cannot hope to compete globally if we continue to place a wall of costs in front of those wanting to visit and invest in this country.”

The UK’s Sustainable Aviation Fuel Mandate officially comes into force

As the UK’s Sustainable Aviation Fuel (SAF) Mandate officially comes into force, Tim Alderslade, CEO of Airlines UK, said:

“UK airlines support the SAF Mandate as both a powerful and practical tool for driving down aviation carbon emissions and a clear signal that the industry is fully committed to a net zero future.

“Our priority is ensuring airlines have access to the increasing volumes of SAF required to meet the mandate as global demand soars, at the most competitive price possible for consumers.

The UK mandate is ambitious and scaling SAF production will mean further work to expand eligible feedstocks, incentives to help cut costs and, critically, ensuring the design of the revenue certainty mechanism enables the UK to increase production of advanced fuels this decade whilst keeping costs as low as possible, critical for achieving mandate compliance and avoiding supplier buy-out.”

UK airlines response to Independent report into August 2023 NATS IT failure

Commenting on the publication of the Final Independent Report into the August 2023 NATS IT failure, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:  

“This was a catastrophic failure of critical national infrastructure – impacting almost a million airline customers on one of the busiest weekends of the year – and today’s report contains clear evidence that NATS’ basic resilience planning and procedures were not adequate to deal with such an incident.

“We welcome the CAA’s commitment to hold NATS to account for the actions they have promised to avoid a repeat occurrence, including improvements to their governance and communications with industry. This incident cost airlines tens of millions of pounds and carriers cannot continue to act as the insurer of last resort when events like this happen, through no fault of their own. Government must consider all necessary legislative changes to enhance risk-sharing and ensure service providers – not passengers – bear the costs of their own failures in future.”

UK airlines react to 2024 Budget

Commenting on the Budget statement delivered today by the Chancellor, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“We welcome the announcement of a further 12 months of funding for the Advanced Fuels Fund, which will support UK sustainable aviation fuel production, a key airline priority with the SAF mandate due to commence in January. 

“Air Passenger Duty, however, already makes the UK less competitive and further increases in addition to rises in other business levies will impact growth, directly hitting the pockets of ordinary travellers and making it harder for UK airlines to put on new routes. We need a revised and joined-up approach to the UK’s strategically vital aviation sector.”

Airlines UK’s reaction to the King’s Speech

Commenting on the Government commitment announced in the King’s Speech to introduce a Sustainable Aviation Fuels (Revenue Certainty Mechanism) Bill in the next session of Parliament, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“The commitment in the King’s Speech to introduce a revenue support mechanism to incentivise UK sustainable aviation fuel (SAF) production is a positive step forwards. Airlines are clear that a Guaranteed Strike Price mechanism – backed and funded by Government and consistent with its approach to industrial strategy – would represent exactly the kind of strategic partnership with business that will unlock billions of pounds of private sector investment in a brand new UK SAF industry. Domestic production of SAF will make it easier for industry to meet the UK’s ambitious SAF mandate, whilst creating tens of thousands of new jobs across the UK’s industrial base and strengthening our energy security. 

“We look forward to working with Government on the scheme design so that the mechanism, whilst offering protections to both investors and consumers, can be introduced as quickly as possible with plants under construction by the end of next year.”

UK airlines respond to SAF mandate publication

Commenting on the details of the UK SAF mandate published today by Government, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“UK airlines support a SAF mandate as a vital step towards the net-zero transition as SAF will be one of the important technologies to achieve aviation’s net zero commitments. However, it is vital that Government now puts the right measures in place to incentivise production and reduce the cost of SAF as seen in the EU and US, as quickly as possible. Without these, the UK will be at a competitive disadvantage with consumers at risk of higher fares. 

 “We welcome the delay to and subsequent increase in the cap on HEFA-based SAF to allow producers time to scale-up more advanced fuels, but the Government must keep the buy-out price under regular review to avoid disproportionate price increases for consumers.

 “Ministers must also introduce legislation for a revenue certainty mechanism in the next Kings Speech to drive investment in UK SAF production and increase supply. Only then can we keep UK aviation competitive as we decarbonise.”

Airlines UK response to the independent Interim Report into the August 2023 NATS IT failure

Commenting on the publication of the independent Interim Report into the August 2023 NATS IT failure, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“This report contains damning evidence that NATS’ basic resilience planning and procedures were wholly inadequate and fell well below the standard that should be expected for national infrastructure of this importance.  

“We welcome the Committee’s plans for further investigation to provide recommendations so that this kind of catastrophic failure is not allowed to happen again.” 

UK airlines respond to standard rate Air Passenger Duty increase

Commenting on the announcement from the Chancellor that standard rate Air Passenger Duty will increase from April 2025, Tim Alderslade, CEO of Airlines UK, the industry body representing UK-registered carriers, said:

“The decision to increase APD goes against the Prime Minister’s commitment not to discourage flying through taxation and hitting passengers – including families and those travelling for leisure – with stealthy tax rises will only make the UK even less competitive on the global stage, with aviation taxes and airport charges already amongst the highest in the world. The Government should instead focus on supporting the industry’s transition to net zero which the US and EU has made billions of pounds of support available for, unlike here in Britain.”