BATA response to Interim Report from Airports Commission

Simon Buck, Chief Executive of the British Air Transport Association (BATA), responding to the publication today of the Airports Commission ‘Interim Report’, said:

“There is much to digest in the interim report from the Airports Commission. BATA welcomes the clear recognition from the Commission that there will need to be net additional runway capacity in the south east of England, where demand is greatest, in the coming decades. We do not currently have a preference for the best options or sites, but along with our member airlines, will be considering the shortlist in more detail over the coming months.

“It is now up to Sir Howard and his team to work on the shortlist of options, making sure they consider both cost and value for money as part of their assessment criteria.  

“At the same time, politicians of all stripes must commit to supporting and implementing the Commission’s final recommendations when they are published in summer 2015.

“The Commission’s findings have to be the final word on the crucial question of airport capacity for a considerable length of time. The UK cannot afford further procrastination and delay in dealing with this issue.

“We note the recommendations from the Commission for improving capacity in the short and medium term and will be considering these with our members. The implementation of any of these recommendations should serve to improve the resilience of airports. The recent recommendations by the Commission and undertakings by the Government on improving surface access to airports are particularly positive.

“BATA will also continue to support growth and the need to secure capacity at regional airports. Given the crucial role they play in the UK’s infrastructure, it is vital that connectivity between the regions and any newly created capacity in the south east is preserved and enhanced.” 

ENDS

Reaction to Final Proposals from CAA on Airport Charges at Heathrow and Gatwick

Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“Airlines are deeply frustrated and disappointed with the final proposals for consultation on airport charges published by the CAA today. 

“BATA supports improving the passenger experience and we believe this can be done without a repeat of the incredibly steep price rises we have seen in airport charges in the last few years. Prices at Heathrow are triple the level they were ten years ago and we believe there should be a real terms reduction in charges applied to each passenger at this airport for the next five year period instead of a further hike as proposed today.  At Gatwick, an increase in prices will not be in the passenger interest and will fail to offer value for money while at the same time ignoring evidence for lowering prices.

“The CAA must use the final consultation period to review and rectify its decision and properly fulfil its duty to the consumer.”

 

ENDS

 

BATA Statement on Airport Capacity

BATA CALLS ON GOVERNMENT TO COMMIT TO A ROBUST AVIATION POLICY TO SUPPORT AND GROW INTERNATIONAL AIR CONNECTIVITY

Marking the deadline on Friday 19th July for the submission to the Airports Commission of long term proposals for developing capacity, the British Air Transport Association (BATA), representing UK registered airlines, has issued the following statement:

The UK is a collection of islands off the coast of North West Europe with only one fixed land based connection to the continent. The role of aviation in maintaining the UK’s connectivity has to be seen in this context.

BATA firmly believes that both hub capacity and non-hub capacity should be increased where and as required. Increasing the UK’s capacity beyond its current constraints is essential to maintain the UK’s competitive position thus creating new business opportunities and jobs throughout the country.

As the UK’s only existing hub has effectively been at capacity for over a decade, expansion would allow UK airlines and airports to serve the customer demand that has either been lost to foreign airlines and airports or suppressed by the UK’s capacity constraints. The UK economy would derive significant and lasting benefits in the form of inward investment and jobs from improved connectivity with new markets around the world.

However, it is crucial that any new airport capacity is both affordable and located where airlines and passengers will use it. Unaffordable or poorly located capacity will not be used and risks being a ‘white elephant’.

Commenting, Simon Buck, Chief Executive of BATA said:

 “To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear commitment to a new and robust national aviation policy that truly maintains the UK’s status as an international hub for aviation and also permits growth in non-hub airport capacity when and where demand requires.”

“There are significant risks associated with an increasing reliance on overseas hub airports to provide connectivity for the UK. Relying on overseas airports will lead to a degradation of UK connectivity while existing UK hub capacity slowly withers. As a country we would be handing over a strategic national asset and resource to foreign interests and would no longer be in charge of our own destiny. This would have serious implications for the future security of the UK’s global connectivity.”

ENDS

Air Traffic Control Strikes – Advice to Passengers

The strike by French Air Traffic Controllers is causing disruption for many passengers today (Tuesday 11th June) travelling between the UK and Europe. It also has the potential to cause delays on all flights through French airspace tomorrow, not just those to and from France. Passengers should check with their airlines, normally via the airline’s website, for further advice.

BATA Reaction to Publication of ITC Report on UK Aviation Strategy

Welcoming the ITC report, Simon Buck, Chief Executive of the British Air Transport Association, said:

The ITC Report makes a welcome contribution to the debate. The UK urgently needs to have a proper aviation policy. As yet it does not. It is essential for our future economic prosperity that the UK can compete effectively in both established and emerging markets.

This requires excellent aviation connectivity right across the country, ensuring the UK has both vibrant point to point airports and sufficient world class hub capacity. This means prioritising a favourable planning and regulatory regime and developing a bold aviation policy, providing for new airport capacity where it is required.

To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear commitment to such measures being put in place, as part of a new aviation policy.“

Aviation Report by Transport Select Committee Welcomed By BATA

BATA Reaction to Publication of Transport Select Committee Aviation Report

Welcoming the ‘Aviation Strategy’ report from the House of Commons Transport Select Committee, Simon Buck, Chief Executive of the British Air Transport Association, said:

“It is good to see some refreshingly pragmatic and straight forward cross-party thinking from the politicians on the Transport Select Committee. We may not agree with everything they have concluded, but it is clear they set the national interest first and have been able to reach consensus on the way forward.”

CAA Consultation on Airport Regulatory Regime & Landing Charges – BATA Reaction

BATA has reacted to the publication today by the CAA of a consultation on initial proposals for the economic regulation of Heathrow, Gatwick and Stansted airports from 2014 to 2015.

BATA Reaction to Publication of CAA Consultation on Regulatory Regime & Landing Charges

Commenting on the CAA’s consultation on proposals for changes to the regulatory regime and landing charges at the regulated London airports, Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“While we welcome the CAA’s recognition that Heathrow and Gatwick airports enjoy substantial market power, we are disappointed that further increases in charges will be permitted at both airports for the five years from April 2014.”

“Prices at Heathrow are triple the level they were ten years ago and Heathrow is already the most expensive hub airport in the world. Clearly this is a concern for passengers and all airlines operating there. Any further price rises at Heathrow are simply unacceptable. ”

“Gatwick’s charges to airlines have increased by around 50% over the past 5 years and further real term increases will be permitted over the regulated period. ”

“In the current economic climate, other businesses in both the private and public sectors – and especially airlines – are making savings and delivering on less money. Airports should not be exempt from that and we call upon the CAA to use its regulatory powers to ensure there is a real terms reduction in charges applied to each passenger.”

ENDS

CAA Consultation on Regulatory Regime and Airport Charges

BATA has issued a statement ahead of tomorrow’s expected launch of a consultation by the CAA on the regulatory regime and airport charges at Heathrow, Gatwick and Stansted.

BATA Comment on CAA Consultation on Regulatory Regime & Airport Charges

Ahead of tomorrow’s publication of the CAA’s consultation on proposals for changes to the regulatory regime and landing charges at the three regulated airports of Heathrow, Gatwick and Stansted, Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“No-one questions that Heathrow Airport continues to have substantial monopoly power and therefore requires tight economic regulation.  We are therefore pleased that the CAA has previously tentatively rejected the arguments that Gatwick and Stansted do not have such power and therefore expect continued regulation to protect the interests of users.  Deregulation, as favoured by both airports, will inevitably lead to poorer service and higher fares, not lower fares as Gatwick has misleadingly claimed.

“We call on the CAA to robustly protect the interests of the consumer by retaining the economic regulation of Gatwick, Stansted and Heathrow airports and using its regulatory powers to ensure there is a real term reduction in airport charges applied during the next regulatory period.

“BATA supports improving the passenger experience at Heathrow. However, we believe this can be done without a repeat of the incredibly steep price rises we have seen in airport charges in the last few years. The previous two review periods have seen the CAA disregard the interests of users and favour those of airport shareholders, with disastrous results.  This has to change.

“Prices at Heathrow are triple the level they were ten years ago and Heathrow is already the most expensive hub airport in the world. Clearly this is a concern for passengers travelling through Heathrow, and all airlines operating there. Any further price rises at Heathrow are simply unacceptable.

“In the current economic climate other businesses, in private and public sectors and especially airlines, are making savings and delivering on less money. Airports should not be exempt from that and we call upon the CAA to use its regulatory powers to ensure there is a real terms reduction in charges applied to each passenger.

“Gatwick’s charges to airlines have increased by around 50% over the past 5 years. The airport has proposed a further increase approaching 50% over the next regulatory period, while claiming this is a value for money proposition. We do not accept their arguments and reject their aim of deregulation as this is not in the interests of the travelling public.”

ENDS

Publication of DfT ‘Aviation Policy Framework’ – BATA Response

BATA has responded to the publication of  the ‘Aviation Policy Framework’ by the Department for Transport.

BATA Comment on Publication of Aviation Policy Framework

Commenting on the publication of the ‘Aviation Policy Framework’, Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“The ‘Aviation Policy Framework’ marks the Coalition Government’s recognition that it is vital that the UK needs to have a proper aviation policy. As yet it does not. As the Chancellor acknowledged in his Budget Speech on Wednesday, the UK’s economy needs to compete in both established and emerging markets. This requires excellent aviation connectivity right across the country, ensuring the UK has both vibrant point to point airports and sufficient world class hub capacity. This means prioritising a favourable planning and regulatory regime and developing a bold aviation policy, providing for new airport capacity where it is required. To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear commitment to such measures being put in place, as part of a new aviation policy.

“Having devolved the tricky decisions to Sir Howard Davies, his Airports Commission needs to take an holistic approach and consider wider issues, such as more competitive visa and tax regimes, efficient border operations and general airport connectivity as the quick wins on capacity have all been achieved. The Commission should not just be considering where and if to pour concrete.”

ENDS

Response to Budget Statement

BATA has reacted to the Chancellor’s Budget Statement, calling the missed opportunity to create growth and jobs, with the failure to scrap the tax on flying, a “shocking own goal”.

BATA Comment on Budget

Responding to today’s Budget Statement, Simon Buck, Chief Executive of the British Air Transport Association, said:

“The Chancellor rightly emphasised that our nation is in a global race competing alongside new centres of enterprise around the world but then contradicted himself on the need for competitive taxes to bring new businesses to our shores by confirming increases in the sky high tax on flying. Given that there is now incontrovertible evidence that scrapping the highest tax on flying in the world would benefit the UK economy by at least £16 billion over the next three years and create 60,000 new jobs, the missed opportunity to help kick start our economy is a shocking own goal. 1p off a pint of beer won’t do much to help those who might otherwise have been looking forward to new jobs.”