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.”

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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

“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.”

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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.”

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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.”

BATA Responds to Gatwick Business Plan

BATA has responded to the publication today of the Gatwick Airport business plan.

BATA Comment on Gatwick Business Plan

Responding to today’s publication of Gatwick’s business plan, Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“The presentation of Gatwick’s price commitments today is an exercise in smoke and mirrors. We do not believe it is in the passenger interest as it does not offer value for money.

“Gatwick’s charges to airlines have increased by almost 50% over the past 5 years. Today’s announcement proposes 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.

We call on the CAA robustly to 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”.

Heathrow Investment Plan – BATA Reaction

BATA has reacted to the publication today by Heathrow Airport a £3bn investment plan.

BATA Comment on Heathrow Investment Plan

Responding to today’s publication of Heathrow’s £3 billion investment plan, Simon Buck, Chief Executive of the British Air Transport Association (BATA), said:

“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. 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 all passengers travelling through Heathrow, and all airlines operating there.

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.”

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Autumn Statement 2012 – BATA Response

BATA has issued a response to today’s Autumn Statement by the Chancellor.

BATA Comment on Autumn Statement

Responding to today’s Autumn Statement, Simon Buck, Chief Executive of the British Air Transport Association , (BATA) said:

“While we welcome the Chancellor’s announcement of over a billion pounds of additional investment in UK road transport infrastructure, we regret that the Coalition Government continues to stand in the way of private investment in new runway capacity where it is most needed. As an island, trading nation, International air links are vital for the UK economy if we are to compete effectively for new overseas business and boost tourism. It is shameful that successive Governments have shied away for almost 40 years from taking difficult decisions on permitting privately funded new runway provision in the south east of England where capacity constraints are greatest, resulting in lost business opportunities and jobs to our near Continental rivals who appear to have no such qualms over building new runways. It is essential for the UK’s future competitiveness that new runway capacity is permitted, to provide for existing and future needs. I hope that will be the conclusion of the Davies Commission when it reports in the summer of 2015 and that any such recommendations are implemented by the next Government, of whichever political party, without further delay.”

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BATA Reaction to EC ‘Stopping the Clock’ on Aviation in Emissions Trading Scheme

In response to the announcement today by the European Commission about the suspension of aspects of airline involvement in the EU Emissions Trading Scheme, BATA has issued this statement.

BATA Reaction to EC ‘Stopping the Clock’ on Aviation in Emissions Trading Scheme

The British Air Transport Association (BATA) has responded to the announcement today by the European Commission about the suspension of aspects of airline involvement in the EU Emissions Trading Scheme.

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

“Details of precisely what has been agreed between the Commission and Member States are as yet sketchy ahead of the technical briefing promised for tomorrow but UK airlines have always argued for a global approach to tackling the impact of aircraft emissions on climate change. We would therefore welcome any progress on this made at international level through ICAO.

However, any part suspension of the EU ETS must not result in different rules applying to different airlines dependent on the routes they operate. There is a potential for competitive distortion between airlines with this action which could be damaging.

UK airlines have taken great strides towards reducing their emissions over the past few decades and continue to do so through initiatives such as Sustainable Aviation.”

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BATA Submits Response to Government Consultation on Aviation Policy

BATA has today issued a press release to accompany the publication of its response to the Government’s consultation on an ‘Aviation Policy Framework’.

BATA Response to Government Aviation Policy Consultation

The British Air Transport Association has today published its response to the Government’s consultation on an Aviation Policy Framework.

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

“It is vital for the UK’s economic prosperity that we have an aviation policy that addresses the needs of all the UK, without continuing delay. BATA calls on the Government to ensure that the composition and terms of reference of the Davies Commission attract cross party support to prevent the continuation of the see-saw of aviation policy we have experienced over recent decades.

“UK business is increasingly strident in its calls for the UK to develop its international connectivity in order to attract inward investment thus boosting economic prosperity and creating new jobs. If we are to capitalise on our emergence from recession, the Government must show willingness to unlock and encourage private investment in infrastructure at airports to allow capacity expansion where it is most urgently needed.

“As the Government recognises, 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 that meets the needs of the entire aviation sector. This means prioritising a favourable planning and regulatory regime and developing a bold aviation policy. To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear timetable for action and this needs cross-party support.”

BATA Comment on Policy Exchange Aviation Report

Reaction from BATA to the publication of the aviation report by the think tank, Policy Exchange.

BATA Comment on Policy Exchange Aviation Report

Commenting on today’s report ‘Bigger and Quieter: the right answer for aviation‘ published by the Policy Exchange think tank, Simon Buck, Chief Executive of the British Air Transport Association said:

“It is vital for the UK’s economic prosperity that we have an aviation policy that addresses the needs of all the UK, without continuing delay.

“This interesting contribution from Policy Exchange is but the latest in a series of contributions that recognise just how vital it is for the UK to develop its international connectivity in order to attract inward investment thus boosting economic prosperity and jobs.

“As the Coalition Government recognises, 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, where new airport capacity is required. To ensure there is no further erosion of the UK’s competitive position, the Government must set a clear timetable for these measures to be put in place and to prevent the continuation of the see-saw of aviation policy we have experienced over recent decades, this needs cross-party support.”

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